Document:

Exhibit
4.8

 

AIRNET SYSTEMS, INC.

Loan and Security Agreement

 

Loan Number: 1000119649

 

This Agreement is dated as of June 29, 2004 and
is executed by and between BANC ONE LEASING CORPORATION (“Lender”), with Lender’s
principal office located at 1111 Polaris Parkway, Suite A3 (OH1-1085),
Columbus, Ohio 43240 and the borrower identified below (“Borrower”):

 

Borrower: JETRIDE, INC. dba AIRNET PRIVATE CHARTERS

 

Borrower’s Address: 3939 International Gateway,
Columbus, Ohio 43219

 

1.  GRANT OF SECURITY INTEREST. 
Borrower grants, pledges and assigns to Lender a security interest in
all of Borrower’s respective right, title and interest in and to the property
described on the attached Schedule A-1,
now or hereafter arising or acquired, wherever located, together with any and
all additions, accessions, parts, accessories, substitutions and replacements
thereof, now or hereafter installed in, affixed to or used in connection with
said property (the “Equipment”), in all proceeds thereof, cash and non-cash,
including, but not limited to, proceeds of notes, checks, instruments,
indemnity proceeds, or any insurance on such and any refund or rebate of
premiums on such (“Collateral”).  This
Agreement secures the prompt payment and complete performance in full when due,
whether at the stated maturity, by acceleration or otherwise, of all payment
and other obligations of Borrower under or in connection with this Agreement,
and the Business Purpose Promissory Note executed in connection with the Loan
Number referenced above with the Borrower as the maker (the “Note”), and any
and all renewals, extensions or substitutions therefor (“Obligations”).  Borrower is and will continue to be (or, with
respect to after acquired property that constitutes Equipment under this
Agreement, will be when acquired) the legal and beneficial owner of the
Collateral free and clear of any Lien except for the security interest created
by this Agreement and/or any other prior security agreement delivered by
Borrower to Lender.  Except as previously
disclosed to Lender in writing, no effective Uniform Commercial Code (“UCC”)
financing statement or other instrument covering all or any part of the
Collateral is on file in any recording office, except those in favor of
Lender.  At its sole expense, Borrower
shall protect and defend Lender’s first priority security interest in the
Collateral against all claims and demands whatsoever.

 

2.  MAINTENANCE AND USE.  At its sole expense, Borrower shall (a)
repair and maintain the Equipment in good condition and working order and
supply and install all replacement parts or other devices when required to so
maintain the Equipment or when required by applicable law or regulation, which
parts or devices shall automatically become part of the Equipment; (b) use and
operate the Equipment in a careful manner in the normal course of its business
and only for the purposes for which it was designed in accordance with the
manufacturer’s warranty requirements, and comply with all laws and regulations
relating to the Equipment, and obtain all permits or licenses necessary to
install, use or operate the Equipment; 
(c) except as provided in clause (d) below, make no alterations,
additions, subtractions, upgrades or improvements to the Equipment without
Lender’s prior written consent, which consent will not be unreasonably
withheld, but any such alterations, additions, upgrades or improvements shall
automatically become part of the Equipment; (d) maintain, inspect, service and
repair, overhaul and test the Equipment in accordance with the FAA approved
maintenance program, manufacturer’s approved maintenance program, FAA
airworthiness directives, and the manufacturer’s alert bulletins and urgently
recommended service bulletins and procedures, and perform all duties and tasks
which would be required to maintain the Equipment, including the engines, in
full compliance with the manufacturer’s specification (i) so as to keep the
Equipment in as good operating condition as when delivered to the Borrower
hereunder, ordinary wear and tear excepted, and (ii) so as to keep the
Equipment in such operating condition as may be necessary to enable the
airworthiness certification of such Equipment to be maintained in good standing
at all times under the Act (as defined in Section 20 hereof); and (e) maintain
all records, logs and other materials required by the FAA to be maintained in
respect of the Equipment. The Equipment will not be based outside of the United
States, provided, however, that the Equipment shall not be outside of the
United States for more than ninety (90) days in any calendar year.  The Equipment shall not be operated within,
over or into any jurisdiction not covered by the insurance policies required
herein nor shall the Equipment be operated in any jurisdiction that does not
have diplomatic relations with the United States.  Lender has the right upon reasonable notice
to Borrower to inspect the Equipment wherever located.  The Equipment shall be based at the location
specified on Schedule A-1.  The
Equipment may be repositioned by Borrower, from time to time, to other
locations within the United States in the normal course of the Borrower’s
business.  Borrower shall notify Lender
in writing of any new location where the Equipment is based within five (5)
days of any repositioning of the Equipment.

