Promissory Note - EarthShell Container Corp. and E. Khashoggi Industries
DEMAND PROMISSORY NOTE
$27,214,890 June 30, 1997
FOR VALUE RECEIVED AND FOR THE PURPOSE OF CONSOLIDATING THE INDEBTEDNESS LISTED
ON THE ATTACHED EXHIBIT B, the undersigned promises to pay to E. Khashoggi
Industries or order, the principal amount of Twenty-Seven Million Two Hundred
Fourteen Thousand Eight Hundred Ninety Dollars ($27,214,890), together with
interest from date hereof at the initial rate of Eight and One-Half percent
(8.0%) per annum which represents the Prime Rate (as defined below) on June
30, 1997, 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, 1997. 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 quarterly and paid at the last day
of each calendar quarter commencing on June 30, 1997. 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, 2000. 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 waive presentment, protest and demand; and waive
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 B, marked "canceled".
EARTHSHELL CONTAINER CORPORATION:
/s/ Simon K. Hodson
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Simon K. Hodson
Chief Executive Officer
ATTEST:
/s/Scott Houston
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Scott Houston
Chief Financial Officer