Document:

ex_10-30.htm

    
      

      

    

    Exhibit
10.30

     

     

    
      
        
          
            	$164,000 	
                     June 1,
      2009

                  

          

           

           

        

        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.

         

        1.           Payments.

         

             
(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.

         

        
          
            
            

          

          
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        2.           Prepayment.

         

             
(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 other instruments evidencing and/or securing the indebtedness
under this Note, or as may be provided under the law.

         

        4.           Communications and
Notices.  Except
as otherwise specifically provided herein, all communications and notices
provided for in this Note shall be sent by reputable overnight courier or
facsimile to the Payee at the Payee’s address as provided to the Secretary of
the Maker from time to time and, if to the Maker, at 3191 Temple Avenue, Suite
250, Pomona, California 91768, Attention: Timothy J. Koziol, Fax # (909)
444-8356.  Any notice sent by overnight courier shall be deemed given
on the third (3rd)
Business Day after being deposited with the courier with all charges prepaid or
billed to the account of the sender. Any notice sent by facsimile shall be
deemed received on the date on which such notice is sent if such notice is sent
during normal business hours at the point of receipt (or otherwise on the next
succeeding Business Day).  The Maker and the Payee may from time to
time change their respective addresses or fax numbers, for purposes of this
Section 5, by written notice to the other parties; provided, however, that
notice of such change shall be effective only upon receipt.

         

        5.           Governing
Law.  This
Note shall be construed in accordance with and governed by the laws of the State of
New York, except to the extent superseded by Federal enactments.

         

        6.           Assignment.  This
Note shall be binding upon and shall inure to the benefit of the respective
successors and permitted assigns of the parties hereto, provided that the Maker
may not assign any of its rights or obligations hereunder without the prior
written consent of the Payee.

         

        7.           Waiver and
Amendment.  No
waiver of a right in any instance shall constitute a continuing waiver of
successive rights, and any one waiver shall govern only the particular matters
waived.  Neither any provision of this Note nor any performance
hereunder may be amended or waived except pursuant to an agreement in writing
signed by the party against whom enforcement thereof is
sought.  Except as otherwise expressly provided in this Note, the
Maker hereby waives diligence, demand, presentment for payment, protest,
dishonor, nonpayment, default, notice of any and all of the foregoing, and any
other notice or action otherwise required to be given or taken under the law in
connection with the delivery, acceptance, performance, default, enforcement or
collection of this Note, and expressly agrees that this Note, or any payment
hereunder, may be extended, modified or subordinated (by forbearance or
otherwise) from time to time, without in any way affecting the liability of the
Maker.  The Maker further waives the benefit of any exemption under
the homestead exemption laws, if any, or any other exemption, appraisal or
insolvency laws, and consents that the Payee may release or surrender, exchange
or substitute any personal property or other collateral security now held or
which may hereafter be held as security for the payment of this
Note.

         

        
          
            
            

          

          
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        8.           Usury Savings
Clause.  All
agreements between the Maker and the Payee are hereby expressly limited to
provide that in no contingency or event whatsoever, whether by reason of
acceleration of maturity of the indebtedness evidenced hereby or otherwise,
shall the amount paid or agreed to be paid to the Payee for the use, forbearance
or detention of the indebtedness evidenced hereby exceed the maximum amount
which the Payee is permitted to receive under applicable law.  If,
from any circumstances whatsoever, fulfillment of any provision hereof or of the
Loan Agreement or any Loan Document thereunder, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
prescribed by law, then, ipso facto, the obligation
to be fulfilled shall automatically be reduced to the limit of such validity,
and if from any circumstance the Payee shall ever receive as interest an amount
which would exceed the highest lawful rate, such amount which would be excessive
interest shall be applied to the reduction of the principal balance of any of
the Maker’s Obligations (as such term is defined in the Loan Agreement) to the
Payee, and not to the payment of interest hereunder.  To the extent
permitted by applicable law, all sums paid or agreed to be paid for the use,
forbearance or detention of the indebtedness evidenced by this Note shall be
amortized, prorated, allocated and spread throughout the full term of such
indebtedness until payment in full, to the end that the rate or amount of
interest on account of such indebtedness does not exceed any applicable usury
ceiling.  As used herein, the term “applicable law” shall mean the law
in effect as of the date hereof, provided, however, that in the event there is a
change in the law which results in a higher permissible rate of interest, then
this Note shall be governed by such new law as of its effective
date.  This provision shall control every other provision of all
agreements between the Maker and the Payee.

