EXHIBIT 10.9
PROMISSORY NOTE
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Date: January _29_, 2007
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Note Amount: $670,000
PROMISE TO PAY: Challenger Powerboats, Inc., ("Borrower"), 300 Westlink
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Drive, Washington, Missouri, promises to pay to the order of Xxxx Xxxxxxx or his
assigns (Noteholder), in lawful money of the United States of America, the
principal amount of $670,000, together with interest at a fixed rate of interest
at ten percent (10%) per annum.
PAYMENT: Borrower will pay this loan in accordance with the following
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payment schedule:
The first payment shall be due on February 28, 2007 and continuing on the
same day of each month thereafter until July 28, 2008, according to the attached
amortization table, at which time the entire unpaid principal balance and all
accrued interest shall be due and payable. Buyer shall have full prepayment
privileges at any time without prepayment penalty. Interest on this Note is
computed daily on the basis of a 365-day year, for each day all or any part of
the principal balance hereof shall remain outstanding. Borrower will pay
Noteholder at
________________________________________________________ or at such other place
as Noteholder may designate in writing. Payments not received within 15 days of
due date shall be considered late and shall be subject to a late charge based on
the rate of 1% per month.
DEFAULT: Borrower will be in default if any of the following happens:
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a. Borrower fails to make any payment when due;
b. A receiver is appointed for any part of Xxxxxxxx's property,
Xxxxxxxx makes an assignment for the benefit of creditors, or any proceeding is
commenced either by Borrower or against Borrower under any bankruptcy or
insolvency laws including but not limited to a voluntary or involuntary filing
under 11 USC Sec. 101, et seq.;
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c. A receiver is appointed for any part of such guarantor's property,
such guarantor makes an assignment for the benefit of creditors, or any
proceeding is commenced either by any such guarantor or against such guarantor
under any bankruptcy or insolvency laws including but not limited to a voluntary
or involuntary filing under 11 USC Sec. 101, et seq.
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NOTEHOLDERS RIGHTS UPON DEFAULT: Upon default, Noteholder may declare the
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entire unpaid principal balance on this Note and all accrued interest
immediately due, after 30 days notice. This Note has been accepted by
Noteholder in the State of North Dakota. If there is a lawsuit, Xxxxxxxx
agrees, upon Noteholder's request to submit to the jurisdiction of the Courts of
St. Louis Missouri. This Note shall be governed by and construed in accordance
with the laws of the State of Missouri.
COLLATERAL: This Note is secured by the security interest in the Assets
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set forth in the Security Agreement between Challenger and Borrower dated
January _29_, 2007.
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GENERAL PROVISIONS: Noteholder may delay or forego enforcing any of its
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rights or remedies under this Note without waiving them. Borrower and any other
person who signs, guarantees or endorses this Note, to the extent allowed by
law, waives presentment, demand for payment, protest and notice of dishonor.
Upon any change in the terms of this Note, and unless otherwise expressly stated
in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such
parties agree that Noteholder may renew, extend or modify this loan, or release
any party or guarantor or collateral, or impair, fail to realize upon or perfect
Noteholder's security interest in the collateral; and take any other action
deemed necessary by Noteholders without the consent of or notice to anyone.
TIME: Time is of the essence of this Note and each of the provisions
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hereof.
BORROWER:
Challenger Powerboats, Inc.
By: /s/ Xxxxxx Xxxxxxxx Date: January 29, 2007
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Xxxxxx Xxxxxxxx, President & CEO
