Exhibit
10.6
RIDER TO SECURITY
AGREEMENT
EXECUTED BY NONBORROWER
GRANTOR
(Premier Power
California)
That certain
Commercial Security Agreement dated July 13, 2009 (
“Security Agreement” ) is given as security to
UMPQUA BANK, an Oregon corporation (“ Lender ”)
by PREMIER POWER RENEWABLE ENERGY, INC., a California corporation("
Grantor " and “Nonborrower Grantor ”) to
secure Indebtedness of PREMIER POWER RENEWABLE ENERGY, INC.,a
Delaware corporation (“ Borrower ”) to
Lender. Capitalized terms used but not defined in this
Rider shall have the meanings ascribed in the Security
Agreement. In consideration of the Loan extended by the
Lender to Borrower, Grantor, as Nonborrower Grantor, agrees as
follows:
1. The
obligations under the Security Agreement are joint and several and
are independent of and in addition to the undertakings of Borrower
pursuant to the Notes and the other documents evidencing and
securing the Loans (the “ Loan Documents ”), any
evidence of indebtedness issued in connection with the Loan to
Borrower, or any deed of trust or security agreement given to
secure the Loan to Borrower, any guaranties given in connection
with the Loan to Borrower, and any other obligations of Borrower or
any guarantor to Lender;
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Lender may at
any time, or from time to time, in its sole discretion:
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(A) extend
or change the time of payment or performance or the manner, place,
or terms of payment or performance of any of the
Indebtedness;
(B) exchange,
release, or surrender any of the collateral security, or any part
of it, by whomever deposited, which is now or may later be held by
Lender in connection with any of the Indebtedness;
(C) sell
or purchase any of the collateral at public or private sale, or at
any broker's board, in the manner permitted by law, and after all
costs and expenses of every kind for collection, sale, or delivery,
the net proceeds of any sale may be applied by Lender on any of the
Indebtedness; and
(D) settle
or compromise with Borrower, or any other person liable, any of the
Indebtedness, or subordinate the payment of it, or any part of it,
to the payment of any other debts or claims, that may at any time
be due or owing to Lender or any other person or entity;
3. Lender
will be under no obligation to marshal any assets in favor of
Borrower or Nonborrower Grantor or in payment of any of the
Indebtedness; and
4.
The Nonborrower Grantor’s liability hereunder shall be the
immediate, direct, and primary obligation of the Nonborrower
Grantor and shall not be contingent upon the Lender’s
exercise or enforcement of any remedy it may have against the
Borrower or any other person, or against any collateral for the
Loan to Borrower or other security for any of the
Indebtedness.
5. Nonborrower
Grantor waives:
(A) presentment,
demand, protest, notice of acceptance, notice of dishonor, notice
of nonperformance, and any other notice with respect to any of the
Indebtedness and this Security Agreement, and promptness in
commencing suit against any party, or in giving any notice to or
making any claim or demand on Nonborrower Grantor;
(B) any
right to require Lender to proceed against Borrower or any other
guarantor, proceed against or exhaust any security held from
Borrower or any other guarantor, or pursue any remedy in Lender's
power;
(C) any
defense based on any legal disability or other defense of Borrower,
any other guarantor, or other person or by reason of the cessation
or limitation of the liability of Borrower from any cause other
than full payment of all sums payable under the Note and the
performance of the Indebtedness;
(D) any
defense based on any lack of authority of the officers, directors,
partners, or agents purporting to act on behalf of Borrower or any
principal of Borrower or any defect in the formation of Borrower or
any principal of any Borrower;
(E) to
the fullest extent permitted by law, all rights and benefits under
Civil Code § 2809 purporting to reduce a guarantor's
obligations in proportion to the principal obligation, including
without limitation, any defense based on any statute or rule of law
that provides that the obligation of a surety must be neither
larger in amount nor in any other respects more burdensome than
that of a principal;
(F) any
defense based on the application by Borrower of the proceeds of the
Loan to Borrower for purposes other than the purposes represented
by Borrower to Lender or intended or understood by Lender or
Nonborrower Grantor, or based on Lender’s acts or omissions
in administration of the Loan to Borrower;
(G) any
defense it may acquire by reason of Lender's election of any remedy
against Nonborrower Grantor or Borrower or both, including, without
limitation, election by Lender to exercise its rights
under