Balloon Note

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

PROMISSORY NOTE (BALLOON PAYMENT)

FOR VALUE RECEIVED, {{borrower_name}} (hereinafter “Borrower”), located at {{borrower_address}}, promises to pay to the order of {{lender_name}} (hereinafter “Lender”), located at {{lender_address}}, the principal sum of {{loan_amount}} ({{loan_amount_words}}) together with interest thereon as hereinafter provided.

TERMS OF REPAYMENT

1. **Maturity Date:** This Note shall be due and payable in full, including any accrued interest and unpaid principal, on {{maturity_date}}.

2. **Interest Rate:** The principal sum shall bear interest at a fixed rate of {{interest_rate}}% per annum, calculated on a {{interest_calculation_basis}} basis.

3. **Payments:** Borrower shall make {{number_of_periodic_payments}} consecutive {{payment_frequency}} payments of interest only, in the amount of {{periodic_payment_amount}} each, commencing on {{first_payment_date}} and continuing on the same day of each subsequent {{payment_frequency}} thereafter until the Maturity Date. All payments shall be made to Lender at the address specified above or such other address as Lender may designate in writing.

4. **Balloon Payment:** On the Maturity Date, Borrower shall pay to Lender the entire outstanding principal balance of {{loan_amount}} plus any accrued and unpaid interest, as a single ‘balloon’ payment.

PREPAYMENT

Borrower shall have the right to prepay this Note in whole or in part at any time without penalty or premium. Any partial prepayment shall be applied first to accrued unpaid interest and then to the principal balance.

DEFAULT

The occurrence of any of the following shall constitute a default hereunder:

a) Failure of Borrower to pay any amount due under this Note on or before the due date.

b) Breach by Borrower of any other covenant or agreement contained in this Note.

c) Insolvency or bankruptcy of the Borrower.

Upon default, the entire unpaid principal sum and accrued interest shall, at the option of the Lender, become immediately due and payable without presentment, demand, protest, or notice of any kind.

GOVERNING LAW

This Note shall be governed by and construed in accordance with the laws of {{country_name}}, without regard to its conflict of laws principles.

MISCELLANEOUS

This Note constitutes the entire agreement between the Borrower and the Lender with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral. No modification or waiver of any provision of this Note shall be effective unless in writing and signed by both parties. Borrower waives presentment for payment, demand, protest, and notice of protest and non-payment.

SIGNATURES

IN WITNESS WHEREOF, the Borrower has executed this Promissory Note on this {{day}} day of {{month}}, {{year}}.

_____________________________

Borrower Signature

{{borrower_printed_name}}

_____________________________

Lender Signature

{{lender_printed_name}}