Document:

Exhibit 10.02

 

	
RBC   Bank
    	
Commercial Promissory Note
   (Variable Rate - NPF)
    

 

	
$3,600,000
    	
Atlanta, Georgia   
    
	
 
    	
October 31, 2011   
    

 

Documentary stamp tax in the amount of $12,600.00 and intangibles tax in the amount of $7,200.00 have been paid in connection with the Mortgage securing this Note, recorded in Charlotte County, Florida.

 

FOR VALUE RECEIVED, the undersigned (whether one or more, “Borrower”) promises to pay to RBC BANK (USA) (“Bank”), or order, the principal sum of Three Million Six Hundred Thousand Dollars ($3,600,000), together with interest, fees, premiums, charges and costs and expenses as set forth in this Note. Payments by Borrower under this Note will be made as provided in this Note and will be payable at any banking office of Bank in the city or town indicated above, or such other place as the holder of this Note may designate.

 

Interest Rates

 

Except as provided below, prior to maturity of this Note, interest will accrue on the unpaid principal of this Note at an interest rate per annum equal to 5.0% plus the LIBOR Base Rate. The “LIBOR Base Rate” is the London Interbank Offer Rate for U.S. Dollars for a term of one month which appears on Bloomberg Professional screen BBAM (or any generally recognized successor method or means of publication) as of 11:00 a.m., London time, two (2) London business days prior to the day on which the rate will become effective. The rate for the first month or part thereof will initially become effective on the date of the Note as shown on the face hereof. Thereafter, the rate will change and a new rate will become effective on the first calendar day of each succeeding month. If for any reason the London Interbank Offer Rate is not available, then the “LIBOR Base Rate” shall mean the rate per annum which banks charge each other in a market comparable to England’s Eurodollar market on short-term money in U.S. Dollars for an amount substantially equivalent to the principal amount due under this Note as determined at 11:00 A.M., London time, two (2) London business days prior to the day on which the rate will become effective, as determined in Bank’s sole discretion. Bank’s determination of such interest rate shall be conclusive, absent manifest error.

 

Upon the occurrence of an event of default under this Note, but prior to maturity of this Note, at Bank’s option, interest will accrue on the unpaid principal of this Note at the Default Rate.  After maturity of this Note, until this Note is paid in full, interest will accrue on the unpaid principal of this Note, and all unpaid interest, fees, premiums, charges and costs and expenses, at the Default Rate. The Default Rate will be an interest rate per annum equal to 9.0% plus the LIBOR Base Rate.

 

This is a variable rate note.  The rates at which interest accrues under this Note may change from time to time. Any changes in the interest accrual rates will equal changes in the variable rate index to which such interest rates are tied.  Bank will not have any obligation to notify Borrower of adjustments in any interest rates under this Note or any of the other Loan Documents. Adjustments to any rate of interest will be effective on the first day of next month.

 

All interest payable under this Note will be calculated monthly and will accrue daily on the basis of the actual number of calendar days elapsed and a year of three hundred sixty (360) calendar days. All accrual rates of interest under this Note will be contract rates of interest, whether a pre-default rate or a default rate, and references to contract rates in any Loan Documents executed and delivered by Borrower or others to Bank in connection with this Note will be to such contract rates.

 

 

Payment Terms

 

Prior to maturity of this Note, each advance of principal under this Note shall be repaid in sixty monthly payments of principal and interest which would repay such advance based on a twenty year amortization, commencing on November 30, 2011, and continuing on the last day of each calendar month thereafter until October 31, 2016, when one final payment of the entire balance of principal, interest, fees, premiums, charges and costs and expenses then outstanding on this Note will be due and payable in full.

