Document:

DC7899.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
EXHIBIT 10.9

	
PROMISSORY NOTE

	
Up to $24,500,000 
		
 		
February 16, 2010 
	
	
 
		
 		
New York, New York 
	

     FOR VALUE RECEIVED, Raser Technologies, Inc., a Delaware corporation, Intermountain Renewable Power, LLC, a Delaware limited liability company (“IRP”), Raser Power Systems, LLC, a Delaware
limited liability company, Western Renewable Power, LLC, a Delaware limited liability company, RT Patent Company, Inc., a Delaware corporation and Columbia Renewable Power, LLC, a Delaware limited liability company (collectively, "Raser"), hereby promises to pay to MERRILL LYNCH, PIERCE, FENNER & SMITH 

INCORPORATED, a Delaware corporation ("MLP"), the Shortfall (as defined in the Redemption Agreement (as defined below)), but in no event more than the principal sum of
Twenty-Four Million Five Hundred Thousand Dollars ($24,5000,000), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided herein; provided that if IRP has not caused the Thermo No.1 BE-01, LLC (the “Company”) to distribute the Interconnection Assets (as defined in the deed of trust securing this Note) to IRP in accordance
with Section 6.1(e) of the Amended and Restated Limited Liability Agreement of the Company, dated as of August 31, 2008, as amended, by the date (the “Trigger Date”) which is thirty (30) days following the satisfaction of the conditions to the release of the Interconnection Assets set forth in Article XI of that certain Account and Security Agreement by and
between the Company and Deutsche Bank Trust Company Americas, dated as of August 31, 2008, as amended (the “Account and Security Agreement”), then the principal amount of this Note
shall be increased by One Hundred Thousand Dollars ($100,000) for each month following the Trigger Date (or portion of a month on a pro rated basis based on the number of days in such month) during which the Company holds title to the
Interconnection Assets.

     This Note is the Raser Note referenced in that certain Membership Interest Redemption Agreement dated as of December 3, 2009 (as amended, supplemented or otherwise modified in accordance with the
terms thereof and in effect from time to time, the "Redemption Agreement") among Raser, the Company, MLP, and IRP and evidences the
amount owing by Raser on the date hereof under the Raser Guaranty as the result of any shortfall in the Redemption Consideration paid by the Company to MLP under the Redemption Agreement. Capitalized terms used but not defined in this Note have the
respective meanings assigned to them in the Redemption Agreement.

     Raser has caused IRP to instruct and will cause the Company to pay to MLP all amounts to be distributed (or paid pursuant to Section 3.2.1.5 of the Account and Security Agreement) to IRP (as the Class
B Investor) or a transferee or an Affiliate of IRP (pursuant to instructions from IRP or the transferee or Affiliate described above) to be applied against the outstanding principal and accrued but unpaid interest under this Note, and Raser will
cause IRP 

and its Affiliates to instruct the Company and the Collateral Agent accordingly on the Effective Date of the Redemption Agreement or any later date on which a payment would be made to a transferee or Affiliate of IRP for whom such
instruction was not previously made. If, notwithstanding such instruction, IRP or the transferee or Affiliate described in the preceding sentence receives any distribution from the Company while any principal or unpaid interest remains outstanding
hereunder, IRP or such transferee or Affiliate will pay the same amount to MLP, to be applied to reduce such outstanding principal and unpaid interest within three (3) Business Days of receipt of such distribution by IRP or such transferee or
Affiliate. All amounts paid to MLP hereunder shall be applied first to the payment of accrued but unpaid interest and then to principal. This Note shall mature, and all amounts unpaid and outstanding hereunder shall be due and payable in full, on
the date which is February 15, 2011 (provided that if such date is not a Business Day, payment hereunder will be due and payable on the first Business Day immediately following such date).

     Principal amounts and unpaid interest outstanding under this Note shall bear interest at a rate of (i) fifteen percent (15%) per annum from the date hereof through August 15, 2010, and eighteen
percent (18%) per annum from August 16, 2010 through February 15, 2011 or until paid in full.

     The amounts due hereunder may be prepaid by Raser at any time. The Company hereby waives notice of presentment, demand, protest or notice of any other kind hereunder.

     The following shall be events of default under this note: (i) failure to pay any amounts due and payable under this Note on the date such payment is due; (ii) a breach of Section 2.5 of the Redemption
Agreement by Raser or any of its Affiliates or (iii) a failure by IRP or the Company, as applicable, to (a) take all steps that either is legally entitled to take and that are reasonably necessary to cause the Collateral Agent to release the
collateral and to cause the Company to transfer such collateral to IRP as described in Section 2.2.2 of the Redemption Agreement, or (b) cause such collateral to become subject to the Lien under the DTSA as soon as practicable, but in no event later
than ten Business Days following the satisfaction of the relevant release conditions contained in Article XI of the Account and Security Agreement, in each case as required under Section 2.2.2 of the Redemption Agreement. Upon the occurrence of an
event of default, MLP shall have the right, by written notice to Raser at the address for Raser given in the Redemption Agreement, to declare all principal and accrued but unpaid interest under this Note immediately due and payable, and to exercise
any and all remedies provided in any deed of trust or other security agreement providing collateral security for this Note, and to take any other actions at law or in equity that MLP may be entitled to take with respect to this Note.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WITHIN THE STATE OF NEW YORK.

