Exhibit No. 4
Shallbetter Industries, Inc.
Form 10-SB
PROMISSORY NOTE
$10,000
Minneapolis, Minnesota
December 29, 1999
FOR VALUE RECEIVED, Craig Laughlin ("Borrower") promises to pay
Shallbetter Industries, Inc. ("Holder") the principal sum of TEN
THOUSAND DOLLARS ($10,000) with interest at the rate of 6% per
anum. Principal and interest shall be payable to Holder at 11900
Wayzata Blvd. Suite #100 Hopkins, MN 55305 on February 1, 2000,
or sooner at Borrower's option.
1. Interest. Borrower will pay interest on the unpaid
principle amount hereof from time to time outstanding at the rate
of eight (6%) per annum.
2. Payment Schedule. Principle payments shall be due and
payable as follows: $3,000 on Feb. 1, 2000; $3,500 on April 1,
2,000, and $3,500 on June 1, 2000. Accrued interest on this Note
shall be payable on June 1, 2000.
3. Security Interest. This Note is secured by a Security
Agreement of even date, executed by Borrower in favor of Holder
covering the collateral described therein.
4. Full Recourse. Holder shall have full recourse against
Borrower in the event of a default.
5. Bankruptcy. This Note shall be immediately due and payable
(including unpaid interest accrued thereon) without demand or
notice thereof upon filing of a petition by or against Borrower
under the United States Bankruptcy Code.
6. Waiver. Borrower hereby waive presentment for payment,
notice of nonpayment, protest, notice of protest and all other
notice, filing suit and diligence in collecting this Note and any
requirement that Holder proceed against any collateral or any
other party prior to or in order to enforce payment of this Note,
and further consents to any extension, rearrangement, renewal or
postponement of the time for payment of this Note and to any
other indulgence with respect hereto without notice, consent or
consideration.
7. Costs of Collection. Borrower agrees to pay all costs of
collection of this Note, including, but not limited to,
reasonable attorneys' fees and legal expenses.
8. Notices. All notices required pursuant to the terms of this
Note shall be in writing and either delivered personally or sent
by United States mail. If sent by mail, notice shall be deemed
given the second day following its posting when deposited in the
US mail, properly addressed and postage prepaid.
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9. Governing Law. This Note shall be governed by and construed
in accordance with the laws of the State of Minnesota.
IN WITNESS WHEREOF, this Note has been executed as of the date
set forth above.
_____________________________
Borrower
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