Security Agreement and Promissory Note

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

SECURITY AGREEMENT AND PROMISSORY NOTE

This SECURITY AGREEMENT AND PROMISSORY NOTE (this "Agreement") is made and entered into this {{date}} by and between:

Lender: {{lender_company_name}}, a company duly incorporated and existing under the laws of {{lender_jurisdiction}}, with its principal place of business at {{lender_address}} (hereinafter referred to as the "Lender").

Borrower: {{borrower_company_name}}, a company duly incorporated and existing under the laws of {{borrower_jurisdiction}}, with its principal place of business at {{borrower_address}} (hereinafter referred to as the "Borrower").

Collectively, the Lender and the Borrower may be referred to as the "Parties" and individually as a "Party".

PROMISSORY NOTE

FOR VALUE RECEIVED, the undersigned, {{borrower_company_name}} (the "Borrower"), promises to pay to the order of {{lender_company_name}} (the "Lender"), the principal sum of {{loan_amount}} ({{loan_amount_words}}), together with interest thereon at the rate of {{interest_rate}}% per annum (the “Interest Rate”), computed on the basis of a 365-day year and the actual number of days elapsed.

The principal sum and accrued interest shall be repayable in {{number_of_installments}} ({{number_of_installments_words}}) equal monthly installments of {{installment_amount}} ({{installment_amount_words}}), commencing on {{first_payment_date}} and continuing on the {{day_of_month}} day of each succeeding month thereafter until the entire principal and interest are paid in full. The final payment shall be due on {{final_payment_date}}.

All payments shall be made in {{currency}} in lawful money of {{country}}.

EVENTS OF DEFAULT

The occurrence of any of the following shall constitute an Event of Default under this Agreement:

a) Failure to pay any principal or interest payment when due under this Promissory Note.

b) Breach of any covenant or obligation contained in this Agreement or any other agreement between the Parties.

c) Any representation or warranty made by the Borrower in this Agreement proving to be false or misleading in any material respect.

d) Insolvency or bankruptcy of the Borrower, or the institution of any insolvency or bankruptcy proceedings by or against the Borrower.

SECURITY AGREEMENT

To secure the prompt and full payment and performance of all obligations of the Borrower under this Promissory Note and this Agreement, the Borrower hereby grants to the Lender a security interest in all of the Borrower's right, title, and interest in the following collateral (the "Collateral"): {{collateral_description}}.

The Borrower represents and warrants that it is the lawful owner of the Collateral, free and clear of all liens, encumbrances, and security interests, except for the security interest granted hereby.

The Borrower agrees to execute any and all further documents and instruments, and to take any further action, requested by the Lender to perfect and continue the security interest granted herein.

REMEDIES UPON DEFAULT

Upon the occurrence of an Event of Default, the Lender may, at its option, declare the entire unpaid principal sum and all accrued interest immediately due and payable without presentment, demand, protest, or notice of any kind. The Lender may also exercise all rights and remedies available under the Uniform Commercial Code (or similar applicable law in {{country}}) as in effect in {{country}}, including, without limitation, the right to take possession of and sell the Collateral.

The Borrower shall be liable for all costs and expenses incurred by the Lender in enforcing its rights and remedies hereunder, including, without limitation, reasonable attorneys' fees.

GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in accordance with the rules of {{arbitration_institution}} for the time being in force, which rules are deemed to be incorporated by reference into this clause. The seat of the arbitration shall be {{arbitration_city}}, {{country}}. The language of the arbitration shall be English.

GENERAL PROVISIONS

a) Entire Agreement: This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

b) Amendments: No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties.

c) Assignment: The Borrower may not assign its rights or obligations under this Agreement without the prior written consent of the Lender.

d) Severability: If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be severed from this Agreement, and the remaining provisions shall remain in full force and effect.

e) Notices: All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered mail, or by email to the addresses set forth above or to such other address as a Party may designate by notice to the other Party.

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Security Agreement and Promissory Note as of the date first written above.

LENDER:

_____________________________

By: {{lender_authorized_signatory}}

Title: {{lender_signatory_title}}

BORROWER:

_____________________________

By: {{borrower_authorized_signatory}}

Title: {{borrower_signatory_title}}

WITNESSES:

1. _____________________________

Name: {{witness_1_name}}

Address: {{witness_1_address}}

2. _____________________________

Name: {{witness_2_name}}

Address: {{witness_2_address}}