Document:

fision_ex101.htm

EXHIBIT 10.1
 
FISION CORPORATION
2016 EQUITY INCENTIVE PLAN
 
Article 1 – Purpose
 
1.1 General. The purpose of the Fision Corporation 2016 Equity Incentive Plan (the "Plan") is to promote the success and enhance the value of Fision Corporation, a Delaware corporation (the "Company") by linking the personal interests of members of the Board, Employees and Consultants of the Company or a Subsidiary participating in the Plan to the interests of the stockholders of the Company, and by providing such individuals with an incentive for performance to generate positive returns to Company stockholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of members of the Board, Employees and Consultants participating in the Plan upon whose judgment, interests and best efforts the successful conduct of the Company's operations and financial results is substantially dependent.
 
Article 2 – Definitions
 
2.1 Definitions. The following words and phrases shall be construed to have the following meanings:
 
(a) "Administrator" means the Board or a Committee of the Board if established by the Board to administer the Plan.
 
(b) "Award" means any one or a combination of a Stock Payment award, a Restricted Stock award, or a Stock Option granted to a Participant pursuant to the Plan.
 
(c) "Award Agreement" means any written agreement, contract, or other instrument or document entered into by the Company and a Participant and evidencing an Award pursuant to the Plan.
 
(d) "Board" means the Board of Directors of the Company.
 
(e) "Committee" means a committee of the Board if one is established to administer the Plan.
 
(f) "Consultant" means a consultant or advisor participating in the Plan if:
 
(i) the Consultant renders bona fide services to the Company or a Subsidiary; and
 
(ii) the services rendered by the Consultant are not in connection with the offer or sale of securities in a capital-raising transaction, and the services do not directly or indirectly promote or maintain a market for the Company's securities.
 
(g) "Employee" means any officer or other employee of the Company or a wholly-owned Subsidiary of the Company.
 
(h) "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time.
 
(i) "Fair Market Value" means, as of any date, the value of Stock determined as follows:
 
(i) If the Stock is listed on an established stock exchange or a national market system, its Fair Market Value shall be the closing sales price as quoted on such exchange or system for the last market trading day prior to the date of determination for which a closing sales price is reported by a source deemed reliable by the Administrator
 
	 
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(ii) if the Stock is quoted under a symbol in a recognized over-the-counter quotation system, its Fair Market Value shall be the last closing sales price for the Stock prior to the date of determination as reported by a source deemed reliable by the Administrator; or
 
(iii) in the absence of an established market for the Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator.
 
(j) "Non-Employee Director" means a member of the Board who is not an Employee.
 
(k) "Option" means a right granted to a Participant to purchase a specified number of shares of Stock at a specified price during specified time periods. Any Option issued under the Plan is a Non-Qualified Stock Option not intended to satisfy as an Incentive Stock Option under Section 422 of the Internal Revenue Code.
 
(l) "Participant" means any eligible individual who, as a member of the Board, an Employee or a Consultant, has been granted an Award pursuant to the Plan.
 
(m) "Plan" means this Fision Corporation 2016 Equity Incentive Plan, as it may be amended.
 
(n) "Restricted Stock" means Stock awarded to a Participant that is subject to certain restrictions set forth at the inception of the Award, which may include risks of forfeiture or repurchase by the Company.
 
(o) "Securities Act" means the Securities Act of 1933, as amended from time to time.
 
(p) "Stock" means the common stock of the Company.
 
(q) "Stock Payment" means a payment in the form of shares of Stock incident to any bonus, deferred compensation or other compensation arrangement, made in lieu of all or any portion of compensation to a Participant.
 
(r) "Subsidiary" means any corporation or other entity of which its outstanding voting stock or voting power is wholly owned by the Company.
 
Article 3 – Shares Subject to the Plan
 
3.1 Number of Shares. 
 
(a) The aggregate number of shares of Stock which may be issued pursuant to Awards under the Plan shall be 2,500,000 shares.
 
