Document:

Exhibit 10.1

 

LOAN AND SECURITY AGREEMENT

 

This LOAN AND SECURITY
AGREEMENT dated as of October 28, 2009 (the “Agreement”), is executed by
and between PRIMORIS SERVICES CORPORATION
, a Delaware corporation (the “Borrower”), which has its chief executive office
located at 26000 Commercentre Drive, Lake Forest, California 92630, and THE PRIVATEBANK AND TRUST COMPANY , (the “Bank”),
whose address is 120 South LaSalle Street, Chicago, Illinois 60603, Chicago,
Illinois 60603.

 

R  E  C
I  T  A  L  S :

 

A.
                                  
The Borrower desires to borrow funds and obtain other financial
accommodations from the Bank to provide for on-going working capital
requirements and general corporate purposes.

 

B.
                                   
The Bank will be lending funds to the Borrower pursuant to Revolving
Notes as described herein.

 

C.
                                   
The Revolving Loans, as defined herein, shall be secured by a first
priority security interest in all the tangible and intangible property of the
Borrower and each of its Subsidiaries.  The Revolving Loans shall also be
secured by Guaranties and Security Agreements executed by each Subsidiary of
the Borrower in favor of the Bank.

 

D.
                                   
Pursuant to the Borrower’s request, the Bank is willing to extend such
financial accommodations to the Borrower under the terms and conditions set
forth herein.

 

NOW THEREFORE, in
consideration of the premises, and the mutual covenants and agreements set
forth herein, the Borrower agrees to borrow from the Bank, and the Bank agrees
to lend to the Borrower, subject to and upon the following terms and
conditions:

 

A  G
R  E  E  M  E  N  T  S :

 

Section 1.
                                       
DEFINITIONS .

 

1.1
                                
Defined Terms .  For the purposes of this Agreement,
the following capitalized words and phrases shall have the meanings set forth
below.

 

“
Account or Accounts “ shall have the meaning set forth in the UCC.

 

“ Affiliate “ of any
Person shall mean (a) any other Person which, directly or indirectly,
controls or is controlled by or is under common control with such Person,
(b) any officer or director of such Person, and (c) with respect to
the Bank, the foregoing and also any entity administered or managed by the
Bank, or an Affiliate or investment advisor thereof and which is engaged in
making, purchasing, holding or otherwise investing in commercial loans.  A
Person shall be deemed to be “controlled by” any other Person if such Person
possesses, directly or indirectly, power to direct or cause the direction of
the management and policies of such Person whether by contract, ownership of
voting securities, membership interests or otherwise.

 

 

“ Applicable Margin “
shall mean the rate per annum added to the Base Rate and/or LIBOR to determine
the Revolving Interest Rate as determined by the ratio of Total Debt to
Tangible Net Worth of the Borrower as of the last day of the prior fiscal
quarter, as set forth below:

 

	
  Pricing
  Matrix

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  
	
  Total
  Senior Debt

  	
   

  	
  <0.50:1

  	
   

  	
  > 0.50:1&

  	
   

  	
  >
  1.0:1&<

  	
   

  	
  > 1.50:1

  	
   

  
	
  Balance
  Sheet Leverage Ratio

  	
   

  	
   

  	
   

  	
  <1.0:1

  	
   

  	
  1.50:1

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base
  Rate Margin

  	
   

  	
  0.25%

  	
   

  	
  0.25%

  	
   

  	
  0.50%

  	
   

  	
  0.50%

  	
   

  
	
  LIBOR
  Margin

  	
   

  	
  2.00%

  	
   

  	
  2.25%

  	
   

  	
  2.50%

  	
   

  	
  2.75%

  	
   

  
	
  Letter
  of Credit Fee

  	
   

  	
  1.75%

  	
   

  	
  2.00%

  	
   

  	
  2.25%

  	
   

  	
  2.50%

  	
   

  
	
  Un-Used
  Fee A

  	
   

  	
  0.40%

  	
   

  	
  0.40%

  	
   

  	
  0.50%

  	
   

  	
  0.50%

  	
   

  
	
  Un-Used
  Fee B

  	
   

  	
  0.15%

  	
   

  	
  0.15%

  	
   

  	
  0.15%

  	
   

  	
  0.15%

  	
   

  

 

The Applicable Margin as of
the date hereof is Level II and shall be adjusted, upon receipt and
verification of a compliance certificate, on the first day of each quarter
based on the Total Debt to Tangible Net Worth of the Borrower as of the last
day of the preceding quarter.

 

The Base Rate Margin and the
LIBOR Margin will be reduced by 25 bps if the Borrower’s average deposit levels
at the Bank exceed Ten Million and 00/100 Dollars ($10,000,000) in the previous
calendar quarter.

 

“ Bank Product Agreements
“ shall mean those certain agreements entered into from time to time by the
Borrower or any Subsidiary with the Bank or any Affiliate of the Bank
concerning Bank Products.

 

“ Bank Product
Obligations “ shall mean (i) all obligations, liabilities, contingent
reimbursement obligations, fees, and expenses owing by the Borrower or any
Subsidiary to the Bank or any Affiliate of the Bank, or (ii) all
guarantees, fees and expenses owing by the Borrower to the Bank with regard to
foreign subordinated debt made available to the Borrower by any Affiliate of
the Bank, pursuant to or evidenced by the Bank Product Agreements and
irrespective of whether for the payment of money, whether direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter
arising.

 

“ Bank Products “
shall mean any service or facility extended to the Borrower or any Subsidiary
by the Bank or any Affiliate of the Bank, including:  (a) credit
cards, (b) credit card processing services, (c) debit cards,
(d) purchase cards, (e) ACH transactions, (f) cash management,
including controlled disbursement, accounts or services, or (g) Hedging
Agreements.

 

2

 

“ Bankruptcy Code “
shall mean the United States Bankruptcy Code, as now existing or hereafter
amended.

 

“ Base Rate “ shall
mean the prime rate as announced by the Bank from time to time which shall
remain fixed during any Interest Period.

 

“ Base Rate Loan “
means any Loan which bears interest at or by reference to the Base Rate.

 

“ Base Rate Margin “
shall have the meaning as set forth in the Applicable Margin.

 

“ Business Day “
shall mean any day other than a Saturday, Sunday or a legal holiday on which
banks are authorized or required to be closed for the conduct of commercial
banking business in Chicago, Illinois.

 

“ Capital Expenditures
“ shall mean all expenditures, net of sales, (including Capitalized Lease
Obligations) which, in accordance with GAAP, would be required to be
capitalized and shown on the consolidated balance sheet of the Borrower, but
excluding expenditures made in connection with the replacement, substitution or
restoration of assets to the extent financed (i) from insurance proceeds
(or other similar recoveries) paid on account of the loss of or damage to the
assets being replaced or restored or (ii) with awards of compensation
arising from the taking by eminent domain or condemnation of the assets being
replaced.

 

“ Capital Lease “
shall mean, as to any Person, a lease of any interest in any kind of property
or asset, whether real, personal or mixed, or tangible or intangible, by such
Person, as lessee, that is, or should be, in accordance with Financial
Accounting Standards Board Statement No. 13, as amended from time to time,
or, if such statement is not then in effect, such statement of GAAP as may be
applicable, recorded as a “capital lease” on the financial statements of such
Person prepared in accordance with GAAP.

 

“ Capital Securities “
shall mean, with respect to any Person, all shares, interests, participations
or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued or acquired after the date
hereof, including common shares, preferred shares, membership interests in a
limited liability company, limited or general partnership interests in a
partnership or any other equivalent of such ownership interest.

 

“ Capitalized Lease
Obligations “ shall mean, as to any Person, all rental obligations of such
Person, as lessee under a Capital Lease which are or will be required to be
capitalized on the books of such Person.

 

3

 

“ Cash Equivalent
Investment “ shall mean, at any time, (a) any evidence of Debt,
maturing not more than one year after such time, issued or guaranteed by the
United States government or any agency thereof, (b) commercial paper,
maturing not more than one year from the date of issue, or corporate demand
notes, in each case (unless issued by the Bank or its holding company) rated at
least A-l by Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. or P-l by Moody’s Investors
Service, Inc., (c) any certificate of deposit, time deposit or banker’s
acceptance, maturing not more than one year after such time, or any overnight
Federal Funds transaction that is issued or sold by the Bank or its holding
company (or by a commercial banking institution that is a member of the Federal
Reserve System and has a combined capital and surplus and undivided profits of
not less than Five Hundred Thousand and 00/100 Dollars ($500,000,000)),
(d) any repurchase agreement entered into with the Bank, or other
commercial banking institution of the nature referred to in clause (c) ,
which (i) is secured by a fully perfected security interest in any
obligation of the type described in any of clauses (a)  through (c)
 above, and (ii) has a market value at the time such repurchase
agreement is entered into of not less than 100% of the repurchase obligation of
the Bank, or other commercial banking institution, thereunder, (e) money
market accounts or mutual funds which invest exclusively in assets satisfying
the foregoing requirements, (f) other short term liquid investments
approved in writing by the Bank, (g) cash held outside the United States
to be deposited in a bank rated at least A-l by Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. or P-l by
Moody’s Investors Service, Inc., or any other bank acceptable to the Bank,
(h) cash held within the United States to be invested in short term
instruments for periods of less than 270 days and rated at least A-l by
Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or P-l by Moody’s Investors Service, Inc., to be held
in an institution acceptable to the Bank, and (i) Fully FDIC-insured
deposits (including CDARS deposits) held at any FDIC-insured bank.

 

“ Cash Proceeds “
shall have the meaning set forth in the UCC.

 

“ Change in Control “
shall mean if any party shall own and control, directly or indirectly, more of
the outstanding Capital Securities of the Borrower than those Capital
Securities that are owned and controlled, directly or indirectly, by Brian
Pratt.  For the purpose hereof, the terms “control” or “controlling” shall
mean the possession of the power to direct, or cause the direction of, the
management and policies of the Borrower by contract or voting of securities or
ownership interests.

 

“
Chattel Paper “ shall have the meaning set forth in the UCC.

 

“ Collateral “ shall
have the meaning set forth in Section 6.1 hereof.

 

“ Collateral Access
Agreement “ shall mean an agreement in form and substance reasonably
satisfactory to the Bank pursuant to which a mortgagee or lessor of real
property where the chief executive office of the Borrower is located or where
the chief executive office of any Subsidiary is located acknowledges the Liens
of the Bank and waives any Liens held by such Person on such property, and, in
the case of any such agreement with a mortgagee or lessor, permits the Bank
reasonable access to and use of such real property following the occurrence and
during the continuance of an Event of Default to assemble, complete and sell
any collateral stored or otherwise located thereon.

 

4

 

“
Commercial Tort Claims “ shall have the meaning set forth in the UCC.

 

“ Control Agreements “
shall mean those agreements in form and substance acceptable to the Bank
executed by the Borrower and any other banking institution(s) in favor of
the Bank or any Subsidiary and any other banking institution(s)  which
grants the Bank a security interest in the Account(s) held by the Borrower
at such other banking institution(s) and any Subsidiary at such other
banking institution(s).

 

“ Debt “ shall mean,
as to any Person, without duplication, (a) all borrowed money of such
Person (including principal, interest, fees and charges), whether or not
evidenced by bonds, debentures, notes or similar instruments; and (b) all
obligations, contingent or otherwise, with respect to the maximum face amount
of all letters of credit (whether or not drawn), bankers’ acceptances and
similar obligations issued for the account of such Person (including the
Letters of Credit), and all unpaid drawings in respect of such letters of
credit, bankers’ acceptances and similar obligations.  Notwithstanding the
foregoing, Debt shall not include trade payables and accrued expenses incurred
by such Person in accordance with customary practices and in the ordinary
course of business of such Person.

 

“ Default Rate “
shall mean a per annum rate of interest equal to the Base Rate  plus
two percent (2%).

 

“
Deposit Accounts “ shall have the meaning set forth in the UCC.

 

“ Depreciation “
shall mean the total amounts added to depreciation, amortization, obsolescence,
valuation and other proper reserves, as reflected on the Borrower’s financial
statements and determined in accordance with GAAP.

 

“
Documents “ shall have the meaning set forth in the UCC.

 

“
Electronic Chattel Paper “ shall have the meaning set forth in the UCC.

 

“ Employee Plan “
includes any pension, stock bonus, employee stock ownership plan, retirement,
profit sharing, deferred compensation, stock option, bonus or other incentive
plan, whether qualified or nonqualified, or any disability, medical, dental or
other health plan, life insurance or other death benefit plan, vacation benefit
plan, severance plan or other employee benefit plan or arrangement, including
those pension, profit-sharing and retirement plans of the Borrower described
from time to time in the financial statements of the Borrower and any pension
plan, welfare plan, Defined Benefit Pension Plans (as defined in ERISA) or any
multi-employer plan, maintained or administered by the Borrower or to which the
Borrower is a party or may have any liability or by which the Borrower is
bound.

