Exhibit
10.2
PROMISSORY NOTE
(Line of Credit
Note)
Borrower:
PREMIER POWER RENEWABLE ENERGY, INC.
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4961 Windplay Drive,
#100
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2998 Douglas Blvd., Suite
100
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Principal
Amount: $7,000,000.00
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Date of Note: July 13,
2009
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PROMISE TO
PAY. PREMIER
POWER RENEWABLE ENERGY, INC., a Delaware corporation ("
Borrower "), promises to pay to UMPQUA BANK (" Bank
"), or order, the principal amount of SEVEN MILLION AND NO/100
Dollars ($7,000,000.00) or so much as may be outstanding, together
with interest on any principal amounts remaining unpaid from time
to time from the date of this Promissory Note (“ Note
”) until payment in full, to be calculated as set forth
below.
LOAN
AGREEMENT. This Note is made subject to the
terms and conditions of that certain Loan Agreement between
Borrower and Bank dated July __, 2009, as may be amended from time
to time (the “ Loan Agreement
”). This Note is the Note referred to in the Loan
Agreement
DEFINED
TERMS. Capitalized terms not defined herein
shall have the meaning defined in the Loan Agreement.
ADVANCES. Advances under this Note will be
made pursuant to the terms and conditions of the Loan
Agreement.
INTEREST
RATE . Interest shall accrue on the
principal balance outstanding under this Note at the rate of which
is equal to the Prime Rate, as it may change from time to time;
provided, however, that in no event shall the principal balance
outstanding under this Note bear interest at a rate that is less
than Five Percent (5.00%) per annum. The Prime Rate is not
necessarily the lowest rate charged by Bank on its
loans. Depending on the circumstances, such as the
amount and term of the loan, the creditworthiness of the borrower
or any guarantor, the presence and nature of collateral and other
relationships between the borrower and the Bank, loans may be
priced at, above or below the Prime Rate. If the Prime
Rate becomes unavailable during the term of this loan, Bank may
designate a substitute index after notice to
Borrower. Bank will tell Borrower the current Prime Rate
upon Borrower's request. Borrower understands that Bank
may make loans based on other rates as well. The
interest rate change will not occur more often than each
day. The interest rate payable hereunder shall fluctuate
with any change in the Prime Rate, and such fluctuation in the
interest rate shall be effective on the effective date of each and
every change in the Prime Rate. Interest shall accrue
daily on the outstanding principal balance on the basis of a 360
day year for the actual number of days elapsed on which any sums
are outstanding hereunder.
MATURITY
DATE. All principal, interest and
other amounts owing under this Note shall be due and payable in
full on July 13, 2011 (the “ Maturity Date
”).
PAYMENTS. Interest on the principal amount
outstanding shall be payable monthly in arrears commencing on
August 1, 2009, and on the first day of each month thereafter.
Should interest not be timely paid, it shall become a part of the
principal and thereafter bear interest as provided herein. All
principal, interest and other amounts owing under this Note shall
be due and payable in full on the Maturity Date. Both principal and
interest are payable in lawful money of the United States of
America in same day funds at Bank's address shown above or at such
other place as Bank may designate in writing. Whenever any payment
to be made under this Note is stated to be due on a day other than
a Business Day, that payment may be made on the next succeeding
Business Day, and the extension of time will in that case be
included in the computation of payment of
interest. However, if the extension would cause the
payment to be made in a new calendar month, that payment will be
made on the next preceding Business Day, and the interest will be
payable for the shorter period.
REVOLVING
LINE OF CREDIT. This Note
evidences a revolving line of credit in that, to the extent that
Advances have been repaid, new Advances may be made up to the
Maximum Line Amount. Advances under this Note shall be
requested pursuant to the provisions of the Loan
Agreement. Borrower agrees to be liable for all sums
either: (A) advanced in accordance with the instructions
of an Authorized Party set forth in the Loan Agreement, or (B)
credited to any of Borrower's accounts with Lender, or (C) paid to
the benefit of Borrower. The unpaid principal balance
owing on this Note at any time may be evidenced by endorsements on
this Note or by Lender's internal records, including daily computer
print-outs. In the Event of Default which is continuing
beyond any applicable Cure Period, Lender will have no obligation
to Advance funds under this Note.
PREPAYMENT;
MINIMUM INTEREST 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), exc