Exhibit 10.4
PROMISSORY
NOTE
$
100,000 . 00
Salt
Lake City, Utah
November
10, 2008
1.
FOR
VALUE RECEIVED, Flexpoint Sensor Systems, Inc. hereinafter referred
to as “Maker”, hereby unconditionally promises to pay
to First Equity Holdings Corp., hereinafter referred to as
“Holder”, or its order, at 2157 Lincoln St, Salt
Lake City, Utah 84106, or such other place as designated by Holder,
without set off or deduction, all sums up to a total of One Hundred
Thousand Dollars ($ 100,000.00) lent to Maker by Holder. Said
principal being payable as follows:
This Promissory
Note (hereinafter the “Note”) is payable and Maker
shall pay this Note in full including the principal balance, any
accrued interest, and all other costs, fees and charges hereunder
on or before May 31, 2009 (“Maturity Date”).
Except in the event Holder elects to extend the Maturity Date
and Late Rate (as defined below), this Note shall bear interest at
a rate equal to Ten Percent (10%) per annum. This
Promissory Note is secured by business equipment
and at the Holder’s option may be converted to common stock
of Flexpoint Sensor Systems, Inc. at $.25 per
share.
If any
payment under this Note is not paid when due, the outstanding
principal balance of this Note shall be immediately due and such
unpaid amounts shall bear interest (“Late Rate”), from
the date thereof until the date of such payment, at a rate per
annum equal to fifteen percent (15%).
2.
Maker,
at Maker’s option at any time, may prepay the amounts
required herein.
3.
In the
event that any payment under this Note is not made, or any
obligation provided to be satisfied or performed under this Note is
not satisfied or performed at the time and
