FORM OF NOTE
$300,000 -----------------------------
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June 29, 2000
FOR VALUE RECEIVED, the undersigned, New Visual Entertainment, Inc., a
Utah corporation (the "COMPANY"), hereby unconditionally promises to pay to the
order of [_______________________] (the "LENDER"), located at
_______________________, in lawful money of the United States of America and in
immediately available funds, the principal amount of (a) THREE HUNDRED THOUSAND
($300,000), or, if less, (b) such lesser amount as shall equal the aggregate
unpaid principal amount of all Advances made by the Lender to the Company
pursuant to the Loan Agreement (as hereinafter defined), in one payment together
will all accrued and unpaid interest on the third anniversary of the execution
of this Note (the "Maturity Date"). The annual interest rate shall be six
percent (6%) calculated from the date of each Advance until the earlier of the
repayment of such Advance, together with accrued interest, or the Maturity Date,
all as set forth in the Loan Agreement.
The holder of this Note is authorized to endorse on the schedule
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date and amount of each Advance
made by the Lender to the Company pursuant to the Loan Agreement and the date
and amount of each payment or prepayment of principal thereof. Each such
endorsement shall constitute PRIMA FACIE evidence of the accuracy of the
information endorsed. The failure to make any such endorsement (or any error
therein) shall not affect the obligations of the Company in respect of any
Advance or the Loan Agreement.
This Note is the Note referred to in the Loan Agreement effective as of
October 28, 1999 (as amended, restated, supplemented or otherwise modified from
time to time, the "LOAN AGREEMENT"), among the Company, as borrower, and the
Lender, is unsecured and is subject to the provisions of the Loan Agreement.
Upon the occurrence of any one or more Events of Default, all amounts
then remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable, all as provided in the Loan Agreement.
All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest, notice of acceleration and intent to accelerate,
and all other notices of any kind.
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Unless otherwise defined herein, terms defined in the Loan Agreement
and used herein shall have the meanings given to them in the Loan Agreement.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAWS THEREOF.
NEW VISUAL ENTERTAINMENT, INC.
By:
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Name:
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Title:
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Schedule to Note
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Principal Amount of Unpaid Principal
Advance Amount Principal Balance Notation
Date of Advance Paid of Note Made By
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