FOR VALUE RECEIVED IN THE PAYOFF OF EMTEX LEASING CORP, LEASE # 01-001-020635-01-0001 , and
pursuant to the terms of this Promissory Note (this “Note”), the undersigned DICKIE WALKER MARINE, INC., a Delaware
corporation (the “Maker”), 1405 South Coast Highway, Oceanside, CA 92054, promises to pay to the order of Gerald W. Montiel
(“Montiel”), 6206 Avenida Cresta, La Jolla, CA 92037, the principal amount of $53,902.07 (the “Principal”) together with interest
on the outstanding Principal from and after the date hereof accruing at eight percent per annum (8.0%) (the “Interest”). Interest,
based on a 365-day year, shall be accrued for the number of days the principal sum (or any portion thereof) is actually
outstanding. (The outstanding Principal and all accrued but unpaid Interest thereon is hereinafter collectively referred to as the
“Indebtedness.”). All amounts payable hereunder are payable in lawful money of the United States of America. This Note may
be prepaid at any time.
A. Amount and Place of Payment . Maker’s payment of Principal and Interest or any portion thereof to Montiel shall occur
upon the demand of Montiel. In all events, Interest and/or Principal shall be payable at the address of Montiel as provided
herein, or at such other place as Montiel may from time to time designate by written notice to Maker.
B. Application of Amount Paid . All payments on this Note shall be applied first to the payment of accrued Interest, and,
after all such Interest has been paid, any remainder shall be applied to reduction of the Principal balance.
C. Default . Any one or more of the following shall constitute an event of default (“Event of Default”) of this Note,
immediately upon the happening thereof, except as otherwise provided in this paragraph:
March 2, 2005
1. Maker’s failure to pay any amount under this Note within ten days after written notice of nonpayment has been
sent via U.S.