Document:

Loan Agreement

 Exhibit 10.65 
  
 LOAN AGREEMENT 
  

			
	ENERGYTEC, INC., a Nevada Corporation	 	AMERICAN BANK OF TEXAS
		
	14785 Preston Road, Ste. 500	 	P. O. Box 1234
		
	Dallas, Texas 75254	 	Sherman, Texas 75091-1234
		
	 (hereafter called “Borrower”)
	 	 (hereafter called “Lender”)

  
 The Borrower, a
corporation duly organized, existing in good standing under the laws of the State of Nevada and with its principal office, place of record-keeping and mailing address stated above, has applied to Lender to assume a loan originally executed by
PRODUCERS PIPELINE CORPORATION to be evidenced by a Modification Agreement dated April 1, 2003, in the principal amount of ONE MILLION NINE HUNDRED SIX THOUSAND EIGHT HUNDRED FORTY-SIX AND 75/100 DOLLARS ($1,906,848.75), bearing interest at the
rates therein specified and containing certain other terms and conditions as set forth therein (the “indebtedness”). Repayment of the indebtedness is personally guaranteed by ROY T. RIMMER, JR., NANCY N. RIMMER, LACY J. HARBER. ROCKWALL
MARKETING CORPORATION and PRODUCERS PIPELINE CORPORATION (the “Guarantor”) and further secured by: Oil and Gas Deeds of Trust, Security Agreement, Assignment of Productions and Financing Statement; Security Agreements. Financing
Statements, and Assignment of Life Insurance (the “Security Instruments”) 
  
 In consideration of Lender consenting to such assumption, Borrower and Guarantor agree as follows: 
  
 SECTION I.  REPRESENTATIONS AND WARRANTIES. 
  
 Borrower and each Guarantor represent to Lender that: 
  
 (a) The foregoing statements concerning Borrower are true and correct; 
  
 (b) This Loan Agreement, the Indebtedness, Security Instruments and any other instrument contemplated in connection herewith
(the “Loan Documents”), have been duly authorized, executed and delivered, and constitute the legal and binding obligations of Borrower enforceable in accordance with their terms, and are not in conflict with any provision of law or of the
articles of incorporation or bylaws of Borrower or any other agreement to which Borrower is a party; 
  
 (c) Borrower’s and Guarantor’s Financial Information (hereafter defined) previously delivered to Lender is all correct and complete and fairly
represents the Borrower’s and Guarantor’s financial condition at the date of said Financial Information and the results of Borrower’s operation for such period; all such Financial Information has been prepared in accordance with
generally accepted accounting principles consistently followed throughout the periods involved. Since the date of such Financial Information Borrower and Guarantor have not undergone any material adverse changes; 
  
 (d) There are no known actions, suits or proceedings against Borrower (for
which adequate reserves have not been made on Borrower’s books) at law or in equity, or before or by any governmental body or instrumentality, domestic or foreign; and contingent liabilities of Borrower are fully disclosed in the Financial
Information referred to above; 
  
 (e) Borrower has good and
marketable title to its properties and assets and same are subject to no liens, mortgages, security interest, encumbrances, or charges of any kind, except as may be reflected in the Financial Information previously furnished to Lender; 

 
 (f) Borrower is not a party to any agreement or instrument or subject to
any charter or other corporate restriction materially and adversely affecting its business, properties, assets, operations or its general condition whether financial or otherwise; 
  
 (g) No certificate or statement herewith or heretofore delivered by Borrower or Guarantor to Lender in connection herewith,
or in connection with any transaction contemplated hereby, contains any untrue statement of a material fact or fails to state any material fact necessary to keep the statements contained therein from being misleading. 
  
 SECTION II.  POSITIVE COVENANTS. 
  
 Borrower and each Guarantor covenant to: 
  
 (a) Furnish to Lender within a period not to exceed 120 days after the
closing of each calendar year (or fiscal year, as the case may be), year end financial statements for Guarantors and reviewed year end financial statements for Borrower, and all other business enterprises conducted on all real property upon which a
lien has been granted by Borrower to secure repayment of the Indebtedness (the “Property”) including balance sheet and profit and loss figures, Income Tax Returns for the year in which such return is due, oil and gas production reports to
the extent applicable and all accountant’s comments for that year (“Financial Information”); 
  
 (b) Furnish to Lender concurrently with the furnishing of the year end Financial Information referred to above, a written certificate signed by
Borrower’s chief financial officer and containing a statement as to whether or not, to the knowledge of such officer, a default has occurred and is continuing, and specifying, if a default exists, what steps are being taken by Borrower to cure
the same; 
  
 (c) Furnish to Lender quarterly Financial
Information on the Borrower and all other business enterprises conducted on the Property by the xxth day of the month following each calendar quarter (March 31, June 30, September 30, and December 31), signed by a proper accounting officer of
Borrower; 
  
 (d) Consolidated financial statements will be
furnished on Borrower, and all related entities; 
  
 (e) Furnish
all Financial Information in such form as Lender may reasonably request and furnish such other information from time to time as Lender may reasonably request; 
  

