Document:

Exhibit 25 (10.22) - Secured Promissory Note ($445,000)

    
      

      

    

    Exhibit
      10.22

     

    SECURED
      PROMISSORY NOTE

    

    

    
      	 	
              Granite
                Bay, California

            
	
              $445,000

            	
              November
                7, 2006

            

    

    

    This
      Secured Promissory Note (this "Note") is made and delivered pursuant to that
      certain Credit Facility Agreement dated as of November 2, 2006 between Solar
      Power, Inc., a California corporation (“Borrower”) and Solar Power, Inc.,
      formerly Welund Fund, Inc., a Nevada corporation (“Lender” or “Holder”), as such
      may be amended from time to time (the "Credit Agreement"). Unless otherwise
      defined herein, all capitalized terms used in this Note shall have the same
      meanings that are given to such terms in the Credit Agreement, the terms of
      which are incorporated into this Note by reference.

     

     

    1. 
Obligation.
      The
      Borrower hereby promises to pay to the order of Lender or Holder on or before
      the Maturity Date, at Lender's principal place of business, or at such other
      place as Holder may direct, the principal sum of Four hundred forty -five
      thousand dollars ($445,000.00) or so much thereof as may be advanced and
      outstanding, together with all interest accrued on unpaid principal, to be
      computed on each Advance from the date of its disbursement to Borrower, at
      a
      rate equal to eight percent (8%) simple interest per annum, as provided in
      the
      Credit Agreement. The outstanding principal amount of this Note, together with
      accrued interest thereon, shall be due and payable in full on the Maturity
      Date.
      The outstanding unpaid principal balance of this Note at any time shall be
      the
      total principal amounts advanced hereunder by Holder less the amounts of
      payments of principal made hereon by Borrower, which balance may be endorsed
      hereon from time to time by Holder in accordance with Section 2.

    

    2. 
Recording
      Advances and Payments.
      Holder
      is authorized to record on Schedule A hereto, and on any continuation(s) of
      such
      Schedule that may be attached to this Note: (a) the date and principal amount
      of
      each Advance by Lender under the Credit Agreement; and (b) the date and amount
      of each payment or prepayment of principal and/or accrued interest of any
      Advance; which recordation will constitute prima facie evidence of the accuracy
      of the information so endorsed on Schedule A; provided however, that any failure
      to record such information on such Schedule or continuation thereof will not
      in
      any manner affect the obligations of Borrower to make payments of principal
      and
      interest in accordance with the terms of this Note. Holder will promptly provide
      Borrower with a copy of each recordation made by Holder on Schedule A attached
      hereto.

    

    3.
       
Security.
      This
      Note is subject to a Security Agreement executed September 19, 2006 between
      Lender as the Secured party and Borrower as Debtor.

    

    4. 
Prepayment.
      Prepayment of unpaid principal and/or interest due under this Note may be made
      at any time without penalty as specified in the Credit Agreement. Unless
      otherwise agreed in writing by Holder, all payments will be made in lawful
      tender of the United States and will be applied (a) first, to the payment of
      accrued interest, and (b) second, (to the extent that the amount of such
      prepayment exceeds the amount of all such accrued interest), to the payment
      of
      principal.

     

     

    
      
        
        

      

      
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    5. 
Default,
      Acceleration of Obligation.
      Borrower will be deemed to be in default under this Note and the outstanding
      unpaid principal balance of this Note, together with all interest accrued
      thereon, will immediately become due and payable in full, without the need
      for
      any further action on the part of Holder, upon the occurrence of any Event
      of
      Default (as defined in the Credit Agreement or the Security Agreement) not
      otherwise remedied pursuant to the terms of the Credit Agreement or the Security
      Agreement.

    

    6. 
Remedies
      on Default; Acceleration.
      Upon
      any Event of Default, Holder will have, in addition to its rights and remedies
      under this Note, the Credit Agreement and Security Agreement, full recourse
      against any real, personal, tangible or intangible assets of Borrower, and
      may
      pursue any legal or equitable remedies that are available to Holder, and may
      declare the entire unpaid principal amount of this Note and all unpaid accrued
      interest under this Note to be immediately due and payable in full.

    

    7. 
Waiver
      and Amendment.
      Any
      provision of this Note may be amended or modified only by a writing signed
      by
      both Borrower and Holder. Except as provided below with respect to waivers
      by
      Borrower, no waiver or consent with respect to this Note will be binding or
      effective unless it is set forth in writing and signed by the party against
      whom
      such waiver is asserted. No course of dealing between Borrower and Holder will
      operate as a waiver or modification of any party's rights or obligations under
      this Note. No delay or failure on the part of either party in exercising any
      right or remedy under this Note will operate as a waiver of such right or any
      other right. A waiver given on one occasion will not be construed as a bar
      to,
      or as a waiver of, any right or remedy on any future occasion.