	
RASER TECHNOLOGIES, INC.,

a Delaware corporation

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Principal Executive Officer

INTERMOUNTAIN RENEWABLE POWER, LLC, a Delaware limited liability company 

	
By: /s/ Richard D. Clayton 

Name: Richard D. Clayton

Title: Member

RASER POWER SYSTEMS, LLC, 

a Delaware limited liability company 

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Member

WESTERN RENEWABLE POWER, LLC,

a Delaware limited liability company

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Member

RT PATENT COMPANY, INC., 

a Delaware corporation 

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Principal Executive Officer

COLUMBIA RENEWABLE POWER, LLC, a Delaware limited liability company

	
By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Member

EXHIBIT 10.9

	
PROMISSORY NOTE

	
Up to $24,500,000 
		
 		
February 16, 2010 
	
	
 
		
 		
New York, New York 
	

     FOR VALUE RECEIVED, Raser Technologies, Inc., a Delaware corporation, Intermountain Renewable Power, LLC, a Delaware limited liability company (“IRP”), Raser Power Systems, LLC, a Delaware
limited liability company, Western Renewable Power, LLC, a Delaware limited liability company, RT Patent Company, Inc., a Delaware corporation and Columbia Renewable Power, LLC, a Delaware limited liability company (collectively, "Raser"), hereby promises to pay to MERRILL LYNCH, PIERCE, FENNER & SMITH 

INCORPORATED, a Delaware corporation ("MLP"), the Shortfall (as defined in the Redemption Agreement (as defined below)), but in no event more than the principal sum of
Twenty-Four Million Five Hundred Thousand Dollars ($24,5000,000), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided herein; provided that if IRP has not caused the Thermo No.1 BE-01, LLC (the “Company”) to distribute the Interconnection Assets (as defined in the deed of trust securing this Note) to IRP in accordance
with Section 6.1(e) of the Amended and Restated Limited Liability Agreement of the Company, dated as of August 31, 2008, as amended, by the date (the “Trigger Date”) which is thirty (30) days following the satisfaction of the conditions to the release of the Interconnection Assets set forth in Article XI of that certain Account and Security Agreement by and
between the Company and Deutsche Bank Trust Company Americas, dated as of August 31, 2008, as amended (the “Account and Security Agreement”), then the principal amount of this Note
shall be increased by One Hundred Thousand Dollars ($100,000) for each month following the Trigger Date (or portion of a month on a pro rated basis based on the number of days in such month) during which the Company holds title to the
Interconnection Assets.

     This Note is the Raser Note referenced in that certain Membership Interest Redemption Agreement dated as of December 3, 2009 (as amended, supplemented or otherwise modified in accordance with the
terms thereof and in effect from time to time, the "Redemption Agreement") among Raser, the Company, MLP, and IRP and evidences the
amount owing by Raser on the date hereof under the Raser Guaranty as the result of any shortfall in the Redemption Consideration paid by the Company to MLP under the Redemption Agreement. Capitalized terms used but not defined in this Note have the
respective meanings assigned to them in the Redemption Agreement.

     Raser has caused IRP to instruct and will cause the Company to pay to MLP all amounts to be distributed (or paid pursuant to Section 3.2.1.5 of the Account and Security Agreement) to IRP (as the Class
B Investor) or a transferee or an Affiliate of IRP (pursuant to instructions from IRP or the transferee or Affiliate described above) to be applied against the outstanding principal and accrued but unpaid interest under this Note, and Raser will
cause IRP and its Affiliates to instruct the Company and the Collateral Agent accordingly on the Effective Date of the Redemption Agreement or any later date on which a payment would be made to a 

transferee or Affiliate of IRP for whom such instruction was not previously made. If, notwithstanding such instruction, IRP or the transferee or Affiliate described in the preceding sentence receives any distribution from the
Company while any principal or unpaid interest remains outstanding hereunder, IRP or such transferee or Affiliate will pay the same amount to MLP, to be applied to reduce such outstanding principal and unpaid interest within three (3) Business Days
of receipt of such distribution by IRP or such transferee or Affiliate. All amounts paid to MLP hereunder shall be applied first to the payment of accrued but unpaid interest and then to principal. This Note shall mature, and all amounts unpaid and
outstanding hereunder shall be due and payable in full, on the date which is February 15, 2011 (provided that if such date is not a Business Day, payment hereunder will be due and payable on the first Business Day immediately following such
date).

