Document:

Indemnification Agreement

 EXHIBIT 10.6 
 INDEMNIFICATION AGREEMENT 
 THIS INDEMNIFICATION AGREEMENT (this “Agreement”)
is entered into effective as of July 15, 2005 by and between EMERGYSTAT, INC., a Mississippi corporation, EMERGYSTAT OF SULLIGENT, INC., an Alabama corporation, EXTENDED EMERGENCY MEDICAL SERVICES, INC., an Alabama corporation, MED EXPRESS
OF MISSISSIPPI, LLC, a Mississippi limited liability company (collectively, “Emergystat”), BAD TOYS HOLDINGS, INC., a Nevada corporation (“Bad Toys”) (in this Agreement, Emergystat and Bad Toys shall
be referred to collectively as “Indemnitor”), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, aka GE COMMERCIAL FINANCE HEALTHCARE FINANCIAL SERVICES CF (“Indemnitee”). 
 RECITALS 
  

			
	FIRST:	  	Pursuant to that certain Loan And Security Agreement dated as of April 30, 2003, between Indemnitee, as lender, and Indemnitor, as borrower, as modified by a series of written forbearance and
other agreements (collectively, “Existing Loan Documentation”), Indemnitee provides a revolving credit facility to Indemnitor.
		
	SECOND:	  	In early Fall 2004, Indemnitee learned that Indemnitor was engaging in some type of business arrangement with Quality Care Ambulance Service, Inc., and Quality Transportation Services, Inc.
(collectively, “Quality Care”) and/or Southland Health Services, Inc., and/or related entities (collectively, “Southland”) whereby, among other things, Quality Care or Southland provides ambulance
services to certain geographical areas and Indemnitor performs the actual billing for such services. This results in accounts receivable being generated in which Indemnitor holds no interest.
		
	THIRD:	  	Promptly after becoming aware of Indemnitor’s arrangement with Quality Care/Southland, Indemnitee required, and Indemnitor expressly agreed, that to the extent Indemnitor comes into
possession of any accounts receivable or proceeds therefrom that are not owned by Indemnitor (including, but not limited to, any such property that is owned by Southland or Quality Care), Indemnitor will strictly segregate and keep all such
non-Indemnitor funds separate from Indemnitor’s accounts receivable and proceeds therefrom, and all non-Indemnitor funds will be maintained at all times in bank or other accounts that are separate from any bank or other accounts which contain
accounts receivable or proceeds therefrom of Indemnitor.
		
	FOURTH:	  	In April 2005, Pacific Capital commenced the Pacific Capital Lawsuit against Indemnitor and Indemnitee, alleging, among other things, that Pacific Capital is a secured creditor of Quality
Care and that Pacific Capital holds security interests senior to Indemnitee in Quality Care’s accounts receivables. Although Indemnitee has never claimed an interest in any of Quality Care’s property, Indemnitee, as a named defendant in
the Pacific Capital Lawsuit, has incurred, and continues to

			
		  	incur, costs and expenses, including, but not limited to, attorneys’ fees, on account of and relating to the Pacific Capital Lawsuit.
		
	FIFTH:	  	One of the conditions of Indemnitee’s continued forbearance from exercising it rights under the Existing Loan Documentation is the execution and delivery of this Agreement by Indemnitor
to Indemnitee. This Agreement is the Indemnification Agreement referenced in that certain Forbearance Agreement No. 2, dated as of July 15, 2005, between Indemnitor and Indemnitee.

 NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, Indemnitor and Indemnitee hereby agree as follows: 
 1. Recitals. Each entity constituting Indemnitor hereby acknowledges
that all of the Recitals stated above are true and accurate. By this reference, the above Recitals are incorporated into and made a part of the body of this Agreement. 
 2. Definitions. All capitalized terms used herein shall have the meanings ascribed to them in the above Recitals or in the remainder of this Agreement. In addition, the following capitalized terms shall
have the meanings set forth below: 
 2.1 “Expenses” means (i) any and all expenses (including, but not limited to,
attorneys’ fees, travel expenses, fees of experts, transcript costs, filing fees, witness fees,) and (ii) any and all other costs, expenses and obligations of any other nature whatsoever (including but not limited to judgments, fines,
penalties, all settlement amounts, all amounts with respect to establishing or enforcing a right to indemnification under this Agreement, applicable law or otherwise), paid or incurred by Indemnitee in connection with or in any way relating to
investigating, preparing to defend, defending, responding to, being a witness in, participating in (including on appeal): (a) the Pacific Capital Lawsuit, (b) any Proceeding based on the same or similar set of facts as alleged in the Pacific Capital
Lawsuit (whether or not commenced by Pacific Capital), and (c) any Proceeding arising out of or relating to Indemnitor’s relationships with Quality Care or Southland. 
 2.2 “Loss” means any and all amounts which Indemnitee is or becomes legally obligated to pay as a result of or in connection with
a claim or claims made against Indemnitee in (a) the Pacific Capital Lawsuit, (b) any Proceeding based on the same or similar set of facts as alleged in the Pacific Capital Lawsuit (whether or not commenced by Pacific Capital), and (c) any
Proceeding arising out of or relating to Indemnitor’s relationships with Quality Care or Southland, including, but not limited to, amounts for damages, judgments, fines, losses, interest, awards, settlements, penalties, diminutions of value of
any kind or character. 
 2.3 “Pacific Capital” means Pacific Capital, L.P., a Delaware limited partnership.

 2.4 “Pacific Capital Lawsuit” means Case No. 2:05CV103 pending in the United States District Court, Eastern
District at Greeneville, Tennessee, captioned as Pacific Capital, L.P. v. Emergystat, Inc., et al, and any other state or federal proceeding based on the same or similar factual allegations. 
  

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 2.5 “Proceeding” means any threatened, pending, or completed action, suit,
self-help action by a third party, proceeding or alternative dispute resolution mechanism, or any hearing, inquiry, or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit, self-help action,
proceeding, hearing, or alternative dispute resolution mechanism, whether civil, criminal, judicial, administrative, investigative or otherwise, including, but not limited to, the Pacific Capital Lawsuit. 
 3. Indemnification. Indemnitor shall indemnify and hold harmless Indemnitee and its successors, endorsees, transferees, affiliates, and assigns
(collectively encompassed, for purposes of the indemnification by Indemnitor set forth in this Agreement, by references to “Indemnitee”) for any and all Expenses and Losses suffered or incurred by Indemnitee.
Indemnitor’s agreement to so indemnify and hold harmless Indemnitee is unconditional. 
 4. Joint and Several. The term
“Indemnitor” as used in this Agreement shall mean all parties constituting Indemnitor, and each one of them, and all such parties, and their respective successors and assigns, shall be jointly and severally obligated hereunder. All
obligations of Indemnitor under this Agreement shall be joint and several obligations. 
 5. Indemnification Procedures. 
 5.1 Prior to this Agreement. Indemnitor hereby acknowledges and agrees that prior to this Agreement: (i) Indemnitee and Indemnitor had
agreed that Indemnitor would indemnify Indemnitee for all Expenses and Losses incurred by Indemnitee, (ii) the amounts of such Expenses and Losses have been added to the outstanding principal balance of the Obligations, as that term is defined in
the Existing Loan Documentation “Obligations”, and (iii) all such Expenses and Losses (a) constitute Obligations, and (b) are secured by all of the collateral securing the Obligations. Indemnitor has been informed by
Indemnitee of all such amounts added to the outstanding principal balance of the Obligations prior to the date hereof and consents to the same. 
 5.2 Post Agreement but Prior to Payoff. Subject to Section 5.3 below, from and after the date of this Agreement: (i) all Expenses and Losses incurred by Indemnitee shall constitute Obligations, (ii) all such Expenses and
Losses shall be secured by all of the collateral securing the Obligations, and (iii) the amounts of such Expenses and Losses shall be added to the outstanding principal balance of the Obligations. Indemnitee shall inform Indemnitor of such amounts
as they are so added to the outstanding principal balance of the Obligations. 
 5.3 After Obligations Paid In Full. After (i)
Indemnitee has received indefeasible payment in full of all of the Obligations, and (ii) the Existing Loan Documentation has terminated as well as any obligation of Indemnitee thereunder to extend credit to Indemnitor: As soon as practicable after
written demand by Indemnitee, but in no event later than ten (10) days after the date of any written demand by Indemnitee presented to Indemnitor, Indemnitor shall pay to Indemnitee, in immediately available funds pursuant to the wire transfer
instructions set forth in such written demand, an amount equal to the amount of Expenses and Losses incurred by Indemnitee for which indemnification is demanded. Indemnitee may from time to time make demands on Indemnitor for indemnification but not
more frequently than monthly. 
  

