Document:

exv10w2

Exhibit 10.2

GE Capital, Transportation Finance

803 548 2736

803 753 9306

hannah.davis@ge.com

August 12, 2011

 

Loan Commitment

Hannah Lord Davis     VP Relationship Manager

 

 

Choice Environmental Services, Inc.

4725 Piedmont Row Drive

Suite 400

Charlotte, NC 28210

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

 

 

     General Electric Capital Corporation is pleased to submit to you the following commitment
(this “Commitment”) to provide financing on the terms set forth below.

	 	 	 
	TRANSACTION:

	 	One or more fixed rate loans (each
a “Loan”),
made during the Loan Commencement Dates,
totaling in the aggregate, no more than the
Total Funding Amount (described below).
	 
	 	 
	LENDER:

	 	General Electric Capital Corporation or an
affiliate and/or its assigns (all of which are
designated “GE Capital” in this Commitment).
	 
	 	 
	BORROWER:

	 	Choice Environmental Services, Inc.
	 
	 	 
	GUARANTORS:

	 	Swisher Hygiene, Inc.
	 
	 	 
	SUPPLIER:

	 	Various
	 
	 	 
	FINANCED ASSETS:

	 	Various Refuse industry trucks, carts,
compactors and containers.
	 
	 	 
	ANTICIPATED DELIVERY DATE:

	 	August 2011-February 8, 2012, with a renewal
option at 6 months if approved by GE Capital in
its sole discretion upon a credit review.
	 
	 	 
	ADVANCE RATES &

ESTIMATED EQUIPMENT COST:

	 	Trucks- 88% of Orderly Liquidation Value
(“OLV”) (as determined by GE Capital in its
sole discretion) for used equipment
acquisitions, subject to final appraisal. The
advance rate for new equipment purchases shall
be a percentage of the purchase price of such
new equipment to be determined by GE Capital in
its sole discretion, and shall vary depending
on the total amount of used equipment that has
previously been or is contemporaneously being
funded.
	 
	 	 
	 

	 	Carts/Compactors/Containers- 50% of OLV (as
determined by GE Capital in its sole
discretion) for used equipment acquisitions,
subject to final appraisal. 50% of purchase
price for new equipment purchases,.
	 
	 	 
	 

	 	GE Capital’s obligation regarding the aforementioned
Carts/Compactors/Container commitment is subject to GE
Capital’s sole discretion, is contingent on the
financing of a certain amount of trucks (as determined
by GE Capital at its
sole discretion) and shall not exceed 30% of total
committed funding amount.

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

1

 

	 	 	 
	TOTAL FUNDING AMOUNT:

	 	Not to exceed $16,362,748.00.
	 
	 	 
	DOCUMENTATION:

	 	Each Loan will be documented based on GE Capital’s standard loan and security
documentation for transactions of this type, including without limitation a Loan and Security Agreement in substantially the form
attached hereto.
	 
	 	 
	LOAN COMMENCEMENT DATES:

	 	The Transaction shall be made in one or more Loans, beginning no
earlier than August 2011 and ending no later than February 8, 2012, with a renewal option at 6 months if approved by GE Capital in
its sole discretion upon a credit review. For each Loan, the Loan Commencement Date shall be only upon satisfaction of the
conditions described under “Conditions to Loan” below and subject to the restrictions provided herein. In no event shall the total
aggregate of all advances exceed the Total Funding Amount.
	 
	 	 
	TERM AND BASIC PAYMENT AMOUNTS:

	 	Estimated basic payment amounts shall be determined
exclusive of taxes and assuming an interest rate of 5.01% (the “Interest Rate”), subject to adjustment as described below, for 60
months.
	 
	 	 
	ADJUSTMENT TO BASIC PAYMENT AMOUNTS:

	 	This Commitment is for one or more fixed payment, fixed rate loans. The interest rate set
forth above is based on an assumption that, at the time of each funding, the 5 year Swap rate will be 1.76%. If such rate has been
changed between such date and closing, the interest rate and the payments set forth above will be adjusted accordingly.
	 
	 	 
	 

	 	The Interest Rate stated above reflects initial spread
of 325 basis points over the current Swap
Rate(1) of 1.76% (“Initial Rate”) as
of July 28, 2011 (“Initial Quote Date”) and
Lender reserves the right to adjust such quoted amounts
prior to a Loan Commencement Date if the then reported
Swap Rate is different from the Initial Rate. Also,
Lender reserves the right to make an additional
adjustment prior to a Loan Commencement Date if the
Corporate Index Spread Average(3) is more
than 25 basis points different from the Corporate Index
Spread(2) as of the Initial Quote Date,
which is 280  basis points.

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

2

 

	 	 	 
	 

	 	(1) “Swap Rate” means the interest rate for
swaps that most closely approximates the initial term
of the Loan as published by the Federal Reserve Board
in the Federal Reserve Statistical Release H.15
entitled “Selected Interest Rates” currently available
online at
http://www.federalreserve.gov/releases/h15/update/ or
such other nationally recognized reporting source or
publication as Lender may specify.
	 
	 	 
	 

	 	(2) “Corporate Index Spread” means the U.S.
Aggregate Corporate AA-Rated Index as calculated by
Barclays Capital on an Option Adjusted Spread (OAS)
basis currently available online at
http://online.wsj.com/mdc/public/page/23022-bondbnchmrk.
html?mod=mdc_bnd_pglnk or such other nationally
recognized reporting source or publication as Lender
may specify.
	 
	 	 
	 

	 	(3) “Corporate Index Spread Average” means the
average of the daily Corporate Index Spreads over the
period starting on the Initial Quote Date until the
date of the last available Corporate Index Spread as of
the Loan Commencement Date.
	 
	 	 
	 

	 	The Interest Rate and Loan Payments set forth above are
only indicative of today’s pricing and therefore may be
adjusted by GE Capital at its sole discretion for any
reason, in any amount and at any time prior to the
execution of the loan documents for each Loan.
	 
	 	 
	PREPAYMENT FEE:

	 	Borrower may at any time prepay each Loan in full, but not in part, however such
prepayment must be accompanied by a prepayment fee equal to the following:
	 
	 	 
	 

	 	1% of the originally scheduled balance on the date of
prepayment for each full twelve month period
remaining under the loan as of the date of prepayment,
with no prepayment fee in the final year of the loan.
	 
	 	 
	GRANT OF SECURITY INTEREST:

	 	Each Loan will be secured by a first priority,
perfected security interest in the Financed
Assets and any and all of the proceeds
thereof.

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

3

 

	 	 	 
	NET LOAN:

	 	Each Loan will be a “net loan” with Borrower
responsible for making payments under all
circumstances. Borrower is specifically
responsible for all expenses, maintenance,
insurance and taxes relating to the purchase,
selection, occupancy, possession and use of
the Financed Assets.
	 
