REVOLVING CREDIT
NOTE
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$7,000,000
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August 31, 2008
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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.
The Maker hereby waives presentment, demand,
dishonor, protest, notice of protest, diligence and any other
notice or action other
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