Document:

COMPANY SECURITY AGREEMENT

Date: July 8, 1998

The undersigned (herein referred to as "Debtor") hereby
agrees in favor of Paul Hentschl, or his lawful assigns (herein
referred to as "Secured Party"), as follows:

1.  In consideration of the delivery of a Promissory Note
dated July 8, 1998, in the principal amount of Three Hundred Ninety
Eight Thousand Two Hundred Thirty Dollars ($398,230), Debtor hereby
grants to Secured Party a continuing security interest in, and
Debtor hereby assigns to Secured Party the Collateral described in
Exhibit A hereto, to secure the payment, performance and observance
of the obligations of Debtor under the Promissory Note (the
foregoing being herein referred to as the "Obligations").

2.  Debtor warrants, represents and covenants that:  (a)
the chief executive office and other places of business of Debtor,
the books and records relating to the Collateral and the Collateral
are, and will continue to be located at the address set forth below
and Debtor will not change any of the same without prior written
notice to and consent of Secured Party; (b) the Collateral is now,
and at all times will be, owned by Debtor free and clear of all
liens, security interest, claims and encumbrances, unless previously
disclosed to Secured Party;  (c) Debtor will not assign, sell,
mortgage, lease, transfer, pledge, grant a security interest in or
lien upon, encumber, or otherwise dispose of or abandon, nor will
Debtor suffer or permit any of the same to occur with respect to,
any part or all of the Collateral, without prior written notice to
Secured Party; (d) Debtor has made, and will continue to make
payment or deposit or otherwise provide for the payment, when due,
of all taxes, assessments or contributions required by law which
have been or may be levied or assessed against Debtor with respect
to any of the Collateral; (e) Secured Party shall at all times have
free access to and right of inspection of the Collateral and any
records pertaining thereto; (f) at any time and from time to time,
Debtor shall, at its sole cost and expense, execute and deliver to
Secured Party such financing statements pursuant to the Uniform
Commercial Code ("UCC"), applications for certificate of title and
other papers, documents or instruments as may be requested by
Secured Party in connection with this Security Agreement, and Debtor
hereby authorizes Secured Party to execute and file at any time and
from time to time one or more financing statements or copies thereof
of this Security Agreement with respect to the Collateral signed
only by Secured Party.

3.  Each of the following events shall constitute an
event of default ("Default") under this Security Agreement: (a)
Debtor shall default in the punctual payment of any sum payable with
respect to, or in the observance or performance of any of the terms
and conditions of any Obligations;  (b) the making or filing of any
lien, levy, or execution on or seizure, attachment of or garnishment
of, any Collateral; (c) Debtor shall become insolvent or commit an
act of bankruptcy or make an assignment for the benefit of
creditors; (d) there shall be filed by or against any Obligor any
petition for any relief under the bankruptcy laws of the United
States now or hereafter in effect; (e) the usual business of Debtor
shall be terminated or suspended.

4.  Upon the occurrence of any Default and at any time
thereafter, Secured Party may, without notice to or demand upon
Debtor, declare any Obligations immediately due and payable and

<PAGE>

Secured Party shall have all rights and remedies of a secured party
under the UCC.

5.  Debtor hereby releases Secured Party from any claims,
causes of action and demands at any time arising out of or with
respect to this Security Agreement, the Obligations, the Collateral
and its use and/or actions taken or omitted to be taken by Secured
Party with respect thereto, and Debtor hereby agrees to hold Secured
Party harmless from and with respect to any and all such claims,
causes of action and demands.  No act, omission or delay by Secured
Party shall constitute a waiver of its rights and remedies hereunder
or otherwise.  Debtor hereby waives presentment, notice of dishonor
and protest of all instruments included in or evidencing any
Obligations or Collateral, and all other notices and demands
whatsoever (except as expressly provided herein.)  No provision
hereof shall be modified, altered or limited except by a written
instrument expressly referring to this Security Agreement and to
such provision, and executed by the party to be charged.  This
Security Agreement and all Obligations shall be binding upon the
heirs, executors, administrators, successors, or assigns of Debtor
and shall, together with the rights and remedies of Secured Party
hereunder, inure to the benefit of Secured Party, its successors,
endorses and assigns.  This Security Agreement and the Obligations
shall be governed in all respects by the laws of the State of
California applicable to contracts executed and to be performed in
such State.  If any term of this Security Agreement shall be held to
be invalid, illegal or unenforceable, the validity of all other
terms hereof shall in no way be affected thereby.

IN WITNESS WHEREOF, the undersigned has executed or caused
this Security Agreement to be executed as of the date first above
set forth.

