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EXHIBIT 10.22
$80,000 JUNE 12, 2000
SECURED PROMISSORY NOTE
For value received, James T. Lunney promises to pay to the order of
Patriot Scientific Corporation (a Delaware corporation) (hereinafter "Holder"),
in legal tender, the sum of $80,000, with interest on the outstanding balance at
the annual rate of 6 (six) percent. This Note commences on June 12, 2000
(hereinafter "Commencement Date"), and all obligations set forth herein are
measured from this date. The principal balance and any unpaid interest of this
Note will be due and payable on or before June 12, 2003 (hereinafter "Maturity
Date").
Interest on this Note shall be due and payable semi-annually on each
December 12 and June 12 in the amount of $2,400 (two thousand four hundred
dollars) with any prorated interest balance to be paid no later than the
Maturity Date. There shall be no prepayment penalty if this Note is paid in full
before the Maturity Date.
In the event of a default under the terms of this Note, upon ten days
following written demand by Holder of this Note to cure such default, and such
default having not been cured, Holder may, at Holder's sole and absolute
discretion, declare all remaining principal and interest immediately due and
payable. Waiver by Holder hereof to enforce any provisions of this Note shall
not operate to bar Holder's rights to enforce any provisions of this Note at any
later time or for any later default.
During the period of time this Note is outstanding, James T. Lunney
shall pledge as security to the Holder a minimum of 100,000 shares ("Pledged
Shares") of Patriot Scientific Corporation common stock which he holds as of the
Commencement Date. The Pledged Shares shall not be hypothecated, pledged or
encumbered in any way to any party other than the Holder during the term of this
Note.
In the event legal action is brought to recover on, or to secure payment
on, the within Note, or in the event any party hereto, or assignee, files an
action to interpret any provisions of this Note, the prevailing party in such
action shall be entitled to such legal fees and costs of suit as determined by a
court of law of competent jurisdiction to have been reasonably incurred in such
action.
All payments and performance of the obligations under this Note shall be
made at 10989 Via Frontera, San Diego, California, 92127.
This Note is entered into in San Diego, California and shall be
interpreted under the laws of the State of California.
Dated: June 12, 2000
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By: /s/ JAMES T. LUNNEY
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James T. Lunney