 

If Borrower has authorized Bank, or in the future authorizes Bank, in writing, to automatically draft Borrower’s payments under this Note, then on each payment date Bank will draw or debit from the demand deposit account or other account Borrower has designated for such purpose, as shown on Bank’s records, the amount of the payment then owing, and Bank will draw or debit from such designated account any other amounts Borrower then owes Bank under this Note and under any of the other loan documents. Bank generally will provide Borrower approximately ten (10) calendar days prior notice of each draw or debit, but Bank’s failure to provide Borrower prior notice will not limit, negate or otherwise affect Bank’s right to draw or debit, or Borrower’s obligation to have sufficient available funds on deposit at the time Bank draws or debits Borrower’s account. Bank’s right to draw upon or debit Borrower’s account will not relieve Borrower of its repayment obligations under this Note and the other loan documents, and the lack of available funds to pay the amount due at the time Bank draws upon or debits Borrower’s account will be an event of default under this Note.

 

Payments made under this Note will be applied in such order as Bank, in its discretion, determines appropriate, unless applicable law mandates a specific order for application of payments. Payments received on a day other than a business day will be deemed received by Bank on the immediately following business day and payments received after 2:00 p.m. (local time in the place designated above for payment) on any business day will be deemed received by Bank on the next business day.

 

This Note may be prepaid in whole, or in part, at any time without any fee or premium. [At the time of any prepayment, Bank will have the right to demand Borrower pay Bank any premiums and any costs and expenses incurred or reasonably expected to be incurred by Bank in connection with any derivatives transaction (e.g. interest rate swap, cap, floor or collar transaction, or other similar transaction made pursuant to an International Swap Dealers Association, Inc. Master Agreement or similar agreement) or the termination thereof entered into in connection with this Note or Borrower’s obligations hereunder. Borrower agrees to pay to Bank the amount of such premiums and costs and expenses upon presentation by Bank of a statement of the amount and setting forth Bank’s calculation thereof, all in reasonable detail, which statement will be deemed true and correct absent a clear and convincing showing of bad faith or manifest error.

 

Supporting Documents

 

Borrower and Bank have entered into a loan agreement, of even date herewith. The terms of the loan agreement are incorporated into this Note.

 

This Note is secured by the security documents. The security documents include, without limitation, (a) a Mortgage of even date herewith from the Borrower in favor of the Bank (“Mortgage”) and (b) a Security Agreement of even date herewith between the Borrower and the Bank (“Security Agreement”).

 

Late Charges and Expenses

 

Borrower agrees to pay, upon demand by Bank, for each payment past due for fifteen (15) or more calendar days, a late charge in an amount equal to the lesser of (1) five percent (5%) of the amount of the payment past due or (2) the maximum percentage of the payment past due permitted by applicable law, or the maximum amount if not expressed as a percentage.

 

If this Note is not paid in full whenever it becomes due and payable, Borrower agrees to pay all of Bank’s costs and expenses of collection, including reasonable attorneys’ fees.  Borrower hereby stipulates that reasonable attorneys’ fees will be ten percent (10%) of the balance of principal, interest, fees, premiums, charges and costs and expenses outstanding at the time this Note becomes due and payable in full.

 

Default and Acceleration

 

Any one or more of the following will constitute an event of default under this Note: (1) the failure of Borrower to pay when due any payment described herein, whether principal, interest, fees, premiums, charges or costs and expenses; (2) the breach by Borrower of any of its non-payment obligations under this Note and the failure of

 

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Borrower to cure the breach within fifteen (15) calendar days after receipt of written notice of the breach from Bank; (3) the occurrence of a default or an event of default under the loan agreement, any of the security documents or any of the other loan documents, and the failure of such default to be cured within any applicable grace period contained in the document under which the default occurred; (4) the termination or attempted termination, in whole or in part as to present or future obligations, of any guaranty of, or other supporting obligation for the loan that has been given or that may be given in the future by any person; or (5) the occurrence of a default or an event of default under any other indebtedness or obligation now owing or in the future owing by Borrower to Bank and the failure of such default to be cured within any applicable grace period.

