SEC Contract Filing

Filing Date: 2024-04-02

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<DIV><FONT size="1" style="font-size:1pt;color:white">Contrail Aviation Support, LLC Loan No. 20006998847 PROMISSORY NOTE TERM NOTE I $10,000,000.00 March 28, 2024 FOR VALUE RECEIVED, the undersigned CONTRAIL AVIATION SUPPORT, LLC &#8220;Borrower&#8221;), promises to pay to the order of OLD NATIONAL BANK (the &#8220;Lender&#8221;) the principal sum of Ten Million Dollars ($10,000,000.00), or such lesser amount as Lender may in fact advance to or for the benefit of Borrower in accordance with the terms of this Note and the Master Loan Agreement (as is shown to be outstanding according to the records of Lender), together with interest thereon as hereinafter provided. 1. RATE OF INTEREST The principal amount of the Loan outstanding from time to time shall bear interest at the variable rate of 1-MONTH SOFR Rate (as defined in the Master Loan Agreement referenced below) plus 3.11448% per annum and such rate shall be adjusted on April 28, 2024 and on the 28th day of each month thereafter until the Term Loan I Maturity Date. 2. PAYMENTS Payments of both principal and interest are to be made in immediately available funds in lawful currency of the United States of America at the office of Lender, or such other place as the holder hereof shall designate to the undersigned in writing. Unless required by applicable law, and prior to any default being declared, payments will be applied first to any accrued unpaid interest; then to principal; then to escrow; then to any late charges; and then to any unpaid collection costs. Funds shall be deemed received by Lender on the next business day if not received by 12:00 p.m. local time at the location payments hereunder are to be made. Borrower shall make payments of: (a) eighteen (18) consecutive monthly payments of accrued unpaid interest, commencing on April 28, 2024, and continuing on the 28th day of each successive month thereafter; (b) Principal Reduction Payments as set forth in Section 5 below, commencing on April 28, 2024, and continuing on the last day of each successive month thereafter; and (c) A final payment of all outstanding principal and accrued and unpaid interest together with such other amounts as shall then be due and owing from Borrower to Lender under the Term Loan I on the Term Loan I Maturity Date (as defined below). 3. FINAL PAYMENT MATURITY DATE Notwithstanding anything set forth above, all sums due under this Note, both principal and interest, if not sooner paid, shall be due and payable on the first to occur of: (i) September 28, 2025; or (ii) the date on which Term Loan I is accelerated as provided in this Note or the Master Loan Agreement (&#8220;Term Loan I Maturity Date&#8221;). </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> 2 4. PREPAYMENT; MINIMUM FINANCE CHARGE Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. In any event, even upon full prepayment of this Note, Borrower understands that Lender is entitled to a minimum finance charge of $95.00. Other than Borrower&#8217;s obligations to pay any minimum finance charge, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower&#8217;s obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower making fewer payments. Borrower agrees not to send Lender payments marked &#8220;paid in full,&#8221; &#8220;without recourse,&#8221; or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender&#8217;s rights under this Note, and Borrower will remain obligated to pay any further amounted owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes &#8220;payment in full&#8221; of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Old National Bank, PO Box 3728, Evansville, IN 47736-3728. 5. MANDATORY PREPAYMENTS In addition to the payments set forth in Section 2 above, Borrower shall make a monthly principal payment equal to one hundred percent (100%) of the amount of the gross sales proceeds collected that are derived from any of the Engines or any of its components (each a &#8220;Principal Reduction Payment&#8221;) during the prior month as of the last day of such month. 6. PAYMENT DUE DATE/FAILURE TO PAY (a) All payments due under this Note shall be made without demand and received on the dates provided in Section 2 above; (b) In the event of a default as defined in this Note, or as set forth in the Master Loan Agreement or any Collateral Documents or Guaranty Agreements, at the option of Lender, for so long as the default exists, interest on the outstanding principal balance hereof shall accrue and will be paid at the rate in effect from time to time hereunder plus an additional 3% per annum, but in no event shall such default