Monthly Business Note

MONTHLY BUSINESS NOTE

Recitals

WHEREAS, Lender Name: is engaged in the business of extending credit for business purposes; and

WHEREAS, Borrower Name: (the "Borrower") requests a short-term business loan evidenced by this Monthly Business Note and agrees to repay under the terms set forth herein; and

WHEREAS, Lender and Borrower desire to set forth their respective rights and obligations with respect to the principal, interest, repayment schedule and other material terms in this Note.

Promise to Pay

For value received, Borrower promises to pay to the order of Lender the principal sum of U.S. Dollars (the "Principal"), together with interest on the unpaid Principal at an annual rate of % per annum, computed on a 365-day year basis.

Scope of Work

Payment Terms

Payments shall be made monthly in equal installments of commencing on and thereafter on the day of each calendar month until the Principal and all accrued interest are paid in full. Payments shall be applied first to accrued interest and then to Principal.

Late payments shall incur a late fee of or % of the overdue payment, whichever is greater, if not received within days after the due date. Returned checks will incur a returned check fee of .

Interest shall accrue monthly and may be compounded monthly: Compound interest monthly?

Prepayment of Principal may be made without penalty unless a prepayment penalty is specified below: Prepayment penalty (if any)

Term and Termination

Term Start Date: . Maturity Date: .

Either party may terminate this Note upon written notice to the other party given not less than days prior to the effective termination date; provided, however, that termination shall not relieve Borrower of the obligation to pay amounts then due or to perform any obligations accrued prior to termination. Upon default, Lender may accelerate the entire unpaid balance as set forth below.

Default and Remedies

Borrower shall be in default on the occurrence of any of the following: (a) failure to make any payment when due and such failure continues for more than days; (b) insolvency, receivership, or bankruptcy filing by or against Borrower; or (c) material breach of any covenants contained in this Note.

Upon default, at Lender's option, the entire unpaid Principal, accrued interest, and all other charges shall become immediately due and payable. Borrower shall be liable for all costs of collection, including reasonable attorney's fees and court costs.

Confidentiality

Each party shall keep confidential and shall not disclose to any third party any non-public information received from the other party in connection with this Note, except as required by law or to enforce rights under this Note. Confidential information shall not include information that is or becomes publicly available other than by breach of this Section.

Representations and Warranties

Each party represents and warrants that it has full authority to enter into this Note, that the execution and delivery of this Note and the performance of its obligations do not violate any other agreement to which it is a party, and that this Note constitutes a valid and binding obligation enforceable in accordance with its terms.

Governing Law

This Note shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles.

Assignments and Successors

Lender may assign this Note or any rights hereunder without Borrower's consent. Borrower may not assign its obligations without Lender's prior written consent. This Note shall bind and inure to the benefit of the parties and their respective successors and permitted assigns.

Waiver; Severability; Entire Agreement

No waiver by either party of any breach of any provision of this Note shall be deemed a waiver of any preceding or subsequent breach. If any provision of this Note is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. This Note and any schedules or exhibits attached hereto constitute the entire agreement between the parties relating to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, between the parties.

Notices

All notices required or permitted under this Note shall be in writing and delivered to the addresses above or to such other address as either party may designate by written notice to the other in accordance with this Section. Notices shall be deemed given upon personal delivery, three days after deposit with the postal service, or one day after deposit with an overnight courier service.

Execution

This Note may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Electronic or facsimile signatures shall have the same force and effect as original signatures.

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