REVOLVING CREDIT
NOTE
FOR VALUE RECEIVED , the undersigned, MTS ACQUISITION COMPANY,
INC. , a California corporation (the “ Maker
”), hereby promises to pay to GENERAL ENVIRONMENTAL
MANAGEMENT, INC. , a Delaware corporation
(“ GEM ”), or registered assigns (hereinafter,
collectively with GEM, referred to as the “ Payee
”), on December 31, 2010 (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
Hundred Thousand ($700,000) Dollars or, if less, the aggregate
unpaid principal amount of all Advances made by the Payee to the
Maker pursuant to that certain Revolving Credit Agreement of even
date herewith by and between GEM 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, payable 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) ten
(10%) 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, and accrued interest shall be
payable on demand. 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 September 1, 2009,
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 2.06 of the Loan
Agreement.
Unless the Maker shall be otherwise notified in
writing by the Payee, all principal and interest hereunder are
payable in lawful money of the United States of America at the
office of the Payee, or to the Payee’s designated bank
account, in immediately available funds. Payments of
principal and/or interest hereunder shall be made by wire or
electronic funds transfer to
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