 

“ Environmental Laws “
shall mean all present or future federal, state or local laws, statutes, common
law duties, rules, regulations, ordinances and codes, together with all
administrative or judicial orders, consent agreements, directed duties,
requests, licenses, authorizations and permits of, and agreements with, any
governmental authority, in each case relating to any matter arising out of or
relating to public health and safety, or pollution or protection of the
environment or workplace, including any of the foregoing relating to the
presence, use, production, generation, handling, transport, treatment, storage,
disposal, distribution, discharge, emission, release, threatened release,
control or cleanup of any Hazardous Substance.

 

5

 

“
Equipment “ shall have the meaning set forth in the UCC.

 

“ ERISA “ shall mean
the Employee Retirement Income Security Act of 1974, as amended from time to
time.

 

“ Excess Cash “ shall
mean Cash Equivalent Investments in excess of Five Million and 00/100 Dollars
($5,000,000.00).

 

“ Event of Default “
shall mean any of the events or conditions which are set forth in Section 11
hereof.

 

“ Federal Funds Rate “
shall mean, for any day, a fluctuating interest rate equal for each day during
such period to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for such day on such transactions received by the
Bank from three Federal funds brokers of recognized standing selected by the
Bank.  The Bank’s determination of such rate shall be binding and
conclusive absent manifest error.

 

“
Financial Assets “ shall have the meaning set forth in the UCC.

 

“ Fiscal Year “ means
the fiscal year of the Borrower and its Subsidiaries, which period shall be the
12-month period ending on Borrower’s Fiscal Year End of each year.

 

“ Fixed Assets “
shall mean land and buildings, motor vehicles, furniture, office equipment,
computers, fixtures and fittings, and plant and machinery.

 

“ GAAP “ shall mean
generally accepted accounting principles as set forth from time to time by the
Financial Accounting Standards Board in its Accounting Standards Codification
and the rules and interpretive releases of the Securities and Exchange
Commission under the authority of federal securities laws which are applicable
to the circumstances as of the date of determination, provided, however, that
interim financial statements or reports shall be deemed in compliance with GAAP
despite the absence of footnotes and fiscal year-end adjustments as required by
GAAP.

 

“
General Intangibles “ shall have the meaning set forth in the UCC.

 

“
Goods “ shall have the meaning set forth in the UCC.

 

6

 

“ Guarantor “ and “ Guarantors
“ shall mean, respectively, each of and collectively, the following
Persons:  ARB, Inc.; ARB Structures, Inc.; Cardinal
Contractors, Inc.; Cardinal Mechanical, LP; Juniper Rock Corporation;
OnQuest, Inc.; Stellaris, LLC; and any other Person signing a Guaranty.

 

“ Guaranties “ shall
mean the joint and several Guaranties executed by each domestic Subsidiary of
the Borrower in favor of the Bank.

 

“ Hazardous Substances
“ shall mean (a) any petroleum or petroleum products, radioactive
materials, asbestos in any form that is or could become friable, urea
formaldehyde foam insulation, dielectric fluid containing levels of
polychlorinated biphenyls, radon gas and mold; (b) any chemicals,
materials, pollutant or substances defined as or included in the definition of “hazardous
substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous
substances”, “restricted hazardous waste”, “toxic substances”, “toxic
pollutants”, “contaminants”, “pollutants” or words of similar import, under any
applicable Environmental Law; and (c) any other chemical, material or
substance, the exposure to, or release of which is prohibited, limited or
regulated by any governmental authority or for which any duty or standard of
care is imposed pursuant to, any Environmental Law.

 

“ Hedging Agreement “
shall mean any interest rate, currency or commodity swap agreement, cap
agreement or collar agreement, and any other agreement or arrangement designed
to protect a Person against fluctuations in interest rates, currency exchange
rates or commodity prices.

 

“ Hedging Obligation “
shall mean, with respect to any Person, any liability of such Person under any
Hedging Agreement.

 

“ Indemnified Party “
and “ Indemnified Parties “ shall mean, respectively, each of the Bank
and any parent corporation, Affiliate or Subsidiary of the Bank, and each of
their respective officers, directors, employees, attorneys and agents, and all
of such parties and entities.

 

“
Instruments “ shall have the meaning set forth in the UCC.

 

“ Intellectual Property
“ shall mean the collective reference to all rights, priorities and privileges
relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including copyrights, patents,
service marks and trademarks, and all registrations and applications for
registration therefor and all licensees thereof, trade names, domain names,
technology, know-how and processes, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.

 

7

 

“ Interest Charges “
shall mean, for any period, the sum of:  (a) all interest, charges
and related expenses payable with respect to that fiscal period to a lender in
connection with borrowed money or the deferred purchase price of assets that
are treated as interest in accordance with GAAP, plus (b) the
portion of Capitalized Lease Obligations with respect to that fiscal period
that should be treated as interest in accordance with GAAP, plus
(c) all charges paid or payable (without duplication) during that period
with respect to any Hedging Agreements.

 

“ Interest Period “
shall mean successive one week, two week, one month, two month, three month or
six month periods, beginning and ending as provided in this Agreement.

 

“ Inventory “ shall
have the meaning set forth in the UCC.

 

“ Investment “ shall
mean, with respect to any Person, any investment in another Person, whether by
acquisition of any debt or equity security, by making any loan or advance, by
becoming obligated with respect to a Contingent Liability in respect of
obligations of such other Person (other than travel and similar advances to
employees in the ordinary course of business).

 

“
Investment Property “ shall have the meaning set forth in the UCC.

 

“ Letter of Credit “
and “ Letters of Credit “ shall mean, respectively, a letter of credit
and all such letters of credit issued by the Bank, in its sole discretion, upon
the execution and delivery by the Borrower and the acceptance by the Bank of a
Master Letter of Credit Agreement and a Letter of Credit Application.

 

“ Letter of Credit
Application “ shall mean, with respect to any request for the issuance of a
Letter of Credit, a letter of credit application in the form being used by the
Bank at the time of such request for the type of Letter of Credit requested.

 

“ Letter of Credit
Commitment “ shall mean, at any time, an amount equal to Fifteen Million
and 00/100 Dollars ($15,000,000.00) which is a sub-limit of Revolving Loan A.

 

“ Letter of Credit Fee
“ shall have the meaning set forth in Section 2.1(j) .

 

“ Letter of Credit
Maturity Date “ shall mean the maturity date as set forth in the Master
Letter of Credit Agreement.

 

“ Letter of Credit
Obligations “ shall mean, at any time, an amount equal to the aggregate of
the original face amounts of all Letters of Credit minus the sum of
(i) the amount of any reductions in the original face amount of any Letter
of Credit which did not result from a draw thereunder, (ii) the amount of
any payments made by the Bank with respect to any draws made under a Letter of
Credit for which the Borrower has reimbursed the Bank, (iii) the amount of
any payments made by the Bank with respect to any draws made under a Letter of
Credit which have been converted to a Revolving Loan as set forth in Section 2.7
, and (iv) the portion of any issued but expired Letter of Credit which
has not been drawn by the beneficiary thereunder.  For purposes of
determining the outstanding Letter of Credit Obligations at any time, the Bank’s
acceptance of a draft drawn on the Bank pursuant to a Letter of Credit shall
constitute a draw on the applicable Letter of Credit at the time of such
acceptance.

 

8

 

“
Letter of Credit Rights “ shall have the meaning set forth in the UCC.

 

“ Liabilities “ shall
mean at all times all liabilities of the Borrower that would be shown as such
on a balance sheet of the Borrower prepared in accordance with GAAP.

 

“ LIBOR “ shall mean
a rate of interest equal to (a) the per annum rate of interest at which
United States dollar deposits for a period equal to the relevant Interest
Period are offered in the London Interbank Eurodollar market at 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period (or three Business Days prior to the commencement of such Interest
Period if banks in London, England were not open and dealing in offshore United
States dollars on such second preceding Business Day), as displayed in the Bloomberg Financial Markets system (or
other authoritative source selected by the Bank in its sole discretion),
divided by (b) a number determined by subtracting from 1.00 the then
stated maximum reserve percentage for determining reserves to be maintained by
member banks of the Federal Reserve System for Eurocurrency funding or
liabilities as defined in Regulation D (or any successor category of
liabilities under Regulation D), or as LIBOR is otherwise determined by the
Bank in its sole and absolute discretion.  The Bank’s determination of
LIBOR shall be conclusive, absent manifest error.

 

“ LIBOR Loan “ or “ LIBOR
Loans “ shall mean that portion, and collectively those portions, of the
aggregate outstanding principal balance of the Loans that bear interest at the
LIBOR Rate.

 

“ LIBOR Margin “
shall have the meaning as set forth in the Applicable Margin.

 

“ LIBOR Rate “ shall
mean a per annum rate of interest equal to LIBOR for the relevant Interest
Period, plus the Applicable Margin which LIBOR Rate shall remain fixed
during such Interest Period.

 

“ Lien “ shall mean,
with respect to any Person, any interest granted by such Person in any real or
personal property, asset or other right owned or being purchased or acquired by
such Person (including an interest in respect of a Capital Lease) which secures
payment or performance of any obligation and shall include any mortgage, lien,
encumbrance, title retention lien, charge or other security interest of any
kind, whether arising by contract, as a matter of law, by judicial process or
otherwise.

 

“ Loans “ shall mean
the Revolving Loans made by the Bank to the Borrower and all Letter of Credit
Obligations, under and pursuant to this Agreement.

 

“ Loan Documents “
shall mean each of the agreements, documents, instruments and certificates set
forth in Section 3.1 hereof, and any and all such other
instruments, documents, certificates and agreements from time to time executed
and delivered by the Borrower, the Guarantors or any of their Subsidiaries for
the benefit of the Bank pursuant to any of the foregoing, and all amendments,
restatements, supplements and other modifications thereto.

 

9

 

“ Master Letter of Credit
Agreement “ shall mean, at any time, with respect to the issuance of
Letters of Credit, a Master Letter of Credit Agreement in the form being used
by the Bank at such time.

 

“ Material “ shall
mean the description of any claim which could, if determined adversely, result
in a Material Adverse Effect.

 

“ Material Adverse Effect
“ shall mean (a) a material adverse change in, or a material adverse
effect upon, the assets, business, properties,  prospects, condition
(financial or otherwise) or results of operations of the Borrower and its
Subsidiaries taken as a whole, (b) a material impairment of the ability of
the Borrower and its Subsidiaries to perform any of the Obligations under any
of the Loan Documents, or (c) a material adverse effect on (i) any
substantial portion of the Collateral,  (ii) the legality, validity,
binding effect or enforceability against the Borrower and its Subsidiaries of
any of the Loan Documents, (iii) the perfection or priority of any Lien
granted to the Bank under any Loan Document, or (iv) the rights or
remedies of the Bank under any Loan Document.

 

“
Noncash Proceeds “ shall have the meaning set forth in the UCC.

 

“ Non-Excluded Taxes “
shall have the meaning set forth in Section 2.7(a)  hereof.

 

“ Notes “ shall mean
the Revolving Notes.

 

“ Obligations “ shall
mean the Loans, as evidenced by any Note, all interest accrued thereon
(including interest which would be payable as post-petition in connection with
any bankruptcy or similar proceeding, whether or not permitted as a claim
thereunder), any fees due the Bank hereunder, any expenses incurred by the Bank
hereunder, including without limitation, all liabilities and obligations under
this Agreement, under any other Loan Document, any reimbursement obligations of
the Borrower or any Subsidiary of the Borrower in respect of Letters of Credit,
all Hedging Obligations of the Borrower or any Subsidiary of the Borrower which
are owed to the Bank or any Affiliate of the Bank, and all Bank Product
Obligations of the Borrower or any Subsidiary of the Borrower, and any and all
other liabilities and obligations owed by the Borrower or any Subsidiary of the
Borrower to the Bank or any Affiliate of the Bank from time to time, howsoever
created, arising or evidenced, whether direct or indirect, joint or several,
absolute or contingent, now or hereafter existing, or due or to become due,
together with any and all renewals, extensions, restatements or replacements of
any of the foregoing.

 

“ Obligor “ shall
mean the Borrower, any Subsidiary of the Borrower, any Guarantor, accommodation
endorser, third party pledgor, or any other party liable with respect to the
Obligations.

