Promissory Note - EarthShell Container Corp. and E. Khashoggi Industries
PROMISSORY NOTE
$864,440 April 30, 1996
FOR VALUE RECEIVED, the undersigned promises to pay to E. Khashoggi Industries
or order, the principal amount of Eight Hundred Sixty-Four Thousand Four Hundred
Forty Dollars ($864,440), 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 published in the Wall Street Journal on April 30, 1996, on the
unpaid balance, payable:
On Demand
in lawful money of the United States of America, negotiable and payable 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). 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 US money center banks. Interest shall be compounded and paid at the
last day of each calendar quarter commencing on June 30, 1996. The unpaid
principal balance shall be payable upon demand and in all events any unpaid
principal and all accrued but unpaid interest shall be due and payable on June
30, 1999. Unless otherwise provided herein, all payments hereunder shall be
applied first to accrued interest and balance to reduction of principal. Any
portion of principal or interest not paid upon demand 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 by law, with
accrued interest and costs, including reasonable attorney's fees.
The makers can pay this Note in part or in full without penalty.
The makers and endorsers severally waive presentment, protest and demand; and
waive notice of protest, demand and of dishonor and non-payment of this note,
and expressly agree that this note, or any payment thereunder, may be extended
from time to time without in any way effecting the liability of the makers and
endorsers thereof.
EARTHSHELL CONTAINER CORPORATION:
_________________________________
Richard K. Hulme
Executive Vice President and Chief Operating Officer
ATTEST:
_________________________________
Scott Houston
Chief Financial Officer
EXHIBIT 10.7