	 	 
	MAINTENANCE AND INSURANCE:

	 	All maintenance and insurance (fire, theft and
extended coverage) are the responsibility of
Borrower. Borrower will be responsible for
maintaining in force property and liability
insurance (including fire and theft and
extended coverage) against such risks,
pursuant to such terms, with companies and in
such amounts, in each case, satisfactory to GE
Capital. Borrower will be required to provide
to Lender prior to any funding date, one or
more certificate(s) of insurance evidencing
the required coverage, in form and substances
acceptable to Lender.
	 
	 	 
	CONDITIONS TO LOAN:

	 	On or prior to the Loan Commencement Date for
each individual Loan, Borrower shall have
satisfied conditions precedent, which are
usual and customary for financings of this
kind, and shall have delivered to GE Capital
all documentation, fully-executed, that GE
Capital, in its sole discretion may require,
including, without limitation, the following:

	 	•	 	GE Capital shall obtain 100%
collateral inspection either by GE
Capital or approved Appraisal Company.
	 
	 	•	 	GE Capital shall have received all
executed documents related to the
proposed Loan transactions in form and
substance satisfactory to GE Capital;
	 
	 	•	 	the Financed Assets have been
delivered, installed and accepted by
Borrower;
	 
	 	•	 	delivery of information required under
the PATRIOT Act and pursuant to customary
know-your-customer policies;
	 
	 	•	 	delivery of customary officers’
certifications and good standing
certificates;
	 
	 	•	 	satisfactory insurance requirements
and endorsements in favor of Lender; and
	 
	 	•	 	satisfactory intercreditor and
subordination agreements with all
existing lien holders.

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

4

 

	 	 	 
	COMMITMENT EXPIRATION:

	 	This Commitment and all of its terms shall expire on February 8, 2012, with
a renewal option at 6 months if approved by GE Capital in its sole discretion upon a credit
review.

Commitment Fee. By signing below, Borrower acknowledges the terms and conditions of this
Commitment and agrees to pay a commitment fee of $75,000.00 (the “Commitment Fee”). The
Commitment Fee is non-refundable and deemed earned upon your acceptance of this Commitment, and
shall be retained by GE Capital whether or not any of the financing(s) described herein is closed.
However, should a financing described herein close, the Commitment Fee will be applied to the
initial installment payment(s), except for a documentation charge of $1,000.00.

Termination Events. This Commitment may be terminated by GE Capital upon written notice to
Borrower (by facsimile transmission, U.S. mail or overnight delivery service) upon the occurrence
of any of the following:

(i) a material adverse change, as determined by GE Capital in its sole judgment, in the
business prospects, projections, operations, management, financial or other conditions of
Borrower, any Guarantor(s) or in the industry in which Borrower or Guarantor(s) operate that
could preclude Borrower or any Guarantor from satisfying its obligation under the applicable
loan agreement or any related document, or a change in control of any one of the aforesaid
parties;

(ii) the occurrence of any disruption of, or any adverse change in, the leasing or lending
market, leasing or loan syndication or financing, banking or capital market conditions;

(iii) Borrower or any Guarantor shall fail to comply with any term or condition hereof and
such failure is not cured within (5) days of notice thereof;

(iv) Borrower or any Guarantor shall (a) apply for or consent to the appointment of a
receiver, trustee or liquidator for it or for any of its property, (b) make a general
assignment for the benefit of creditors, (c) be adjudicated a bankrupt or insolvent or (d)
file for or take advantage of any bankruptcy, reorganization, insolvency, or liquidation law
or statute, or an answer admitting the material allegations of a petition filed against it in
any proceeding under any such law, or, if applicable, if corporate action shall be taken by
Borrower or any Guarantor for the purpose of effecting any of the foregoing;

(v) GE Capital shall have become aware of any information not previously disclosed to it
affecting Borrower, any Guarantor, or the Financed Assets that in GE Capital’s judgment is
inconsistent in a material and adverse manner with any such information disclosed to GE
Capital prior to the date hereof and that could preclude Borrower or any Guarantor from
satisfying its obligation under the applicable loan agreement or any related document;

(vi) a default under or breach of any agreement between Borrower and GE Capital or between
any Guarantor and GE Capital shall have occurred and not been cured within the applicable
cure period, if any;

(vii) Lender in good faith believes that the prospect for repayment or performance under the
Transaction is materially impaired; or

(viii) this Commitment shall have expired.

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

5

 

Confidentiality. This Commitment supersedes all prior discussions, writings, indications of
interest and proposals previously delivered to you, with respect to the financing described herein.
This Commitment is being delivered to you in reliance upon the accuracy of all information
furnished to GE Capital by you or on your behalf, and you acknowledge that this Commitment is
confidential except as required by the Federal Securities laws or any Stock Exchange listing
requirements and subject to the foregoing any dissemination of this Commitment by you to third
parties is strictly prohibited. Nothing herein is to be construed as constituting tax, accounting
or legal advice by GE Capital to any person.

Indemnity. Regardless of whether the financing described herein closes, you hereby agree to
indemnify, defend and hold harmless each of GE Capital and its affiliates and their respective
principals, directors, officers, employees, representatives, agents and third-party advisors (each,
an “Indemnified Person”) from and against any and all losses, disputes, penalties, claims,
expenses (including, without limitation, legal expenses) damages, and liabilities (including
without limitation, environmental liabilities) of whatsoever kind and nature (including those
arising from an Indemnified Person’s ordinary negligence) arising out of, in connection with, or
relating to the Financed Assets, this Commitment, the financing described herein, the use or the
proposed use of the proceeds thereof, any other transaction contemplated by this Commitment and any
other transaction related thereto (collectively, “Claims”), regardless of whether such
Indemnified Person is a party thereto; provided that no Indemnified Person shall be entitled to
indemnity hereunder in respect of any Claim to the extent that the same is found by a final,
non-appealable judgment of a court of competent jurisdiction to have resulted directly from the
gross negligence or willful misconduct of such Indemnified Person. Under no circumstances shall GE
Capital or any of its affiliates be liable for any punitive, special, exemplary, consequential or
indirect damages that may be alleged to result in connection with, arising out of, or relating to,
any Claims, this Commitment, the financing described herein, the use or the proposed use of the
proceeds thereof, any other transaction contemplated by this Commitment and any other transaction
related thereto.

Assignments and Amendments. This Commitment shall not be assignable by you without the prior
written consent of GE Capital (and any purported assignment without such consent shall be null and
void), is intended to be solely for the benefit of the parties hereto and is not intended to confer
any benefits upon, or create any rights in favor of, any person other than the parties hereto and
the Indemnified Persons. This Commitment may not be amended or waived except by an instrument in
writing signed by you and GE Capital.