(f) At all times keep true and complete books, records and accounts, and permit Lender through its agents and representatives to visit and inspect any
of Borrower’s properties and to discuss Borrower’s affairs, finances and accounts with its officers, all at such reasonable times as Lender may desire; 
  
 (g) Maintain and keep in full force and effect, its existence, rights and franchises and comply with all laws applicable to
Borrower; 
  
 (h) Pay or cause to be paid all taxes, assessments
and other governmental charges levied upon any of Borrower’s properties or in respect of franchises or income before the same became delinquent, unless the same is being contested in good faith by appropriate proceedings and reserves deemed

  

 (i) Maintain, preserve, protect and keep in good repair, working order and condition, its property and
every part thereof used or useful in the conduct of Borrower’s business and from time to time make all needful and proper repairs, renewals, replacements and improvements thereto, so that Borrower’s business may be properly and
advantageously conducted at all times; 
  
 (j) Keep adequately
insured by reputable insurers satisfactory to Lender all property of a character usually insured by companies engaged in businesses similar to that of Borrower and carry such other insurance as is usually carried by similar companies and, at
Lender’s request, deliver to Lender evidence of the maintenance of such insurance; 
  
 (k) Pay all lawful claims, whether for labor, materials or otherwise, which might or could, if unpaid, became a lien or change on any property or assets of Borrower, unless the same is being contested in good faith by
appropriate proceedings and reserves deemed adequate to Lender have been established therefor; 
  
 (l) Comply fully with all of the provisions of the Loan Documents; 
  
 (m) Give immediate notification to Lender of any litigation, or of any claim of controversy which might become the subject of litigation of any Federal
tax lien, assessment or knowledge of a proposed tax assessment in excess of $10,000,00. 
  
 SECTION III.  NEGATIVE COVENANTS. 
  
 Until
the Note and all other obligations and liabilities of Borrower hereunder are fully paid. Borrower covenants that it will not, without prior written consent of Lender: 
  
 (a) Suffer or permit any Event of Default to occur under the Loan Documents but shall faithfully preserve and perform all of
their covenants; 
  
 (b) Substantially change the nature of its
business nor engage in business with companies controlled by the officers or members of Borrower; 
  
 (c) Reorganize, merge or consolidate with, or acquire as or substantially all of the assets of any other company, firm or association, or make any other
substantial change in its capitalization or character of its business; 
  
 (d) Allow any final judgment for the payment of money rendered against it to remain undischarged or unbonded for a period of 60 days; 
  
 (e) Sell any of its assets used or useful in its business, except in the regular course of business; 
  
 (f) Suffer or permit any event of default to occur under the loan documents
including the notes, security agreements or loan agreements evidencing or related to any other loan or extension of credit by Lender to Borrower or any Guarantor, whether direct or indirect (including purchased participation interests). 

 
 SECTION IV.  DEFAULT. 
  
 Each of the following events shall constitute a Default: 
  
 (a) Default in the timely payment of installment of principal and interest
or in the performance of any covenant or provision of any Loan Documents. 
  
 (b) Borrower, or any Guarantor, shall: (a) execute an assignment for the benefit of creditors or take any action in furtherance thereof; or (b) admit in writing his inability to pay its debts generally as they become
due; or (c) as a debtor, file a petition, case, proceeding, or other action pursuant to, or voluntarily seek the benefit or benefits of any debtor relief law or take any action in furtherance thereof; or (d) seek, acquiesce in, or suffer the
appointment of a receiver, trustee, or custodian of Borrower, any Guarantor, any Property described in the Loan Document, in whole or in part, or any significant portion of other property belonging to Borrower or any Guarantor that affects
performance under the Note; or (e) voluntarily become a party to any proceeding seeking to effect a suspension or having the effect of suspending any of the rights of Lender or the Trustee granted or referred to in the Loan Documents or take any
action in furtherance thereof. 
  
 (c) The filling of a petition,
case, proceeding, or other action against Borrower, or any Guarantor, as a debtor under any debtor relief law, or seeking appointment of a receiver, trustee, or custodian of Borrower, or any Guarantor, or of any property described in the Loan
Documents or any part thereof, or of any significant portion of other property belonging to Borrower or any Guarantor, that affects its ability to perform under the Note, or seeking to effect a suspension or having the effect of suspending any of
the rights of Lender or the Trustee granted or referred to in the Loan Documents, and; (a) Borrower or any Guarantor admits, acquiesces in, or fails to contest the material allegations thereof; or (b) the petition, case, proceedings, or other action
results in entry of an order for relief or order granting the relief sought against Borrower or any Guarantor; or (c) the petition, case, proceeding, or other action is not permanently dismissed on or before the earliest of trail thereon or sixty
(60) days next following the date of its filing. 
  
 (d) The
discovery by Lender that any warranty, covenant, or representation made to Lender by or on behalf of Borrower or any Guarantor is false, misleading, erroneous, or breached in any material respect. 
  
