Exhibit 10.5

Schedule 1.1

Commitments

 

 

 

 

 

 

 

 

LENDER

 

REVOLVING LOAN
COMMITMENT

 

TERM LOAN
COMMITMENT

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

FIFTH THIRD BANK

 

$

40,000,000

 

$

8,800,000

 

38 Fountain Square Plaza

 

 

 

 

 

 

 

MD#10AT63

 

 

 

 

 

 

 

Cincinnati, Ohio 45263

 

 

 

 

 

 

 

Attn: David G. Fuller and Anne B. Kelly, Vice President

 

 

 

 

 

 

 

Fax Number: (513) 534-8400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AGGREGATE COMMITMENTS

 

$

40,000,000

 

 

8,800,000

 

--------------------------------------------------------------------------------

Schedule 1.2

Borrower’s Facilities

 

 

 

Property

 

Owner

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

3409 Camp Ground Road

 

ISA

Louisville, Kentucky 40211

 

 

 

 

 

7110 Grade Lane

 

ISA Real Estate

Louisville, Kentucky 40213

 

 

 

 

 

6709 Grade Lane

 

ISA Real Estate

Louisville, Kentucky 40213

 

 

 

 

 

1617 State Road 111

 

ISA Real Estate

New Albany, Indiana 47150

 

 

 

 

 

7023, 7025, 7101, and 7103 Grade Lane

 

7021 Grade

Louisville, Kentucky 40213

 

 

 

 

 

7124 Grade Lane

 

7124 Grade

Louisville, Kentucky 40213

 

 

 

 

 

7200 and 7210 Grade Lane

 

7200 Grade

Louisville, Kentucky 40219

 

 

 

 

 

1565 E. 4th Street

 

IN Real Estate

Seymour, Indiana 47274

 

 

 

 

 

1400 Cahill Drive

 

C & R Asphalt Land Acquisition Company

Lexington, Kentucky 40504

 

LLC

 

 

 

7100 Grade Lane

 

7100 Grade Lane LLC

Louisville, Kentucky 40213

 

 

 

 

 

7020 Grade Lane

 

7200 Grade

Louisville, Kentucky 40213

 

 

--------------------------------------------------------------------------------

Schedule 5.1(a)

Jurisdictions Where Qualified to do Business

 

 

 

Borrower Name

 

Qualified States

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

ISA

 

Florida

 

 

Indiana

 

 

Kentucky

 

 

 

ISA Indiana

 

Indiana

--------------------------------------------------------------------------------

Schedule 5.1(b)

Ownership of Capital Stock of Borrower

 

 

 

 

 

 

 

Issuer

 

Certificate Number

 

Number of Shares

 

Owner

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

ISA Indiana

 

1

 

1000 shares

 

ISA

--------------------------------------------------------------------------------

Schedule 5.1(c)

Ownership of Capital Stock of Subsidiaries

 

 

 

 

 

 

 

Issuer

 

Certificate Number

 

Number of Shares

 

Owner

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

7021 Grade

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

7124 Grade

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

7200 Grade

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

IN Real Estate

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

CWS

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

ISA Real Estate

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

Logistics

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

Recycling

 

N/A

 

100% Interest

 

ISA

 

 

 

 

 

 

 

Waste Equipment

 

N/A

 

100% Interest

 

ISA

--------------------------------------------------------------------------------

Schedule 5.1(d)

Non-Subsidiary Investments

None.

--------------------------------------------------------------------------------

Schedule 5.1(e)

Officers, Directors, General Partners, Members

 

 

 

Borrower Name

 

Officers

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

ISA

 

Harry Kletter, Chairman and CEO

 

 

 

 

 

Brian Donaghy, President and COO

 

 

 

 

 

Ron Kletter, Executive Vice President

 

 

 

 

 

Alan Schroering, CFO

 

 

 

 

 

Don Rodgers, CAO

 

 

 

 

 

James Wiseman, III, Vice President

 

 

 

 

 

Steve Jones, Vice President

 

 

 

ISA Indiana

 

Harry Kletter, Chairman and CEO

 

 

 

 

 

Brian Donaghy, President and COO

 

 

 

 

 

Ron Kletter, Executive Vice President

 

 

 

 

 

Alan Schroering, CFO

 

 

 

 

 

Don Rodgers, CAO

 

 

 

 

 

James Wiseman, III, Vice President

 

 

 

 

 

Steve Jones, Vice President

--------------------------------------------------------------------------------

Schedule 5.2

Consents

None.

--------------------------------------------------------------------------------

Schedule 5.7

Material Leases

 

 

1.

Lease Agreement dated as of February 15, 2005, by and between C & R Asphalt Land
Acquisition Company LLC and ISA.

 

 

2.

Lease Agreement dated as of January 1, 1998, by and between K &R, LLC, successor
to K&R Corporation and ISA.

 

 

3.