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 6. Non-Exclusivity. The rights of Indemnitee hereunder shall be in addition to, and not in place of, any
other rights Indemnitee may have under the Existing Loan Documentation, applicable law, or otherwise. Nothing contained in this Agreement shall be construed to provide that the rights of Indemnitee hereunder are exclusive of any other rights to
which Indemnitee may be entitled under the Existing Loan Documentation, applicable law, or otherwise. 
 7. Enforcement. In any action for
indemnification, the burden of proving that indemnification is not required under this Agreement shall be on the Indemnitor. In the event that any action is commenced by Indemnitee under this Agreement, or to enforce or interpret any of the terms of
this Agreement, Indemnitee shall be entitled to be paid all of its costs and expenses incurred in connection therewith, including, but not limited to, attorneys’ fees. 
 8. Selection of Counsel. Indemnitee may select, retain, and employ counsel of its choosing to represent Indemnitee in connection with (a) the Pacific Capital Lawsuit, (b) any Proceeding based on the same
or similar set of facts as alleged in the Pacific Capital Lawsuit (whether or not commenced by Pacific Capital), and (c) any Proceeding arising out of Indemnitor’s relationships with Quality Care or Southland. Indemnitee’s choice of
counsel shall in no way affect the indemnity obligations of Indemnitor under this Agreement. 
 9. Reinstatement. Indemnitor agrees that to the
extent Indemnitor makes any payment to Indemnitee pursuant to this Agreement, and all or any part of such payment is subsequently invalidated, declared to be fraudulent or preferential, set aside, or required to be repaid by Indemnitee or paid over
to a trustee, receiver, or any other entity, whether under any bankruptcy law or otherwise (any such payment is hereinafter referred to as a “Preferential Payment”), then this Agreement will continue to be effective or will
be reinstated, as the case may be, and, to the extent of such payment or repayment by Indemnitee, Indemnitor’s indemnity obligations hereunder or part thereof intended to be satisfied by such Preferential Payment shall be revived and continued
in full force and effect as if said Preferential Payment had not been made. 
 10. No Effect on Existing Loan Documentation. This Agreement
does not, and shall not be construed to, affect, modify, or limit in any way the terms and provisions of, or waive any right or remedy contained in any of the Existing Loan Documentation, or the rights and remedies of Indemnitee thereunder.
Indemnitor acknowledges and agrees that the Existing Loan Documentation, as expressly modified by this Agreement, all continue in full force and effect, and Indemnitee retains all of its rights and remedies under the Existing Loan Documentation and
otherwise. 
 11. Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY (I) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY OF
ANY ISSUE TRIABLE OF RIGHT BY A JURY, AND (II) WAIVES ANY RIGHT TO A TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY THE UNDERSIGNED, AND
THIS WAIVER IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A JURY TRIAL WOULD OTHERWISE ACCRUE. ANY PARTY TO THIS AGREEMENT IS AUTHORIZED TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE
SUBJECT MATTER AND THE PARTIES HERETO, 

  

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SO AS TO SERVE AS CONCLUSIVE EVIDENCE OF THE UNDERSIGNED’S WAIVER OF THE RIGHT TO JURY TRIAL. 
 12. Consent to Jurisdiction. IF ANY ACTION ARISING OUT OF THIS AGREEMENT IS COMMENCED BY INDEMNITEE IN THE STATE COURTS OF THE STATE OF MARYLAND OR IN THE
U.S. DISTRICT COURT FOR THE DISTRICT OF MARYLAND, INDEMNITOR HEREBY IRREVOCABLY CONSENTS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH ACTION AND TO THE LAYING OF VENUE IN THE STATE OF MARYLAND. FURTHER INDEMNITOR AND INDEMNITEE EACH HEREBY
IRREVOCABLY CONSENT TO THE JURISDICTION OF THE COURTS OF THE STATE OF MARYLAND FOR ALL PURPOSES IN CONNECTION WITH ANY ACTION OR PROCEEDING WHICH ARISES OUT OF OR RELATES TO THIS AGREEMENT AND AGREE THAT ANY ACTION INSTITUTED UNDER THIS AGREEMENT
SHALL BE COMMENCED, PROSECUTED AND CONTINUED ONLY IN THE STATE OF MARYLAND, WHICH SHALL BE THE EXCLUSIVE AND ONLY PROPER FORUM FOR ADJUDICATING SUCH A CLAIM. 
 13. General. 
 13.1 Notices. Any notice or other communication required or permitted under this
Agreement shall be in writing and personally delivered, mailed by registered or certified mail (return receipt requested and postage prepaid), sent by telecopy (with a confirming copy sent by regular mail), sent by e-mail, or sent by prepaid
overnight courier service, and addressed to the relevant party at its address set forth below, or at such other address as such party may, by written notice, designate as its address for purposes of notice under this Agreement: 
  

			
	If to Indemnitee:	  	General Electric Capital Corporation
		  	a/k/a GE Commercial Finance Healthcare Financial
		  	Services, CF
		  	2 Bethesda Metro Center, #600
		  	Bethesda, MD 20814
		  	Attention: Michael Gardullo
		  	Telephone: (301) 664-9850
		  	Telecopier: (301) 347-3150
		  	E-Mail: michael.gardullo@ge.com
		
	If to Indemnitor	  	Bad Toys Holdings, Inc.
		  	3520 Orebank Rd.
		  	Kingsport TN 37664
		  	Attention: Larry Lunan
		  	Telephone: (423) 2479560
		  	Telecopier: (423) 2477629
		  	E-Mail: larrylunan@charter.net

 If mailed, notice shall be deemed to be given three (3) days after being sent, and if sent by
personal delivery, telecopier, prepaid courier, or e-mail notice shall be deemed to be given when 

  

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delivered. Any party may designate a change of address by notice in writing to the other parties, such notice to be effective ten (10) days after mailing or
delivery as provided in this Section. 
 13.2 Amendment. This Agreement may be amended or modified only explicitly in a writing
signed by all parties to this Agreement. 
 13.3 Termination. This Agreement may be terminated or cancelled only explicitly in
a writing signed by Indemnitee. 
 13.4 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of Indemnitor and Indemnitee and their respective successors and assigns, provided however that, Indemnitor may not assign its obligations under this Agreement without the prior written consent of Indemnitee. 
 13.5 Governing Law. This Agreement shall be governed by and construed in accordance with the substantive laws of the State of Maryland,
without regard to any otherwise applicable principles of conflicts of laws. 
 13.6 Severability. If any provision or
application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications which can be given effect and this Agreement shall be construed as if the unlawful
or unenforceable provision or application had never been contained in this Agreement or prescribed by this Agreement. 
 13.7
Interpretation; Headings. No provision of this Agreement shall be interpreted or construed against any party because that party or its legal representative drafted that provision. Each of the parties hereto shall be deemed to have
drafted this Agreement. The rule of law that provides that ambiguities, inconsistencies and the like shall be construed against the author of a document or contract shall not apply to this Agreement. The titles of the Sections of this Agreement are
for convenience of reference only and are not to be considered in construing this Agreement. Any pronoun and defined term used in this Agreement shall be deemed to include singular and plural and masculine, feminine and neuter gender as the case may
be. The words “herein,” “hereinabove,” “hereof,” and “hereunder” shall be deemed to refer to this entire Agreement, except as the context otherwise requires. 
 13.8 Integration and Entire Agreement. This Agreement sets forth the entire understanding between the parties hereto and supersedes and
merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto. 
 13.9 Authorized. This Agreement has been duly and validly authorized by all necessary action on the part of all parties hereto. 
 13.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, but which
counterparts together shall constitute but one and the same instrument. The telecopied signature of a person shall be deemed the original signature of that person and shall be binding for all purposes. 
  