 

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3.  INSURANCE.  At its
sole expense, Borrower at all times shall keep each item of Equipment insured
against all risks of loss or damage from every cause whatsoever for an amount
not less than the greater of the full replacement value or the Financed Amount
(as defined in Section 20 hereof). 
All insurers shall be reasonably satisfactory to Lender.  Borrower shall deliver to Lender satisfactory
evidence of such coverage.  Proceeds of
any insurance covering damage or loss of the Equipment in excess of $250,000.00
shall be payable to Lender as loss payee and shall, at Lender’s option, be
applied toward (a) the replacement, restoration or repair of the Equipment, or
(b) payment of the obligations of Borrower under this Agreement.  If an event of default occurs and is
continuing, then Borrower automatically appoints Lender as Borrower’s
attorney-in-fact with full power and authority in the place of Borrower and in
the name of Borrower or Lender to make claim for, receive payment of, and sign
and endorse all documents, checks or drafts for loss or damage under any such
policy.  Each insurance policy will
require that the insurer give Lender at least 30 days prior written notice of
any cancellation of such policy and will require that Lender’s interests remain
insured regardless of any act, error, omission, neglect or misrepresentation of
Borrower, and will contain those other requirements outlined in Schedule 3
hereof.  The insurance maintained by Borrower
shall be primary without any right of contribution from insurance which may be
maintained by Lender.

 

4.  LOSS OR DAMAGE. 
Borrower bears the entire risk of loss, theft, damage or destruction of
Equipment in whole or in part from any reason whatsoever (“Casualty Loss”).  No Casualty Loss to Equipment shall relieve
Borrower from the obligation to pay the installment payments or from any other
obligation under this Agreement.  In the
event of Casualty Loss to any item of Equipment, Borrower shall immediately
notify Lender of the same and Borrower shall, if so directed by Lender,
immediately repair the same.  If Lender
determines that any item of Equipment has suffered a Casualty Loss beyond
repair (“Lost Equipment”), then Borrower, at the option of Lender, shall:  (1) upon receipt of any insurance proceeds
for the Lost Equipment replace the Lost Equipment with similar equipment in
good repair, condition and working order free and clear of any Liens and
deliver to Lender a bill of sale covering the replacement equipment, in which
event such replacement equipment shall automatically be Equipment under this
Agreement; or (2) upon receipt of any insurance proceeds for the Lost Equipment
but no more than 180 days after the date of the Casualty Loss, pay to Lender
all amounts then due and payable by Borrower under this Agreement for the Lost
Equipment plus the remaining principal balance for such Lost Equipment as of
the date of the Casualty Loss as determined by Lender’s records.  Upon payment by Borrower of all amounts due
under the above clause (2), the security interest of the Lender in the Lost
Equipment will terminate.

 

5.  TAXES. 
Borrower will pay promptly when due all taxes, assessments and
governmental charges upon or against Borrower, the Collateral or the property
or operations of Borrower, in each case before same becomes delinquent and
before penalties accrue thereon, unless and to the extent that same are being
contested in good faith by appropriate proceedings.

 

6.  GENERAL INDEMNITY. 
Borrower assumes all risk and liability for, and shall defend, indemnify
and keep Lender harmless on an after-tax basis from, any and all liabilities,
obligations, losses, damages, penalties, claims, actions, suits, costs and
expenses, including reasonable attorney fees and expenses, of whatsoever kind
and nature imposed on, incurred by or asserted against Lender, in any way
relating to or arising out of the manufacture, purchase, acceptance, rejection,
ownership, possession, use, selection, delivery,  operation, condition, sale, return or other
disposition of the Equipment or any part thereof (including, without
limitation, any claim for latent or other defects, whether or not discoverable
by Borrower or any other person, any claim for negligence, tort or strict liability,
any claim under any environmental protection or hazardous waste law and any
claim for patent, trademark or copyright infringement).  Borrower will not indemnify Lender under this
section for loss or liability caused directly and solely by the negligence
or willful misconduct of Lender.  In this
section, “Lender” also includes any director, officer, employee, agent,
successor or assign of Lender.  Borrower’s
obligations under this section shall survive the expiration, cancellation
or termination of this Agreement.

 

7.  PERSONAL PROPERTY. 
Borrower represents and agrees that the Equipment is, and shall at all
times remain, separately identifiable personal property.  Upon Lender’s request, Borrower shall use
commercially reasonable efforts to furnish Lender a landlord’s and/or mortgagee’s
waiver and consent to remove all Equipment. Lender may display notice of its
interest in the Equipment by any reasonable identification.  Borrower shall not alter or deface any such
indicia of Lender’s interest.

 

8.  FINANCIAL REPORTS. 
Borrower agrees to furnish to Lender: 
(a) annual financial statements setting forth the financial condition
and results of operation of Borrower (financial statements shall include
balance sheet, income statement and changes in financial position and all notes
thereto) within 120 days of the end of each fiscal year of Borrower; (b)
quarterly financial statements setting forth the financial condition and
results of operation of Borrower within 60 days of the end of each of the first
three fiscal quarters of Borrower; and (c) such other financial information as
Lender may from time to time reasonably request including, without limitation,
financial reports filed by Borrower with federal or state regulatory agencies
to the extent Borrower may disclose such other financial information without
violating the Securities Exchange Act of 1934 or any rule or regulation of the
Securities and

 

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Exchange
Commission.  All such financial
information shall be prepared in accordance with generally accepted accounting
principles.  If Borrower fails to furnish
the annual financial statements to Lender within 30 days of Lender’s written
request, then Lender may, at its option, charge Borrower a non-performance fee
equal to all the installment payments due under this Agreement for the then
current month (unless otherwise prohibited by law) and such fees shall be
payable by Borrower on demand.

