Document:

ex10-40.htm

     

    
      

      

    

    Exhibit 10.40

     

     

    
      AMENDED
AND RESTATED

      REVOLVING CREDIT
NOTE

      
      

       

      
        	$1,700,000	
                September 4,
      2009

              

      

       

      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 DEMAND (or, in the
absence of demand, 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 One Million Seven Hundred
Thousand ($1,700,000) Dollars or, if less, the aggregate then-outstanding
principal amount of all Advances made by the Payee to the Maker pursuant to that
certain Amended and Restated 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 the rate of ten (10%) percent per annum; provided, however, that during
the continuance of any Event of Default under the Loan Agreement, the interest
rate otherwise applicable hereunder shall be increased to fifteen (15%) percent
per annum.  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 on demand or, in the absence of demand, monthly in arrears on
the first day of each calendar month commencing November 1, 2009, and upon
maturity or acceleration hereof.

       

      The Maker
shall have the right, at any time and from time to time, without preimum 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 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 hereby 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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      This Note
is the Revolving Credit Note 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 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
thereunder 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 any and all other
instruments evidencing and/or securing the indebtedness under this Note, or as
may be provided under the law.

       

      In the
event that any holder of this Note shall, during the continuance of any Event of
Default, exercise or endeavor to exercise any of its remedies hereunder or under
the Loan Agreement or any of the Security Documents, the Maker shall pay all
costs and expenses incurred in connection therewith, including, without
limitation, reasonable attorneys’ fees, all of which costs and expenses shall be
obligations under and part of this Note; and the holder hereof may take judgment
for all such amounts in addition to all other sums due hereunder.

       

      No
consent or waiver by the holder hereof with respect to any action or failure to
act which, without such consent or waiver, would constitute a breach of any
provision of this Note shall be valid and binding unless in writing and signed
by the Maker and by the holder hereof.

       

      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 any
of the Security Documents or the Loan Agreement, 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.

       

      
        
           

        

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

       

      The Maker
hereby consents to the jurisdiction of all courts of the State of New York and
the United States District Court for the Southern District of New York, as well
as to the jurisdiction of all courts from which an appeal may be taken from such
courts, for the purpose of any suit, action or other proceeding arising out of
or with respect to this Note.  The Maker hereby waives the right to
interpose any counterclaims (other than compulsory counterclaims) in any action
brought by the Payee hereunder, provided that this waiver shall not preclude the
Maker from pursuing any such claims by means of separate
proceedings.  THE MAKER HEREBY EXPRESSLY WAIVES ANY AND ALL OBJECTIONS
WHICH IT MAY HAVE AS TO VENUE IN ANY OF SUCH COURTS, AND ALSO WAIVES ALL RIGHTS
TO TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING.  The Payee
may file a copy of this Note as evidence of the foregoing waiver of right to
jury trial.

       

      This
Note, together with the other Notes of even date herewith being issued pursuant
to the Loan Agreement, amends, restates and supersedes in its entirety the
Revolving Credit Note dated August 31, 2008 in the maximum principal amount of
$7,000,000 issued by the Maker to CVC, provided that this Note does not effect a
novation of the outstanding obligations under such prior Revolving Credit Note
(all of which obligations continue and shall henceforth be evidenced by this
Note).

       

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      IN WITNESS WHEREOF, the Maker
has caused this Note to be executed by its duly authorized officer as of the
date first set forth above.

       

      
        
          
            
              
                	 	 	 	GENERAL
      ENVIRONMENTAL MANAGEMENT, INC.	 
	 	 	 	 	 
	
                         

                      	 	By:	
                        /s/
      

                      	 
	
                         

                      	 	 	
                              
                          Name:

                          Title:

                        

                      	 

              

            

          

        

      

       

       

       

      4ex10-41.htm

    
      

      

    

    Exhibit 10.41

     

    
    

     

    
      	$5,600,000	
              September 4,
      2009

            

    

     

    
       

      TERM
NOTE

       

      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, the “Payee”), the sum of Five
Million Six Hundred Thousand ($5,600,000) Dollars (the “Principal”), with interest
thereon, on the terms and conditions set forth herein.

       

      Payments
of principal of, interest on and any other amounts with respect to this Purchase
Money 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 eight
(8%) percent per annum; provided, however, that during
the continuance of any Event of Default (as such term is hereinafter defined),
the interest rate hereunder shall be thirteen (13%) 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.