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 THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY 
 SIGNATURES FOLLOW ON THE NEXT PAGE 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and 
 year first above written. 
  

									
	INDEMNITEE	 		 	INDEMNITOR
			
	GENERAL ELECTRIC CAPITAL	 		 	EMERGYSTAT, INC., A MISSISSIPPI
	CORPORATION, A DELAWARE	 		 	CORPORATION
	CORPORATION, aka GE CAPITAL	 		 	
	COMMERCIAL FINANCE	 		 	 By:
	 	 

	HEALTHCARE FINANCIAL SERVICES	 		 	 Title
	 	  
	CF	 		 	
				
	By:	 	  	 		 	EMERGYSTAT OF SULLIGENT, INC.,
	 Title
	 	  	 		 	AN ALABAMA CORPORATION
					
		 		 		 	 By:
	 	 

		 		 		 	 Title
	 	  
				
		 		 		 	EXTENDED EMERGENCY SERVICES,
		 		 		 	INC., AN ALABAMA CORPORATION
					
		 		 		 	 By:
	 	 

		 		 		 	 Title
	 	  
				
		 		 		 	MED EXPRESS OF MISSISSIPPI, LLC, A
		 		 		 	MISSISSIPPI LIMITED LIABILITY COMPANY
					
		 		 		 	 By:
	 	 

		 		 		 	 Title
	 	  
				
		 		 		 	BAD TOYS HOLDINGS, INC., A NEVADA
		 		 		 	CORPORATION
					
		 		 		 	 By:
	 	 

		 		 		 	 Title:
	 	  

  

 Page 8Forbearance Agreement No. 3

 Exhibit 10.7 
 FORBEARANCE AGREEMENT NO. 3 
 THIS FORBEARANCE AGREEMENT No. 3 (this
“Agreement”) is made and entered into as of September 1, 2005 by and among EMERGYSTAT, INC., a Mississippi corporation, EMERGYSTAT OF SULLIGENT, INC., an Alabama corporation, EXTENDED EMERGENCY MEDICAL SERVICES, INC., an
Alabama corporation, MED EXPRESS OF MISSISSIPPI, LLC, a Mississippi limited liability company (collectively, “Borrower”), BAD TOYS HOLDINGS, INC., a Nevada corporation (“Parent”), GENERAL ELECTRIC
CAPITAL CORPORATION, a Delaware corporation, aka GE COMMERCIAL FINANCE HEALTHCARE FINANCIAL SERVICES CF (“CF”), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, aka GE COMMERCIAL FINANCE HEALTHCARE FINANCIAL
SERVICES EF (“EF”) (collectively, CF and EF and their successors, endorsees, transferees, affiliates, and assigns are referred to as “GECC”). 
  

			
	RECITALS
		
	FIRST:	  	Borrower, Parent, and GECC are parties to that certain Restructuring Agreement, dated as of March 18, 2005, as amended by that certain Amendment No. 1 To Restructuring Agreement, dated as of
April 29, 2005 (as amended, the “Restructuring Agreement”).
		
	SECOND:	  	Borrower has been in default under the CF Documents for an extensive period of time pursuant to Existing Defaults (as that term is defined in the Forbearance Agreements) and other matters stated
in the Forbearance Agreements, and interest is accruing, and continues to accrue at the Default Rate as defined in Section 1.16 of the Loan Agreement. Borrower continues to be in default under the EF Documents on account of the Emergystat Stock
Purchase.
		
	THIRD:	  	In addition, Borrower has failed to pay a significant portion of its payroll taxes due in May 2005, and has failed to any payroll taxes due in June 2005, July 2005, and the first two weeks of
August (collectively, the “2005 Unfunded Payroll Taxes”). Such failure constitutes an Event of Default (the “2005 Tax Default”). Schedule 1, attached hereto and by this reference made a part
hereof, sets forth, among other things, a complete and accurate list of all 2005 Unfunded Payroll Taxes.
		
	FOURTH:	  	The CF Documents require Borrower to notify CF promptly if an Event of Default occurs or an event that, with the giving of notice or lapse of time, or both, could constitute an Event of
Default.
		
	FIFTH:	  	Borrower failed to notify CF of the 2005 Unfunded Payroll Taxes for June, July, and August notwithstanding CF’s repeated requests for written verification that payroll taxes were being paid
current. Further, Borrower failed to notify CF that Borrower did not pay all of the May 2005 payroll taxes even though, as part of CF’s substantial and extensive financial accommodations to Borrower, CF had agreed to Borrower’s request not
to require a reduction in the amount of the CF

			
		  	Obligations at the end of July 2005 in order to facilitate Borrower’s payment of May 2005 payroll taxes. It was not until the week of August 15, 2005, that Lender learned of this and the
existence of the 2005 Unfunded Payroll Taxes.
		
	SIXTH:	  	CF has made substantial and extensive financial accommodations to Borrower under the terms and conditions of the Forbearance Agreements, the Tri-Party Agreement, and the Restructuring
Agreement. EF also has accommodated Borrower’s requests to forbear under the terms and conditions of the Restructuring Agreement.
		
	SEVENTH:	  	The forbearance period with respect to both the EF Obligations and the CF Obligations expired on August 31, 2005.
		
	EIGHTH:	  	In light of the expiration of the forbearance period, the continued existence of the Existing Defaults, the 2005 Tax Default, and Borrower’s failure to comply with the terms and
conditions of the Forbearance Agreements and the Restructuring Agreement: (i) GECC has no obligation of any kind to provide further funding or financial accommodations to Borrower under the GECC Documents or otherwise, (ii) GECC is entitled to
declare the CF Obligations and the EF Obligations immediately due and payable, and (iii) GECC is entitled to exercise immediately its rights and remedies against Borrower and the Consolidation Note Collateral pursuant to any and all of the GECC
Documents and applicable law on account of the Existing Defaults and the 2005 Tax Default.
		
	NINTH:	  	Borrower and Parent have represented to GECC that: (i) discussions between Parent and Barron Partners LP regarding an offering of equity in Parent continue and are contemplated to conclude
next week, (ii) Parent plans to use the proceeds of such equity offering to pay the Unfunded Payroll Taxes, related penalties, and the 2005 Unfunded Payroll Taxes, (iii) Borrower continues to make progress toward obtaining refinancing from Meridian
Commercial Healthcare Finance sufficient to pay in full the CF Obligations and the EF Obligations, (iv) Borrower continues to work diligently with the IRS to resolve the Enforcement Notice, as well as the Unfunded Payroll Taxes, and (v) Johnny Glenn
Crawford has threatened to evict Borrower from its corporate headquarters.
		
	TENTH:	  	Borrower is asking GECC to continue to forbear from exercising its collection and other rights, and to continue to make advances under the CF Documents. GECC is willing to agree to this
request by Borrower but only under the terms and conditions set forth in this Agreement.

