Promissory Note between Challenger Powerboats, Inc. and Mark Overbye dated January 29, 2007

Summary

Challenger Powerboats, Inc. agrees to repay Mark Overbye $670,000 plus 10% annual interest, with monthly payments starting February 28, 2007 and ending July 28, 2008, when the remaining balance is due. The loan can be prepaid at any time without penalty. If Challenger defaults, including missing payments or bankruptcy, the lender can demand immediate repayment after 30 days' notice. The note is secured by company assets and governed by Missouri law. Late payments incur a 1% monthly fee. Laurie Phillips signed as President & CEO for Challenger.

EX-10.9 10 ex109.txt EX-10.9 EXHIBIT 10.9 PROMISSORY NOTE --------------- Date: January _29_, 2007 -- Note Amount: $670,000 PROMISE TO PAY: Challenger Powerboats, Inc., ("Borrower"), 300 Westlink ---------------- Drive, Washington, Missouri, promises to pay to the order of Mark Overbye 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 ------- 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: ------- a. Borrower fails to make any payment when due; b. A receiver is appointed for any part of Borrower's property, Borrower 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.; -------- 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. -------- NOTEHOLDERS RIGHTS UPON DEFAULT: Upon default, Noteholder may declare the --------------------------------- 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, Borrower 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 ---------- set forth in the Security Agreement between Challenger and Borrower dated January _29_, 2007. -- GENERAL PROVISIONS: Noteholder may delay or forego enforcing any of its ------------------- 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 ---- hereof. BORROWER: Challenger Powerboats, Inc. By: /s/ Laurie Phillips Date: January 29, 2007 --------------------- ------------------ Laurie Phillips, President & CEO