     Principal amounts and unpaid interest outstanding under this Note shall bear interest at a rate of (i) fifteen percent (15%) per annum from the date hereof through August 15, 2010, and eighteen
percent (18%) per annum from August 16, 2010 through February 15, 2011 or until paid in full.

     The amounts due hereunder may be prepaid by Raser at any time. The Company hereby waives notice of presentment, demand, protest or notice of any other kind hereunder.

     The following shall be events of default under this note: (i) failure to pay any amounts due and payable under this Note on the date such payment is due; (ii) a breach of Section 2.5 of the Redemption
Agreement by Raser or any of its Affiliates or (iii) a failure by IRP or the Company, as applicable, to (a) take all steps that either is legally entitled to take and that are reasonably necessary to cause the Collateral Agent to release the
collateral and to cause the Company to transfer such collateral to IRP as described in Section 2.2.2 of the Redemption Agreement, or (b) cause such collateral to become subject to the Lien under the DTSA as soon as practicable, but in no event later
than ten Business Days following the satisfaction of the relevant release conditions contained in Article XI of the Account and Security Agreement, in each case as required under Section 2.2.2 of the Redemption Agreement. Upon the occurrence of an
event of default, MLP shall have the right, by written notice to Raser at the address for Raser given in the Redemption Agreement, to declare all principal and accrued but unpaid interest under this Note immediately due and payable, and to exercise
any and all remedies provided in any deed of trust or other security agreement providing collateral security for this Note, and to take any other actions at law or in equity that MLP may be entitled to take with respect to this Note.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WITHIN THE STATE OF NEW YORK.

	
RASER TECHNOLOGIES, INC.,

a Delaware corporation

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Principal Executive Officer

INTERMOUNTAIN RENEWABLE POWER, LLC, a Delaware limited liability company 

	
By: /s/ Richard D. Clayton 

Name: Richard D. Clayton

Title: Member

RASER POWER SYSTEMS, LLC, 

a Delaware limited liability company 

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Member

WESTERN RENEWABLE POWER, LLC,

a Delaware limited liability company

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Member

RT PATENT COMPANY, INC., 

a Delaware corporation 

By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Principal Executive Officer

COLUMBIA RENEWABLE POWER, LLC, a Delaware limited liability company

	
By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: MemberDC7889.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
EXHIBIT 10.2

	
FIRST AMENDMENT TO

EQUITY CAPITAL CONTRIBUTION AGREEMENT

     THIS FIRST AMENDMENT (this “Amendment”) to the Equity Capital Contribution Agreement dated as of August 31, 2008 (the
“Agreement”), by and among Intermountain Renewable Power, LLC, a Delaware limited liability company (“IRP”),
Merrill Lynch, Pierce, Fenner & Smith Incorporated, a Delaware corporation (“MLP”), and Thermo No. 1 BE-01, LLC, a Delaware limited liability company (the “Company”),
is made and entered on the 4th day of December, 2009, by and among IRP, MLP and the Company.

	
W I T N E S S E T H :

     WHEREAS, the Company was formed by virtue of its Certificate of Formation, filed with the Secretary of State of the State of Delaware on August 29, 2007, under the name Thermo No. 1 BE-01, LLC, and
the Original Operating Agreement of the Company, dated August 29, 2007;

WHEREAS, IRP was initially the sole Member of the Company;

     WHEREAS, IRP, the Company and MLE entered into the Agreement, pursuant to which MLE made capital contributions to the Company in exchange for the Class A Interests, IRP made additional capital
contributions to the Company and the membership interest held by IRP in the Company was converted into Class B Interests;

     WHEREAS, IRP and MLE entered into the LLC Operating Agreement, pursuant to which MLE was admitted as a Member of the Company, the Class A and B Interests were issued and certain other rights and
obligations were provided for;

     WHEREAS, MLE assigned 100 percent of its Class A Interests to MLP under the Assignment and Assumption Agreement by and between MLE and MLP, and MLP made a capital contribution to the Company on
October 17, 2008 under an amendment letter in satisfaction of the obligation to make the Second Funding Capital Contribution under the Equity Capital Contribution Agreement;

     WHEREAS, the Company is developing the Project, and, in connection therewith, is party to the EPC Agreement;

     WHEREAS, in addition to Capital Contributions made by IRP under the Agreement and the terms of the LLC Operating Agreement, IRP, through one or more Affiliates, has advanced funds necessary to cover
certain cost overruns relating to the Project (the “Cost Overrun Advances”);

     WHEREAS, IRP desires to contribute to the capital of the Company the Cost Overrun Advances and the Members desire to amend the Agreement to reflect such contribution as an additional Capital
Contribution by IRP in respect of its Class B Interests and to make other changes to the Agreement; and

     WHEREAS, in connection with developing the Project, the Company will file an application for a grant from the US Treasury under Section 1603 of division B of the American Recovery and Reinvestment Act
of 2009 (a “Cash Grant”);

     NOW, THEREFORE, in consideration of the agreements and covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

     Section 1. Defined Terms. Any capitalized term used in this Amendment but not otherwise defined in this Amendment shall have the meaning
ascribed to such term in the Agreement. Any reference to Merrill Lynch L.P. Holdings, Inc. will be replaced with MLP.