(b) To the extent that an Award terminates, expires or lapses for any reason, any shares of Stock subject to the Award shall again be available for the grant of an Award pursuant to the Plan. Further, any shares of Stock withheld incident to a cashless exercise of an Option shall become available for future grants under the Plan.
 
Article 4 – Eligibility and Participation
 
4.1 Eligibility. Persons eligible to participate in this Plan include all Employees, members of the Board and Consultants as determined by the Administrator.
 
	 
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4.2 Actual Participation. Subject to provisions of the Plan, from time to time the Administrator may select from the eligible individuals those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted an Award pursuant to the Plan.
 
Article 5 – Stock Options
 
5.1 General. The Administrator is authorized to grant Options to Participants on the following terms and conditions:
 
(a) Exercise Price. The exercise price per share of Stock subject to an Option shall be determined by the Administrator and set forth in the Award Agreement; provided that the exercise price per share for any Option shall not be less than 100% of the Fair Market Value per share on the date of the grant.
 
(b) Time and Conditions of Exercise. The Administrator shall determine the time or times at which an Option may be exercised in whole or in part, including any vesting provisions; provided that the term of any Option granted under the Plan shall not exceed ten years. The Administrator shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised.
 
(c) Payment. The Administrator shall determine the methods, terms and conditions by which the exercise price of an Option may be paid, and the form and manner of payment including, without limitation, payment in the form of cash, shares of Stock previously owned by the Participant or otherwise issuable upon exercise of the Option ("cashless exercise"), and the methods by which shares of Stock shall be delivered or deemed to be delivered to Participants. No Participant who is a member of the Board or executive officer of the Company shall be permitted to pay the exercise price of an Option with a loan from the Company or a loan arranged by the Company.
 
Prior to the issuance of shares of Stock incident to an exercise of the Option, a Participant shall have no rights as a stockholder relating to the Option shares.
 
(d) Evidence of Grant. All Options shall be evidenced by an Award Agreement between the Company and the Participant receiving the Award, which Award Agreement shall include provisions as may be specified by the Administrator.
 
(e) Transfer Restriction. An Option shall not be transferable by the Participant other than by will or the laws of descent or distribution.
 
(f) Right to Exercise. During the lifetime of a Participant, an Option may be exercised only by the Participant.
 
Article 6 - Stock Payment Awards
 
6.1 Grant of Stock Payment. The Administrator is authorized to make Stock Payment Awards to any Participant selected by the Administrator in such amounts as determined by the Administrator for payment of services or employee bonus or other compensation which has been earned or is to be earned. Such stock-based payment for services or employee compensation shall be valued at no less than 100% of the Fair Market Value of the awarded shares of Stock on the date of grant.
 
	 
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6.2 Award Agreement. Each Stock Payment Award shall be evidenced by a written Award Agreement in such form as the Administrator shall determine. Shares of Stock pursuant to a Stock Payment Award shall be issued and transferred to the Participant at the time of grant, or in installments as determined by the Administrator and set forth in the Award Agreement. Unless restricted by the terms of the Award Agreement or any applicable securities law or regulation, the shares of Stock shall be freely transferable and tradable upon issuance. Upon issuance of shares under a Stock Payment Award, the Participant with respect to such shares shall be and become a shareholder of the Company fully entitled to receive any declared dividends or other distributions to shareholders, to possess full voting rights relating to such shares, and to exercise all other rights of a shareholder of the Company. 
 
Article 7 – Restricted Stock
 
7.1 Grant of Restricted Stock. The Administrator is authorized to make Awards of Restricted Stock to any Participant selected by the Administrator in such amounts and subject to such terms and conditions as determined by the Administrator. All Awards of Restricted Stock shall be evidenced by an Award Agreement. The Administrator shall: (i) determine the purchase price, if any, to be paid by the Participant for such Restricted Stock, (ii) determine the length of any restriction period, and (iii) determine any service or performance restrictions during the restriction period. The Participant with respect to such shares shall possess full voting rights thereto and be entitled to receive any declared dividends or other distributions to shareholders. 
 