 A Default shall not be an Event of Default if the Default is cured within ten
(10) days following the delivery of or the mailing of written notice from Lender to Borrower’s most current address as reflected in Lender’s business records specifying the existence of any such Default. If such Default is not cured within
the ten (10) day period, the Default shall be an Event of Default without need of any further notice or action by Lender. 
  
 Upon the occurrence of any such Event of Default, Lender at its option, without written notice, demand or presentation, which are hereby waived, may
declare the unpaid principal of and accrued interest then owing upon the Note and any other indebtedness of Borrower to Lender, to be immediately due and payable, and upon such declaration such principal and interest shall become and be forthwith
due and payable. 
  
 SECTION V.  MISCELLANEOUS. 
  
 All covenants and agreements contained herein shall bind and inure to the
benefit of, and be enforceable by, the respective successors and assigns of the parties hereto, whether so expressed or not, and in particular shall inure to the benefit of and be enforceable by the holder of the Note. No modification, consent,
amendment or waiver of any provision of this Agreement, nor consent to any departure by Borrower therefrom shall be effective unless the same shall be in writing and signed by an officer of Lender, and then shall be effective only in the specific
instance and for the purpose for which given. This Agreement shall be construed and enforced in accordance with the laws of the State of Texas and any portion hereof held by a court of competent jurisdiction to be invalid or illegal shall not
invalidate or nullify the remainder of this Agreement, but shall be confined only to that portion held invalid or illegal. No failure or delay on the part of Lender to exercise any right hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise by Lender of any right hereunder preclude any other or further exercise thereof. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. All accounting terms not specifically defined
herein shall be construed in accordance with generally accepted principals of good accounting practice consistently applied on the basis used by Borrower in prior years. 
  
 Any notice under this Agreement shall be in writing and shall be effective when actually delivered or, if mailed, shall be
deemed effective when deposited in the United States mail first class, certified mail, postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving
formal written notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes, Borrower agrees to keep Lender informed at all times of Borrower’s current address. 
  

 Page 2 

 EXECUTED this 1st day of April, 2003. 
  

									
	 LENDER:
	 	 	 	 BORROWER:

			
	 AMERICAN BANK OF TEXAS
	 	 	 	 ENERGYTEC, INC. a Nevada Corporation

					
	 BY:
	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 FRANK W. COLE, its President

			
	 	 	 	 	 GUARANTOR:

				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 ROY T. RIMMER, JR.

				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 NANCY N. RIMMER

				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 LACY J. HARBER

			
	 	 	 	 	 ROCKWALL MARKETING CORPORATION

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 ROY T. RIMMER, JR., its President

			
	 	 	 	 	 PRODUCERS PIPELINE CORPORATION

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 ROY T. RIMMER, JR., its President

  
 STATE OF TEXAS 
  
 COUNTY OF GRAYSON 
  
 This instrument was acknowledged before me on the
             day of
                                    , 2003, by
                                        ,
                     of AMERICAN BANK OF TEXAS, a banking association, on behalf of said banking association. 
  

	
	
	 
	 NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF
                         
  
 This instrument was acknowledged below me on the              day of
                                , 2003, by FRANK W. COLE, President of ENERGYTEC,
INC., a Nevada corporation, on behalf of said corporation. 
  

	
	
	 
	 NOTARY PUBLIC - STATE OF TEXAS

  

 STATE OF TEXAS 
  
 COUNTY OF                      
  
 This instrument was acknowledged before me on the
             day of                         , 2003, by
ROY T. RIMMER, JR. 
  

	
	
	 
	 NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF
                     
  
 This instrument was acknowledged before me on the              day of
                        , 2003, by NANCY N. RIMMER. 
  

	
	
	 
	 NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF
                     
  
 This instrument was acknowledged before me on the              day of
                        , 2003, by LACY J. HARBER. 
  

	
	
	 
	 NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF
                     
  
 This instrument was acknowledged before me on the              day of
                    , 2003, by ROY T. RIMMER, JR., President of ROCKWALL MARKETING CORPORATION, a Texas corporation, on behalf of said
corporation. 
  

	
	
	 
	 NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF
                     
  
 This instrument was acknowledged before me on the              day of
                        , 2003, by ROY T. RIMMER, JR., President of PRODUCERS PIPELINE CORPORATION, a Delaware
corporation, on behalf of said corporation. 
  

	
	
	 
	 NOTARY PUBLIC - STATE OF TEXAS

  

			
	 	 	 Prepared in the Law Office of,

		
	 	 	 Munson, Munson, Pierce & Cardwell, P.C.