 

Upon the occurrence of an event of default under this Note, (1) the entire unpaid principal balance of this Note and all interest, fees, premiums, charges, costs and expenses owing and to be owing under this Note, will, at the option of Bank, become immediately due and payable, without notice or demand, and (2) the Bank may, both before and after acceleration, exercise any of and all of its other rights and remedies under this Note and the other loan documents, as well as any additional rights and remedies it may have at law or in equity. The failure by Bank to exercise any of its options will not constitute a waiver of the right to exercise same in the event of any subsequent default.

 

General Terms

 

Borrower waives presentment, demand, protest and notice of dishonor.

 

Time is of the essence for the performance of all of Borrower’s covenants and agreements set forth in this Note, including its payment obligations under this Note.

 

Payment of this Note in whole or in part, or any other partial or full satisfaction or discharge of Borrower or Borrower’s obligations under this Note, will not release or otherwise terminate any of the security interests or liens created by any of the security documents, or entitle any person to a release or termination thereof; the terms of each security document will be determinative of when and the conditions under which any of the security interests or liens created by such security document will be released or otherwise terminated.

 

This Note will be governed by the substantive laws of the State of Georgia, excluding, however, the conflict of law and choice of law provisions thereof. Borrower submits to the jurisdiction of either the state courts of the jurisdiction whose laws govern this Note, or a United States District Court for any federal district in such jurisdiction, over any action or proceeding arising from or related to this Note; and, Borrower irrevocably waives the defense of improper venue or an inconvenient forum.

 

Each provision of this Note will be interpreted in a manner so as to be valid under applicable law, but if any provision of this Note is held invalid under such law by a court or other tribunal of competent jurisdiction, the provision will be ineffective to the extent of such invalidity without invalidating the remainder of such provision or the remaining provisions of this Note, or the application thereof will be in a manner and to an extent permissible under applicable law.

 

If the rate at which interest accrues under this Note exceeds at any time the maximum contract rate which may be charged to or collected from Borrower on the loan under applicable law, or if any fees, premiums, charges or costs and expenses assessed against or collected from Borrower exceed those permitted by law, then ipso  facto the same will be reduced to the limits prescribed by law; and, if Bank receives any interest, fees, premiums, charges or costs and expenses in excess of any limits prescribed by law, such excess will be applied to the reduction of the principal balance owing under this Note in the inverse order of its maturity, even if not then due, or at the option of Bank, paid to Borrower.

 

Borrower, to the extent permitted by law, waives any right to a trial by jury in any action or proceeding arising from or related to this Note.

 

This Note will apply to and bind Borrower’s successors and assigns. At any time or times and without notice to Borrower or any other person, Bank may sell one or more participations in the loan and may assign this Note in whole or in part; and, this Note will apply to, be binding upon and inure to the benefit of each one of and all of Bank’s participants, successors and assigns, including any person that may administer or service this Note for any holder of this Note or any participants in the loan. Bank may disclose financial and other information concerning Borrower and any other person obligated on the loan to any participant or prospective participant, and to any assignee or prospective assignee.

 

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This Note and the other loan documents contain the entire/final agreement between Borrower and Bank relative to the loan. Bank will be under no obligation to extend, renew or refinance the loan at its maturity or at any time prior or subsequent thereto, or amend, modify or change any provision of this Note. This Note and any of the rights and remedies of any of the parties to this Note may not be changed or waived orally, but only by an agreement in writing signed by the party against whom enforcement of any change or waiver is sought.

 

Anti-Money Laundering

 

Borrower represents and warrants to Bank as follows: (1) Borrower is not and will not be a person whose property or interest in property is blocked or subject to blocking pursuant to applicable laws; (2) Borrower is not and will not be a person on the list of Specially Designated Nationals and Blocked Persons and Borrower is not and will not be subject to any limitations or prohibitions under any regulations or orders of the U.S. Department of Treasury’s Office of Foreign Assets Control; and (3) Borrower is and will remain in compliance with and does not and will not engage in any dealings or transactions prohibited by applicable laws, including the USA Patriot Act, the Trading with the Enemy Act or the U.S. Foreign Corrupt Practices Act of 1977, all as amended.

