Document:

EXHIBIT 10.47

 

MORTGAGE NOTE

 

	

  $735,000.00

  	

  May 29, 2002

  
	

   

  	

  Chicago, Illinois

  

 

FOR VALUE RECEIVED, the undersigned, ELECTRIC CITY CORP., a

Delaware corporation, SWITCHBOARD APPARATUS, INC., a Delaware

corporation, and GREAT LAKES CONTROLLED ENERGY CORPORATION, a Delaware

corporation (collectively, “Borrowers”) hereby promise to pay to the order of AMERICAN

CHARTERED BANK, an Illinois banking association (“Bank”), in

immediately available funds, on April 30, 2004, or such earlier maturity

date as provided for herein, the principal sum of $735,000.00 (the “Loan”), as

follows:

 

ARTICLE I

 

1.1           Capitalized

Terms.  Capitalized terms

not otherwise defined herein shall have the meaning ascribed to such terms in

that certain Loan Agreement dated May 15, 2002, by and between Borrowers and

Bank, as amended from time to time (the “Loan Agreement”).

 

1.2           Repayment of Principal and Interest.  Borrowers shall jointly and severally make

equal consecutive monthly principal installments of $3,000.00, plus monthly

payments of all accrued and unpaid interest. 

The monthly principal and interest payments shall be due on the first

day of each month (commencing June 1, 2002) until April 1, 2004.  A final payment of all outstanding principal

and all accrued and unpaid interest shall be due and payable on April 30, 2004,

unless such maturity date is accelerated in accordance with the terms hereof.

 

1.3           Interest Rate.  Interest on the outstanding principal

amount hereunder shall be computed on the basis of the actual number of days

elapsed on the basis of a year of 360 days at the Mortgage Interest Rate from

time to time in effect.

 

1.4           Prepayment.

Borrowers shall be permitted to make prepayment of the indebtedness

evidenced by this Note, in whole or in part, from time to time as the Borrowers

may desire without penalty or premium.

 

ARTICLE

II

 

2.1           Security for Payment; Loan Documents. This Note is secured by a certain

Mortgage, Assignment of Leases and Rents and Security Agreement securing the

property commonly known as 1280 Landmeier Road, Elk Grove Village, Illinois

(the “Mortgage”) the Security Agreements and the other Loan Documents.  Reference is hereby made to the Mortgage,

Security Agreements and the other Loan Documents, which are incorporated herein

by this reference as fully and with the same effect as if set forth herein at

length.

 

 

2.2           Event of

Default.  Any Event of Default under the Loan

Agreement or the other Loan Documents shall be deemed an Event of Default under

this Note.

 

2.3           Acceleration

of Maturity.  At any time

after the occurrence of any Event of Default which is continuing, Bank has the

option, without demand or notice, to declare the unpaid principal of this Note,

together with all accrued interest and other sums evidenced by or secured by

the Mortgage or any other of the Loan Documents, at once due and payable to the

extent permitted by law; to foreclose the Mortgage and the liens or security

interests securing the payment of this Note; and to exercise any and all other

rights and remedies available at law or in equity or under the Mortgage or any

of the other Loan Documents.

 

2.4           Remedies.  No delay on the part of the Bank in

exercising any right under this Note, the Loan Documents or other undertaking

securing or affecting this Note, shall operate as a waiver of such right or any

other right under this Note, nor shall any omission in exercising any right on

the part of the Bank under this Note operate as a waiver of any other right.

 

2.5           Default

Interest Rate. While any

Event of Default exists, interest on the unpaid principal balance of the Loan

from time to time will accrue at an annual rate (“Default Rate”) equal to the

Interest Rate plus 3.0%, and Borrowers shall pay such interest upon demand, or

if no such demand is made, then at the times installments of interest and/or

principal are due as provided herein.

 

2.6           Costs. 

Borrowers agrees to pay all costs and expenses of Bank, including

reasonable attorneys’ fees and costs incurred by the Bank in enforcing this

Note.

 

ARTICLE III

 

3.1           Notices.  Any notice, demand, request or other

communication which any party may be required or may desire to give will be

deemed to have been given if made in accordance with the terms of the Loan

Agreement.

