Promissory Note issued by CleanCore Solutions, Inc. to Burlington Capital, LLC on October 17, 2022

Contract Categories: Business Finance - Note Agreements
EX-10.3 8 fs12023ex10-3_cleancore.htm PROMISSORY NOTE ISSUED BY CLEANCORE SOLUTIONS, INC. TO BURLINGTON CAPITAL, LLC ON OCTOBER 17, 2022

Exhibit 10.3

 

Execution Version

 

PROMISSORY NOTE

 

Principal Amount Effective Date of Note: October 17, 2022
$3,000,000.00 Omaha, Nebraska

 

FOR VALUE RECEIVED, the undersigned CC Acquisition Corp., a Nevada corporation (“Maker”), hereby promises to pay to the order of Burlington Capital, LLC, a Delaware limited liability company (on behalf of CleanCore Solutions, LLC, TetraClean Systems, LLC and Food Safety Technology, L.L.C.) (“Payee”, which term includes any future holder hereof) the principal sum of Three Million and no/100 Dollars ($3,000,000.00 ) (the “Principal Amount”).

 

1. Interest and Payment. Interest on the Principal Amount shall accrue at the rate of 7.0% per annum (“Interest”) from the effective date. Payment of the Principal Amount, plus accrued interest shall be made on the earlier of (a) the closing of a firm commitment initial public offering and concurrent listing on a national securities exchange or (b) October 17, 2023.

 

2. Prepayment. Maker shall have the right to prepay the Principal Amount of this Promissory Note, together with any additional sums which may become due and owing pursuant to the terms and provisions of this Promissory Note.

 

3. Events of Default. Upon the occurrence of any one of the events of default (herein an “Event of Default”) described below, the payments of the Principal Amount and accrued interest shall, at the option of the Payee, be accelerated, and such remaining Principal Amount, interest and all other such sums shall immediately be due and payable without notice or demand.

 

The following shall constitute an Event of Default:

 

(a) Maker fails to pay the Principal Amount or accrued interest required hereunder when due; or

 

(b) Maker fails to perform or observe any material covenant, condition or agreement to be performed or observed by Maker hereunder; or

 

(c) Maker:

 

(i) Shall be adjudicated insolvent or a bankrupt, or ceases, is unable, or admits in writing the inability to pay debts as they mature, makes a general assignment for the benefit of, or enters into any composition or arrangement with its creditors; or

 

(ii) Applies for or consents to the appointment of a receiver, trustee or liquidator of a substantial part of the property of Maker, or authorizes such application or consent, or proceedings seeking such appointment shall be instituted against Maker without such authorization, consent or application and shall continue undismissed for a period of thirty (30) days; or

 

 

 

(iii) Authorizes or files a voluntary petition in bankruptcy or applies for or consents to the application of any bankruptcy, reorganization in bankruptcy, arrangement, readjustment of debt, insolvency, dissolution, moratorium or other similar proceeding, or authorizes such application or consent, or proceedings to such end shall be instituted against Maker without such authorization, application or consent, and such proceedings instituted against Maker shall continue undismissed for a period of thirty (30) days; or

 

Upon the occurrence of any such Event of Default, the Principal Amount shall thereafter bear interest at the rate of ten percent (10%) per annum.

 

Payee’s failure at any time to require strict performance by Maker of any provision of this Promissory Note shall not constitute a waiver or diminish Payee’s rights hereunder. No waiver by Payee of any breach or default shall constitute a waiver of any other breach or default by Maker or a waiver of any of Payee’s rights hereunder. None of the provisions of this Promissory Note shall be held to have been waived by any act or knowledge of Payee except by written instrument executed by Payee and delivered to Maker.

 

4. Waiver. Maker waives presentment for payment, protest, notice of protest, demand and all diligence in enforcing collection, and Maker hereby expressly agrees that Payee may, from time to time, defer or postpone payment of principal or interest, or may extend or renew the whole or any part thereof, and such deferment, postponement, renewal, extension shall not, in any manner, affect, alter or impair the obligation of any person now or hereafter becoming liable for the payment of this Promissory Note.

 

5. Costs and Fees. Maker agrees, to the extent permitted by law, to pay all reasonable costs incurred by Payee of collecting, or attempting to collect, this Promissory Note, whether by suit or otherwise, including a reasonable attorney’s fee.

 

6. Governing Law. This Promissory Note shall, in all respects, be governed by and construed in accordance with the laws of the State of Delaware, including all matters of construction, validity, and performance.

 

7. Usury. Notwithstanding any provision contained herein to the contrary, in no event shall interest accrue or be payable upon any sums due and owing hereunder or to become due and owing hereunder, in excess of the highest lawful rate allowable for the times such sums, or portions thereof, shall be outstanding and unpaid, and if, by reason of the acceleration of the maturity or the payment of interest in advance, the imposition of a delinquency charge, or if, for any other reason or reasons, interest in excess of such highest lawful rate for such period of time has been paid, then the amount due Payee on account of such sums shall be reduced by such excess, except that, if such sums are less than such excess, then, at the option of Payee, Payee shall either refund such excess to Maker, or shall reduce such sums due to zero and refund to Maker the remainder of such excess.

 

8. Notice. Any notices required or permitted to be given to the Maker of this Promissory Note shall be deemed given when hand-delivered, transmitted via facsimile transmission, or deposited in the United States mails, postage prepaid.

 

[Remainder of Page Blank; Signature Page Follows]

 

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IN WITNESS WHEREOF, the undersigned Maker, has executed this Promissory Note on the date shown below, and caused this Promissory Note to be effective on the day and year first written above.

 

Dated effective as of the 17th day of October, 2022.

 

  CC Acquisition Corp.
     
  By: /s/ Matthew Atkinson
  Name:  Matthew Atkinson
  Title: CEO

 

 

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