Document:

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                                                                   EXHIBIT 10.74
                          CONVERTIBLE PROMISSORY NOTE

WHEREAS, Applied Data Communications, Inc. ("ADC" or the "Company"), a
corporation organized and existing under the laws of the state of Delaware,
desires to expand its business operations and requires additional financial
resources for such purpose and Ilse Tesari, Trustee, Ilse E. Tesari Living
Revocable Trust ("Lender"), Trust Agreement UTD November 3, 1988, desires to
provide such financing under the terms and conditions detailed herein,

NOW THEREFORE, the Company and the Lender, collectively "Parties", do hereby
covenant and agree as follows:

1. Borrowing

Lender agrees to loan funds in the principal amount of $398,574.97 to Borrower,
by means of providing a mortgage ("Mortgage") on certain property owned by the
Lender. Parties acknowledge that Lender has obtained said mortgage from a
mortgage provider ("Mortgage Provider") in the amount of $440,000, before loan
fees and costs of $20,152.99 and additional costs of securing said loan of
$21,272.04. Said Mortgage is repayable over 30 years, together with interest
which will vary in rate, but which is initially 8.875% and pursuant to which
Lender is required to make initial monthly payments to Mortgage Provider of
$3,500.00.

2. Repayment

Company agrees to pay lender as follows: (i) $3,500.00 on June 1, 1997 and on
the first day of each of the next four months, the sum of $3,500.00 and (ii) on
November 1, 1997 ("Maturation Date"), the sum of $418,727.96 less amortization
of principal based upon such monthly payments made by Lender to Mortgage
Provider. Parties agree that to the extent that Lender's monthly payment to
Mortgage Provider changes, due to changes in the interest rate on Lender's
Mortgage, Company will increase or decrease it's monthly payment to Lender.
Parties acknowledge that such final sum shall include $20,152.99 in fees and
related costs. Company shall have ten (10) day grace period for such payments.
Company also agrees to reimburse Lender for late fees assessed by Mortgage
Provider caused by delays in payments made by Company to Lender.

3. Currency, Payment Location

The principal of, and interest on this Note, are payable in lawful money of the
United States at the office of the Lender as provided herein, or at such other
office of the Lender as Lender may from time to time designate.

4. Prepayment

This Note may be repaid, in whole or in part, prior to the Maturation Date, by
Company at any time, without notice. If prepaid, the amount due at the time of
prepayment shall be the principal amount of this Note plus interest accrued to
the date fixed for prepayment.

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5. Convertibility

This Note will be convertible at the option of the Lender, in any amount, at any
time from and after its issuance and prior to its prepayment or maturity. This
Note will be convertible into fully paid and nonassessable shares of common
stock ($.01 par value) of the Company, or the equivalent number of shares of
convertible preferred stock, at the rate of one share for each $1.00 of
principal, plus any accrued and unpaid interest.

6. Notice, Exercise of Conversion

In order to exercise the conversion privilege, the Lender will provide notice of
Lender's intention to convert the Note, to Company, as provided herein, in
writing, by registered mail, at least ten (10) days prior to the date for which
Lender desires to convert said Note. If called by the Company, Lender shall have
ten (10) days from receipt of said notice to advise Company of election to
convert such note to common stock of the Company.  Lender will surrender Note to
the Company with the form of conversion hereinafter to be provided, duly
executed by Lender, at which time further accrual of interest shall cease.
Company shall issue shares of its common stock as soon as practicable thereafter
pursuant to exercise of Lender's conversion rights.

7. Lender Fee

Parties acknowledge and agree that Lender has provided valuable service to
Company through provision of funds hereunder and that Company's payments to
Lender, as provided herein, are intended to match those required by Lender to
Mortgage provider, without provision for mark up or other similar adjustment.
Parties agree that in exchange for such valuable service, Company agrees to
grant to Lender, an option to purchase up to 100,000 shares of its common stock,
$.01 par value, fully paid and non assessable, or the equivalent number of
convertible shares, for a period of five years following repayment of the Note.
The purchase price for said shares shall be $1.00 per share. Notice of Lender's
intent to exercise said option shall be given to Company as provided herein,
together with Lender's check in the appropriate amount. Company agrees to issue
shares as soon as practicable thereafter.

8. Note Extension

Parties agree that the Note may be extended as the parties may, from time to
time, agree.

9. Security

This note is secured by the general assets of the Company. Company plans to use
all or part of the money loaned under the Note to obtain equipment, specifically
a Rimage/4M MCL 4000 CD ROM finishing line or equivalent equipment and for
general corporate purposes.  When Company acquires the subject equipment, the
Note shall be secured by a UCC lien in a second position behind the company
financing the Company's purchase of the subject equipment.  The amount of the
fist position loan shall not exceed $560,000.

