EXHIBIT 10.2
SECURED PROMISSORY NOTE
(SECURED BY A SECURITY AGREEMENT)
(HEREINAFTER "NOTE")
Up To Five Hundred Thousand Dollars Encino, California
($500,000) May 21, 2003
For value received, the undersigned maker/borrower, namely ADVANCED
MEDIA, INC. (hereinafter "BORROWER") hereby promises to pay to XXXXX XXXXX
(hereinafter "HOLDER"), at 00000 Xxxxxxx Xxxx., Xxxxx 000 Xxxxxx, Xxxxxxxxxx
00000, or at such other place as may be designated in writing by the HOLDER of
this NOTE, the principal sum of up to Five Hundred Thousand Dollars ($500,000),
with interest thereon from May 21, 2003 on the outstanding principal balance at
a rate of eight percent (8%) per annum, which principal and interest shall be
payable no later than December 1, 2004.
Principal and interest are payable in lawful money of the United States
of America.
Should BORROWER default on any payment due pursuant this NOTE or
defaults or breaches any of the agreements, promises, covenants, conditions,
duties or obligations under this Note or contained in the Security Agreement
executed in conjunction herewith, then the entire sum of unpaid principal and
interest shall become immediately due and payable to HOLDER, without any notice
to BORROWER by HOLDER. Any failure of HOLDER to exercise its right to accelerate
repayment of this NOTE shall not constitute a waiver of the right to exercise it
in the future or in the event of any subsequent default or breach.
Whether or not legal proceedings are instituted to enforce any of the
HOLDER's rights under this NOTE, BORROWER shall be responsible for and pay all
reasonable costs, including attorney's fees, incurred by HOLDER with regard to
enforcement of its rights under this NOTE or collection of the sums due HOLDER
under the NOTE.
This NOTE is secured by a Security Agreement, dated May 21, 2003,
executed by XXXXXXXX in favor of XXXXXX and is given as security for the
repayment of the loan represented by this NOTE.
Executed this 21st day of May, 2003, in the city of Los Angeles
(Encino), County of Los Angeles, State of California.
"MAKER":
ADVANCED MEDIA, INC.,
A Delaware corporation
/s/ X. Xxxxxxx Xxxxxxxx
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X. XXXXXXX XXXXXXXX,
Secretary and Director
