Document:

PROMISSORY NOTE AND SECURITY AGREEMENT

DATE: ___________                               $______________
DEBTOR:
                                                CREDITOR/SECURED PARTY:
Mountain States Capital, Inc.
2601 East Thomas Road, Suite 117                --------------------------------
Phoenix, Arizona 85016
                                                --------------------------------
PROMISE TO PAY
                                                --------------------------------

     Mountain States Capital, Inc. ("Debtor") hereby promises to pay upon demand
to the order of the  CREDITOR/SECURED  PARTY  listed above  ("Creditor")  at the
above  address,   the  sum  indicated  above,  with  interest  at  the  rate  of
____________  percent per month until paid.  This  Promissory  Note and Security
Agreement ("Agreement") is made in Phoenix, Arizona and shall be for a period of
_______________  months at which time all interest and principal  then remaining
shall be due and payable.  The  Agreement  may be called by the Creditor with 90
days written notice.  Monthly interest  payments will be made on the last day of
the month.  All amounts due for partial  months will be prorated  based upon the
number of days in that  month.  Debtor  shall have the option of  prepaying  the
principal  under this Agreement in whole or part,  without  penalty it any time.
All payments  hereunder  shall be applied first to interest,  then to principal,
then to late  charges.  Debtor  shall pay,  upon demand,  any and all  expenses,
including reasonable attorney fees, incurred or paid by Creditor without suit or
action in attempting to collect funds due under this Agreement.  In the event an
action is instituted to enforce or interpret any of the terms of this  Agreement
including  but not  limited  to any  action  or  participation  by  Debtor,  the
prevailing party shall be entitled to recover all expenses  reasonably  incurred
at, before and after trial,  on appeal,  and on review whether or not taxable as
costs,  including,  without limitation,  attorney fees, witness fees (expert and
otherwise), deposition costs, copying charges and other expenses.

SECURITY AGREEMENT

     Debtor,  does  hereby  grant unto the Secured  Party,  its  successors  and
assigns,  a security interest in the assets of the corporation,  Mountain States
Capital,  Inc.,  together  with all  increases,  intangible  assets,  equipment,
renewals and  replacements of all or any part thereof,  and other assets whether
now owned or hereafter acquired by Debtor (all hereinafter called "Collateral"),
and all proceeds of the  Collateral,  to secure prompt  payment when due of this
Promissory  Note and Security  Agreement,  executed  and  delivered by Debtor to
Secured Party, and any and all extensions and renewals thereof,  and any and all
future  advances  made by  Secured  Party to Debtor at Secured  Party's  option,
together with all other  liabilities to Secured Party  (primarily,  secondarily,
direct,  contingent,  sole, joint, or several) due or to become due or which may
be hereafter  contracted or acquired and the performance by Debtor of all of the
terms and conditions of this Agreement.

DEBTOR WARRANTS:  1. Debtor is or will be the owner of the Collateral subject to
similar secured agreements;  2. Debtor has the right to make this agreement;  3.
the Collateral is used or bought for use and will be used primarily for business
purposes  and that  the  location  specified  above is  Debtor's  only  place of
business.

     THIS AGREEMENT IS SUBJECT TO THE ADDITIONAL TERMS ON THE BACK OF THIS PAGE,
WHICH ARE MADE A PART HEREOF.

-----------------------------------     ----------------------------------------
SECURED PARTY             Date          MOUNTAIN STATES CAPITAL, INC.    Date

-----------------------------------
SECURED PARTY             Date
<PAGE>
              DEBTORS FURTHER COVENANTS, WARRANTS AND AGREES THAT:

     1.  Debtor will pay the  Secured  Party all amounts  payable on the note or
notes  mentioned above and all other notes held by Secured Party as and when the
same  shall  be due  and  payable,  whether  at  maturity,  by  acceleration  or
otherwise,  and will  perform  all  terms of said  notes  and this or any  other
security or loan agreement  between Debtor and Secured Party, and will discharge
all said liabilities.

     2.  Debtor  will defend the  Collateral  against  all  persons  claiming an
interest  adverse to that of the  Secured  Party and pay  promptly  when due all
taxes and assessments upon the Collateral.