         

        9.           Collection
Costs.  In
the event that the Payee shall place this Note in the hands of an attorney for
collection during the continuance of any Event of Default, the Maker shall
further be liable to the Payee for all costs and expenses (including reasonable
attorneys’ fees) which may be incurred by the Payee in enforcing this Note, all
of which costs and expenses shall be obligations under and part of this Note;
and the Payee may take judgment for all such amounts in addition to all other
sums due hereunder.

         

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        IN
WITNESS WHEREOF, the Maker has executed this Note on the date first above written.

         

        
          
            	 	 	 	GENERAL
      ENVIRONMENTAL MANAGEMENT, INC.	 
	 	 	 	 	 
	
                     

                  	 	 	
                    /s/
      Timothy Koziol

                  	 
	
                     

                  	 	 	
                    Timothy
      Koziol

                    Chief Executive Officer

                  	 

          

        

         

         

        4CC Filed by Filing Services Canada Inc. 403-717-3898

Effective as from June 20, 2008

between

Medina Group Limited

as Assignor

and

Sentry Petroleum (Australia) Pty. Ltd.

as Assignee

_________________________________

ASSIGNMENT AGREEMENT

__________________________________

Assignment Agreement

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ASSIGNMENT AGREEMENT

THIS ASSIGNMENT AGREEMENT made effective as of the 20th day of June, 2008 is between:

·

Medina Group Limited, a company duly incorporated in Hong Kong with address for delivery and notice located at 738 Burke Road, Suite 112 Camberwell  VIC  3124 (the "Assignor"); and 

·

Sentry Petroleum (Australia) Pty. Ltd., a company duly incorporated in Australia, with address for notice and delivery located at 38 Milson Street, South Perth  WA  6151 Australia (the “Assignee”)

RECITALS

A.

WHEREAS the Assignor is the legal and beneficial holder of the rights and obligations under the Authorities to Prospect #862, #864, and # 866 (“The ATPs”), a copy of which Authorities to Prospect are attached hereto as Exhibit I, Exhibit II, and Exhibit III, respectively.

B.

WHEREAS the Assignee is interested in purchasing from the Assignor all of the Assignor’s respective rights and obligations under The ATPs, and the Assignor is interested in selling such rights and obligations to the Assignee.

OPERATIVE PROVISIONS

NOW THEREFORE THIS AGREEMENT WITNESSES THAT the parties hereto agree as follows: 

Section 1.

Interpretation. 

1.1

In this Agreement, except as otherwise expressly provided or as the context otherwise requires:

 “Effective Date” means the date first above written;

“Expenditures” means all direct or indirect costs and expenses incurred by the Assignee in respect of prospecting and exploring the Property after the Effective Date of this Agreement. The certificate of the Controller or other financial officer of the Assignee, together with a statement of Expenditures in reasonable detail, shall be prima facie evidence of such Expenditures;

 

1.2

For the purposes of this Assignment Agreement, except as otherwise expressly provided or unless the context otherwise requires:

(i)

the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Assignment Agreement as a whole and not to any particular part, section or other subdivision of this Assignment Agreement;

Assignment Agreement

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(ii)

the headings are for convenience only and do not form a part of this Assignment Agreement nor are they intended to interpret, define or limit the scope or extent of this or any provision of this Assignment Agreement;

(iii)

any reference to an entity will include and will be deemed to be a reference to any entity that is a permitted successor to such entity;

(iv)

words in the singular include the plural and words in the masculine gender include the feminine and neuter genders, and vice versa;

(v)

references to currency are references to United States dollars; and

(vi)

the time permitted to perform any obligation, requirement or thing to be done “by” a certain date, includes that date.

Section 2. 