	
 
		
 		
Section 2. 
		
 		
Amendments to Agreement. The Agreement is hereby amended as 
	
	
follows: 
		
 		
 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
2.1 
		
 		
Section 2.2.3 is hereby deleted in its entirety and replaced with the 
	
	
following: 
		
 		
 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
 
		
 		
“2.2.3 Not later than the Effective Date, IRP will have contributed the 
	
	
 
		
 		
Facility, Facility Site, Leases, related Assets and all other rights related to any of 
	
	
 
		
 		
the foregoing to the Company, to the extent such Property is not then owned by 
	
	
 
		
 		
the Company. 
	
	
 
	
	
 
		
 		
2.2 
		
 		
The following is added as new Section 2.2.4: 
	
	
 
	
	
 
		
 		
 
		
 		
“2.2.4 Any Cost Overrun Advance listed on Schedule 1 to the First 
	
	
 
		
 		
Amendment to Amended and Restated Limited Liability Company Agreement 
	
	
 
		
 		
that IRP caused to be paid for the benefit of the Project and the Company are 
	
	
 
		
 		
deemed to be additional Capital Contributions made by IRP in respect of its Class 
	
	
 
		
 		
B Interests.” 
	

2.3 Section 3.23 is hereby deleted in its entirety and replaced with the

	
following:

“Section 3.23 Intangible Drilling Costs. For federal income tax purposes, all intangible drilling and development costs incurred by Raser, IRP or the Company before
the Effective Date (other than those intangible drilling and development costs incurred during 2007) have been or will be capitalized by Raser pursuant to Code Section 59(e) and an election was or will be made to amortize the costs over a 60-month
period. None of Raser, IRP or the Company has elected or will elect to expense any such costs for such tax purposes.”

     2.4 Subject to the Company receiving proceeds under the Cash Grant of at least $30,000,000, Sections 6.3 and 6.4 are hereby deleted in their entirety.

Section 3. Confirmation. Except as specifically modified by this 

Amendment, the terms and provisions of the Agreement are hereby ratified and confirmed and remain in full force and effect.

     Section 4. Governing Law; Jurisdiction. This Amendment shall in all respects be governed by and construed in accordance with the laws of the
State of New York, without giving effect to any choice of law rules thereof which may permit or require the application of the laws of another jurisdiction. The Parties hereby irrevocably submit to the jurisdiction of the courts of the State of New
York in the county of New York or of the United States of America in the Southern District of New York and hereby waive, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of venue in an such action
or proceeding in any such court.

     Section 5. Further Assurances. In connection with this Amendment and the transactions contemplated hereby, each Member shall execute and
deliver any additional documents and instruments and perform any additional acts that may be reasonably required or useful to carry out the intent and purpose of this Amendment and as are not inconsistent with the terms hereof.

     Section 6. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be an original but all of which
together will constitute one instrument, binding upon all parties hereto, notwithstanding that all of such parties may not have executed the same counterpart.

     Section 7. Joint Efforts. To the full extent permitted by Applicable Laws, neither this Amendment nor any ambiguity or uncertainty in this
Amendment will be construed against any of the parties hereto, whether under any rule of construction or otherwise. On the contrary, this Amendment has been prepared by the joint efforts of the respective attorneys for, and has been reviewed by,
each of the parties hereto.

	
[Signatures on Next Page]

     IN WITNESS WHEREOF, each party has caused this First Amendment to the Equity Capital Contribution Agreement to be signed on its behalf as of the date first written
above.

INTERMOUNTAIN RENEWABLE POWER, LLC, a Delaware limited liability company

	
By: /s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Member

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED a Delaware corporation

	
By: /s/ Faiz Ahmad

Name: Faiz Ahmad

Title: Director

THERMO NO. 1 BE-01, LLC,

a Delaware limited liability company

	
By: 
		
 		
Intermountain Renewable Power, LLC, 
	
	
 
		
 		
a Delaware limited liability company 
	
	
Its: 
		
 		
Managing Member 
	
	
 
	
	
 
		
 		
By: /s/ Richard D. Clayton 
	
	
 
		
 		
Name: Richard D. Clayton 
	
	
 
		
 		
Title: Member

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