 

9.  NO CHANGES IN BORROWER. 
Borrower shall not:  (a)
liquidate, dissolve or suspend business; (b) sell, transfer or otherwise
dispose of all or a majority of its assets, except that Borrower may sell its
inventory in the ordinary course of its business; (c) enter into any merger,
consolidation or similar reorganization unless it is the surviving corporation;
(d) transfer all, or any substantial part of, its operations or assets outside
of the United States of America; or (e) without 15 days advance written notice
to Lender, change its name or chief place of business.

 

10.  REPRESENTATIONS. 
Borrower represents and warrants that: 
(a) Borrower is organized, validly existing, and in good standing under
the laws of one of the states of the United States; (b) Borrower is qualified
to do business in, and is in good standing under the laws of, each other state
in which it conducts its business and in which the Equipment is located, except
to the extent such failure would not have a material adverse effect on the
Borrower’s business or the Collateral; (c) Borrower has the power, and is duly
authorized to enter into, this Agreement and the Note and to execute and
deliver to Lender, now and from time to time hereafter, additional instruments,
resolutions, agreements and other instruments or documents relating to the
Obligation owed to Lender; (d) Borrower has, by proper action, authorized and
empowered those persons whose signatures appear in this Agreement, the Note,
and any instruments, documents and exhibits that have been delivered in
connection herewith, to execute the same for and on its behalf; (e)  this Agreement, the Note, and each related
document constitute a legal, valid, and binding obligation of Borrower
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally and general principles of equity; (f) this
Agreement and the Note evidence a loan made primarily for business, commercial
or agricultural purposes and not primarily for personal, family, or household
purposes; (g) the Equipment is not, and will not, be registered under the laws
of any foreign country; (h) the Equipment is, and shall remain at all times,
eligible for registration under the Act (as defined in Section 20 hereof);
(i) the Equipment shall be based in, and primarily used in, the United States
all as required by the Act; and (j) the Equipment will not be used in violation
of any law, regulation, ordinance or policy of insurance affecting the
maintenance, use or flight of the Equipment; and (k) Borrower qualifies as a
citizen of the United States as defined in the Act and will continue to qualify
as a United States citizen in all respects.

 

11.  OTHER DOCUMENTS; EXPENSES;
APPOINTMENT OF ATTORNEY-IN-FACT.  Borrower hereby irrevocably
appoints Lender or its designee as Borrower’s attorney in fact, with full
authority in the place instead of Borrower, from time to time in Lender’s
discretion upon, during, and after an event of default, to take any action and
to execute any instrument which Lender may deem necessary or advisable to
accomplish the purposes of this Agreement, including without limitation, (a) to
perfect and continue to perfect the security interests created by this
Agreement, including without limitation to prepare, sign, amend, file, or record
a Uniform Commercial Code financing statement in the place of Borrower and in
the name of Borrower; (b) to ask, demand, collect or sue for, recover,
compound, receive and give acquittance in receipts for any monies due or become
due under or in respect for any Collateral; (c) to receive, endorse and collect
any drafts or other instruments, documents and chattel paper, in connection
with the Collateral; and (d) to file any claims or take any action or institute
any proceeding which Lender may deem necessary or desirable for the collection
of any Collateral or otherwise to enforce the rights of Lender in the
Collateral.  Borrower agrees to sign and
deliver to Lender any additional documents deemed desirable by Lender to effect
the perfection of Lender’s security interest in the Collateral.  Borrower shall pay upon Lender’s request any
out-of-pocket costs and expense paid or incurred by Lender in connection with
the above terms of this Agreement or the funding and closing of this Agreement.

 

12.   EVENTS OF DEFAULT.  Each of the following events shall constitute
an event of default under this Agreement and the Note:  (a) Borrower fails to pay any installment
payment or other amount due under this Agreement or the Note within ten days of
its due date; or (b) Borrower fails to perform or observe any of its
obligations in Sections 3, 9, or 18 hereof; or (c) Borrower fails to perform or
observe any of its other obligations in this Agreement or the Note within 30
days after Lender notifies Borrower of such failure; or (d) any statement,
representation or warranty made by Borrower in this Agreement or in any
document, certificate or financial statement in connection with this Agreement
proves at any time to have been untrue or misleading in any material respect as
of the time when made; or (e) Borrower becomes insolvent or bankrupt, or
Borrower admits its inability to pay its debts as they mature, or Borrower
makes an assignment for the benefit of creditors, or Borrower applies for,
institutes or consents to the appointment of a receiver, trustee or similar
official for Borrower or any substantial part of its property or any such
official is appointed without Borrower’s consent, or Borrower applies for,
institutes or consents to any bankruptcy, insolvency, reorganization, debt
moratorium, liquidation or similar proceeding relating to Borrower or any
substantial part of its property under the laws of any jurisdiction or any such
proceeding is instituted against Borrower without stay or dismissal for more
than 60 days, or Borrower commences a winding up of its affairs, or

 

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Borrower
ceases to do business as a going concern; or (f) with respect to any guaranty,
letter of credit, pledge agreement, security agreement, mortgage, deed of
trust, debt subordination agreement or other credit enhancement or credit
support agreement (whether now existing or hereafter arising) signed or issued
by any party in connection with all or any part of Borrower’s obligations under
this Agreement, the party signing or issuing any such agreement defaults in its
obligations thereunder or any such agreement shall cease to be in full force
and effect or shall be declared to be null, void, invalid or unenforceable by
the party signing or issuing it.