Representations and Warranties: 

2.1

Each Party represents and warrants to the other Parties hereto that:

(a)

it is a company duly incorporated, organized and validly subsisting under the laws of its incorporating jurisdiction;

(b)

it has full power and authority to carry on its business and to enter into this Assignment Agreement and any agreement or instrument referred to or contemplated by this assignment Agreement;

(c)

neither the execution and delivery of this Assignment Agreement nor any of the agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated conflict with, result in the breach of or accelerate the performance required by, any agreement to which it is a Party; and 

(d)

the execution and delivery of this Assignment Agreement and the agreements contemplated hereby will not violate or result in the breach of the laws of any jurisdiction applicable or pertaining thereto or of its constating documents. 

2.2

The Assignor represents and warrants to the Assignee that:

(a)

the Assignor is the holder of all rights granted to it under The ATPs, and has not assigned, encumbered nor agreed to assign or encumber any of these rights other than to the Assignee under this Assignment Agreement;

(b)

the Assignor undertakes to give all notices and receive all consents necessary to effect the transfer of the Assigned Interest to the Assignee within 30 (thirty) days as from the Effective Date;

(c)

the Property is free and clear of all liens and encumbrances, and is in good standing under the laws of Australia.

(d)

the assignor warrants the title and agrees to defend it against all parties claiming an adverse interest to that of the Assignee.

(e)

all of the petroleum claims comprising the Property have been located in accordance with the laws of Australia, and in accordance with local customs, rules and regulations; and

(f)

there is no litigation, proceeding or investigation pending or threatened against the Assignor with respect to the Property, nor does the Assignor know, or have 

Assignment Agreement

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any grounds to know after due enquiry, of any basis for any litigation, proceeding or investigation which would affect the Property.

2.3 

The representations, warranties and covenants herein­before set out are conditions on which the Parties have relied in entering into this Assignment Agreement and will survive the acquisition of the Assigned Interest.

Section 3. 

Assignment: 

3.1

The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby acquires from the Assignor, for the Consideration set forth in Section 3 hereof, effective as of the Effective Date of this Assignment Agreement, all of the Assignor’s respective rights and obligations under The ATPs (the “Assigned Interest”). 

3.3 

Notwithstanding the paragraph before, from and after the Effective Date of this Assignment Agreement and for purposes hereof, the Assignee shall be considered the owner of all rights and obligations arising from the Agreement, the terms and conditions of The ATPs and in accordance with all governing laws of Queensland Australia and all applicable Federal laws and regulations. This agreement and all rights and obligations hereunder are subject to the formal approval of the assignment by the Environmental Protection Agency and the Department of Mines and Energy. Should the assignment not be granted in whole or in part this agreement shall become null and void.

Section 4.

Consideration. 

4.1

As consideration for the Assigned Interest received hereof, the Assignee commits to the following obligations to be fulfilled (the “Consideration”): 

(a)

within five business days of the Effective Date, pay $22,500 to the order and the direction of the Assignor or its appointed nominees as partial consideration for certain previous expenditures on the Property by the Assignor; 

(b)

Assume the Work programme as follows:

ATP862 Work Program and Indicative Expenditure

			
	Year

	Proposed Work Program

	Indicative Expenditure

($A)

	Year 1

	·

G, G & E studies 

·

200 Deep upholes 

	100,000

300,000

	Year 2

	·

Reprocess 2D seismic

·

G, G & E studies

	400,000

100,000

	Year 3

	·

Acquire and process 200km 2D Seismic 

·

G,G & E studies

	2,000,000

       100,000

	Year 4

	·

G,G & E studies 

·

1 conventional exploration well 

	100,000

2,750,000

	Total

	 
	5,850,000

Assignment Agreement

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ATP864 Work Program and Indicative Expenditure

			
	Year

	Proposed Work Program

	Indicative Expenditure

($A)

	Year 1

	·

G, G & E studies 

·

200 Deep upholes 

	100,000

300,000

	Year 2

	·

Reprocess 2D seismic

·

G, G & E studies

	135,000

100,000

	Year 3

	·

Acquire and process 200km 2D Seismic 

·

G,G & E studies

	2,000,000

       100,000

	Year 4

	·

G,G & E studies 

·

1 conventional exploration well 

	100,000

2,750,000

	Total

	 
	5,585,000

ATP866 Work Program and Indicative Expenditure

			
	Year

	Proposed Work Program

	Indicative Expenditure

($A)

