Business Resources / Promissory Note

Nogotiable

PROMISSORY NOTE

[Name of maker] promises to pay to the order of [name of payee] at [address], or such other place as the holder of this note may designate in writing, the principal sum of $_____, together with simple interest on the unpaid balance thereof at the rate of _____% per annum from date until paid, payable in equal monthly installments of $_____ each, including interest at the rate provided above, with the first installment to be due on _________, 20__, and a like installment to be due on the _________ day of each calendar month thereafter until the unpaid balance and all accrued interest has been paid in full.

This note may at any time, or from time to time, be prepaid in whole or part, without penalty. However, no prepayments shall be credited as a future payment or excuse maker from paying the installments thereafter coming due. All payments, including prepayments, shall be applied first to accrued interest to the date of payment and then to principal.

In case of default in the payment of any installment when due, all principal and interest shall become immediately due and collectible at the option of the holder of this note. Failure to exercise this option in the event of a default shall not constitute a waiver of the right to exercise it in the event of any subsequent default.

If this note is placed in the hands of an attorney for collection, the maker promises to pay the holder's reasonable collection costs, including reasonable attorney's fees, even though no legal proceeding is filed on this note. However, if a legal proceeding is filed for the purpose of interpreting or enforcing this note, the holder shall be entitled to recover a reasonable attorney's fee in such proceeding, or any appeal thereof, to be set by the court without the necessity of hearing testimony or receiving evidence, in addition to the costs and disbursements allowed by law.

This note is secured by a Mortgage and Security Agreement of even date.

The maker hereby waives presentment for payment, notice of dishonor, protest, notice of protest, and diligence in collection, and consents that the time of payment of any amount due under this note may be extended by the holder without otherwise modifying, altering, releasing, affecting, or limiting the liability of the maker.

[Signature of Maker]

The undersigned hereby unconditionally guarantees payment of the within note, waiving presentment or demand for its payment, protest of its nonpayment and notice of its dishonor.