 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in consideration of the premises and agreements, provisions and covenants herein contained, each of Borrower, Parent, and GECC agrees as follows: 
 1. Definitions. Unless otherwise defined in this Agreement or in the above Recitals, all capitalized terms used herein shall have the meanings ascribed to them in the Forbearance Agreements and the
Restructuring Agreement as applicable. In addition, the following capitalized terms shall have the meanings set forth below: 
 1.1
“Existing Defaults” means (i) all Existing Defaults (as that term is defined in the Forbearance Agreements) and defaults with respect to other matters stated in the Forbearance Agreements, and (ii) the 2005 Tax
Default. 
  

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 1.2 “Forbearance Agreements” means all of the forbearance letter agreements
between CF and Borrower identified and set forth in Schedule “2” attached hereto. 
 1.3 “GECC
Documents” means all of the CF Documents, the EF Documents, the Consolidation Note, the Forbearance Agreements, the Restructuring Agreement, the Tri-Party Agreement, and all notes, loan agreements, security agreements, guaranties, deeds
of trust, and other instruments and documents, executed and delivered in connection therewith in favor of CF and/or EF, whether such documents and instruments are now existing or hereafter created, as the same have been and may be further amended,
replaced, supplemented or otherwise modified from time to time, including but not limited to the Restructuring Agreement. 
 1.4
“Pacific Capital Lawsuit” means Case No. 2:05CV103 pending in the United States District Court, Eastern District at Greeneville, Tennessee, captioned as Pacific Capital, L.P. v. Emergystat, Inc., et al; and
any other state or federal proceeding based on the same or similar factual allegations. 
 2. Recitals. Each of Borrower and Parent hereby
acknowledges that all of the Recitals stated above are true and accurate, and by this reference are incorporated into and made a part of the body of this Agreement. 
 3. Limited Forbearance. Subject to all of the provisions of this Agreement, GECC will forbear from exercising its rights and remedies under the GECC Documents and otherwise with respect to the Existing
Defaults and the Enforcement Notice Default, and subject to the terms and conditions of the CF Documents, CF will continue to make advances to Borrower, from September 1, 2005, through September 30, 2005 (the “Extended
Forbearance Period”) if, and only if, each and all of the following are satisfied timely and continue to be satisfied: 
 3.1
Scheduled Mandatory Payments Under Consolidation Note. 
 3.1.1 On or before September 30, 2005, Borrower shall pay to
GECC, and Parent shall cause Borrower to pay to GECC, and GECC shall have received payment in full, in immediately available funds, of the entire amount of both the CF Obligations and the EF Obligations, as determined by CF and EF and in accordance
with the GECC Documents. Such payment shall permanently reduce such obligations, and upon receipt of such payment in full CF shall have no further obligation to make advances or otherwise extend credit to Borrower. 
 3.1.2 Borrower shall continue to make regularly scheduled payments when due to GECC with respect to the EF Obligations until such time when GECC shall
have received payment in full of the entire amount of the EF Obligations, and nothing contained in this Agreement shall be construed to excuse or extend the time or times when such regularly scheduled payments are due. 
  

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 3.2 Crawford Relationship Status Reports. 
 3.2.1 Lease. Upon execution and delivery of this Agreement, Borrower shall deliver to Lender: (i) a true and complete (including all
exhibits, schedules, and other attachments) copy of the fully executed lease between Borrower, as lessee, and Johnny Glenn Crawford (“Crawford”) or an entity controlled by Crawford, as lessor, of Borrower’s corporate
headquarters located at 126 Emergystat Loop, Vernon, Alabama 35592 (the “Headquarters Lease”), and (ii) all amendments, modifications, replacements, extensions and other agreements in any way affecting the Headquarters
Lease. 
 3.2.2 Status Reports. Upon execution and delivery of this Agreement and continuing on each Monday thereafter,
Borrower shall deliver to GECC, in form, content, and detail satisfactory to GECC, (i) a written report (executed and certified by Borrower’s authorized representatives) describing any and all actions, communications (both verbal and
written), negotiations with Crawford during the previous week regarding the Headquarters Lease and the overall relationship between Borrower and Crawford, and (ii) true and complete copies (executed and certified by Borrower’s authorized
representatives) of all correspondence and other documentation exchanged between Borrower and Crawford including, but not limited to, all eviction notices, threats of eviction, and legal actions commenced or threatened by Crawford. 
 3.3 Guarantor Consent. Upon execution and delivery of this Agreement by Borrower to GECC, Borrower shall deliver to GECC the Consent And
Agreement Of Guarantor form attached this Agreement duly executed by Parent. 
 3.4 Lawsuit Status Reports. Commencing on
Tuesday, September 6, 2005, and continuing on each Monday thereafter, Borrower shall deliver to GECC, in form, content, and detail satisfactory to GECC, written reports (executed and certified by Borrower’s authorized representatives)
describing any and all actions, communications, negotiations with Pacific Capital, L.P. regarding the Pacific Capital Lawsuit during the previous week, including but not limited to, any settlement proposals, proposed motions, dismissal discussions,
and discussions regarding GECC as a defendant in the Pacific Capital Lawsuit. 
 3.5 Current Payroll Taxes. Commencing on
September 1, 2005, and continuing thereafter: (i) without exception Borrower shall pay timely and in full each and every payroll tax amount when due, and (ii) within one (1) Business Day of each such payroll tax payment made,
shall deliver to CF written confirmation (in form, substance, and detail satisfactory to CF, and executed and certified by authorized representatives of Borrower) of each such payroll tax payment made, including, but not limited to, the amount, date
paid, and taxing authority. Each of Borrower and Parent hereby acknowledges and agrees that any failure by Borrower to perform fully and continuously under this Section 3.5 shall constitute an automatic Event of Default hereunder and
under the CF Documents and shall automatically terminate the Extended Forbearance Period, all without the need for any further notice or declaration of any kind by CF. 
  

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 3.6 Incorporation Of GECC Documents. During the Extended Forbearance Period, and unless
expressly modified in this Agreement, Borrower shall comply with and satisfy, and shall continue to comply with and satisfy, all terms, conditions, and requirements of the GECC Documents, all without any waiver of or other effect upon GECC’s
continuing rights thereunder and otherwise. 
 3.7 Resolution Of The Enforcement Notice. With respect to the Enforcement Notice
(as defined in the Twentieth Forbearance Agreement), and in order to confirm the status of the Enforcement Notice and that Borrower is using its best efforts to resolve the Enforcement Notice, Borrower agrees to do the following: (i) continue
to deliver to CF copies of any documents related to the Enforcement Notice, including, but not limited to, all communications between Borrower and the IRS regarding the Enforcement Notice, with such copies to be delivered to CF simultaneously with
their submission by or delivery to Borrower, (ii) arrange for a teleconference(s) between Borrower, an authorized representative of the IRS, and CF to be held at such date(s) and time(s) reasonably requested by CF, to discuss the Enforcement
Notice, (iii) hereby expressly authorizes CF to contact the IRS directly regarding the Enforcement Notice; and (iv) commencing on Friday, September 2, 2005, and on each Friday thereafter, to deliver to CF a detailed written report, in
form, content, and detail satisfactory to CF (executed and certified by Borrower’s authorized representatives) describing the status of the Enforcement Notice and the Unfunded Payroll Taxes, all appeals, offers, or other actions Borrower has
taken with respect to such matters, and of any response(s) or other communications Borrower has received from the IRS. Borrower understands, acknowledges, and agrees that if the IRS takes any action against Borrower or its assets at any time with
respect to the Enforcement Notice or otherwise, GECC shall have no obligation to forbear from exercising, and GECC shall be entitled to exercise immediately, all of its rights and remedies under the Loan Agreement, the other GECC Documents, and this
Agreement. 
 3.8 Continuing Obligations Regarding Unfunded Payroll Taxes. Borrower’s obligations regarding the
Enforcement Notice in Section 3.7 above are in addition to Borrower’s continuing obligation to comply with and satisfy all terms of the Forbearance Agreements regarding the Unfunded Payroll Taxes, all of which remain in full force
and effect. In addition to the foregoing, the non-compliance fee in the amount of $5,000 per week provided for in paragraph C.4. of the Fourteenth Forbearance Agreement will continue to accrue during the Extended Forbearance Period, and each such
fee will be fully earned and due and payable in full by Borrower to CF on September 5, 2005, and continuing on each Monday thereafter, so long as Borrower has not obtained the release of any and all liens asserted by the IRS against Borrower,
and delivered the same to GECC and all accrued and unpaid amounts of the non-compliance fee shall constitute part of the CF Obligations owing from Borrower to CF. In addition to all of the foregoing, Borrower will continue to comply with all
requirements of the Forbearance Agreements regarding the Unfunded Payroll Taxes. 
 3.9 Lockbox Compliance. On or before
September 5, 2005, CF will receive from Borrower, in form, content, and detail satisfactory to CF, written confirmation from Borrower (executed and certified by Borrower’s authorized representatives) evidencing and certifying that Borrower
is in full compliance with the lockbox provisions of Section 2.3 of the Loan Agreement, and that all payors of Borrower’s Accounts (including, but not limited to, any and all 
  