	Year 1

	·

G, G & E studies 

·

Reprocess 2D seismic 

	100,000

140,000

	Year 2

	·

G, G & E studies

	100,000

	Year 3

	·

Acquire and process 100km 2D Seismic 

·

G,G & E studies

	1,000,000

       100,000

	Year 4

	·

G,G & E studies 

·

1 conventional exploration well 

	100,000

3,500,000

	Total

	 
	5,040,000

(c) 

Pay Assignee a Gross Overriding Royalty of 7.0%. The parties also hereto agree to increase the Gross Overriding Royalty on ATP 865 from 0.5% to 7.0%. 

Section 5.

Confidential Information

5.1

No information furnished by the Assignee to the Assignor hereunder in respect of the activities carried out on the Property by the Assignee, will be published by the Assignor without the written consent of the Assignee, but such consent in respect of the reporting of factual data will not be unreasonably withheld, and will not be withheld in respect of information required to be publicly disclosed pursuant to applicable securities or corporate laws. This provision shall terminate two years after the termination of this Assignment Agreement.

Section 6.

Notices. 

6.1

All notices and other communications in connection with this Assignment Agreement must be in writing and given by (i) hand delivery (ii) through a major international courier service, or (iii) facsimile transmissions, in each case addressed as specified below or in any subsequent notice from the intended recipient to the party sending the notice. Such 

Assignment Agreement

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notices and communications will be effective upon delivery if delivered by hand, upon receipt if sent by international courier service, or upon receipt if sent by facsimile transmission. Notices shall be addressed as follows:

Name: Medina Group Limited, 

Address: 738 Burke Road, Suite 112, Camberwell,  VIC  3124 

Name: Sentry Petroleum (Australia) Pty Ltd, 

Address: 38 Milson Street, South Perth,  WA  6151, Australia 

Phone: 61-8-9474 1092 

Attention: Raj Rajeswaran, Director

Section 7.

Governing Law. 

7.1

THIS ASSIGNMENT AGREEMENT AND ANY DISPUTE ARISING HEREUNDER WILL BE GOVERNED BY THE LAWS OF QUEENSLAND, AUSTRALIA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PROVISIONS THEREOF. 

7.2

EACH OF THE ASSIGNEE AND THE ASSIGNOR HEREBY IRREVOCABLE SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF QUEENSLAND AUSTRALIA, IN RESPECT OF ANY ACTION OR PROCEEDING BROUGHT AGAINST IT BY THE ASSIGNOR OR THE ASSIGNEE, RESPECTIVELY, ARISING UNDER THIS ASSIGNMENT AGREEMENT. 

Section 8.

Entire Agreement. 

8.1

This Assignment Agreement represents the final agreement between the parties with respect to the subject matter hereof and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.

Assignment Agreement

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Section 9.

Execution in Counterparts. 

9.1

This Assignment Agreement is executed in counterparts and by the parties hereto in separate counterparts, each of which when so executed will be deemed to be an original and both of which when taken together will constitute one and the same agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement to be executed  as of the date first above written.

	
	Median Group Limited 

	By: 

	On Behalf of Medina Group Limited

	Title:

	

Sentry Petroleum Australia Pty Ltd

	

	 

	By:______________________

	Name: Raj Rajeswaran

	Title:  President Director

	 

Assignment Agreement

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Exhibit I

Authority to Prospect No862 pursuant to Petroleum and Gas (Production and Safety) Act 2004, Section 41(1) – Awarded to Median Group Limited by Department of Mines and Energy, Queensland Australia 

Assignment Agreement

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Exhibit II

Authority to Prospect No864 pursuant to Petroleum and Gas (Production and Safety) Act 2004, Section 41(1) – Awarded to Median Group Limited by Department of Mines and Energy, Queensland Australia 

Assignment Agreement

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Exhibit III

Authority to Prospect No866 pursuant to Petroleum and Gas (Production and Safety) Act 2004, Section 41(1) – Awarded to Median Group Limited by Department of Mines and Energy, Queensland Australia 

Assignment Agreement

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