Counterparts and Governing Law. This Commitment may be executed in counterparts, each of which
shall be deemed an original and all of which counterparts shall constitute one and the same
document. Delivery of an executed signature page of this Commitment by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof. The laws of the State of
Texas (without giving effect to the conflicts of laws principles thereof) shall govern all matters
arising out of, in connection with or relating to this Commitment, including, without limitation,
its validity, interpretation, construction, performance and enforcement.

Venue and Submission to Jurisdiction. You consent and agree that the state or federal courts
located in Dallas County, State of Texas, shall have exclusive jurisdiction to hear and determine
any claims or disputes between or among any of the parties hereto pertaining to this Commitment,
any transaction relating hereto, any other financing related thereto, and any investigation,
litigation, or proceeding in connection with, related to or arising out of any such matters,
provided, that you acknowledge that any appeals from those courts may have to be heard by a court
located outside of such jurisdiction. You expressly submit and consent in advance to such
jurisdiction in any action or suit commenced in any such court, and hereby waive any objection
which either of them may have based upon lack of personal jurisdiction, improper venue or
inconvenient forum.

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

6

 

Waiver of Jury Trial. THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS
COMMITMENT, THE FINANCING CONTEMPLATED HEREBY AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY. THIS
WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE.

Final Agreement. THIS COMMITMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT
TO THE SUBJECT MATTER HEREOF 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 WITH RESPECT TO THE SUBJECT MATTER OF THIS COMMITMENT.

Survival. Except to the extent expressly superseded by the applicable loan and security
agreement(s), the provisions of this letter set forth under this heading and the headings
Commitment Fee, Confidentiality, Indemnity, Assignments and Amendments, Counterparts and Governing
Law, Venue and Submission to Jurisdiction and Waiver of Jury Trial shall survive the termination or
expiration of this Commitment and shall remain in full force and effect regardless of whether
definitive financing documentation shall be executed and delivered.

Miscellaneous. This Commitment Letter is being delivered to you in reliance upon the accuracy in
all material respects of all information furnished to Lender by Borrower and Guarantors or on
Borrower’s and Guarantors’ behalf. Nothing herein is to be construed as constituting tax,
accounting, financial or legal advice by Lender to Borrower, any Guarantor or any other person.

If the foregoing terms and conditions are acceptable to you, please sign and return a copy of this
Commitment Letter whereupon this Commitment Letter shall become effective. This Commitment and all
of its terms shall expire on August 12, 2011 if GE Capital has not received your signed counterpart
hereto by such date together with the Commitment Fee. If this
Commitment is accepted by you in accordance with the foregoing sentence, then unless extended in
writing by GE Capital (which extension may be granted or withheld by GE Capital in its sole
discretion), the commitments contained herein shall expire at 5:00 p.m. Central time on the
Commitment Expiration, as described above, unless the transactions contemplated and described by
this Commitment are consummated on or before that date on the terms, and subject to the conditions,
contained herein.

Sincerely,

 

 

/s/ Hannah Lord Davis

Hannah Lord Davis

VP Relationship Manager

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

7

 

Accepted and agreed to as of

			
	

Date:	 	
8/12/11 

Choice Environmental Services, Inc.

			
	

By:	 	
/s/ Thomas Aucamp 

			
	

Name:	 	
Thomas Aucamp 

			
	

Title:	 	
EVP 

 

 

			
	GE Capital, Transportation Finance
	 	August 12, 2011
	Hannah Lord Davis
	 	Loan Commitment

8exv10w3

Exhibit 10.3

 

MASTER LOAN AND SECURITY AGREEMENT

(IB/Fully Amortized)

The undersigned debtor, meaning all debtors jointly and severally (“Debtor”) to secure the
obligations set forth herein, grants to General Electric Capital Corporation (with its successors
and assigns, “Lender”) under the terms and provisions of this agreement (together with all
schedules, addenda and amendments, this “Agreement”) a security interest in all property described
in any Schedule A executed by Debtor and Lender (“Schedule A”) together with all present and future
accessions, attachments, accessories, replacement parts, repairs and additions or substitutions
thereto (collectively, the “Equipment”). Any advance under this Agreement shall be evidenced by a
Schedule A and Debtor’s payment obligations shall be as set forth in such Schedule A. Each such
Schedule A is a separate loan and security agreement incorporating, except as specifically agreed
upon by Debtor and Lender in such Schedule A, all of the terms and provisions of this Agreement.
Lender may make, or decline to make, any additional advances under this Agreement in its sole
discretion and any past advances shall not be construed as an agreement to make any future
advances. Any advance made pursuant to this Agreement will be an extension of credit exclusively
for business or commercial purposes (excluding agricultural use) and no proceeds of any advance
shall be used for any personal, family or household purpose. All payments shall be made at such
place as Lender may designate in writing.

1.0 THE EQUIPMENT

1.1 Disclaimer. LENDER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AS TO THE
QUALITY, WORKMANSHIP, DESIGN, MERCHANTABILITY, SUITABILITY, OR FITNESS OF THE EQUIPMENT FOR ANY
PARTICULAR PURPOSE, OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED.
Debtor’s obligations hereunder are absolute and unconditional notwithstanding the existence,
location or condition of any item of Equipment or its suitability for use in Debtor’s business.

1.2 Equipment Receipt and Use. By executing a Schedule A describing any Equipment, Debtor
warrants and agrees that: the proceeds of the loan and the Equipment will be used solely for
business and commercial purposes; the Equipment is free from and will be kept free from all liens,
claims, security interests and encumbrances other than that created hereby; Debtor will not,
without Lender’s prior written consent, sell, rent, lend, encumber, pledge, transfer, secrete or
otherwise dispose of any of the Equipment, nor will Debtor permit any such act; the Equipment will
be maintained in good operating condition, repair and appearance, and will be used and operated
with care, only by qualified personnel in the regular course of Debtor’s business; the Equipment
shall remain personal property and not become part of any real property regardless of the manner of
affixation; Lender may inspect the Equipment and all books and records relating to the Equipment or
Debtor’s performance under this Agreement at all reasonable times and from time to time; the
Equipment will be kept at Debtor’s place of business which is indicated immediately below Debtor’s
signature and will not be removed from said location without the prior written consent of Lender,
except that an item of Equipment may be used away from said location in the regular course of
Debtor’s business provided that (a) such item is not removed from the United States (except for
occasional use in Canada), and (b) if such item is not returned to said location within 30 days,
Debtor will immediately upon Lender’s request and each 30 days thereafter until the item is
returned report the then current location thereof to Lender in writing.