 

Definitions

 

In this Note: (1) “Borrower” refers to all signatories of this Note collectively and severally, as the context of this Note requires, and all signatories of this Note will be and the same are jointly and severally liable hereunder; (2) “loan” refers to the loan or other credit facility evidenced by this Note; (3) “loan documents” refers to this Note, the loan agreement, the security documents and all other documents and agreements executed/delivered to Bank, or others on Bank’s behalf, in connection with this Note or the loan, and all of the loan documents will be applied and enforced in harmony with each other to the end that the Bank fully realizes its rights and benefits under each and all of the loan documents, including full payment and satisfaction of all indebtedness and obligations evidence by or secured by each and all of the loan documents; (4) “maturity of this Note” refers to the date on which payment of the entire balance of principal then outstanding on this Note becomes due and payable in full, whether the stated maturity date, by acceleration or otherwise; (5) “Note” refers to this Commercial Promissory Note; (6) “person” includes individuals and organizations; (7) “security documents” refers to the security documents and supporting obligations which reference that they secure this Note or reference that they secure all obligations of Borrower to Bank, and includes all security documents and supporting obligations shown on Bank’s records as being security documents or supporting obligations that secure this Note, whether or not such security documents or supporting obligations correctly or accurately refer to this Note; (8) the singular includes the plural and vice versa; (9) words in the neuter gender include any gender; (10) “including” means “including but not limited to”; (11) “and” may have a joint meaning or a several meaning and “or” may have an inclusive meaning or an exclusive meaning; and (12) the word “all” includes “any” and the word “any” includes “all”.

 

[Signatures appear on the following page]

 

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EXECUTED by the undersigned under SEAL as of the Effective Date.

 

 

	
 
    	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
GES   — PORT CHARLOTTE, LLC
    
	
 
    	
 
    	
By:   
    	
Lime   Energy Asset Development, LLC, its sole member and manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:   
    	
/s/   Eric Dupont
    	
(SEAL)
    
	
 
    	
 
    	
 
    	
 
    	
Eric   Dupont
    
	
 
    	
 
    	
 
    	
 
    	
President
    

 

5Exhibit 10.03

 

	
RBC Bank
    	
Continuing Guaranty Agreement
    

 

	
November 3,   2011
    	
Atlanta, Georgia
    
	
Limited   $ Guaranty:
    	
This   Guaranty is limited, as provided below, to principal of $4,100,000.   Otherwise, this Guaranty is unlimited
    

 

THIS CONTINUING GUARANTY AGREEMENT  (“Guaranty”), entered into as of the 31st day of October, 2011 by LIME ENERGY CO., a Delaware corporation, and LIME ENERGY ASSET DEVELOPMENT, LLC, a Delaware limited liability company (together, “Guarantor”) with a mailing address of 16810 Kenton Drive, Suite 240, Huntersville, NC 28078, to RBC BANK (USA) (“Bank”), with a mailing address of Post Office Box 1220, Rocky Mount, North Carolina 27802-1220.

 

GES — PORT CHARLOTTE, LLC (“Borrower”) desires to obtain extensions of credit or a continuation of credit extensions from Bank and to generally engage in various business transactions and contractual relationships with Bank. Bank is unwilling to extend or continue to extend credit to, or to engage in business transactions with Borrower unless it receives an unconditional and continuing, joint and several guaranty from Guarantor covering all “Liabilities”, as hereinafter defined.

 

NOW, THEREFORE, in consideration of the premises and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Guarantor, and in order to induce Bank, from time to time and at any number of times, in its sole discretion, to extend or continue to extend secured and unsecured credit to Borrower and to generally engage in various business transactions and other contractual relationships with Borrower, Guarantor, jointly and severally, if more than one, hereby absolutely and unconditionally guarantees to Bank the full and prompt payment and performance, upon demand by Bank and on the terms and conditions hereinafter stated, when due, whether at stated maturity, by acceleration or otherwise, of each one of and all of the Liabilities.

