Document:

f10q0610ex4_entertainart.htm

EXHIBIT 4.4

 

Entertainment Art Inc.

 

571 Washington Street

West Hempstead, New York 11552

 

  

Phone:   (516) 333-8034

 

PROMISSORY NOTE

 

	 July 30, 2010 	 	 $10,000

 

 

Entertainment Art Inc., a Corporation under the laws of Nevada (“Issuer”), hereby promises to pay to the order of Camal Group SA, a Corporation under the laws of Panama (“Noteholder”) the principal sum of ten thousand ($10,000) or, if less, the aggregate unpaid principal amount outstanding on the Maturity Date, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, plus interest accrued thereon at the rate of 9% per annum. The principal and accrued interest hereunder shall, at the election of the Noteholder, become immediately due and payable in full five (5) days after Noteholder demands payment from Issuer (the "Maturity Date").

 

The outstanding principal sum due hereunder may be prepaid by the Issuer at any time without penalty or premium.

 

In case one or more of the following events (each, an “Event of Default”) (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing:

 

(a)           default in the payment of all or any part of the principal of any of this Note as and when the same shall become due and payable in accordance with the terms hereof or otherwise; or

(b)           Issuer pursuant to or within the meaning of any bankruptcy law:

  (i)           commences a voluntary case or proceeding,

 (ii)           consents to the entry of an order for relief against it in an involuntary case or proceeding,

(iii)           consents to the appointment of a custodian of it or for all or substantially all of its property,

(iv)           makes a general assignment for the benefit of its creditors, or

 (v)           admits in writing its inability to pay its debts as the same become due; 

or

(c)           a court of competent jurisdiction enters an order or decree under any bankruptcy law that:

  (i)           is for relief against Issuer in an involuntary case,

 (ii)           appoints a custodian of Issuer or for all or substantially all of the property of Issuer, or

(iii)           orders the liquidation of Issuer,

and such order or decree remains unstayed and in effect for 30 days;

 

 

  

  

  

 

 

then, in each case where an Event of Default occurs, the Noteholder, by notice in writing to Issuer (the “Acceleration Notice”), may, at its option, declare the outstanding principal hereunder to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.

 

No right or remedy herein conferred upon or reserved to the Noteholder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

This Note shall be governed by and be construed in accordance with the laws of the State of New York without regard to the conflicts of law rules of such state.  The Issuer hereby irrevocably and unconditionally submits, for itself and its property, to the jurisdiction of the courts sitting in New York, and any appellate court from any thereof, in respect of actions brought against it as a defendant, in any action, suit or proceeding arising out of or relating to this Note, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action, suit or proceeding may be heard and determined in such courts.  Each of the parties hereto agrees that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Issuer hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any action, suit or proceeding arising out of or relating to this Note, or in any court referred to above.  Issuer further hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action, suit proceeding in any such court and waives any other right to which it may be entitled on account of its place of residence or domicile.

 

Issuer hereby waives presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note, except as specifically provided herein, and assent to extensions of the time of payment, or forbearance or other indulgence without notice.

 

 

IN WITNESS WHEREOF, Issuer has caused this Promissory Note to be duly executed as of the date first set forth above.

 

 

	
ENTERTAINMENT ART, INC.

	  
	
By: /s/ Joseph Koegel

	
Name: Joseph Koegel

	
Title: President and Chief Executive Officer, Chairman, and Director (Principal Executive Officer)f10q0610ex10i_paneltech.htm

Exhibit 10.1

	 CHANGE IN TERMS AGREEMENT	 Anchor Mutual Savings Bank
	 	 215 E Market, PO Box 348
	 	 Aberdeen, Washington 98520 
	 	
 (360)532-6222

 

 

	
LOAN NUMBER

	
ORIGINAL PRINCIPAL

	
CURRENT PRINCIPAL

	
ORIGINAL AGREEMENT

	
AGREEMENT CHANGE

	  	
BALANCE

	
BALANCE

	
DATE

	
DATE

	
720319491

	
$1,819,000.00

	
$544,514.00

	
November 18, 2008

	
June 30, 2010

	
DESCRIPTION OF THE EXISTING DEBT ("Existing Debt")

	
Promissory Note from Borrower to Lender dated November 18, 2008 in the Original Principal amount of One Million Eight Hundred Nineteen Thousand Dollars and 00/100 ($1,819,000.00), a Change in Terms dated 9/16/2009, 12/28/2009 and 1/21/2010 with a current outstanding Principal Balance of Five Hundred Forty-Four Thousand Five Hundred Fourteen Dollars and 00/100 ($544,514.00).

