Document:

Exhibit
4.2

 

AIRNET SYSTEMS, INC.

Business Purpose Promissory Note

 

Loan
Number: 1000119495

 

	
  Amount $7,500,000.00

  	
   

  	
  Date: June 15, 2004

  

 

This Note is executed together with the Loan and Security Agreement
dated as of June 15,
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 Seven Million Five Hundred Thousand and 00/100ths
Dollars ($7,500,000.00), 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-Four Hundredths percent (6.74%) 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 @ $77,184.62

  1
Monthly Payment @ $3,827,184.62

 

(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.

  	
   

  
	
  (Borrower)

  
	
   

  
	
  By:

  	
    /s/ Gary W. Qualmann

  	
   

  
	
  Title:

  	
  CFO

  	
   

  
						

 

2Exhibit
4.3

 

AIRNET SYSTEMS, INC.

Corporate Guaranty

 

Borrower:  JETRIDE, INC.

 

Loan Documents:                                 all documents executed by Borrower in
connection with Loan No. 1000119495, including the Loan and Security Agreement
(the “Loan Agreement”) and the Business Purpose Promissory Note

 

Financed Amount:                            $7,500,000.00

 

1.  For
valuable consideration, the receipt of which is hereby acknowledged, the
undersigned jointly and severally unconditionally guarantee to BANC ONE LEASING
CORPORATION (“Lender”) the full and prompt performance by the Borrower
identified above (“Borrower”) of all Obligations (as defined in the Loan
Documents) which Borrower now has or may hereafter have to Lender, and jointly
and severally unconditionally guarantee the prompt payment when due (whether at
scheduled maturity, upon acceleration or otherwise) of the Obligations, and all
costs and expenses of and incidental to collection of any of the foregoing,
including reasonable attorneys’ fees.  In
addition to covering all present Obligations of Borrower to Lender, it is the
undersigned’s express intention that this Guaranty shall cover all future
Obligations of Borrower to Lender, whether or not such Obligations are reduced
or entirely extinguished and thereafter increased or are reincurred, which are
related to the Loan Documents identified above (“Loan Documents”), whether or
not such Obligations are specifically contemplated by the undersigned,
Borrower, and Lender as of the date hereof.

 

2.  This is an
absolute and unconditional guarantee of payment and not of collection.  As a condition of the liability of the
undersigned, Lender shall not be required to resort to, enforce, or exhaust any
of its remedies against the Borrower or any other party who may be liable for
payment on any of the Obligations or to resort to, marshall, enforce, or
exhaust any of its remedies against any property given, leased, or held as
security for this Guaranty or any of the Obligations.

 

3.  The
undersigned hereby waive and grant to Lender the right at any time and from time
to time, without notice to the undersigned and without in any way affecting the
liability of the undersigned, to extend other and additional credit, leases,
loans or financial accommodations to Borrower apart from the Obligations, to
deal in any manner as it shall see fit with any of the Obligations of Borrower
to Lender and with any property given, leased, or held as security in
connection with any of the Obligations, including, but not limited to, (a)
accepting partial payments on account of any of the Obligations, (b) granting
extensions or renewals of all or any part of any of the Obligations, (c)
releasing, surrendering, exchanging, dealing with, abstaining from taking,
taking, abstaining from perfecting, perfecting, or accepting substitutes for any
or all property given, leased, or held as security in connection with any of
the Obligations, (d) modifying, waiving, supplementing or otherwise changing
any of the terms, conditions or provisions contained in any of the Obligations
and (e) the addition or release of any other party or person liable hereon,
liable on the Obligations or liable on any other guaranty executed to guarantee
any of Borrower’s Obligations.  The
undersigned jointly and severally hereby agree that any and all settlements,
compromises, compositions, accounts stated and agreed balances made in good
faith between Lender and Borrower shall be binding upon the undersigned.

 

4.  Every
right, power and discretion herein granted to Lender shall be for the benefit
of the successors or assigns of Lender and of any transferee or assignee of any
of the Obligations covered by this Guaranty, pursuant to any assignment made
under Section 17 of the Loan Agreement, and in the event any such
Obligation shall be transferred or assigned, every reference herein to Lender
shall be construed to mean, as to such Obligation, the transferee or assignee
thereof.  This Guaranty shall be binding
upon each of the undersigned’s executors, administrators, heirs, successors and
assigns.

 

5.  This
Guaranty shall continue in force for so long as Borrower shall be obligated to
Lender, and thereafter until Lender shall have actually received written notice
of the termination hereof from the undersigned, it being contemplated that
Borrower may borrow, lease, repay and subsequently borrow money from or lease
property from, or become obligated to, Lender from time to time, and the
undersigned, not having given notice of the termination hereof as herein
provided for, shall be deemed to have permitted this Guaranty to remain in full
force and effect for the purpose of inducing Lender to make further leases or
loans to Borrower; provided, however, no notice of termination of this Guaranty
shall affect in any manner the rights of Lender arising under this Guaranty
with respect to the following: (a) any of the Obligations incurred by Borrower
in connection with the Loan Documents, whether

 

1

 

such
obligation is in the form of a loan agreement or promissory note; or (b)  any of the Obligations incurred by Borrower
prior to receipt by Lender of written notice of termination or any of the
Obligations incurred after receipt of such written notice pursuant to a written
agreement entered into by Lender prior to receipt of such notice.  The undersigned expressly waive notice of the
incurring by Borrower of any of the Obligations to Lender.  The undersigned also waive presentment,
demand of payment, protest, notice of dishonor or nonpayment of or nonperformance
of any of the Obligations.