	 	 	 301 W. Woodard - P. O. Box 1099

	 	 	 Denison, Texas 75020

	 	 	 (903) 463-3750

  

 Page 4Form of Modification Agreement

 Exhibit 10.66 
  
 MODIFICATION AGREEMENT 
 (to be recorded in Cass County, Texas) 
  

			
	ENERGYTEC, INC., a Nevada Corporation	 	AMERICAN BANK OF TEXAS
		
	14785 Preston Road, Ste. 500	 	P. O. Box 1234
		
	Dallas, Texas 75254	 	Sherman, Texas 75091-1234
		
	 (hereinafter called “Borrower”)
	 	 (hereinafter called “Lender”)

  

			
	STATE OF TEXAS	 	KNOW ALL MEN BY THESE PRESENTS:
	  
 COUNTY OF CASS
	 

  
 THIS AGREEMENT (herein
so called) is made and entered into as of the 1st day of April, 2003, by and between Lender, and Borrower, 
  
 WITNESSETH: 
  
 WHEREAS, PRODUCERS PIPELINE CORPORATION (“Producers”) executed and delivered to AMERICAN BANK OF TEXAS that promissory note dated May 11, 1999, in the original principal sum of $2,400,000.00 (“Note
No. 1”), that promissory note dated May 11, 2000, in the original principal sum of $1,000,000.00 (“Note No. 2”) AND that promissory note dated May 5, 2000, in the original principal sum of $250,000.00 (“Note No. 3”) which
notes are currently held by Lender (Note No. 1, Note No. 2 and Note No. 3 are sometimes referred to herein as the “Indebtedness”); and 
  
 WHEREAS, the Indebtedness is secured by deed of trust liens conveyed in deeds of trust dated May 11, 1999 and November 21, 1997 (the “Deeds of
Trust”) and UCC-1 Financing Statements, all as more fully described in Exhibit “A” attached hereto and made a part hereof for all purposes covering real and personal property described in Exhibit “B” attached hereto and made
a part hereof for all purposes (the “Property”) owned by PRODUCERS PIPELINE CORPORATION and ROCKWALL MARKETING CORPORATION, more fully described in said Deeds of Trust and Financing Statements; and 
  
 WHEREAS, the Indebtedness is further secured by certain other security (the
“Additional Security”) more fully described as follows, to-wit: Security Agreements dated November 21, 1997, and UCC-1 Financing Statement filed under Secretary of State File No. 98-005846, executed by PRODUCERS, covering all inventory,
equipment and accounts receivable; Security Agreements dated November 21, 1997 and UCC-1 Financing Statement filed under Secretary of State File No. 98-005845, executed by ROCKWALL MARKETING CORPORATION, covering all inventory, equipment and
accounts receivable; Commercial Guaranty Agreements executed by ROY T. RIMMER, JR., NANCY N. RIMMER, LACY J. HARBER and ROCKWALL MARKETING CORPORATION dated May 11, 1999, August 28, 1999 and August 3, 2000; Loan Agreements executed by PRODUCERS, ROY
T. RIMMER, JR., NANCY N. RIMMER, LACY J. HARBER and ROCKWALL MARKETING CORPORATION, dated May 11, 1999 and August 28, 1999; and Assignments of Life Insurance Policy LT0003116 issued by Hartford Life & Annuity Insurance Co., in the amount of
$4,000,000.00 on the life of ROY T. RIMMER, dated November 3, 1998 and May 11, 1999, (the Deeds of Trust and Additional Security being collectively referred to as the “Security Documents”); and 
  
 WHEREAS, the Note No. 1 matured on February 12, 2001, Notes Nos. 2 and 3
matured on August 12, 2001, and PRODUCERS requested and Lender agreed to combine, amend and modify the Indebtedness and Security Documents, by Modification Agreement dated August 30, 2001; and 
  
 WHEREAS, the Indebtedness matured on January 15, 2002, and PRODUCERS
requested and Lender agreed to amend and modify the Indebtedness and Security Documents by Modification Agreement dated January 15, 2002; and 
  
 WHEREAS, the Property has been conveyed to Borrower and Borrower has assumed the obligations of PRODUCERS for repayment of the Indebtedness. 

 

 Page 1 

 NOW THEREFORE, in consideration of the sum of Ten and No/100 Dollars ($10.00) and the exchange of other
good and valuable consideration paid by each of the parties to the other, the receipt and sufficiency of which is hereby acknowledged, Lender and Borrower AGREE AS FOLLOWS: 
  
 1. Acknowledgment of Outstanding Balance. The outstanding principal balance of the Indebtedness as of the date hereof
is ONE MILLION NINE HUNDRED SIX THOUSAND EIGHT HUNDRED FORTY-SIX AND 75/100 DOLLARS ($1,906,846.75). 
  
 2. Renewal and Extension of Maturity. The Indebtedness is hereby renewed and the maturity of the Indebtedness is hereby extended to March 31,
2008 (“Revised Maturity Date”). 
  
 3. Amendment
of Interest Rate. The interest rate on the Indebtedness shall be Eight Percent (8.00%) per annum. 
  
 4. Required Payments. Principal and accrued and unpaid interest on the Indebtedness shall be due and payable as follows: 
  
 Interest only shall be due and payable on May 1, 2003, June 1, 2003, July 1,
2003, August 1, 2003, September 1, 2003 and October 1, 2003. 
  
 Beginning November 1, 2003 and continuing regularly on the 1st day of each and every month thereafter until the Revised Maturity Date, payment shall be due and payable as follows: accrued and unpaid interest plus principal equal to the
greater of the following amounts: $35,311.98 or 50% of the net income from oil and gas production from the Property. 
  