7.2 Restriction Period. No shares of Restricted Stock shall be sold, exchanged, transferred, pledged or otherwise disposed of by a Participant during the restriction period. When the restriction period expires for a portion or all shares of an award of Restricted Stock without a prior forfeiture thereof, unrestricted certificates for such shares shall be promptly delivered to the Participant. During the restriction period, shares of Restricted Stock shall be held in custody for the Participant by the Company.
 
7.3 Termination of Employment. If a Participant terminates employment with the Company for any reason before the expiration of the restriction period, all shares of Restricted Stock still subject to restriction shall be forfeited by the Participant and shall be reacquired by the Company. 
 
To the extent not otherwise provided in an Award for Restricted Stock, in the event of death, disability or other cases of special circumstances relating to the Participant, the Administrator may waive in whole or in part any or all remaining restrictions based on such factors and criteria deemed appropriate by the Administrator.
 
Article 8 – General
 
8.1 Effective Date. The Plan will become effective upon its approval by a resolution of the Board of Directors of the Company in accordance with the laws of the State of Delaware. 
 
8.2 Duration. The Plan shall remain in effect until all Awards granted under the Plan have either been satisfied by issuance of shares of Stock, have expired, or have been terminated under the terms of the Plan and all restrictions imposed on Restricted Stock have lapsed. No Awards may be granted under the Plan after the tenth anniversary from its effective date.
 
	 
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8.3 Adjustment. In the event of any merger, consolidation or reorganization of the Company, there shall be substituted for each of the shares of Stock then subject to the Plan, including shares subject to options or restrictions, the number and kind of shares of stock or other securities to which holders of common stock of the Company will be entitled pursuant to any such business combination or other transaction. In the event of any recapitalization, stock split, stock dividend, combination of shares or other such change in common stock of the Company, the number of shares of Stock then subject to the Plan, including any shares under Options or subject to restrictions, shall be adjusted in proportion to the change in outstanding common shares of the Company from such event. Incident to any of the foregoing adjustments, the purchase price and shares issuable of any Option under the Plan shall be adjusted as and to the extent appropriate to provide Participants with the same relative rights before and after such adjustment.
 
8.4 No Continued Employment or Other Rights. No Participant under the Plan shall have any right, because of an Award to the Participant, to continue in the employ of or under a consulting engagement with the Company for any period of time or any right to continue his or her present or any other rate of compensation. Nothing under this Plan shall be construed as giving an employee or consultant or any of their beneficiaries any equity or interests in the assets and business of the Company other than through the terms of an Award under the Plan, or creating a trust or fiduciary relationship of any kind between the Company and such Participant.
 
8.5 Acceleration. Notwithstanding any provision in the Plan: (1) the restrictions on all shares of Restricted Stock shall lapse immediately; and (2) all outstanding Options will become exercisable immediately, if during the existence of the Plan, any of the following events occur:
 
(i) any person or group of persons becomes the beneficial owner of 40% or more of any equity security of the Company entitled to vote for the election of directors of the Company; or
 
(ii) a majority of the members of the Board of Directors of the Company is replaced within a period of less than 24 months by directors not nominated and approved by the then existing Board of Directors; or 
 
(iii) the stockholders of the Company approve a merger or consolidation with or into another corporation or an agreement to sell or otherwise dispose of all or substantially all of the assets of the Company.
 
8.6 Amendment of Plan. The Board at any time and from time to time, may amend or terminate the Plan as may be necessary or desirable to implement or discontinue the Plan. No amendment, however, shall alter the group of persons eligible to participate in the Plan, shall extend any Option term beyond 10 years, or shall limit or restrict the powers of the Board with respect to administration of the Plan.
 
No amendment to or discontinuance of the Plan shall, without the written consent of the Participant, adversely affect any Award already granted to such Participant under the Plan; provided, however, the Board retains the right and power to annul any award if the Participant competes against the Company.
 