"Debtor"                                     Address:

AMS ACQUISITION CORP.                        5681 Beach Boulevard, Suite 101
                                             Buena Park, CA 90621

By:    /s/Joseph Naughton
Its:   President

"Secured Party"                              13939 Barrymore
                                             San Diego, CA 92129
/s/Paul Hentschl
Paul Hentschl

<PAGE>

                                     EXHIBIT A

                       PROPERTY SUBJECT TO SECURITY INTEREST

With respect to AMS Acquisition Corp. (the "Company"), the
Collateral includes (i) all equipment, machinery, vehicles,
furniture, tools, dies, jigs, and fixtures, and all attachments,
accessions and equipment now or hereafter affixed thereto or used in
connection therewith, and all substitutions and replacements
thereof, wherever located, whether now owned or hereafter acquired
(the "Equipment"); (ii) all raw materials, work in process, finished
goods, and all other inventory (as defined in the Uniform Commercial
Code) of whatsoever kind or nature, and all wrapping, packaging,
advertising and shipping materials, and any documents relating
thereto, and all labels and other devices, names or marks affixed or
to be affixed thereto for purposes of selling or of identifying the
same or the seller or manufacturer thereof and all of the Company's
right, title and interest therein and thereto, wherever located,
whether now owned or hereafter acquired (the "Inventory"); (iii) all
present and future accounts, contract rights, chattel paper,
documents, instruments, trademarks, trade names, service names and
general intangibles, whether now owned or hereafter acquired, the
Company's interest in the goods represented thereby or described in
copies of invoices delivered to the Company; all returned, reclaimed
or repossessed goods with respect thereto; all rights and remedies
of Debtor under or in connection with such collateral (the
"Accounts"); (iv) all books, records and other property and general
intangibles at any time relating to the Equipment, Inventory and
Accounts ("Records"); and (v) all products and proceeds of the
foregoing, in any form, including without limitation, any claims
against third parties for loss or damage to or destruction of any or
all of the Equipment, Inventory and Accounts (the "Proceeds").THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT") OR ANY APPLICABLE STATE SECURITIES
LAW AND MAY NOT BE TRANSFERRED UNLESS (I) THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH APPLICABLE
SECURITIES LAWS, OR (II) IN THE OPINION OF COUNSEL REASONABLY
ACCEPTABLE TO THE COMPANY REGISTRATION UNDER THE SECURITIES ACT OR
SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION
WITH SUCH TRANSFER.

                             AMS ACQUISITION CORP.
                            SECURED PROMISSORY NOTE

$398,230.00                                          Buena Park,
California                                           July 8, 1998

FOR VALUE RECEIVED, the undersigned, AMS Acquisition Corp., a
Nevada corporation (the "Company"), hereby promises to pay to the
order of Paul Hentschl, or his lawful assigns (the "Purchaser"), in
lawful money of the United States of America, and in immediately
available funds, the principal sum of THREE HUNDRED NINETY EIGHT
THOUSAND TWO HUNDRED THIRTY DOLLARS ($398,230.00).  The principal
hereof and any unpaid accrued interest thereon shall be due and
payable on or before 5:00 p.m., Pacific Standard Time, on July 8,
2001 (unless the payment date is accelerated as provided in Section
7 hereof or extended as provided in Section 2 hereof).  Payment of
all amounts due hereunder shall be made at the address of the
Purchaser provided for herein.  The Company further promises to pay
simple interest at the rate of 7.00% percent per annum on the
outstanding principal balance hereof, such interest to be payable
monthly in arrears on the 1st day of each month, commencing August
1, 1998.

1.  SECURITY.  This Note is secured by and entitled to
the benefits of a certain Company Security Agreement (the "Company
Security Agreement") dated as of even date herewith, among the
Company and the Purchaser.

2.  EXTENSION OF MATURITY DATE.  Purchaser shall have the
right, in its sole discretion, to extend the maturity of this Note,
each such extension exercisable only by the Purchaser by delivering
to the Company written notice of such extension at any time prior to
the maturity date then in effect.

3.  TRANSFERABILITY.  Subject to the provisions herein,
this Note shall be freely transferable by the Purchaser provided
such transfer is in compliance with applicable federal and state
securities laws.

4.  DEFAULT.  The occurrence of any one of the following
events shall constitute an Event of Default:

<PAGE>

(a) The non-payment, when due, of any principal or
interest pursuant to this Note;

(b) The material breach of any representation or warranty
in this Note.  In the event the Purchaser becomes aware of a breach
of this Section 4(b), the Purchaser shall notify the Company in
writing of such breach and the Company shall have ten (10) business
days after notice to cure such breach;

(c) The material breach of any covenant or undertaking in
this Note, not otherwise provided for in this Section 4;

(d) The commencement by the Company of any voluntary
proceeding under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, receivership, dissolution, or
liquidation law or statute of any jurisdiction, whether now or
hereafter in effect; or the adjudication of the Company as insolvent
or bankrupt by a decree of a court of competent jurisdiction; or the
petition or application by the Company for, acquiescence in, or
consent by the Company to, the appointment of any receiver or
trustee for the Company or for all or a substantial part of the
property of the Company; or the assignment by the Company for the
benefit of creditors; or the written admission of the Company of its
inability to pay its debts as they mature; or