1.3 Insurance. Debtor shall at all times bear all risk of loss of, damage to or destruction of
the Equipment, and shall notify Lender if any of the Equipment is lost, damaged or destroyed.
Debtor agrees to maintain insurance on the Equipment for the actual cash value thereof and for the
life of this Agreement, covering all risks of physical loss or damage and such other risks as
Lender may require, in form and amount and with insurers chosen by Debtor and satisfactory to
Lender. Debtor agrees to deliver promptly to Lender certificates or, if requested, policies of
insurance satisfactory to Lender, each with a standard long-form loss-payable endorsement naming
Lender or its assigns as loss-payee as their interests may appear. Each policy shall provide that
Lender’s interest therein will not be invalidated by the acts, omissions or neglect of anyone other
than Lender, and shall provide that coverage may not be canceled or altered by the insurer except
upon 30 days prior written notice to Lender. Lender’s acceptance of policies in lesser amounts or
risks will not be a waiver of Debtor’s foregoing obligation. Debtor assigns to Lender all proceeds
of any physical damage insurance maintained by Debtor with respect to the Equipment and any and all
returned premiums, up to the amount owing hereunder by Debtor. Debtor directs all insurers to pay
such proceeds directly to Lender and authorizes Lender to endorse Debtor’s name to all remittances
without the joinder of Debtor.

 

 

1.4 Compliance With Law. Debtor shall comply with all laws, rules and regulations applicable to
Debtor and/or the operation of the Equipment, including without limitation, the USA PATRIOT Act and
all laws, rules and regulations relating to import or export controls, anti-money laundering and
terrorist financing.

2.0 SECURITY INTEREST

2.1 Security Interest. Debtor hereby grants Lender a first priority security interest in the
Equipment to secure (a) payment of the principal, interest and all other amounts due under this
Agreement or under any Schedule A, promissory note or other documents executed in conjunction with
this Agreement and/or any such Schedule A and all other obligations of Debtor to Lender under this
Agreement or such Schedules A, promissory notes or other documents, and (b) the payment and
performance of all debts, liabilities and obligations of Debtor of every kind and character whether
now existing or hereafter arising, to Lender or Lender’s Affiliates, whether under this Agreement
or any other agreement (“Liabilities”). For the purposes of this Agreement, an “Affiliate” of any
party means and includes any direct or indirect parent, subsidiary or sister entity of that party
and any successor or assign of any of them. Any sums at any time owing to Debtor and in the
possession of Lender or any such Affiliate shall secure the Liabilities of Debtor to Lender and any
Affiliate of Lender. Upon any assignment of this Agreement by Lender, the security interests
granted herein will be assigned to and inure to the benefit of such assignee and the Affiliates of
such assignee. The security interests granted herein shall continue to be effective regardless of
any retaking or redelivery of the Equipment to Debtor.

2.2 Perfection and Preservation of Security Interest. Debtor agrees, at its own cost and expense:
to do everything necessary or desirable to perfect and preserve the security interests of Lender
obtained hereunder; to extinguish or defend any action, proceeding or claim affecting the
Equipment; and to pay promptly any taxes, assessments, license fees and other public or private
charges when levied or assessed against the Equipment or this Agreement. Debtor authorizes Lender
or any officer, employee or designee of Lender to file a financing statement describing the
Equipment for itself and as representative of its Affiliates. Debtor agrees to execute and deliver
to Lender, upon Lender’s request, such documents, records and assurances as Lender deems necessary
or advisable to confirm or perfect the security interest in the Equipment and Lender’s rights
hereunder.

2.3 Location of Debtor. (i) If Debtor is a registered organization, its state of organization is
in the state set forth immediately below its signature on the last page of this Agreement and
Debtor agrees that it will not change its form or state of organization without 30 days prior
written notice to Lender. (ii) If Debtor is an individual, his/her principal place of residence is
at the address set forth immediately below his/her signature on the last page of this Agreement
and, if Debtor changes Debtor’s principal residence, Debtor will notify Lender in writing of a
change in his/her principal place of residence within 30 days of such change. Debtor agrees to
reimburse Lender for all costs incurred by Lender related to any such change.

3.0 ACCOUNT MANAGEMENT AND PAYMENT PROCESSING

3.1 Application of Payments. All payments made by Debtor to Lender pursuant to this Agreement may
be applied by Lender, in its sole discretion, first to delinquency charges, interest and other such
charges due hereunder, then to principal due hereunder, and then to any other Liabilities due and
owing. Debtor waives any right it may have to direct the application of any payments made by it to
Lender, and Lender may at its option offset and deduct any liability or obligation of Debtor from
any or all sums owed by it to Debtor.

3.2 Debit Transactions. Lender or any other holder of this Agreement (collectively “Holder”) may
but shall not be required to offer Debtor the option of paying any of Debtor’s obligations to
Holder through printed or electronic checks, drafts or charges (“Debit Transactions”). Each such
Debit Transaction may be orally authorized by Debtor, any representative or officer of Debtor or
any other party having access to or control of the account upon which the Debit Transaction is to
be charged. Debtor authorizes Holder or any officer, employee or designee of Holder to initiate
Debit Transactions from Debtor’s account in the orally authorized amount plus the Holder’s then
Debit Transaction Fee. This authorization may be canceled at any time by Debtor giving at least
three business days’ prior written notice to Debtor’s bank and Holder. Debtor authorizes Holder to
substitute a Debit Transaction for any check or other remittance submitted by Debtor in the amount
of that remittance. Payment by Debit Transactions is not required by Lender nor is its use a factor
in the approval of credit.

3.3 Acceptable Forms of Payment/Payment Processing. Credit to Debtor’s account may be delayed if
payment is (a) not received at the address indicated on the related invoice or (b) not accompanied
by Debtor’s invoice number. Preferred forms of payment include direct debit, wires, company checks
and certified checks. Payment in any other form may delay processing or be returned to Debtor.
Delayed credit may cause Debtor to incur a late payment fee. All credit for payments of Debtor’s
account are subject to final payment by the
institution on which the item of payment was drawn. Debtor hereby agrees that any payment, other
than a Disputed Payment, made by Debtor by remittance and received by Lender at an address other
than the address specified on the related invoice may be replaced, at the Holder’s option, by the
Holder with a substitute written or electronic instrument of equal amount and presented to Debtor’s
financial institution for payment from the account referenced on the remittance from Debtor.

