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EXHIBIT 10(1)
REVOLVING DEMAND NOTE
("Note")
$40, 000.00 December 18, 1987
Beverly Hills, California
On demand, or if no demand is made then on December 18, 1989
("Maturity Date" herein), for value received, the undersigned ("Maker" or
"Payor" herein) promise(s) to pay to the order of LEONARD M. ROSS, a California
resident ("Holder" or "Payee" herein), at Beverly Hills, California, or at such
other address as is designated by Holder, the sum of FORTY THOUSAND DOLLARS
($40,000.00), or so much thereof as may be outstanding hereunder, together with
interest thereon from and after the date hereof on the unpaid principal at the
rate of NINE PER CENT (9%) per year (computed on the basis of a 360-day year
for the actual number of days elapsed from the date set forth until paid).
Interest shall be payable on or before the Maturity Date. Principal and
interest shall be payable only in lawful money of the United States of America.
All or any portion of the principal of this Note may be borrowed,
repaid and reborrowed from time to time prior to the Maturity Date, provided
that at the time of any borrowing no default exists, and provided further that
the total borrowings outstanding hereunder at any one time shall not exceed $.
Each borrowing and repayment hereunder will be endorsed on the reverse of this
Note. The excess of borrowings over repayments shall evidence the principal
balance due hereon from time to time and at any time. Any loan hereunder shall
be conclusively presumed to have been made to or for the benefit of the
undersigned when made in accordance with such request.
Each of the following events shall constitute an "Event of Default"
(collectively "Events of Default") under this Note:
(1) The failure of the undersigned to pay any installment
of principal or interest on this Note when the same becomes due and payable.
(2) The undersigned shall make an assignment for the
benefit of creditors.
(3) The undersigned shall petition or apply to any
tribunal for appointment of a trustee or receiver of the undersigned or
commence any proceeding relating to the undersigned under any bankruptcy or
reorganization statute or any provision of the Bankruptcy Act, or under any
arrangement, insolvency, readjustment or debt, dissolution or liquidation law
of any jurisdiction, whether now or hereafter in effect.
(4) Any petition or application of the type described
above is filed or any proceedings of the type described in subparagraph (3),
above, are commenced against the undersigned, and the undersigned by any act
indicates its approval thereof, consent thereto or
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acquiescence therein, or an order is entered appointing any such trustee or
receiver, or adjudicating the undersigned bankrupt or insolvent, or approving
the petition in any such proceeding, and any such order remains in effect for
more than sixty (60) days.
Should any Event, of Default occur, the Payee of this Note may, if
such Event of Default is not cured within five (5) days after receipt by Payor
of written notice from Payee of such Event of Default (which receipt shall be
deemed to have occurred THREE (3) DAYS after deposit of said written notice in
the United States mail, certified, return receipt requested, postage and fees
prepaid, addressed to Payor at the address set forth below), declare the whole
sum of principal and interest to be, and thereafter the whole sum of principal
and interest shall forthwith become, due and payable. Should principal or
interest not be paid on the agreed or accelerated date of maturity, then the
interest rate provided for under this Note shall, without notice, be increased
to an amount TWO PER CENT (28) per year over and above the rate originally
contracted for, effective from the day following the date that such payment of
principal or interest became overdue, with such unpaid interest compounded; but
in no event shall the interest payable hereunder exceed the maximum rate
permitted by law. Such increased rate of interest shall continue until such
overdue payment of principal and interest shall be been paid in full. The
failure to exercise, in case of one or more Events of Default, any right or
remedy given in this paragraph shall not preclude the Payee of this Note from
exercising any right or remedy given in this paragraph in case of one or more
subsequent Events of Default.
All or any portion of principal or interest, or both, of this Note may
be prepaid, in whole or in part, at any time or from time to time, without
penalty or premium.
In the event this Note is not paid on the agreed or accelerated date
of maturity according to its terms, Maker promise(s) to pay all costs of
collect-ion of this Note and reasonable attorneys' fees in connection
therewith, whether or not suit is filed hereon. The makers and endorsers of
this Note hereby waive diligence, demand, presentment, protest and notice of
any kind. If this Note is executed by two or more makers, the obligations and
liability of the undersigned shall be joint and several.
This Note shall be binding upon Maker and the heirs, successors and assigns of
Maker, and shall inure to the benefit of Holder, its heirs, successors and
assigns.
Address: JILCO INDUSTRIES, INC.
P. O. Box 10539
Beverly Hills, CA 90213
By /s/ Byron Wayne
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Byron Wayne, President
"Payor/Maker"
[Revolving Demand Note to JILCO INDUSTRIES, INC. December 18, 1987 in the
original principal amount of $40,000.00.]
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