 

As used in this section 12, the term “Borrower”
also includes any guarantor (whether now existing or hereafter arising) of all
or any part of Borrower’s obligations under this Agreement and/or any issuer of
a letter of credit (whether now existing or hereafter arising) relating to all
or any part of Borrower’s obligations under this Agreement, and the term “Agreement”
also includes any guaranty or letter of credit (whether now existing or
hereafter arising) relating to all or any part of Borrower’s obligations under
this Agreement.

 

13.   RIGHTS UPON DEFAULT.  If any event of default exists, Lender may
exercise in any order one or more of the remedies described in the lettered
subparagraphs of this section, and Borrower shall perform its obligations
imposed thereby:

 

(a)  Lender may
require Borrower to turnover any and all Collateral to Lender.

 

(b)  Lender or
its agent may repossess any or all Collateral wherever found, may enter the
premises where the Collateral is located and disconnect, render unusable and
remove it, and may use such premises without charge to store or show the
Collateral for sale.

 

(c)  Lender may
sell any or all Collateral at public or private sale, with or without
advertisement or publication, may lease or otherwise dispose of it or may use,
hold or keep it.

 

(d)  Lender may
require Borrower to pay to Lender on a date specified by Lender,  (i) all accrued and unpaid interest, late
charges and other amounts due under the Note or this Agreement as of such date,
plus (ii) the remaining principal balance of the Note as of such date, plus
(iii) interest at the Overdue Rate on the total of the foregoing (“Overdue Rate”
means an interest rate per annum equal to the higher of 12% or 2% over the
Prime Rate, but not to exceed the highest rate permitted by applicable
law).  If an event of default under section 12(f)
of this Agreement exists, then Borrower will be automatically liable to pay
Lender the foregoing amounts as of the next installment payment date under the
Note unless Lender otherwise elects in writing.

 

(e)  Borrower
shall pay all reasonable costs, expenses and damages incurred by Lender because
of the event of default or its actions under this section, including, without
limitation any collection agency and/or attorney fees and expenses, any costs
related to the repossession, safekeeping, storage, repair, reconditioning or
disposition of the Collateral.

 

(f)  Lender may
sue to enforce Borrower’s performance of its obligations under the Note and
this Agreement and/or may exercise any other right or remedy then available to
Lender at law or in equity.

 

Lender is not required to take any legal process or
give Borrower any notice before exercising any of the above remedies.  If Lender is required to give notice, 10
calendar days advanced notice is reasonable notification.  None of the above remedies is exclusive, but
each is cumulative and in addition to any other remedy available to
Lender.  Lender’s exercise of one or more
remedies shall not preclude its exercise of any other remedy.  No action taken by Lender shall release
Borrower from any of its obligations to Lender. 
No delay or failure on the part of Lender to exercise any right
hereunder shall operate as a waiver thereof nor as an acquiescence in any
default, nor shall any single or partial exercise of any right preclude any
other exercise thereof or the exercise of any other right.  After any default, Lender’s acceptance of any
payment by Borrower under the Note or this Agreement shall not constitute a
waiver by Lender of such default, regardless of Lender’s knowledge or lack of
knowledge at the time of such payment, and shall not constitute a reinstatement
of the Note or this Agreement if this Agreement has been declared in default by
Lender, unless Lender has agreed in writing to reinstate this Agreement and to
waive the default. With respect to any Collateral or any Obligation, Borrower
assents to all extensions or postponements to the time of payment thereof or
any other indulgence in connection therewith, to each substitution, exchange or
release of Collateral, to the release of any party primarily or secondarily
liable, to the acceptance of partial payment thereof or to the settlement or
compromise thereof, all in such matter and such time or times as Lender may
deem advisable.

 

If Lender actually repossesses any Collateral, then
it will use commercially reasonable efforts under the then current
circumstances to attempt to mitigate its damages; provided, that Lender shall
not be required to sell, lease or otherwise dispose of any Collateral prior to
Lender enforcing any of the remedies described above.  Lender may sell or lease the Collateral in
any manner it chooses, free and clear of any claims or rights of Borrower and
without any duty to account to Borrower with respect thereto except as provided
below.  If Lender actually sells or

 

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leases
the Collateral, it will credit the net proceeds of any sale of the Collateral,
or the net present value (discounted at the then current Prime Rate) of the
rents payable under any new lease of the Collateral, against the amounts
Borrower owes Lender.  The term “net” as
used above shall mean such amount after deducting the costs and expenses
described in clause (e) above of this section. Borrower shall remain liable for
any deficiency if the net proceeds are insufficient to pay all amounts to which
Lender is entitled hereunder.

 

14.  LATE CHARGES.  If any installment payment or other amount
payable under the Note or this Agreement is not paid when due, then as
compensation for the administration and enforcement of Borrower’s obligation to
make timely payments, Borrower shall pay with respect to each overdue payment
on demand an amount equal to the greater of fifteen dollars ($15.00) or five
percent (5%) of the each overdue payment (but not to exceed the highest late
charge permitted by applicable law) plus any collection agency fees and
expenses.

 

15.  LENDER’S RIGHT TO PERFORM.  If
Borrower fails to make any payment under this Agreement or fails to perform any
of its other obligations in this Agreement (including, without limitation, its
agreement to provide insurance coverage), Lender may itself make such payment
or perform such obligation, and the amount of such payment and the amount of
the expenses of Lender incurred in connection with such payment or performance
shall be deemed to be additional principal under the Note which is payable by
Borrower on demand.

