NOTE AND SECURITY AGREEMENTNote and Security Agreement • January 30th, 2007 • Terax Energy, Inc. • Oil & gas field exploration services • Texas
FOR VALUE RECEIVED, the undersigned, TERAX ENERGY, INC., (“Borrower”), a Nevada corporation, 13355 Noel Road, 1370 One Galleria Tower, Dallas, TX 75240 (telecopy number: (214) 691-2501), hereby promises to pay to the order of CENTURY CAPITAL MANAGEMENT LTD. (“Lender”), at its principal office, Waterfront Centre, 200 Burrard Street, Suite 1650, Vancouver, BC V6C 3L6 (Attention: Andrew Hromyk) (telecopy number:604-689-5320) in such currency of the United States of America ("USA") which shall be legal tender in payment of all debts and dues, public and private, at the time of payment, the principal sum of FIVE HUNDRED THOUSAND DOLLARS (US$500,000) or such lesser amount as may have been advanced hereunder which has not been repaid, together with interest on the unpaid principal balance from time to time outstanding at a rate per annum equal to the lesser of (a) during each month, the Prime Rate on the first business day of such month plus three percent (3%) or (b) the maximum lawful rate u