 

“ Organizational
Identification Number “ means, with respect to Borrower, the organizational
identification number assigned to Borrower by the applicable governmental unit
or agency of the jurisdiction of organization of the Borrower.

 

10

 

“ Other Taxes “ shall
mean any present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies which arise from the execution,
delivery, enforcement or registration of, or otherwise with respect to, this
Agreement or any of the other Loan Documents.

 

“
Payment Intangibles “ shall have the meaning set forth in the UCC.

 

“ Permitted Liens “
shall mean (a) Liens for Taxes, assessments or other governmental charges
not at the time delinquent or thereafter payable without penalty or being
contested in good faith by appropriate proceedings and, in each case, for which
it maintains adequate reserves in accordance with GAAP and in respect of which
no Lien has been filed; (b) Liens arising in the ordinary course of business
(such as (i) Liens of carriers, warehousemen, mechanics and materialmen
and other similar Liens imposed by law, and (ii) Liens in the form of
deposits or pledges incurred in connection with worker’s compensation,
unemployment compensation and other types of social security (excluding Liens
arising under ERISA) or in connection with surety bonds, bids, performance
bonds and similar obligations) for sums not overdue or being contested in good
faith by appropriate proceedings and not involving any advances or borrowed
money or the deferred purchase price of property or services, which do not in
the aggregate materially detract from the value of the property or assets of
the Borrower or materially impair the use thereof in the operation of the
Borrower’s business and, in each case, for which it maintains adequate reserves
in accordance with GAAP and in respect of which no Lien has been filed;
(c) Liens described on Schedule 9.2 as of the Closing Date;
(d) attachments, appeal bonds, judgments and other similar Liens, for sums
not exceeding Five Hundred Thousand and 00/100 Dollars ($500,000.00) arising in
connection with court proceedings, provided the execution or other
enforcement of such Liens is effectively stayed and the claims secured thereby
are being actively contested in good faith and by appropriate proceedings and
to the extent such judgments or awards do not constitute an Event of Default
under Section 10.8 hereof; (e) easements, rights of way,
restrictions, minor defects or irregularities in title and other similar Liens
not interfering in any material respect with the ordinary conduct of the
business of the Borrower or any of its Subsidiaries; (f) Liens arising in
connection with Capitalized Lease Obligations (and attaching only to the
property being leased); (g) subject to the limitation set forth in Section 9.1(h) ,
Liens that constitute purchase money security interests on any property
securing Debt incurred for the purpose of financing all or any part of the cost
of acquiring such property, provided that any such Lien attaches to such
property within twenty (20) days of the acquisition thereof and attaches solely
to the property so acquired; (h) Liens granted to the Bank hereunder and
under the Loan Documents; (i) subject to the limitations set forth in Section 9.4
, Liens arising in connection with the incurrence of Capital Expenditures; and
(j) Liens for certain Equipment as approved by the Bank.

 

“ Person “ shall mean
any natural person, partnership, limited liability company, corporation, trust,
joint venture, joint stock company, association, unincorporated organization,
government or agency or political subdivision thereof, or other entity, whether
acting in an individual, fiduciary or other capacity.

 

“
Proceeds “ shall have the meaning set forth in the UCC.

 

11

 

“ Regulatory Change “
shall mean the introduction of, or any change in any applicable law, treaty,
rule, regulation or guideline or in the interpretation or administration
thereof by any governmental authority or any central bank or other fiscal,
monetary or other authority having jurisdiction over the Bank or its lending
office.

 

“ Revolving Interest Rate
“ shall mean either LIBOR plus the Applicable Margin or Base Rate plus the
Applicable Margin.

 

“ Revolving Loan “
and “ Revolving Loans “ shall mean, respectively, each loan and all
outstanding loans made by the Bank to the Borrower under and pursuant to this
Agreement, as set forth in Section 2.1 of this Agreement including
Revolving Loan A and Revolving Loan B.

 

“ Revolving Loan
Availability “ shall mean, at any time, an amount equal to the Revolving
Loan Commitment minus the Letter of Credit Obligations minus
outstanding Revolving Loans.

 

“ Revolving Loan A “
shall mean the Revolving Loan in the amount of the Revolving Loan A Commitment.

 

“ Revolving Loan B “
shall mean the Revolving Loan in the amount of the Revolving Loan B Commitment.

 

“ Revolving Loan A
Commitment “ shall mean Twenty Million and 00/100 Dollars ($20,000,000.00).

 

“ Revolving Loan B
Commitment “ shall mean Fifteen Million and 00/100 Dollars
($15,000,000.00).

 

“ Revolving Loan A
Maturity Date “ shall mean October 28, 2012, unless extended by the
Bank pursuant to any modification, extension or renewal note executed by the
Borrower and accepted by the Bank in its sole and absolute discretion in
substitution for the Revolving Note.

 

“ Revolving Loan B
Maturity Date “ shall mean October 27, 2010, unless extended by the
Bank pursuant to any modification, extension or renewal note executed by the
Borrower and accepted by the Bank in its sole and absolute discretion in
substitution for the Revolving Note.

 

“ Revolving Loan Maturity
Dates “ shall mean Revolving Loan A Maturity Date and Revolving Loan B
Maturity Date.

 

“ Revolving Notes “
shall mean revolving notes in the form prepared by and acceptable to the Bank,
dated as of the date hereof, each in the amount of the Revolving Loan A
Commitment and the Revolving Loan B Commitment and maturing on the Revolving
Loan A Maturity Date and the Revolving Loan B Maturity Date, duly executed by
the Borrower and payable to the order of the Bank, together with any and all
renewal, extension, modification or replacement notes executed by the Borrower
and delivered to the Bank and given in substitution therefor.

 

12

 

“
Securities “ shall have the meaning set forth in the UCC.

 

“ Senior Debt “ shall
mean all Debt of the Borrower and its Subsidiaries other than Subordinated
Debt.

 

“
Software “ shall have the meaning set forth in the UCC.

 

“ Subordinated Debt “
shall mean that portion of the Debt of the Borrower which is subordinated to
the Obligations in a manner satisfactory to the Bank, including right and time
of payment of principal and interest.

 

“ Subsidiary “ and “ Subsidiaries
“ shall mean, respectively, with respect to any Person, each and all such
corporations, partnerships, limited partnerships, limited liability companies,
limited liability partnerships, joint ventures or other entities of which or in
which such Person owns, directly or indirectly, such number of outstanding
Capital Securities as have more than fifty percent (50.00%) of the ordinary
voting power for the election of directors or other managers of such
corporation, partnership, limited liability company or other entity.
 Unless the context otherwise requires, each reference to Subsidiaries
herein shall be a reference to Subsidiaries of the Borrower.

 

“
Supporting Obligations “ shall have the meaning set forth in the UCC.

 

“ Tangible Assets “
shall mean the total of all assets appearing on a balance sheet of the Borrower
prepared in accordance with GAAP (with Inventory being valued at the lower of
cost or market), after deducting all proper reserves (including reserves for Depreciation)
minus the sum of (i) goodwill, patents, trademarks, prepaid expenses and
other personal property which is classified as intangible property in
accordance with GAAP, and (ii) any amounts due from shareholders, officers
or employees of the Borrower.

 

“ Tangible Net Worth “
shall mean at any time the total of Tangible Assets minus Liabilities plus
Subordinated Debt.

 

“ Taxes “ shall mean
any and all present and future taxes, duties, levies, imposts, deductions,
assessments, charges or withholdings, and any and all liabilities (including
interest and penalties and other additions to taxes) with respect to the
foregoing.

 

“ Total Debt “ shall
mean all Debt of the Borrower and its Subsidiaries, determined on a
consolidated basis, excluding Debt of the Borrower to Subsidiaries and Debt of
Subsidiaries to the Borrower or to other Subsidiaries .

 

“ UCC “ shall mean
the Uniform Commercial Code in effect in the state of Illinois from time to
time.

 

13

 

“ Unmatured Event of
Default “ shall mean any event which, with the giving of notice, the
passage of time or both, would constitute an Event of Default.

 

“ Un-Used Fee A “
shall have the meaning set forth in Section 8.23 hereof.

 

“ Un-Used Fee B “
shall have the meaning set forth in Section 8.24 hereof.

 

“ Un-Used Fees “
shall mean the Un-Used Fee A and the Un-Used Fee B.

 

“ Voidable Transfer “
shall have the meaning set forth in Section 13.21 hereof.

 

“ Wholly-Owned Subsidiary
“ shall mean any Subsidiary of which or in which the Borrower owns, directly or
indirectly, one hundred percent (100%) of the Capital Securities of such
Subsidiary.

 

1.2                                    Accounting
Terms .  Any accounting terms used in this Agreement which are not
specifically defined herein shall have the meanings customarily given them in
accordance with GAAP.  Calculations and determinations of financial and
accounting terms used and not otherwise specifically defined hereunder and the
preparation of financial statements to be furnished to the Bank pursuant hereto
shall be made and prepared, both as to classification of items and as to
amount, in accordance with sound accounting practices and GAAP as used in the
preparation of the financial statements of the Borrower on the date of this
Agreement.  If any changes in accounting principles or practices from
those used in the preparation of the financial statements are hereafter
occasioned by the promulgation of rules, regulations, pronouncements and
opinions by or required by the Financial Accounting Standards Board or the
American Institute of Certified Public Accountants (or any successor thereto or
agencies with similar functions), which results in a material change in the
method of accounting in the financial statements required to be furnished to
the Bank hereunder or in the calculation of financial covenants, standards or
terms contained in this Agreement, the parties hereto agree to enter into good
faith negotiations to amend such provisions so as equitably to reflect such
changes to the end that the criteria for evaluating the financial condition and
performance of the Borrower will be the same after such changes as they were
before such changes; and if the parties fail to agree on the amendment of such
provisions, the Borrower will furnish financial statements in accordance with
such changes, but shall provide calculations for all financial covenants,
perform all financial covenants and otherwise observe all financial standards
and terms in accordance with applicable accounting principles and practices in
effect immediately prior to such changes.  Calculations with respect to
financial covenants required to be stated in accordance with applicable
accounting principles and practices in effect immediately prior to such changes
shall be reviewed and certified by the Borrower’s accountants.

 

1.3
                                 Other Terms
Defined in UCC .  All other capitalized words and phrases used herein
and not otherwise specifically defined herein shall have the respective meanings
assigned to such terms in the UCC, to the extent the same are used or defined
therein.

 

14

 

1.4
                                 Other
Interpretive Provisions .

 

(a)                                 The meanings
of defined terms are equally applicable to the singular and plural forms of the
defined terms.  Whenever the context so requires, the neuter gender
includes the masculine and feminine, the single number includes the plural, and
vice versa, and in particular the word “Borrower” shall be so construed.

 

(b)                                
Section and Schedule references are to this Agreement unless otherwise
specified.  The words “hereof”, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement.

 

(c)                                 The term “including”
is not limiting, and means “including, without limitation”.

 

(d)                                 In the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including”; the words “to” and “until” each
mean “to but excluding”, and the word “through” means “to and including”.

 

(e)                                 Unless
otherwise expressly provided herein, (i) references to agreements
(including this Agreement and the other Loan Documents) and other contractual
instruments shall be deemed to include all subsequent amendments, restatements,
supplements and other modifications thereto, but only to the extent such
amendments, restatements, supplements and other modifications are not
prohibited by the terms of any Loan Document, and (ii) references to any
statute or regulation shall be construed as including all statutory and
regulatory provisions amending, replacing, supplementing or interpreting such
statute or regulation.

 

(f)                                 To the extent
any of the provisions of the other Loan Documents are inconsistent with the
terms of this Agreement, the provisions of this Agreement shall govern.

 

(g)                                 This Agreement
and the other Loan Documents may use several different limitations, tests or
measurements to regulate the same or similar matters.  All such
limitations, tests and measurements are cumulative and each shall be performed
in accordance with its terms.

 

Section 2.                                               COMMITMENT
OF THE BANK .

 

2.1.                                Revolving
Commitment . The basic terms of the Revolving Commitment are as follows:

 

(a)                                     Amount
..  The amount of the Revolving Commitment is Thirty-Five Million and
00/100 Dollars ($35,000,000.00) (the “Revolving Commitment”), but that amount
may be reduced and terminated pursuant to the provisions of this
Agreement.  The Revolving Loan A Commitment is Twenty Million and 00/100
Dollars ($20,000,000.00) and the Revolving Loan B Commitment is Fifteen Million
and 00/100 Dollars ($15,000,000.00).

 

15

 

(b)                                  Term
..  The Revolving Loan A Commitment shall terminate on the Revolving Loan A
Maturity Date and the Revolving Loan B Commitment shall terminate on the Revolving
Loan B Maturity Date.

