REVOLVING CREDIT NOTE
| $6,500,000 | March 29, 2013 |
New York, New York
For value received, the receipt and sufficiency of which are hereby acknowledged, XZERES CORP., a Nevada corporation, and XZERES ENERGY SERVICES CORP., a Nevada corporation (jointly and severally, individually and collectively, the “Borrower”), hereby promises to pay RENEWABLE POWER SOURCES, LLC, a Delaware limited liability company (“Lender”) at its offices located at 000 Xxxx 00xx Xxxxxx, 0X, Xxx Xxxx, Xxx Xxxx 00000, Six Million Five Hundred Thousand Dollars ($6,500,000) or such greater or lesser amount of Advances as shall be advanced by Lender from time to time pursuant to the Agreement referred to below, together with interest on the unpaid balance of such amount from the date of the initial Advance. This Note is the Note issued under the Loan and Security Agreement among Borrower and Lender of even date herewith (said Loan and Security Agreement, as the same may be amended, restated or supplemented from time to time, being herein called the “Agreement”) to which a reference is made for a statement of all of the terms and conditions of the Loan evidenced hereby. Capitalized terms not defined in this Note shall have the respective meanings assigned to them in the Agreement. This Note is secured by the Agreement, the other Loan Documents and the Collateral, and is entitled to the benefit of the rights and security provided thereby.
Interest on the outstanding principal balance under this Note is payable at the Interest Rate, or, under the circumstances contemplated by the Agreement, at the Default Interest Rate, in immediately available United States Dollars at the time and in the manner specified in the Agreement. The outstanding principal and interest under this Note shall be immediately due and payable on the Maturity Date. Payments received by Lender shall be applied against principal and interest as provided for in the Agreement. Borrower acknowledges that (a) Lender is authorized under the Agreement to charge to the Loan unpaid Obligations of Borrower to Lender, (b) the principal amount of the Loan will be increased by such amounts, and (c) the principal, as so increased, will bear interest as provided for herein and in the Agreement.
To the fullest extent permitted by applicable law, Borrower waives: (a) presentment, demand and protest, and notice of presentment, dishonor, intent to accelerate, acceleration, protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all of the Obligations, the Loan Documents or this Note; (b) all rights to notice and a hearing prior to Lender’s taking possession or control of, or to Lender’s replevy, attachment or levy upon, the Collateral or any bond or security that might be required by any court prior to allowing Lender to exercise any of its remedies; and (c) the benefit of all valuation, appraisal and exemption laws.
Xxxxxxxx acknowledges that this Note is executed as part of a commercial transaction and that the proceeds of this Note will not be used for any personal or consumer purpose.
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Upon the occurrence of any one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable, all as provided therein.
Xxxxxxxx agrees to pay to Xxxxxx all Fees and expenses described in the Agreement.
XXXXXXXX ACKNOWLEDGES THAT XXXXXXXX HAS WAIVED THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ON THIS NOTE. THIS NOTE IS GOVERNED BY THE INTERNAL LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Chief Executive Officer
XZERES ENERGY SERVICES CORP.
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Chief Executive Officer
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