10. Subordination

The payment of principal and interest, to the extent not repaid through (i)
repayment as provided in paragraph 2 above, or (ii) by liquidation of the
equipment financed by this Note, is subordinated in right of payment to the
prior payment in full of all senior indebtedness, or of any secured borrowings
of the Company, whether outstanding on this date or thereafter which are secured
by prior claim on said equipment, as outlined in the

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Private Placement Memorandum dated September 26, 1996, a copy of which has been
received by Lender.

11. Company Covenants

Company covenants and agrees that, so long as any portion of the Note is
outstanding, (i) it is and will continue to be a validly organized corporation,
operating within the laws of states and of the United States federal government,
(ii) its officers are fully vested with authority to execute this Note, and
(iii) it will make its best efforts to expedite return to public trading status
for its common stock and maintain current reporting status relative to filing of
reports mandated by the Securities and Exchange Commission and (iv) continue to
engage in the business of duplicating software, together with related customer
service activities.

12. Default

A. Without notice, except as expressly provided herein, the following will be
deemed to be events of default:
(i) Default in the payment of the principal, and/or interest, of any of the
Notes as and when the same become due and payable, either at maturity, or upon
prepayment,

(ii) Failure on the part of the Company duly to observe or perform any other of
the covenants or agreements on the part of the Company contained in the Note and
such failure has continued unremedied for a period of sixty (60) days after the
date of the Company's receipt of such notice (in the absence of waiver by the
Lender).

(iii) Initiation of the Company of proceedings to be adjudged bankrupt, a decree
or order by a court of competent jurisdiction adjudging the Company to be
bankrupt or insolvent, or approving a petition seeking reorganization of the
Company under the federal bankruptcy laws, or any other similar applicable
federal or state law, or appointment of a receiver or liquidator is made
pursuant to such decree, or general assignment for the benefit of creditors, and
such decree or order has continued undischarged or unstayed for a period of
sixty (60) days.

(iv) In the event of default, as defined in any indenture, trust agreement or
other instrument securing or protecting any part of any outstanding debt of the
Company, now or hereafter outstanding, and a maturity of any such part of the
debt has then been accelerated pursuant to the provisions of any such indenture,
trust agreement, or other instrument and such acceleration has not been
rescinded or annulled prior to the expiration of thirty (30) days alter the date
of such acceleration.

B. If any one of the foregoing events of default occurs, the Lender may declare
the principal of and all accrued interest on all Notes then outstanding
immediately due and payable without further notice or demand; provided, however,
that at any time within fifteen (15) days after such declaration the same may be
rescinded and such event of default may be waived by the Lender.

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C.  Upon any such acceleration of the maturity of the Note, the Company will
within thirty (30) days pay to the Lender the entire outstanding principal
balance unpaid on such Note, together with accrued interest thereon to the date
of such payment.

D.  If the Company fails to make payment to the Lender of the Notes as provided
in the preceeding Subparagraph (C), the Lender will be entitled and empowered to
take such measures as may be appropriate to enforce the Company's obligations
under the Note held by Lender, by judicial proceedings or otherwise.  In the
event suit is brought to enforce payment of this Note, the Company promises to
pay a reasonable attorney's fee to be fixed by the court.

13. Notice, Delivery

Any communication or notices may be delivered or mailed to the offices of the
Company as follows:

                       Applied Data Communications, Inc.
                                 16 Technology
                           Irvine, California 92718

and to the Lender at his address below set forth, or to such other addresses as
the Company or Lender may designate in writing from time to time.
                             Ilse Tesari, Trustee
                     Ilse E. Tesari Living Revocable Trust
                              12234 Everglade St.
                             Los Angeles, CA 90066

14. Applicable Law

This Note is to be construed under the laws of the State of California.

I5. Transferability, Successors and Assigns

This Note is transferable by Lender to any subsequent party ("Transferee"), in
person or by Lender's attorney duly authorized in writing only on the surrender
of this Note, duly endorsed without recourse, or by any lawful successor
Transferee. On the surrender of this Note, for transfer, the Company will issue
a new Note in its place, with the same rights and privileges, to receive
repayment and interest, or to convert such Note, subject to subparagraph 5
above, as were held by the Lender or any subsequent Transferee. The Company may
treat any holder of such note(s) as the absolute owner for the purpose of
receiving payment of principal and interest or effecting conversion of this Note
into shares of common stock.

