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Exhibit 10.47 THIS JUNIOR SUBORDINATED SECOND AMENDED
AND RESTATED NOTE AND THE INDEBTEDNESS EVIDENCED HEREBY ARE
SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THE
SUBORDINATION AGREEMENT (AS SUCH TERM IS DEFINED IN THE SELLER NOTE
SECURITIES PURCHASE AGREEMENT) TO THE SENIOR DEBT (INCLUDING
INTEREST) OWED BY THE COMPANY TO THE HOLDERS OF SENIOR DEBT ISSUED
PURSUANT TO THE SENIOR CREDIT AGREEMENT AND ANY SENIOR REFINANCING
AGREEMENT (AS EACH SUCH TERM IS DEFINED IN THE SUBORDINATION
AGREEMENT), AND EACH HOLDER OF THIS JUNIOR SUBORDINATED SECOND
AMENDED AND RESTATED NOTE BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND
BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT. THIS PROMISSORY
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED OR UNDER ANY STATE SECURITIES LAWS, AND THEREFORE CANNOT BE
SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR ASSIGNED UNLESS IT IS
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER
ALL APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN EXEMPTION
THEREFROM IS AVAILABLE. FOR PURPOSES OF SECTIONS 1272, 1273 AND
1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS
PROMISSORY NOTE WAS ISSUED WITH "ORIGINAL ISSUE DISCOUNT". YOU MAY
CONTACT THE GENERAL COUNSEL OF THE MAKER BY PHONE AT THE
MAKER’S MAIN PHONE NUMBER TO LEARN AT NO COST TO YOU THE
ORIGINAL ISSUE DISCOUNT AND YIELD TO MATURITY FOR THIS PROMISSORY
NOTE BASED ON ITS ISSUANCE DATE. ALION SCIENCE AND TECHNOLOGY
CORPORATION Junior Subordinated Second Amended and Restated Note
due August 6, 2013
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$39,900,000 Original Principal Amount
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December 20, 2002 and as amended and
restated August 29, 2008
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$51,703,538.40* Capitalized Principal Amount
effective as of December 21, 2008
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*
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reflects the intended $3,000,000 principal prepayment
November 3, 2008 (see below)
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ALION SCIENCE AND TECHNOLOGY
CORPORATION, a Delaware corporation (the "Company"), for value
received, hereby promises to pay to Illinois Institute of
Technology, an Illinois not for profit corporation, or registered
assigns, the sum of (a) the principal amount of Thirty-Nine
Million Nine Hundred Thousand DOLLARS ($39,900,000) (the "Original
Principal Execution Version
-1-
Amount"), which Original Principal Amount shall be increased by
such amount of accrued interest in the form of PIK Notes and
Compounding PIK Notes, all as defined and more fully set forth
herein, and, in particular, the immediately following (b), which
the Company will capitalize to the principal amount of this Note on
and as of December 21, 2008 or such lesser aggregate principal
amount as may then be due and payable pursuant to the terms and
conditions of this Note plus (b) interest accrued in the form
of the PIK Notes and the Compounding PIK Notes (each as hereinafter
defined) on August 6, 2013, with interest (computed on the
basis of the actual number of days elapsed over a 360-day year) on
the unpaid balance of such Original Principal Amount at the rates
set forth herein beginning on December 20, 2002 through and
including the sixth anniversary of the Closing Date (as defined in
the Seller Note Securities Purchase Agreement). After said sixth
anniversary of the Closing Date, interest on the Capitalized
Principal Amount (as defined below) shall be payable in the manner
provided below. Prior to the sixth
anniversary of the Closing Date, interest on the Notes will be
payable quarterly in arrears in the form of payment-in-kind notes
("PIK Notes"). Except as otherwise and further set forth below,
interest paid in PIK Notes will not be compounded and PIK Notes
will therefore be non-interest bearing obligations, payable as
provided in the PIK Notes. After the sixth anniversary of the
Closing Date, interest is payable quarterly in arrears. The first
installment of interest on the Notes for the Original Principal
Amount was payable on March 31, 2003, and thereafter interest
is payable on said Notes, quarterly in arrears on the last Business
Day of March, June, September and December of each year, commencing
June 30, 2003; provided , however, that for all
interest payable after the Interest Adjustment Date (as defined
below), such quarterly payments of interest on the Notes for the
Capitalized Principal Amount shall be due and payable on
October 1, January 2, April 1 and July 1 of each year,
and the first payment of interest after the Interest Adjustment
Date will be due and payable on April 1, 2009 (and such first
payment of interest shall include interest accrued during the
months of January, 2009 through March, 2009 plus interest accrued
during the time December 21, 2008 through and including
December 31, 2008). The scheduled quarterly payments of
accrued interest after the Interest Adjustment Date shall continue
to be payable in arrears until the principal hereof shall have
become due and payable (whether at the Maturity Date (as defined in
the Seller Note Securities Purchase Agreement) or at a date fixed
for prepayment or by declaration or otherwise), and with interest
on any overdue principal (including any overdue prepayment of
principal) and, to the extent permitted by applicable law, any
overdue installment of interest, at a rate equal to 3% per annum
above the interest rate then applicable to non-overdue installments
of principal or interest until paid, payable quarterly as aforesaid
or, at the option of the holder hereof, on demand and, upon
acceleration of this Note; provided that, and as further
provided in the Seller Note Securities Purchase Agreement, in no
event shall the amount payable by the Company as interest on this
Note exceed the highest lawful rate permissible under any law
applicable hereto. Payments of principal and interest hereon shall
be made, except with regard to interest payable in the form of PIK
Notes as provided herein, in lawful money of the United States of
America by the method and at the address for such purpose specified
in the Seller Note Securities Purchase Agreement, and such payments
shall be overdue for purposes hereof if not made on the originally
scheduled date of payment therefor, without giving effect to
any
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