Exhibit 10.19
C#: 000522170
L#: 000521641
PN#: 8800545597
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Promissory Note
Aircraft
Loan
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$3,900,000.00
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Funding Date: January 11,
2007
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FOR VALUE
RECEIVED , DPMG,
INC. , ("Maker"), promises to pay to the order of Key
Equipment Finance Inc. , ("Holder"), the sum of $3,900,000.00
in lawful money of the United States of America (the "Principal"),
with interest thereon as hereafter provided ("Interest"), to be
paid in the manner set forth herein. This Note is
executed pursuant to and is secured by, the Collateral pledged
under that certain aircraft security agreement (the "Aircraft
Security Agreement") dated as of January 11, 2007 between Maker as
grantor and Holder as secured party. Capitalized terms used herein
without definition shall have the meaning given them in the
Aircraft Security Agreement.
1.
Interest Rate; Closing Rate Adjustment; Place of
Payment . (a) Interest on the balance of the
Principal outstanding on this Note shall accrue from the Funding
Date of this Note and shall be due and payable at a rate of 6.83%
per annum (the "Interest Rate") which rate shall be immediately and
correspondingly adjusted (pursuant to 2(b) hereof) with each change
in the Actual Index (as hereinafter defined). Interest
shall be calculated on the basis of a 360-day year consisting of
twelve 30-day months.
(b) The Interest Rate has been
calculated on the assumption that the LIBOR Rate as reported in the
Wall Street Journal on the Funding Date (the “Assumed LIBOR
Rate”) will be 5.32%. If the LIBOR rate on the Funding Date
is different from the Assumed LIBOR Rate, Holder shall make a one
time adjustment to the Interest Rate on the Funding Date by
increasing or decreasing, as applicable, the Interest Rate by one
(1) basis point for every one (1) basis point change in the LIBOR
Rate from the Assumed LIBOR Rate. Maker authorizes Holder to change
the amount of the Interest Rate in the Note accordingly. Holder
shall notify Maker in writing of such adjustment which shall remain
in effect while any indebtedness exists under the Note.
(c) Payment of the Principal
and Interest hereunder shall be made to Holder at 66 South Pearl
Street, Post Office Box 1865, Albany, NY 12201-1865, or at such
other place as Holder may designate from time to time in writing.
Holder reserves the right to require payment on this Note to be
made by wired federal funds or other immediately available
funds.
2.
Repayment Terms . (a) Maker shall repay
the Principal and Interest hereunder in the installments set forth
below. Each installment shall be due and payable on the
first day of each month during which any amount remains outstanding
hereunder (each such date being a "Note Payment Date") as
follows:
(i) If the Funding Date occurs on the first day
of the month, Maker shall pay Holder 84 consecutive Monthly
installments payable in arrears, each in an amount equal to
$34,916.63 commencing and payable on the next Note Payment Date
after the Funding Date and on each succeeding Note Payment Date
thereafter;
OR
(ii) If the Funding Date occurs on any day other
than the first day of the month, then (A) on the first Note Payment
Date after the Funding Date, an amount equal to $739.92 per day as
interim interest for the period from the Funding Date through and
including the last day of the month in which the Funding Date
occurs, which interim interest was calculated by Holder using the
Assumed Index plus 151 basis points and is expressly not subject to
adjustment pursuant to Section 2(b) hereof; plus (B) 84 consecutive
Monthly installments payable in arrears, each in an amount equal to
$34,916.63 commencing and payable on the second Note Payment Date
following the Funding Date and on each succeeding Note Payment Date
thereafter;
PLUS
(iii) On the 84 and final Note
Payment Date, the Balloon Payment. In addition, Maker
will pay a late payment charge of five percent of any payment due
hereunder that is not paid on or before ten (10) days after the
date due hereunder.
(b) Maker and Holder agree that each monthly
installment hereunder will be increased or decreased (but not below
zero), as the case may be, by the Rate Differential as follows: if,
as of any Note Payment Date, (i) the Rate Differential is
greater than zero, the amount due on such Note Payment Date shall
be increased by such Rate Differential, and (ii) if the Rate
Differential is less than zero, the amount of the Note Payment due
on such Note Payment Date shall be decreased by such Rate
Differential.
(c) As used herein, the following terms have the
respective meanings indicated below:
(i) “
Assumed Index ” means 5.32%
(ii) “ Actual Index ” means,
as of the date of determination, the London interbank offered rate
for deposits in United States dollars having a maturity of one
month which appears in the "Money Rates" section of The Wall Street
Journal, published on the business day on, or immediately prior to,
the 28th day of the month immediately preceding such calendar
month. If the Actual Index is no longer available,
Holder will choose a new index which is based upon comparable
information and will give Maker notice of such new "Actual
Index."
(iii) “
Balloon Payment ” means $2,535,000.00.
(iv) “ Net Investment Balance
” means, as of the date of determination, the outstanding
balance (calculated using the Assumed Index plus 151 basis points)
reflected on Holder’s accounting system (which assumes a 360
day year consisting of twelve 30 day months), for the Note Payment
Date immediately preceding such day or, if such day is a Note
Payment Date, for such Note Payment Date.
(v) “
Rate Differential ” means, with respect to any Note
Payment Date, the product of the following formula:
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Rate Differential = Actual Index
- Assumed Index x Net Investment Balance
12
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3.
Security . Payment of the Principal and Interest
hereunder, and the performance and observance by Maker of all
agreements, covenants and provisions contained herein, is secured
by a first priority security interest in the Collateral.
4.
Prepayment . Except as contemplated by Section 3.1 of
Article 3 of the Aircraft Security Agreement, Maker may not prepay,
in whole or in part, the Principal outstanding hereunder;
provided, however , Maker may prepay, on any Note Payment
Date and in whole but not in part, the Principal outstanding
hereunder including the Balloon Payment by paying to Holder such
outstanding Principal, together with all accrued and unpaid
interest thereon as of the date of payment, plus all fees or
charges incurred by Holder in connection with such prepayment,
including, without limitation, Holder’s reasonable attorney
fees and expenses, FAA counsel fees and
expenses, filing, registration and recording fees or
charges of the FAA, International Registry and the UCC and any
applicable taxes (but excluding internal costs to Holder related to
such prepayment), plus a prepayment premium ("Prepayment Premium")
equal to a percentage of the
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