modeman on "How to loop posts even if category does nt have sub-categories"

Hello, i have this code: http://pastebin.com/tF2c63Mb

Now posts show only on sub-categories. I need to show posts even when category doesn't have sub-categories.

I need like this:
Category - > Show posts

Now its like this:
Category - > Posts don't show
Category -> Sub-category - > Posts

I purpose that the code needs to check if category does not have subcategory ant then loop posts.

Maybe anybody knows hot so solve?