 

6.  The
undersigned hereby waive any claims or rights which they might now have or
hereafter acquire against Borrower or any other person primarily or
contingently liable on any of the Obligations of Borrower, which claims or
rights arise from the existence or performance of the undersigned’s obligations
under this Guaranty or any other guaranty or under any instrument or agreement
with respect to any leased property or any property constituting collateral or
security for this Guaranty or any other guaranty, including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution,
indemnification, or any right to participate in any claim or remedy of Lender
or any other creditor which the undersigned now has or hereafter acquires,
whether such claim or right arises in equity, under contract or statute, at
common law, or otherwise.

 

7.  Lender’s
rights hereunder shall be reinstated and revived, and this Guaranty shall be
fully enforceable, with respect to any amount at any time paid on account of
the Obligations which thereafter shall be required to be restored or returned
by Lender upon the bankruptcy, insolvency or reorganization of the Borrower,
the undersigned, or any other person, or as a result of any other fact or
circumstance, all as though such amount had not been paid.

 

8.  The
undersigned jointly and severally agree to pay to Lender all costs and
expenses, including reasonable attorneys’ fees, incurred by Lender in the
enforcement or attempted enforcement of this Guaranty, whether or not suit is
filed in connection therewith, or in the exercise by Lender of any right,
privilege, power or remedy conferred by this Guaranty.

 

9.  In making
their decision to guarantee all Obligations now existing or hereafter arising,
the undersigned represent and warrant that they have relied exclusively on
their own independent investigation of Borrower and all property given, leased,
or held as security in connection with any of the Obligations.  The undersigned agree that they have
sufficient knowledge of the Borrower and of any property given, leased, or held
as security in connection with any of the Obligations to make an informed
decision about this Guaranty and agree that Lender has no duty or obligation to
the undersigned to disclose any information in its possession or control about
Borrower and property given, leased, or held as security in connection with any
of the Obligations.  The undersigned
warrant to Lender that they have adequate means to obtain from the Borrower on
a continuing basis information concerning the financial condition of the
Borrower and that they are not relying on Lender to provide such information
either now or in the future.

 

10.  As long as
any indebtedness under any of the Obligations remains unpaid or any credit is
available to Borrower under any of the Obligations, the undersigned agree to
furnish to Lender:  (a) annual financial
statements setting forth the financial condition and results of operation of
the undersigned (financial statements shall include balance sheet, income
statement, changes in financial position and all notes thereto) within 120 days
of the end of each fiscal year of the undersigned; (b) quarterly financial
statements setting forth the financial condition and results of operation of
the undersigned within 60 days of the end of each of the first three fiscal
quarters of the undersigned; and (c) such other financial information as Lender
may from time to time reasonably request including, without limitation,
financial reports filed by the undersigned with federal or state regulatory
agencies.

 

11.  No
postponement or delay on the part of Lender in the enforcement of any right
hereunder shall constitute a waiver of such right.  The failure of any person or entity to sign
this Guaranty shall not discharge the liability of any of the undersigned.

 

12.  This
Guaranty remains fully enforceable irrespective of any claim, defense or
counterclaim which the Borrower may or could assert on any of the Obligations
including but not limited to failure of consideration, breach of warranty,
payment, statute of frauds, statute of limitations, fraud, bankruptcy, accord
and satisfaction, and usury, same of which the undersigned hereby waive along
with any standing by the undersigned to assert any said claim, defense or counterclaim.

 

13.  This
Guaranty contains the entire agreement of the parties and supersedes all prior
agreements and understandings, oral or written, with respect to the subject
matter hereof.  This Guaranty is not
intended to replace or supersede any other guaranty which the undersigned have
entered into or may enter into in the future. 
The undersigned may enter into additional guaranties in the future which
may or may not refer to the Loan Documents and such guaranties are not intended
to replace or supersede this Guaranty unless specifically provided in that
additional guaranty.

 

2

 

14.  The
interpretation, construction and validity of this Guaranty shall be governed by
the laws of the State of Ohio.  With respect
to any action brought by Lender against the undersigned to enforce any term of
this Guaranty, the undersigned hereby irrevocably consents to the jurisdiction
and venue of any state or federal court in Franklin County, Ohio, where Lender
has its principal place of business and where payments are to be made by
Borrower and the undersigned.

 

ALL
PARTIES TO THIS GUARANTY, INCLUDING THE UNDERSIGNED AND LENDER, 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 GUARANTY.

 

	
  Date:

  	
  June 15, 2004

  	
   

  	
   

  
	
   

  	
   

  
	
  GUARANTOR:

  	
   

  
	
   

  	
   

  
	
  AIRNET SYSTEMS, INC.

  	
  /s/ John Gordon

  	
   

  
	
   

  	
  Witness as to signature

  
	
  By:

  	
  /s/ Gary W. Qualmann

  	
   

  	
   

  
	
   

  	
  /s/ John Gordon

  	
   

  
	
  Title:

  	
  CFO

  	
   

  	
  Print witness name

  
	
   

  	
   

  
	
  Guarantor’s Address:

  	
   

  
	
   

  	
   

  
	
  3939 International Gateway

  	
   

  	
   

  
	
   

  	
   

  
	
  Columbus, Ohio 43219

  	
   

  	
   

  
								

 

3

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