Sample Business Contracts

Commercial Term Note - First NH Bank and Omtool Ltd.

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                              COMMERCIAL TERM NOTE

$250,000.00                                                 Salem, New Hampshire
                                                                 August 30, 1996

1.       Promise to Pay.

         In the manner hereinafter specified, the undersigned ("Maker")
unconditionally promises to pay to the order of First NH Bank (along with its
successors and assigns referred to as "Bank") the principal sum of TWO HUNDRED
FIFTY THOUSAND DOLLARS ($250,000.00), together with interest thereon at the
Applicable Interest Rate (defined below) from the date hereof until payment in
full (computed on the basis of the actual number of days elapsed over a year of
360 days).

2.       Interest and Principal Payments.

         2.1  Applicable Interest Rate.

              The Applicable Interest Rate shall be equal to one-half percent
              (.5%) per annum ("Increment") above the following Index: lowest
              Wall Street Journal Prime Rate, so-called, as adjusted from time
              to time. For purposes of calculating the Applicable Interest Rate
              hereunder, the "Wall Street Journal Prime Rate" shall mean the
              prime rate (the base rate on corporate loans at large U.S. money
              center commercial banks) as published in the Money Rates section
              of the Wall Street Journal or other equivalent publication if the
              Wall Street Journal no longer publishes such information (if more
              than one such prime rate is published on any given day, the lowest
              of such published rates shall be the Wall Street Journal Prime
              Rate for purposes of this Note) ("Index"). If the Index shall
              cease to exist, Bank may set the Applicable Interest Rate by using
              a different increment and comparable index.

         2.2  The Applicable Interest Rate shall adjust ("Payment Change Date")
              as follows:

              each time and as of the time that the Index changes without notice
              to Maker each time the Index changes.

         2.3  Interest Payments.  Interest shall be paid as follows:

              interest included in the Blended Installment provision set forth

         2.4  Principal Payments.  The Principal Balance shall be due and
              payable as follows:

              Blended Installments. Principal and interest shall be paid in
thirty-six (36) equal monthly installments based on an amortization over
thirty-six (36) months commencing on September 30, 1996, and continuing on the
same day of each month thereafter with a final payment of all unpaid principal
and interest due on August 30, 1999. Upon a Payment Change Date, using a
standard amortization table for declining balance loans, the monthly payment
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be adjusted to equal monthly blended payments of principal and interest required
to amortize a loan in the amount of unamortized principal outstanding at the
Payment Change Date at the new Interest Rate established over the remainder of
the term.

3.       Application of Payments and Prepayment.

         Prepayment. Maker may prepay the principal balance prior to maturity in
accordance with the following terms:

         at any time without penalty.

         All payments by Maker hereunder shall be applied first to outstanding
late and other charges, then to accrued interest, then to Principal currently
due, the balance to prepayment of Principal. No prepayment of less than the full
unpaid balance shall relieve Maker of his obligation to pay his next installment

4.       Late Payment.

         Maker shall pay to the Bank a late charge of five percent (5%) of any
installment not received by the Bank within ten (10) days after such installment
is due.

5.       Set-Off.

         Bank shall have the right of set off against and a security interest in
all deposits and other property of Maker which are maintained with Bank.

6.       Events of Default and Remedies on Default.

         Upon any of the following Events of Default, this Note shall become
immediately due and payable without further notice or demand:

         6.1  failure to make any payment hereunder when due or failure to pay
any other obligation of Maker to the Bank, now existing or subsequently arising,
including, but not limited to the obligations of Maker to the Bank pursuant to
the Demand Note between the parties of even date;

         6.2  upon the earlier to occur of:  (i) notice of default under the
Series B Agreement, and (ii) commencement of an action by the Series B Preferred
Stockholders for breach of the Series B Agreement;

         6.3  any default under any instrument executed in connection with this
Note or under any other document now or subsequently evidencing indebtedness of
Maker to the Bank not cured in accordance with applicable cure periods;

         6.4  any transfer, attachment or other interference with a substantial
portion of Maker's assets (except for sales of inventory and replacement of
equipment in the ordinary course of business);
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         6.5  death of any individual Maker or dissolution or liquidation of any
corporate, partnership or trust Maker; or

         6.6  insolvency of Maker; appointment of a receiver of Maker's
property, assignment for the benefit of creditors, commencement of any
proceeding under bankruptcy or similar laws relating to the relief of debtors,
voluntary or involuntary.

7.       Waivers.

         Maker and all sureties, endorsers and guarantors of this Note hereby
waive demand, presentment for payment, notice of nonpayment, protest, notice of
protest and all other notice, filing of suit and diligence in collecting this
Note, and agree to pay all costs of collection when incurred including court
costs (including bankruptcy and probate proceedings) attorney's fees together
with interest thereon at the Applicable Interest Rate. Interest at the
Applicable Interest Rate or the rate of interest on judgments as prescribed by
New Hampshire RSA 336:1, whichever is greater, shall be deemed to continue to
accrue at said rate from the maturity date hereof (whether by acceleration,
institution of suit for collection or otherwise) until this Note is paid in

8.       General Provisions.

         No delay or omission on the part of the Bank in exercising any right
hereunder shall operate as a waiver of such right, or of any other right of the
Bank, nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. This
Note is fully negotiable. In the event any payment received by Bank shall be
deemed to have been a voidable preference or fraudulent conveyance then the
obligations of the undersigned shall survive and shall not be discharged by said
payment notwithstanding return to Maker of this original Note. This Note shall
be governed by the laws of the State of New Hampshire. The obligations of the
undersigned, if more than one, shall be joint and several. The unenforceability
of any provision herein shall not effect the enforceability of any other
provision herein. This Note shall inure to the benefit of and be binding upon
the successors and assigns of Bank and Maker. This Note shall have the effect of
an instrument executed under seal. This Note shall continue in full force and
effect until all Liabilities are satisfied in full and Bank is no longer
obligated to make advances to Maker, even if the amount of the Liabilities at
any time is zero.

WITNESS:                                    Omtool Ltd. - MAKER

___________________________________         By:_________________________________