EXHIBIT 99.1
EXHIBIT A
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NOTE
$300,000 Irvine, California
February 1, 2001
FOR VALUE RECEIVED, Xxxx X. Xxxxxxxxx (the "Borrower") promises to pay to
eMachines, Inc., a Delaware corporation (the "Company"), or order, the principal
sum of $300,000. No interest is to be charged on the principal. Both the
Borrower and the Company acknowledge that income may be imputed to either in
connection with this interest free loan.
In the event the Borrower shall cease to be an employee of the Company for
any reason, this Note shall, at the option of the Company, be accelerated, and
the whole unpaid balance of principal on this Note shall be due and payable
within thirty (30) days of the date of such cessation of employment with the
Company. Notwithstanding the foregoing, the entire principal amount of this
loan shall be forgiven in the event the Borrower remains continuously employed
with the Company through December 17, 2003.
Payment of principal shall be made in lawful money of the United States of
America. The undersigned may at any time prepay all or any portion of the
principal owing hereunder.
This Note is subject to the terms of the employment agreement between the
Borrower and the Company, dated as of December 18, 2000. This Note is secured
in part by a pledge of collateral under the terms of a Securities Account Pledge
Agreement of even date herewith and is subject to all the provisions thereof.
The holder of this Note shall have full recourse against the Borrower for
the outstanding balance of this Note, but shall be required to first proceed
against the collateral securing this Note in the event of default, and second
against the Borrower.
Should any action be instituted for the collection of this Note, the
reasonable costs and attorneys' fees therein of the holder shall be paid by the
Borrower.
/s/ XXXX X. XXXXXXXXX
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Signature
Xxxx X. Xxxxxxxxx
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Print Name
