Promissory Note (Flexible)

$ ______________

_______________, 20 ___.

Promise to Pay. The undersigned borrower (the "Borrower") (jointly and severally if more than one) unconditionally promise(s) to pay to the order of _______ (the "Bank") at any banking office of the Bank, the sum of ______ Dollars together with interest on the unpaid principal balance thereof at an annual rate of (check one box only):

[ ] __________%

[ ] __________% plus the Prime Rate, which interest rate will change automatically from time to time, effective as of the effective date of each change in the Prime Rate. As used herein, "Prime Rate" means, as of any date, the announced or published prime rate of Interest shall be computed on the basis of a 360 day year and charged for actual days elapsed. Any principal or interest not paid when due, whether at stated maturity, by acceleration or otherwise (or if this Note is payable on demand, upon demand for payment by the Bank), shall bear interest, payable on demand, at an annual rate of two percent (2%) in excess of the annual rate stated above until paid.

The Borrower promises to pay the principal and interest owing under this Note (check one box only):

in __________ consecutive __________ Monthly __________ Quarterly __________ Semi________ principal installments of $ _________ each, with a final installment of $ ____________ commencing on _______, 20______ and thereafter on the like day of each above designated period, together with in terest on the unpaid principal balance thereof at the annual rate indicated above, payable with each installment of principal as stated herein.

in __________ consecutive __________ Monthly __________ Quarterly __________ Semi________ installments of principal and interest of $__________ each, with a final installment of principal and interest of $____________ commencing on ___________, 20_______ and thereafter on the like day of each above designated period.

on demand. Until demand is made, interest shall be payable _____________commencing ___________________________ in one single installment due ______ after the date hereof.

Security. As used herein, "Obligations" means all indebtedness hereunder and any renewals, extensions and modifications hereof, together with any now or hereafter existing indebtedness of the Borrower to the Bank whatsoever. "Obligor" means the Borrower and all endorsers, guarantors and sureties of any Obligation. As security for the full and timely repayment of the Obligations (in addition to any collateral under any note, Business Loan Security Agreement, assignment or other document now existing or hereafter executed by the Borrower and/or any other person with respect to any of the Obligations), the Borrower hereby grants to the Bank a security interest in all monies, bank deposits or credits held by the Bank for or owed by the Bank to the Borrower, and, in the event of de fault hereunder, such monies, deposits or credits may be set off and applied to the payment of any obligations.

Default. The Borrower shall be in default hereunder on the occurrence of any of the following: (a) Nonpayment when due of any portion of any Obligation; (b) Any warranty, representation or statement made or furnished to the Bank by or on behalf of the Borrower proving to have been incorrect when made or furnished; (c) The existence of any event of default under the terms of any note, security agree ment, guaranty or other document now existing or hereafter executed by the Borrower (singly or jointly with another person or persons) and (or in favor of) the Bank; (d) The existence of any event of default under the terms of any instrument or writing evidencing a debt of the Borrower to someone other than the Bank; (e) Uninsured loss, theft, substantial damage, destruction, or transfer or encum brance without fair value in return of any of the Borrower's assets; (f) Any Obligor (i) admitting in writing its insolvency or its inability to pay its debts as they mature, (ii) making a general assignment for the benefit of creditors, (iii) commencing a case under or otherwise seeking to take advantage of any bankruptcy, reorgani zation, insolvency, readjustment of debt, dissolution or liquidation law, statute or proceeding, (iv) by any act indicating its consent to, approval or acquiescence in any such proceeding or the appointment of any receiver of or trustee for it or a sub stantial part of its property, or suffering any such receivership, trusteeship or proceeding to continue undismissed for a period of thirty (30) days, or (v) becoming a debtor in any case under any chapter of the United States Bankruptcy Code; (g) Any Obligor defaulting under the terms of the guarantee, security or other agreement executed, or which may hereafter be executed, in connection with the Obligation(s); (h) Judgment against, or attachment of property of any Obligor; (i) The Bank deeming itself insecure; (j) Dissolution, merger, consolidation, liquida tion or reorganization of any Obligor; or (k) Death of any Obligor. Upon the occurrence of them pursuant to all of the terms set forth above for any deficiencies hereon after the collection, foreclosure, realization or sale of any collateral secur ing the Obligations, or any part thereof, together with interest, court costs and attorney's fees as provided above.

This Note will be governed by the internal laws of the State of Maryland and, to the extent Federal laws preempt the laws of Maryland, by the laws of the United States. If any part of this Note is declared invalid or unenforceable, such invalidity or unenforceability shall not affect the remainder of this Note, which shall continue in full force and effect. Any provision that is invalid or unenforceable in any appli cation shall remain in full force and effect as to valid applications. In this Note, the term "person" shall include an individual, corporation, an association, a partnership, a trust, and any other legal entity.

This Note is executed under seal on the date first above written. The Borrower represents that the loan proceeds will be solely for business or commercial (excluding agricultural) purposes.

ATTEST or WITNESS: BORROWER(S):

__________________________

__________________________

By: ______________(SEAL)

By: ______________(SEAL)

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