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Interest Payments __ Borrower will pay interest on __________________ of each year beginning in ____________________. __ Borrower will pay interest on the ___ day of each month beginning _________________. __ Borrower will pay interest as follows: ____________________________ 4. Principal Payment. Borrower will pay the principal in full on or before __________________________, together with any accrued interest. 5. Prepayment. Borrower may prepay all or any part of the principal without penalty. Loan Acceleration. If Borrower is more than __ days late in making any payment, Lender may declare that the entire balance of unpaid principal is due immediately, together with the interest that has accrued. Security. __ This is an unsecured note. __ Borrower agrees that until the principal and interest owed under this promissory note are paid in full, this note will be secured by a security agreement and Uniform Commercial Code Financing statement giving Lender a security interest in the equipment, fixtures, inventory and accounts receivable of the business known as ___________________________. __ Borrower agrees that until the principal and interest owed under this promissory note are paid in full, this note will be secured by the _________ [mortgage /deed of trust] covering the real estate commonly known as _________________________ and more fully described as follows: ______________________________________. 8. Collection Costs. If Lender prevails in a lawsuit to collect on this note, Borrower will pay Lender's costs and lawyer's fees in an amount the court finds to be reasonable. 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