FROM SECURED CREDITOR TO BORROWER DEMANDING PAYMENT

[DATE, ex. Wednesday, June 11, 1998]

[NAME, COMPANY AND ADDRESS, ex.

John Smith

XYZ Inc.

1234 First Street

Suite 567

Anycity, Anystate 85245]

Dear [NAME, ex. John Smith],

Notice is hereby given that [BORROWER=S NAME] has defaulted in payment of its indebtedness to us. As of [DATE, ex. June 30, 1998], [BORROWER=S NAME] the indebtedness amounts to [FULL AMOUNT OF DEBT, INCLUSIVE OF PRINCIPAL AND INTEREST, ex. $24,691.88] inclusive of principal advances and accrued interest.

We therefore demand payment in full of of [BORROWER=S NAME] unpaid indebtedness to us in the amount of [FULL AMOUNT OF DEBT, INCLUSIVE OF PRINCIPAL AND INTEREST, ex. $24,691.88] on or before [DATE OF DEADLINE FOR REPAYMENT, ex. November 30, 1998], failing which we will take such action as may be necessary to effect repayment, including realization under any collateral security delivered to the us.

Kindly govern yourself accordingly.

Sincerely,

[YOUR NAME, ex. Jill Jones]