EXHIBIT 10.7
PROMISSORY NOTE
$71,809.80 OCTOBER 15, 2001
FOR VALUE RECEIVED, and pursuant to Section 10.11 of that certain
Contribution Agreement dated August 9, 2000 entered into by and among
SmartGate, L.C., its members and SmartGate, Inc. ("Agreement"), Xxxxxx X.
Xxxxxx promises to pay to SmartGate, Inc., at 0000 Xxxxxxxxxxxx Xxxxx,
Xxxxxxxx, Xxxxxxx 00000, the principal sum of Seventy-One Thousand Eight
Hundred Nine and 80/100 ($71,809.80) Dollars, together with interest at 4.59%
(the mid-term Applicable Federal Rate for October 2001), as follows:
1. Interest payments shall be made annually on each anniversary date of
the term of this Note, and
2. Any unpaid interest and the principal shall be paid on the first to
occur of February 9, 2005, or the sale of Borrower's shares of
SmartGate, Inc. Common Stock pursuant to Sections 10.7 and 10.11 of the
Agreement generating net proceeds in sufficient amount to repay this
Note.
The borrower may prepay this Note at any time without penalty. This
Promissory Note is made and executed hereunder and is governed by the laws of
the State of Florida.
/s/ XXXXXX X. XXXXXX
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Xxxxxx X. Xxxxxx
