Document:

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                                                                    EXHIBIT 10.3

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT BE
OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, OR OTHERWISE DISPOSED OF UNLESS
REGISTERED PURSUANT TO THE PROVISIONS OF SUCH ACT AND BLUE SKY LAWS OR AN
EXEMPTION THEREFROM IS AVAILABLE AS ESTABLISHED BY A WRITTEN OPINION OF COUNSEL
ACCEPTABLE TO THE MAKER.

                                 SMARTGATE INC.

                                 PROMISSORY NOTE

$212,680                                                       Sarasota, Florida
                                                               February 25, 2002

        FOR VALUE RECEIVED, the undersigned, SmartGate Inc., a Nevada
corporation (the "Maker"), promises to pay to the order of Stephen A. Michael
(the "Payee") the principal sum of Two Hundred Twelve Thousand Six Hundred
Eighty ($212,680) Dollars plus interest in the amount specified below. The
principal sum of Two Hundred Twelve Thousand Six Hundred Eighty ($212,680)
Dollars shall be due and payable in one installment on February 25, 2006. During
the first one hundred eighty (180) days, this Promissory Note shall bear
interest at ten (10%) percent per annum and said interest shall be paid every
thirty (30) days on the last day of each of the first six (6) thirty (30) day
periods of the term of this Promissory Note, and thereafter, the interest for
the balance of the term of this Promissory Note shall be fifteen (15%) percent
per annum and shall be paid every thirty (30) days on the last day of each
thirty (30) day period for the balance of the term of this Promissory Note.

        Interest hereon shall be calculated on the basis of a three hundred
sixty (360) day year applied to the actual number of days elapsed until all
accrued and unpaid interest is paid in full. All payments of principal and
interest hereon shall be payable in lawful currency of the United States.

        If any interest payment or the principal payment is not actually
received by the Payee on or before the due date, the Maker agrees to pay Payee a
late charge equal to a lesser of eighteen (18%) percent per annum or the
highest lawful rate per annum, on the delinquent amount until paid.

        Prepayment of the principal of this Promissory Note is permitted, in
whole or in part, at any time, without premium or penalty of any kind.

        This Promissory Note may not be changed orally, but only by an agreement
in writing signed by the parties against whom enforcement of any waiver, change,
modification or discharge is sought.

        The holder of this Promissory Note and all successors thereof shall have
all the rights of a holder in due course as provided by the Florida Uniform
Commercial Code and the other laws of the state of Florida. Maker hereby waives
demand, presentment, protest, notice of protest and/or dishonor and all other
notices or requirements that might otherwise be required by law. The Maker
promises to pay on demand all costs of collection, including reasonable
attorneys' fees and court costs, paid or incurred by Payee to enforce this
Promissory Note upon an Event of Default (as defined below) hereunder.

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                                                                               2

        The occurrence of any of the following shall constitute an "Event of
Default" under this Promissory Note:

        a. the failure of the Maker to make any payment when due under this
Promissory Note;

        b. the institution of proceedings by or against the Maker under any
state insolvency laws, federal bankruptcy law, or similar debtor relief laws
then in effect.

        Upon an Event of Default which has not been cured within ten (10)
business days from the date of written notice by Payee, Payee may, at Payee's
option and without notice, declare all principal and interest due under this
Promissory Note to be due and payable immediately. Payee may waive any default
before or after it occurs and may restore this Promissory Note in full effect
without impairing the right to declare it due for a subsequent default.

                                        SMARTGATE INC.

CORPORATE
  SEAL                                  By: /s/ EDMUND C. KING
                                           -------------------------------------
                                                Edmund C. King
                                        Its:    Chief Financial Officer and
                                                Independent Committee Member

<PAGE>

                    FILING SCHEDULE PURSUANT TO PARAGRAPH 2.
   INSTRUCTIONS TO ITEM 601 UNDER SECTION 229.601 EXHIBITS OF REGULATION S-K

        Promissory Notes, substantially identical in all material respects
except for the names of the Payees and the amounts of the principal sums under
the Notes were delivered by the Maker to the following Payees:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
PAYEES                                                          PRINCIPAL SUM
---------------------------------------------------------------------------------------
<S>                                                             <C>
Spencer Charles Duffey Irrevocable Trust Under                     $106,340
Agreement Dated 7/29/98
---------------------------------------------------------------------------------------
Elizabeth Rosemary Duffey Irrevocable Trust Under                  $106,340
Agreement Dated 7/29/98
---------------------------------------------------------------------------------------
Robert T. Roth                                                     $ 50,334
---------------------------------------------------------------------------------------
William W. Dolan                                                   $ 24,306
---------------------------------------------------------------------------------------
</TABLE><PAGE>

                                                                    EXHIBIT 10.4

                           [SMARTGATE INC. LETTERHEAD]

January 16, 2002

Mr. Frank N. Hawkins, Jr.
Chairman and CEO
Hawk Associates, Inc.
204 Ocean Drive
Tavernier, Florida 33070

Dear Frank:

        This is to confirm that SmartGate Inc. accepts your proposal whereby you
will provide a full service program of appropriate investor relations and
financial public relations support for SmartGate Inc. The initial 6 1/2 month
agreement will be for the period beginning January 16, 2002 and ending July 30,
2002 ("Initial Period"), provided however, SmartGate Inc. shall have the right
to terminate this agreement at any time during the Initial Period upon ten days
notice if SmartGate Inc., in its reasonable judgment, determines that Hawk
Associates Inc.: is not putting forth a reasonable commercial effort on behalf
of SmartGate Inc.; or is not acting with appropriate integrity; or is not
following SmartGate Inc.'s instructions. Following the Initial Period, the
relationship between SmartGate Inc. and Hawk Associates Inc. will be an
open-ended 30-day notice agreement and either party shall have the right to
terminate this agreement with 30 days notice.

        During the term of this engagement and until this engagement is
terminated as provided herein, SmartGate Inc. agrees to pay Hawk Associates
Inc. a retainer fee of $6,600 per month, paid monthly at the beginning of each
month. An initial retainer for the last two weeks of January 2002 (and basic
expenses for those two weeks), and for the month of February 2002 (and basic
expenses for that month) shall be paid upon the signing of this letter of
engagement.

        In addition, Hawk Associates Inc. will be granted an option to purchase
50,000 shares of SmartGate Inc. common stock at $7.25 per share which is the
current trading price of the stock on today's date ("Option"). The Option may be
exercised for a period of seven years from today's date. The Option is subject
to a vesting schedule over a 24-month period from today's date where 6,250
shares shall be released and become eligible for purchase at the end of each
quarterly (i.e. three-month) period during the 24-month vesting term provided
this engagement has remained in effect at the end of the quarterly period then
in effect as set forth below ("Vesting Condition"); to wit:

    -   the first 6,250 shares would vest and be eligible for purchase on April
        15, 2002 if the Vesting Condition was met for that quarter;

<PAGE>

Mr. Frank N. Hawkins, Jr.
January 16, 2002
Page Two

    -   the next 6,250 shares would vest and be eligible for purchase on July
        l5, 2002 if the Vesting Condition was met for that quarter;

    -   the next 6,250 shares would vest and be eligible for purchase on October
        15, 2002 if the Vesting Condition was met for that quarter;

    -   the next 6,250 shares would vest and be eligible for purchase on January
        15, 2003 if the Vesting Condition was met for that quarter;

    -   the next 6,250 shares would vest and be eligible for purchase on April
        15, 2003 if the Vesting Condition was met for that quarter;

    -   the next 6,250 shares would vest and be eligible for purchase on July
        15, 2003 if the Vesting Condition was met for that quarter;

    -   the next 6,250 shares would vest and be eligible for purchase on October
        15, 2003 if the Vesting Condition was met for that quarter;

    -   the next 6,250 shares would vest and be eligible for purchase on January
        15, 2004 if the Vesting Condition was met for that quarter;

        All other terms and conditions of the Option will be set forth in the
formal option agreement. The Option and vesting schedule thereunder shall have
no effect upon (nor alter) SmartGate Inc.'s early termination rights during the
Initial Period or upon (nor alter) this being an open-ended 30-day notice
agreement following the Initial Period and each party having the right
thereafter to terminate this engagement relationship with 30 days notice. If
this engagement is terminated by either party during the Option's vesting
period, Hawk Associates Inc. will be entitled, under the Option, to purchase
only those shares that have vested through the date of termination.

        Normal out-of-pocket operating expenses incurred by Hawk Associates Inc.
on behalf of SmartGate Inc. will be billed together with the monthly retainer.
Routine costs for telephones, postage, faxes, printing and FedEx packages, which
are invoiced in aggregate, will run $400 per month. Printing and postage/mailing
costs associated with major mail-outs or any fulfillment program as well as
travel costs will be additional.

        Third party vendor expenses such as design fees, printing costs and
related materials, database acquisitions, PR Newswire fees, conference calls and
special promotions will be billed directly to SmartGate Inc. by the vendors. It
is mutually agreed that Hawk Associates Inc. will not benefit financially from a
markup of these services.

<PAGE>

Mr. Frank N. Hawkins, Jr.
January 16, 2002
Page Three

        All proprietary information furnished to Hawk Associates Inc. by
SmartGate Inc., or on SmartGate Inc.'s behalf, shall be deemed to be
confidential and shall be kept in strict confidence under appropriate
safeguards. SmartGate Inc. agrees that the Hawk Associates Inc. website and
profiles are protected by applicable copyright laws and will not be copied or
otherwise used by SmartGate Inc. without Hawk Associates Inc.'s written
permission.

        It is agreed that any capital sourcing or fund raising activity by Hawk
Associates Inc. on behalf of SmartGate Inc. will be covered by a separate
agreement.

        Enclosed is a check for the amount of $10,500 covering the retainer and
expense fees for January 16, 2002 through February 28, 2002.

Sincerely,

/s/ STEPHEN A. MICHAEL

Stephen A. Michael, President

Accepted by Hawk Associates, Inc.

/s/ [ILLEGIBLE]
-------------------------

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