Exhibit 10.18
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INTEREST EXPENSE
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ACKNOWLEDGEMENT
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This Interest Expense Acknowledgement (the "Acknowledgement") is made
as of this 1st day of February 2006 by and between Enron Wind Systems, LLC, a
California limited liability company ("EWS"), and Zond Windsystem Partners, Ltd.
Series 85-A, a California limited partnership (the "Partnership").
RECITALS
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A. WHEREAS, EWS is the assignee under and holder of those certain
promissory notes made by the Partnership described on Exhibit A attached hereto
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(collectively, the "Promissory Notes"), which Promissory Notes were previously
held by ZWHC LLC as successor to Zond Construction Corporation III.
B. WHEREAS, since January 1, 1996 neither ZWHC LLC nor EWS has required
the Partnership to pay, and the Partnership has not paid, any interest on the
outstanding principal of the Promissory Notes other than the interest set forth
on the amortization schedules that are attached to the Promissory Notes, as
amended (the "Amortization Schedules").
C. WHEREAS, the parties have been unable to locate the written
documentation, if any, that memorializes the arrangement described in Recital B
above relating to the payment of interest on the Promissory Notes for the period
on and after January 1, 1996 and they desire to acknowledge, confirm and
memorialize such arrangement pursuant to this Acknowledgement.
NOW, THEREFORE, it is hereby acknowledged and confirmed as follows:
ACKNOWLEDGEMENT
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1. Interest Payments Due Under the Promissory Notes. The parties hereby
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acknowledge, confirm and agree that, with respect to interest payable under the
Promissory Notes since January 1, 1996, the Partnership has been and is required
to pay only that interest set forth on the Amortization Schedules. Without
limiting the generality of the foregoing, the Partnership has not been and is
not required to pay any additional or other interest, except the interest set
forth on the Amortization Schedules, with respect to (i) the portion of the
annual principal payments that was due and unpaid under the Promissory Notes at
the end of any calendar year from 1996 through 2001 and (ii) any principal
balance of the Promissory Notes outstanding at any time after the maturity date
of the Promissory Notes, either pursuant to the agreement acknowledged herein or
otherwise.
2. Principal Payments Under the Promissory Notes. The parties hereby
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acknowledge that during the calendar years 1996 through 2001 the Partnership did
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not pay all of the regularly scheduled principal payments due under the
Promissory Notes and, notwithstanding the maturity of the Promissory Notes in
December 2001, the Partnership has not paid all of the outstanding principal
balance on the Promissory Notes. The Partnership acknowledges that (i) it is in
default under the Promissory Notes, (ii) such outstanding principal balance on
the Promissory Notes is due and payable to EWS and (iii) the payment of such
outstanding principal balance has not been waived, forgiven or reduced in any
manner by EWS, either pursuant to this Acknowledgement or otherwise.
3. Miscellaneous Provisions.
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3.1 Further Assurances. The parties agree to perform all such acts
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(including, without limitation, executing and delivering instruments and
documents) as reasonably may be necessary to effectuate fully the intent and
each and all of the purposes of the agreement acknowledged in this
Acknowledgement.
3.2 Governing Law. This Acknowledgement shall be governed by and
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construed in accordance with the laws of the State of California.
3.3 Successors and Assigns. The agreement acknowledged in this
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Acknowledgement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective transferees, successors and assigns.
3.4 Counterparts. This Acknowledgement may be executed in
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counterparts, each of which shall be deemed an original, when executed,
separately or together, and all of such counterparts shall constitute a single
original instrument, effective in the same manner as if all parties hereto had
executed one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Acknowledgement
to be duly executed as of the date hereinabove first written.
EWS Partnership
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Enron Wind Systems, LLC Zond Windsystem Partners, Ltd. Series
85-A, a California limited
By: Enron Wind LLC, its sole member partnership
By: Enron Renewable Energy Corp.,
its sole member
By: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxxxx
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Name: Xxxxx X. Xxxxxx Name: Xxxxx X. Xxxxxx
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Title: President and CEO Title: President
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Address Address
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1221 Xxxxx 0000 Xxxxx
Xxxxx 0000 Xxxxx 0000
Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Agreed to and acknowledged by:
ZWHC LLC
By: Enron Wind Systems, LLC, its sole
member
By: Enron Wind LLC, its sole member
By: Enron Renewable Energy Corp., its
sole member
By: /s/ Xxxxx X. Xxxxxx
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Name: Xxxxx X. Xxxxxx
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Title: President and CEO
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Exhibit A
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Promissory Notes
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1. Series A Promissory Note dated as of November 22, 1985 in the amount of
$8,568,000 issued by the Partnership to Zond Construction Corporation III
("ZCC").
2. Series A Promissory Note dated as of November 27, 1985 in the amount of
$1,028,160 issued by the Partnership in favor of ZCC.
3. Series A Promissory Note dated as of December 16, 1985 in the amount of
$4,112,640 issued by the Partnership in favor of ZCC.
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