 

(c)                                  Revolving
Loans .  Pursuant to the terms of this Agreement and the Revolving
Notes, Bank agrees that so long as the Revolving Commitment remains in effect,
to grant Borrower such Revolving Loans as Borrower may from time to time
request (“Revolving Loans”).   The Revolving Loans shall be used by
the Borrower for the purpose of working capital and general corporate purposes.

 

(d)                                  Revolving
Note .  The Revolving Loans shall be evidenced at all times by
Revolving Notes executed and delivered by the Borrower, payable to the order of
the Bank in a principal amount equal to the dollar amount of the Revolving Loan
A Commitment and the Revolving Loan B Commitment as in effect at the execution
and delivery of the Notes and being in the form prepared by and acceptable to
the Bank (as amended, restated, supplemented or otherwise modified from time to
time, the “Revolving Notes”).

 

(e)                                  Revolving
Loan Interest and Payments .  The principal amount of the Revolving
Loans outstanding from time to time shall bear interest at the applicable
Revolving Interest Rate.  Accrued and unpaid interest on the unpaid
principal balance of all Revolving Loans outstanding from time to time which
are Base Rate Loans, shall be due and payable on the last Business Day of each
month.  Accrued and unpaid interest on the unpaid principal balance of all
Revolving Loans outstanding from time to time which are LIBOR Loans shall be
payable on the last Business Day of each Interest Period, commencing on the
first such date to occur after the date hereof, on the date of any principal
repayment of a LIBOR Loan and on the Revolving Loan Maturity Dates. From and
after maturity, or after the occurrence and during the continuation of an Event
of Default, interest on the outstanding principal balance of the Revolving
Loans, at the option of the Bank, may accrue at the Default Rate and shall be
payable upon demand from the Bank.

 

(f)                                  Revolving
Loan Principal Payments .

 

(i)                                  Revolving
Loan Mandatory Payments .  All Revolving Loans hereunder shall be
repaid by the Borrower on the Revolving Loan Maturity Dates, unless payable
sooner pursuant to the provisions of this Agreement.  In the event the
aggregate outstanding principal balance of all Revolving Loans and Letter of
Credit Obligations hereunder exceeds the Revolving Loan Availability, the
Borrower shall, without notice or demand of any kind, immediately make such
repayments of the Revolving Loans or take such other actions as are
satisfactory to the Bank as shall be necessary to eliminate such excess.

 

16

 

(ii)                                  Optional
Prepayments .   The Borrower may from time to time prepay the
Revolving Loans which are Base Rate Loans, in whole or in part, without any
prepayment penalty whatsoever, provided that any prepayment of the entire
principal balance of the Base Rate Loans shall include accrued interest on such
Base Rate Loans to the date of such prepayment.

 

(g)                                  Revolving
Loan Requests .  A Revolving Loan is properly requested if requested
orally or in writing not later than 2:00 p.m. central of the Business Day
upon which that Revolving Loan is to be made.  Each request for a
Revolving Loan shall of itself constitute, both when made and when honored, a
representation and warranty by Borrower to Bank that Borrower is entitled to
obtain the requested Revolving Loan.  Bank is hereby directed, absent
notice from Borrower to the contrary, to disburse the proceeds of each
Revolving Loan to Borrower’s general checking account with Bank.  Bank
shall have no duty to follow, nor any liability for, the application of any
proceeds of any Revolving Loan.

 

(h)                                  Condition —
No Default .  In addition to the provisions contained in the Revolving
Notes, Borrower shall not be entitled to obtain any Revolving Loan under Section 2.1(c)  herein
if:

 

(i)                                 any default
under this Agreement or any other Loan Document shall then exist or would
thereupon begin to exist;

 

(ii)                                 any
representation or warranty made herein or in any Loan Document shall have
ceased to be true and complete in any material respect; or

 

(iii)                               
there shall have occurred any Material Adverse Effect on Borrower’s
financial condition, properties or business since the date of Borrower’s most
recent financial statements, if any, furnished to Bank pursuant to Section 8.8
..

 

Each credit request, both
when made and when honored, shall of itself constitute a continuing
representation and warranty by Borrower that Borrower is entitled to obtain,
and Bank is obligated to make, the requested Revolving Loan.

 

(i)                                  Amount
..  No Revolving Loan shall be made if, after giving effect thereto, the
aggregate unpaid principal balance of the Revolving Loans would exceed either
the amount of the Revolving Commitment minus the Revolving Loan Availability.

 

2.2.                                Letters of
Credit .  Subject to the terms and conditions of this Agreement and
upon (i) the execution by the Borrower and the Bank of a Master Letter of
Credit Agreement in form and substance acceptable to the Bank (together with
all amendments, modifications and restatements thereof, the “Master Letter of
Credit Agreement”), and (ii) the execution and delivery by the Borrower,
and the acceptance by the Bank, in its sole and absolute discretion, of a
Letter of Credit Application, the Bank agrees to issue for the account of the
Borrower such Letters of Credit in the standard form of the Bank and otherwise
in form and substance acceptable to the Bank, from time to time during the term
of this Agreement, provided that the Letter of Credit Obligations may not at
any time exceed the Letter of Credit Commitment and provided further, that no
Letter of Credit shall have an expiration date later than the Letter of Credit
Maturity Date.  The amount of any payments made by the Bank with respect
to draws

 

17

 

made by a beneficiary under
a Letter of Credit for which the Borrower has failed to reimburse the Bank upon
the earlier of (i) the Bank’s demand for repayment, or (ii) five
(5) days from the date of such payment to such beneficiary by the Bank,
shall be deemed to have been converted to a Revolving Loan as of the date such
payment was made by the Bank to such beneficiary.  Upon the occurrence of
an Event of a Default and at the option of the Bank, all Letter of Credit
Obligations shall be converted to Revolving Loans consisting of Base Rate
Loans, all without demand, presentment, protest or notice of any kind, all of
which are hereby waived by the Borrower. To the extent the provisions of the
Master Letter of Credit Agreement differ from, or are inconsistent with, the
terms of this Agreement, the provisions of this Agreement shall govern. The
Borrower shall pay the Bank a Letter of Credit Fee as per the Applicable
Margin.

 

2.3.                                Additional
LIBOR Loan Provisions .

 

(a)                                  LIBOR Loan
Prepayments .  Notwithstanding anything to the contrary contained
herein, the principal balance of any LIBOR Loan may not be prepaid in whole or
in part at any time.  If, for any reason, a LIBOR Loan is paid prior to
the last Business Day of any Interest Period, whether voluntary, involuntary,
by reason of acceleration or otherwise, each such prepayment of a LIBOR Loan
will be accompanied by the amount of accrued interest on the amount prepaid and
any and all costs, expenses, penalties and charges incurred by the Bank as a
result of the early termination or breakage of a LIBOR Loan, plus the amount,
if any, by which (i) the additional interest which would have been payable
during the Interest Period on the LIBOR Loan prepaid had it not been prepaid,
exceeds (ii) the interest which would have been recoverable by the Bank by
placing the amount prepaid on deposit in the domestic certificate of deposit
market, the eurodollar deposit market, or other appropriate money market
selected by the Bank, for a period starting on the date on which it was prepaid
and ending on the last day of the Interest Period for such LIBOR Loan. 
The amount of any such loss or expense payable by the Borrower to the Bank
under this section shall be determined in the Bank’s sole discretion based upon
the assumption that the Bank funded its loan commitment for LIBOR Loans in the
London Interbank Eurodollar market and using any reasonable attribution or
averaging methods which the Bank deems appropriate and practical, provided,
however, that the Bank is not obligated to accept a deposit in the London
Interbank Eurodollar market in order to charge interest on a LIBOR Loan at the
LIBOR Rate.

 

(b)                                  LIBOR
Unavailability .  If the Bank determines in good faith (which
determination shall be conclusive, absent manifest error) prior to the
commencement of any Interest Period that (i) the making or maintenance of
any LIBOR Loan would violate any applicable law, rule, regulation or directive,
whether or not having the force of law, (ii) United States dollar deposits in
the principal amount, and for periods equal to the Interest Period for funding
any LIBOR Loan are not available in the London Interbank Eurodollar market in
the ordinary course of business, (iii) by reason of circumstances
affecting the London Interbank Eurodollar market, adequate and fair means do
not exist for ascertaining the LIBOR Rate to be applicable to the relevant
LIBOR Loan, or (iv) the LIBOR Rate does not accurately reflect the cost to
the Bank of a LIBOR Loan, the Bank shall promptly notify the Borrower thereof
and, so long as the foregoing conditions continue, none of the Loans may be
advanced as a LIBOR Loan thereafter.  In addition, at the Borrower’s
option, each existing LIBOR Loan shall be immediately (i) converted to a
Base Rate Loan on the last Business Day of the then existing Interest Period,
or (ii) due and payable on the last Business Day of the then existing
Interest Period, without further demand, presentment, protest or notice of any
kind, all of which are hereby waived by the Borrower.

 

18

 

(c)                                  Regulatory
Change .  In addition, if, after the date hereof, a Regulatory Change
shall, in the reasonable determination of the Bank, make it unlawful for the
Bank to make or maintain the LIBOR Loans, then the Bank shall promptly notify
the Borrower and none of the Loans may be advanced as a LIBOR Loan
thereafter.  In addition, at the Borrower’s option, each existing LIBOR
Loan shall be immediately (i) converted to a Base Rate Loan on the last
Business Day of the then existing Interest Period or on such earlier date as
required by law, or (ii) due and payable on the last Business Day of the
then existing Interest Period or on such earlier date as required by law, all
without further demand, presentment, protest or notice of any kind, all of
which are hereby waived by the Borrower.

 

(d)                                  LIBOR
Indemnity .  If any Regulatory Change, or compliance by the Bank or
any Person controlling the Bank with any request or directive of any
governmental authority, central bank or comparable agency (whether or not
having the force of law) shall (a) impose, modify or deem applicable any
assessment, reserve, special deposit or similar requirement against assets held
by, or deposits in or for the account of or loans by, or any other acquisition
of funds or disbursements by, the Bank; (b) subject the Bank or any LIBOR
Loan to any tax, duty, charge, stamp tax or fee or change the basis of taxation
of payments to the Bank of principal or interest due from the Borrower to the
Bank hereunder (other than a change in the taxation of the overall net income
of the Bank); or (c) impose on the Bank any other condition regarding such
LIBOR Loan or the Bank’s funding thereof, and the Bank shall determine (which
determination shall be conclusive, absent manifest error) that the result of
the foregoing is to increase the cost to, or to impose a cost on, the Bank or
such controlling Person of making or maintaining such LIBOR Loan or to reduce
the amount of principal or interest received by the Bank hereunder, then the
Borrower shall pay to the Bank or such controlling Person, on demand, such
additional amounts as the Bank shall, from time to time, determine are
sufficient to compensate and indemnify the Bank for such increased cost or
reduced amount.

 

2.4.                                Interest
and Fee Computation; Collection of Funds .  Except as otherwise set
forth herein, all interest and fees shall be calculated on the basis of a year
consisting of 360 days and shall be paid for the actual number of days
elapsed.  Principal payments submitted in funds not immediately available
shall continue to bear interest until collected.  If any payment to be
made by the Borrower hereunder or under any Note shall become due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day and such extension of time shall be included in computing any
interest in respect of such payment.  Notwithstanding anything to the
contrary contained herein, the final payment due under any of the Loans must be
made by wire transfer or other immediately available funds.  All payments
made by the Borrower hereunder or under any of the Loan Documents shall be made
without setoff, counterclaim, or other defense.  To the extent permitted
by applicable law, all payments hereunder or under any of the Loan Documents
(including any payment of principal, interest, or fees) to, or for the benefit,
of any Person shall be made by the Borrower free and clear of, and without
deduction or withholding for, or account of, any taxes now or hereinafter
imposed by any taxing authority. The Borrower shall pay the Bank the Un-Used
Fee A and the Un-Used Fee B as per the Applicable Margin, which Un-Used Fees
shall be (A) calculated on the basis of a year consisting of 360 days,
(B) paid for the actual number of days elapsed, and (C) payable
quarterly in arrears on the last day of each March, June, September and
December, commencing on December 31, 2009, and on the Revolving Loan
Maturity Date.  Issued but undrawn Letters of Credit will count as
utilization for the purposes of calculating the Un-Used Fees.

