
<PAGE>

                            DEMAND PROMISSORY NOTE

$29,543,504                                                  September 30, 1997

FOR VALUE RECEIVED AND FOR THE PURPOSE OF CONSOLIDATING THE INDEBTEDNESS 
LISTED ON THE ATTACHED EXHIBIT B, the undersigned promises to pay to E. 
Khashoggi Industries or order, the principal amount of Twenty-Nine Million 
Five Hundred Forty-Three Thousand Five Hundred Four Dollars ($29,543,504), 
together with interest from date hereof at the initial rate of Eight and 
One-Half percent (8.50%) per annum which represents the Prime Rate (as 
defined below) on September 30, 1997, on the unpaid balance, payable in lawful 
money of the United States of America at the office of E. Khashoggi 
Industries without defalcation or discount. The interest rate shall be 
adjusted to the Prime Rate in effect on the first day of each calendar 
quarter (January 1, April 1, July 1 and October 1) commencing October 1, 
1997. The term "Prime Rate" means the highest "Prime Rate" as published in 
the Wall Street Journal's "Money Rates" table, which is described as the base 
rate on the corporate loans at large US money center banks. Interest shall be 
compounded quarterly and paid at the last day of each calendar quarter 
commencing on September 30, 1997. The unpaid principal balance, and any 
accrued but unpaid interest, shall be payable upon demand and in all events 
shall be due and payable on September 30, 2000. Any interest not paid when 
due shall be added to the principal balance. Unless otherwise provided 
herein, all payments hereunder shall be applied first to accrued interest and 
the balance to the reduction of principal. Any portion of principal or 
interest not paid when due shall continue to bear interest as stipulated above 
until paid.

In case of default in the payment of principal or interest hereunder, 
proceedings may at once be instituted for the recovery of the same, and the 
undersigned agrees to pay all costs of such proceedings and any other costs 
of collection, including reasonable attorney's fees.

The undersigned may pay this Note in part or in full without penalty.

The undersigned severally waive presentment, protest and demand; and waive 
notice of protest, demand and of dishonor and non-payment of this Note, and 
expressly agrees that this Note, or any payment thereunder, may be extended 
from time to time without in any way effecting the liability of the 
undersigned.

Upon due execution and delivery of this Note, E. Khashoggi Industries will 
deliver to the undersigned any promissory notes or other written obligations 
evidencing the indebtedness listed in the attached Exhibit B, marked 
"canceled".

EARTHSHELL CONTAINER CORPORATION:


/s/ Simon K. Hodson
---------------------------------
Simon K. Hodson
Chief Executive Officer

ATTEST:


/s/ Scott Houston
---------------------------------
Scott Houston
Chief Financial Officer


<PAGE>

                                   EXHIBIT B

                       EARTHSHELL CONTAINER CORPORATION

      Obligation Due to EKI and Converted to Note Payable as of 9/30/97


Note date 6/30/97 (Previous consolidation)                          $27,214,890
Due on intercompany billing:             8/97        576,335            576,335
Cash advance:                         7/11/97         85,000
Cash advance:                         7/30/97         50,000
Cash advance:                          8/7/97        200,000
Cash advance:                         8/13/97         60,000
Cash advance:                         8/26/97        150,000
Cash advance:                         8/27/97         50,000
Cash advance:                         8/28/97        400,000
Cash advance:                         9/16/97         75,000
Cash advance:                         9/26/97        170,000          1,240,000
Interest due:                            4/97        166,849
Interest due:                            5/97        174,705
Interest due:                            6/97        170,725            512,279
                                                                    -----------

TOTAL OBLIGATIONS DUE TO EKI AS OF 9/30/97                          $29,543,504
                                                                    -----------
                                                                    -----------

DOES NOT INCLUDE JULY 1997 INTERCOMPANY BILLING OF $576,214 WHICH WILL BE 
PAID ON MONDAY, OCTOBER 27, 1997.