 

3.2           Governing Law.  The validity, enforcement and

interpretation of this Note shall for all purposes be governed by and construed

in accordance with the laws of the State of Illinois, without regard to its

conflicts of law principles, and applicable United States federal law, and is

intended to be performed in accordance with, and only to the extent permitted

by, such laws.  Borrowers hereby

irrevocably submit generally and unconditionally for Borrowers and in respect

of Borrowers’ property to the jurisdiction of any local court, or any United

States federal court, sitting in Cook County, State of Illinois, over any suit,

action or proceeding arising out of or relating to this Note or the Loan.  Borrowers hereby irrevocably waive, to the

fullest extent permitted by law, any objection that Borrowers may now or

hereafter have to the laying of venue in any such court and any claim that any

such court is an inconvenient forum. 

Nothing herein shall affect the right of Bank to serve process in any

manner permitted by law or limit the right of Bank to bring proceedings against

Borrowers in any other court or jurisdiction.

 

3.3           Waivers.  Borrowers

waive presentment, protest and notice of dishonor.

 

2

 

3.4           Construction.  The validity and construction of this Note

and all matters pertaining thereto are to be determined and construed according

to the laws of the State of Illinois, without regard to its conflicts of law

principles.  The captions and headings

of this Note are for convenience only shall be disregarded in construing it.

 

3.5           Business Loan. 

Borrowers hereby represents that: (a) the proceeds of the Loan will be

used for the purposes specified in 815 ILCS 205/4(1)(a) or (c) of the Illinois

Compiled Statutes, as amended; (b) the Loan constitutes a “business loan”

within the purview of those Sections; and (c) the proceeds of the Loan will not

be used for the purchase of registered equity securities within the purview of

Regulation “U” issued by the Board of Governors of the Federal Reserve System.

 

3.6           Severability.  In

the event any provision (or any part of any provision) contained in this Note

shall for any reason be finally held by a court of competent jurisdiction to be

invalid, illegal or unenforceable in any respect, such invalidity, illegality

or unenforceability shall not affect any other provision (or remaining part of

the affected provision) of this Note; but this Note shall be construed as if

such invalid, illegal or unenforceable provision (or part thereof) had never

been contained herein, but only to the extent it is invalid, illegal or

unenforceable.

 

3.7           Usury.  Notwithstanding any provisions of this Note

or any instrument securing payment of the indebtedness evidenced by this Note

to the contrary, it is the intent of Bank that Bank shall never be entitled to

receive, collect or apply, as interest on principal of the indebtedness, any

amount in excess of the maximum rate of interest permitted to be charged by

applicable law; and if under any circumstance whatsoever, fulfillment of any

provision of this Note, at the time performance of such provision shall be due,

shall involve transcending the limit of validity prescribed by applicable law,

then the obligation to be fulfilled shall be reduced to the limit of such

validity; and in the event Bank ever receives, collects or applies as interest

any such excess, such amount which would be excess interest will be deemed a

permitted partial prepayment of principal without penalty or premium and

treated as such; and if the principal 

amount secured hereby is paid in full, any remaining excess funds shall

forthwith be paid to Borrowers.  In

determining whether or not interest of any kind payable hereunder, under any

specific contingency, exceeds the highest lawful rate, Borrowers and Bank will,

to the maximum extent permitted under applicable law, (1) characterize any

non-principal payment as an expense, fee or premium rather than as interest and

(2) amortize, prorate and allocate such payment so that the interest on account

of such indebtedness does not exceed the maximum amount permitted by applicable

law.  Bank shall not be subject to any

penalties provided by any laws for contracting for, charging or receiving

interest in excess of the maximum lawful rate.

 

3.8           Successors and Permitted Assigns.  This

Note shall inure to and bind (i) Borrowers and Borrowers’ successors and

permitted assigns, and (ii) Bank and Bank’s successors and assigns.  Without limitation of the foregoing,

Borrowers expressly acknowledge that, after the closing of the Loan, Bank may

assign and transfer all rights and interests of the Bank hereunder to an

assignee to be identified by Bank, and acknowledge and agree that, upon

execution and delivery of the assignment in relation thereto, such assignee

shall hold all of the rights and interests of Bank hereunder.

 

3.9           Time of Essence.  Time shall be of the essence as to each and

every provision of this Note.