 

16.   NOTICES; POWER OF ATTORNEY.  (a) Service of all notices under this
Agreement shall be sufficient if given personally or couriered or mailed to the
party involved at its respective address set forth herein or at such other
address as such party may provide in writing from time to time.  Any such notice mailed to such address shall
be effective three days after deposit in the United States mail with postage
prepaid.  (b) With respect to any power
of attorney covered by this Agreement, the powers conferred on Lender thereby:  are powers coupled with an interest; are
irrevocable; are solely to protect Lender’s interests under this Agreement; and
do not impose any duty on Lender to exercise such powers.  Lender shall be accountable solely for
amounts it actually receives as a result of its exercise of such powers.

 

17.  ASSIGNMENT BY LENDER.  Lender and any assignee of Lender,  may,
upon ten (10) days’ prior written notice to Borrower, with or without consent
of Borrower, sell, assign, transfer or grant a security interest in all or any
part of Lender’s rights, obligations, title or interest in the Collateral, the
Note, this Agreement, or the amounts payable under the Note or this Agreement
to any entity (“transferee”).  The
transferee shall succeed to all of Lender’s rights in respect to this Agreement
(including, without limitation, all rights to insurance and indemnity
protection described in this Agreement). 
Borrower agrees to sign any acknowledgment and other documents
reasonably requested by Lender or the transferee in connection with any such
transfer transaction.  Borrower, upon
receiving notice of any such transfer transaction, shall comply with the terms
and conditions thereof.  Borrower agrees
that it shall not assert against any transferee any claim, defense, setoff,
deduction or counterclaim which Borrower may now or hereafter be entitled to
assert against Lender.

 

18.  NO ASSIGNMENT OR LEASING BY
BORROWER.  BORROWER SHALL NOT, DIRECTLY OR INDIRECTLY,
(a) MORTGAGE, ASSIGN, SELL, TRANSFER, OR OTHERWISE DISPOSE OF INTEREST IN THIS
AGREEMENT OR THE COLLATERAL OR ANY PART THEREOF, OR (b) LEASE, RENT, LEND OR
TRANSFER POSSESSION OR USE (OTHER THAN USE IN THE ORDINARY COURSE OF BORROWER’S
BUSINESS) OF THE EQUIPMENT OR ANY PART THEREOF TO ANY PARTY, OR (c) CREATE,
INCUR, GRANT, ASSUME OR ALLOW TO EXIST ANY LIEN ON ITS INTEREST IN THIS
AGREEMENT, THE COLLATERAL OR ANY PART THEREOF.

 

19.  TERMINATION.
This Agreement shall continue in effect until the Obligations have been
indefeasibly paid and performed in full. 
Upon termination of this Agreement, Lender shall, at Borrower’s expense,
take such actions and file such documents as may be necessary or desirable to
release the Collateral from this Agreement.

 

20.  CERTAIN DEFINITIONS.  “Act” means subtitle VII of Title 49 of the United States Code. “Financed
Amount” for any item of Equipment shall mean the amount set forth on the Schedule A-1
that corresponds to that item of Equipment. 
“Lien” means any security interest, lien, mortgage, pledge, encumbrance,
judgment, execution, attachment, warrant, writ, levy, other judicial process or
claim of any nature whatsoever by or of any person.  “Prime Rate” means the prime rate of interest
announced from time to time as the prime rate by Bank One, NA (or its
successors or assigns); provided, that the parties acknowledge that the Prime
Rate is not intended to be the lowest rate of interest charged by said bank in
connection with extensions of credit. 
All terms defined herein are equally applicable to both the singular and
plural form of such terms.

 

21.  CONDITIONS.  Lender is not obligated to make any loan or disburse any principal
hereunder unless: (a)  Lender has
received the Note signed by the Borrower; (b) Lender has received evidence of
all required insurance; (c) in Lender’s sole judgment, there has been no
material adverse change in the financial condition or business of Borrower or
any guarantor; (d) Borrower has signed and delivered to Lender this Agreement
and Lender

 

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has
signed and accepted this Agreement; (e) Lender has received the documents and
instruments and evidence as to satisfaction of the matters specified in any Schedule 2 which may be
attached hereto, each of which shall be satisfactory to Lender in form and
substance and each document or instrument to be duly authorized, executed and
delivered and in full force and effect; 
(f) Lender has received, in form and substance satisfactory to Lender,
such other documents and information as Lender shall reasonably request; and
(g)  Borrower has satisfied all other
reasonable conditions established by Lender.