 - 5 - 

 governmental authorities, fiscal intermediaries, and persons or entities acting on their behalf who are payors of
Medicare or Medicaid Accounts) are depositing, and will continue to deposit, one hundred percent (100%) of the proceeds of any and all Accounts (the “Accounts Proceeds”) directly into the Lockbox Account(s). During the
Extended Forbearance Period, i.e., from September 1, 2005 through September 30, 2005, and without altering or affecting in any way any of the foregoing duties and obligations of Borrower, Borrower will deposit one hundred percent
(100%) of the Accounts Proceeds received by Borrower directly into the Lockbox Account(s) within twenty-four (24) hours of their receipt by Borrower, and on each Monday commencing on September 5, 2005, and continuing on each Monday
thereafter, Borrower will deliver to CF, in form, content, and detail satisfactory to CF, written reports from Borrower (executed and certified by Borrower’s authorized representatives) evidencing and certifying that, during each previous week,
one hundred percent (100%) of the Accounts Proceeds were deposited directly in the Lockbox Account(s) by payors of Borrower’s Accounts. 
 3.10 Segregation Of Borrower’s Accounts. To the extent Borrower has or comes into possession of any accounts receivable, other rights to payment, or proceeds therefrom that are not owned by Borrower (including, but not
limited to, any such property that is owned by Southland or Quality Care as described below) (“Non-Borrower Funds”), Borrower shall strictly segregate and keep all such Non-Borrower Funds separate from Borrower’s
Accounts and Accounts Proceeds, and all Non-Borrower Funds shall be maintained at all times in bank or other accounts that are separate from any bank or other accounts which contain Accounts or Accounts Proceeds of Borrower. Without limiting the
foregoing in any way, Borrower also will deliver to CF bank statements from any accounts controlled or administered by Borrower into which proceeds of any accounts receivable or other rights to payment of Quality Care and or Southland are deposited
(“Quality Care/Southland Bank Accounts”), so that CF can confirm that all such property of Quality Care/Southland is strictly segregated from Borrower’s Accounts and Accounts Proceeds. On each Monday commencing on
September 5, 2005, and continuing on each Monday thereafter, Borrower will deliver to CF written confirmation, in form, content, and detail satisfactory to CF (executed and certified by Borrower’s authorized representatives) evidencing and
certifying that Borrower has fully satisfied all requirements of this Section 3.10 (including, but not limited to, the delivery to CF of bank statements regarding Quality Care/Southland as provided above). Any failure by Borrower to
comply with the terms of this Section 3.10 shall constitute an Event of Default under the Loan Agreement. The requirements of this Section 3.10 do not alter or affect in any way Borrower’s obligation to comply with the
lockbox and other provisions of the Loan Agreement, the other GECC Documents, and this Agreement, regarding Accounts and Accounts Proceeds of Borrower. 
 3.11 Weekly Reports. On each Monday commencing on September 5, 2005, and continuing on each Monday thereafter, Borrower will deliver to CF in form, content, and detail satisfactory to CF, written
reports from Borrower (executed and certified by Borrower’s authorized representatives): 
 3.11.1 Describing any and all actions,
communications, negotiations, and other developments regarding the Unfunded Payroll Taxes and/or the Enforcement Notice during the previous week, including, without limitation, any and all communications and negotiations with the IRS that relate to
any of the foregoing, in order to assure GECC of Borrower’s continuing best efforts to arrange for and resolve such matters; 
  

 - 6 - 

 3.11.2 Updating Borrower’s progress with respect to refinancing from Meridian; 
 3.11.3 Updating status of Parent’s equity offering to Baron Partners LP; and 
 3.11.4 Updating each of the information and document requirements stated in this Agreement. 
 All such written reports must be delivered to CF via overnight courier to the attention of Michael Gardullo. 
 3.12 Cash Flow Budget. On each Monday commencing on September 5, 2005, and continuing on each Monday thereafter, Borrower will deliver
to CF, in form, content, and detail satisfactory to CF, a rolling twelve (12) week cash flow budget (the “Budget”). The Budget shall include a certification (executed and certified by Borrower’s authorized
representatives) evidencing and certifying that Borrower has performed in accordance with the Budget during the preceding week. 
 3.13
Bank Statements. Borrower shall deliver to CF on each Monday commencing on September 5, 2005, and continuing on each Monday thereafter, any and all bank statements and “teller statements” for any bank accounts maintained
by Borrower, including, but not limited to, the Lockbox Account(s), and any Quality Care/Southland Bank Accounts. 
 Upon any failure by Borrower or Parent,
as applicable, to perform and satisfy fully and to continue to perform and satisfy fully the obligations set forth in Sections 3.1 through 3.13 above, (i) GECC may, in GECC’s sole discretion, without further action, terminate the
Extended Forbearance Period and exercise all rights available to it under the GECC Documents, at law, and in equity, and (ii) CF may, in CF’s sole discretion, cease making advances under the CF Documents. 
 4. Application of Payments. Payments received by GECC from or on account of Borrower shall be applied in the following order: (i) first to satisfy the
CF Obligations until (y) all of the CF Obligations have been paid in full, and (z) CF has no obligation to extend any credit to Borrower under any one or more of the CF Documents, the Forbearance Agreements, or otherwise, and
(ii) second, and only after the CF Obligations have been paid in full, to satisfy the EF Obligations. 
 5. Maximum Loan Amount. In
accordance with the 7/15/05 Forbearance Agreement, as of the date of this Agreement, the Maximum Loan Amount is One Million Three Hundred Thousand And No Hundredths Dollars ($1,300,000.00). Section 2.1(a) of the Loan Agreement is hereby amended
and modified to read as follows: 
 Section 2.1. Terms. 
 (a) The maximum aggregate principal amount of credit extended by Lender to Borrower under this Agreement (the “Loan”) that will
be outstanding at any time is One Million Three Hundred Thousand And No Hundredths Dollars ($1,300,000) (the “Maximum Loan Amount”).” 
  

