Thousand Dollars ($350,000), with annual interest of 9.5% on any unpaid balance. The payments will be due over a five year term, and an [sic] equal, consecutive installments of Seven Thousand Three Hundred Fifty Dollars and Sixty Five Cents ($7,350.65) each, with a first payment due on January 04, 2001, and the same amount due on the same day of each month thereafter. . . . This note shall be due and payable on demand of any holder thereof should the undersigned default on any payment beyond thirty (30) days of its due date. . . . 4. Forced Purchase Agreement. Should the buyer Huizinga, default on any payment or does note [sic] follow the terms of this note described in paragraph 3 above, the undersigned, Huizinga, will forfeit all of his shares of ownership in Blinds, Inc. to [Mark]. . . . ***
Id. at 6 (sequentially, pp.10-13). Also on January 4, Huizinga and Mark executed an
“Installment Promissory Note[,]” which stated in relevant part:
For value received on January 4, 2001, [Huizinga] . . . promise[s] to pay to [Mark] . . . the principal sum of Three Hundred Fifty Thousand Dollars ($350,000) and to pay interest on the unpaid balance . . . under the following terms:
1. Interest Rate. As long as there is no default under this Note, the interest rate shall be nine and one-half percent (9 ½ %) per annum (“Note Rate”) through the date of the final maturity of this Note on January 4, 2006, and twelve and one-half percent (12 ½ %) per annum from maturity until the Note is paid in full.
2. Default Rate. In the event of a default under this Note, [Mark] may, in his sole discretion, determine that all amounts owing to [him] shall bear interest at a rate three percent (3%) above the Note Rate.
3. Payments. Huizinga shall pay sixty (60) monthly installments in the amount of Seven Thousand Three Hundred Fifty Dollars and Sixty- Five Cents ($7,350.65) beginning on February 4, 2001, and continuing monthly on the 4th day of each month until maturity of this Note on January 4, 2006. Until maturity, all payments made by Huizinga shall be applied first to late fees and expenses, then to accrued interest, and then to unpaid principal.
See supra note 4 and accompanying text.