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Vista International Technologies, Inc. 10-Q [vista_10q-093011.htm]
Exhibit 10.4
 
PROMISSORY NOTE
 

$450,000.00 
 Denver, Colorado
  September 16, 2011

 
Vista International Technologies, Inc., a Delaware corporation with its
principal place of business at 88 Inverness Circle East, N-103, Englewood, CO
80112 (the “Payor”), for value received, hereby unconditionally promises to pay
to the order of RICHARD C. STRAIN, an individual residing at 15 Loockerman
Avenue, Poughkeepsie, New York  12601 (the “Payee”), on the earlier of (i) the
date of commencement of any bankruptcy, insolvency or similar proceedings in
respect of the Payor, (ii) November 14, 2011, or (iii) the closing of the sale
described in that certain Real Estate Sales Contract between Payor and Brown
Family Lewisville Railroad Family First, L.P., dated February 14, 2011
(collectively, the “Maturity Date”), in lawful money of the United States of
America, the maximum principal sum of FOUR HUNDRED FIFTY THOUSAND and 00/100
($450,000.00) DOLLARS (the “Maximum Principal Amount”) or such lesser amount as
shall have been advanced by Payee to Payor, together with interest thereon as
hereinafter provided.

SECTION 1.                      Interest.  Interest shall accrue on the
outstanding principal amount of this Promissory Note at the rate of nine percent
(9%).  Interest shall be computed based upon a 365 day year.

SECTION 2.                      Advances.  Payee shall make an advance to the
Payor in the amount of One Hundred Seventy-Five Thousand Dollars ($175,000.00)
immediately upon the execution of this Note and the Security Agreement
referenced in Section 5 below (the “Initial Payment”).  Thereafter, from time to
time, Payee may make additional advances, or loans, to Payor up to $275,000.00
to enable Payor to purchase certain equipment, such amounts to be paid directly
to each vendor upon receipt of supporting invoices for said purchased
equipment.  Each such advance will be subject to the terms and conditions of
this Note.  Each advance will be supported by submission of a Request for
Advance in the form annexed as Exhibit A hereto and any applicable supporting
documentation as required by Payee.

SECTION 3.                      Repayments.  A repayment of all outstanding
principal and accrued interest, if any, shall be due and payable on the Maturity
Date.  All repayments shall be applied in the following order of priority:  (i)
outstanding unpaid fees and costs for which Payee may be responsible pursuant to
the Security Agreement referenced in Section 5 herein, (ii) accrued and unpaid
interest and (iii) principal.

SECTION 4.                      Priority.  This Promissory Note shall not be
subordinated or junior in right of payment or distribution to any other
indebtedness, liabilities or obligation of any kind or nature whatsoever and
shall be senior or pari passu in right of payment and distribution to any and
all such other indebtedness, liabilities and obligations of the Payor.
 
 
 

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SECTION 5.                      Security.  The obligations under this Note are
secured by that certain Security Agreement between Payor and Payee of even date
herewith.

SECTION 6.                      Miscellaneous.  (a)  The Payor hereby waives
presentment, demand, protest and notice of any kind whatsoever in connection
with this Promissory Note.  The nonexercise by the holder of any of its rights
hereunder in any particular instance shall not constitute a waiver thereof in
that or any subsequent instance.

(b)           The Payor may prepay all or part of the principal hereof at any
time without penalty.

(c)           This Promissory Note shall be construed in accordance with and
governed by the law of the State of New York.

(d)           All borrowings evidenced by this Promissory Note and all payments
and prepayments of the principal hereof and interest hereon shall be recorded by
such holder in its internal records, provided, however, that the failure of the
holder hereof to make such a notation or any error in such a notation shall not
affect the obligation of the Payor under this Promissory Note.  All payments and
prepayments payments received by the Payee shall be applied first to accrued
interest and, thereafter, to principal.

IN WITNESS WHEREOF, the undersigned has caused this Promissory Note to be duly
executed as of the day and year first above written.

 

  VISTA INTERNATIONAL TECHNOLOGIES, INC.           /s/ Bradley A. Ripps     By: 
Bradley A. Ripps     Title: Interim CEO          

 
 
 
 

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EXHIBIT A

Request for Advance

Pursuant to the terms of Section 2 of that certain Promissory Note dated
September 16, 2011, between Vista International Technologies, Inc. (the “Payor”)
and Richard C. Strain (the “Payee”), Payor hereby requests the following
advance(s):

Creditor/Vendor
Name & Address
Amount of Advance
Payment Instructions
                                                     

All Requests for Advances shall be supported by documentation evidencing the
amount paid or to be paid with the Advance.
 
 

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