8.7 Binding Effect. The terms of the Plan shall be binding upon the Company and any successors and assigns.
 
	 
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8.8 Adoption Statement. The undersigned, being the principal executive officers and all of the members of the Board of Directors of the Company, state hereby that the foregoing Fision Corporation 2016 Equity Incentive Plan was adopted by the Board of Directors of the Company effective March 28, 2016. 
 
 
		/s/ Michael Brown	 

	 
	Michael Brown	 

	 
	CEO and Director of Fision Corporation	 

	 
	 
	 

	 
	/s/ Garry Lowenthal
	 

	 
	Garry Lowenthal 
	 

	 
	EVP/CFO and Director of Fision Corporation 
	 

 
 
-6-Exhibit 10.7

 

COMMERCIAL
SECURITY AGREEMENT

 

	Principal	Loan
    Date	Maturity	Loan
    No	Call
    / Coll	Account	Officer	Initials
	$1,750,000.00	06-04-2015	06-04-2016	133008	60	***	***	 
	References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.

  

	Grantor:	Cross
    Environmental Services, Inc.	Lender:	CENTENNIAL
    BANK
	 	PO
    Box 1299	 	Zephyrhills
	 	Crystal
    Springs, FL 33524	 	37741
    Eiland Boulevard
	 	 	 	Zephyrhills,
    FL 33542

 

 

  

THIS
COMMERCIAL SECURITY AGREEMENT dated June 4, 2015, is made and executed between Cross Environmental Services, Inc. (“Grantor”)
and CENTENNIAL BANK (“Lender”).

 

GRANT
OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender a security  interest in the Collateral to secure
the Indebtedness and agrees that Lender shall have the rights stated in this Agreement with respect to the Collateral, in
addition to all other rights which Lender may have by law.

 

COLLATERAL
DESCRIPTION. The word “Collateral” as used in this Agreement means the following described property, whether now
owned or hereafter acquired, whether now existing or hereafter arising, and wherever located, in which Grantor is giving to Lender
a security interest for the payment of the Indebtedness and performance of all other obligations under the Note and this Agreement:

 

Lien
on All chattels, accounts, equipment and inventory as evidenced in UCC #200807794684 recorded 03/05/2008

 

In
addition, the word “Collateral” also includes all the following, whether now owned or hereafter acquired, whether now
existing or hereafter arising, and wherever located:

 

(A)All
accessions, attachments, accessories, replacements of and additions to any of the collateral described herein, whether added now
or later.

 

(B)All
products and produce of any of the property described in this Collateral section.

 

(C)All
accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sale, lease, consignment
or other disposition of any of the property described in this Collateral section.

 

(D)All
proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described
in this Collateral section, and sums due from a third party who has damaged or destroyed the Collateral or from that party’s insurer,
whether due to judgment, settlement or other process.

 

(E)All
records and data relating to any of the property described in this Collateral section, whether in the form of a writing, photograph,
microfilm, microfiche, or electronic media, together with all of Grantor’s right, title, and interest in and to all computer software
required to utilize, create, maintain, and process any such records or data on electronic media.

 

CROSS-COLLATERALIZATION.
In addition to the Note, this Agreement secures all obligations, debts and liabilities, plus interest thereon, of Grantor
to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now
existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether
due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor
may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and
whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation
to repay such amounts may be or hereafter may become otherwise unenforceable.

 

FUTURE
ADVANCES. In addition to the Note, this Agreement secures all future advances made by Lender to Grantor regardless of whether
the advances are made a) pursuant to a commitment or b) for the same purposes.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Grantor’s accounts with
Lender (whether checking, savings, or some other account). This includes all accounts Grantor holds jointly with someone else
and all accounts Grantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantor authorizes Lender, to the extent permitted by applicable law, to charge or
setoff all sums owing on the Indebtedness against any and all such accounts, and, at Lender’s option, to administratively
freeze all such accounts to allow Lender to protect Lender’s charge and setoff rights provided in this paragraph.

