Promissory Note - Brookhaven Homes LP and Bismark Mortgage Co. LLC
Seattle, Washington. Friday, September 28,2001
Loan #211148
PROMISSORY NOTE
For value received, the undersigned promise to pay to the order of, Beneficiary,
Bismark Mortgage Company, LLC
at the office of Bismark Mortgage Company, LLC at 2835 82nd Ave. SE, Mercer
Island, WA 98040-3055 or at such other place as payee or its successors or
assigns may from time to time direct, the sum of ($600,000.00)
Six Hundred Thousand and No/100 Dollars
together with any charges or fees due under the terms of this note, financial
statement(s) and/or deed(s) of trust, which provide security for this note, with
interest thereon at the rate of 9.500 percent per annum from October 1, 2001
until paid.
The entire amount due under the terms of this note, if not sooner paid, shall be
due and payable, in lawful money of the United States, not later than October 1,
2002. If this amount shall remain unpaid after the date it becomes due then
additional default interest in any amount equal to 3% of the entire amount due
shall be added to the principal amount due.
Until such time as the total amount due herein has been paid Borrower shall pay
monthly installments of ($4,750.00)
Four Thousand Seven Hundred Fifty and No/100 Dollars
on or before the first (1st) day of each and every month beginning December 1,
2001.
In the event any monthly installment due shall not have been fully paid and
received by holder within 10 days of its due date, late charge(s) of 10% of the
amount of the installment(s) due or $40.00, whichever is larger, will e assessed
and I agree to pay the same in addition to the installment(s) due as liquidated
damages for additional expense of handling such delinquent installments.
It is understood that acceptance by Beneficiary, its successors or assigns, of a
late or delinquent installment, or installments, does not and will not be
considered by either party involved as a waiver of its right to demand payment
in full should this note become delinquent at some later date. Beneficiary or
any subsequent holder of this instrument may, at its option, sell, transfer
and/or assign this promissory note. I agree that payee, at its sole option, may
(a) return my late installment(s) and demand that I return same with late charge
included, or may (b) accept my late installment(s) and add back the late
charge(s) and all unpaid interest then due on this loan to my principal balance,
or may (c) keep a separate accounting of late charges as they occur and if payee
shall choose either (b) or (c) herein I agree to pay same upon demand but in no
event later than the due date of this note.
I understand this loan is secured in part by a Deed(s) of Trust on real
property, and that my responsibility for and/or control of such real property is
a material inducement to make the loan and upon the terms agreed. If title to
said property shall pass from me by deed or otherwise, or said property shall be
sold on contract or wrap or shall have been leased or rented with an option to
purchase agreement, then such change in title and/or control shall be deemed to
increase the risk of lender, and therefore the entire unpaid balance(s) shall
upon such change in title and/or control, without notice, become immediately due
and payable.
Prepayment Penalty: I agree to pay at least n/a months of interest on the
original principal balance whether or not I should pre-pay the principal in part
or in full at an earlier date.
If default be made in the payment of any installment when due, then, at the
option of the holder of this note, without prior notice, the entire debt thereby
represented shall immediately become due and any waiver of such right shall not
prevent the holder from enforcing the right upon any recurrence of the default.
After maturity, or after failure to pay any installment as above specified, in
addition to the late charges noted above, this note shall bear interest at
twelve percent (12%) per annum above the face interest rate (or the prevailing
interest rate if the rate has been increased per holder's option herein and/or
changed by other agreement between holder and debtors herein) and said higher
interest rate shall continue until the default has been cured by payment of all
amounts in default plus all interest accrued by application of the terms of this
paragraph.
If this note is placed in the hands of an attorney for collection, or if suit or
action is commenced to collect this note, or any portion thereof, or if the
holder of this note is required to appear in any Bankruptcy action in order to
collect hereunder or make claim therein, or for any other action connected with
this note, I promise and agree to pay, in addition to all other sums described
herein, all the costs and attorney's fee(s) incurred by the holder of this note
in said suit(s) or action(s).
In addition to all other terms found herein, I promise to pay the following fees
for each, if any, of the following occurrences and I further agree that said
fees shall be added to my outstanding principal balance: a. $40.00 for each NSF
or returned check and b. $40.00 for each written payoff demand or each written
verification of mortgage request.
<PAGE>
Every person or entity at any time liable for the payment of the debt hereby
evidenced, waives presentment for payment, demand and notice of non-payment of
this note, and consents that the holder may at its option, extend the time of
payment or otherwise modify the terms of payment of any part, or the whole of
the debt at any time at the request of any other person now or hereafter liable.
Special Terms of this Note:
Interest rate increase:
Beginning 4/1/2002 the non-default face interest rate (9.50%) described above
shall permanently increase to 13.99% and the interest-only payment shall
permanently increase, accordingly. All other terms of this note and related loan
documents and/or security instruments remain unchanged.
------------------------------ ----------------------------------------
Date Date
Brookhaven Homes LP, a Nevada Limited
Partnership
By: Entity Planners International, Inc.
a Nevada Corporation By:
/s/ Cynthia C. Britten 10/3/01
----------------------------------------
by: Cynthia C. Britten, Date
Authorized Agent
its: Chief Financial Officer