2

 

3.4 Returned Payments. If a check, draft or other remittance sent by Debtor or a Debit
Transaction authorized by Debtor is returned unpaid or rejected for any reason other than the lack
of a proper endorsement by Lender, the application of such payment to Debtor’s Liabilities will be
reversed and Debtor shall immediately pay Lender the amount of such returned payment, plus any
delinquency charge accruing as the result of the reversal of any such payment. Debtor shall further
pay Lender any amount charged to Lender by any depositary institution because of such return and an
additional handling charge in the amount of $20, or if applicable law limits or restricts the
amount of such reimbursement and/or handling charge, the amounts chargeable under this provision
will be limited and/or restricted in accordance with applicable law.

3.5 Authorization to Share Information. Lender may receive from and disclose to any Affiliate of
Lender, the seller or manufacturer of any Equipment, any guarantor of the obligations of Debtor
under this Agreement (a “Guarantor”) or other party having a disclosed or undisclosed obligation
related to the Liabilities or Equipment, or any potential purchaser, participant or investor in
Debtor’s Liabilities or any assignee or affiliate of any of them and any credit reporting agency
(collectively, the “Entity”), for any purpose, information about Debtor’s accounts, credit
application and credit experience with Lender or any Entity. Debtor authorizes any Entity to
release to Lender or any Affiliate of Lender any information related to Debtor’s accounts, credit
experience and account information regarding Debtor. This shall be continuing authorization for all
present and future disclosures of Debtor’s account information, credit application and credit
experience on Debtor made by Lender, or any Entity.

3.6 Maximum Interest Rate. The parties hereto intend to comply with any applicable usury laws
and, accordingly, agree that, any provisions in this Agreement to the contrary notwithstanding,
this Agreement (including any Schedule A or note related hereto) shall in no event require the
payment or permit the collection of interest or any amount in the nature of interest or fees
(collectively “Interest Amount”) in excess of the maximum amount permitted by applicable law as now
or hereafter construed by a court of competent jurisdiction. If any such excess Interest Amount is
contracted for, charged or received pursuant to this Agreement, or if all of the principal balance
under this Agreement shall be prepaid, so that under any of such circumstances the Interest Amount
contracted for, charged or received shall exceed the maximum amount of interest permitted by
applicable law as so construed, then in such event any such excess which may have been collected
shall, at Lender’s option, either be credited to the unpaid principal balance of the loan as a
prepayment of principal, without any prepayment fee, or refunded to Debtor, and the effective
interest rate (taking into account all Interest Amounts) shall automatically be reduced to the
maximum lawful rate allowed under applicable law as now or hereafter construed by a court of
competent jurisdiction. Without limiting the foregoing, all calculations of the interest rate
(taking into account all Interest Amounts) contracted for, charged or received with respect to this
Agreement which are made for the purpose of determining whether such rate exceeds the maximum
lawful rate, shall be made, to the fullest extent permitted by applicable law, by amortizing,
prorating, allocating and spreading in equal parts during the period of the full stated term of the
indebtedness, all Interest Amounts at any time contracted for, charged to or received from Debtor
in connection with such indebtedness.

4.0 PERFORMANCE BY LENDER

4.1 Performance. If Debtor fails to perform any of its obligations hereunder, Lender may, but
shall not be obligated to, perform the same for the account of Debtor to protect the interest of
Lender or Debtor or both, at Lender’s option. Debtor shall immediately repay to Lender any amounts
paid by Lender together with interest thereon at the rate payable upon acceleration of Debtor’s
obligations under this Agreement. Performance by Lender will not constitute a waiver of any default
by Debtor.

4.2 Power of Attorney. DEBTOR HEREBY APPOINTS LENDER OR ANY OFFICER, EMPLOYEE OR DESIGNEE OF
LENDER AS DEBTOR’S ATTORNEY-IN FACT TO, IN DEBTOR’S OR LENDER’S NAME: (a) PREPARE, EXECUTE AND
SUBMIT ANY NOTICE OR PROOF OF LOSS IN ORDER TO REALIZE THE BENEFITS OF ANY INSURANCE POLICY
INSURING THE EQUIPMENT; (b) PREPARE, EXECUTE AND FILE ANY AGREEMENT, DOCUMENT, FINANCING STATEMENT,
TITLE APPLICATION, INSTRUMENT (OR ANY OTHER WRITING OR RECORD) THAT, IN LENDER’S OPINION, IS
NECESSARY TO PERFECT AND/OR GIVE PUBLIC NOTICE OF THE INTERESTS OF LENDER IN ANY EQUIPMENT; AND (c)
ENDORSE DEBTOR’S NAME ON ANY REMITTANCE REPRESENTING PROCEEDS OF ANY INSURANCE RELATING TO THE
EQUIPMENT OR THE PROCEEDS OF THE SALE, LEASE OR OTHER DISPOSITION OF
THE EQUIPMENT (WHETHER OR NOT THE SAME IS A DEFAULT HEREUNDER). This power is coupled with an
interest and is irrevocable as long as any Liabilities remain unpaid.

3

 

5.0 DEFAULT AND REMEDIES

5.1 Events of Default. Time is of the essence. An event of default shall occur if: (a) Debtor
fails to pay when due any amount owed by it to Lender or any Affiliate of Lender under this
Agreement (including any Schedule A or note related hereto); (b) Debtor or a Guarantor fails to pay
any Liabilities when due to Lender or any Affiliate of Lender or is otherwise in default under any
other document, agreement or instrument; (c) Debtor or a Guarantor defaults under the terms of any
secured indebtedness or indebtedness of a material amount to any other party; (d) Debtor or a
Guarantor fails to perform or observe any other term or provision to be performed or observed by it
hereunder or under any other instrument or agreement furnished by Debtor or a Guarantor to, or
otherwise acquired by, Lender or any Affiliate of Lender; (e) (i) Debtor or a Guarantor becomes
insolvent, ceases to do business as a going concern, makes an assignment for the benefit of
creditors, or takes advantage of any law for the relief of debtors, or (ii) a petition in
bankruptcy or for an arrangement, reorganization, or similar relief is filed by or against Debtor
or a Guarantor, or (iii) any property of Debtor or a Guarantor is attached, or a trustee or
receiver is appointed for Debtor or a Guarantor or for substantial part of its property, or Debtor
or a Guarantor applies for such appointment; (f) any of the Equipment is lost or destroyed, (g)
there shall occur an appropriation, confiscation, retention, or seizure of control, custody or
possession of any Equipment by any governmental authority, governmental agency or instrumentality
(such entities, agencies and instrumentalities, collectively, “Governmental Authority”); (h) Debtor
or anyone in the control, custody or possession of any Equipment is accused, alleged or charged by
any Governmental Authority to have used any Equipment in connection with the commission or any
crime (other than a misdemeanor moving violation); (n) there shall be a material adverse change in
any of the (i) condition (financial or otherwise), business performance, prospects, operations or
properties of Debtor or a Guarantor, (ii) legality, validity or enforceability of this Agreement,
(iii) perfection or priority of the lien granted in favor of Lender pursuant to this Agreement, or
(iv) ability of the Debtor to repay the indebtedness or perform its obligations under this
Agreement; (o) rights and remedies of Lender under this Agreement are impaired; (p) there shall be
a death of majority owner of Debtor or a Guarantor, or there shall be a death of the Debtor or a
Guarantor, if an individual; or (q) there shall be any lien, claim or encumbrance on any of the
Equipment except in favor of Lender or as otherwise granted herein.

