FEE NOTE
FOR VALUE RECEIVED, GENERAL ENVIRONMENTAL
MANAGEMENT, INC., a Nevada corporation (the “ Maker
”), hereby promises to pay to CVC California, LLC, a Delaware
limited liability company (“ CVC ”), or
registered assigns (collectively with CVC, the “ Payee
”), the sum of One Hundred Sixty-Four Thousand ($164,000)
Dollars (the “ Principal ”), with interest
thereon, on the terms and conditions set forth herein and in the
Revolving Credit and Term Loan Agreement dated as of August 31,
2008 by and between CVC and the Maker (as same has been and may
hereafter be amended, modified, supplemented and/or restated from
time to time, the “ Loan Agreement
”). Terms defined in the Loan Agreement and not
otherwise defined herein shall have the meanings assigned thereto
in the Loan Agreement.
Payments of principal of, interest on and any
other amounts with respect to this Fee Note (this “
Note ”) are to be made in lawful money of the United
States of America.
(a)
Interest . This Note shall bear interest (“
Interest ”) on Principal amounts outstanding from time
to time from the date hereof at the rate of seven (7%) percent per
annum; provided , however , that during the
continuance of any Event of Default, the Interest rate hereunder
shall be increased to twelve (12%) percent per
annum. All Interest shall be computed on the daily
unpaid Principal balance of this Note based on a three hundred
sixty (360) day year, and shall be payable monthly in arrears on
the first day of each calendar month commencing July 1, 2009 and on
the maturity hereof.
(b)
Principal . The Principal of this Note shall be
payable in full on August 31, 2011.
(c)
Non-Business Day . If any scheduled payment date
as aforesaid is not a business day in the State of California or
the State of Florida, then the payment to be made on such scheduled
payment date shall be due and payable on the next succeeding
business day, with additional interest on any Principal amount so
delayed for the period of such delay.
(a)
Optional Prepayment of Principal . The unpaid Principal
balance of this Note may, at the Maker’s option, be prepaid
in whole or in part, without premium or penalty, at any time or
from time to time upon twenty (20) days’ prior written notice
to the Payee.
(b)
Mandatory Prepayment of Principal . The Principal
of this Note may be required to be prepaid in accordance with
Section 2.07 of the Loan Agreement.
(c)
Interest . Each prepayment of Principal shall be accompanied
by all accrued Interest on the Principal amount prepaid accrued to
the date of prepayment.
(d)
Application of Payments . Any and all prepayments
hereunder shall be applied first to unpaid accrued Interest on the
Principal amount being prepaid, and then to Principal.
3.
Loan Documents . This Note is issued pursuant to
the terms of the Loan Agreement and is secured pursuant to the
provisions of certain “Security Documents” referred to
in the Loan Agreement. This Note is entitled to all of
the benefits of the Loan Agreement and in said Security Documents,
including provisions governing the payment and the acceleration of
maturity hereof, which agreements and instruments are hereby
incorporated by reference herein and made a part
hereof. The occurrence and continuance of an Event of
Default under the Loan Agreement shall constitute a default under
this Note and shall entitle the Payee to accelerate the entire
indebtedness hereunder and take such other action as may be
provided for in the Loan Agreement and/or in any and all