 5. Financial Statements and Appraisals. Borrower and each person liable for repayment of the Indebtedness shall furnish to Lender, balance sheets,
income statements and cash flow statements as required in the Loan Agreement of even date herewith, in such form and detail as Lender shall require. Borrower shall furnish to Lender upon request, such appraisals of the Property as may be required of
Lender under applicable State or Federal laws and regulations issued pursuant thereto. 
  
 6. Hazardous Substances. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. Borrower shall promptly give Lender written notice of
any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns,
or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with
Environmental Law. As used in this Paragraph 6, “Hazardous Substances” are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum
products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this Paragraph 6, “Environmental Law” means federal laws and laws of the jurisdiction where
the Property is located that relate to health, safety or environmental protection. 
  
 7. Balance Due at Maturity. THIS LOAN IS PAYABLE IN FULL AT MATURITY. BORROWER MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE. THE LENDER IS UNDER NO OBLIGATION TO REFINANCE
THE LOAN AT THAT TIME. BORROWER WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT BORROWER MAY OWN, OR BORROWER WILL HAVE TO FIND A LENDER WHICH MAY BE THE LENDER BORROWER HAS THIS LOAN WITH, WILLING TO LEND BORROWER THE MONEY.
IF BORROWER REFINANCES THIS LOAN AT MATURITY, OBTAINS REFINANCING FROM THE SAME LENDER. THIS LENDER WILL CONSIDER AN APPLICATION TO REFINANCE THE BALLOON PAYMENT AT THE TIME PAYMENT IS DUE, ON THE SAME BASIS AS ALL OTHER NEW MORTGAGE LOAN
APPLICATIONS. GUARANTORS MUST CONSENT IN WRITING TO ANY REFINANCING. 
  
 8. Ratification of Security Documents. Borrower and Lender further agree that the liens, assignments and security interests created by the Security Documents shall continue and carry forward until Indebtedness is paid in full.
Borrower further agrees that Lender is the holder of the Indebtedness and the Security Documents and that such liens, assignments and security interests are hereby ratified and affirmed as valid and subsisting against the Property, and that this
Agreement shall in no manner vitiate, affect or impair the Indebtedness or the Security Documents (except as expressly modified in this Agreement), and that such liens, assignments, and security interests shall not in any manner be waived, released,
altered or modified until the Indebtedness and all other obligations secured by the Security Documents (including any and all subsequent renewals and extensions) have been paid in full. 
  
 9. Release of Claims. Borrower hereby RELEASES, RELINQUISHES and forever DISCHARGES Lender, its agents, officers,
directors, employees and representatives of and from any and all claims, demands, actions and causes of action of any and every kind or character, whether known or unknown, present or future, which Borrower may have against Lender, its agents,
officers, directors, employees and representatives arising out of or with respect to any and all transactions relating to the Indebtedness and the Security Documents occurring prior to the date hereof. 
  
 10. Miscellaneous. 
  
 (a) Except as modified hereby, all terms and provisions of the Indebtedness
and Security Documents remain unchanged, are expressly ratified and shall continue in full force and effect, and Borrower acknowledges and affirms Borrower’s liability to Lender thereunder. In the event of an inconsistency between this
Agreement and the terms of the Indebtedness and/or Security Documents, this Agreement shall govern. 
  
 (b) Borrower hereby agrees to pay all costs and expenses incurred by Lender in connection with the execution and administration of this Agreement, the
reinstatement and modification of the Indebtedness and/or Security Documents, and any other documents executed in connection herewith. 
  

 Page 2 

 (c) Any default by Borrower in the performance of its obligations herein contained shall constitute a
default under the Indebtedness and Security Documents, and shall allow Lender to exercise any or all of its remedies set forth in the Indebtedness and Security Documents or at law or in equity. 
  
 (d) Lender does not, by its execution of this Agreement, waive any rights it
may have against any person not a party hereto. 
  
 (e) This
Agreement may be executed in multiple counterparts, each of which shall constitute an original instrument, but all of which shall constitute one and the same Agreement. 
  
 (f) Borrower agrees that this Agreement and all of the covenants and agreements contained herein shall be binding upon the
parties hereto and shall inure to the benefit of and be binding upon each of their respective heirs, executors, legal representatives, successors and permitted assigns. 
  
 11. No Oral Agreements. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  

									
	 LENDER:
	 	 	 	 BORROWER:

			
	 AMERICAN BANK OF TEXAS
	 	 	 	 ENERGYTEC INC., a Nevada Corporation

					
	 BY:
	 	 /s/ Kyle Beall
	 	 	 	 BY:
	 	 /s/ Frank W. Cole

	 	 	 	 	 	 	 	 	 FRANK W. COLE, its President

			
	 	 	 	 	 GUARANTOR:

				
	 	 	 	 	 	 	 /s/ Roy T. Rimmer, Jr.

	 	 	 	 	 	 	ROY T. RIMMER, JR.
				