 

	
 

	
 

 

BORROWER INFORMATION

 

Paneltech Products, Inc. 

2999 John Stevens Way 

Hoquiam, WA 98550

 

 

BORROWER. The term "Borrower" means each party identified above.

 

LENDER. The term "Lender" means Anchor Mutual Savings Bank whose address is 215 E Market, PO Box 348, Aberdeen, Washington 98520 , its successors and assigns.

 

COLLATERAL. The following items are the security documents related to this Agreement:

 

	
    ●

	
Security Agreement dated June 30, 2010 evidencing security interest in UCC-1 filing on a new equipment to be purchased for this loan request and any other available equipment not previously filed on. Once Detailed equipment information is obtained during the purchase and installation phase a UCC-1 and UCC-3 filing with details on equipment will be filed on Equipment;.

 

TERMS AND PROVISIONS. In consideration of the promises contained in this Agreement and in the instruments evidencing the Existing Debt, and of other good and valuable consideration, the sufficiency of which is acknowledged by the execution of this Agreement, Borrower agrees to the following provisions:

 

	
1.  

	
The instrument evidencing the Existing Debt is modified and supplemented as follows:

Borrower and Lender agree to extend the conversion to permanent financing to 10/1/2010.

 

All terms (except those modified by the agreement) of the original note and the mortgage (if applicable) remain intact.

 

	
2.  

	
Ratification and Continued Validity. Except for the terms expressly modified by this Agreement, by signing this Agreement Borrower acknowledges that Borrower is still bound by the terms of the instruments and prior modifications, extensions, and supplements evidencing the Existing Debt as if they were fully set forth and repeated in this Agreement and that those terms will continue to bind Borrower as provided in this Agreement and those instruments. Lender's consent to this Agreement does not waive the right to strictly enforce Lender's rights under this Agreement or the instruments evidencing the Existing Debt. Lender's consent to this Agreement does not mean that Lender must enter into another agreement like this one in the future. Lender and Borrower intend that this Agreement does not replace the Existing Debt but restates it as modified.

 

	
3.  

	
Others Responsible for the Debt. Lender and Borrower intend that anyone else who is liable for the Existing Debt, including, without limitation, cosigners, guarantors, and coborrowers, are not relieved of any obligation except as expressly relieved in this Agreement or other writing. Borrower agrees that the liability of each person who signed the instruments evidencing the Existing Debt, whether primary or secondary, continues in full force and effect, even if that person does not sign this Agreement. This promise applies not only to this Agreement but also to any extension, modification, or other agreement Borrower makes with Lender that represents a debt which includes cosigners, guarantors, coborrowers, and others having similar liability. Borrower understands that this Agreement is contingent on the continued liability of each person who signed the documents evidencing the Existing Debt, whether or not that person signs this Agreement.

 

	
4.  

	
Pronouns and Gender. In this Agreement, whenever the circumstances or the context so requires, the singular shall be construed as the plural, the masculine shall be construed as the feminine and/or the neuter and vice versa.

 

	
5.  

	
 Miscellaneous Terms. Borrower agrees that if Lender delays or forgoes enforcing Lender's rights under this Agreement in any particular instance, Lender retains the right to strictly enforce the same provision in any other instance, or later in the same instance. Every person signing this Agreement waives, to the extent allowed by law, presentment, demand, protest, and notice of dishonor. Every person signing this Agreement agrees that Lender may renew, extend, supplement, or otherwise modify the debt represented by this Agreement and the documents evidencing the Existing Debt without the permission of any other person who is liable, and such modification will not release or reduce the liability of any party, even if that party does not sign this Agreement.

 

  

1

  

 

ORAL AGREEMENTS DISCLAIMER. Oral agreements or oral commitments to loan money, extend credit, or to forbear from enforcing repayment of a debt are not enforceable under Washington law.

 

By signing this Change In Terms Agreement, each Borrower acknowledges reading, understanding, and agreeing to all its provisions, and receiving a copy.

 

Paneltech Products, Inc.

 

	 /s/ Scott Olmstead	 	
 /s/ Leroy Nott

	 By: Scott Olmstead   	 Date	 	 By: Leroy Nott	  Date
	 Its: Secretary	 	 	 Its: President	 

 

By signing this Change In Terms Agreement, Lender acknowledges reading, understanding, and agreeing to all its provisions. 

 

Anchor Mutual Savings Bank

 

	 /s/ Jami Hanson	 	 
	
 By: Jami Hanson

	 Date	 	 	 
	 Its: GH Business Banking Officer	 	 

 

 

2

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