 

19

 

2.5.                                Letters of
Credit .  Subject to the terms and conditions of this Agreement and
upon (i) the execution by the Borrower and the Bank of a Master Letter of
Credit Agreement in form and substance acceptable to the Bank (together with
all amendments, modifications and restatements thereof, the “Master Letter of
Credit Agreement”), and (ii) the execution and delivery by the Borrower,
and the acceptance by the Bank, in its sole and absolute discretion, of a
Letter of Credit Application, the Bank agrees to issue for the account of the
Borrower such Letters of Credit in the standard form of the Bank and otherwise
in form and substance acceptable to the Bank, from time to time during the term
of this Agreement, provided that the Letter of Credit Obligations may not at
any time exceed the Letter of Credit Commitment and provided further, that no
Letter of Credit shall have an expiration date later than the Letter of Credit
Maturity Date.  The amount of any payments made by the Bank with respect
to draws made by a beneficiary under a Letter of Credit for which the Borrower
has failed to reimburse the Bank upon the earlier of (i) the Bank’s demand
for repayment, or (ii) five (5) days from the date of such payment to such
beneficiary by the Bank, shall be deemed to have been converted to a Revolving
Loan as of the date such payment was made by the Bank to such
beneficiary.  Upon the occurrence of an Event of a Default and at the
option of the Bank, all Letter of Credit Obligations shall be converted to
Revolving Loans consisting of Base Rate Loans, all without demand, presentment,
protest or notice of any kind, all of which are hereby waived by the Borrower.
To the extent the provisions of the Master Letter of Credit Agreement differ
from, or are inconsistent with, the terms of this Agreement, the provisions of
this Agreement shall govern. The Borrower shall pay the Bank a Letter of Credit
Fee as per the Applicable Margin.

 

2.6.                                Taxes .

 

(a)                                 All payments
made by the Borrower under this Agreement shall be made free and clear of, and
without deduction or withholding for or on account of, any present or future
income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any governmental authority, excluding net income taxes
and franchise taxes (imposed in lieu of net income taxes) imposed on the Bank
as a result of a present or former connection between the Bank and the jurisdiction
of the governmental authority imposing such tax or any political subdivision or
taxing authority thereof or therein (other than any such connection arising
solely from the Bank having executed, delivered or performed its obligations or
received a payment under, or enforced, this Agreement or any other Loan
Document).  If any such non-excluded taxes, levies, imposts, duties,
charges, fees, deductions or withholdings (collectively, “Non-Excluded Taxes”)
or Other Taxes are required to be withheld from any amounts payable to the Bank
hereunder, the amounts so payable to the Bank shall be increased to the extent
necessary to yield to the Bank (after payment of all Non-Excluded Taxes and
Other Taxes) interest or any such other amounts payable hereunder at the rates
or in the amounts specified in this Agreement, provided, however, that the
Borrower shall not be required to increase any such amounts payable to the Bank
with respect to any Non-Excluded Taxes that are attributable to the Bank’s
failure to comply with the requirements of Section 3.7(c) .

 

20

 

(b)                                  The Borrower
shall pay any Other Taxes to the relevant governmental authority in accordance
with applicable law.

 

(c)                                  At the request
of the Borrower and at the Borrower’s sole cost, the Bank shall take reasonable
steps to (i) contest its liability for any Non-Excluded Taxes or Other
Taxes that have not been paid, or (ii) seek a refund of any Non-Excluded
Taxes or Other Taxes that have been paid.

 

(d)                                  Whenever any
Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as
possible thereafter the Borrower shall send to the Bank a certified copy of an
original official receipt received by the Borrower showing payment
thereof.  If the Borrower fails to pay any Non-Excluded Taxes or Other
Taxes when due to the appropriate taxing authority or fails to remit to the
Bank the required receipts or other required documentary evidence or if any
governmental authority seeks to collect a Non-Excluded Tax or Other Tax
directly from the Bank for any other reason, the Borrower shall indemnify the
Bank on an after-tax basis for any incremental taxes, interest or penalties
that may become payable by the Bank.

 

(e)                                  The agreements
in this Section shall survive the satisfaction and payment of the
Obligations and the termination of this Agreement.

 

2.7.                               All Loans
to Constitute Single Obligation .  The Loans shall constitute one
general obligation of the Borrower, and shall be secured by Bank’s priority
security interest in and Lien upon all of the Collateral and by all other
security interests, Liens, claims and encumbrances heretofore, now or at any
time or times hereafter granted by the Borrower and/or any Subsidiary to Bank.

 

Section 3.                                               CONDITIONS
OF BORROWING .

 

Notwithstanding any other
provision of this Agreement, the Bank shall not be required to disburse, make
or continue all or any portion of the Loans, if any of the following conditions
shall have occurred.

 

21

 

3.1.                                Loan
Documents .  The Borrower shall have failed to execute and deliver to
the Bank any of the following Loan Documents, all of which must be satisfactory
to the Bank and the Bank’s counsel in form, substance and execution:

 

(a)                                 Loan
Agreement .  Two copies of this Agreement duly executed by the
Borrower.

 

(b)                                   Revolving
Notes .  Revolving Notes duly executed by the Borrower, in the form
prepared by and acceptable to the Bank.

 

(c)                                   Master
Letter of Credit Agreement .  A Master Letter of Credit Agreement
prepared by and acceptable to the Bank, duly executed by the Borrower in favor
of the Bank.

 

(d)                                   Guaranties
..  Separate continuing unconditional joint and several Guaranties executed
by each of the Guarantors to and for the benefit of the Bank.

 

(e)                                   Security
Agreements .  Security Agreements executed by each of the Guarantors
to and for the benefit of the Bank.

 

(f)                                   Collateral
Access Agreement .  Collateral Access Agreements with respect to all
properties with Stockdale Investment Group, Inc. as the landlord and
commercially reasonable efforts to deliver by Closing a Collateral Access
Agreement with respect to the Borrower’s chief executive offices.

 

(g)                                   UCC
Financing Statements .  UCC Financing Statements which grant to Bank,
upon filing in the appropriate locations, a first perfected security interest
in the Collateral and UCC Financing Statements which grant to Bank, upon filing
in the appropriate locations, a first perfected security interest in certain
collateral, as determined by the Bank, of the Guarantors.

 

(h)                                   Search
Results; Lien Terminations .  Copies of UCC search reports dated such
a date as is reasonably acceptable to the Bank, listing all effective financing
statements which name the Borrower and any of its Subsidiaries under their
present names and any previous names, as debtors, together with (i) copies
of such financing statements, (ii) payoff letters evidencing repayment in
full of all existing Debt to be repaid with the Loans, the termination of all
agreements relating thereto and the release of all Liens granted in connection
therewith, with UCC or other appropriate termination statements and documents
effective to evidence the foregoing (other than Permitted Liens),
(iii) such other UCC termination statements as the Bank may reasonably
request and (iv) copies of tax lien and pending suit and judgment search
reports.

 

22

 

(i)                                   Organizational
and Authorization Document .  Copies of (i) the Articles of
Incorporation and Bylaws of the Borrower and each of its Subsidiaries;
(ii) resolutions of the board of directors of the Borrower and each of its
Subsidiaries approving and authorizing such Person’s execution, delivery and
performance of the Loan Documents to which it is party and the transactions
contemplated thereby; (iii) signature and incumbency certificates of the officers
of the Borrower and each of its Subsidiaries, executing any of the Loan
Documents, each of which the Borrower hereby certifies to be true and complete,
and in full force and effect without modification, it being understood that the
Bank may conclusively rely on each such document and certificate until formally
advised by the Borrower of any changes therein; and (iv) good standing
certificates in the state of incorporation of the Borrower and each of its
Subsidiaries and in each other state requested by the Bank.

 

(j)                                   Insurance
..  Evidence satisfactory to the Bank of the existence of insurance
required to be maintained pursuant to Section 8.6 , together with
evidence that the Bank has been named as a lender’s loss payee on all related
insurance policies.

 

(k)                                   Opinion of
Counsel to the Borrower .  An opinion of counsel to the Borrower in
form and substance acceptable to the Bank.

 

(l)                                   Additional
Documents .  Such other certificates, financial statements, schedules,
resolutions, opinions of counsel, notes and other documents which are provided
for hereunder or which the Bank shall require.

 

3.2.                                Condition
Subsequent .

 

(i)                                   Guaranties
and Security Agreements .  The Borrower shall cause any and each
domestic Subsidiary it acquires after the date of this Agreement to execute a
Guaranty and Security Agreement in favor of the Bank and in form prepared by
and acceptable to the Bank.

 

3.3.
                              Event of
Default .  Any Event of Default, or Unmatured Event of Default shall
have occurred and be continuing.

 

3.4.
                              Material
Adverse Effect .  The occurrence of any event having a Material
Adverse Effect upon the Borrower.

 

3.5.
                              Litigation
..  Any litigation or governmental proceeding shall have been instituted
against the Borrower or any of its officers or shareholders having a Material
Adverse Effect upon the Borrower.

 

3.6.
                              Representations
and Warranties .  Any representation or warranty of the Borrower
contained herein or in any Loan Document shall be untrue or incorrect as of the
date of any Loan as though made on such date, except to the extent such
representation or warranty expressly relates to an earlier date.

 

23

 

Section 4.   
NOTES EVIDENCING LOANS .

 

4.1.
                              Revolving
Notes .  The Revolving Loans shall be evidenced by the Revolving
Notes.  At the time of the initial disbursement of a Revolving Loan and at
each time any additional Revolving Loan shall be requested hereunder or a
repayment made in whole or in part thereon, a notation thereof shall be made on
the books and records of the Bank.  All amounts recorded shall be, absent
manifest error, conclusive and binding evidence of (i) the principal
amount of the Revolving Loans advanced hereunder and the amount of all Letter
of Credit Obligations, (ii) any accrued and unpaid interest owing on the
Revolving Loans, and (iii) all amounts repaid on the Revolving Loans or
the Letter of Credit Obligations.  The failure to record any such amount
or any error in recording such amounts shall not, however, limit or otherwise
affect the obligations of the Borrower under the Revolving Note to repay the
principal amount of the Revolving Loans, together with all interest accruing
thereon.

 

Section 5.                                               MANNER OF
BORROWING .

 

5.1.
                              Borrowing
Procedures .  Each Revolving Loan may be advanced either as a Base
Rate Loan or a LIBOR Loan.  Each Loan shall be made available to the
Borrower upon any written, verbal, electronic, telephonic or telecopy loan
request which the Bank in good faith believes to emanate from a properly
authorized representative of the Borrower, whether or not that is in fact the
case.  Each such request shall be effective upon receipt by the Bank,
shall be irrevocable, and shall specify the date, amount and type of borrowing
and, in the case of a LIBOR Loan, the initial Interest Period therefor. 
The Borrower shall select Interest Periods so as not to require a payment or
prepayment of any LIBOR Loan during an Interest Period for such LIBOR
Loan.  The final Interest Period must be such that its expiration occurs
on or before the Revolving Loan Maturity Date .
  A request for a Base Rate Loan must be received by the Bank no later
than 12:00 p.m. Chicago, Illinois time, on the day it is to be
funded.  A request for a LIBOR Loan must be (i) received by the Bank
no later than 12:00 p.m. Chicago, Illinois time, three days before
the day it is to be funded, and (ii) in an amount equal to One Hundred
Thousand and 00/100 Dollars ($100,000.00) or a higher integral multiple of One
Hundred Thousand and 00/100 Dollars ($100,000.00).  The proceeds of each
Loan shall be made available at the office of the Bank by credit to the account
of the Borrower or by other means requested by the Borrower and acceptable to
the Bank.  The Borrower does hereby irrevocably confirm, ratify and
approve all such advances by the Bank and does hereby indemnify the Bank
against losses and expenses (including court costs, attorneys’ and paralegals’
fees) and shall hold the Bank harmless with respect thereto.