 

     

     

    

 

COMMERCIAL
SECURITY AGREEMENT

	Loan
    No: 133008	(Continued)	Page
2

 

 

 

GRANTOR’S
REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With respect to the Collateral, Grantor represents and promises
to Lender that:

 

Perfection
of Security Interest. Grantor agrees to take whatever actions are requested by Lender to perfect and continue Lender’s security
interest in the Collateral. Upon request of Lender, Grantor will deliver to Lender any and all of the documents evidencing or
constituting the Collateral, and Grantor will note Lender’s interest upon any and all chattel paper and instruments if not delivered
to Lender for possession by Lender. This is a continuing Security Agreement and will continue in effect even though all or
any part of the Indebtedness is paid in full and even though for a period of time Grantor may not be indebted to Lender.

 

Notices
to Lender. Grantor will promptly notify Lender in writing at Lender’s address shown above (or such other addresses as Lender
may designate from time to time) prior to any (1) change in Grantor’s name; (2) change in Grantor’s assumed business name(s);
(3) change in the management of the Corporation Grantor; (4) change in the authorized signer(s); (5) change in Grantor’s principal
office address; (6) change in Grantor’s state of organization; (7) conversion of Grantor to a new or different type of business
entity; or (8) change in any other aspect of Grantor that directly or indirectly relates to any agreements between Grantor and
Lender. No change in Grantor’s name or state of organization will take effect until after Lender has received notice.

 

No
Violation. The execution and delivery of this Agreement will not violate any law or agreement governing Grantor or to which
Grantor is a party, and its certificate or articles of incorporation and bylaws do not prohibit any term or condition of this
Agreement.

 

Enforceability
of Collateral. To the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the
Uniform Commercial Code, the Collateral is enforceable in accordance with its terms, is genuine, and fully complies with all applicable
laws and regulations concerning form, content and manner of preparation and execution, and all persons appearing to be obligated
on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. There
shall be no setoffs or counterclaims against any of the Collateral, and no agreement shall have been made under which any deductions
or discounts may be claimed concerning the Collateral except those disclosed to Lender in writing.

 

Location
of the Collateral. Except in the ordinary course of Grantor’s business, Grantor agrees to keep the Collateral at Grantor’s
address shown above or at such other locations as are acceptable to Lender. Upon Lender’s request, Grantor will deliver to Lender
in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor’s operations, including
without limitation the following: (1) all real property Grantor owns or is purchasing; (2) all real property Grantor is renting
or leasing; (3) all storage facilities Grantor owns, rents, leases, or uses; and (4) all other properties where Collateral is
or may be located.

 

Removal
of the Collateral. Except in the ordinary course of Grantor’s business, Grantor shall not remove the Collateral from its existing
location without Lender’s prior written consent. Grantor shall, whenever requested, advise Lender of the exact location of the
Collateral.

 

Transactions
Involving Collateral. Except for inventory sold or accounts collected in the ordinary course of Grantor’s business, or as
otherwise provided for in this Agreement, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral.
Grantor shall not pledge, mortgage, encumber or otherwise permit the Collateral to be subject to any lien, security interest,
encumbrance, or charge, other than the security interest provided for in this Agreement, without the prior written consent of
Lender. This includes security interests even if junior in right to the security interests granted under this Agreement. Unless
waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender
and shall not be commingled with any other funds; provided however, this requirement shall not constitute consent by Lender to
any sale or other disposition. Upon receipt, Grantor shall immediately deliver any such proceeds to Lender.

 

Title.
Grantor represents and warrants to Lender that Grantor holds good and marketable title to the Collateral, free and clear of
all liens and encumbrances except for the lien of this Agreement. No financing statement covering any of the Collateral is on
file in any public office other than those which reflect the security interest created by this Agreement or to which Lender has
specifically consented. Grantor shall defend Lender’s rights in the Collateral against the claims and demands of all other
persons.

