Promissory Note - EarthShell Container Corp. and E. Khashoggi Industries
DEMAND PROMISSORY NOTE
$16,462,122 March 31, 1996
FOR VALUE RECEIVED AND FOR THE PURPOSE OF CONSOLIDATING THE INDEBTEDNESS LISTED
ON THE ATTACHED EXHIBIT A, the undersigned promises to pay to E. Khashoggi
Industries or order, the principal amount of Sixteen Million Four Hundred Sixty-
Two Thousand One Hundred Twenty-Two Dollars ($16,462,122), together with
interest from date hereof at the initial rate of Eight and One-Quarter Percent
(8.25%) per annum which represents the Prime Rate (as defined below) on March
31, 1996, on the unpaid balance, payable in lawful money of the United States of
America at the office of E. Khashoggi Industries without defalcation or
discount. The interest rate shall be adjusted to the Prime Rate in effect on
the first day of each calendar quarter (January 1, April 1, July 1 and October
1), commencing July 1, 1996. The term "Prime Rate" means the highest "Prime
Rate" as published in the Wall Street Journal's "Money Rates" table, which is
described as the base rate on the corporate loans at large U.S. money center
banks. Interest shall be compounded quarterly and paid on the last day of each
calendar quarter commencing on June 30, 1996. The unpaid principal balance, and
any accrued but unpaid interest, shall be payable upon demand and in all events
shall be due and payable on June 30, 1999. Any interest not paid when due shall
be added to the principal balance. Unless otherwise provided herein, all
payments hereunder shall be applied first to accrued interest and the balance to
the reduction of principal. Any portion of principal or interest not paid when
due shall continue to bear interest as stipulated above until paid.
In case of default in the payment of principal or interest hereunder,
proceedings may at once be instituted for the recovery of the same, and the
undersigned agrees to pay all costs of such proceedings and any other costs of
collection, including reasonable attorney's fees.
The undersigned may pay this Note in part or in full without penalty.
The undersigned severally waives presentment, protest and demand; and waives
notice of protest, demand and of dishonor and non-payment of this Note, and
expressly agrees that this Note, or any payment thereunder, may be extended from
time to time without in any way effecting the liability of the undersigned.
Upon due execution and delivery of this Note, E. Khashoggi Industries will
deliver to the undersigned any promissory notes or other written obligations
evidencing the indebtedness listed in the attached Exhibit A, marked "canceled".
EARTHSHELL CONTAINER CORPORATION:
____________________________________________
Richard K. Hulme
Executive Vice President and Chief Operating Officer
ATTEST:
____________________________________________
Scott Houston
Chief Financial Officer