 

22.  USURY.  It is
not the intention of the parties to this Agreement to make an agreement
violative of the laws of any applicable jurisdiction relating to usury (“Usury
Laws”).  Regardless of any provision in
this Agreement, the Note, or any document in connection therewith, Lender shall
not be entitled to receive, collect or apply, as interest on any Obligation,
any amount in excess of the Maximum Amount (the “Excess”).  As used herein, “Maximum Amount” shall mean
the maximum amount of interest which would have accrued if the unpaid principal
amount of the Obligation outstanding from time to time had borne interest each
day at the maximum amount of interest which lender is permitted to charge on
the Obligation under the Usury Laws.  If
Lender ever receives, collects or applies as interest any Excess, such Excess
shall be deemed a partial repayment of principal and treated hereunder as such;
and if principal is paid in full, any remaining Excess shall be paid to
Borrower.  In determining whether or not
the interest paid or payable under any specific contingency exceeds the Maximum
Amount, Borrower and Lender shall, to the maximum extent permitted under the
Usury Laws, (a) characterize any nonprincipal payment as an expense, fee or
premium rather than as interest, (b) exclude voluntary prepayments and the
effect thereof, and (c) amortize, prorate, allocate and spread in equal parts,
the total amount of interest throughout the entire contemplated term of the
Obligation so that the interest rate is uniform throughout the entire term of
the Obligation; provided that if the Obligation is paid and performed in full
prior to the full contemplated term thereof, and if the interest received for
the actual period of existence thereof exceeds the Maximum Amount, Lender shall
refund to Borrower the Excess, and, such event shall not be subject to any
penalties provided by the Usury Laws.

 

23.  GOVERNING LAW.  THE
INTERPRETATION, CONSTRUCTION AND VALIDITY OF THIS AGREEMENT AND THE NOTE SHALL
BE GOVERNED BY THE LAWS OF THE STATE OF OHIO.

 

24.  MISCELLANEOUS.  (a)
Subject to the limitations herein, this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs,
administrators, successors and assigns. 
(b) This Agreement may be executed in any number of counterparts, which
together shall constitute a single instrument. 
(c) Section and paragraph headings in this Agreement are for
convenience only and have no independent meaning.  (d) The terms of this Agreement shall be severable
and if any term thereof is declared unconscionable, invalid, illegal or void,
in whole or in part, the decision so holding shall not be construed as
impairing the other terms of this Agreement and this Agreement shall continue
in full force and effect as if such invalid, illegal, void or unconscionable
term were not originally included herein. 
(e) All indemnity obligations of Borrower under this Agreement and all
rights, benefits and protections provided to Lender by warranty disclaimers
shall survive the cancellation, expiration or termination of this
Agreement.  (f) Lender shall not be
liable to Borrower for any indirect, consequential or special damages for any
reason whatsoever.  (g) This Agreement
may be amended, but only by a written amendment signed by Lender and
Borrower.  (h) If this Agreement is
signed by more than one Borrower, each of such Borrowers shall be jointly and
severally liable for payment and performance of all of Borrower’s obligations
under this Agreement. (i) This Agreement represents the final, complete and
entire agreement between the parties hereto, and there are no oral or unwritten
agreements or understandings affecting this Agreement or the Collateral.  (j) Borrower agrees that Lender is not the
agent of any manufacturer or supplier, that no manufacturer or supplier is an
agent of Lender, and that any representation, warranty or agreement made by
manufacturer, supplier or by their employees, sales representatives or agents
shall not be binding on Lender.

 

24.  GOVERNMENT REGULATION.  Borrower shall not (a) be or become subject,
at any time, to any law, regulation, or list of any government agency
(including, without limitation, the U.S. Office of Foreign Asset Control list)
that prohibits or limits Lender from making any advance or extension of credit
to Borrower or from otherwise conducting business with Borrower or (b) fail to
provide documentary and other evidence of Borrower’s identity as may be
requested by Lender at any time to enable Lender to verify Borrower’s identity
or to comply with any applicable law or regulation, including, without
limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

 

25. USA PATRIOT ACT NOTIFICATION.  The following notification is provided to
Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C.
Section 5318:

 

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A
NEW ACCOUNT. To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to
obtain, verify, and record information that identifies each person or entity
that opens an account, including any deposit account, treasury management
account, loan, other extension of credit, or other financial services product.
What this means for Borrower: When Borrower opens an account, if

 

6

 

Borrower is an individual, Lender will ask for
Borrower’s name, tax payer identification number, residential address, date of
birth, and other information that will allow Lender to identify Borrower, and
if Borrower is not an individual, Lender will ask for Borrower’s name, taxpayer
identification number, business address, and other information that will allow
Lender to identify Borrower.  Lender may
also ask, if Borrower is an individual, to see Borrower’s driver’s license or
other identifying documents, and if Borrower is not an individual, to see
Borrower’s legal organizational documents or other identifying documents.

 

ALL PARTIES TO THIS AGREEMENT, INCLUDING LENDER AND THE UNDERSIGNED,
IRREVOCABLY CONSENT TO THE JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT
IN OHIO, AND WAIVE ALL RIGHTS TO TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY ON ANY MATTER
WHATSOEVER ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY RELATED TO THE NOTE
OR THIS AGREEMENT.