Executed on May 3, 1997                                  May 8, 97
            ------------

Applied Data Communications, Inc.
By    /s/ Walter J. Kane                                 /s/ Ilse E. Tesari
      ------------------                                 ------------------
      Walter J. Kane
Its   Chief Executive/Officer                            Lender

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                                                                   EXHIBIT 10.75

JOHN G. BRADSHAW
A PROFESSIONAL LAW CORPORATION
SUITE 800
3 IMPERIAL PROMENADE
SANTA ANA, CALIFORNIA 92707
(714) 641-1690    FAX (714) 641-1780

STATE BAR NO. 37814

ATTORNEY FOR PLAINTIFF

                SUPERIOR COURT OF CALIFORNIA, COUNTY OF ORANGE

                            CENTRAL JUSTICE CENTER

PLAINTIFF: ROGER SAVILLE                                  NO. OOCC15340

                                                          NOTICE OF
                                                          SETTLEMENT
                             vs.                          (OCR 455 and CRC 225)

Defendant: APPLIED DATA COMMUNICATIONS,
           INC., et al.

     Pursuant to Orange County Superior Court Rule 455 and California Rules of
Court 225, plaintiff, ROGER SAVILLE, and defendants, APPLIED DATA
COMMUNICATIONS, INC. and WALTER J. KANE, hereby notify the court of a full and
complete settlement of the above entitled action. A copy of the fully executed
Settlement Agreement is attached hereto as Exhibit A and made a part hereof by
reference.

     The settlement between plaintiff and defendants contains conditions for
dismissal of this matter upon the satisfactory completion of specified terms set
forth in the Settlement

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                             NOTICE OF SETTLEMENT
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Agreement that are not to be performed within forty-five (45) days of the
settlement. The specified dismissal date is July 1, 2016.

     Dated:_________________________, 2001.

                                    JOHN G. BRADSHAW
                                    A Professional Law Corporation, by:

                                    [unsigned]
                                    -----------------------------
                                    JOHN G. BRADSHAW
                                    Attorney for Plaintiff, ROGER SAVILLE

                                    DARLING & ROBERTSON, LLP, by:

                                    /s/ Jon R. Robertson
                                    -----------------------------
                                    JON R. ROBERTSON
                                    Attorney for Defendants,
                                    APPLIED DATA COMMUNICATIONS, INC. and
                                    WALTER J. KANE

                                       2
                             NOTICE OF SETTLEMENT
<PAGE>

                             SETTLEMENT AGREEMENT

     This Settlement Agreement is entered into by and between ROGER SAVILLE,
plaintiff in the action hereinafter described ("SAVILLE"), and ADC DATA
COMMUNICATIONS, INC. ("ADC"), and WALTER J. KANE ("KANE"), defendants in the
action hereinafter described, and is effective July 5, 2001.

                                   RECITALS

     A.   SAVILLE has filed an action against ADC and KANE in the Orange County
Superior Court, action number OOCC15340.

     B.   The parties to this Settlement Agreement desire to fully and
completely settle and resolve the pending litigation upon the terms and
conditions set forth herein.

     NOW, THEREFORE, it is agreed:

          1.   Stipulated Judgment. A Stipulated Judgment in the total sum of
$680,769.00, plus interest at the statutory rate of 10% per annum accruing from
AUG 1, 2001, shall be executed by the respective parties, held by counsel for
plaintiff, and not entered until and unless a default occurs in the agreed
obligations. The judgment against ADC is the full amount of $680,769.00 plus
costs in the sum of $258.00 and interest. SAVILLE or counsel for SAVILLE is
authorized to enter the Stipulated Judgment at the time of the default.

          2.   Agreed Obligations. The agreed obligations are as follows:

               a.   Commencing July 31, 2001 and on the first day of each month
thereafter for a total of 180 months, ADC shall commence monthly payments in the
sum of

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$5,415.00. Said payments shall be credited against the Note obligations set
forth as Notes #3 and #6 in the attached ADC Note summary. The parties
acknowledge that said monthly payments results in an amortized payment based
upon a 10% interest rate of 180 months.

               b.   The remaining Notes identified as #1, #2, #4, #5a and #5b in
the attached ADC note summary, which total $176,873.00, shall be held in
abeyance. If payments on notes #3 and #6 are made in a timely manner in
accordance with the provisions of subparagraph 2-a above, all interest accruing
after June 1, 2001 with respect to notes as #1, #2, #4, #5a, and #5b shall be
waived, and the $176,873.00 payment will be deferred for 180 months, or until a
default under the amortized payments, as set forth above. Assuming no default
has occurred, the $176,873.00 payment shall be made on July 1, 2016.

