EXHIBIT 4(R)
CONSOLIDATED, AMENDED AND RESTATED
SECURED PROMISSORY NOTE
$2,000,000.00 November 15, 1998
FOR VALUE RECEIVED, the undersigned, CONSUMAT ENVIRONMENTAL SYSTEMS,
INC. ("Maker"), a Virginia corporation, and SIRROM INVESTMENTS, INC. ("Lender"),
a Tennessee corporation, promises to pay to the order of SIRROM INVESTMENTS,
INC., a Tennessee corporation ("Payee"; Payee and any subsequent holder[s]
hereof are hereinafter referred to collectively as "Holder"), at the office of
Payee in Nashville, Tennessee, or at such other place as Holder may designate to
Maker in writing from time to time, and by automatic debit if Holder so
requires, the principal sum of Two Million and No/100 Dollars ($2,000,000.00),
together with interest on the outstanding principal balance hereof from the date
hereof at the rate of fourteen percent (14%) per annum (computed on the basis of
a 360-day year).
Interest only on the outstanding principal balance hereof shall be due
and payable monthly, in arrears, with the first installment being payable on the
first (1st) day of December, 1998, and subsequent installments being payable on
the first (1st) day of each succeeding month thereafter until March 11, 2001
(the "Maturity Date"), at which time the entire outstanding principal balance,
together with all accrued and unpaid interest.
The indebtedness evidenced hereby may be prepaid in whole or in part, at
any time and from time to time, without penalty. Any such prepayments shall be
credited first to any accrued and unpaid interest and then to the outstanding
principal balance hereof.
1
Time is of the essence of this Note. It is hereby expressly agreed that in the
event that any default be made in the payment of principal or interest as
stipulated above, which default is not cured within ten (10) days after written
notice to Maker; or in the event that any default or event of default shall
occur under that certain Loan Agreement dated as of March 12, 1996, between
Maker and Payee, as amended (the "Loan Agreement"), which default or event of
default is not cured following the giving of any applicable notice and within
any applicable cure period set forth in said Loan Agreement; or should any
default by Maker be made in the performance or observance of any covenants or
conditions contained in any other instrument or document now or hereafter
evidencing, securing or otherwise relating to the indebtedness evidenced hereby
(subject to any applicable notice and cure period provisions that may be set
forth therein); then, and in such event, the entire outstanding principal
balance of the indebtedness evidenced hereby, together with any other sums
advanced hereunder, under the Loan Agreement and/or under any other instrument
or document now or hereafter evidencing, securing or in any way relating to the
indebtedness evidenced hereby, together with all unpaid interest accrued
thereon, shall, at the option of Holder and without notice to Maker, at once
become due and payable and may be collected forthwith, regardless of the
stipulated date of maturity. Upon the occurrence of any default as set forth
herein, at the option of Holder and without notice to Maker, all accrued and
unpaid interest, if any, shall be added to the outstanding principal balance
hereof, and the entire outstanding principal balance, as so adjusted, shall bear
interest thereafter until paid at an annual rate (the "Default Rate") equal to
the lesser of (i) the rate that is two percentage points (2.0%) in excess of the
above-specified interest rate, or (ii) the maximum rate of interest allowed to
be charged under applicable law (the "Maximum Rate"), regardless of whether or
not there has been an acceleration of the payment of principal as set forth
herein. All such interest shall be paid at the time of and as a condition
precedent to the curing of any such default.
In the event this Note is placed in the hands of an attorney for
collection, or if Holder incurs any costs incident to the collection of the
indebtedness evidenced hereby, Maker and any indorsers hereof agree to pay to
Holder an amount equal to all such costs, including without limitation all
actual reasonable attorney's fees and all court costs.
Presentment for payment, demand, protest and notice of demand, protest
and nonpayment are hereby waived by Maker and all other parties hereto. No
failure to accelerate the indebtedness evidenced hereby by reason of default
hereunder, acceptance of a past-due installment or other indulgences granted
from time to time, shall be construed as a novation of this Note or as a waiver
of such right of acceleration or of the right of Holder thereafter to insist
upon strict compliance with the terms of this Note or to prevent the exercise of
such right of acceleration or any other right granted hereunder or by applicable
laws. No extension of the time for payment of the indebtedness evidenced hereby
or any installment due hereunder, made by agreement with any person now or
hereafter liable for payment of the indebtedness evidenced hereby, shall operate
to release, discharge, modify, change or affect the original liability of Maker
hereunder or that of any other person now or hereafter liable for payment of the
indebtedness evidenced hereby, either in whole or in part, unless Xxxxxx agrees
otherwise in writing. This Note may not be changed orally, but only by an
agreement in writing signed by the party against whom enforcement of any waiver,
change, modification or discharge is sought.
2
The indebtedness and other obligations evidenced by this Note are
further evidenced by (i) the Loan Agreement and (ii) certain other instruments
and documents, as may be required to protect and preserve the rights of Maker
and Payee as more specifically described in the Loan Agreement.
All agreements herein made are expressly limited so that in no event
whatsoever, whether by reason of advancement of proceeds hereof, acceleration of
maturity of the unpaid balance hereof or otherwise, shall the amount paid or
agreed to be paid to Holder for the use of the money advanced or to be advanced
hereunder exceed the Maximum Rate. If, from any circumstances whatsoever, the
fulfillment of any provision of this Note or any other agreement or instrument
now or hereafter evidencing, securing or in any way relating to the indebtedness
evidenced hereby shall involve the payment of interest in excess of the Maximum
Rate, then, ipso facto, the obligation to pay interest hereunder shall be
reduced to the Maximum Rate; and if from any circumstance whatsoever, Holder
shall ever receive interest, the amount of which would exceed the amount
collectible at the Maximum Rate, such amount as would be excessive interest
shall be applied to the reduction of the principal balance remaining unpaid
hereunder and not to the payment of interest. This provision shall control every
other provision in any and all other agreements and instruments existing or
hereafter arising between Maker and Holder with respect to the indebtedness
evidenced hereby.
This Note is intended as a contract under and shall be construed and
enforceable in accordance with the laws of the State of Tennessee, except to the
extent that federal law may be applicable to the determination of the Maximum
Rate.
This Note evidences the same obligations previously evidenced by the
following (the "Prior Notes"): (i) that Secured Promissory Note dated March 26,
1997, made by Maker payable to the order of Payee in the original principal
amount of $500,000; (ii) that Secured Promissory Note dated March 12, 1996, made
by Maker payable to the order of Payee in the original principal amount of
$500,000; (iii) that Secured Promissory Note dated January 16, 1995, made by
Maker payable to the order of Payee in the original principal amount of
$500,000; and (iv) that Amended and Restated Secured Promissory Note dated
October 26, 1995, made by Maker payable to the order of Payee in the original
principal amount of $500,000.
This Note is a consolidation, amendment and restatement of the Prior
Notes and does not evidence a novation thereof. All collateral securing the
Prior Notes remains in full effect to secure the obligations evidenced hereby.
3
As used herein, the terms "Maker" and "Holder" shall be deemed to
include their respective successors, legal representatives and assigns, whether
by voluntary action of the parties or by operation of law.
MAKER:
CONSUMAT ENVIRONMENTAL SYSTEMS, INC.,
a Virginia corporation
By:___________________________________