 

	
  JETRIDE, INC. dba AIRNET PRIVATE

  	
  Accepted By:

  
	
  CHARTERS

  	
  BANC ONE LEASING CORPORATION

  
	
  (Borrower)

  	
   

  
	
   

  	
  By:

  	
  /s/ Stacy R. Roth

  	
   

  
	
  By:

  	
  /s/ Gary W. Qualmann

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Financing Manager

  	
   

  
	
  Title:

  	
  CFO

  	
   

  	
   

  
	
   

  	
  Acceptance Date:

  	
  June 29, 2004

  	
   

  
	
  Witness:

  	
  /s/ John Gordon

  	
   

  	
   

  
													

 

7

 

SCHEDULE A-1

 

Loan
No. 1000119649

 

Financed
Amount: $5,000,000.00

 

DESCRIPTION OF EQUIPMENT

 

	
  Airframe Make/Model:

  	
   

  	
  LEARJET INC. MODEL 60

  
	
   

  	
   

  	
   

  
	
  Airframe Serial No.:

  	
   

  	
  137

  
	
   

  	
   

  	
   

  
	
  U.S. Identification No.:

  	
   

  	
  N360AN

  
	
   

  	
   

  	
   

  
	
  Engine Quantity/Make/Model:

  	
   

  	
  2 PRATT & WHITNEY 305A

  
	
   

  	
   

  	
   

  
	
  Engine Serial No(s).:

  	
   

  	
  CA0109 AND CA0110

  

 

Together with all engines, propellers, avionics,
communication equipment, navigation equipment, instruments, accessories,
attachments, parts, appurtenances, accessions, furnishings and other equipment
attached to, installed in or relating to any of the foregoing property and all
maintenance and service logs and records relating to the foregoing property.

 

Each
engine has 750 or more rated takeoff horsepower or the equivalent of such
horsepower.

 

The
Equipment shall be based at the following location:

 

Spirit
of St. Louis Airport, 18270 Edison Avenue, Chesterfield, St. Louis, Missouri
63005

Name
of Airport and Street Address                             City             County           State

 

This
Schedule A-1 is attached to, and made a part of, the Loan and Security
Agreement with the Loan Number referenced above and contains a true and
accurate description of the Equipment.

 

JETRIDE, INC. dba AIRNET PRIVATE CHARTERS

(Borrower)

 

	
  By:

  	
  /s/ Gary W. Qualmann

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  CFO

  	
   

  	
   

  
						

 

8

 

SCHEDULE 2

 

Attached to Loan and Security Agreement for
Loan No. 1000119649

 

ADDITIONAL CONDITIONS TO FUNDING THE LOAN*

 

1.                                       Airnet Systems, Inc. shall execute and deliver to Lender an
absolute and unconditional guarantee of all obligations of Borrower under the
Loan and Security Agreement and the Note.

 

2.                                       Lender shall receive and find acceptable the
maintenance and service logs and records relating to the Collateral.

 

3.                                       Lender shall receive terminations or releases
of liens in a form recordable with the Federal Aviation Administration from all
creditors with a lien on any part of the Collateral as shown in the FAA lien
records.

 

4.                                       Lender shall receive UCC-3 terminations or
release of liens in recordable form from all creditors with a lien on any part
of the Collateral as shown in state or local lien records.

 

*
The inclusion of additional funding conditions in this Schedule 2 shall
not limit the generality of the conditions set forth in the Agreement.

 

JETRIDE, INC. dba AIRNET PRIVATE CHARTERS

(Borrower)

 

	
  By:

  	
  /s/ Gary W. Qualmann

  	
   

  	
   

  
	
   

  
	
  Title:

  	
  CFO

  	
   

  	
   

  
						

 

9

 

SCHEDULE 3

 

AIRCRAFT  LOAN  INSURANCE REQUEST LETTER

 

	
  (Date)

  	
   

  
	
   

  	
   

  
	
  (Agent)

  	
   

  
	
   

  	
   

  
	
  (Street Address)

  	
   

  
	
   

  	
   

  
	
  (City, State, Zip)

  	
   

  
	
   

  	
   

  
	
  (Telephone Number)

  	
   

  

 

Dear
Agent:

 

Banc
One Leasing Corporation (“BOLC”) requires proof of acceptable insurance
coverage before the loan transaction can close. 
The requirements identified below must stay in full effect throughout
the term of the transaction.

 

1.               The
certificate of insurance must be issued directly to Banc One Leasing
Corporation and shall be issued by a company having an A.M. Best Rating of at
least A with a Financial Size Category of at least VII.

 

2.               The
certificate of insurance must be executed.

 

3.               The
insurance must be primary and any insurance maintained by BOLC or any other
loss payee will be in excess and non-contributory.

 

4.               Policies
must include a Waiver of Subrogation in favor of “Banc One Leasing Corporation,
its parent and affiliates, successors or assigns”.

 

5.               Policies
must include a thirty (30) day prior written Notice of Cancellation to the
Certificate Holder.  Such notice must be
directed by certified mail to: Banc One Leasing Corporation, 1111 Polaris
Parkway, Suite A3, Columbus, Ohio 43240, Attn: 
Insurance Dept.

 

6.               PHYSICAL
DAMAGE

 

a.               Replacement
cost coverage for the equipment identified on the attached Schedule A-1,
which is estimated to be $5,000,000.00.

 

b.              “Banc
One Leasing Corporation, its parent and affiliates, successors or assigns”
shall be named as Loss Payee.

 

c.               Breach
of Warranty in favor “Banc One Leasing Corporation, its parent and affiliates,
successors or assigns”.

 

d.              War
Risk Endorsement, which shall include hijacking and terrorism, in favor of “Banc
One Leasing Corporation, its parent and affiliates, successors or assigns” for
the amount identified in 6a.

 

7.               The
certificate of insurance shall evidence liability coverage in the minimum
amount of $50 million.

 

Please
immediately send proof of the above insurance requirements VIA
FACSIMILE TRANSMITTAL 614-213-0748.