5.2 Remedies. Upon the occurrence of an event of default, and at any time thereafter as long as
the default continues, Lender may, at its option, with or without notice to Debtor (i) declare this
Agreement to be in default, (ii) declare the indebtedness hereunder (including any Schedule A or
note related hereto) to be immediately due and payable, (iii) declare all other debts then owing by
Debtor to Lender or any Affiliate of Lender to be immediately due and payable, and (iv) exercise
all of the rights and remedies of a secured party under the Uniform Commercial Code and any other
applicable laws, including the right to require Debtor to assemble the Equipment and deliver it to
Lender at a place to be designated by Lender and to enter any premises where the Equipment may be
without judicial process and take possession thereof. Any property other than Equipment that is in
or upon the Equipment at the time of repossession may be taken and held without liability. Any
requirement that Lender give reasonable notice regarding the sale or other disposition of Equipment
will be met if such notice is mailed to Debtor at its last known address at least ten days before
such sale or other disposition. Lender may dispose of any Equipment at a public or private sale or
at auction. Lender may buy at any sale and become the owner of the Equipment. Debtor agrees that
Lender may bring legal proceedings to enforce the payment and performance of Debtor’s obligations
hereunder in any court in the State shown in Lender’s address set forth herein, and service of
process may be made upon Debtor by mailing a copy of the summons to Debtor at its address shown
herein. Debtor shall also pay to Lender all expenses of retaking, holding, preparing for sale,
selling and the like, including without limitation (a) the reasonable fees of any attorneys
retained by Lender, and (b) all other legal expenses incurred by Lender. Debtor agrees that Debtor
is liable for any deficiency remaining after any disposition of Equipment after default. Lender may
sell the Equipment without giving any warranties as to the Equipment. Lender may disclaim any
warranties of title, possession, quiet enjoyment, or the like. This procedure will not be
considered to adversely affect the commercial reasonableness of any sale of the Equipment.

5.3 Acceleration Interest. Debtor agrees to pay Lender, upon acceleration of the above
indebtedness, interest on all sums then owing hereunder at the rate of 1 1/2% per month if not
prohibited by law, otherwise at the highest rate Debtor can legally obligate itself to pay or
Lender can legally collect.

4

 

6.0 PREPAYMENT

6.1 Partial Prepayment. Debtor does not have the right to prepay only a portion of the balance of
any Schedule A prior to maturity. (a) If there are several units subject to this Agreement and
Lender requires (as a result of a casualty loss) or permits all indebtedness that relates to a
specific unit to be paid in full, Lender will apply the proceeds identified as relating thereto to
the balance due under this Agreement and reschedule the remaining indebtedness under this Agreement
over the then remaining term. (b) If Lender receives one or more remittance(s) in an aggregate
amount in excess of the amounts then due and unpaid under this Agreement (“Excess Remittances”)
(other than as indicated in 6.1(a) above) at a time when any amount is past due under another
agreement between Debtor and Lender, Lender may apply any portion of such excess to the payments
then due or past due under the other agreement. (c) If Lender receives one or more Excess
Remittances (other than as indicated in 6.1(a) or 6.1(b) above), Lender may, at its option, (x)
apply the excess amount to the balance due under this Agreement in any manner selected by Lender,
or (y) return such excess amount to Debtor at its last known address.

6.2 Prepayment in Full. Debtor has the right at any time, so long as Debtor is not in default
hereunder, to prepay the indebtedness under this Agreement in full (but not in part) all
indebtedness under one or more Schedules A selected by Debtor. For each Schedule A prepaid in full
prior to the last twelve months of the term thereof (as originally scheduled or if extended, as
extended), Debtor shall pay a prepayment processing fee equal to the lesser of (a) (x) 1% of the
originally scheduled balance outstanding as of the date of prepayment (without giving effect to any
prior prepayments) multiplied by (y) the number of full twelve-month periods remaining until the
originally scheduled or later extended due date of the final installment payable thereunder as of
prepayment, and (b) the maximum prepayment and/or acquisition charge allowed by applicable law.
All accrued and unpaid late charges and other amounts chargeable to Debtor under the Schedule A
prepaid in full and under this Agreement will be payable immediately upon such prepayment.

7.0 ASSIGNMENT AND GENERAL PROVISIONS

7.1 Chattel Paper. The only copy of this Agreement or any Schedule A that constitutes “Chattel
Paper” for all purposes of the Uniform Commercial Code is the copy marked “ORIGINAL FOR GE CAPITAL”
which is delivered to and held by GE Capital.

7.2 Assignment and Waiver. Neither this Agreement nor any Schedule A may not be assigned by
Debtor without the prior written consent of Lender. Lender may sell, transfer or assign any or all
rights under this Agreement or any Schedule A or sell participations herein without notice to,
acknowledgment of, or consent from Debtor. Debtor hereby (a) consents to such assignment or
participation and agrees not to assert against Lender or any such assignee or participant any
claims, counterclaims, claims in recoupment, abatement, reduction, defenses, or set-offs for breach
of warranty or for any other reason which Debtor could assert against Lender, any such assignee or
participant or the manufacturer of the Equipment, except defenses which cannot be waived under the
Uniform Commercial Code; and (b) agrees to make and/or settle any and all claims with regard to the
Equipment directly and exclusively against and with the manufacturer. Debtor agrees that no
assignee or participant will have any obligations or liabilities under this Agreement or such
Schedule A to Debtor or to any other person by reason of any assignment or participation. Debtor
hereby waives any right of set-off Debtor may now or hereafter have against Lender or any assignee
of or participant in this Agreement or such Schedule A. Upon Lender’s assignment of Lender’s entire
interest in this Agreement or any Schedule A, Lender shall be relieved, from and after the date of
such assignment, of any liability for the performance of any obligation of Lender contained in this
Agreement or such Schedule A or any document executed in conjunction with this Agreement.