 

5.2.
                              LIBOR
Conversion and Continuation Procedures .  Each LIBOR Loan shall
automatically renew for the Interest Period specified in the initial request
received by the Bank pursuant to Section 5.1, at the then current LIBOR
Rate unless the Borrower, pursuant to a subsequent written notice received by
the Bank, shall elect a different Interest Period or the conversion of all or a
portion of such LIBOR Loan to a Base Rate Loan .  Each Interest Period occurring after the initial
Interest Period with respect to any LIBOR Loan shall commence on the same day
of each applicable month as the first day of the initial Interest Period. 
Whenever the last day of any Interest Period with respect to any LIBOR Loan
would otherwise occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding Business
Day.  Whenever an Interest Period with respect to any LIBOR Loan would
otherwise end on a day of a month for which there is no numerically
corresponding day in the calendar month, such Interest Period shall end on the
last day of such calendar month, unless such day is not a Business Day, in
which event such Interest Period shall be extended to end on the next Business
Day.   Upon receipt by the
Bank of such subsequent notice, the Borrower may, subject to the terms and
conditions of this Agreement, elect, as of the last day of the applicable
Interest Period, to continue any LIBOR Loan having an Interest Period expiring
on such day for a different Interest Period, or to convert any such LIBOR Loan
to a Base Rate Loan.  Such notice shall, in the case of a conversion to a
Base Rate Loan, be given before 12:00 p.m., Chicago time, on the proposed
date of such conversion, and in the case of conversion to a LIBOR Loan having a
different Interest Period, be given before 12:00 p.m., Chicago time, at
least three Business Days prior to the proposed date of such conversion,
specifying: (i) the proposed date of conversion; (ii) the aggregate
amount of Loans to be converted; (iii) the type of Loans resulting from
the proposed conversion; and (iv) the duration of the requested Interest
Period.  The Borrower may not elect a LIBOR Rate, and an Interest Period
for a LIBOR Loan shall not automatically renew, with respect to any principal
amount which is scheduled to be repaid before the last day of the applicable
Interest Period, and any such amounts shall bear interest at the Base Rate Rate
plus Applicable Margin.

 

24

 

5.3.
                              Letters of
Credit .  All Letters of Credit shall bear such application, issuance,
renewal, negotiation and other fees and charges, and bear such interest as
charged by the Bank or otherwise payable pursuant to the Master Letter of
Credit Agreement.  In addition to the foregoing, each standby Letters of
Credit issued under and pursuant to this Agreement shall bear an annual fee
equal to the LIBOR spread of the Applicable Margin based on the face amount of
such standby Letter of Credit, payable by the Borrower prior to the issuance by
the Bank of such Letter of Credit and annually thereafter, until (i) such
Letter of Credit has expired or has been returned to the Bank, or (ii) the
Bank has paid the beneficiary thereunder the full face amount of such Letter of
Credit.

 

5.4.
                              Automatic
Debit .  In order to effectuate the timely payment of any of the
Obligations when due, the Borrower hereby authorizes and directs the Bank, at
the Bank’s option, to (a) debit the amount of the Obligations to any
ordinary deposit account of the Borrower, or (b) make a Revolving Loan
hereunder to pay the amount of the Obligations.

 

5.5.
                              Discretionary
Disbursements .  The Bank, in its sole and absolute discretion, may
immediately upon notice to the Borrower, disburse any or all proceeds of the
Loans made or available to the Borrower pursuant to this Agreement to pay any
fees, costs, expenses or other amounts required to be paid by the Borrower
hereunder and not so paid.  All monies so disbursed shall be a part of the
Obligations, payable by the Borrower on demand from the Bank.

 

Section 6.                                               SECURITY
FOR THE OBLIGATIONS .

 

6.1.
                              Security
for Obligations .  As security for the payment and performance of the
Obligations, the Borrower does hereby pledge, assign, transfer, deliver and
grant to the Bank, for its own benefit and as agent for its Affiliates, a
continuing and unconditional first priority security interest in and to any and
all property of the Borrower, of any kind or description, tangible or
intangible, wheresoever located and whether now existing or hereafter arising
or acquired, including the following (all of which property, along with the
products and proceeds therefrom, are individually and collectively referred to
as the “Collateral”):

 

25

 

(a)                                  all property
of, or for the account of, the Borrower now or hereafter coming into the
possession, control or custody of, or in transit to, the Bank or any agent or
bailee for the Bank or any parent, Affiliate or Subsidiary of the Bank or any
participant with the Bank in the Loans (whether for safekeeping, deposit,
collection, custody, pledge, transmission or otherwise), including all
earnings, dividends, interest, or other rights in connection therewith and the
products and proceeds therefrom, including the proceeds of insurance thereon;
and

 

(b)                                  the additional
property of the Borrower, whether now existing or hereafter arising or
acquired, and wherever now or hereafter located, together with all additions
and accessions thereto, substitutions, betterments and replacements therefor,
products and Proceeds therefrom, and all of the Borrower’s books and records
and recorded data relating thereto (regardless of the medium of recording or
storage), together with all of the Borrower’s right, title and interest in and
to all computer software required to utilize, create, maintain and process any
such records or data on electronic media, identified and set forth as follows:

 

(i)                                  All Accounts
and all Goods whose sale, lease or other disposition by the Borrower has given
rise to Accounts and have been returned to, or repossessed or stopped in
transit by, the Borrower, or rejected or refused by an Account Debtor;

 

(ii)                                
All Inventory, including raw materials, work-in-process and finished
goods;

 

(iii)                              All Goods
(other than Inventory), including embedded software, Equipment (excluding any
Equipment subject to a Permitted Lien), and furniture;

 

(iv)                            
Cash;

 

(v)                              All Software
and computer programs;

 

(vi)                            
All Securities, Investment Property, Financial Assets and Deposit
Accounts;

 

(vii)                          All Chattel
Paper, Electronic Chattel Paper, Instruments, Documents, Letter of Credit
Rights, all proceeds of letters of credit, Supporting Obligations, notes
secured by real estate, Commercial Tort Claims and General Intangibles,
including Payment Intangibles;

 

26

 

(viii)                       All Hedging
Obligations;

 

(ix)                              All Proceeds
(whether Cash Proceeds or Noncash Proceeds) of the foregoing property, including
all insurance policies and proceeds of insurance payable by reason of loss or
damage to the foregoing property, including unearned premiums, and of eminent
domain or condemnation awards; and

 

provided, however, that
notwithstanding any of the other provisions set forth in this Section 6
, this Agreement shall not constitute a grant of a security interest in any
property to the extent that such grant of a security interest is prohibited by
any requirements of any law, rule or regulation of a governmental authority;
provided, further, that in no event shall the Collateral include equity
securities in excess of shares or membership interest representing One Hundred
Percent (100%) of the nonvoting stock or membership interests and Sixty-Five
Percent (65%) of the total combined voting power of all classes of stock or
membership interests entitled to vote of any foreign Subsidiary (excluding ARB
ARENDAL), if such action would result in adverse, incremental tax liabilities
under Section 956 of the Internal Revenue Code; provided, further, that
the Collateral shall not include (i) any rights or interest in any
contract, lease, permit, license, charter or license agreement entered into by
Borrower prior to the date of this Agreement and covering personal property of the
Borrower if under the terms of such contract, lease, permit, license, charter
or license agreement, or applicable law with respect thereto, the valid grant
of a security interest or lien therein to the Bank is prohibited as a matter of
law or under the terms of such contract, lease, permit, license, charter or
license agreement and such prohibition has not been or is not waived or the
consent of the other party to such contract, lease, permit, license, charter or
license agreement has not been or is not otherwise obtained, or (ii) any
intent-to-use trademark or service mark application contained in General
Intangibles if granting a security interest would result in an assignment of
such applications to the Bank upon an Event of Default that would be deemed to
invalidate, void, cancel or abandon such applications, provided that, the
foregoing exclusion shall in no way be construed (a) to apply if any
described prohibition is unenforceable under Section 9-406, 9-407 or 9-408
of the UCC or other applicable law, or (b) so as to limit, impair or
otherwise affect the Bank’s continuing security interests in and liens upon any
rights or interests of Borrower in or to monies due or to become due under any
described contract, lease, permit, license, charter or license agreement
(including any Accounts), or (c) to limit, impair or otherwise affect the
Bank’s continuing security interests in and liens upon any rights or interest
of the Borrower in and to any proceeds from the sale, license, lease or other
dispositions of any such contract, lease, permit, license, charter or license
agreement, or stock, or (d) to include any intent-to-use trademark or
service mark applications at such time as the same include an amendment or
allege use or statement of use.

 

27

 

6.2.
                              Other
Collateral .  In addition, the Obligations are also secured by the
Guaranties, Security Agreements and, if required pursuant to Section 12.5
hereof, Control Agreements.

 

6.3.                               Possession
and Transfer of Collateral .  Unless an Event of Default exists
hereunder, the Borrower shall be entitled to possession or use of the
Collateral (other than Instruments or Documents, Tangible Chattel Paper, Investment
Property consisting of certificated securities and other Collateral required to
be delivered to the Bank pursuant to this Section 6).  The
cancellation or surrender of any Note, upon payment or otherwise, shall not
affect the right of the Bank to retain the Collateral for any other of the
Obligations.  The Borrower shall not sell, assign (by operation of law or
otherwise), license, lease or otherwise dispose of, or grant any option with
respect to any of the Collateral, except that the Borrower may sell Inventory
in the ordinary course of business and may sell property, plant and Equipment
in the ordinary course of business.

 

6.4.
                              Financing
Statements .  The Borrower shall, at the Bank’s request, at any time
and from time to time, execute and deliver to the Bank such financing
statements, amendments and other documents and do such acts as the Bank deems
necessary in order to establish and maintain valid, attached and perfected
first priority security interests in the Collateral in favor of the Bank, free
and clear of all Liens and claims and rights of third parties whatsoever,
except Permitted Liens.  The Borrower hereby irrevocably authorizes the
Bank at any time, and from time to time, to file in any jurisdiction any initial
financing statements and amendments thereto without the signature of the
Borrower that (a) indicate the Collateral (i) is comprised of all
assets of the Borrower or words of similar effect, regardless of whether any
particular asset comprising a part of the Collateral falls within the scope of
Article 9 of the Uniform Commercial Code of the jurisdiction wherein such
financing statement or amendment is filed, or (ii) as being of an equal or
lesser scope or within greater detail as the grant of the security interest set
forth herein, and (b) contain any other information required by
Section 5 of Article 9 of the Uniform Commercial Code of the
jurisdiction wherein such financing statement or amendment is filed regarding
the sufficiency or filing office acceptance of any financing statement or
amendment, including (i) whether the Borrower is an organization, the type
of organization and any Organizational Identification Number issued to the
Borrower, and (ii) in the case of a financing statement filed as a fixture
filing or indicating Collateral as as-extracted collateral or timber to be cut,
a sufficient description of the real property to which the Collateral
relates.  The Borrower hereby agrees that a photocopy or other
reproduction of this Agreement is sufficient for filing as a financing
statement and the Borrower authorizes the Bank to file this Agreement as a
financing statement in any jurisdiction.  The Borrower agrees to furnish
any such information to the Bank promptly upon request.  The Borrower further
ratifies and affirms its authorization for any financing statements and/or
amendments thereto, executed and filed by the Bank in any jurisdiction prior to
the date of this Agreement.  In addition, the Borrower shall make
appropriate entries on its books and records disclosing the Bank’s security
interests in the Collateral.

 

6.5.
                              Additional
Collateral .  The Borrower shall deliver to the Bank immediately upon
its demand, such other collateral as the Bank may from time to time request,
should the value of the Collateral, in the Bank’s sole and absolute discretion,
decline, deteriorate, depreciate or become impaired, and does hereby grant to
the Bank a continuing security interest in such other collateral, which, when
pledged, assigned and transferred to the Bank shall be and become part of the
Collateral.  The Bank’s security interests in all of the foregoing
Collateral shall be valid, complete and perfected whether or not covered by a
specific assignment.

 

28

 

6.6.
                              Preservation
of the Collateral .  The Bank may, but is not required, to take such
actions from time to time as the Bank deems appropriate to maintain or protect
the Collateral.  The Bank shall have exercised reasonable care in the
custody and preservation of the Collateral if the Bank takes such action as the
Borrower shall reasonably request in writing which is not inconsistent with the
Bank’s status as a secured party, but the failure of the Bank to comply with
any such request shall not be deemed a failure to exercise reasonable care;
provided, however, the Bank’s responsibility for the safekeeping of the
Collateral shall (i) be deemed reasonable if such Collateral is accorded
treatment substantially equal to that which the Bank accords its own property,
and (ii) not extend to matters beyond the control of the Bank, including
acts of God, war, insurrection, riot or governmental actions.  In
addition, any failure of the Bank to preserve or protect any rights with
respect to the Collateral against prior or third parties, or to do any act with
respect to preservation of the Collateral, not so requested by the Borrower,
shall not be deemed a failure to exercise reasonable care in the custody or
preservation of the Collateral.  The Borrower shall have the sole
responsibility for taking such action as may be necessary, from time to time,
to preserve all rights of the Borrower and the Bank in the Collateral against
prior or third parties.  Without limiting the generality of the foregoing,
where Collateral consists in whole or in part of securities, the Borrower
represents to, and covenants with, the Bank that the Borrower has made
arrangements for keeping informed of changes or potential changes affecting the
securities (including rights to convert or subscribe, payment of dividends,
reorganization or other exchanges, tender offers and voting rights), and the
Borrower agrees that the Bank shall have no responsibility or liability for
informing the Borrower of any such or other changes or potential changes or for
taking any action or omitting to take any action with respect thereto.