 - 7 - 

 6. Acknowledgements. Each entity comprising Borrower acknowledges that: (i) all amounts asserted to be
due by GECC under the Consolidation Note and the other GECC Documents are justly due and owing to GECC, without any defense of Borrower or any right of Borrower to set off, recoup, or counterclaim (and, upon acceptance of any advance(s), Borrower
waives and continues to waive any and all defenses and rights of setoff and recoupment, and releases and continues to release all claims of any kind against GECC); (ii) the GECC Documents are valid and enforceable against each entity comprising
Borrower in accordance with their respective terms, and are not subject to avoidance under applicable state law or federal law; (iii) the liens and security interests granted to GECC in the Consolidation Note Collateral pursuant to the
Restructuring Agreement and the other GECC Documents are valid, enforceable, and properly perfected, and are not subject to avoidance under applicable state law or federal law; and (iv) all of the same representations regarding validity and
enforceability of GECC’s rights and all releases of GECC shall apply with equal force to CF and EF pursuant to this Agreement. 
 7. Costs and
Expenses. GECC shall be entitled to charge and add to the amount owing by Borrower under the GECC Documents, all of GECC’s costs and expenses (including attorneys’ fees) incurred in relation to the Existing Defaults, the
Enforcement Notice Default, the GECC Documents, this Agreement, and any of the requirements stated herein. 
 8. Default and Remedies.
(i) Any failure by Parent, Borrower, or both, to perform fully and timely under this Agreement, or (ii) any representation or warranty made by Parent, Borrower, or both, in this Agreement, any financial statement, or any statement or
representation made in any other certificate, report or opinion, delivered to GECC by Parent, Borrower, or both, in connection with this Agreement proves to have been incorrect or misleading in any material respect when made, shall constitute an
event of default (“Event of Default”) hereunder and an Event of Default under and as that term is defined in any and all of the GECC Documents. In the event of an Event of Default hereunder or under any of the GECC Documents,
GECC may exercise any and all remedies available to it under this Agreement, and all of the GECC Documents, at law, and in equity. 
 9. Full Force And
Effect. Except as expressly set forth herein, this Agreement does not, and shall not be construed to, affect or limit in any way the terms and provisions of, or waive any right or remedy contained in any of the GECC Documents, or the rights
and remedies of GECC thereunder. Borrower acknowledges and agrees that the GECC Documents, as expressly modified by this Agreement, all continue in full force and effect, and GECC retains all of its rights and remedies under the GECC Documents and
otherwise. 
 10. No Waiver; Reservation of Rights. 
 10.1 Existing Defaults. Unless and only to the extent expressly provided herein, this Agreement applies only to the Existing Defaults, the Enforcement Notice Default, and the 2005 Tax Default and does
not affect or limit GECC’s rights or remedies in any way with respect to any other or future act or omission (including any breach of the terms of this Agreement by 
  

 - 8 - 

 Borrower, and further including, but not limited to, the conditions set forth herein) that may constitute a default by
Borrower, or with respect to any default or Event of Default resulting from prior acts or omissions by Borrower other than the Existing Defaults, the Enforcement Notice Default, and the 2005 Tax Default. 
 10.2 No Modification. Except as expressly stated herein, nothing in this Agreement shall be a waiver or modification of any right, power,
or remedy of GECC, nor a waiver or modification of any provision of any of the GECC Documents, and nothing in this Agreement shall be or shall be construed as any waiver of any default or Event of Default (including any default or Event of Default
arising from any of the Existing Defaults or the Enforcement Notice Default or the 2005 Tax Default), whether now existing or hereafter arising; and GECC hereby reserves all of its rights and remedies under all of the GECC Documents and applicable
law. 
 11. Releases. Each entity comprising Borrower hereby fully, finally, absolutely, and forever releases and discharges GECC and its
present and former directors, shareholders, officers, employees, agents, representatives, attorneys, successors, assigns, and affiliates, and their separate and respective heirs, personal representatives, attorneys, successors, assigns, and
affiliates, from any and all actions, causes of action, claims, debts, damages, demands, liabilities, obligations, and suits of Borrower, of whatever kind or nature, in law or equity, whether now known or unknown to Borrower, and whether contingent
or matured: (i) in respect of each and all of GECC Documents and the actions or omissions of GECC in respect of each and all of the GECC Documents, and (ii) arising from events occurring prior to the date of this Agreement. The foregoing
release and discharge shall be deemed renewed, automatically and without further action of the Borrower, as of the date of each advance of Loan proceeds under the Loan Agreement. 
 12. Miscellaneous. 
 12.1 Amendment. This Agreement may be amended or modified
only explicitly in a writing signed by all parties to this Agreement. 
 12.2 Waiver; Remedies Cumulative. A waiver signed by
GECC shall be effective only in the specific instance and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any of GECC’s rights or remedies. All rights and remedies of GECC shall be
cumulative and may be exercised singularly or concurrently, at GECC’s option, and the exercise or enforcement of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other. 
 12.3 Successors and Assigns. This Agreement shall be binding upon Parent and Borrower and their respective successors and assigns, except
that neither Parent nor Borrower may assign any of their rights or duties under this Agreement without the prior written consent of GECC. This Agreement shall be binding upon and inure to the benefit of GECC and its successors and assigns. All
representations and warranties contained in this Agreement shall survive the execution, delivery and performance of this Agreement and the payment in full of all of the obligations evidenced by the Consolidation Note. 
  

 - 9 - 

 13. Governing Law. This Agreement shall be governed by and construed in accordance with the substantive
laws (other than conflict laws) of the State of Maryland. 
 14. Severability. If any provision or application of this Agreement is held
unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications which can be given effect and this Agreement shall be construed as if the unlawful or unenforceable provision or
application had never been contained in this Agreement or prescribed by this Agreement. 
 15. Interpretation; Headings. No provision of this
Agreement shall be interpreted or construed against any party because that party or its legal representative drafted that provision. Each of the parties hereto shall be deemed to have drafted this Agreement. The rule of law that provides that
ambiguities, inconsistencies and the like shall be construed against the author of a document or contract shall not apply to this Agreement. The titles of the Sections of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement. Any pronoun used in this Agreement shall be deemed to include singular and plural and masculine, feminine and neuter gender as the case may be. The words “herein,” “hereinabove,”
“hereof,” and “hereunder” shall be deemed to refer to this entire Agreement, except as the context otherwise requires. 
 16.
Authorized. This Agreement has been duly and validly authorized by all necessary action on the part of all parties hereto. 
 17.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, but which counterparts together shall constitute but one and the same instrument. 
 THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY 
  

 - 10 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above
written. 
  

							
	“CF”	 	“BORROWER”
		
	GENERAL ELECTRIC CAPITAL	 	EMERGYSTAT, INC, A MISSISSIPPI
	CORPORATION, A DELAWARE	 	CORPORATION
	CORPORATION, aka GE CAPITAL	 		 	
	 COMMERCIAL FINANCE
 HEALTHCARE
FINANCIAL SERVICES
	 	By:	 	 /s/ Larry N. Lunan

	CF	 	Title	 	 President

				
	By:	 	 Michael Gardullo
	 		 	
	Title:	 	 Senior Vice President
	 	 EMERGYSTAT OF SULLIGENT, INC.,
 AN
ALABAMA CORPORATION
  

				
		 		 	By	 	 /s/ Larry N. Lunan

	“EF”	 		 	Title	 	 President

		 		 		 	
		
	GENERAL ELECTRIC CAPITAL	 	EXTENDED EMERGENCY SERVICES,
	CORPORATION, A DELAWARE	 	INC., AN ALABAMA CORPORATION
	CORPORATION, aka GE CAPITAL	 	
	 COMMERCIAL FINANCE
 HEALTHCARE
FINANCIAL SERVICES
	 	By	 	 /s/ Larry N. Lunan

	EF	 	Title	 	 President

			
	By:	 	 [Illegible]
	 	 MED EXPRESS OF MISSISSIPPI, LLC, A
 MISSISSIPPI LIMITED LIABILITY
 COMPANY

	Title:	 	 Senior Vice President
	 	By	 	 /s/ Larry N. Lunan

		 		 	Title	 	 President

			
		 		 	“PARENT”
			
		 		 	BAD TOYS HOLDINGS, INC., A NEVADA
		 		 	CORPORATION
				
		 		 	By:	 	 /s/ Larry N. Lunan

		 		 	Title:	 	 President

  

 - 11 - 

 CONSENT AND AGREEMENT OF GUARANTOR BAD TOYS 
 This Consent And Agreement of Guarantor is executed by the undersigned Bad Toys Holding, Inc. (the “Guarantor Bad Toys”) with
respect to the foregoing Forbearance Agreement No. 3 dated as of September 1, 2005 (the “9/1/05 Agreement” ). Except as expressly stated otherwise herein, terms defined in the 9/1/05 Agreement will have the same
meanings when used in this Consent And Agreement Of Guarantor. 
 Guarantor Bad Toys has executed and delivered the Tri-Party Agreement for
the benefit of GECC, whereby, among other things, Guarantor guaranteed payment in full of Borrower’s obligations to pay the entire amount of the CF Obligations and the EF Obligations (the “Bad Toys Guaranty”).