7.3 General. (a) Waiver of any default shall not be a waiver of any other default. (b) All of
Lender’s rights are cumulative and not alternative. (c) No waiver or change in this Agreement
(including any Schedule A or note related hereto) shall bind Lender unless in writing signed by one
of its authorized representatives. (d) Any provision hereof contrary to, prohibited by or invalid
under applicable laws or regulations shall be inapplicable and deemed omitted herefrom, but shall
not invalidate the remaining provisions hereof. (e) Debtor authorizes Lender to correct patent
errors herein and to make changes to this Agreement or to any related schedule that benefit Debtor.
In addition, if the funding amount Debtor requests Lender to disburse exceeds the principal portion
of the Total Amount (as defined in any Schedule A) due to changes in calculation of taxes,
configuration of the Equipment or other factors affecting the cost of the Equipment, and if such an
increase is within the limits of Lender’s credit approval, Debtor authorizes Lender, upon written
notice to Debtor, to increase the principal portion of the Total Amount by not more than fifteen
percent and adjust the installment amounts payable under the Schedule A accordingly. (f) Any
captions to the provisions of this Agreement are for convenience only and do not limit or affect
the application or interpretation of this Agreement. (g) All of the terms and provisions of this
Agreement shall apply to and be binding upon Debtor and its heirs, personal

5

 

representatives, successors and assigns and shall inure to the benefit of Lender and its successors
and assigns. (h) The acceptance by Lender of any remittance from a party other than Debtor shall in
no way constitute Lender’s consent to the transfer of any of the Equipment to such party. (i)
Debtor represents and warrants that there is no material pending or threatened investigation by any
governmental authority, litigation or other legal proceeding. (j) So long as any of the Liabilities
remains unpaid or unperformed, Debtor will provide Lender with such financial information as Lender
may reasonably request, including copies of Debtor’s financial statements within 30 days of the end
of each of Debtor’s fiscal quarters and within 90 days after the end of each of Debtor’s fiscal
years. Such financial statements shall be prepared in accordance with GAAP and on the same basis
(reviewed, audited, etc.) as Debtor’s financial statements are currently prepared unless advised by
Lender otherwise, at which time Debtor will comply with Lender’s request. Debtor represents and
warrants that all financial statements delivered will present fairly the financial condition and
results of operations and cash flows of the Debtor as of the dates thereof and for the periods then
ended. (k) Lender may pay fees to or receive fees from the seller or manufacturer of the Equipment,
a broker, or other third party in connection with this Agreement. Such fees may affect the rate,
terms and Debtor’s total cost hereunder. (l) Debtor hereby agrees to indemnify, defend and hold
harmless Lender and its Affiliates and respective principals, directors, officers, employees,
representatives, agents and third-party advisors from and against any and all losses, disputes,
claims, expenses (including, without limitation, legal expenses), damages and liabilities of
whatsoever kind and nature arising out of, in connection with, or relating to the Equipment, this
Agreement or any other document related hereto. If allowed by law, the legal expenses shall include
the amount of any flat fee, retainer, contingent fee or the hourly charges of any attorney retained
by Lender in enforcing any of Lender’s rights hereunder or in the prosecution or defense of any
litigation related to this Agreement or the transactions contemplated by this Agreement. This
indemnification shall survive the termination or expiration of this Agreement.

7.4 Additional Covenants and Oral Agreement. 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.

7.5 Waiver of Trial By Jury. LENDER AND DEBTOR HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY
ACTION RELATING TO THIS AGREEMENT. LENDER AND DEBTOR HEREBY, FOR THEMSELVES, THEIR SUCCESSORS AND
ASSIGNS, WAIVE ANY RIGHT TO SUE FOR OR COLLECT FROM THE OTHER PARTY ANY INDIRECT, SPECIAL,
INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY CHARACTER AS A RESULT OF OR RELATING TO THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE ENFORCEMENT BY EITHER PARTY OF
ITS RIGHTS UNDER THIS AGREEMENT EXCEPT TO THE EXTENT THAT ANY SUCH DAMAGES ARE PROVEN TO BE THE
DIRECT RESULT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE OTHER PARTY.

7.6 Governing Law/ Choice of Venue. Anything in this Agreement to the contrary notwithstanding,
the transaction contemplated by this Agreement shall be deemed approved and entered into within the
State of Texas and all credit or other financial accommodations extended by Lender under this
Agreement shall be deemed extended from and subject to the laws of the State of Texas (without
regard to the conflicts of law principles of such State) regardless of the location of Debtor or
any of the Equipment. Any legal action or proceeding with respect to this Agreement or the
transactions contemplated by this Agreement shall be brought exclusively in the federal or state
courts located in the State of Texas, and Debtor accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts; provided, however, that
nothing in this Agreement shall limit or restrict the right of Lender to commence any proceeding in
the federal or state courts located in the state in which the Equipment is located to the extent
Lender deems such proceeding necessary or advisable to exercise remedies available under this
Agreement or to commence legal proceedings or otherwise proceed against Debtor in any other
jurisdiction. Lender and Debtor hereby irrevocably waive any objection, including any objection to
the laying of venue or based on the grounds of forum non conveniens that any of them may now or
hereafter have to the bringing of any such action or proceeding in such jurisdictions.

7.7 Execution and Delivery of Agreement. This Agreement and any Schedule A will be created and
evidenced as follows: (i) we, Lender, will deliver to you, Debtor (at the e-mail, facsimile or
business address you provide to us) an electronic (e-mail or facsimile) or paper version of each
document to be signed by you, including this Agreement and any schedules, exhibits or related
documents (each, a “Document”); (ii) you will print (if applicable) and manually sign the signature
page and initial the provisions (if the Document includes provisions requiring your initials) of
each such Document and deliver to us by facsimile or other means the signed Documents; (iii) we
will manually sign each signature page of the Documents so delivered by you (if the
Document requires our signature); and (iv) we will attach each fully signed signature page to a
printed paper copy of the applicable Document. By so signing and transmitting a Document to us, you
confirm your intent to sign such Document and accept its terms. You acknowledge that we are relying
upon your promise that you have not modified the Document sent to you for signature. We both intend
that each Document produced by this process which contains Lender’s original manual signature shall
be for all purposes (including perfection of security interests and admissibility of evidence) the
sole original authenticated Document. We will retain each original authenticated Document (as
described in the preceding sentence), which will be conclusively presumed to be identical to the
version signed by you.

6

 

7.8 Delinquency. For each installment under a Schedule A not paid when due, Debtor agrees to pay
Lender a delinquency charge calculated on the amount of such installment at the rate of 1 1/2% per
month for the period of the delinquency, or, at Lender’s option, 5% of such installment, provided
that such a delinquency charge is not prohibited by law, otherwise at the highest rate that Debtor
can legally obligate itself to pay and/or Lender can legally collect.

