Note 4
PROMISSORY NOTE
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August 23, 1996
Pursuant to, and subject to the terms of, the Third Amendment to Loan
Agreement between the parties dated August, 1996 ("Amendment"), New Energy
Company of Indiana Limited Partnership, an Indiana limited partnership, ("New
Energy") promises to pay to the order of the Business Development Corporation
of South Bend, Mishawaka, St. Xxxxxx County, Indiana ("BDC") the principal sum
of up to Eight Hundred Six Thousand Nine Hundred Seventeen and 68/100 Dollars
($806,917.68); together with interest as provided in this Promissory Note
("Note"), until payment in full. Principal sums will be deemed to have been
loaned to New Energy as provided in the Amendment beginning October 1, 1996
and on the first day of each consecutive month thereafter. Interest shall
accrue at the rate of six percent (6%) per year compounded monthly. The
principal and accrued interest shall be payable as follows:
A. Commencing on the first day of the month immediately following the
AIC Maturity Date (as defined in the Amendment) and on the first day of each
consecutive calendar month thereafter, equal monthly payments which shall
include principal and interest thereon, and all without relief from valuation
and appraisement laws and with attorneys fees and costs of collection. Such
payments shall be in amounts so as to fully amortize the Note over its term.
This Note shall mature on and all principal and accrued interest on this Note
shall be due and payable on November 1, 1999. Payments must be made by
personal delivery or United States mail, correct postage prepaid, at the
office of the BDC.
B. Any late payments shall bear additional interest (aside from the
normal rate of interest established at six percent [6%] per year compounded
monthly) on both principal and interest due at the rate of six percent (6%)
per year, compounded monthly, during such period of any delinquency.
Subject to the terms of the Subordination Agreement (as later defined),
voluntary prepayments of the amounts due under this Note may be made at any
time without penalty. Such prepayment may be made in any amount. To the
extent required under the terms of paragraph 5 of the Amendment,
prepayments shall be made.
Payments shall be applied first to the payment of any unpaid interest,
secondly to the unpaid balance of any other unpaid debt on account of this
2
obligation, and thirdly the remainder to be applied on the unpaid principal of
the debt until it is paid in full.
The undersigned waives presentment for payment, protest, notice of
protest and nonpayment of this Note and agrees that on default in any payment
of principal or interest, the whole amount remaining unpaid shall immediately
become due and payable without notice of nonpayment or demand for payment.
Extension of time for payment shall not release or discharge New Energy.
Anything contained in this Note to the contrary notwithstanding, the
indebtedness evidenced by this Note shall have the rights and priorities as
set forth in the Amended and Restated Loan and Restructuring Agreement, as the
same has been amended from time to time, between New Energy and the United
States Department of Energy dated December 23, 1991 and in the Subordination
and Intercreditor Agreement among New Energy, the United States of America,
the BDC and Great American Insurance Company dated the 23rd day of August,
1996 ("Subordination Agreement").
NEW ENERGY COMPANY OF INDIANA
LIMITED PARTNERSHIP BY ITS GENERAL
PARTNER NEW ENERGY CORPORATION OF
INDIANA
By: /s/ Xxxxx X. Xxxxxxxxx
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Its: President
