$500,000.00 Phoenix, Arizona
PROMISSORY NOTE
FOR VALUE RECEIVED, Mountain States Capital, Inc. ("Borrower"), an Arizona
corporation, hereby promises to pay to the order of Heritage West, L.L.C.
("Lender"), with principal office at 3550 North Central Avenue, Suite 1800,
Phoenix, Arizona, the sum of five hundred thousand dollars ($500,000), together
with interest thereon at the rate of 2.0% per calendar month on the unpaid
principal from October 1, 2000 until paid as follows: all interest accrued
through the last day of each calendar month shall be due and payable on the last
day of said calendar month, and the outstanding principal and interest balance
shall be due and payable on December 31, 2000; EXCEPT that at the option of
Borrower, the due date of this Note shall be extended (in one calendar month
increments) no more than three additional calendar months, with all accrued
interest due and payable on the last day of each successive calendar month, and
the outstanding principal balance at the option of Borrower successively
extended in increments of one calendar month each, such that the remaining
principal balance, unless extended or further extended, shall be due and payable
on the last day of each successive calendar month, with all outstanding
principal and interest due and payable on March 31, 2001.
This Note may be prepaid, at any time, in whole or in part, without
penalty. All payments shall first be applied to interest, and the balance of the
payment to principal.
Borrower waives demand and presentment for payment, protest, notice of
protest and notice of nonpayment. In the event this Note shall be in default,
Borrower agrees to pay all reasonable attorney fees and costs of collection.
Any extension, modification, waiver or other indulgence or discharge or
release of this Note must be in writing. This Note shall be construed, governed
and enforced in accordance with the laws of the State of Arizona.
MOUNTAIN STATES CAPITAL, INC.
By: /s/ Chad Collins September 30, 2000
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Chad Collins, President Date
HERITAGE WEST, L.L.C.
By: /s/ Al Lundstrom September 30, 2000
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Date