    

    8. 
Waiver
      of Borrower.
      Borrower
      hereby waives presentment, notice of non-payment, notice of dishonor, protest,
      demand and diligence. This Note may be amended only by a writing executed by
      Borrower and Holder.

    

    9. 
Governing
      Law.
      This
      Note will be governed by and construed in accordance with the internal laws
      of
      the State of California as applied to agreements between residents thereof
      to be
      performed entirely within such State, without reference to that body of law
      relating to conflict of laws or choice of law.

    

    10.         Severability;
      Headings.
      The
      invalidity or unenforceability of any term or provision of this Note will not
      affect the validity or enforceability of any other term or provision hereof.
      The
      headings in this Note are for convenience of reference only and will not alter
      or otherwise affect the meaning of this Note.

    

    11.         Jurisdiction;
      Venue.
      Borrower, by its execution of this Note, hereby irrevocably submits to the
      in
      personal jurisdiction of the state courts of the State of California and of
      the
      United States District Court for the Northern District of California that are
      located in Sacramento, California, for the purpose of any suit, action or other
      proceeding arising out of or based upon this Note.

     

     

    
      
        
        

      

      
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    12.         Assignment.
      This
      Note is not assignable by Holder without the written consent of Borrower. This
      Note may not be assigned or delegated by Borrower, whether by voluntary
      assignment or transfer, operation of law, merger or otherwise.

    

    13.         Credit
      Agreement and Security Agreement.
      This
      Note incorporates by reference all the provisions of the Credit Agreement and
      the Security Agreement, including but not limited to all provisions contained
      therein with respect to Events of Default, waivers, remedies and covenants,
      and
      the description of the benefits, rights and obligations of each of Borrower
      and
      Holder under the Credit Agreement and the Security Agreement.

    

    IN
      WITNESS WHEREOF, the Borrower has executed and delivered this Note effective
      as
      of the date first above written.

    

    

    
      	 	
              SOLAR
                POWER, INC.

            
	 	 
	 	
              /s/
                Glenn
                Carnahan                                     
                

            
	 	
              Glenn
                Carnahan, Chief Financial Officer

            

    

    

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
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    SCHEDULE
      A

    

    LOANS
      AND
      PAYMENTS OF PRINCIPAL

    
      	 	 	 	 
	
              Date
                

            	
              Amount
                of Loan

            	
              Amount
                of Principal Repaid

            	
              Notation
                Made By

            
	 
	
              
                

              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            
	 
	
              

            

    

    

    

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      4Exhibit 26 (10.23) - Demand Promissory Note ($1,446,565)

    
      

      

    

    Exhibit
      10.23

    

      DEMAND
        PROMISSORY NOTE

      

      

      
        	
                $1,446,565.00

              	
                Granite
                  Bay, California

              
	 	
                November
                  15, 2006

              

      

      

      FOR
        THE
        VALUE RECEIVED,
        Solar
        Power, Inc., a California corporation, with a principal place of business
        at
        4080 Cavitt Stallman Road, Suite 100, Granite Bay, California 95746 (the
        “Maker”), promises to pay to Solar Power, Inc., formerly Welund Fund, Inc., a
        Nevada corporation (the “Holder”) or order, the principal sum of One Million
        Four Hundred Forty Six Thousand Five Hundred Sixty Five Dollars ($1,446,565.00),
        with interest from the date hereof on unpaid principal balance at the rate
        of
        eight percent (8%), simple interest per annum, based upon a 365 day year
        (the
“Interest Rate”).

      

      1.  
        The
        Note.
        The
        Maker, Holder and Welund Acquisition, Inc., a Nevada corporation and a
        wholly-owned subsidiary of the Holder (the “Merger Sub”), are parties to a
        certain Agreement and Plan of Merger dated August 23, 2006 (as amended, the
        “Merger Agreement”), which contemplates the merger of the Merger Sub into the
        Maker with the Maker surviving as the wholly-owned subsidiary of the Holder
        (the
“Merger”). The Maker is consummating a merger with and into Dale Renewables
        Consulting, Inc., a California corporation (“DRCI”), pursuant to which the Maker
        will be the surviving corporation in accordance to the terms and conditions
        set
        forth by the Agreement and Plan of Merger dated August 20, 2006 by and among
        DRCI, the Maker, Todd Lindstrom, Ronald Stickney and Jim Underwood, as amended
        by the First Amendment to the Agreement and Plan of Merger dated October
        31,
        2006 and as further amended by that certain Second Amendment to the Agreement
        and Plan of Merger dated November 15, 2006 (collectively, the “DRCI Merger
        Agreement”). Under the terms of the DRCI Merger Agreement, the merger
        consideration to be paid by the Maker is a total of $1,446,565 (the “Merger
        Consideration”) and the Maker required a loan from the Holder to pay the Merger
        Consideration. The Holder, in its sole and absolute discretion, separate
        from
        any obligations and rights set forth in the Merger Agreement, has loaned
        the
        Maker One Million Four Hundred Forty Six Thousand Five Hundred Sixty Five
        Dollars ($1,446,565.00) to be used for the Merger Consideration. All unpaid
        principal and any unpaid accrued interest shall be due and payable to the
        Holder
        in accordance to the terms of this Note and in no event shall be conditioned
        upon the consummation of the Merger. 

