EXHIBIT 10.3
SECURED PROMISSORY NOTE
(Secured by a Deed of Trust)
(hereinafter "NOTE")
Up To Three Hundred Thousand Dollars Encino, California
($300,000) August 18, 1998
For value received, the undersigned maker/borrower, namely ADVANCED KNOWLEDGE,
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 Three Hundred Thousand Dollars ($300,000), with interest
thereon from August 18, 1998 on the outstanding principal balance at a rate of
eight percent (8%) per annum, which principal and interest shall be payable on
December 1, 1999.
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 August 18, 1998, executed by
XXXXXXXX in favor of XXXXXX and is given as security for the repayment of the
loan represented by this Note.
Executed thi18tth day of August, 1998, in the city of Encino, County of Los
Angeles, State of California.
"MAKER":
/S/ X. XXXXXXX XXXXXXXX
-------------------------
Secretary and Director
