Document:

Exhibit
10.2

    

    PROMISSORY
NOTE

    (Line
of Credit Note)

     

    
      
        
          	
                  Borrower:
      PREMIER POWER RENEWABLE ENERGY, INC.

                	
                  Lender:   UMPQUA
      BANK

                
	
                      4961
      Windplay Drive, #100

                	
                     2998
      Douglas Blvd., Suite 100

                
	
                                   El
      Dorado Hill, CA 95762

                	
                     Roseville, CA
      95661

                

        

      

    

    

    
      
        	
                Principal
      Amount: $7,000,000.00

              	
                Date
      of Note: July 13, 2009

              

      

    

    

    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”).

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    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), except as otherwise required by law.  In any event, even
upon full prepayment of this Note, Borrower understands that Bank is entitled to
a minimum interest charge of $250.00.  Other than Borrower's
obligation to pay any minimum interest charge, Borrower may pay without penalty
all or a portion of the amount owed earlier than it is due. Bank will apply all
prepayments first to the payment of any costs, fees, late charges, or other
charges due under this Note or under any of the other Loan Documents, then to
accrued interest, and then to the principal balance. Borrower agrees not to send
Bank payments marked "paid in full," "without recourse," or similar language. If
Borrower sends such a payment, Bank may accept it without losing any of Bank's
rights under this Note, and Borrower will remain obligated to pay any further
amount owed to Bank.  All written communications concerning disputed
amounts, including any check or other payment instrument that indicates that the
payment constitutes "payment in full" of the amount owed or that is tendered
with other conditions or limitations or as full satisfaction of a disputed
amount must be mailed or delivered to Bank pursuant to the Section 12.1 of the
Loan Agreement.

    

    LATE CHARGE.  If any
payment required to be made by Borrower under this Note has not been made when
due, then, on the date ten (10) days after the date the payment was due, a late
charge by way of damages will be immediately due. Borrower recognizes that
default by it in making the payments agreed to be paid when due will result in
Bank incurring additional expense in servicing the loan (including processing
and accounting expenses and other administrative costs and expenses). Borrower
agrees that if for any reason it fails to pay when due any amount due under this
Note, Bank will be entitled to damages for the detriment caused, but that it is
extremely difficult and impractical to ascertain the extent of the damages.
Borrower therefore agrees that an amount equal to five percent (5.00%) of the
payment the undersigned fails to pay within ten (10) days after the date it is
due, or $5.00, which ever is greater, is a reasonable estimate of the damages to
Bank, and the undersigned agrees to pay that on demand for each failure to so
pay within ten (10) days after the date the payment is due. Acceptance of any
late charge will not constitute a waiver of default with respect to the overdue
payment, and will not prevent Bank from exercising any other rights available
under this Note or the Loan Documents. Nothing in this paragraph is to be
construed as any obligation on the part of Bank to accept payment of payments
past due or less than the total unpaid principal balance after the Maturity
Date.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    COLLATERAL.  This
Note is secured by the Collateral as set forth in the Loan Agreement, and is
entitled to the benefits of the Security Documents and the Loan Documents, that
contain, among other things, provisions for acceleration of the maturity of this
Note on the happening of certain stated events.

    

    DEFAULT.  The words
“Event of Default” shall mean any of the Events of Default set forth in Section 10 of the
Loan Agreement.

    

    INTEREST AFTER
DEFAULT.  If any Event of Default occurs which continues after
any applicable Cure Period, and while such Event of Default is continuing, or
after exercising the Acceleration Right, Bank, at Bank’s option, may increase
the interest rate under this Note to Five percentage points (5.00%) over and
above the interest rate otherwise to be charged under this Note.

    

    DISHONORED ITEM
FEE.  Borrower will pay a fee to Bank of $20.00 if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

    

    BANK’S RIGHTS.  Upon
the occurrence of an Event of Default which is continuing beyond any applicable
Cure Period, Bank shall have all rights and remedies set forth in the Loan
Agreement, including but not limited to the right to declare the entire unpaid
principal balance on this Note and all accrued unpaid interest immediately due
and payable (the “Acceleration
Right”).

    

    ATTORNEYS’ FEES;
EXPENSES.  Borrower agrees to pay upon demand all of Bank's
reasonable costs and expenses, including reasonable attorneys' fees and Bank's
legal expenses, including expert witness and consultant fees and related
expenses, incurred in connection with the enforcement of this Note. Bank may pay
someone else to help enforce this Note, and Borrower shall pay the reasonable
costs and expenses of such enforcement.  Costs and expenses include
Bank's reasonable attorneys' fees and legal expenses whether or not there is a
lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings
(and including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. Borrower also
shall pay all court costs and such additional fees as may be directed by the
court.

