SECURED PROMISSORY NOTE
Exhibit
10.22
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Granite
Bay, California
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$445,000
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November
7, 2006
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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.
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/s/
Xxxxx
Xxxxxxxx
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Xxxxx
Xxxxxxxx, Chief Financial Officer
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SCHEDULE
A
LOANS
AND
PAYMENTS OF PRINCIPAL
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Date
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Amount
of Loan
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Amount
of Principal Repaid
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Notation
Made By
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