 

PLEASE REFERENCE THE COMPLETE LOAN NUMBER AS LISTED BELOW FOR TRACKING
PURPOSES.

THANK YOU.

 

Sincerely,

JETRIDE, INC. dba AIRNET PRIVATE CHARTERS

 

	
  /s/ Gary W. Qualmann

  	
   

  
	
   (By)

  
	
  1000119649

  	
   

  
	
  (Loan Number)

  
			

 

10Exhibit 4.9

 

AIRNET
SYSTEMS, INC.

Business
Purpose Promissory Note

 

Loan Number: 1000119649

 

	
  Amount $5,000,000.00

  	
  Date: June 29, 2004

  

 

	
  This Note is executed together
  with the Loan and Security Agreement dated as of June 29, 2004 (the “Loan
  Agreement”) and is executed at Columbus   Ohio.

  
	
   

  	
  (City)

  	
  (State)

  	
   

  

 

For value received, receipt
of which is hereby acknowledged, the undersigned  (“Borrower”)
promises to pay to the order of BANC ONE LEASING CORPORATION (“Lender”) at its
principal office or at such other place as Lender may designate from time to
time in lawful money of the United States of America, the principal sum of Five Million and 00/100ths Dollars ($5,000,000.00),
or such lesser portion thereof as may have from time to time been disbursed to,
or for the benefit of Borrower, and as remains unpaid pursuant to the books or
records of Lender, together with interest at the Interest Rate set forth below
on the unpaid balance of principal advanced from the date(s) of disbursement
until paid in full as set forth below. 
Principal sums(s) disbursed and repaid will not be available for
redisbursement.  Interest shall be
calculated on a 360 day year basis with each month consisting of 30 days.

 

Interest
Rate: Six and Seventy Hundredths percent (6.70%) per
annum.

 

1. 
The term of this Note consists of the Interim Term plus the Base
Term.  The Interim Term begins on the
Acceptance Date and continues up to the Commencement Date of the Base Term.  The Acceptance Date is the date that Lender
accepts this Note by initially disbursing principal hereunder.  If the Acceptance Date is on or after the
first (1st) day of the month and up to the fifteenth (15th) day of the month,
then the Commencement Date shall be the fifteenth (15th) day of such month; and
if the Acceptance Date is on or after the sixteenth (16th) day of the month and
up to the last day of the month, then the Commencement Date shall be first
(1st) day of the month following the Acceptance Date.  The Base Term begins on the Commencement Date
and continues for the number of months after the Commencement Date as stated in
Section 3 below.

 

2.  If the Acceptance Date is before the
Commencement Date, then on the Commencement Date of the Base Term, Borrower
shall pay one installment of interest only based upon the number of days in the
Interim Term.

 

3.  During the Base Term, Borrower shall pay
installments of principal and interest in the amounts and on the dates stated
below:

 

(a)  Base Term: 84 months

 

(b)  Amount of each installment payment due during
the Base Term (includes principal and interest):

 

	
   

  	
  83 Monthly
  Payments @ $51,324.29

  
	
   

  	
  1 Monthly
  Payment @ $2,551,324.29

  
			

 

(c)  The first installment payment during the Base
Term shall be paid one month
after the Commencement Date and all subsequent installment payments shall be
paid on the same day of each month
thereafter until paid in full.

 

4.  On or before the date of this Note, Borrower
shall pay a set-up/filing fee in the amount of $0.00.

 

5. 
Payments shall be allocated between principal, interest and fees, if any,
in the discretion of Lender.  Except as
provided in the Prepayment and Substitution Addendum, Borrower may not prepay
the principal sum.  Borrower’s obligation
to pay all installment payments and all other amounts payable

 

1

 

under this Note is absolute and
unconditional under any and all circumstances and shall not be affected by any
circumstances of any character including, without limitation,  (a) any setoff, claim, counterclaim, defense
or reduction which Borrower may have at any time against Lender or any other
party for any reason, or (b) any defect in the condition, design or operation
of, any lack of fitness for use of, any damage to or loss of, or any lack of
maintenance or service for any of the Equipment (as defined in the Loan
Agreement).

 

6. 
This Note is entitled to the benefits, and is subject to the terms and
requirements of, the Loan Agreement executed by Borrower and Lender, which Loan
Agreement, among other things, (a) provides for the making of the loan
evidenced hereby, and (b) provides for events of default, acceleration and
other remedies.  Borrower waives
presentment, demand, protest or notice of any kind in connection with this
Note.

 

7. LENDER AND
BORROWER IRREVOCABLY CONSENT TO THE JURISDICTION AND VENUE OF ANY STATE OR
FEDERAL COURT IN OHIO, AND WAIVE ALL RIGHTS TO TRIAL BY JURY, IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY ON ANY
MATTER WHATSOEVER ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY RELATED TO
THIS INSTRUMENT.

 

	
  JETRIDE,
  INC. dba AIRNET PRIVATE CHARTERS

  	
   

  	
  /s/ John Gordon

  	
   

  
	
  (“Borrower”)

  	
  Witness as to Borrower’s
  signature

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gary W. Qualmann

  	
   

  	
   

  
	
   

  	
   

  
	
  Title: 

  	
  CFO

  	
   

  	
   

  
								

 

2

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