 Guarantor Bad Toys acknowledges (i) receiving and reading the 9/1/05 Agreement to which it is a party, (ii) the accuracy of the
Recitals in the 9/1/05 Agreement, and (iii) the effectiveness, validity and enforceability of (A) the Bad Toys Guaranty, and (B) any other agreements, documents, or instruments securing or otherwise relating to the Bad Toys Guaranty
previously executed and delivered by Guarantor Bad Toys. The Bad Toys Guaranty and all such other agreements, documents, and instruments executed and delivered in connection therewith are referred to individually and collectively as the
“Bad Toys Guaranty Documents”. 
 Guarantor Bad Toys consents to the agreement among Borrower, Parent (which is
Guarantor Bad Toys), and GECC and all other matters stated in the 9/1/05 Agreement. 
 Guarantor Bad Toys fully, finally, and forever
releases and discharges GECC and its predecessors, successors, assigns, directors, officers, employees, attorneys, agents, representatives, and affiliates, from any and all actions, causes of action, claims, debts, demands, liabilities, obligations,
and suits of whatever kind or nature, in law or equity, that Guarantor Bad Toys has or in the future may have, whether known or unknown (i) regarding the Loan, the GECC Documents, the 9/1/05 Agreement, the Bad Toys Guaranty Documents, or the
actions or omissions of GECC relating to the Loan, the GECC Documents, the 9/1/05 Agreement, or the Bad Toys Guaranty Documents and (ii) arising from events occurring prior to the date hereof. 
 Guarantor Bad Toys agrees that all references in the Bad Toys Guaranty Documents, if any, to the Loan Agreement and any and all documents executed and/or
delivered in relation to the Loan Agreement will be deemed to refer to such agreements, documents, and instruments as modified by the 9/1/05 Agreement. 
 Guarantor Bad Toys reaffirms and confirms the Bad Toys Guaranty Documents and agrees that the Bad Toys Guaranty Documents continue in full force and effect; and that the Bad Toys Guaranty Documents remain unchanged,
unless and except to the extent specifically modified by this Consent And Agreement Of Guarantor. 
 Bad Toys Guarantor agrees that the GECC
Documents and any and all documents executed and/or delivered in relation to the Loan Agreement, as modified by the Forbearance Agreements and the 9/1/05 Agreement, and the Bad Toys Guaranty Documents are the legal, 
  

 - 12 - 

 valid, and binding obligations of Borrower and Bad Toys Guarantor, respectively, and are enforceable in accordance with
their terms against Borrower and Guarantor, respectively and jointly, severally, and independently. 
 Guarantor Bad Toys has no defenses,
counterclaims, setoffs, recoupments, or other adverse claims or causes of action of any kind existing with respect to the indebtedness owing by Borrower to GECC under the GECC Documents, or with respect to the validity, perfection, priority, and
enforceability of the Bad Toys Guaranty Documents and any and all rights and interests granted therein to GECC. The Bad Toys Guaranty Documents are hereby ratified and confirmed in all respects. 
 Guarantor Bad Toys acknowledges that GECC is entering into the 9/1/05 Agreement and agreeing to the provisions contained therein in reliance on the truth
and accuracy of the representations and warranties in this Consent And Agreement Of Guarantor Bad Toys. Despite any past or future acceptance of late or partial installment payments, any prior reinstatement, any prior negotiations, or any other
forbearance of any kind by GECC, time remains of the essence of the Bad Toys Guaranty Documents, the GECC Documents, and the 9/1/05 Agreement. 
 Guarantor Bad Toys agrees that this Consent And Agreement Of Guarantor Bad Toys may be executed in one or more counterparts, each of which will be deemed an original and all of which together will constitute one and the same document.
Signature pages may be detached from the counterparts and attached to a single copy of this Consent And Agreement Of Guarantor to form one document. 
 DATED as of the date of the 9/1/05 Agreement. 
  

			
	BAD TOYS HOLDINGS, INC.,
	A NEVADA CORPORATION
		
	By:	 	 /s/ Larry N. Lunan

	Its:	 	 President

  

 - 13 - 

 SCHEDULE 2 
 (page 1 of 2) 
 Forbearance Agreements 
  

	1.	Letter Agreement between GECC and Borrower dated as of July 16, 2003 (the “7/16/03 Letter Agreement”), as modified by that Letter Agreement between GECC and
Borrower dated October 1, 2003 (the “10/1/03 Letter Agreement,” and collectively with the 7/16/03 Letter Agreement, the “Forbearance Agreement”); 

  

	2.	Letter Agreement between GECC and Borrower dated November 6, 2003 (the “Second Forbearance Agreement”); 

  

	3.	Letter Agreement between GECC and Borrower dated November 14, 2003 (the “Third Forbearance Agreement”); 

  

	4.	Letter Agreement between GECC and Borrower dated November 26, 2003 (the “11/26/03 Letter Agreement”), as modified by that Letter Agreement between GECC and
Borrower dated December 3, 2003 (the “12/3/03 Letter Agreement” , and collectively with the 11/26/03 Letter Agreement, the “Fourth Forbearance Agreement”); 

  

	5.	Letter Agreement between GECC and Borrower dated December 19, 2003 (the “Fifth Forbearance Agreement”); 

  

	6.	Letter Agreement between GECC and Borrower dated January 26, 2004 (the “Sixth Forbearance Agreement”); 

  

	7.	Letter Agreement between GECC and Borrower dated February 18, 2004 (the “Seventh Forbearance Agreement”); 

  

	8.	Letter Agreement between GECC and Borrower dated March 15, 2004 (the “Eighth Forbearance Agreement”); 

  

	9.	Letter Agreement between GECC and Borrower dated April 23, 2004 (the “Ninth Forbearance Agreement”); 

  

	10.	Letter Agreement between GECC and Borrower dated May 28, 2004 (the “Tenth Forbearance Agreement”); 

  

	11.	Letter Agreement between GECC and Borrower dated June 21, 2004 (the “Eleventh Forbearance Agreement”); 

  

	12.	Letter Agreement between GECC and Borrower dated June 28, 2004 (the “Twelfth Forbearance Agreement”); 

  

 - 14 - 

 SCHEDULE 2 
 (page 2 of 2) 
 Forbearance Agreements 
  

	13.	Letter Agreement between GECC and Borrower dated July 12, 2004 (the “Thirteenth Forbearance Agreement”); 

  

	14.	Letter Agreement between GECC and Borrower dated July 26, 2004 (the “Fourteenth Forbearance Agreement”); 

  

	15.	Letter Agreement between GECC and Borrower dated August 25, 2004 (the “Fifteenth Forbearance Agreement”); 

  

	16.	Letter Agreement between GECC and Borrower dated September 16, 2004 (the “Sixteenth Forbearance Agreement”); 

  

	17.	Letter Agreement between GECC and Borrower dated October 4, 2004 (the “Seventeenth Forbearance Agreement”). 

  

	18.	Letter Agreement between GECC and Borrower dated November 30, 2004 (the “Eighteenth Forbearance Agreement”). 

  

	19.	Letter Agreement between GECC and Borrower dated December 14, 2004 (the “Nineteenth Forbearance Agreement”). 

  

	20.	Letter Agreement between GECC and Borrower dated January 21, 2005 (the “Twentieth Forbearance Agreement”). 

  

	21.	Letter Agreement between GECC and Borrower dated February 1, 2005 (the “2/01/05 Forbearance Agreement”). 

  

	22.	Forbearance Agreement between GECC and Borrower dated as of May 31, 2005 (the “5/31/05 Forbearance Agreement”). 

  

	22.	Forbearance Agreement No. 2 between GECC and Borrower dated as of July 15, 2005 (the “7/15/05 Forbearance Agreement”). 