      

      2.  
        Repayment.
        The
        entire unpaid balance of the principal and accrued interest thereon shall
        be due
        and payable upon demand of payment by Holder. All payments shall be credited
        first to accrued but unpaid interest due under the Note, and second, to the
        reduction of the unpaid principal. 

      

      3.  
        Prepayments.
        Maker
        may prepay this Note in whole or in part at any time without penalty. Partial
        prepayments shall be credited (i) first toward accrued but unpaid interest
        due
        under this Note and (ii) second toward the reduction of the unpaid
        principal.

      

      4.  
        Costs.
        In the
        event that (i) any payment under this Note is not made at the time and in
        the
        manner required hereunder, and (ii) the Holder hereof incurs any costs of
        collection or other costs reasonably necessary for the protection of the
        interest of Holder with respect to this Note, including reasonable attorney’s
        fees, Maker agrees to pay any and all costs and expenses (regardless of the
        particular nature thereof and whether incurred before or after the initiation
        of
        suit or before or after judgment) which may be incurred by the Holder hereof
        in
        connection with the enforcement of any of its rights under this Note, including
        court costs and attorneys' fees.

      

      5.  
        Waivers.
        Maker
        shall waive presentment by Holder for payment, demand, notice of dishonor
        and
        nonpayment of this Note, and consent to any and all extensions of time,
        renewals, waivers or modifications that may be granted by Holder with respect
        to
        the payment or other provisions of this Note, with or without
        substitution.

      

      
        
          
          

        

        
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      6.  
        Governing
        Law.
        This
        Note is delivered in the State of California and all actions arising out
        of or
        in connection with this Note shall be governed by and construed in accordance
        with the laws of the State of California without regard to its conflicts
        of laws
        provisions.

      

      7.  
        Severability.
        If for
        any reason one or more of the provisions of this Note or their application
        to
        any person or circumstances shall be held to be invalid, illegal or
        unenforceable in any respect or to any extent, such provisions shall
        nevertheless remain valid, legal and enforceable in all such other respects
        and
        to such extent as may be permissible. In addition, any such invalidity,
        illegality or unenforceability shall not affect any other provisions of this
        Note, but this Note shall be construed as if such invalid, illegal or
        unenforceable provision had never been contained therein.

      

      8.  
        Successors
        and Assigns; Transferability.
        This
        Note inures to the benefit of Holder and binds Maker and its respective
        successors and assigns. This Note shall not be transferable or assignable,
        by
        operation of law or otherwise, by Maker without the express written consent
        of
        Holder. Any transfer in violation of this provision shall be void ab initio.
        The
        Holder may assign this Note at any time without the consent of Maker. Following
        the effective date of any assignment by Holder, Holder shall provide Maker
        immediate notice of such assignment, which notice shall identify the assignee
        and provide the address and facsimile number of such assignee. Unless and
        until
        Maker receives a notice of an assignment, Maker shall be permitted to recognize
        the Holder as holder of the Note and shall not be liable for any payment
        made to
        Holder instead of the assignee of the Note. Following receipt of notice of
        an
        assignment of the Note, Maker shall recognize the assignee as Holder for
        all
        purposes under this Note.

      

      9.  
        Amendment.
        Any
        provision of this Note may be amended, waived or modified upon the written
        consent of both the Maker and Holder.

      

      IN
        WITNESS WHEREOF, the undersigned has executed this Note on the date first
        written above.

      

      
        	 	
                MAKER

              
	 	 
	 	
                Solar
                  Power, Inc. 

              
	 	
                a
                  California corporation

              
	 	 
	 	/s/ Glenn
                Carnahan                                              
                
	 	
                By:
                  Glenn Carnahan

              
	 	
                Its:
                  Cheif Financial Officer

              

      

      
 

       

       

       

       

       

       

       

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