 

6.7.
                                  Other
Actions as to any and all Collateral .  
The Borrower further agrees to take any other action reasonably requested by
the Bank to ensure the attachment, perfection and first priority of, and the
ability of the Bank to enforce, the Bank’s security interest in any and all of
the Collateral, including (a) causing the Bank’s name to be noted as
secured party on any certificate of title for a titled good if such notation is
a condition to attachment, perfection or priority of, or ability of the bank to
enforce, the Bank’s security interest in such Collateral, (b) complying
with any provision of any statute, regulation or treaty of the United States as
to any Collateral if compliance with such provision is a condition to
attachment, perfection or priority of, or ability of the Bank to enforce, the
Bank’s security interest in such Collateral, (c) obtaining governmental
and other third party consents and approvals, including any consent of any
licensor, lessor or other Person obligated on Collateral, (d) obtaining
waivers from mortgagees and landlords in form and substance acceptable to the
Bank, and (e) taking all actions required by the UCC in effect from time
to time or by other law, as applicable in any relevant UCC jurisdiction, or by
other law as applicable in any foreign jurisdiction.  The Borrower further
agrees to indemnify and hold the Bank harmless against claims of any Persons
not a party to this Agreement concerning disputes arising over the Collateral.

 

6.8.
                              Commercial
Tort Claims .  If the Borrower shall at any time hold or acquire a
Commercial Tort Claim of Five Hundred Thousand and 00/100 Dollars
($500,000.00), the Borrower shall immediately notify the Bank in writing signed
by the Borrower of the details thereof and grant to the Bank in such writing a
security interest therein and in the proceeds thereof, all upon the terms of
this Agreement, in each case in form and substance acceptable to the Bank, and
shall execute any amendments hereto deemed reasonably necessary by the Bank to
perfect its security interest in such Commercial Tort Claim.

 

29

 

6.9.
                              Electronic
Chattel Paper and Transferable Records .  If the Borrower at any time
holds or acquires an interest in any electronic chattel paper or any “transferable
record”, as that term is defined in Section 201 of the federal Electronic
Signatures in Global and National Commerce Act, or in Section 16 of the
Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
the Borrower shall promptly notify the Bank thereof and, at the request of the
Bank, shall take such action as the Bank may reasonably request to vest in the
Bank control under Section 9-105 of the UCC of such electronic chattel
paper or control under Section 201 of the federal Electronic Signatures in
Global and National Commerce Act or, as the case may be, Section 16 of the
Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
such transferable record.  The Bank agrees with the Borrower that the Bank
will arrange, pursuant to procedures satisfactory to the Bank and so long as
such procedures will not result in the Bank’s loss of control, for the Borrower
to make alterations to the electronic chattel paper or transferable record
permitted under Section 9-105 of the UCC or, as the case may be,
Section 201 of the federal Electronic Signatures in Global and National
Commerce Act or Section 16 of the Uniform Electronic Transactions Act for
a party in control to make without loss of control.

 

Section 3.    
REPRESENTATIONS AND WARRANTIES .

 

To induce the Bank to make
the Loans, the Borrower makes the following representations and warranties to
the Bank, each of which shall survive the execution and delivery of this
Agreement:

 

7.1.
                                  Borrower
Organization and Name .  The Borrower is a corporation duly organized,
existing and in good standing under the laws of the State of Delaware, with
full and adequate power to carry on and conduct its business as presently
conducted and each Subsidiary is validly existing and in good standing under
the laws of the jurisdiction of its organization.  The Borrower and each
Subsidiary is duly licensed or qualified in all foreign jurisdictions wherein
the nature of its activities require such qualification or licensing, except
for such jurisdictions where the failure to so qualify would not have a
Material Adverse Effect.  The Borrower’s Organizational Identification
Number is XXXXXXX.  The exact legal name of the Borrower is as set forth
in the first paragraph of this Agreement, and the Borrower currently does not
conduct, nor has it during the last five (5) years conducted, business
under any other name or trade name.

 

7.2.
                              Authorization
..  The Borrower has full right, power and authority to enter into this
Agreement, to make the borrowings and execute and deliver the Loan Documents as
provided herein and to perform all of its duties and obligations under this
Agreement and the other Loan Documents.  The execution and delivery of
this Agreement and the other Loan Documents will not, nor will the observance
or performance of any of the matters and things herein or therein set forth,
violate or contravene any provision of law or of the articles of incorporation
or bylaws of the Borrower.  All necessary and appropriate action has been
taken on the part of the Borrower to authorize the execution and delivery of
this Agreement and the Loan Documents.

 

30

 

7.3.
                             
Validity and Binding Nature .  This Agreement and
the other Loan Documents are the legal, valid and binding obligations of the
Borrower, enforceable against the Borrower in accordance with their terms,
subject to bankruptcy, insolvency and similar laws affecting the enforceability
of creditors’ rights generally and to general principles of equity.

 

7.4.
                             
Consent; Absence of Breach .  The execution,
delivery and performance of this Agreement, the other Loan Documents and any
other documents or instruments to be executed and delivered by the Borrower in
connection with the Loans, and the borrowings by the Borrower hereunder, do not
and will not (a) require any consent, approval, authorization of, or
filings with, notice to or other act by or in respect of, any governmental
authority or any other Person (other than any consent or approval which has
been obtained and is in full force and effect); (b) conflict with
(i) any provision of law or any applicable regulation, order, writ,
injunction or decree of any court or governmental authority, (ii) the
articles of incorporation or bylaws of the Borrower or any of its Subsidiaries , or (iii) any material agreement,
indenture, instrument or other document, or any judgment, order or decree,
which is binding upon the Borrower or any of its Subsidiaries or any of their
respective properties or assets; or (c) require, or result in, the
creation or imposition of any Lien on any asset of Borrower or any of its Subsidiaries,
other than Liens in favor of the Bank created pursuant to this Agreement.

 

7.5.
                             
Ownership of Properties; Liens .  The Borrower is the
sole owner of all of its properties and assets, real and personal, tangible and
intangible, of any nature whatsoever (including patents, trademarks, trade
names, service marks and copyrights), free and clear of all Liens, charges and
claims (including infringement claims with respect to patents, trademarks,
service marks, copyrights and the like), other than Permitted Liens.

 

7.6.
                             
Equity Ownership .  All issued and outstanding Capital
Securities of the Borrower and each of its Subsidiaries are duly authorized and
validly issued, fully paid, non-assessable, and free and clear of all Liens
other than those in favor of the Bank, if any, and such securities were issued
in compliance with all applicable state and federal laws concerning the
issuance of securities.  As of the date hereof, there are no pre-emptive
or other outstanding rights, options, warrants, conversion rights or other
similar agreements or understandings for the purchase or acquisition of any
Capital Securities of the Borrower and each of its Subsidiaries.

 

7.7.
                             
Intellectual Property .  The Borrower owns
and possesses or has a license or other right to use all Intellectual Property,
as are necessary for the conduct of the businesses of the Borrower, without any
infringement upon rights of others which could reasonably be expected to have a
Material Adverse Effect upon the Borrower, and no material claim has been
asserted and is pending by any Person challenging or questioning the use of any
Intellectual Property or the validity or effectiveness of any Intellectual Property
nor does the Borrower know of any valid basis for any such claim.

 

7.8.                              
Financial Statements .  All financial
statements submitted to the Bank have been prepared in accordance with sound
accounting practices and GAAP on a basis, except as otherwise noted therein,
consistent with the previous fiscal year and present fairly the financial
condition of the Borrower and the results of the operations for the Borrower as
of such date and for the periods indicated.  Since the date of the most
recent financial statement submitted by the Borrower to the Bank, there has
been no change in the financial condition or in the assets or liabilities of
the Borrower having a Material Adverse Effect on the Borrower.

 

31

 

7.9.
                             
Litigation and Other Liabilities .  There is no
litigation, arbitration proceeding, demand, charge, claim, petition or
governmental investigation or proceeding pending, or threatened, against the
Borrower, which, if adversely determined, which might reasonably be expected to
have a Material Adverse Effect upon the Borrower.  A schedule of all
litigation which is not covered by the Borrower’s insurance policies is
attached hereto as Schedule 7.9 . Other than any liability incident to
such litigation or proceedings, the Borrower has no Material guarantee
obligations, contingent liabilities, liabilities for taxes, or any long-term
leases or unusual forward or long-term commitments, including any interest rate
or foreign currency swap or exchange transaction or other obligation in respect
of derivatives, that are not fully-reflected or fully reserved for in the most
recent audited financial statements delivered pursuant to Section 8.8
..

 

7.10.                        
Event of Default .  No Event of Default or Unmatured
Event of Default exists or would result from the incurrence by the Borrower of
any of the Obligations hereunder or under any of the other Loan Document, and
the Borrower is not in default (without regard to grace or cure periods) under
any other contract or agreement to which it is a party .

 

7.11.
                       
Adverse Circumstances .  No condition,
circumstance, event, agreement, document, instrument, restriction, litigation
or proceeding (or threatened litigation or proceeding or basis therefor) exists
which (a) would have a Material Adverse Effect upon the Borrower, or
(b) would constitute an Event of Default or an Unmatured Event of Default.

 

7.12.
                       
Environmental Laws and Hazardous Substances .  The
Borrower has not generated, used, stored, treated, transported, manufactured,
handled, produced or disposed of any Hazardous Substances, on or off any of the
premises of the Borrower (whether or not owned by it) in any manner which at
any time violates in any Material respect any Environmental Law or any license,
permit, certificate, approval or similar authorization thereunder.  The
Borrower will comply in all Material respects with all Environmental Laws and
will obtain all Material licenses, permits certificates, approvals and similar
authorizations thereunder.  To Borrower’s knowledge, there has been no
investigation, proceeding, complaint, order, directive, claim, citation or
notice by any governmental authority or any other Person, nor is any pending
or, to the best of the Borrower’s knowledge, threatened, and the Borrower shall
immediately notify the Bank upon becoming aware of any such investigation,
proceeding, complaint, order, directive, claim, citation or notice, and shall
take prompt and appropriate actions to respond thereto, with respect to any
Material non-compliance with, or violation of, the requirements of any
Environmental Law by the Borrower or the release, spill or discharge, threatened
or actual, of any Hazardous Material or the generation, use, storage,
treatment, transportation, manufacture, handling, production or disposal of any
Hazardous Material or any other environmental, health or safety matter against
the Borrower or its business, operations or assets or, to the Borrower’s
knowledge, any properties at which the Borrower has transported, stored or
disposed of any Hazardous Substances.  The Borrower has no Material
liability, contingent or otherwise, in connection with a release, spill or
discharge, threatened or actual, of any Hazardous Substances or the generation,
use, storage, treatment, transportation, manufacture, handling, production or
disposal of any Hazardous Material.  Upon reasonable prior notice from the
Bank, the Borrower further agrees to allow the Bank or its agent access to the
properties of the Borrower and its Subsidiaries to confirm compliance with all
Environmental Laws, and the Borrower shall, following determination by the Bank
that there is Material non-compliance, or any condition which requires any
action by or on behalf of the Borrower in order to avoid any Material
non-compliance, with any Environmental Law, at the Borrower’s sole expense,
cause an independent environmental engineer acceptable to the Bank to conduct
such tests of the relevant site as are appropriate, and prepare and deliver a
report setting forth the result of such tests, a proposed plan for remediation
and an estimate of the costs thereof.

 

32

 

7.13.
                       
Solvency, etc .  As of the date hereof, and
immediately prior to and after giving effect to the issuance of each Letter of
Credit and each Loan hereunder and the use of the proceeds thereof,
(a) the fair value of the Borrower’s assets is greater than the amount of
its liabilities (including disputed, contingent and unliquidated liabilities)
as such value is established and liabilities evaluated as required under the
Section 548 of the Bankruptcy Code, (b) the present fair saleable
value of the Borrower’s assets is not less than the amount that will be
required to pay the probable liability on its debts as they become absolute and
matured, (c) the Borrower is able to realize upon its assets and pay its
debts and other liabilities (including disputed, contingent and unliquidated
liabilities) as they mature in the normal course of business, (d) the
Borrower does not intend to, and does not believe that it will, incur debts or
liabilities beyond its ability to pay as such debts and liabilities mature, and
(e) the Borrower is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which its property would
constitute unreasonably small capital.

 

7.14.
                       
