1 AGREEMENT TO PAY.
1.1 For value received, CREATIVE TRANSIT LLC, an Illinois limited liability company (the ‚ÄúBorrower‚Äù) promises to pay to the order of John Mclean(together with its successors and assigns, the ‚ÄúLender‚Äù), the principal sum of $35,000 (the ‚ÄúLoan‚Äù), on or before January 31, 2017 (the ‚ÄúMaturity Date‚Äù), at the place and in the manner hereinafter provided, together with interest thereon at the rate or rates described below, and any and all other amounts which may be due and payable hereunder or under any of the Loan Documents (as hereinafter defined) from time to time.
2 INTEREST RATE.
2.1 Interest Prior to Default. The Loan shall bear no monthly interest other than the Additional Interest contained in paragraph 2.4 of this Promissory Note unless there remains any principal and/or interest payable after the Maturity Date.
2.2 Interest After Default. From and after the Maturity Date or upon the occurrence and during the continuance of an Event of Default (as hereinafter defined), interest shall accrue on the unpaid principal balance during any such period at an annual rate (the ‚ÄúDefault Rate‚Äù) equal to 4%; provided, however, in no event shall the Default Rate exceed the maximum rate permitted by law. The interest accruing under this Section 2.2 shall be immediately due and payable by the Borrower to the holder of this Note upon demand and shall be additional indebtedness evidenced by this Note.
2.3 Interest Calculation. Interest on this Note after the Maturity Date shall be calculated on the basis of a three hundred sixty (360) day year and the actual number of days elapsed in any portion of a month in which interest is due. The Borrower acknowledges and agrees that the interest calculation method set forth in this Section 2.3 results in a higher effective interest rate than the numeric interest rate stated in Section 2.2. If any payment to be made by the Borrower hereunder shall become due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in computing any interest in respect of such payment.
2.4 Additional Interest. In addition to the interest provided above, the Borrower agrees that on or before the Maturity Date, it shall pay the Lender an additional interest payment of $15,000.00(the ‚ÄúAdditional Interest‚Äù).