 

In order to implement the foregoing and as additional inducements to Bank, Guarantor, jointly and severally, if more than one, further covenants and agrees:

 

Liabilities

 

The term “Liabilities” in this Guaranty means and includes any and all of the following, together with any and all renewals, extensions, modifications, amendments, changes, consolidations, replacements or substitutions thereof or therefor, whether Borrower may be liable to Bank, jointly with others or individually, as a debtor, maker, co-maker, drawer, endorser, guarantor, surety or otherwise, and whether voluntarily or involuntarily incurred, due or not due, absolute or contingent, direct or indirect, liquidated or unliquidated: (1) any and all obligations, indebtedness and liabilities owing or due by Borrower to Bank, now existing or later arising, including any and all loans, credit lines, revolving lines of credit, advances, credit extensions, overdraft indebtedness, credit card indebtedness, lease obligations and premium and other obligations relating to any Rate Management Transaction (whether presently committed or committed in the future, currently existing or later arising, individually and collectively “Credit Extensions”); (2) any and all interest, fees, charges, fines, penalties, prepayment premiums and other premiums and costs and expenses, now existing or later arising or accruing, under or in connection with any and all of the Credit Extensions; (3) Borrower’s and any and all other persons’ (other than Bank’s) covenants, agreements and obligations under any and all agreements and documents now or hereafter executed/delivered to Bank or others on Bank’s behalf in connection with any one or more Credit Extensions (such agreements and documents, which are incorporated in this Guaranty, will be referred to herein individually and collectively as the “Loan Documents”, and include all renewals, extensions, amendments, modifications, changes, consolidations, replacements and substitutions thereof and therefor); (4) any and all sums now or hereafter advanced or paid by Bank under or in connection with any one or more Credit Extensions or the Loan Documents to protect its security or otherwise; and (5) all monetary obligations incurred by or accrued to Bank during the pendency of any bankruptcy, insolvency, receivership or other similar proceedings, regardless of whether allowed or allowable in such proceeding, relative to Borrower or any one or more Credit Extensions or Loan Documents. The term “Rate Management Transaction” in this Guaranty means any transaction and all agreements with respect thereto, now

 

 

existing or hereafter entered into between Borrower and Bank or others on Bank’s behalf, which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction or any combination thereof (including any option with respect to any of these transactions), whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures.

 

Limitation on Amount of Guaranty

 

Guarantor’s aggregate joint and several liability under this Guaranty with respect to the principal amount of the Liabilities outstanding from time to time under the Credit Extensions and under the Hazardous Substances Indemnity Agreement of even date herewith by Borrower and Guarantor in favor of Bank will be up to but not exceed the amount stated above under the heading of this Guaranty entitled “Limited $ Guaranty”. Guarantor’s joint and several liability under this Guaranty will be unlimited as to all of the following Liabilities due from time to time, whether before, at the time of or after Bank demands payment or performance under this Guaranty: interest, fees, charges, fines, penalties, prepayment premiums and other premiums, costs and expenses, amounts advanced or paid by Bank under the Loan Documents to protect its security or otherwise, even if such amounts are added to principal under the terms of the Loan Documents, and all monetary obligations incurred or accrued during the pendency of any bankruptcy, insolvency, receivership or other similar proceedings, regardless of whether allowed or allowable in such proceeding.

 

Guaranty of Payment

 

This guaranty is and will remain an unconditional guaranty of payment and performance and not a guaranty of collection. Guarantor herewith expressly waives any right Guarantor otherwise might have or might have had under the provisions of Section 10-7-20 through 27 of the Official Code of Georgia or other Georgia laws to require Bank to attempt to recover against Borrower and to realize upon any collateral and other security which Bank holds for the Liabilities.