     3. Debtor will keep the Collateral in good condition and repair, reasonable
wear and tear  excepted,  and will permit  Secured Party to enter upon any lands
owned, leased or otherwise  controlled by the Debtor at reasonable times for the
purpose of examining the Collateral.

     4.  Debtor  will  pay as part  of the  debt  hereby  secured  all  amounts,
including reasonable attorney's fees and legal expenses,  with interest thereon,
paid  by  Secured  Party  (a) for  taxes,  levies,  insurance,  repairs  to,  or
maintenance of the Collateral,  and (b) in taking  possession of disposing of or
preserving the  Collateral,  and (b) in taking  possession  of,  disposing of or
preserving the Collateral after any default hereinafter described.

     5. Debtor will  immediately  notify Secured Party of any change in Debtor's
residence or place of business.

     6. Debtor will without the prior  written  consent of Secured Party provide
for additional  notes and security  agreements at the sole discretion of Debtor.
The Secured Party may be over or under secured.

     7. Debtor hereby authorizes  Secured Party at Debtor's  expense,  to do all
acts and things which Secured  Party may deem  necessary to perfect and continue
perfected  the  security  interest  created by this  security  agreement  and to
protect the Collateral.

     S. Any notice  form  Secured  Party to Debtor,  if mailed,  shall be deemed
given when mailed,  certified mail, postage prepaid,  addressed to Debtor either
at Debtor's address specified above, or such other address of Debtor as may from
time to time be shown on Secured Party's records.

     9. UNTIL  DEFAULT,  Debtor may  retain possession of the Collateral and use
it in any lawful manner not inconsistent with the agreements herein, or with the
terms and conditions of any policy of insurance thereon.

     10.  DEFAULT-Debtor  shall be in  default  under this  agreement  upon the
happening  of any of the  following  events:  (a)  nonpayment,  when due, of any
amount  payable on any of the  liabilities  or failure to observe or perform any
term hereof; (b) if any covenant,  warranty or representation  shall prove to be
untrue in any material  respect;  (c) any Debtor becomes insolvent or unable to
pay debts as they mature or makes an assignment for the benefit of creditors, or
any  proceeding  is  instituted  by or against any Debtor   alleging  that such
Debtor is  insolvent  or unable  to pay debts as they  mature;  (d) entry of any
judgement  against any Debtor;  (e) death of any Debtor who is a natural person,
or of any partner of any Debtor which is a partnership; (f) dissolution,  merger
or consolidation,  or transfer of substantial part to the property of any Debtor
which is a corporation or a partnership; or (g) loss, theft, substantial damage,
destruction or encumbrance of any of the Collateral.

     In the event of a default,  Secured  Party  shall  have the  right,  at its
option  and  without  demand  or  notice,  to  declare  all or any  part  of the
obligations  immediately  due and payable;  and in addition,  Secured  Party may
exercise,  in addition to the rights and  remedies  granted  hereby,  all of the
rights and remedies of a Secured Party under the Uniform  Commercial Code or any
other  applicable  law.  Debtor  agrees in the event of a  default,  to make the
Collateral  available to Secured  Party at a place to be  designated  by Secured
Party which is reasonably convenient. Debtor further agrees  to pay all cost and
expenses  of  Secured  Party,  including  reasonable  attorneys'  fees,  in  the
collection  of any  of the  Obligations  or the  enforcement  of any of  Secured
Party's rights. If any notice of sale,  disposition or other intended  action by
Secured  Party is  required by law to be given to Debtor,  such notice  shall be
deemed  reasonably  and  properly  given if  mailed  to  Debtor  at the  address
specified  above,  or such  other  address  of Debtor as may be shown on Secured
Party's  records,  at least (10) days  before  such sale,  disposition  or other
intended action.  Waiver of any default  hereunder by Secured Party shall not be
waiver of any other default or of a same default on a later  occasion.  No delay
or failure by Secured Party to exercise any right or remedy shall be a waiver of
such right or remedy and no single,  or partial exercise by Secured Party of any
right or remedy shall preclude other or further exercise thereof or the exercise
of any other right or remedy at any other time.

