PROMISSORY NOTE AND
SECURITY AGREEMENT
FOR VALUE RECEIVED, the
undersigned, Kunekt Corporation (the "Debtor") promises to pay to
the order of Mark Bruk or his assigns (the "Secured Party"), at
such place as Secured Party may designate in writing, in lawful
money of the United States of America and in immediately available
funds, up to the full principal amount of $450,000 with interest at
the rate of the Fed (U.S.) Prime Rate as set forth by the Wall
Street Journal on its Web site at
http://www.wsjprimerate.us/.
Principal and interest
due hereunder shall be payable on demand. The unpaid principal
balance of this note at any time shall be the total amount loaned
hereunder by the Secured Party less the amount of prepayments of
principal made hereon by or for the account of Debtor. Debtor shall
have the right to prepay this note, in whole or in part, at any
time without penalty.
The entire unpaid
principal balance of this note shall immediately become due and
payable, at the option of Secured Party with thirty days written
notice to Debtor.
In the event Debtor
fails to pay the unpaid principal balance of this note and interest
due hereunder within thirty days after receipt of written notice by
Secured Party ("Event of Default"), Secured Party may proceed to
protect and enforce its rights by suit in equity and/or by action
at law or by other appropriate proceedings. No delay on the part of
Secured Party in the exercise of any power or right under this
note, or under any other instrument executed pursuant thereto shall
operate as a waiver thereof, nor shall a single or partial exercise
of any other power or right preclude further exercise thereof.
Notwithstanding anything to the contrary contained herein, if an
Event of Default shall occur, all payments thereafter made
hereunder shall be applied, at the option of Secured Party, first
to costs of collection, and then to principal.
It is hereby specially
agreed that if this note is placed into the hands of an attorney
for collection, or if proved, establi