	 	 	 	 	 	 	/s/ Lacy J. Harber
	 	 	 	 	 	 	LACY J. HARBER
			
	 	 	 	 	ROCKWALL MARKETING CORPORATION
					
	 	 	 	 	 	 	 By:
	 	/s/ Roy T. Rimmer, Jr.
	 	 	 	 	 	 	 	 	ROY T. RIMMER, JR., its President
			
	 	 	 	 	PRODUCERS PIPELINE CORPORATION
					
	 	 	 	 	 	 	 By:
	 	/s/ Roy T. Rimmer, Jr.
	 	 	 	 	 	 	 	 	ROY T. RIMMER, JR., its President

  

 Page 3 

 STATE OF TEXAS 
  
 COUNTY OF GRAYSON 
  

This instrument was acknowledged before me on the 11th day of April, 2003, by Kyle Beall JR. V.P. of AMERICAN BANK OF TEXAS, a banking association, on behalf of said banking association. 
  

	
	
	/s/ Sharron Buick
	NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF GRAYSON

  
 This instrument was acknowledged before me on the
11th day of April, 2003, by FRANK W. COLE, President of ENERGYTEC, INC., a Nevada corporation, on behalf of said
corporation. 
  

	
	
	/s/ Sharron Buick
	NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF TARRANT

  
 This instrument was acknowledged before me on the
21st day of April, 2003, by ROY T. RIMMER, JR. 
  

	
	
	/s/ Evelyn J. Kyle
	NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF GRAYSON

  
 This instrument was acknowledged before me on the
11th day of April, 2003, by LACY J. HARBER. 
  

	
	
	/s/ Sharron Buick
	NOTARY PUBLIC - STATE OF TEXAS

  

 Page 4 

 STATE OF TEXAS 
  
 COUNTY OF TARRANT 
  

This instrument was acknowledged before me on the 21st day of April, 2003, by ROY T. RIMMER, JR., President of ROCKWALL MARKETING CORPORATION, a Texas corporation, on behalf of said corporation. 
  

	
	
	/s/ Evelyn J. Kyle
	NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF TARRANT

  
 This instrument was acknowledged before me on the
21st day of April, 2003, by ROY T. RIMMER, JR., President of PRODUCERS PIPELINE CORPORATION, a Delaware corporation,
on behalf of said corporation. 
  

	
	
	/s/ Evelyn J. Kyle
	NOTARY PUBLIC - STATE OF TEXAS

  

			
	 After recording, return to:
	  	 Prepared in the Law Office of:

		
	 	  	 Munson, Munson, Pierce & Cardwell, P.C.
 301 W. Woodard - P. O. Box 1099
 Denison, Texas 75020
 (903) 463-3750

  

 Page 5 

  
 EXHIBIT “A”

  
 Commercial Deed of Trust, Security Agreement, Financing Statement and
Assignment of Rents executed by Rockwall Marketing Corporation, dated May 11, 1999, recorded in Volume 1082, Page 733 of the Deed of Trust Records of Cass County, Texas. 
  
 Commercial Deed of Trust, Security Agreement, Financing Statement and Assignment of Rents executed by Producers Pipeline Corporation, dated
May 11, 1999, recorded in Volume 1082, Page 744 of the Deed of Trust Records of Cass County, Texas. 
  
 Oil and Gas Deed of Trust, Security Agreement, Assignment of Production and Financing Statement executed by Rockwall Marketing Corporation, dated May 11, 1999, recorded in Volume 1082, Page 758 of the Deed of Trust
Records of Cass County, Texas. 
  
 UCC-1 Financing Statement executed by Producers
Pipeline Corporation filed with the Secretary of State of Texas under File No. 99-102646. 
  
 UCC-1 Financing Statement executed by Producers Pipeline Corporation filed with the Secretary of State of Texas under File No. 99-102647. 
  
 UCC-1 Financing Statement executed by Producers Pipeline Corporation filed with the Secretary of State of Texas under File No. 99-102648.

  

 Page 6 

  
 EXHIBIT “B”

  
 Part One: 
  
 Tract I: 
  
 Situated in the County of Cass, State of Texas, part of the Samuel Burnham Survey, Abstract
No. 67, and being that certain Easement and Right of Way over and across 69.00 acres, more or less, conveyed by Robert L. Warren to Producers Pipeline Corporation, recorded in Volume 1078, Page 403 of the Official Records of Cass County, Texas.

  
 Situated in the County of Cass, State of Texas, part of the Samuel Burnham
Survey, Abstract No. 67, and being that certain Easement and Right of Way over and across 100.00 acres, more or less, conveyed by Arthur Andrew Arnold, et al to Producers Pipeline Corporation, recorded in Volume 1078, Page 405 of the Official
Records of Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas,
part of the John C. Gahagan Survey, Abstract No. 390, and being that certain Easement and Right of Way over and across 70.34 acres, more or less, conveyed by Donald E. Coats, Sr., et ux, to Producers Pipeline Corporation, recorded in Volume 1078,
Page 407 of the Official Records of Cass County, Texas. 
  
