EX-10 7 forms1amd1exh103sept-13.txt EXH. 10.3 PROMISSORY NOTE J. HORNING EXHIBIT 10.3 Promissory Note Name of Borrow 1: RD&G LLC - Tim Evans Name of Borrow 2: RD&G LLC - Larry Parsons Name of Lender: James Horning 1. For value received, Borrower promises to pay to Lender the amount of $25,000 on December 31, 2011 at RD&G - 4880 E. Pacific Pl., Denver, CO 80222, together with interest at the rate of 6% per year from the date this note was signed until the date it is: [ ] paid in full (Borrower will receive credits for prepayments, reducing the total amount of interest to be paid). [ ] due or paid in full, whichever date occurs last (Borrower will not receive credits for prepayments). 2. Borrower agrees that this note will be paid in installments, which include principal and interest, of not less than $125 interest only per month, due on the first dye of each month, until the principal and interest are paid in full. 3. If any installment payment due under this note is not received by Lender within 30 days of its due date, the entire amount of unpaid principal will become immediately due and payable at the option of Lender without prior notice to Borrower. 4. If Lender prevails in a lawsuit to collect on this note, Borrower agrees to pay Lender's attorney fees in an amount the court finds to be just and reasonable. 5. Collateral - 2 embroidery machines plus accessories. The term Borrower refers to one or more borrowers. If there is more than one borrower, they agree to be jointly and severally liable. The term Lender refers to any person who legally holds this not, including a buyer in a due course. /s/ Timothy Evans /s/ Larry Parsons ---------------------------------- ------------------------------------- Borrower 1's Signature Borrower 2's Signature 4/9/10 4/9/10 ---------------------------------- ------------------------------------ Date Date Timothy Evans Larry Parsons ---------------------------------- ------------------------------------ Print Name Print Name Denver Denver ---------------------------------- ------------------------------------ City and County where signed City and County where signed 4880 E. Pacific Pl. Denver, CO 80222 4880 E. Pacific Pl. Denver, CO 80222 ---------------------------------- ------------------------------------- Address Address