 

3

 

3.10         Waiver of Jury Trial.  TO THE MAXIMUM

EXTENT PERMITTED BY LAW, BORROWERS AND BANK HEREBY EXPRESSLY WAIVE ANY RIGHT TO

TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING

ARISING UNDER OR WITH RESPECT TO THIS NOTE, OR IN ANY WAY CONNECTED WITH,

RELATED TO OR INCIDENTAL TO THE DEALING OF BORROWERS AND BANK WITH RESPECT TO

THIS NOTE, OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW

EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT, OR

OTHERWISE.  TO THE MAXIMUM EXTENT

PERMITTED BY LAW, BORROWERS AND BANK HEREBY AGREE THAT ANY SUCH ACTION, CAUSE

OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL

WITHOUT A JURY AND THAT BANK OR BORROWERS MAY FILE AN EXECUTED COPY OF THIS

NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF

EACH OF BORROWERS AND BANK TO THE WAVER OF ITS RIGHT TO TRIAL BY JURY.  IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER

CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH

ACTION OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO

THIS NOTE.  THIS WAIVER IS KNOWINGLY,

WILLINGLY AND VOLUNTARILY MADE BY BORROWERS, AND BORROWERS HEREBY REPRESENTS

THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO

INDUCE THIS WAIVER OF TRIAL BY JURY, THAT THEY HAVE BEEN REPRESENTED IN THE

SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL

COUNSEL SELECTED BY BORROWERS OF THEIR OWN FREE WILL, AND THAT THEY HAVE HAD

THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

4

 

IN WITNESS

WHEREOF, Borrowers have

caused this Note to be executed and delivered as of the date first stated

above.

 

	

   

  	

  ELECTRIC

  CITY CORP.,

  
	

   

  	

  a Delaware corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/ Jeffrey

  Mistarz

  	

   

  
	

   

  	

  Its:

  	

    Chief

  Financial Officer & Treasurer

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  SWITCHBOARD

  APPARATUS, INC.,

  
	

   

  	

  a Delaware corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/ Jeffrey

  Mistarz

  	

   

  
	

   

  	

  Its:

  	

    Vice

  President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  GREAT

  LAKES CONTROLLED ENERGY

  CORPORATION, a Delaware corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/ Jeffrey

  Mistarz

  	

   

  
	

   

  	

  Its:

  	

    Vice

  President

  	

   

  

 

5EXHIBIT 10.48

 

TERM NOTE

 

	

  $400,000.00

  	

   

  	

   

  	

   

  	

  May 29, 2002

  
	

   

  	

   

  	

   

  	

   

  	

  Chicago, Illinois

  

 

FOR VALUE

RECEIVED, ELECTRIC CITY CORP., a Delaware corporation, SWITCHBOARD APPARATUS,

INC., a Delaware corporation, and GREAT LAKES CONTROLLED ENERGY CORPORATION, a

Delaware corporation (collectively, “Borrowers”), jointly and severally, hereby

promise to pay, to the order of AMERICAN CHARTERED BANK, an Illinois banking

association (“Bank”), in immediately available funds, on April 30, 2004, or

such earlier maturity date as provided for herein, the principal sum of FOUR

HUNDRED THOUSAND AND NO/100 DOLLARS ($400,000.00) (the “Loan”), as follows:

 

Borrowers

shall jointly and severally make equal consecutive monthly principal

installments of $8,500.00, plus monthly payments of all accrued and unpaid

interest.  The monthly principal and

interest payments shall be due on the first day of each month (commencing June

1, 2002) until April 1, 2004.  A final payment

of all outstanding principal and all accrued and unpaid interest shall be due

and payable on April 30, 2004, unless such maturity date is accelerated in

accordance with the terms hereof.

 

Capitalized

terms not otherwise defined herein shall have the meaning ascribed to such

terms in that certain Loan Agreement dated May 29, 2002, by and between

Borrowers and Bank, as amended from time to time (the “Loan Agreement”).

 

Interest on

the outstanding principal amount hereunder shall be computed on the basis of

the actual number of days elapsed on the basis of a year of 360 days at the

Term Interest Rate from time to time in effect.