     11. This  agreement  and all rights and  obligations  hereunder,  including
matters of construction, validity and performance, shall be governed by the laws
of  Arizona.  If any  part of this  contract  shall  be  adjudged  invalid,  the
remainder shall not thereby be invalidated.

     12. If more than one party  shall sign this  Security  Agreement,  the term
"Debtor" shall mean all such parties and each of them and all such parties shall
be jointly and severally obligated hereunder.  All rights of Secured Party shall
inure to the benefit of its  successors  and  assigns,  and all  obligations  of
Debtor shall bind Debtor's  heirs,  executors,  administrators,  successors  and
assigns.

     13.   Additional   provisions   of   this   agreement   (if   none   insert
"NONE"):__________________________[FORM OF FACE OF MONTHLY PAYMENT NOTE]

$__________                                                        No.__________

                          MOUNTAIN STATES CAPITAL, INC.

                  18% 12 MONTH PROMISSORY NOTE, SERIES MP-____

STATED              FIRST INTEREST
MATURITY:           PAYMENT DATE:

------------        --------------

     Mountain  States Capital,  Inc., a corporation  duly organized and existing
under the laws of the State of Arizona (herein referred to as the "Issuer"), for
value received,  hereby promises to pay to __________ ____________ or registered
assigns,  the principal sum of ____________  ____________ Dollars on or prior to
the date set forth  above (the  "Stated  Maturity")  and to pay  interest on the
unpaid  portion  of said  principal  sum from the date  hereof  through  the day
immediately  preceding  the date on which such  principal  sum  becomes  due and
payable,  on the first day of each month  beginning  on the date set forth above
with the amount of interest  to be paid on any Payment  Date equal to the amount
of interest accrued through the last day of the immediately  preceding  calendar
month, and to pay interest on any overdue principal and on overdue interest,  at
the rate per annum specified in the title of this Note.

     The first payment of accrued  interest  will be made on the first  interest
payment date set forth above or upon the earlier redemption of this Note. Except
as herein  otherwise  provided with respect to interest  payable on the date the
principal of this Note becomes due and payable (whether at Stated  Maturity,  by
redemption or  otherwise),  the amount of interest  payable on each Payment Date
shall be the interest accrued on this Note through the end of the calendar month
immediately  preceding each Payment Date. The interest so payable on any Payment
Date, and any redemption of Notes that may be made on any Redemption Date, will,
as provided in the Indenture  referred to on the reverse hereof,  be paid to the
Person in whose name this Note (or one or more Predecessor  Notes) is registered
on the Regular Record Date for such Payment Date or Redemption Date, which shall
be the close of business on the last day of the calendar month preceding that in
which such Payment  Date or  Redemption  Date occurs  (whether or not a Business
Day).  Any  redemption  not  made  on the  Redemption  Date or  interest  not so
punctually  paid or duly provided for shall forthwith cease to be payable to the
registered  Holder on the Regular  Record Date, and may be paid to the Person in
whose  name this Note (or one or more  Predecessor  Notes)  is  registered  on a
Special  Record Date for the payment of such defaulted  redemption  proceeds and
interest  to be  fixed by the  Trustee,  notice  whereof  shall be given to Note
holders not less than 10 days prior to such Special Record Date, or may be paid,
at any time in any other lawful manner not inconsistent with the requirements of
any securities  exchange on which the Notes may be listed,  and upon such notice
as may be  required  by  such  exchange,  all as  more  fully  provided  in said
Indenture.

     The  principal  of and  interest  on this Note are  payable in such coin or
currency  of the  United  States of  America  as at the time of payment is legal
tender for payment of public and private  debts,  at the office or agency of the
Issuer  designated  for such purpose in the United  States of America;  provided

<PAGE>
that interest may be paid,  at the option of the Issuer,  by check mailed to the
Person entitled thereto at his address as it appears on the Note Register.

     Reference is made to the further  provisions  of this Note set forth on the
reverse  hereof,  which shall have the same effect as though  fully set forth at
this place.