          3.   Default. A default with respect to the payment obligations set
forth in this agreement shall occur if the required performance is not completed
on or before the date for said performance, i.e., the date for the payment
commencing July 31, 2001 and on the first day of each successive month
thereafter, as set forth above. Notwithstanding any language to the contrary, as
an accommodation to ADC, said party shall have a 10-day grace and cure period
which shall commence upon notice of said default. ADC may cure the default
within said 10-day period provided that full payment is received prior to the
expiration of said 10-day period. If full payment is not so received, the
Stipulated Judgment may be entered without any further notice to ADC. Said
notice shall be deemed given upon posting to ADC addressed at 3324 South Susan,
Santa Ana, California 92704, with a copy to the attorney for ADC and KANE, Jon
R. Robertson, Esq., Darling & Robertson, LLP, Plaza Tower, 600 Anton Boulevard,
Suite 1600, Costa Mesa, California 92626.

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     TIME IS OF THE ESSENCE WITH RESPECT TO ALL OBLIGATIONS SET FORTH IN THIS
SETTLEMENT AGREEMENT.

          4.   Delivery of Stipulated Judgment. ADC shall execute the original
Stipulated Judgment and shall deliver the same to SAVILLE at the time of the
execution of this Settlement Agreement. The Stipulated Judgment shall not be
filed with the Orange County Superior Court unless a default occurs with respect
to the obligations set forth in this agreement. In such event, SAVILLE may cause
the Stipulated Judgment to be filed and entered with the Orange County Superior
Court without any further notice to ADC, provided that SAVILLE has given the 10-
day notice set forth in paragraph three of this agreement. At the time of the
filing of the Stipulated Judgment, SAVILLE shall file a partial satisfaction of
judgment for any payments received by him pursuant to this agreement. All
partial satisfactions of judgment for payments made by ADC, whether before or
after the entry of judgment, shall be applied to the judgment against ADC.

          5.   Dismissal. Upon full and timely performance by ADC of all terms
and conditions of this Settlement Agreement and full performance of all
executory provisions set forth herein, SAVILLE will file a Request for
Dismissal, with prejudice, in the pending Orange County Superior Court action
identified above. Upon full execution of this Settlement Agreement, SAVILLE will
file a Request for Dismissal, without prejudice, in the pending Orange County
Superior Court action identified above, as to KANE only. In exchange, KANE
waives any right he may have to recover costs and attorneys' fees he has
incurred in this matter.

          6.   Release. Except as provided in this Settlement Agreement, and
except for matters relating to employment compensation of SAVILLE by ADC, or
matters relating to stock or securities of ADC, neither of which are the subject
matter of the lawsuit between the parties, SAVILLE does hereby release ADC, and
ADC does hereby release SAVILLE, and their respective

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agents, servants, successors, heirs, executors, administrators, and assigns,
from any and all claims, actions, causes of action, demands, costs, or
obligations of any nature existing as of the date of this agreement.

     Except as provided herein, it is further understood and agreed that all
rights under Section 1542 of the Civil Code of the State of California, and any
similar law of any state or territory of the United States ARE HEREBY EXPRESSLY
WAIVED. Said section reads as follows:

     "1542. Certain claims not affected by general release. A general release
     does not extend to claims which the creditor does not know or suspect to
     exist in his favor at the time of executing the release, which if known by
     him must have materially affected his settlement with the debtor."

               7.   Non-Assignment. SAVILLE represents, warrants, and covenants
that he is the true owner and holder of the Notes which are the subject matter
of this Settlement Agreement, and that he has not assigned said Notes to any
other person, firm, or business entity.

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          8.   Miscellaneous Provisions

               a.   Governing Law. This agreement is executed and intended to be
performed for all legal purposes in the State of California, and the laws of
that state shall govern its interpretation.

               b.   Severability. In the event any term, provision, covenant, or
condition of this agreement is held to be unenforceable or invalid by any court
of competent jurisdiction, the validity and enforceability of the remaining
provisions, or portions thereof, shall not be affected, impaired, or
invalidated.

               c.   Affect of Headings. The headings of the paragraphs and
subparagraphs of this agreement are included for purposes of convenience only
and they shall not affect the construction or interpretation of any of its
provisions.

               d.   Necessary Acts. Each party, upon the request of the other,
agrees to perform any further acts and to execute and deliver any documents
which may be reasonably necessary to carry out the provisions of this agreement.

               e.   Entire Agreement. This agreement contains the entire
understanding between the parties hereto concerning the subject matter contained
herein. There are no representations, agreements, arrangements, or
understandings, oral or written, between or among the parties hereto relating to
the subject matter of this agreement which are not fully expressed herein.

               f.   Amendment. Any amendment or modification of this agreement
shall be deemed to be null and void unless such amendment or modification is in
writing and signed by all parties to this agreement.

