JP MORGAN PROMISSORY NOTE

Exhibit 10(i)40

 

 

$15,000,000.00

Albany, New York

 

Date: April 23, 2008

          FOR Value Received, CENTRAL HUDSON GAS & ELECTRIC CORPORATION, a New
York corporation (the “Debtor”), HEREBY PROMISES TO PAY to the order of JPMORGAN
CHASE BANK, N.A. (the “Bank”), at its offices located at 12 Corporate Woods
Blvd., Albany, New York 12211, or at such other place as the Bank or any holder
hereof may from time to time designate, the principal sum of Fifteen Million and
00/100 Dollars ($15,000,000), or such lesser amount as may constitute the
outstanding balance hereof, in lawful money of the United States, on or before
the earlier of (i) On demand; (ii) June 30, 2009 (the “Termination Date”); or
(iii) the date set forth on the Grid Schedule attached hereto as the maturity
date (the “Maturity Date”) with respect to each loan made hereunder (each a
“Loan” and collectively, the “Loans”); and to pay interest in like money at said
office or place from the date hereof on the unpaid principal balance of each
Loan made hereunder at a rate equal to the “Applicable Interest Rate” (as
hereinafter defined) for such Loan, which interest shall be payable on the first
day of each month commencing with the first month immediately following the date
of a Loan and on the Maturity Date for such Loan or until such Loan shall be due
and payable by acceleration or otherwise, and thereafter, on demand. Interest
after the Maturity Date for a Loan or after a Loan becomes due and payable by
acceleration or otherwise shall be payable at a rate of two percent (2%) per
annum above the Bank’s Prime Rate, which rate shall be computed for the actual
number of days elapsed on the basis of a 360-day year and shall be adjusted as
of the date of each such change, but in no event higher than the maximum
permitted under applicable law. “Prime Rate” shall mean the rate of interest as
is publicly announced at the Bank’s principal office from time to time as its
Prime Rate.

          The Bank is authorized to enter on the Grid Schedule attached hereto
(i) the amount of each Loan made from time to time hereunder, (ii) the date on
which each Loan is made, (iii) the Maturity Date for each Loan, which in no
event shall be a date later than the Termination Date; (iv) the Interest Rate
agreed upon between the Debtor and the Bank for each Loan (each such rate, the
“Applicable Interest Rate” being either the “Fixed Rate”, or the “Prime Rate”,
as hereinabove defined); (v) the amount of each payment made hereunder, and (vi)
the outstanding principal balance of the Loans hereunder from time to time, all
of which entries, in the absence of manifest error, shall be conclusive and
binding on the Debtor; provided, however, that the failure of the Bank to make
any such entries shall not relieve the Debtor from its obligation to pay any
amount due hereunder.

          “Fixed Rate” means a rate of interest per annum quoted to the Debtor
by the Bank in its discretion, from time to time at the request of the Debtor,
by 11:00 a.m., New York City time, upon one (1) Business Days’ prior request
therefor by the Debtor; such quoted rate shall be the fixed rate which would be
applicable to a Fixed Rate Loan by the Bank on the requested date for the
proposed borrowing, in the specified amount and with the specified Interest
Period; the Debtor may request a Fixed Rate Loan on the basis of such quote,
Notwithstanding any other provision of this Note, (i) rates quoted by the Bank
shall be determined in the sole discretion of the Bank by reference to such
factors and considerations as the Bank shall deem relevant, and (ii) the Bank
shall not be required to quote any rate at all for any proposed Loan or upon the
termination of an Interest Period relating to any existing Loan.

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          “Interest Period” means as to any Fixed Rate Loan the period mutually
agreed upon by the Debtor and the Bank; provided, however, that (i) if any
Interest Period would end on a day which shall not be a Business Day, such
Interest Period shall be extended to the succeeding Business Day, and (ii) no
Interest Period may be selected which expires later than the Termination Date.

          “Business Day” shall mean any day that is not a Saturday, Sunday or
legal holiday in which banks in New York City are open for business.