    

    APPLICABLE
LAW.  This Note has been delivered to Bank and accepted by Bank
in the State of California. This Note shall be governed by and construed in
accordance with the laws of the State of California.

    

    CHOICE OF VENUE.  If
there is a lawsuit, Borrower agrees upon Lender’s request to submit to the
jurisdiction of the courts of Placer County, State of California.

    

    SUCCESSOR
INTERESTS.  The terms of this Note shall be binding upon
Borrower, and upon Borrower's successors and assigns, and shall inure to the
benefit of Bank and Bank's successors and assigns. Borrower shall not, however,
have the right to assign Borrower's rights or obligations under this Note or any
interest therein, without the prior written consent of Bank.

    

    GENERAL
PROVISIONS.  Bank may delay or forgo enforcing any of its
rights or remedies under this Note without losing them. Borrower understands and
agrees that, with or without notice to Borrower, Bank may with respect to
Borrower (a) waive, subordinate, fail or decide not to perfect, and release any
security, with or without the substitution of new collateral; (b) apply such
security and direct the order or manner of sale thereof, including without
limitation, any non-judicial sale permitted by the terms of the Loan Agreement,
as Bank in its discretion may determine; and (c) determine how, when and what
application of payments and credits shall be made on any indebtedness. Borrower,
to the extent allowed by law, waives any applicable statute of limitations,
presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party
who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Bank may
renew or extend (repeatedly and for any length of time) this loan or release any
party or guarantor or collateral; or impair, fail to realize upon or perfect
Bank's security interest in the collateral. All such parties also agree that
Bank may modify this loan without the consent of or notice to anyone other than
the party with whom the modification is made.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    BORROWER ACKNOWLEDGES HAVING READ ALL
THE PROVISIONS OF THIS PROMISSORY NOTE AND BORROWER AGREES TO ITS TERMS.

    

    
      
        
          
            
              
                	
                        BORROWER:

                      	
                        PREMIER
      POWER RENEWABLE ENERGY, INC., a Delaware corporation

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	 
      	 
      
	 
      	 
      	
                        Dean
      Marks

                      
	 
      	 
      	
                        President
      and Chief Executive
Officer

                      

              

            

          

        

      

    

     

    
      
         

      

      
        4Exhibit
10.3

    

    MODIFICATION
TO

    PROMISSORY
NOTE

    (Line
of Credit Note)

    AND
LOAN AGREEMENT

    

    
      
      

    

    
      
        
          	
                  Original Principal
      Amount: $7,000,000.00

                	
                  Date of Note: _______,
      2009
Date of
      Modification:
___________

                

        

      

    

    This Modification to Promissory Note
(Line of Credit Note) and Loan Agreement (this “Modification”) serves to amend
and modify that certain Promissory Note (Line of Credit Note) dated July __,
2009 in the principal sum of Seven Million and 00/100 Dollars ($7,000,000.00),
[if note has been previously
amended, insert the following with respect to each such previous amendment:  as
modified by that certain Modification Agreement dated___________ (the
“First
[or “Second,”
etc.]
Modification”),
pursuant to which the face amount of the Note was increased to ______________
($____________)] (the “Note”) and that certain Loan
Agreement dated July __, 2009 [if previously modified, recite,
e.g., “as modified by the First Modification, the Second Modification, etc. as
applicable] (the “Loan
Agreement”), each executed by Premier Power Renewable Energy, Inc., a
Delaware corporation ("Borrower") in favor of Umpqua
Bank, an Oregon corporation ("Bank").

    

    NOW THEREFORE, in
consideration for the mutual covenants and agreements contained herein, and for
other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, Borrower and Bank hereby agree as follows:

    

    1.          
Modification of Loan
Agreement.  The Loan Agreement is hereby supplemented, amended
and modified to incorporate the following, which shall supersede and prevail
over any presently existing and conflicting provisions thereof:

    

    INCREASE MAXIMUM LINE
AMOUNT:  The Maximum Line Amount is hereby increased to
________________________ ($___________).

    

    2.           Modification of
Note.  The Note is hereby supplemented, amended and modified to
incorporate the following, which shall supersede and prevail over any presently
existing and conflicting provisions thereof.

    

    INCREASE NOTE AMOUNT: The face
amount of the Note is hereby increased to ____________________
($______________).