 

Termination of Guaranty

 

Guarantor, by a written notice, delivered personally to or actually received by certified or registered United States Mail by an authorized officer of Bank in Bank’s Loan Servicing Center (or successor thereto), at the address of Bank first above given, may terminate Guarantor’s guaranty hereunder with respect to those Liabilities which arise more than thirty (30) calendar days after the date on which such written notice is so delivered to or received by Bank’s authorized officer, as aforesaid (“Termination Notice”). A Termination Notice will be the sole and exclusive method for terminating Guarantor’s guaranty as to future Liabilities and notwithstanding termination, this Guaranty and the guaranty created hereby and all security given for this guaranty or the Liabilities will remain in full force and effect as to all Liabilities incurred, existing or arising in any manner pre-termination, including all Liabilities arising under loan commitments which exist pre-termination, all Liabilities under lines of credit and revolving lines of credit for advances both pre- and post-termination and all Liabilities arising from renewals, extensions, replacements, substitutions, amendments and modifications of the Liabilities, in whole or in part, whether any of the foregoing are made with or without notice to Guarantor before or after the effective date of termination as provided in this paragraph.

 

General Provisions

 

Guarantor represents and warrants to Bank that this Guaranty either (i) does not conflict with or otherwise violate, either in whole or in part, or (ii) is the subject of a waiver or consent by the other party or parties to any agreement to which Guarantor is a party or any agreement by which Guarantor is bound or to which Guarantor is subject.

 

Guarantor acknowledges that: (1) Guarantor benefits from the Liabilities; (2) Guarantor is familiar with Borrower and its business; and (3) Bank has not made any representations to Guarantor relative to any of the Liabilities or any person, or any person’s business, that is now or that may in the future be obligated on any of the Liabilities, including Borrower or any other guarantor, accommodation party or supporting obligor. Guarantor agrees Bank has no responsibility for keeping Guarantor informed regarding Borrower’s financial condition or that of any other person.

 

Guarantor agrees this Guaranty does not terminate, supersede or substitute for any existing guaranties from Guarantor to Bank.

 

 

Guarantor agrees to furnish Bank all financial information or other information Guarantor may be required to provide Bank under any of the Loan Documents and to furnish Bank any other information as Bank may from time to time reasonably request. Guarantor agrees to abide by, remain in compliance with and otherwise fully and timely perform all of the terms, provisions, covenants and agreements in any of the Loan Documents that may now or in the future be applicable to or otherwise binding upon Guarantor or any of its property, including any financial covenants, reporting requirements and covenants limiting disposition of assets or a change in control.

 

Guarantor agrees its obligations under this Guaranty are not dependent upon any other person guaranteeing or continuing to guarantee payment of any or all of the Liabilities.

 

Guarantor agrees that its liability under this Guaranty will not be limited, diminished or extinguished, in whole or in part, by, and that its consent will not be required relative to, any changes to, or any acts or inactions on Bank’s part or any other person’s part with respect to, any one or more of the following: (1) Borrower; (2) any of the Liabilities; (3) any of the Loan Documents; (4) any guarantor or other supporting obligor of any or all of the Liabilities; or (5) any property, or any liens or security interest therein or thereon, now or in the future securing this Guaranty, any or all of the Liabilities or any other guaranties or supporting obligations. Guarantor agrees that its liability under this Guaranty will not be limited, diminished or extinguished, in whole or in part, by the unenforceability or invalidity of any of the Liabilities as to Borrower or any other person, or the unenforceability or invalidity of any other guaranties or supporting obligations for any of the Liabilities, including any liens or security interests.