 Situated in the County
of Cass, State of Texas, part of the John C. Gahagan Survey, Abstract No. 390 and being that certain Easement and Right of Way over and across 35.16 acres, more or less, conveyed by Donald E. Coats, Jr., et ux, to Producers Pipeline Corporation,
recorded in Volume 1078, Page 409 of the Official Records of Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, part of the Samuel Burnham Survey, Abstract No. 67, and being that certain Easement and Right of Way over and across 50.00 acres, more or less, conveyed by E. H. Florence, et ux to Producers
Pipeline Corporation recorded in Volume 1078, Page 411 of the Official Records of Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, being Tract I, Segment I of that certain Surface Lease and Pipeline Right-of-Way Agreement by and between Shell Oil Company and Delhi Gas Pipeline Corporation dated May
8, 1973, such surface leases being recorded in Volume 558, Page 496 of the Official Records of Cass County, Texas and being partially assigned by Partial Assignment of Right of Way from Koch Midstream Services Company to Producers Pipeline
Corporation effective March 1, 1999, and recorded in Volume 1078, Page 391, Official Records of Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, and being a six inch pipeline and appurtenances, Beginning at a point within the Sulphur River Bryans Mill Plant located
in the Benjamin F. Lynn Survey, Abstract No. 651, Cass County, Texas, and continuing in a Northwesterly direction over, across, and through the following surveys: John Myers Survey, Abstract No. 695; Elizabeth Barcroft Survey, Abstract No. 113;
W.M.S. Armstrong Survey, Abstract No. 29; J. S. Petty Survey, Abstract No. 864; H. C. Adams Survey, Abstract No. 16; Geo W. Sternes Survey, Abstract No. 97; Cass County School Land, Abstract No. 173; Lewis Holcomb Survey, Abstract No. 479; J. P.
Mathews Survey, Abstract No. 1265, at which point the six inch 

  

 Page 1 

 
pipeline leaves Cass County, Texas and crosses the Sulphur River and enters Bowie County, Texas. Said pipeline and appurtenances being more fully shown on
Alignment Drawings Numbered 1 through 6 of Delhi Gas Pipeline Corp., Dalby Springs Lateral, dated March 1973, and being more fully described in Assignment and Bill of Sale of Personal Property from Koch Midstream Services Company to Producers
Pipeline Corporation, effective March 1, 1999 and recorded in Volume 1078, Page 386, Official Records, Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, and being those rights of way, easements and permits assigned by Koch Midstream Services Company to Producers Pipeline
Corporation by Assignment of Rights-of-Way, Easements and Permits effective March 1, 1999, and recorded in Volume 1078, Page 395, Official Records, Cass County, Texas, said rights of way, easements and permits being more fully described in Schedule
I attached hereto and made a part hereof for all purposes. 
  
 Tract II: 
  
 Situated in the County of Cass,
State of Texas, and being 9.0 acres of land out of the John C. Gahagan Survey, Abstract No. 390 and being the same land conveyed by L. F. Goza to Rockwall Marketing Corporation by deed dated April 13, 1998 and recorded in Volume 1055, Page 553 of
the Official Records of Cass County, Texas, said land being described by metes and bounds in Exhibit “C” attached hereto and made a part hereof for all purposes. 
  
 Tract III: 
  
 C. E. GLASS NO. 1 GAS UNIT 
  
 Gas Unit Designation, Kaiser Oil (U.S.), Ltd. et al - V. E. Glass Unit No. 1, dated January 25, 1982, recorded in Volume 672, Page 542 of the Official Records of Cass
County, Texas, as well as any amendments thereto of record in Cass County, Texas, as more fully described in Assignment and Bill of Sale from Salt Creek Production, Inc. and K.M.A. Operating, Inc. to Rockwall Marketing Corporation effective January
1, 1996, recorded in Volume 1006, Page 876, Official Records of Cass County, Texas, said leases being more fully described in Schedule I attached hereto and made a part hereof for all purposes. 
  
 R. BROWN NO. 1 GAS UNIT 
  
 Oil, gas and mineral property known as the Long Operating, L.L.C. - R. Brown No. 1 Gas Unit
located in the Atlanta South Field, Samuel Burnham Survey, Abstract No. 67, more fully described in Assignment and Conveyance from Long Petroleum, Inc. to Rockwall Marketing Corporation, effective January 1, 1999, recorded in Volume 1075, Page 513,
Official Records, Cass County, Texas, and al of the Oil, Gas and Mineral Leases covering lands included therein, being described in Schedule II attached hereto and made a part hereof for all purposes. 
  

 Page 2 

 BEAVER GAS UNIT NO. 1 
  
 Oil and Gas Properties, Wells and Equipment described in Assignment and Bill of Sale from
SOGO, Inc. to Rockwall Marketing Corporation, effective September 1, 1996, recorded in Volume 1019, Page 381, Official Records of Cass County, Texas, said oil and gas properties being more fully described in Schedule III attached hereto and made a
part hereof for all purposes. 
  
