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REVOLVING CREDIT NOTE

Promissory Note

REVOLVING CREDIT NOTE | Document Parties: GENERAL ENVIRONMENTAL MANAGEMENT, INC | CVC CALIFORNIA, LLC You are currently viewing:
This Promissory Note involves

GENERAL ENVIRONMENTAL MANAGEMENT, INC | CVC CALIFORNIA, LLC

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Title: REVOLVING CREDIT NOTE
Governing Law: New York     Date: 9/24/2008
Industry: Scientific and Technical Instr.     Sector: Technology

REVOLVING CREDIT NOTE, Parties: general environmental management  inc , cvc california  llc
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EXHIBIT 10.22

 

REVOLVING CREDIT NOTE

 

$7,000,000 

August 31, 2008

 

FOR VALUE RECEIVED , the undersigned, 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 (hereinafter, collectively with CVC, referred to as the “ Payee ”), on August 31, 2011 (or sooner by reason of an Event of Default or other mandatory prepayment event in accordance with the Loan Agreement hereinafter described), the principal sum of Seven Million ($7,000,000) Dollars or, if less, the aggregate then-outstanding principal amount of all Advances made by the Payee to the Maker pursuant to that certain Revolving Credit and Term Loan Agreement of even date herewith by and between CVC and the Maker (as same may be amended, modified, supplemented and/or restated from time to time, the “ Loan Agreement ”), together with interest (computed as hereinafter provided) on any and all principal amounts outstanding hereunder from time to time from the date hereof until payment in full hereof, at a rate per annum equal to the greater of (a) the Prime Rate (as such term is hereinafter defined) as in effect from time to time plus two (2%) percent, or (b) seven (7%) percent; provided , however , that during the continuance of any Event of Default under the Loan Agreement, the interest rate otherwise applicable hereunder shall be increased by five hundred (500) basis points.  All interest shall be computed on the daily unpaid principal balance hereof 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 October 1, 2008, and upon maturity or acceleration hereof.

 

As used herein, the term “Prime Rate” shall mean the “prime rate” or “base rate” of interest publicly announced by Citibank, N.A. (or any successor thereto, or in the event that such bank shall cease to exist and shall have no successor, any other domestic commercial bank selected by the Payee in good faith) from time to time, which is merely a reference rate for determining the interest rate to be charged on loans or other financial transactions, and may or may not be the best rate offered by such bank for commercial loans; and upon each announced change of the Prime Rate by such bank, the interest rate hereunder shall be correspondingly adjusted.

 

The Maker shall have the right, at any time and from time to time, without premium or penalty, to prepay all or any portion of the principal balance of this Note upon written notice to the Payee, stating the amount of the prepayment.  In addition, the Maker shall be required to make principal payments hereunder, without requirement of notice or demand, as and to the extent provided in Sections 2.01(d) and 2.07 of the Loan Agreement.

 

Unless the Maker shall be otherwise notified in writing by CVC, all principal and interest hereunder are payable in lawful money of the United States of America at the office of CVC set forth in the Loan Agreement in immediately available funds.  Payments of principal and/or interest hereunder shall be made, at the Payee’s option, by debiting any demand deposit account(s) in the name of the Maker at the Payee (or any agent of the Payee) or in such other reasonable manner as may be designated by the Payee in writing to the Maker and in any event shall be made in immediately available funds.  The Maker hereby irrevocably authorizes the Payee to so debit any and all such demand deposit accounts.

 

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The Maker hereby waives presentment, demand, dishonor, protest, notice of protest, diligence and any other notice or action other


 
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