PROMISSORY NOTE
$100,000.00
August 23, 2004
-----------------------
Nelana Holdings, Ltd., an entity duly
formed and organized under the laws of the
Turks and Caicos Islands ("Maker") hereby promises to pay to the order of
Reality Wireless Networks, Inc., a Nevada
corporation ("Holder"), at 7235 North
Creek Loop, Gig Harbor, WA 98335, the sum of One Hundred Thousand Dollars
($100,000) (the "Principal"), with interest at the rate of two
percent (2%) per
annum until paid, pursuant to the following
schedule:
1.
Maker
promises to pay Ten Thousand Dollars ($10,000.00) to Holder on
or before October 15, 2004; and
2.
Maker
promises
to pay Seven Thousand Five Hundred Dollars
($7,500.00) plus any
accrued interest on or
before the fifth (5th)
day of each month
thereafter until all
principal and interest
has
been paid under this Promissory Note.
All outstanding principal and interest is
due on or before October 15, 2005.
If not so paid and at the option of Holder,
or its assigns,
all principal and
interest shall become immediately due and payable.
An "Event of Default"
under
this Promissory Note shall be deemed to occur when
the Principal or any
other
amount to be paid under this Promissory Note is not paid in
full when due. Upon
an Event of Default, Maker promises to pay to Holder interest on all unpaid
Principal at a rate equal to eighteen
percent (18%) per annum.
Interest shall be computed on the basis of a 365-day
year or 366-day
year as
applicable, and actual days lapsed. Maker
shall have the privilege of prepaying
the principal under this Note in whole or
in part, without pen
