PROMISSORY NOTE
Amount:
$300,000.00
FOR VALID CONSIDERATION , the receipt and sufficiency of which are
hereby acknowledged, and in consideration for the terms and
conditions set forth in the Gaming Economic Development Loan
Agreement between the Wisconsin Department of Commerce
(“Department”) and Telkonet, Inc.
(“Borrower”) also identified as Contract #GEDL
FY09-19444, the Borrower promises to pay the Department the
principal sum of Three Hundred Thousand and 00/100 Dollars
($300,000.00), or so much thereof as may be advanced by the
Department, together with interest, in accordance with the terms
and conditions hereinafter set forth.
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DEFINITIONS. Terms used in this Promissory Note shall have
the same meanings as in the Agreement.
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INTEREST
RATE. Except
as otherwise provided herein, this Promissory Note shall bear
interest on the unpaid principal balance at the annual rate of Two
(2) percent, from the date of actual disbursement of the funds, or
any portion thereof, to the Borrower until this Promissory Note is
paid in full. Interest shall be computed based upon a
365-day year.
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TERM. The term of this Note shall commence on the
Effective Date with all principal, accrued interest and other
amounts owed hereunder being due and payable not later than
December 1, 2016.
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DEFERRAL
PERIOD. The
Borrower’s payments of principal hereunder shall be deferred
until December 31, 2010. All interest from the date of
the Department’s first disbursement shall be paid in
accordance with the terms of Paragraph 5.
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5.
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PAYMENT. Payment of interest and principal shall be made
in the following manner:
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Payment of any
and all interest that accrues from the date of disbursement shall
commence on January 1, 2010 and continue on the first day of each
consecutive month thereafter through and including December 31,
2010. The Borrower shall make payments in twelve equal
monthly installments of $500.00 each.
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Commencing on
January 1, 2011 and continuing on the first day of each consecutive
month thereafter through and including November 1, 2016, the
Borrower shall pay this Promissory Note in 71 equal monthly
installments of $4,426.00 each; followed by a final installment on
December 1, 2016 which shall include all remaining principal,
accrued interest and other amounts owed by the Borrower
hereunder. Payments shall be applied first to interest
accrued to date of receipt, and the balance, if any, to
principal.
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Time shall be
of the essence as to the Borrower's payment of all principal,
accrued interest, and other amounts owed hereunder, which shall be
delivered to the Department at the following address, or such other
place or places as the Department may designate, prior to the close
of business on the due dates set forth above:
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Dept. of
Commerce - Administrative
Attn: Contract
GEDL FY09-19444
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If the Borrower
fails to pay any amounts owed within ten (10) calendar days of the
date when due, then, from the date of default until such delinquent
payment is paid in full, the Borrower shall pay the
Departm
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