Case 3:14-cv-01065-G Document 1-3 Filed 03/25/14 Page 1 of 3 PageID 62 v PROMISSORY NOTE J!'oR AsSISTANCE AGll.EEMENT PHYSICIAN PRACTICE START-UP BAYLOR REGIONAL MEDICAL CEN'l:'ER AT PLANO; CBIUSTOPI!ERDUNTSCii:,M.D.; AND MlN!MALLY INVASlVE SPINE INSTITUTE, p .A. SIX HUNDRED THOUSAND and no/100 DOLLARS ($600,GO.OO) ( ii.I L'201 l Jw;et 20H Plano, Texasf)t CJ FOR VALUE RE.CEIVED, the undersigned Cbril>topher Duntsch, M.D. and Minimally In:vasive Spino Institute, P.A. (each a "Maker" and collectively the ''Makers"), each, jointly and severally, hereby unconditionally p!'()mlse to pay to the order of Baylor Regional Medical Center at Plano ("Payee"), at 4700 Alliance Blvd., Plano, Texas 75093, or at such other address given to the Makers by the Payee, the principal sum of Six Hundred Thousand and no/100 DOLLARS ($600,1)00.00), or so much thereof as may be advanced prior to maturity, in lawful money of the United States of ·America, together with interest compounded monthly (calculated on the basis of a 365 or 366-day year, as appropriate), on the unpaid principal balance from day-to-day remaining, computed jfom the date of advance until maturity at the rate per annum equal to the Prime Rate plus two percent (2%) as set forth ill that certain Physician Practice Start-up Assistance Agreement of even date herewith between the Makers, on the one hand, and the Fay\'<>, on the other e'Agreement"), or, if less, the maximum lawful rare. Terms uot defined in this Note shall have the meanings specified in the Agreement. The principal of, and interest on, this Note shail be due and payable as follows: (a) computed as aforesaid, shall accrue monthly and be payable on demand of the Payee, commencing on. the first anniversary of this Note and thereaft!l'l' on the same day of each suooeeding calendar month until all principal and interest payable under this Not.e is paid in full or forgiven Jn accordance with the terms and conditions of the Agreemenl:; and (b) Principal shall be due and payable on demand of the Payee commencing on the first anniversary of this Note until all principal and interest payable under this Note is paid in full or forgiven in accordance with the terms and conditiC>ns of the Agreement · This Note has been executed and delivered pursuant to, and is subject to the tei'ms and conditiottS set forth in, the Agreement, and is the "Note" referred to in the Agreement. The Payee of this Note shall be entitled to the bellefits provided in. the Agl'eement, including those provision& relating to forgiveness of amounts dae m1der this Note. Reference is made to the Agreement for a statement of: (i) the obligation of the Payee to adV1'tnce funds thereunder; (ii) the Maket"S' rights to oure certain breaches of the Agreement, if any; and (iii) required prnpaymenrn. · This Note is secured by, among other things, that certain Security Agreement of even dare herewith executed by the Makers in fav<>r ofthel'ayee ("Security Agreemenf') pursuant to the Agreement If the Makers fail or refuse tu pay any part of the principal of or interest under this Note as this Note becomes due, or upoll the occurrence of any event of default under this Note or under any other agreement or ins!rument securing or assuring the payment of this Note or executed ln connection with this Note, including without !intl1lltion the Agreement and the Security Agreement, then in any such event the Payee or any he>ldex of this Nore may, at its option, do any or all of the following: (i) declare the entire unpaid balance of principal of and accrued interest to be immediately due and payable without 126917Vl 229-1000 C Case 3:14-cv-01065-G Document 1-3 Filed 03/25/14 Page 2 of 3 PageID 63 ... pr