 

Guarantor waives presentment, demand, protest, notice of dishonor and any other notices to which Guarantor may otherwise be entitled. Guarantor agrees that until the Liabilities are paid and satisfied in full and Guarantor’s liability under this Guaranty is fully satisfied and discharged in accordance with the terms of this Guaranty, Guarantor will not have, and Guarantor waives, any claim of subrogation, reimbursement, exoneration, contribution and indemnity with respect to this Guaranty, the Liabilities, Borrower and any other person obligated on the Liabilities. Guarantor waives any defenses or benefits of a surety, accommodation party or other supporting obligor to which Guarantor may be entitled by statute or otherwise at law or in equity, including (1) any defenses or benefits relating to or arising from release, estoppel, election of remedies, rights to appraisal or marshalling of assets, (2) any defenses or benefits relating to or arising under judicial or non-judicial collection or foreclosure laws or procedures, or under any anti-deficiency laws, and (3) the right to appear, be scheduled or otherwise treated as a “creditor” in any federal or state bankruptcy or insolvency proceeding and any defenses or benefits relating to or arising under any federal or state bankruptcy, insolvency or debtor relief laws.

 

Guarantor agrees that until the Liabilities are paid in full, unless Bank agrees otherwise in writing: (1) Guarantor will not receive payment on any indebtedness owed by Borrower to Guarantor, or withdraw capital invested by it in Borrower, or otherwise receive any distributions from Borrower to the extent such distribution would cause Borrower to violate any covenant in the Loan Agreement; (2) to the extent Guarantor receives any payments, withdrawals or other distributions from Borrower in violation of the foregoing clause (1), the same will be deemed received by Guarantor in trust for the benefit of Bank and, upon demand for payment thereof by Bank, will be paid to Bank for application by Bank against the Liabilities; (3) all Guarantor’s present and future claims against Borrower or Borrower’s property, including claims for money owed under promissory notes and other evidences of indebtedness, and any liens or security interests securing such claims, will be subordinate in all respects to Bank’s present and future claims against Borrower and Borrower’s property, and all liens and security interests securing such claims; and (4) Guarantor will not foreclose on or otherwise enforce through either judicial or non-judicial proceedings any liens or security interests securing any of Guarantor’s present or future claims against Borrower or Borrower’s property.

 

If Bank is required to return or repay any payments made on the Liabilities, Guarantor agrees the Liabilities intended to be satisfied by such returned or repaid payments will be revived and continued in full force and effect as if said returned or repaid payments had not been made, and that this Guaranty will continue to be effective or reinstated, as the case may be, as to such returned or repaid payments.

 

Time is of the essence for the performance of all of Guarantor’s covenants and agreements set forth in this Guaranty, including its payment obligations under this Guaranty. If Guarantor fails to pay any amount owing under this Guaranty as and when due or otherwise breaches any of its representations, warranties, covenants or other agreements hereunder, Bank may, without prior notice to Guarantor or any other person, exercise or otherwise pursue any and all rights and remedies available to Bank under this Guaranty, any of the Loan Documents, at law or in equity, including acceleration of payment or performance obligations, provided, however, Bank’s rights under this paragraph are subject to the notice requirements set forth in that certain Intercreditor Agreement of even date herewith among American Chartered Bank, Bank and the Guarantor defined therein.

 

 

Guarantor agrees to pay to Bank, on Bank’s demand, all out-of-pocket costs and expenses incurred by Bank in connection with enforcement of Bank’s rights and remedies under this Guaranty.

 

Except as provided herein to the contrary, all notices hereunder will be deemed given when mailed by registered or certified mail, postage prepaid, return receipt requested, addressed to the addresses set forth above, provided either Guarantor or Bank may, by written notice to the other, designate a different address where communications should be sent.

 

This Guaranty will be governed by the substantive laws of the State of Georgia, excluding, however, the conflict of law and choice of law provisions thereof. If any provision of this Guaranty will be prohibited or invalid under such law, such provision will be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Guaranty.

 

To the extent permitted by law, Guarantor waives any right to a trial by jury in any action arising from or related to this Guaranty or any of the Liabilities.

 

This Guaranty will apply to and bind Guarantor’s heirs, successors and assigns. At any time or times and without notice to Guarantor or any other person, Bank may sell one or more participations in any of the Liabilities and may assign this Guaranty and any of the Loan Documents in whole or in part; and, this Guaranty will apply to, be binding upon and inure to the benefit of each one of and all of Bank’s participants, successors and assigns, including any agent that may administer or service any of the Liabilities for any holder of this Guaranty or any of the Loan Documents, or any participants.