  

 - 15 - 

 SCHEDULE 1 
 (Page 1 of 2) 
 To 
 Amendment to Forbearance 
 Agreement No. 3 
  

									
	Payroll Tax Analysis	  		  				 	
	 Approx. Balance due 9/30/04
	  		  	$	1,800,000.00	 	 	Per IRS letter
				
	  	  	Liability Date	  	 	 	 	Payment Date
		  	10/01/04	  	$	119,906.42	 	 	
		  	10/08/04	  	$	67,277.57	 	 	
		  	10/15/04	  	$	115,195.20	 	 	
		  	10/22/04	  	$	64,519.30	 	 	
		  	10/29/04	  	$	116,058.56	 	 	
		  	11/05/04	  	$	67,371.74	 	 	
		  		  	$	(67,371.74	)	 	11/10/04
		  	11/12/04	  	$	126,126.26	 	 	
		  	11/19/04	  	$	65,617.24	 	 	
		  		  	$	(65,617.24	)	 	11/23/04
		  	11/26/04	  	$	121,264.40	 	 	
		  	12/03/04	  	$	64,840.77	 	 	
		  	12/10/04	  	$	121,406.94	 	 	
		  	12/17/04	  	$	62,153.03	 	 	
		  		  	$	(62,153.03	)	 	12/22/04
		  	12/24/04	  	$	122,074.16	 	 	
		  	12/31/04	  	$	61,875.52	 	 	
		  		  	$	(61,875.52	)	 	1/5/05
		  		  	 	 	 	 	
		  	Due at 12/31/04	  	$	2,838,669.58	 	 	
		  		  	 	 	 	 	
	 Additional Payments
	  		  				 	
		  		  	$	(200,183.99	)	 	01/21/05
		  		  	$	(300,000.00	)	 	02/22/05
		  		  	$	(25,000.00	)	 	01/06/05
		  		  	$	(25,000.00	)	 	01/31/05
		  		  	$	(25,000.00	)	 	03/10/05
		  		  	$	(25,000.00	)	 	04/07/05
		  		  	$	(25,000.00	)	 	04/27/05
		  		  	$	(25,000.00	)	 	06/02/05
		  		  	$	(25,000.00	)	 	07/01/05
		  		  	$	(25,000.00	)	 	08/01/05
		  		  	 	 	 	 	
		  	Bal forward 2004	  	$	2,138,485.59	 	 	
		  		  	 	 	 	 	
				
	 2005
	  		  				 	
				
	  	  	Liability Date	  	 	 	 	Payment Date
	 January
	  		  				 	
		  	1/7/05	  	 	124,388.71	 	 	
		  		  	 	(123,316.29	)	 	1/14/05
		  	1/14/05	  	 	73,240.30	 	 	
		  		  	 	(73,234.10	)	 	1/19/05
		  	1/21/05	  	 	94,443.88	 	 	
		  		  	 	(94,015.62	)	 	1/27/05
		  	1/28/05	  	 	80,041.48	 	 	
		  		  	 	(79,804.54	)	 	2/4/05
		  		  	 	(1,742.81	)	 	2/15/05
		  		  	 	 	 	 	
		  	Bal due Jan	  	 	1.01	 	 	
		  		  	 	 	 	 	
	 February
	  		  				 	
		  	2/4/05	  	 	88,885.16	 	 	
		  		  	 	(88,885.35	)	 	2/10/05
		  	2/11/05	  	 	94,698.37	 	 	
		  		  	 	(94,698.91	)	 	2/17/05
		  	2/18/05	  	 	92,140.46	 	 	
		  		  	 	(92,916.80	)	 	2/23/05
		  	2/25/05	  	 	91,219.32	 	 	
		  		  	 	(91,157.04	)	 	3/2/05
		  		  	 	 	 	 	
		  	Bal due Feb	  	 	(714.78	)	 	
		  		  	 	 	 	 	

 SCHEDULE 1 
 (Page 2 of 2) 
 To 
 Amendment to Forbearance 
 Agreement No. 3 
  

									
	 March
	  		  				 	
		  	3/4/05	  	 	89,658.13	 	 	
		  		  	 	(89,530.03	)	 	3/9/05
		  	3/11/05	  	 	95,851.88	 	 	
		  		  	 	(95,803.77	)	 	3/17/05
		  	3/18/05	  	 	92,656.45	 	 	
		  		  	 	(92,536.70	)	 	3/25/05
		  	3/25/05	  	 	92,239.92	 	 	
		  		  	 	(92,290.52	)	 	4/11/05
		  		  	 	(246.52	)	 	4/15/05
		  		  	 	 	 	 	
		  	Bal due Mar	  	 	(1.16	)	 	
		  		  	 	 	 	 	
	 April
	  		  				 	
		  	4/1/05	  	 	97,089.38	 	 	
		  		  	 	(97,089.67	)	 	4/26/05
		  	4/8/05	  	 	98,306.98	 	 	
		  		  	 	(98,307.46	)	 	4/28/05
		  	4/15/05	  	 	96,087.33	 	 	
		  		  	 	(96,087.70	)	 	5/10/05
		  	4/22/05	  	 	90,919.41	 	 	
		  	4/29/05	  	 	99,748.92	 	 	
		  		  	 	(193,522.21	)	 	5/16/05
		  		  	 	 	 	 	
		  	        Bal due Apr	  	 	(2,855.01	)	 	
		  		  	 	 	 	 	
	 May
	  		  				 	
		  	05/06/05	  	$	94,810.16	 	 	
		  	05/13/05	  	$	98,580.94	 	 	
		  	05/20/05	  	$	88,963.40	 	 	
		  	05/27/05	  	$	101,208.85	 	 	
		  		  	$	(94,810.16	)	 	7/29/05
		  		  	 	 	 	 	
		  	Bal due May	  	$	288,753.19	 	 	
		  		  	 	 	 	 	
	 June
	  		  				 	
		  	06/03/05	  	$	90,964.04	 	 	
		  	06/10/05	  	$	105,399.59	 	 	
		  	06/17/05	  	$	88,602.39	 	 	
		  	06/24/05	  	$	104,668.48	 	 	
		  		  	 	 	 	 	
		  	Bal due June	  	$	389,634.50	 	 	
		  		  	 	 	 	 	
	 July
	  		  				 	
		  	07/01/05	  	$	91,458.62	 	 	
		  	07/08/05	  	$	103,765.93	 	 	
		  	07/15/05	  	$	92,704.33	 	 	
		  	07/22/05	  	$	103,354.92	 	 	
		  	07/29/05	  	$	102,341.98	 	 	
		  		  	 	 	 	 	
		  	Bal due July	  	$	493,625.78	 	 	
		  		  	 	 	 	 	
	 August
	  		  				 	
		  	8/3/05	  	$	103,987.91	 	 	
		  	8/10/05	  	$	90,289.23	 	 	
		  	8/17/05	  	$	103,698.68	 	 	
		  	8/24/05	  				 	
		  	8/31/05	  				 	
		  		  	$	(103,698.68	)	 	8/24/05
		  		  	 	 	 	 	
		  		  	$	194,277.14	 	 	
		  		  	 	 	 	 	
	Total Due 2005	  	$	1,362,720.67	 	 	
	Bal on 2004 roll forward	  	$	2,138,485.59	 	 	
	Penalties and Interest/Levy	  	$	251,748.97	 	 	
		  		  	 	 	 	 	
		  		  	$	3,752,955.23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]