 

Any nonpayment

or late payment of any installment of principal and/or interest due under this

Note within five days after it became due and payable (no prior demand therefor

being necessary) shall be subject to a late charge, payable on demand, of 5.0%

of the overdue amount.

 

All amounts

evidenced by this Note may become immediately due and payable, subject to the

terms of the Loan Agreement, upon the occurrence of any Event of Default

specified in the Loan Agreement.

 

This Note is

secured by the Security Agreements and the other Loan Documents.  Reference is hereby made to the Security

Agreements and the other Loan Documents, which are incorporated herein by this

reference as fully and with the same effect as if set forth herein at length.

 

 

Borrowers

shall be permitted to make prepayment of the indebtedness evidenced by this

Note, in whole or in part, from time to time without penalty or premium.

 

Borrowers

authorize the Bank, without giving notice and without affecting the liability

of Borrowers, to extend the time of, or assign, payment of this Note in whole

or in part.

 

Regardless of

the adequacy of any collateral given in connection with the indebtedness

evidenced hereby, Bank shall have the right upon an Event of Default which is

continuing, to apply to the indebtedness evidenced hereby any monies, cash,

cash equivalents, securities, instruments, or other assets of the undersigned

held by or in the control of Bank.

 

Borrowers

waive presentment, protest and notice of dishonor.

 

No delay on

the part of the Bank in exercising any right under this Note, the Loan

Documents or other undertaking securing or affecting this Note, shall operate

as a waiver of such right or any other right under this Note, nor shall any

omission in exercising any right on the part of the Bank under this Note

operate as a waiver of any other right.

 

Borrowers

promises and agrees to pay all costs (including reasonable attorneys’ and

paralegals’ fees and expenses) incurred or paid by the Bank in enforcing this

Note.

 

If any

provision of this Note is held to be unenforceable, such provision shall be

deemed ineffective to the extent of such unenforceability, without invalidating

the remaining provisions of this Note.

 

BORROWERS WAIVE ANY

RIGHT TO TRIAL BY JURY ON ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY

RIGHTS (I) UNDER THIS NOTE OR UNDER ANY OF THE LOAN DOCUMENTS OR ANY AMENDMENT,

INSTRUMENT, DOCUMENT OR AGREEMENT WHICH MAY BE DELIVERED IN THE FUTURE IN

CONNECTION WITH THE LOAN, OR (II) ARISING FROM THE TRANSACTIONS CONTEMPLATED BY

THIS NOTE, THE LOAN DOCUMENTS AND ANY BANKING RELATIONSHIP BETWEEN BORROWERS

AND BANK IN CONNECTION WITH THE LOAN, AND AGREE THAT ANY SUCH ACTION OR

PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

BORROWERS IRREVOCABLY

AGREE THAT ALL ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR RESPECT, ARISING

OUT OF OR FROM OR RELATED TO THIS NOTE OR ANY OF THE LOAN DOCUMENTS SHALL BE

LITIGATED ONLY IN COURTS HAVING SITUS WITHIN THE CITY OF CHICAGO, STATE OF

ILLINOIS.  BORROWERS HEREBY CONSENT AND

SUBMIT TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN

SAID CITY AND STATE.  BORROWERS HEREBY

WAIVE ANY RIGHT THEY MAY HAVE TO TRANSFER OR CHANGE VENUE OF ANY SUCH ACTION OR

PROCEEDING.

 

2

 

Any notice,

demand, request or other communication which any party hereto may be required

or may desire to give hereunder shall be deemed to have been given if made in

accordance with the terms of the Loan Agreement.

 

This Note

shall be governed by and construed in accordance with the laws of the State of

Illinois in all respects, including matters of construction, validity and

performance.

 

	

   

  	

  ELECTRIC CITY CORP.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/ Jeffrey Mistarz

  	

   

  
	

   

  	

  Its:

  	

    Chief Financial Officer & Treasurer

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  SWITCHBOARD APPARATUS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/ Jeffrey Mistarz

  	

   

  
	

   

  	

  Its:

  	

    Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  GREAT LAKES CONTROLLED ENERGY CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/ Jeffrey Mistarz

  	

   

  
	

   

  	

  Its:

  	

    Vice President

  	

   

  

 

3

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