          The Debtor shall not have the right to prepay any Loan bearing
interest at the Fixed Rate prior to the Maturity Date of such Loan. In the event
the Debtor does prepay such a Loan prior to its Maturity Date, the Debtor shall
reimburse the Bank on demand for any loss incurred or to be incurred by it in
the reemployment of the funds released by any prepayment.

          If the Debtor shall default in the punctual payment of any sum payable
with respect to, or in the observance or performance of any of the terms and
conditions of, this Note, or any other agreement with or in favor of the Bank,
or if a default or event of default that is accelerated shall occur for any
reason under any such agreement, or if the Debtor shall default with respect to
any other obligations for borrowed money, or if the Bank shall, in its sole
discretion, consider any of the obligations of the Debtor hereunder insecure, or
if any warranty, representation or statement of fact made in writing to the Bank
at any time by an officer, agent or employee of the Debtor is false or
misleading in any material respect when made, or if the Debtor shall be
dissolved or shall fail to maintain its existence in good standing, or if the
usual business of the Debtor shall be suspended or terminated, or if any levy,
execution, seizure, attachment or garnishment shall be issued, made or filed on
or against any material portion of the property of the Debtor, or if the Debtor
shall become insolvent (however defined or evidenced), make an assignment for
the benefit of creditors or make or send a notice of intended bulk transfer, or
if a committee of creditors is appointed for, or any petition or proceeding for
any relief under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, receivership, liquidation or dissolution law or statue now
or hereafter in affect (whether at law or in equity) is filed or commenced by or
against the Debtor or any material portion of its property, or if any trustee or
receiver is appointed for the Debtor or any such property - then and in any such
event, in addition to all rights and remedies of the Bank under applicable law
and otherwise, all such rights and remedies being cumulative, not exclusive and
enforceable alternatively, successively and/or concurrently, the Bank may, at
its option, declare any and all of the amounts owing under this Note to be due
and payable, whereupon the maturity of the then unpaid balance hereof shall be
accelerated and the same, together with all interest accrued hereon, shall
forthwith become due and payable.

          The Debtor hereby waives diligence, demand, presentment, protest and
notice of any kind, and assents to extensions of the time of payment, release,
surrender or substitution of security, or forbearance or other indulgence,
without notice.

          This Note may not be changed, modified or terminated orally, but only
by an agreement in writing signed by the Debtor and the Bank.

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          In the event the Bank or any holder hereof shall refer this Note to an
attorney for collection, the Debtor agrees to pay, in addition to unpaid
principal and interest, all the costs and expenses incurred in attempting or
effecting collection hereunder, including reasonable attorney’s fees, whether or
not suit is instituted.

          In the event of any litigation with respect to this Note, the Debtor
waives the right to a trial by jury and all rights of setoff and rights to
interpose counter-claims and cross-claims. The Debtor hereby irrevocably
consents to the jurisdiction of the courts of the State of New York and of any
Federal court located in such State in connection with any action or proceeding
arising out of or relating to this Note. The execution and delivery of this Note
has been authorized by the Board of Directors and by any necessary vote or
consent of the stockholders of the Debtor. The Debtor hereby authorizes the Bank
to complete this Note in any particulars according to the terms of the Loan
evidenced hereby.

          This Note shall be governed by an construed in accordance with the
laws of the State of New York applicable to contracts made and to be performed
in such State, and shall be binding upon the successors and assigns of the
Debtor and inure to the benefit of the Bank, its successors, endorsees and
assigns.

          If any term or provision of this Note shall be held invalid, illegal
or unenforceable, the validity of all other terms and provisions hereof shall in
no way be affected thereby.

CENTRAL HUDSON GAS & ELECTRIC CORPORATION

 

 

By:

-s- Stacey A. Renner Treasurer [d76047003.jpg]

 

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Stacey A. Renner
Treasurer

 

 

 

 

ATTEST:

 

By:

-s- Joseph B. Koczko, Assistant Secretary [d76047002.jpg]

 

 

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Joseph B. Koczko, Assistant Secretary

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GRID SCHEDULE

 

 

 

 

 

 

 

 

 

 

 

Date

 

Note #

 

Effective
Date

 

Applicable
Interest Rate

 

Amount

 

Maturity
Date

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