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AMENDED AND RESTATED DEMAND NOTE

Promissory Note

AMENDED AND RESTATED DEMAND NOTE | Document Parties: RUBBER RESEARCH ELASTOMERICS INC | RIVIERA INVESTMENTS, INC | US Bank, National Association You are currently viewing:
This Promissory Note involves

RUBBER RESEARCH ELASTOMERICS INC | RIVIERA INVESTMENTS, INC | US Bank, National Association

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Title: AMENDED AND RESTATED DEMAND NOTE
Date: 12/31/2008

AMENDED AND RESTATED DEMAND NOTE, Parties: rubber research elastomerics inc , riviera investments  inc , us bank  national association
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Exhibit 4.1      
AMENDED AND RESTATED DEMAND NOTE    

U.S. $400,000.00 

December 16, 2008



FOR VALUE RECEIVED, the undersigned, RUBBER RESEARCH ELASTOMERICS, INC., a Minnesota corporation, (the “Borrower”) promises to pay to the order of RIVIERA INVESTMENTS, INC., a California corporation (the “Lender”), the principal sum of FOUR HUNDRED THOUSAND AND NO/100THS DOLLARS ($400,000.00) ON DEMAND, or if no earlier demand has been made, on October 15, 2009 (the earlier of such dates being the “Termination Date”).
The Borrower promises to pay interest (computed on the basis of the number of days elapsed in a year of 360 days) on the unpaid principal amount hereof from the date hereof until such principal amount is paid in full at a fluctuating annual rate equal to 10% per annum above the Prime Rate of Interest; provided, however, that notwithstanding anything to the contrary contained herein, upon the occurrence and during the continuance of any Default or Event of Default, the rate of interest hereunder shall be 12% per annum above the Prime Rate of Interest (such increased rate of interest being, the “Default Rate”).  The term "Prime Rate of Interest" shall mean the prime rate of interest published from time to time in the Wall Street Journal as the prime rate; provided, however that: (a) if a range of rates is published, then the Prime Rate of Interest means the highest rate within the range; and (b) if the Wall Street Journal does not publish the Prime Rate of Interest, then the term "Prime Rate of Interest" shall mean the rate of interest publicly announced by U.S. Bank, National Association, Minneapolis Office, as its Prime Rate, Base Rate, Reference Rate or the equivalent of such rate, whether or not such bank makes loans to customers at, above, or below said rate.  Interest shall be due and payable on the first day of each month (each such date being an “Interest Payment Date”), commencing January 1, 2009, and at the maturity hereof.  Interest accruing after the maturity hereof  shall be due and payable upon demand.  Each change in the fluctuating interest rate shall take effect simultaneously with the corresponding change in the Prime Rate of Interest.
At the written request of the Borrower, accrued interest hereunder shall be added to the principal balance of the Loan on each Interest Payment Date rather than being payable in cash (interest that is added to the principal balance shall be referred to herein as “PIK Interest”).  Unless prohibited under applicable law, PIK Interest shall itself shall bear interest from and after the related Interest Payment Date at the interest rate set forth in the immediately preceding paragraph and shall be payable at maturity.  All amounts of accrued PIK Interest as of each Interest Payment Date shall no longer be deemed to be accrued and unpaid interest on the outstanding principal of the Loan, but shall be considered principal until paid.  Any accrued interest


 
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