Promissory Note - 8x8 Inc. and Bryan R. Martin
LOGO 8x8, INC.
PROMISSORY NOTE
$80,200 Santa Clara, California
June 29, 1996
FOR VALUE RECEIVED, /s/ Bryan R. Martin promises to pay to 8x8, Inc., a
California corporation (the "Company"), or order, the principal sum of Eighty
thousand two hundred ($80,200 ), together with interest on the unpaid principal
hereof from the date hereof at the rate of six and four tenths percent (6.4%)
per annum, compounded semiannually and paid when the principal is due.
Principal and any accrued but unpaid interest shall be due and payable
five (5) years from the date of this Note. Should the undersigned fail to make
full payment of principal or interest for a period of 10 days or more after the
due date thereof, the whole unpaid balance on this Note of principal and
interest shall become immediately due at the option of the holder of this Note.
Payments of principal and interest shall be made in lawful money of the United
States of America. Payments shall be applied first to interest, then to
principal.
The undersigned may at any time prepay all or any portion of the
principal or interest owing hereunder.
This note is subject to the terms of the Stock Purchase Agreement dated
as of this same date. This Note is secured by a pledge of the Company's Common
Stock under the terms of a Security Agreement of even date herewith and is
subject to all the provisions thereof.
The holder of this Note shall have full recourse against the
undersigned to the extent of one tenth (1/10) of the face amount of the Note
plus any accrued but unpaid interest, and shall be required to proceed against
the collateral securing this Note in the event of default before proceeding
against the undersigned. Thus one-tenth of the principal is personal recourse
and all interest is personal recourse.
In the event that undersigned shall cease to be an employee, director
or consultant of the Company for any reason, this Note shall at the option of
the Company, be accelerated, and the whole unpaid balance on this Note of
principal and accrued interest shall be immediately due and payable thirty days
after ceasing to be an employee, director or consultant or one year if
termination is due to death or disability. In any event, this note is due and
payable before the undersigned transfers the stock; provided that as a
proportionate amount of the principal is paid, a proportionate amount of the
stock securing this Note will be released from the pledge and then be free of
any lien related to this note.
This Note is governed by the laws of California.
/s/ Bryan R. Martin
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Bryan R. Martin
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