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					                                 Promissory Note
1. Names
Borrower:
                   FRED R WAY JR, INC. - a New Jersey Corporation
                   6 Silver Beech Court, Bldg #17
                   Upper Saddle River, New Jersey 07458

Lender:
                   LENDER
                   123 Any Street
                   Any Town, New Jersey 12345

2. Promise to Pay
For value received, Borrower promises to pay Lender $_________ and interest at the yearly rate of 50%
on the unpaid balance as specified below.

3. Payment Due
All principal and interest under this note shall be repaid no later than December 15, 2011.
Notwithstanding the same, upon the occurrence of the borrower accumulating the sum of $1 million in
working capital, the entire amount of principal and interest becomes immediately due and payable by
Borrower regardless of the December 15, 2011 deadline.

4. Prepayment
Borrower may prepay all or any part of the principal without penalty.

5. Security
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 certain equipment, fixtures, inventory or other assets, as described in the
security agreement of FRED R WAY JR, INC.



                                          Promissory Note - 1 -
6. 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.

7. Notices
All notices must be in writing. A notice may be delivered to Borrower or Lender at the address specified
in section 1, above, or to a new address that Borrower or Lender has designated in writing. A notice may
be delivered:
                   • in person
                       • by certified mail, or
                           • by overnight courier.

8. Governing Law
This agreement will be governed by and construed in accordance with the laws of the state of New
Jersey.

9. Severability
If any court determines that any provision of this promissory note is invalid or unenforceable, any
invalidity or unenforceability will affect only that provision and will not make any other provision of this
note invalid or unenforceable and such provision shall be modified, amended or limited only to the extent
necessary to render it valid and enforceable.

10. Disputes
If a dispute arises, the parties will try in good faith to settle it through mediation conducted by a mediator
to be mutually selected. The parties will share the costs of the mediator equally. Each party will
cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise
to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator, it will be
arbitrated by an arbitrator to be mutually selected. Judgment on the arbitration award may be entered in
any court that has jurisdiction over the matter. Costs of arbitration, including lawyers' fees, will be
allocated by the arbitrator.

BORROWER
                   FRED R WAY JR, INC. - a New Jersey corporation
                   6 Silver Beech Court, Bldg #17
                   Upper Saddle River, New Jersey 07458

Dated: _________________________________________________________________

By: _________________________________________________________________

Fred R. Way, Jr.
President/CEO
FRED R WAY JR, INC.

LENDER
                LENDER
                123 Any Street
                Any Town, New Jersey 12345
Dated: _________________________________________________________________

By: _________________________________________________________________


                                           Promissory Note - 2 -
Personal Guarantee of a Promissory Note:
In consideration of Lender lending funds to FRED R WAY JR, INC.,
I personally guarantee the timely payment of the above promissory note
on or before December 15, 2011.


Dated: _________________________________________________________________

By: _________________________________________________________________

Fred R. Way, Jr.
6 Silver Beech Court, Bldg #17
Upper Saddle River, New Jersey 07458
Bergen County




                                       Promissory Note - 3 -

				
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