     Unless the  certificate of  authentication  hereon has been executed by the
Trustee by manual  signature,  this Note shall not be  entitled  to any  benefit
under the Indenture, or be valid or obligatory for any purpose.

     IN  WITNESS  WHEREOF,  Mountain  States  Capital,  Inc.,  has  caused  this
instrument to be signed,  manually or in  facsimile,  by its President or a Vice
President and by its Secretary or an Assistant  Secretary and a facsimile of its
corporate seal to be imprinted hereon.

Dated:                                  MOUNTAIN STATES CAPITAL, INC.

                                        By
                                          --------------------------------------
Attest:

------------------------------

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

     This is one of the  Series  of Notes  referred  to in the  within-mentioned
Indenture.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        Trustee

                                        By
                                          --------------------------------------
                                          Authorized Officer
<PAGE>
                            [FORM OF REVERSE OF NOTE]

     This  Note  is one of a duly  authorized  issue  of  Notes  of the  Issuer,
designated as its 18% 12 Month  Promissory  Notes  (herein  called the "Notes"),
issued  and to be issued  in one or more  Series,  and is part of the  Series of
Notes  designated on the face hereof (herein called the "Notes of this Series"),
all issued and to be issued under an Indenture dated as of __________,  2000 (as
amended,  herein  called the  "Indenture"),  between  the  Issuer and U.S.  Bank
National Association (the "Trustee"),  which term includes any successor Trustee
under the Indenture,  to which Indenture and all indentures supplemental thereto
(including the indenture supplemental thereto which authorized the Notes of this
Series)  reference  is hereby  made for a  statement  of the  respective  rights
thereunder  of the Issuer,  the  Trustee  and the Holders of the Notes,  and the
terms upon which the Notes are, and are to be, authenticated and delivered.  All
terms  used in this Note  which are  defined  in the  Indenture  shall  have the
meanings assigned to them in the Indenture.

     As provided in the  Indenture,  the Notes are  issuable in Series which may
vary as in the  Indenture  provided or  permitted.  All Notes of each Series are
equally and ratably secured to the extent provided by the supplemental indenture
authorizing such Series. This Note is one of the Series specified in its title.

     Notwithstanding  anything to the contrary in this Note, no recourse on this
Note or under the  Indenture  shall be taken  against any property of the Issuer
included  in the  Trust  Estate  (if any) for other  series  of notes  under the
Indenture  securing  the  Notes,  it being  understood  that  this  Note and the
Issuer's  duties under the Indenture are  obligations  which are to be satisfied
solely  from the Trust  Estate  (if any) for the Series  MP-____  Notes and from
other assets of the Issuer that are not pledged to secure other series of notes.

     The Notes are  subject  to  mandatory  redemption  under the  circumstances
described in the following paragraphs 1 and 2:

     1. So long as no Event of Default has occurred and is continuing  under the
Indenture,  the Issuer will redeem Notes of this Series presented for redemption
at a  redemption  price  equal to 100% of the unpaid  principal  amount  thereof
(hereinafter  referred  to as the  "Redemption  Price")  plus  interest  accrued
thereon and unpaid,  if any, to but not including the date fixed for  redemption
(the  "Redemption  Date").  Such redemption will be made on dates  determined as
follows:

        On each Payment Date commencing  ______________,  20___,  Notes shall be
redeemed in Whole Note (i.e.,  $1,000) increments upon ninety (90) days' advance
written request of the holder thereof.

     Notes  sought to be redeemed  pursuant to the  preceding  paragraph  may be
presented  for  redemption  by  delivery  to the Trustee of: (a) the Notes to be
redeemed,  and (b) a written request for redemption in form  satisfactory to the
Trustee  and  signed  by the  Holder  or duly  authorized  representative  (with
appropriate evidence of authority). Only Notes presented for redemption at least
ninety days' prior to the  Redemption  Date will be eligible for  redemption  on
that  Redemption  Date. All such Notes  presented for redemption will be held by
the Trustee until the Issuer is able to redeem them, unless withdrawn by written
request actually  received by the Trustee by the last day of the month preceding
that in which they would  otherwise have been redeemed.  Notes shall be redeemed
<PAGE>
in the  order  of  receipt  by the  Trustee.  The  Trustee  may  establish  such
procedures  as it may deem fair and equitable in order to determine the order of
receipt of such Notes.