 

Repairs
and Maintenance. Grantor agrees to keep and maintain, and to cause others to keep and maintain, the Collateral in good order,

 

Payment
Default. Grantor fails to make any payment when due under the Indebtedness.

 

Other
Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement
or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Grantor.

 

Default
in Favor of Third Parties. Any guarantor or Grantor defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of any guarantor’s
or Grantor’s property or ability to perform their respective obligations under this Agreement or any of the Related Documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor’s behalf under
this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

     

     

    

 

COMMERCIAL
SECURITY AGREEMENT

	Loan
    No: 133008	(Continued)	Page
    3

 

 

 

Defective
Collateralization. This Agreement or any of the Related Documents ceases to be in full force and effect (including failure
of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.

 

Insolvency.
The dissolution or termination of Grantor’s existence as a going business, the insolvency of Grantor, the appointment
of a receiver for any part of Grantor’s property, any assignment for the benefit of creditors, any type of creditor workout,
or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Grantor or by any govemmental agency against any collateral securing the
Indebtedness. This includes a garnishment of any of Grantor’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim
which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or Guarantor
dies or becomes incompetent or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

 

Adverse
Change. A material adverse change occurs in Grantor’s financial condition, or Lender believes the prospect of payment or performance
of the Indebtedness is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

RIGHTS
AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Agreement, at any time thereafter, Lender shall have all
the rights of a secured party under the Florida Uniform Commercial Code. In addition and without limitation, Lender may exercise
any one or more of the following rights and remedies:

 

Accelerate
Indebtedness. Lender may declare the entire Indebtedness, including any prepayment penalty which Grantor would be required
to pay, immediately due and payable, without notice of any kind to Grantor.

 

Assemble
Collateral. Lender may require Grantor to deliver to Lender all or any portion of the Collateral and any and all certificates
of title and other documents relating to the Collateral. Lender may require Grantor to assemble the Collateral and make it available
to Lender at a place to be designated by Lender. Lender also shall have full power to enter upon the property of Grantor to take
possession of and remove the Collateral. If the Collateral contains other goods not covered by this Agreement at the time of repossession,
Grantor agrees Lender may take such other goods, provided that Lender makes reasonable efforts to return them to Grantor after
repossession.

 

Sell
the Collateral. Lender shall have full power to sell, lease, transfer, or otherwise deal with the Collateral or proceeds thereof
in Lender’s own name or that of Grantor. Lender may sell the Collateral at public auction or private sale. Unless the Collateral
threatens to decline speedily in value or is of a type customarily sold on a recognized market, Lender will give Grantor, and
other persons as required by law, reasonable notice of the time and place of any public sale, or the time after which any private
sale or any other disposition of the Collateral is to be made. However, no notice need be provided to any person who, after Event
of Default occurs, enters into and authenticates an agreement waiving that person’s right to notification of sale. The requirements
of reasonable notice shall be met if such notice is given at least ten (10) days before the time of the sale or disposition. All
expenses relating to the disposition of the Collateral, including without limitation the expenses of retaking, holding, insuring,
preparing for sale and selling the Collateral, shall become a part of the Indebtedness secured by this Agreement and shall be
payable on demand, with interest at the Note rate from date of expenditure until repaid.