 

Bank may make such credit investigations and other investigations regarding Guarantor as Bank deems necessary or appropriate, including any investigations as may be necessary or advisable under applicable law. Unless otherwise prohibited by applicable law, Bank may disclose financial and other information concerning Guarantor to any person, including any of the following: governmental agencies; credit bureaus and other similar persons; Guarantor’s other creditors or prospective creditors; Bank’s authorized representatives and any administrative or servicing agents, and to Bank’s respective affiliates and their respective authorized representatives and any administrative or servicing agents; any participant or prospective participants, and to any assignee or prospective assignee, of the Liabilities or any part or parts thereof, and the authorized representatives and any administrative or servicing agents for such persons.

 

In this Guaranty: (1) the singular includes the plural and vice versa; (2) words in the neuter gender include any gender; (3) “including” means “including but not limited to”; (4) “and” may have a joint meaning or a several meaning and “or” may have an inclusive meaning or an exclusive meaning; (5) the word “all” includes “any” and the word “any” includes “all”; (6) words importing “persons” will include individuals as well as corporations and other organizations; (7) the phrase “costs and expenses” will include the reasonable fees of attorneys and other service providers, including those incurred in connection with and during the pendency of any reorganization, receivership, insolvency or bankruptcy, and will include intangible personal property taxes, documentary stamp taxes, excise taxes and other similar taxes; (8) terms that are not defined in this Guaranty but are defined in any of the other Loan Documents will have the meaning given to such terms in the Loan Documents in which such terms are defined, and the rules on usage of terms contained in the other Loan Documents will apply to this Guaranty; and (9) all of Guarantor’s representations and warranties will be deemed continuing representations and warranties.

 

This Guaranty constitutes the entire agreement between the Bank and Guarantor with respect to this guaranty. Any modification of this Guaranty and any waiver of Bank’s rights or remedies under this Guaranty must be through a writing executed by an authorized representative of Bank in order for the modification or waiver to be enforceable against Bank. When requested by Bank for any reason, including to comply with any requirements of law, Guarantor will re-confirm, in writing, to Bank, its continuing liability and obligation under this Guaranty, such written re-confirmation to be in such form as Bank may require, including a statement of re-confirmation or a substitute or replacement guaranty.

 

Anti-Money Laundering

 

Guarantor represents and warrants to Bank as follows: (1) Guarantor is not a person whose property or interest in property is blocked or subject to blocking pursuant to any laws of the U.S.; (2) Guarantor is not a person on the list of Specially Designated Nationals and Blocked Persons and Guarantor is not subject to any limitations or prohibitions under any regulations or orders of the U.S. Department of Treasury’s Office of Foreign Assets Control; and (3) Guarantor is in compliance with and does not engage in any dealings or transactions prohibited by any laws of the U.S., including the USA Patriot Act, the Trading with the Enemy Act or the U.S. Foreign Corrupt Practices Act of 1977, all as amended.

 

 

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

 

 

EXECUTED under SEAL by the undersigned as of the day and year first above stated.

 

 

	
WITNESS/ATTEST:
    	
 
    	
LIME   ENERGY CO.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   David Asplund
    	
 
    	
By:
    	
/s/   Jeffrey Mistarz
    	
(SEAL)
    
	
 
    	
 
    	
 
    	
Jeffrey   R. Mistarz
    	
 
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
WITNESS/ATTEST:
    	
 
    	
LIME   ENERGY ASSET DEVELOPMENT, LLC
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
/s/   David Asplund
    	
 
    	
By:   
    	
/s/   Jeffrey Mistarz
    	
(SEAL)
    
	
 
    	
 
    	
 
    	
Jeffrey   R. Mistarz
    	
 
    
	
 
    	
 
    	
 
    	
Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]