PROMISSORY NOTE
Loan No. 01-901-27383-01-00005
Note No. 0001
Borrower(s):
AIR RESPONSE, INC.
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NAME(S) (If partnership or co-ownership, name
all partners or co-owners.)
▇▇ ▇. ▇▇▇▇ ▇▇▇▇▇▇
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Address
September 20, ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇
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City State Zip Code
1. Definitions. In this Promissory Note, the words "I," "me," and "mine" mean
all who sign this Promissory Note as Borrower(s). The words "you" and "your(s)"
mean Cessna Finance Corporation, ▇▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇, ▇.▇. ▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇,
▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇, and any party to whom Cessna Finance Corporation assigns this
Promissory Note. The words "we," "us" and "our(s)" mean both the Borrower(s) and
Lender. Borrower(s) is/are a Corporation.
2. Security for Payment of Promissory Note. This Promissory Note evidences an
advance of credit made to me as of the date appearing above. By signing this
Promissory Note, I acknowledge my receipt and acceptance of the advance of
credit in the AMOUNT FINANCED set out below. I agree that my obligations under
this Promissory Note will be secured by the Security Agreement between us dated
September 20, 1996, as the same may be amended, extended, supplemented, modified
or replaced from time to time (the "Security Agreement"), which grants you a
security interest in the Aircraft described below and further defined in the
Security Agreement, including, without limitation, the following aircraft:
Year Manufacturer Model FAA Reg No. Serial No.
1972 MITSUBISHI MU-2B-35 N3330K 551
3. Loan Breakdown. The following is a breakdown of my credit terms under this
Promissory Note:
a. AMOUNT FINANCED (the amount of credit provided to me or on
my behalf-includes an origination fee in the amount of $400.00): $253,850.00
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*b. FINANCE CHARGE (the dollar amount the credit will cost me): $ 94,659.28
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*c. ANNUAL PERCENTAGE RATE (the cost of my credit expressed as a yearly rate):
(1) a Variable rate of Prime Rate plus** 1.25%
(fixed or variable)
(initial ANNUAL PERCENTAGE RATE= 9.50%),
through and until paid in full, followed by
(2) a N/A rate of N/A plus** N/A % thereafter until paid in full.
(fixed or variable)
*d. TOTAL OF PAYMENTS (the amount I will have paid after I have made all
payments as scheduled): $348,509.28
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*Estimate: see Paragraph 6, "Late Payments and Prepayments," and Paragraph
7, "Changes in Rate and Payments."
**The additional interest factor added after the word "plus" for variable
rate applications is hereafter referred to as the "Additional Rate."
4. Promise to Pay. I promise to pay to you or to your order the AMOUNT FINANCED,
together with the FINANCE CHARGE computed on the principal balance of the AMOUNT
FINANCED remaining unpaid from time to time at the applicable ANNUAL PERCENTAGE
RATE, as defined above, until the AMOUNT FINANCED and any applicable FINANCE
CHARGE are paid in full. I will make my payments according to the Payment
Schedule described below, subject to any revisions that may be adopted pursuant
to this Promissory Note. I understand and agree that you will apply any payments
that you receive from me: first, to the repayment of all sums that I may owe you
in connection with any future advances that you make pursuant to Paragraph 11 of
the Security Agreement; second, (at your sole discretion and in such order as
you may select) to any other indebtedness (both present and future) secured by
the Security Agreement; third, to any prepayment premium, if applicable, in an
amount determined by reference to the schedule set out in Paragraph 6; fourth,
to any unpaid FINANCE CHARGE that I may owe as of the date you receive any
payment; and fifth, to the unpaid principal balance of the AMOUNT FINANCED
pursuant to this Promissory Note.
5. Payment Schedule. Subject to any applicable adjustments described in
Paragraphs 6 and 7, I agree to pay you the AMOUNT FINANCED, together with
applicable FINANCE CHARGE pursuant to the following Payment Schedule:
84 payments of $4148.92 (beginning October 20, 1996, with a payment in the same amount on the same
day of each month thereafter), succeeded by
N/A payments of $ N/A (beginning N/A, with a payment in the same amount on the same
day of each month thereafter), and
N/A.
6. Late Payments and Prepayments. I understand and agree that the FINANCE CHARGE
will be calculated on a daily basis using actual days elapsed. If I make any
payment after its due date, the FINANCE CHARGE and TOTAL OF PAYMENTS will
increase. If I make any payment before its due date, the FINANCE CHARGE and the
TOTAL OF PAYMENTS will decrease. I agree that the aggregate change in the
FINANCE CHARGE and the aggregate change in the TOTAL OF PAYMENTS resulting from
payments made before or after their due dates will be reflected and paid by me
in the final payment, if I have not paid such sums before that date. You agree
that so long as I am not in default on any of my obligations under this
Promissory Note, the Security Agreement or any other contract or agreement
between us (both present and future), in consideration of my payment of the
prepayment premiums as set forth below in this paragraph, you hereby grant me
the privilege at any time to pay in advance all or any part of the unpaid
principal balance of the AMOUNT FINANCED, but I agree that any such advance
payment must be made and applied as specified in Paragraph 4. The prepayment
premium shall be an amount equal to a percentage of the then unpaid principal
balance of the AMOUNT FINANCED, as follows: 0.00% during the first year of this
Promissory Note; 0.00% during the second year of this Promissory Note; 0.00%
during the third year of this Promissory Note; 0.00% during the fourth year of
this Promissory Note; 0.00% thereafter.
NOTICE TO BORROWER(S):
1. SEE THE BACK OF THIS PAGE FOR ADDITIONAL TERMS AND CONDITIONS.
2. DO NOT SIGN THIS PROMISSORY NOTE BEFORE READING IT OR IF IT CONTAINS ANY
BLANK SPACE.
3. BORROWER IS ENTITLED TO A COMPLETELY FILLED IN COPY OF THIS PROMISSORY NOTE.
I HAVE READ THIS ENTIRE PROMISSORY NOTE AND HAVE RECEIVED A COPY OF IT.
AIR RESPONSE, INC.
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BORROWER(S) (If partnership or co-ownership,
name all partners or co-owners.)
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇--President By:
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(If Corporation, show title of officer (Title) (Signature) (Title)
signing. If partnership or co-ownership,
all partners or co-owners must sign.)
By: By:
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(Signature) (Title) (Signature) (Title)
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