 

Appoint
Receiver. In the event of a suit being instituted to foreclose this Agreement, Lender shall be entitled to apply at any time
pending such foreclosure suit to the court having jurisdiction thereof for the appointment of a receiver of any or all of the
Collateral, and of all rents, incomes, profits, issues and revenues thereof, from whatsoever source. The parties agree that the
court shall forthwith appoint such receiver with the usual powers and duties of receivers in like cases. Such appointment shall
be made by the court as a matter of strict right to Lender and without notice to Grantor, and without reference to the adequacy
or inadequacy of the value of the Collateral, or to Grantor’s solvency or any other party defendant to such suit. Grantor hereby
specifically waives the right to object to the appointment of a receiver and agrees that such appointment shall be made as an
admitted equity and as a matter of absolute right to Lender, and consents to the appointment of any officer or employee of Lender
as receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Collateral,
with the power to protect and preserve the Collateral, to operate the Collateral preceding foreclosure or sale, and to collect
the rents from the Collateral and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The
receiver may serve without bond if permitted by law. Lender’s right to the appointment of a receiver shall exist whether or not
the apparent value of the Collateral exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify
a person from serving as a receiver.

 

     

     

    

 

COMMERCIAL
SECURITY AGREEMENT

	Loan
    No: 133008	(Continued)	Page
4

 

 

 

Collect
Revenues, Apply Accounts. Lender, either itself or through a receiver, may collect the payments, rents, income, and revenues
from the Collateral. Lender may at any time in Lender’s discretion transfer any Collateral into Lender’s own name or that of Lender’s
nominee and receive the payments, rents, income, and revenues therefrom and hold the same as security for the Indebtedness or
apply it to payment of the Indebtedness in such order of preference as Lender may determine. Insofar as the Collateral consists
of accounts, general intangibles, insurance policies, instruments, chattel paper, choses in action, or similar property, Lender
may demand, collect, receipt for, settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender may determine,
whether or not Indebtedness or Collateral is then due. For these purposes, Lender may, on behalf of and in the name of Grantor,
receive, open and dispose of mail addressed to Grantor; change any address to which mail and payments are to be sent; and endorse
notes, checks, drafts, money orders, documents of title, instruments and items pertaining to payment, shipment, or storage of
any Collateral. To facilitate collection, Lender may notify account debtors and obligors on any Collateral to make payments directly
to Lender.

 

Obtain
Deficiency. If Lender chooses to sell any or all of the Collateral, Lender may obtain a judgment against Grantor for any deficiency
remaining on the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided
in this Agreement. Grantor shall be liable for a deficiency even if the transaction described in this subsection is a sale of
accounts or chattel paper.

 

Other
Rights and Remedies. Lender shall have all the rights and remedies of a secured creditor under the provisions of the Uniform
Commercial Code, as may be amended from time to time. In addition, Lender shall have and may exercise any or all other rights
and remedies it may have available at law, in equity, or otherwise.

 

Election
of Remedies. Except as may be prohibited by applicable law, all of Lender’s rights and remedies, whether evidenced by this
Agreement, the Related Documents, or by any other writing, shall be cumulative and may be exercised singularly or concurrently.
Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or
to take action to perform an obligation of Grantor under this Agreement, after Grantor’s failure to perform, shall not affect
Lender’s right to declare a default and exercise its remedies.

 

MISCELLANEOUS
PROVISIONS. The following miscellaneous provisions are a part of this Agreement:

 

Amendments.
This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as
to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in
writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’
Fees; Expenses. Grantor agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s reasonable attorneys’
fees and Lender’s legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone
else to help enforce this Agreement, and Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include
Lender’s reasonable attorneys’ fees and legal expenses whether or not there is a lawsuit, including reasonable attorneys’ fees
and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals,
and any anticipated post-judgment collection services. Grantor also shall pay all court costs and such additional fees as may
be directed by the court.

 

     

     

    

 

COMMERCIAL
SECURITY AGREEMENT

	Loan
    No: 133008	(Continued)	Page
5

 

 

 

GRANTOR:

 

CROSS
ENVIRONMENTAL SERVICES, INC.

 

	By:	/s/ Clyde
    A Biston	 
	 	Clyde
    A Biston, 

President of Cross Environmental Services, Inc.	 

 

 

 LaserPro.
Ver. 14.5.10.004 Cop, D*H USA Corporation 1997, 2015. All Rights Reserved. - FL G: \LPRO\CFN\LPL\E40.FC TR-124479 PR-30

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