Lease dated as of March 2, 2006, by and between Southern States Cooperative,
Inc. and ISA Real Estate LLC.

--------------------------------------------------------------------------------

Schedule 5.8

Patents, Copyrights and Trademarks

None.

--------------------------------------------------------------------------------

Schedule 5.10

Pending or Threatened Litigation

All American Recycling, Inc. and R. D. Burton and Donna Burton v. Industrial
Services of American, Inc., et al, Jefferson Circuit Court, Case No. 06-C-04701.

--------------------------------------------------------------------------------

Schedule 5.11

Material Agreements

 

 

1.

Material Leases (See Schedule 5.7).

 

 

2.

Loan Agreement dated as of June 30, 2009, by and among BB&T, ISA, ISA Real
Estate, IN Real Estate and 7021 Grade and the Loan Documents, as that term is
defined therein.

 

 

3.

Loan Agreement dated as of May 7, 2008, by and between BB&T and ISA and the Loan
Documents, as that term is defined therein.

 

 

4.

Loan Agreement dated as of May 7, 2008, by and between BB&T and ISA and the Loan
Documents, as that term is defined therein.

 

 

5.

Consulting Agreement dated as of January 2, 1998, by and between K & R
Corporation and ISA.

 

 

6.

Employment Agreement dated as of April 7, 2007, by and between ISA and James K.
Wiseman III.

 

 

7.

Executive Employment Agreement dated as of June 1, 2009, by and between ISA and
Jeffrey Valentine.

 

 

8.

Executive Employment Agreement dated as of June 1, 2009, by and between ISA and
Steve Jones.

 

 

9.

Amended Executive Employment Agreement dated as of April 15, 2009, by and
between ISA and Brian Donaghy.

 

 

10.

Sub-Lease dated as of February 28, 2007, by and between ISA and Cohen Brothers
of Lexington, Inc.

 

 

11.

Various Purchase Orders for the acquisition by Borrowers of Inventory.

 

 

12.

Various Purchase Orders for the acquisition by account debtors of Finished
Goods.

 

 

13.

ISDA Master Agreement dated as of December 22, 2006, by and between BB&T and ISA
along with accompanying Schedule to the Master Agreement.

 

 

14.

Documents and instruments governing all Permitted Factoring Transactions.

--------------------------------------------------------------------------------

Schedule 5.12

Tax Matters

None.

--------------------------------------------------------------------------------

Schedule 5.13

Affiliate Contracts

 

 

1.

Oral Lease of property located at 7110 Grade, 6709 Grade Lane, Louisville,
Kentucky and 1617 State Road 111, New Albany, Indiana from ISA Real Estate to
ISA.

 

 

2.

Oral lease of property located at 7124 Grade Lane, Louisville, Kentucky from
7124 Grade to ISA.

 

 

3.

Oral lease of property located at 7200 and 7210 Grade Lane, Louisville, Kentucky
from 7200 Grade to ISA.

 

 

4.

Oral lease of property located at 1565 E. 4th Street, Seymour, Indiana from IN
Real Estate to ISA.

 

 

5.

Oral lease of property located at 7023, 7025, 7101 and 7103 Grade Lane,
Louisville, Kentucky from 7021 Grade to ISA.

 

 

6.

Lease Agreement covering property located at 7100 Grade Lane, Louisville,
Kentucky from 7100 Grade Lane LLC to ISA.

 

 

7.

Oral lease of property located at 7020 Grade Lane, Louisville, Kentucky from
7200 Grade to ISA.

--------------------------------------------------------------------------------

Schedule 5.14

Employee Benefit Plans

 

 

•

Three (3) health insurance plans from Humana, through which employees can choose
from a traditional insurance plan with a $500.00 deductible, a PCA insurance
plan with a $3000.00 deductible, or a HSA insurance plan with a $3000.00
deductible

 

 

•

Dental Insurance from Delta Dental, having an annual deductible of $50.00 and an
annual maximum limit of $1000.00

 

 

•

Short-term, long-term and basic life insurance from Guardian Insurance provided
by ISA at no cost to employees; short -term disability pays 60% of an employee’s
wage with a $500.00 cap for illnesses not related to the workplace; long-term
disability pays 60% of employee wages after 13 weeks of short-term disability;
basic life insurance is one (1) times an employee’s annual base salary and is
payable to the beneficiary designated by the employee

 

 

•

Vision Insurance offered through Guardian Insurance, which pays $135.00 towards
glasses or contacts on an annual basis

 

 

•

Voluntary Life Insurance can be obtained through Guardian Insurance; employees
guaranteed $100,000.00 of coverage, spouses up to 50% of that, and children to a
maximum of $5,000.00

 

 

•

Flexible Spending Account (FSA) allows employees to deposit pre-tax money to an
account administrated by ADP with the FSA paying any medical, dental, or vision
expenses that were not covered by insurance

 

 

•

Dependent Care Account allows employees to have money intended for child-care
expenses deducted pre-tax; dependent account is administrated by ADP

 

 

•

401K is offered from Principal; employees can deduct up to 15% of their pre-tax
wages with ISA matching 25% to the first 6%; ISA matches an additional of 12.5%
for participants contributing between 7 and 10%

 

 

•

Tuition Reimbursement allows employees a $5000.00 allowance in the pursuit of
educational endeavors; courses must be related to positions offered by ISA;
reimbursement is based on grade achievement

--------------------------------------------------------------------------------

Schedule 5.17

Certain Disclosures

None.

