JET TRAINING EVENT PROMISSORY NOTE
$10,500.00 DATE____________
Phoenix, Arizona
FOR VALUE RECEIVED, the undersigned, __________________________ (“Pilot”), in accordance with the collective bargaining agreement made and entered into by Mesa Airlines, Inc., a Nevada corporation, Freedom Airlines, Inc., a Nevada corporation, and Air Midwest, Inc., a Kansas corporation including their subsidiaries affiliates and assigns (collectively “Mesa”), and the airline pilots in the service of Mesa, as represented by the Airline Pilots Association International, hereby promises to pay to MESA, or order, the principal sum of TEN THOUSAND FIVE HUNDRED DOLLARS ($10,500.00), as provided below.
1. Pilot promises to pay to the order of Mesa at Phoenix, Arizona, the principal sum at the interest rate specified herein for unmatured amounts according to the terms of payment described herein. Interest on matured unpaid amounts shall accrue at the rate described herein. Demand or notice for payment shall be deemed to have been received by Pilot by Mesa placing in the U.S. Mail a properly addressed notice or demand with sufficient postage which is addressed to the last address that Pilot provided to Mesa in writing. Pilot will be given credit against the principal amount of the note based on the length of service according to the schedule set forth below:
0 to 1 month $10,500.00
1 to 2 months $ 9,625.00
2 to 3 months $ 8,750.00
3 to 4 months $ 7,875.00
4 to 5 months $ 7,000.00
5 to 6 months $ 6,125.00
6 to 7 months $ 5,250.00
7 to 8 months $ 4,375.00
8 to 9 months $ 3,500.00
9 to 10 months $ 2,625.00
10 to 11 months $ 1,750.00
11 to 12 months $ 875.00
After 12 months 0
2. Pilot’s obligations under this Note shall not become enforceable until Pilot’s successful completion of Mesa’s pilot training program. This Note shall be payable on demand. However, if Pilot voluntarily terminates his or her employment with Mesa upon no less than 45 days written notice from the date of successful completion of Mesa’s pilot training program, Mesa will forgive an amount equal to 50% of the amount of the Note then due. In the event Pilot upgrades or transitions prior to the expiration of this Note, this note shall expire upon Pilot successfully completing Mesa’s pilot training program and, if necessary, executing a new Note. Interest on all amounts due hereunder will accrue at the rate of zero percent per annum (0%) before demand and ten percent per annum (10 %) thereafter.
3. Pilot and every endorser and/or guarantor of this Note waives presentment, protest, demand, notice of nonpayment, notice of dishonor, notice of protest, and all other notices with respect to this Note and any guaranty of this Note in the event this Note is not paid in accordance with the terms hereof.
4. Pilot and every endorser and/or guarantor of this Note agrees that any extension or postponement of the time of payment or any other indulgence by the holder of this Note, and/or the addition or release of any party primarily or secondarily liable hereunder may be made without notice or the consent of any Pilot, endorser, or guarantor hereof and without prejudice to the holder of this Note and without releasing any Pilot, endorser, or guarantor hereof; and that no delay or omission in the enforcement hereof, or of any guaranty hereof, or in the exercise of any right hereunder or under any guaranty hereof shall affect the liability of any Pilot, endorser, or guarantor of this Note.
5. Pilot and every endorser and/or guarantor hereof agrees to pay, in addition to all other sums due hereunder, all costs and expenses of collection of this Note and/or enforcing the same including reasonable attorney’s fees, which shall not be less than twenty-percent (20%) of the total amount unpaid hereon at the time of collection and/or enforcement should this Note be placed in the hands of an attorney (whether in-house or otherwise) for collection and/or enforcement, or is collected or enforced through bankruptcy, probate, or other judicial proceeding.
6. Pilot acknowledges that Mesa has the right to offset the unpaid balance of this Note against any compensation owed to Pilot in the event Pilot voluntarily leaves employment with Mesa prior to the expiration of twelve (12) months of the date of successful completion of Mesa’s pilot training program or prior to Pilot’s payment of the outstanding balance of this Note.
7. This Note constitutes the entire agreement between Pilot and Mesa and may not be amended or modified unless such amendment or modification is in writing and signed by Pilot and Mesa.
8. This Note shall be governed by and construed in accordance with the laws of the State of Arizona without giving effect to the principles of conflicts of law. In any litigation in connection with or to enforce this Note Pilot hereby irrevocably consents and confers personal jurisdiction on the courts of the County of Maricopa in the State of Arizona, or on the United States Courts with jurisdiction over the County of Maricopa in the State of Arizona and expressly waives any objections as to venue in any such courts and agrees that service of process may be made on Pilot by mailing a copy of the summons and complaint by registered or certified mail, return receipt requested, to Pilot’s address. Nothing contained herein shall, however, prevent Mesa from bringing any action or exercising any rights within any other state or jurisdiction or from obtaining personal jurisdiction by any other means available by applicable law.
9. Notwithstanding any provision contained herein to the contrary, the applicable rate of interest agreed to herein shall include the applicable interest rate herein, in accordance with the terms of this Note, plus any additional charges, costs and fees incident to this loan to the extent they are deemed to be interest under applicable Arizona law. Should the applicable rate of interest as calculated under this Note exceed that allowed by law, the applicable rate of interest will be the maximum rate of interest allowed by applicable law.
10 In the event that any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part, or in any respect, or in the event that any one of more of the provisions of this Note operate, or would prospectively operate, to invalidate this Note, then and in any of those events such provision or provisions only shall be deemed null and void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby.
11. This Note is not intended to, and shall not be construed to, constitute a contract of employment for a definite period of time or otherwise alter Pilot’s at-will employment status with Mesa.
IN WITNESS WHEREOF, this Promissory Note has been executed on the date first appearing herein.
____________________________________
Signature
________________
Employee Number
This does not look like a training contract to me. Just a promise to pay back the cost of training depending on when you leave.