 Part Two: 
  
 TO THE EXTENT LOCATED AT, INSTALLED ON, DEPOSITED IN, AFFIXED OR ATTACHED TO, USED IN
CONNECTION WITH OR RESULTING FROM OPERATIONS CONDUCTED ON THE REAL PROPERTY: 
  
 All of Debtor’s presently existing and hereafter arising or acquired “Accounts” which shall mean and include all of Debtor’s present and future rights to payment for real property, goods, merchandise or Inventory (as
hereinafter defined) sold, rented or leased or for services rendered, including, without limitation, those which are not evidenced by instruments or chattel paper, and whether or not they have been earned by performance; account(s), accounts
receivable, proceeds of any letters of credit on which Debtor is named as beneficiary; contract rights; acceptances; notes; chattel paper; instruments (other than margin stock); drafts; documents; insurance proceeds; deposits or other sums credited
by or due from the Secured Party to Debtor; and all such obligations whatsoever owing to Debtor, together with all instruments and all documents of title representing any of the foregoing, all rights in any goods, merchandise or Inventory which any
of the same may represent, all rights in any returned or repossessed goods, merchandise and Inventory, and all right, title, security and guaranties with respect to each of the foregoing, including, without limitation, any right of stoppage in
transit. In addition, this definition shall include the definition of “accounts” as that term is used in the Uniform Commercial Code of each state in which the Debtor’s Accounts are located. 
  
 All of Debtor’s presently existing and hereafter arising or acquired
“Inventory” which shall mean any and all goods, merchandise and other personal property, wheresoever located and whether or not in transit, now owned or hereafter acquired by Debtor which is or may at any time be held for sale or lease,
furnished under any contract of service or held as raw materials, work in process, finished goods, supplies or material used or consumed in Debtor’s business and all such property the sale or other disposition of which has given rise to
Accounts and which has been returned to or repossessed or stopped in transit by Debtor or which is or might be used in connection with the manufacture, packing, shipping, advertising, selling or finishing of such goods, merchandise and other
personal property, all returned or repossessed goods now, or at any time or times hereafter, in the possession or under the control of Debtor or Secured Party, and all documents of title or documents representing the same. In addition, this
definition shall include the definition of “inventory” as that term is used in the Uniform Commercial Code of each state in which the Debtor’s Inventory is located. 
  
 All of Grantor’s presently existing and hereafter arising or acquired “Equipment” which shall mean all of Grantor’s now
owned or hereafter acquired fixtures, machinery and equipment, 

  

 Page 3 

 
including, without limitation, furniture, rolling stock, vehicles, trade fixtures and machinery, and the equipment more fully described in Exhibit
“C” attached hereto and made a part hereof for all purposes, together with any and all improvements, accessions, parts and appurtenances thereto, substitutions therefor and replacements thereof. In addition, this definition shall include
the definition of “equipment” as that term is defined in the Uniform Commercial Code of each state in which the Grantor’s Equipment is located. 
  

All accessions to, substitutions for and all replacements, products and proceeds of the foregoing, including, without limitation, proceeds of insurance policies
insuring any of the foregoing. 
  
 All books and records (including, without
limitation, customer lists, credit files, computer programs, printouts and other computer materials and records) of Grantor pertaining to any of the foregoing. 
  

 Page 4 

  
 EXHIBIT “C”

  
 certain real property in Cass County, Texas described as follows: 

 
 Nine (9) acres of land off the south end of the following described tract
lying and situated on the east side of State Highway No. 77: 
  
 Being a part of the John C. Gahagan Survey, A-390, in Cass County, Texas and being more fully described by metes and bounds as follows: 
  
 Beginning at the Southeast Corner of said Survey at a stake from which a pine brs. South 5 deg. East 10 vrs., a P. O. brs. South 62 deg. West 14.4 vrs.
both marked “CNS”: 
  
 THENCE West 651 vrs. to a stake
from which a pine brs. North 47 deg. East 7 vrs. a pine brs. North 78 deg. East 4 vrs. both marked “M”: 
  
 THENCE North 217 vrs. to a stake from which a pine brs. North 32 deg. East 5 vrs. marked “B”; a pine brs: South 65 deg. East 12 12 vrs., marked
“M”: 
  
 THENCE East 651 vrs. to a stake from which a
pine brs. North 17 deg. West 15 vrs. marked “B” a pine brs. South 44 deg. West 5 vrs, marked “M”: 
  
 THENCE South 217 vrs. to the Point of Beginning, containing 25 acres, more or less, and being the same land as that described in deed from L. L. Maroney
to John Bricker, said deed dated 3/5/1877, and recorded in Vol. Y, page 546, Deed Records, Cass County, Texas; 
  
 Also being a portion of the SECOND TRACT described in that certain Deed of Trust dated the 18th day of August, 1978, from Michael Clyde Taylor et ux Loye
Jan Taylor to The First National Bank of Atlanta, Texas, recorded Vol. 163, page 714, Deed of Trust records, Cass County, Texas. 
  
 Said 9.0 acres, more or less, being the same land described in a deed dated 12/15/78, recorded in Vol. 618, page 118, Deed Records of Cass County, Texas,
from Michael Clyde Taylor, et ux, to Clyde E. Glass, Jr. 
  

  
 SCHEDULES TO EXHIBIT OMITTED

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]