--------------------------------------------------------------------------------

Schedule 5.19

Environmental Matters

None.

--------------------------------------------------------------------------------

Schedule 5.21

Filing Offices

 

 

 

Credit Party

 

Filing Office

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

ISA

 

Florida

 

 

 

ISA Indiana

 

Indiana

 

 

 

7021 Grade

 

Kentucky

 

 

 

7124 Grade

 

Kentucky

 

 

 

7200 Grade

 

Kentucky

 

 

 

CWS

 

Kentucky

 

 

 

IN Real Estate

 

Kentucky

 

 

 

ISA Real Estate

 

Kentucky

 

 

 

Logistics

 

Kentucky

 

 

 

Recycling

 

Kentucky

 

 

 

Waste Equipment

 

Kentucky

--------------------------------------------------------------------------------

Schedule 5.22

Owned Real Property

 

 

 

Property

 

Owner

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

3409 Camp Ground Road

 

ISA

Louisville, Kentucky 40211

 

 

 

 

 

7110 Grade Lane

 

ISA Real Estate

Louisville, Kentucky 40213

 

 

 

 

 

6709 Grade Lane

 

ISA Real Estate

Louisville, Kentucky 40213

 

 

 

 

 

1617 State Road 111

 

ISA Real Estate

New Albany, Indiana 47150

 

 

 

 

 

7023, 7025, 7101, and 7103 Grade Lane

 

7021 Grade

Louisville, Kentucky 40213

 

 

 

 

 

7124 Grade Lane

 

7124 Grade

Louisville, Kentucky 40213

 

 

 

 

 

7200 and 7210 Grade Lane

 

7200 Grade

Louisville, Kentucky 40219

 

 

 

 

 

1565 E. 4th Street

 

IN Real Estate

Seymour, Indiana 47274

 

 

--------------------------------------------------------------------------------

Schedule 5.23

Bank and Investment Accounts

 

 

 

 

 

Bank

 

Account Name

 

Account Number

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

BB&T

 

ISA

 

0005280498205

BB&T

 

ISA

 

0005183756062

BB&T

 

CWS

 

0005280059376

BB&T

 

ISA Recycling

 

0005280283683

BB&T

 

ISA Recycling

 

0005280461999

BB&T

 

ISA Indiana

 

0005182802494

BB&T

 

ISA

 

0005280498213

BB&T

 

ISA

 

0005183997833

BB&T

 

ISA

 

0005184614636

BB&T

 

ISA

 

0005184608210

BB&T

 

ISA

 

0005184608385

BB&T

 

ISA

 

8180000096064

BB&T

 

ISA

 

0005184608415

BB&T

 

CWS

 

0005184608202

 

 

 

 

 

Jackson County Bank

 

ISA Indiana

 

4145430

 

 

ISA Indiana

 

4145419

--------------------------------------------------------------------------------

Schedule 5.25

Non-Compete Agreements

Non-compete contained in that certain Sub-Lease dated as of February 28, 2007,
by and between ISA and Cohen Brothers of Lexington, Inc.

--------------------------------------------------------------------------------

Schedule 6.2(b)

Insurance Coverages

See Attached.

--------------------------------------------------------------------------------

Schedule 8.8(e)

Existing Liens

 

 

 

 

 

 

 

 

 

Debtor

 

Secured Party

 

Collateral

 

File Number

 

Filing Location

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

ISA

 

VFS US LLC

 

2006 Volvo L70E

 

200602820179

 

Florida Secretary of State

 

 

 

 

 

 

 

 

 

ISA

 

VFS US LLC

 

2006 Volvo MC80 Skid Steer

 

200604375059

 

Florida Secretary of State

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ISA

 

VFS US LLC

 

2007 Volvo MC80B

 

200706132015

 

Florida Secretary of State

 

 

 

 

 

 

 

 

 

ISA

 

Brandeis Machinery & Supply Company and Komatsu Financial

 

One Komatsu Excavator

 

2007223395114

 

Kentucky Secretary of State

 

 

 

 

 

 

 

 

 

ISA

 

Apollo Oil LLC

 

Equipment

 

2008236011508

 

Kentucky Secretary of State

--------------------------------------------------------------------------------

Schedule 8.11

Existing BB&T LOC

None.

--------------------------------------------------------------------------------