    

    3.           Reaffirmation
of Obligations.  Borrower hereby
expressly acknowledges and reaffirms the existence, validity and enforceability
of Borrower’s obligations under the Note, as modified by this Modification (the
“Modified Note”), the
Loan Agreement, as modified by this Modification (the “Modified Loan Agreement”), the
Security Agreement dated July __, 2009 the (“Security Agreement”), and each
of the Loan Documents (as defined in the Loan Agreement).  Except as
specifically modified by this agreement, the Note, the Loan Agreement, the
Security Agreement and each of the Loan Documents shall remain unmodified and in
full force and effect.

    

    Modification
to Promissory Note (Line of Credit Note)

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    4.           Attorneys'
Fees.  In the event of
any dispute or litigation concerning the enforcement, validity or interpretation
of this Modification, or any other Loan Document, the losing party shall pay all
costs, charges and expenses (including reasonable attorneys' fees, expert
witness fees and consultant fees, and all expenses related thereto) incurred by
the prevailing party, regardless of whether any action or proceeding is
initiated relative to such dispute and regardless of whether any such litigation
is prosecuted to judgment. Borrower agrees to pay upon demand all of Bank’s
costs and expenses, including attorneys' fees and Bank's legal expenses,
including expert witness and consultant fees, incurred in connection with the
enforcement of the Note.  Bank may pay someone else to help enforce
the Loan Documents, and Borrower shall pay the costs and expenses of such
enforcement.  Costs and expenses include Bank's attorneys' fees and
legal expenses whether or not there is a lawsuit, including attorneys' fees and
legal expenses for bankruptcy proceedings (and including efforts to modify or
vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services.  Borrower also shall pay all court
costs and such additional fees as may be directed by the
court.  Borrower will pay to Bank all such costs and expenses
referenced to in this paragraph on demand, together with interest thereon from
the date of the demand at the Default Rate until paid.

    

    5.           Governing
Law.  Borrower and Bank agree that this Modification shall be
governed by and construed in accordance with the internal laws of the State of
California without giving effect to any conflicts of law rules of such
state.

    

    6.           Joint and
Several Liability.  The liability under this Modification, the
Modified Note and the Modified Loan Agreement, of each of the individuals
comprising Borrower, shall be joint and several.  Without in any way
limiting the foregoing, a separate action or actions may be brought and
prosecuted against one of such individuals, whether or not an action or actions
also is brought against the other such individual and whether or not the other
such individual is joined in the initial action or actions.

    

    7.           Severability.  Every provision
of this Modification is intended to be severable.  In the event any
term or provision hereof is declared to be illegal or invalid for any reason
whatsoever by a court of competent jurisdiction, such illegality or invalidity
shall not affect the balance of the terms and provisions hereof, which terms and
provisions shall remain binding and enforceable.

    

    8.           Modifications.  This Modification
and each provision contained herein may be waived, terminated, amended, modified
or supplemented only by means of an instrument in writing signed by Bank and
Borrower.

    

    9.           No
Waiver; Remedies.  No failure on the
part of Bank to exercise and no delay in exercising any right or remedy will
operate as a waiver; nor will Bank be estopped to exercise any right or remedy
at any future time because of any failure or delay; nor will any single or
partial exercise of any right or remedy preclude any other or further exercise
or the exercise of any other right or remedy. The remedies provided are
cumulative and not exclusive of any remedies provided by law.

    

    10.         Entire
Agreement. This
Modification and the Loan Documents contain or expressly incorporate by
reference the entire agreement between Bank and Borrower with respect to the
covered matters and supersede all prior negotiations.

    

    Signatures
appear on following page

    

    Modification
to Promissory Note (Line of Credit Note)

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    In witness whereof, the undersigned
have caused this Modification to Promissory Note (Line of Credit Note) and Loan
Agreement to be executed effective as of _________________ [date].

    

    
      
        
          
            
              
                	
                        BORROWER:

                      	
                        PREMIER
      POWER RENEWABLE ENERGY, INC.,

                      
	 
      	
                        a
      Delaware corporation

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Dean
      Marks

                      
	 
      	 
      	
                        President
      and Chief Executive Officer

                      
	 
      	 
      
	
                        BANK:

                      	
                        UMPQUA
      BANK, an Oregon corporation

                      
	 
      	 
      
	 
      	
                        By:
      

                      	 
      
	 
      	 
      	
                        George
      Diesch

                      
	 
      	 
      	
                        Vice
      President

                      

              

            

          

        

      

    

    

    Modification
to Promissory Note (Line of Credit Note)

    
      
         

      

      
        3

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