       

      (b) Payments.  On
the first day of each calendar month commencing October 1, 2009 through and
including August 1, 2009, accrued Interest on the outstanding Principal shall be
due and payable.  Thereafter, Principal and Interest under this Note
shall be payable in thirty-six (36) consecutive equal monthly installments of
Principal and Interest of $174,321.50 each, with the first installment due and
payable on September 1, 2010, and with subsequent installments due and payable
on the first day of each calendar month thereafter through and including August
1, 2013.  To the extent that Principal hereunder shall at any time
bear interest at the default rate provided in paragraph 1(a) above, then,
simultaneously with the next scheduled payment of Principal and Interest, or
upon acceleration of this Note, there shall be due and payable the additional
accrued Interest arising by reason of the increase in the applicable interest
rate hereunder.

       

      (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.  As used in this Note, the term “business day” shall
mean any day that is not a Saturday, Sunday or legal holiday in the State of
California.

       

      2.            
Prepayment.

       

      (a) Optional Prepayment of
Principal.  All
or any portion of the unpaid Principal balance of this Note, together with all
accrued and unpaid Interest on the Principal amount being prepaid, 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 five (5) business days’ prior written notice
to the Payee.

       

      
        
           

        

        
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      (b) Mandatory Prepayments of
Principal.  The
entire Principal balance of this Note, and all accrued and unpaid Interest
hereunder, (i) shall be required to be prepaid upon the consummation of any Sale
(as such term is defined in the Loan Agreement described in paragraph 3 below),
and (ii) may be required to be prepaid during the existence of any Event of
Default.  In addition, in the event and to the extent that, and at
such time as, any prepayments shall be made on that certain Purchase Money Note
dated August 17, 2009 in the principal amount of $5,600,000 issued by MTS
Acquisition Company, Inc. to General Environmental Management, Inc., a Delaware
corporation (the “Purchase
Money Note”), then a corresponding prepayment in an equal amount shall
then be required under this Note, and such prepayment shall be applied to the
obligations under this Note in a manner consistent with the application of the
prepayment to the obligations under the Purchase Money Note.

       

      (c) Application of
Payments.  Except
as otherwise provided in paragraph 1(b) above, any and all prepayments hereunder
shall be applied first to unpaid accrued Interest on the Principal amount being
prepaid and then to Principal, and the remaining installments hereunder shall be
recalculated so as to provide for equal monthly payments of Principal and
Interest on the scheduled payment dates through the reminder of the stated
payment term pursuant to paragraph 1(b) above.

       

      3.            
Loan
Documents.  This
Note is the Term Note issued pursuant to the terms of the Amended and Restated
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”), 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 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.           
 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 (a) the
Maker may not assign any of its rights or obligations hereunder without the
prior written consent of the Payee, and (b) in the event of any assignment of
this Note by the Payee, the Payee shall give written notice of such assignment
to the Maker.  This Note is not a bearer instrument, and shall only be
payable to its registered holder, and the Maker hereby appoints the Payee as the
Maker’s agent to maintain the register in which the registered holders of this
Note shall be recorded.

       

      
        
           

        

        
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      5.            
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.

       

      6.            
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, to the extent not prohibited by applicable law, 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, to the extent not prohibited by applicable law, 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.

       

      7.            
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.

       

      
        
           

        

        
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      8.            
Consent to Jurisdiction;
Waiver of Jury Trial.  The
Maker hereby consents to the non-exclusive jurisdiction of all courts of the
State of New York and the United States District Court for the Southern District
of New York, as well as to the jurisdiction of all courts from which an appeal
may be taken from such courts, for the purpose of any suit, action or other
proceeding arising out of or with respect to this Note, and waives any
objections to such jurisdiction and venue on grounds of forum non conveniens or other
such basis.  The Maker hereby waives the right to interpose any
counterclaims (other than compulsory counterclaims) in any action brought by the
Payee hereunder, provided that this waiver shall not preclude the Maker from
pursuing any such claims by means of separate proceedings.  THE MAKER
HEREBY EXPRESSLY WAIVES ANY AND ALL OBJECTIONS WHICH IT MAY HAVE AS TO VENUE IN
ANY OF SUCH COURTS, AND ALSO WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY SUCH
SUIT, ACTION OR PROCEEDING.  The Payee may file a copy of this Note as
evidence of the foregoing waiver of right to jury trial.

       

      9.            
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 this Note, 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.

       

      10.          
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 reasonable out-of-pocket 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.

       

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

       

      
        
          
            	 	 	 	
                    GENERAL
      ENVIRONMENTAL MANAGEMENT, INC.,

                    a
      Nevada corporation

                  	 
	 	 	 	 	 
	
                     

                  	 	By:	
                    /s/
      

                  	 
	
                     

                  	 	 	
                    Name 

                  	 
	
                     

                  	 	 	
                    Title

                  	 

          

        

      

       

       

       

      4

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