10.2
INITIAL TERM LOAN PROMISSORY NOTE
---------------------------------
$195,000.00 July ____, 2006
Philadelphia, Pennsylvania
FOR VALUE RECEIVED, the undersigned, RONSON CORPORATION, a New Jersey
corporation, RONSON CONSUMER PRODUCTS CORPORATION, a New Jersey corporation, and
RONSON AVIATION, INC., a New Jersey corporation (individually and collectively,
the "Company"), hereby, jointly and severally, promise to pay to the order of
THE CIT GROUP/COMMERCIAL SERVICES, INC. as Agent ("CIT") for itself and for CIT
FINANCIAL LTD., at its office located at ▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇
▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, in lawful money of the United States of America
and in immediately available funds, the principal amount of One Hundred
Ninety-Five Thousand and 00/100 Dollars ($195,000.00), in sixty (60) equal
consecutive monthly principal installments of $3,250.00 each with the first such
installment due and payable on September 1, 2006 and subsequent installments
(including the final installment) due and payable on the first day of each month
thereafter until this Note is paid in full, subject to the payment and
acceleration provisions set forth in the last paragraph of this Note.
The Company further agrees to pay interest at said office, in like
money, on the unpaid principal amount owing hereunder from time to time from the
date hereof on the dates and at the rates specified in Section 8 of the
Financing Agreement of even date herewith between the Company and CIT (the
"Financing Agreement"). Capitalized terms used in this Note and defined in the
Financing Agreement shall have the meanings given to such terms in the Financing
Agreement unless otherwise specifically defined herein.
This Note is a Promissory Note referred to in the Financing Agreement,
evidences the Initial Term Loan made to the Company thereunder, and is subject
to, and entitled to, all provisions and benefits thereof, including optional and
mandatory prepayment, in whole or in part, as provided therein.
Notwithstanding any other provision of this Note to the contrary, upon
the occurrence of any Event of Default specified in the Financing Agreement, or
upon termination of the Financing Agreement for any reason, all amounts then
remaining unpaid on this Note may become, or be declared to be, at the sole
election of CIT, immediately due and payable as provided in the Financing
Agreement.
RONSON CORPORATION
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇
-------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇
Title: President and Chief Executive Officer
RONSON CONSUMER PRODUCTS
CORPORATION
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇
-------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇
Title: President and Chief Executive Officer
RONSON AVIATION, INC.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇
-------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇
Title: President and Chief Executive Officer