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               g.   Attorney's Fees. In the event of a breach of the terms and
conditions of this agreement, the prevailing party in any legal or equitable
action shall be entitled to reasonable attorney's fees and court costs.

               h.   Counterparts. This agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall be deemed to be one and the same instrument.

          Executed on the date first hereinabove set forth.

                                       PLAINTIFF:

                                       /s/ Roger Saville
                                       ---------------------------
                                       ROGER SAVILLE

                                       DEFENDANTS:

                                       ADC DATA COMMUNICATIONS, INC.,
                                       a Delaware Corporation, by:

                                       /s/ Walter J. Kane
                                       ---------------------------
                                       WALTER J. KANE
                                       President

                                       /s/ Barry K. Sugden, Jr.
                                       ---------------------------
                                       Secretary

                                       /s/ Walter J. Kane
                                       ---------------------------
                                       WALTER J. KANE, Individually

                                       6
<PAGE>

Approved:

                                    JOHN G. BRADSHAW
                                    A Professional Law Corporation, by:

                                    [unsigned]
                                    --------------------------------
                                    JOHN G. BRADSHAW
                                    Attorney for ROGER SAVILLE

                                    DARLING & ROBERTSON, LLP, by:

                                    /s/ Jon R. Robertson
                                    -------------------------
                                    JON R. ROBERTSON
                                    Attorney for APPLIED DATA COMMUNICATIONS,
                                    INC.
                                    and WALTER J. KANE

                                       7
<PAGE>

JOHN G. BRADSHAW
A PROFESSIONAL LAW CORPORATION
SUITE 800
3 IMPERIAL PROMENADE
SANTA ANA, CALIFORNIA 92707
(714) 641-1690    FAX (714) 641-1780

STATE BAR NO. 37814

ATTORNEY FOR PLAINTIFF

                SUPERIOR COURT OF CALIFORNIA, COUNTY OF ORANGE

                            CENTRAL JUSTICE CENTER

PLAINTIFF: ROGER SAVILLE                                  NO. OOCC15340

                                                          STIPULATED
                                                          JUDGMENT
                             vs.

Defendant: APPLIED DATA COMMUNICATIONS,
           INC., et al.

     Plaintiff, ROGER SAVILLE, and defendant, APPLIED DATA COMMUNICAITONS, INC.
stipulate as follows:

     1.   Plaintiff shall have judgment against defendant, APPLIED DATA
COMMUNICATIONS, INC., in the sum of $680,769.00, and costs in the sum of
$258.00. Interest on the judgment shall accrue at the rate of ten percent (10%)
per annum from and after June 1, 2001.

     2.   This judgment may be entered by ex parte application by plaintiff or
the attorney for plaintiff upon presentation to the court of this Stipulated
Judgment and an affidavit duly executed by plaintiff that plaintiff has
performed all terms and conditions of the Settlement Agreement on file in this
action.

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                              STIPULATED JUDGMENT
<PAGE>

      Dated:______________________________________, 2001.

                                       PLAINTIFF:

                                       /s/ Roger Saville
                                       ----------------------------
                                       ROGER SAVILLE

                                       DEFENDANT:

                                       APPLIED DATA COMMUNICATIONS, INC.,
                                       a Delaware Corporation, by:

                                       /s/ Walter J. Kane
                                       ----------------------------
                                       WALTER J. KANE
                                       President

                                       /s/ Barry K. Sugden, Jr.
                                       ----------------------------
                                       Secretary

Approved:

                                    JOHN G. BRADSHAW
                                    A Professional Law Corporation, by:

                                    [unsigned]
                                    ----------------------------     -----
                                    JOHN G. BRADSHAW
                                    Attorney for Plaintiff, ROGER SAVILLE

                                        2
                             STIPULATED JUDGMENT
<PAGE>

                                    DARLING & ROBERTSON, LLP, by:

                                    /s/ Jon R. Robertson
                                    ----------------------------
                                    JON R. ROBERTSON
                                    Attorney for Defendant,
                                    APPLIED DATA COMMUNICATIONS, INC.

                                       ORDER

     Judgment, as set forth hereinabove, is hereby entered.

     Dated:_______________________________________

                                   [unsigned]
                                   --------------------------------------
                                   JUDGE OF THE SUPERIOR COURT

                              STIPULATED JUDGMENT

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