(e) The commencement against the Company of any
proceeding relating to the Company under any bankruptcy,
reorganization, arrangement, insolvency, adjustment of debt,
receivership, dissolution or liquidation law or statute of any
jurisdiction, whether now or hereafter in effect, provided, however,
that the commencement of such a proceeding shall not constitute an
Event of Default unless the Company consents to the same or admits
in writing the material allegations of same, or said proceeding
shall remain undismissed for 20 days; or the issuance of any order,
judgment or decree for the appointment of a receiver or trustee for
the Company or for all or a substantial part of the property of the
Company, which order, judgment or decree remains undismissed for 20
days; or a warrant of attachment, execution, or similar process
shall be issued against any substantial part of the property of the
Company.

Upon the occurrence of any Default or Event of Default, the
Purchaser may, by written notice to the Company, declare all or any
portion of the unpaid principal amount due to Purchaser immediately
due and payable, in which event it shall immediately be and become
due and payable, provided that upon the occurrence of an Event of
Default as set forth in paragraph (d) or paragraph (e) hereof, all
or any portion of the unpaid principal amount due to Purchaser shall
immediately become due and payable without any such notice.

5.  PREPAYMENT.  The Company may, at its option, at any
time and from time to time, prepay all or any part of the principal
balance of this Note, without penalty or premium, provided that
concurrently with each such prepayment the Company shall pay accrued
interest on the principal so prepaid to the date of such prepayment.

<PAGE>

6.  NOTICES.  All notices provided for in this Note shall
be in writing signed by the party giving such notice, and delivered
personally or sent by overnight courier or messenger or sent by
registered or certified mail (air mail if overseas), return receipt
requested, or by telex, facsimile transmission, telegram or similar
means of communication.  Notices shall be deemed to have been
received on the date of personal delivery, telex, facsimile
transmission, telegram or similar means of communication, or if sent
by overnight courier or messenger, shall be deemed to have been
received on the next delivery day after deposit with the courier or
messenger, or if sent by certified or registered mail, return
receipt requested, shall be deemed to have been received on the
third business day after the date of mailing.  Notices shall be sent
to the addresses set forth below:

If to the Company:

AMS Acquisition Corporation
5681 Beach Boulevard, Suite 101
Buena Park, CA 90621
Attn: Joseph Naughton, Chief Executive Officer
Facsimile No.: (949) 994-3242

With a copy to:

The Law Offices of M. Richard Cutler
610 Newport Center Drive, Suite 800
Newport Beach, CA 92660
Attn: M. Richard Cutler, Esq.
Facsimile No.: (949) 719-1988

If to the Purchaser:

Paul Hentschl
13939 Barrymore
San Diego, CA 92129
Facsimile No.: (    )

With a copy to:

Kennerson Schwartz Semerdjian & Haille LLP
101 West Broadway, Suite 480
San Diego, CA 92101
Attn: John K. Grant, Esq.
Facsimile No.: (619) 236-8827

<PAGE>

7.  CHOICE OF LAW, JURISDICTION.  This Note and the rights of
the parties hereunder shall be governed by and construed in
accordance with the laws of the State of California including all
matters of construction, validity, performance, and enforcement and
without giving effect to the principles of conflict of laws.  The
parties submit to the jurisdiction of the Courts of the State of
California or a Federal Court empaneled in the State of California
for the resolution of all legal disputes arising under the terms of
this Note.

8.  ATTORNEYS' FEES.  Except as otherwise provided
herein, if a dispute should arise between the parties including, but
not limited to arbitration, the prevailing party shall be reimbursed
by the nonprevailing party for all reasonable expenses incurred in
resolving such dispute, including reasonable attorneys' fees
exclusive of such amount of attorneys' fees as shall be a premium
for result or for risk of loss under a contingency fee arrangement.

9.  CONFORMITY WITH LAW.  It is the intention of the
Company and of the Purchaser to conform strictly to applicable usury
and similar laws.  Accordingly, notwithstanding anything to the
contrary in this Note, it is agreed that the aggregate of all
charges which constitute interest under applicable usury and similar
laws that are contracted for, chargeable or receivable under or in
respect of this Note, shall under no circumstances exceed the
maximum amount of interest permitted by such laws, and any excess,
whether occasioned by acceleration or maturity of this Note or
otherwise, shall be canceled automatically, and if theretofore paid,
shall be either refunded to the Company or credited on the Principal
amount of this Note.

IN WITNESS WHEREOF, the Company has signed and sealed this
Note and delivered it in Buena Park, California as of the date first
written above.

AMS ACQUISITION CORP.

/s/Joseph Naughton
By:    Joseph Naughton
Its:   Chief Executive Officer

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