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<br />remain subordinate to the lien as renewed, extended, reamortized,
<br />or otherwise adjusted from time to time, which secures another
<br />note in the original principal amount of Five Hundred Forty
<br />Thousand Dollars ($54Ø,ØØØ.ØØ), dated December 2Ø, 1988 and
<br />executed by Henry J. ales, President, EPS, and as Guarantor, and
<br />by Marian T. Oles as Guarantor payable to the order of The First
<br />National Bank of San Marcos and fully described in a Deed of Trust
<br />recorded in Volume 765, Page 2Ø8 of the Real Property Records of
<br />Hays County, Texas, and shall remain subordinate to a second lien
<br />as may be filed renewed, extended, reamortized, or otherwise
<br />adjusted from time to time to secure a note in an original
<br />principal amount of Three Hundred Ninety Seven Thousand Dollars
<br />($397,ØØØ.ØØ), payable to the order of Texas Certified Development
<br />Company, Inc.
<br />If there is default in payment of any part of principal or
<br />interest of that $54Ø,ØØØ.øø note or that $397,ØØØ.Øø note or in
<br />observance of any covenants of any instruments securing it, or in
<br />the observance of any covenants of this AGREEMENT, the debt
<br />evidenced by this $14Ø,ØØØ.øø note shall immediately become
<br />payable at the option of City.
<br />If EPS defaults in the payment of this note or in the performance
<br />of any obligation in any instrument securing collateral to it, or
<br />in the observance of any covenants of this AGREEMENT, EPS shall,
<br />at City's option, be subject to the terms of Part III, Subsection
<br />B of this AGREEMENT.
<br />Interest on the debt evidenced by this note shall not exceed the
<br />maximum amount of nonusurious interest that may be contracted for,
<br />taken, reserved, charged, or received under law; any interest in
<br />excess of that maximum amount shall be credited on the principal
<br />of the debt or, if that has been paid, refunded. On any
<br />acceleration or required or permitted prepayment, any such excess
<br />shall be cancelled automatically as of the acceleration or
<br />prepayment or, if already paid" credited on the principal of the
<br />debt or if the principal of the debt has been paid, refunded.
<br />This provision overrides other provisions in this and all other
<br />instruments concerning the debt.
<br />EPS is responsible for all obligations presented by the note.
<br /> Part II. Guaranty
<br />For value received, Henry ales absolutely and unconditionally
<br />guarantee payment of this note. He waives all demand and all
<br />notices, including notice of intention to accelerate the maturity,
<br />notice of acceleration of maturity, notice of nonpayment,
<br />presentment for payment, protest, notice of protest, suit, and
<br />diligence. He also waives any notice of and defense based on the
<br />extension of time of payment or change in methods of payment and
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