Exhibit 10(m)
PROMISSORY NOTE AND GRID LOAN AGREEMENT
Whereas, Xxxxxx X. Xxxxxxxxxx is the Chief Executive Officer of Amscan Holdings,
Inc. ("Amscan") and Xx. Xxxxxxxxxx wishes to borrow from time to time from
Amscan up to one million dollars ($1,000,000)
and
Whereas, Amscan is willing to lend to Xx. Xxxxxxxxxx such amounts on the terms
and conditions set forth below, the parties agree as follows:
Amscan will lend to Xx. Xxxxxxxxxx such amounts as he may request from time to
time in increments of $100,000, up to a total of $1,000,000. Repayments of
borrowings hereunder shall likewise be in increments of $100,000. Such
borrowings and repayments shall be recorded on the form of Grid Loan Note
attached hereto.
Any amounts borrowed hereunder, shall bear interest at Amscan's incremental
borrowing rate in effect during the time such loan amount is outstanding.
Interest shall be due and payable on the third business day following the end of
each calendar quarter.
Furthermore, any amounts due under any borrowing, including interest, shall be
secured by a lien on the equity interests which Xx. Xxxxxxxxxx has in Amscan.
Xx. Xxxxxxxxxx agrees that he shall execute for the benefit of Amscan such
documents and perform such acts, as necessary to perfect Amscan's security
interest in this equity collateral. Notwithstanding such lien, Xx. Xxxxxxxxxx
shall also remain personally liable for any amounts outstanding hereunder along
with accrued interest.
In the event of a default represented by failure to pay any amounts when due,
Amscan reserves the right to pursue such personal recourse at its election
irrespective of the equity lien.
This agreement shall terminate and all amounts due hereunder including accrued
interest shall be due and payable upon the earlier of Xx. Xxxxxxxxxx'x
termination of employment for any reason or December 31, 2001.
Dated October 1, 1999
/s/ Xxxxxxxx X'Xxxxx /s/ Xxxxxx X. Xxxxxxxxxx
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Amscan Holdings Inc. Xxxxxx X. Xxxxxxxxxx
by: Xxxxxxxx X'Xxxxx, Chairman