7.9 Payments. All amounts payable under this Agreement are payable at Lender’s address shown below
or at such other address as Lender may specify from time to time in writing. All written
communication concerning disputed amounts, including any check or other payment instrument that (i)
indicates that the written payment constitutes “payment in full” or is tendered as full
satisfaction of a disputed amount or (ii) is tendered with other conditions or limitations must be
mailed or delivered to us at the address for billing inquiries shown on the invoice or statement
and not to the payment address.

7.10 Capital Markets. DEBTOR HEREBY ACKNOWLEDGES AND AGREES THAT ANY ENTITY THAT IS AN AFFILIATE,
OR SUBSIDIARY OF GENERAL ELECTRIC CAPITAL CORPORATION (“GECC”) OR ANY OTHER PARTY MAY FROM TIME TO
TIME DIRECTLY ENTER INTO AND EXECUTE (AS THE NAMED LENDER): (I) ANY SCHEDULE A OR OTHER AGREEMENT
INCORPORATING THE TERMS OF THIS AGREEMENT BY REFERENCE (AN “OTHER AGREEMENT”); AND (II) ANY OTHER
DOCUMENTS RELATING TO SUCH OTHER AGREEMENT. IN EACH SUCH SITUATION, THE LENDER UNDER THE SEPARATE
INSTRUMENT OF AGREEMENT RESULTING FROM SUCH OTHER AGREEMENT SHALL BE THE OTHER LENDER DIRECTLY
ENTERING INTO AND EXECUTING SUCH OTHER AGREEMENT OR (AS THE CASE MAY BE) ANY SUCCESSOR OR ASSIGN OF
SUCH ENTITY, AND SUCH OTHER LENDER SHALL HAVE ALL OF THE RIGHTS OF THE LENDER UNDER THIS AGREEMENT.
ANY SUCCESSOR OR ASSIGN OF SUCH ENTITY MAY APPOINT AGENTS (INCLUDING GECC) TO ACT ON ITS BEHALF.

7

 

IMPORTANT INFORMATION ABOUT ESTABLISHING A RELATIONSHIP WITH GE CAPITAL

To help the United States Government fight terrorism and money laundering, Federal law requires us
to obtain, verify, and record information that identifies each person or business that opens an
account or establishes a relationship. What this means for you: when you open an account or
establish a relationship, we will ask for your name, street address, date of birth, and
identification number, such as a social security number or taxpayer identification number. For
businesses, we will ask for the business name, street address and tax identification number.
Federal law requires us to obtain this information. We may also ask to see your driver’s license or
other identifying documents that will allow us to identify you. We appreciate your cooperation.

Dated: August 12, 2011

General Electric Capital

Corporation

By: /s/ Maria Nejeschleba

Title: Authorized Representative

300 E. Carpenter Freeway

Irving, TX 75062

(City, State and Zip Code)

			
	                    	 	Debtor(s) hereby

acknowledge(s) receipt of an

exact copy of this contract.

Debtor: Choice Environmental Services, Inc.

          By: /s/ Thomas Aucamp

          Title: EVP

State of Organization:

Date of Birth:

                     (individual or sole proprietor)

                     (street address)

                     ,

                     (City, State and Zip Code)

Co-Debtor:

By:

Title:

State of Organization:

Date of Birth:

                     (individual or sole proprietor)

                     (street address)

                     Billing/Invoice Address (if

                     different from above, please

                     complete):

Information. We may also ask to see your driver’s license or other identifying documents that will allow us to identify you. We appreciate your cooperation.

8

 

SCHEDULE A

TO MASTER LOAN AND SECURITY AGREEMENT

This Schedule A is attached to and incorporated in that certain Master Loan and Security Agreement
dated                       (“Agreement”) between (“Debtor”) and General Electric Capital
Corporation (“Lender”).

1. Equipment Description:

YEAR MAKE      MODEL DESCRIPTION VIN

 

 

 

When not in use, the Equipment will be kept at:

 

 

2. Payment Schedule: Debtor promises to pay Lender Principal plus Interest (the ”Total Amount”) of
$           in                       installments as follows:

(a) $                                  on                                  and a like sum on the
like date of each month thereafter until fully paid.

(b) In irregular installments as follows:

 

 

 

 

provided, however, that the final installment will be in the amount of the then remaining unpaid
balance plus any and all other accrued and unpaid sums due hereunder. All amounts payable under
the Agreement are payable as and where provided herein and in the Agreement.

The Total Amount is calculated based on the assumption that all payments will be received when due
and based on an interest rate of           % per annum based on a 360-day year of
twelve 30-day months. The cost of credit, which includes interest and the administrative
fee of $                     is calculated based on an interest rate of                     % per annum
based on a 360-day year of twelve 30-day months. Late payments may affect the actual Total
Amount payable due to increased payment of delinquency charges and / or accrued interest.

 

 

3. Use of Proceeds: Lender is hereby irrevocably authorized and directed to disburse the proceeds
of this Schedule A as follows:

AMOUNT PAYEE (Name and Address)

$

$

$

Lender may disburse the proceeds using checks, drafts, orders, transfer funds, or any other method
or media Lender deems desirable. Disbursement may be made in Lender’s name on Debtor’s behalf or
in Debtor’s name. Disbursements in accordance with the above instructions or any written
supplement to these instructions will constitute payment and delivery to and receipt by Debtor of
all such proceeds.

4. Delivery and Acceptance of Equipment

(Check Appropriate Provision)

Debtor’s obligations and liabilities to Lender are absolute and unconditional under all
circumstances and regardless of any failure of operation or Debtor’s loss of possession of any item
of Equipment or the cessation or interruption of Debtor’s business for any reason whatsoever.

     On                      , the Equipment being purchased with the proceeds of this
Schedule A was delivered to Debtor with all installation and other work necessary for the proper
use of the Equipment completed at a location agreed upon by Debtor; the Equipment was inspected by
Debtor and found to be in satisfactory condition in all respects and delivery was unconditionally
accepted by Debtor.

     The Equipment being purchased with the proceeds of this Schedule A has not yet been delivered
to or accepted by Debtor and, upon delivery, Debtor agrees to execute such delivery and acceptance
certificate as Lender requires.

     All of the Equipment was acquired by Debtor prior to the date hereof and was previously
delivered to and unconditionally accepted by Debtor.

5. Governing Law. THIS SCHEDULE A IS GOVERNED BY THE LAWS OF THE STATE OF TEXAS (WITHOUT REGARD TO
THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE), BUT ONLY TO THE EXTENT SUCH LAW IS NOT PREEMPTED BY
FEDERAL LAW OR REGULATION.

Dated:

LENDER: General Electric Capital Corporation DEBTOR:

By:                                         By:

Title:                                    Title:

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