     2. So long as no Event of Default has occurred and is continuing  under the
Indenture,  the Issuer, at its option,  may redeem any or all of the Outstanding
Notes of this  Series  on any  Redemption  Date at the  Redemption  Price of the
principal  amount thereof (plus interest accrued and unpaid on such Notes to but
not including the Redemption Date).

     If an Event of  Default  as defined  in the  Indenture  shall  occur and be
continuing,  the principal of all the Notes,  or of all the Notes of any Series,
may  become or be  declared  due and  payable  in the manner and with the effect
provided in the Indenture.

     As provided in the Indenture and subject to certain limitations therein set
forth,  the transfer of this Note may be  registered on the Bond Register of the
Issuer,  upon surrender of this Note for  registration of transfer at the office
or agency of the Issuer in the United  States of America,  duly  endorsed by, or
accompanied  by a written  instrument  of transfer in form  satisfactory  to the
Issuer and the Trustee duly  executed by, the Holder hereof or his attorney duly
authorized  in writing,  and  thereupon one or more new Notes of the same Series
and maturity,  of authorized  denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer,  the  Trustee  and any agent of the Issuer or the  Trustee may treat the
Person in whose name this Note is registered as the owner hereof for the purpose
of receiving  payment as herein provided and for all other purposes,  whether or
not this Note be overdue, and neither the Issuer, the Trustee nor any such agent
shall be affected by notice to the contrary.

     The Indenture  permits,  with certain  exceptions as therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the rights of the  Holders of the Notes  under the  Indenture  at any
time by the Issuer with the  consent of the  Holders of a majority in  aggregate
principal amount of Notes at the time Outstanding (as defined in the Indenture),
in case Outstanding Notes of all Series are to be affected,  or with the consent
of the Holders of a majority in aggregate  principal  amount of the Notes at the
time  Outstanding  of each Series to be affected,  in case one or more, but less
than all,  of the  Series of Notes  then  Outstanding  are to be  affected.  The
Indenture  also  contains   provisions   permitting  the  Holders  of  specified
percentages in aggregate  principal amount of the Notes at the time Outstanding,
and of Notes at the time  Outstanding  of each Series to be affected in case one
or more,  but less than all,  such Series are to be  affected,  on behalf of the
Holders  of all the  Notes,  to waive  compliance  by the  Issuer  with  certain
provisions of the  Indenture  and certain past defaults  under the Indenture and
their consequences.  Any such consent or waiver by the Holder of this Note shall
be conclusive  and binding upon such Holder and upon all future  Holders of this
Note and of any Note  issued  upon the  registration  of  transfer  hereof or in
exchange  herefor or in lieu hereof  whether or not  notation of such consent or
waiver is made upon this Note.

     The term  "Issuer" as used in this Note  includes any  successor  under the
Indenture.

     The Notes are issuable only in registered  form without coupons in original
denominations of $1,000 and any integral  multiple  thereof ("Whole Bonds"),  as
provided in the Indenture and subject to certain  limitations therein set forth.
The Notes are exchangeable for a like aggregate principal amount of Notes of the
same Series and maturity of a different authorized denomination, as requested by
the Holder surrendering same.
<PAGE>
     No reference  herein to the  Indenture  and no provision of this Note or of
the  Indenture  shall alter or impair the  obligation  of the  Issuer,  which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.
<PAGE>
                             REQUEST FOR REDEMPTION

     The  undersigned  Holder,  or legal  representative  of the Holder,  hereby
presents the within Note of Mountain States Capital, Inc., for redemption on the
next  Redemption  Date upon which such Note would be eligible for  redemption in
accordance with, and subject to, the terms and conditions of the within Note and
the Indenture.

Dated
     ---------------------------        ----------------------------------------

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