ERISA Obligations .  All Employee Plans of the Borrower
meet the minimum funding standards of Section 302 of ERISA and 412 of the
Internal Revenue Code where applicable, and each such Employee Plan that is
intended to be qualified within the meaning of Section 401 of the Internal
Revenue Code of 1986 is qualified.  No withdrawal liability has been
incurred under any such Employee Plans and no “Reportable Event” or “Prohibited
Transaction” (as such terms are defined in ERISA), has occurred with respect to
any such Employee Plans, unless approved by the appropriate governmental
agencies.  The Borrower has promptly paid and discharged all obligations
and liabilities arising under the Employee Retirement Income Security Act of
1974 (“ERISA”) of a character which if unpaid or unperformed might result in
the imposition of a Lien against any of its properties or assets.

 

7.15.
                       
Labor Relations .  Except as could not reasonably be
expected to have a Material Adverse Effect, (i) there are no strikes,
lockouts or other labor disputes against the Borrower or threatened,
(ii) hours worked by and payment made to employees of the Borrower have
not been in violation of the Fair Labor Standards Act or any other applicable
law, and (ii) no unfair labor practice complaint is pending against the
Borrower or threatened before any governmental authority.

 

33

 

7.16.
                       
Security Interest .  This Agreement creates a valid
security interest in favor of the Bank in the Collateral and, when properly
perfected by filing in the appropriate jurisdictions, or by possession or
Control of such Collateral by the Bank or delivery of such Collateral to the
Bank, shall constitute a valid, perfected, first-priority security interest in
such Collateral.

 

7.17.
                       
Lending Relationship .  The relationship
hereby created between the Borrower and the Bank is and has been conducted on
an open and arm’s length basis in which no fiduciary relationship exists, and
the Borrower has not relied and is not relying on any such fiduciary
relationship in executing this Agreement and in consummating the Loans. 
The Bank represents that it will receive any Note payable to its order as
evidence of a bank loan.

 

7.18.                        
Business Loan .  The Loans, including interest rate,
fees and charges as contemplated hereby, (i) are business loans within the
purview of 815 ILCS 205/4(1)(c), as amended from time to time, (ii) are an
exempted transaction under the Truth In Lending Act, 12 U.S.C. 1601 et  seq
.., as amended from time to time, and (iii) do not, and when disbursed
shall not, violate the provisions of the Illinois usury laws, any consumer
credit laws or the usury laws of any state which may have jurisdiction over
this transaction, the Borrower or any property securing the Loans.

 

7.19.
                       
Taxes .  The Borrower has timely filed all Material
tax returns and reports required by law to have been filed by it and has paid
all Material taxes, governmental charges and assessments due and payable with
respect to such returns, except any such taxes or charges which are being
diligently contested in good faith by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its
books, are insured against or bonded over to the satisfaction of the Bank and
the contesting of such payment does not create a Lien on the Collateral which
is not a Permitted Lien.  There is no controversy or objection pending, or,
threatened in respect of any tax returns of the Borrower.  The Borrower
has made adequate reserves on its books and records in accordance with GAAP for
all taxes that have accrued but which are not yet due and payable.

 

7.20.
                       
Compliance with Regulation U .  No portion of the
proceeds of the Loans shall be used by the Borrower, or any Affiliate of the
Borrower, either directly or indirectly, for the purpose of purchasing or
carrying any margin stock, within the meaning of Regulation U as adopted by the
Board of Governors of the Federal Reserve System or any successor thereto.

 

7.21.
                       
Governmental Regulation .  The Borrower , its Subsidiaries and any of the
Guarantors are not, or after giving effect to any loan, will not be, subject to
regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, the ICC Termination Act of 1995 or the Investment Company Act of
1940 or to any federal or state statute or regulation limiting its ability to
incur indebtedness for borrowed money.

 

7.22.
                       
Bank Accounts .  Other than as allowed pursuant to Section 8.3(d) ,
all Deposit Accounts and operating bank accounts of the Borrower and its
Subsidiaries are located at the Bank.

 

7.23.
                       
Place of Business .  The principal place of business and
books and records of the Borrower is set forth in the preamble to this
Agreement and the other permanently occupied locations where the Borrower and
its Subsidiaries conduct business, other than at such principal place of
business, is as set forth on Schedule 7.23 attached hereto and made a
part hereof, and the Borrower shall promptly notify the Bank of any change in
such locations.   Upon reasonable request by the Bank, the Borrower
shall provide the Bank with a list of locations of Collateral.

 

34

 

7.24.
                       
Complete Information .  This Agreement and
all financial statements, schedules, certificates, confirmations, agreements,
contracts, and other materials and information heretofore or contemporaneously
herewith furnished in writing by the Borrower to the Bank for purposes of, or
in connection with, this Agreement and the transactions contemplated hereby is,
and all written information hereafter furnished by or on behalf of the Borrower
to the Bank pursuant hereto or in connection herewith will be, true and
accurate in every material respect on the date as of which such information is
dated or certified, and none of such information is or will be incomplete by
omitting to state any material fact necessary to make such information not
misleading in light of the circumstances under which made (it being recognized
by the Bank that any projections and forecasts provided by the Borrower are
based on good faith estimates and assumptions believed by the Borrower to be
reasonable as of the date of the applicable projections or assumptions and that
actual results during the period or periods covered by any such projections and
forecasts may differ from projected or forecasted results).

 

7.25.
                       
Subordinated Debt .  The subordination provisions of the
Subordinated Debt are enforceable against the holders of the Subordinated Debt
by the Bank.  The Obligations constitute Senior Debt entitled to the
benefits of the subordination provisions contained in the Subordinated
Debt.  The Borrower acknowledges that the Bank is entering into this
Agreement and is making the Loans in reliance upon the subordination provisions
of the Subordinated Debt and this Section 7.25 .

 

7.26.
                       
Guarantors .  Every domestic Subsidiary of the
Borrower is a Guarantor and has executed a Guaranty and Security Agreement in
favor of the Bank in form prepared by and acceptable to the Bank.

 

Section 8.   
AFFIRMATIVE COVENANTS .

 

8.1.
                             
Compliance with Bank Regulatory Requirements; Increased Costs .  If the
Bank shall reasonably determine that any Regulatory Change, or compliance by
the Bank or any Person controlling the Bank with any request or directive
(whether or not having the force of law) of any governmental authority, central
bank or comparable agency has or would have the effect of reducing the rate of
return on the Bank’s or such controlling Person’s capital as a consequence of
the Bank’s obligations hereunder or under any Letter of Credit to a level below
that which the Bank or such controlling Person could have achieved but for such
Regulatory Change or compliance (taking into consideration the Bank’s or such
controlling Person’s policies with respect to capital adequacy) by an amount
deemed by the Bank or such controlling Person to be material or would otherwise
reduce the amount of any sum received or receivable by the Bank under this
Agreement or under any Note with respect thereto, then from time to time, upon
demand by the Bank (which demand shall be accompanied by a statement setting
forth the basis for such demand and a calculation of the amount thereof in
reasonable detail), the Borrower shall pay directly to the Bank or such
controlling Person such additional amount as will compensate the Bank for such
increased cost or such reduction, so long as such amounts have accrued on or
after the day which is one hundred eighty days (180) days prior to the date on
which the Bank first made demand therefor.

 

35

 

8.2.
                             
Borrower Existence .  The Borrower shall
and shall cause each of its Subsidiaries to at all times (a) preserve and
maintain its existence and good standing in the jurisdiction of its
organization, (b) preserve and maintain its qualification to do business
and good standing in each jurisdiction where the nature of its business makes
such qualification necessary (other than such jurisdictions in which the
failure to be qualified or in good standing could not reasonably be expected to
have a Material Adverse Effect), and (c) continue as a going concern in
the business which the Borrower is presently conducting.  If the Borrower
does not have an Organizational Identification Number and later obtains one,
the Borrower shall promptly notify the Bank of such Organizational
Identification Number.

 

8.3.
                             
Compliance With Laws .  The Borrower shall
use the proceeds of the Loans for working capital and other general corporate
or business purposes not in contravention of any requirements of law and not in
violation of this Agreement, and shall comply, and cause each Subsidiary to comply,
in all respects, including the conduct of its business and operations and the
use of its properties and assets, with all applicable laws, rules, regulations,
decrees, orders, judgments, licenses and permits, except where failure to
comply could not reasonably be expected to have a Material Adverse
Effect.  In addition, and without limiting the foregoing sentence, the
Borrower shall (a) ensure, and cause each Subsidiary to ensure, that no
person who owns a controlling interest in or otherwise controls the Borrower or
any Subsidiary is or shall be listed on the Specially Designated Nationals and
Blocked Person List or other similar lists maintained by the Office of Foreign
Assets Control (“OFAC”), the Department of the Treasury or included in any
Executive Orders, (b) not use or permit the use of the proceeds of the
Loans to violate any of the foreign asset control regulations of OFAC or any
enabling statute or Executive Order relating thereto, and (c) comply, and
cause each Subsidiary to comply, with all applicable Bank Secrecy Act (“BSA”)
laws and regulations, as amended.

 

8.4.
                             
Payment of Taxes and Liabilities .  The Borrower shall
pay, and cause each Subsidiary to pay, and discharge, prior to delinquency and
before penalties accrue thereon, all Material property and other taxes, and all
Material governmental charges or levies against it or any of the Collateral, as
well as claims of any kind which, if unpaid, could become a Lien on any of its
property; provided that the foregoing shall not require the Borrower or any
Subsidiary to pay any such tax or charge so long as it shall contest the
validity thereof in good faith by appropriate proceedings and shall set aside
on its books adequate reserves with respect thereto in accordance with GAAP
and, in the case of a claim which could become a Lien on any of the Collateral,
such contest proceedings stay the foreclosure of such Lien or the sale of any
portion of the Collateral to satisfy such claim.

 

8.5.
                             
Maintain Property .  The Borrower shall and shall cause
each of its Subsidiaries to at all times maintain, preserve and keep its plant,
properties and Equipment, including any Collateral, in good repair, working
order and condition, normal wear and tear excepted, and shall from time to time
make all needful and proper repairs, renewals, replacements, and additions
thereto so that at all times the efficiency thereof shall be fully preserved
and maintained.  The Borrower shall permit the Bank to examine and inspect
such plant, properties and Equipment, including any Collateral, at all
reasonable times subject to Section 8.12 hereof.

 

36

 

8.6.                                Maintain
Insurance .  The Borrower shall at all times maintain , and cause each Subsidiary to maintain , with insurance companies reasonably
acceptable to the Bank, such insurance coverage as may be required by any law
or governmental regulation or court decree or order applicable to it and such
other insurance as is customarily maintained by companies similarly
situated.  The Borrower shall furnish to the Bank a certificate setting
forth in reasonable detail the nature and extent of all insurance maintained by
the Borrower, which shall be reasonably acceptable in all respects to the Bank.
The Borrower shall cause each issuer of an insurance policy to provide the Bank
with an endorsement (i) showing the Bank as lender’s loss payee with
respect to each policy of property or casualty insurance; and (ii) providing
that thirty (30) days notice will be given to the Bank prior to any
cancellation of, material reduction or change in coverage provided by or other
material modification to such policy.  The Borrower shall provide the Bank
with an endorsement showing the Bank as lender’s loss payee on any business
interruption insurance policy maintained by the Borrower.

 

In the event the Borrower
either fails to provide the Bank with evidence of the insurance coverage
required by this Section or at any time hereafter shall fail to obtain or
maintain any of the policies of insurance required above, or to pay any premium
in whole or in part relating thereto, then the Bank, without waiving or
releasing any obligation or default by the Borrower hereunder, may at any time
(but shall be under no obligation to so act), obtain and maintain such policies
of insurance and pay such premiums and take any other action with respect
thereto, which the Bank deems advisable.  This insurance coverage
(a) may, but need not, protect the Borrower’s interests in such property,
including the Collateral, and (b) may not pay any claim made by, or
against, the Borrower in connection with such property, including the
Collateral. The Borrower may later cancel any such insurance purchased by the
Bank, but only after providing the Bank with evidence that the Borrower has
obtained the insurance coverage required by this Section.  If the Bank
purchases insurance for the Collateral, the Borrower will be responsible for
the costs of that insurance, including interest and any other charges that may
be imposed with the placement of the insurance, until the effective date of the
cancellation or expiration of the insurance.  The costs of the insurance
may be added to the principal amount of the Loans owing hereunder.  The
costs of the insurance may be more than the cost of the insurance the Borrower
may be able to obtain on its own.

 

8.7.                                ERISA
Liabilities; Employee Plans .  The Borrower shall (i) keep in
full force and effect any and all Employee Plans which are presently in
existence or may, from time to time, come into existence under ERISA, and not
withdraw from any such Employee Plans, unless such withdrawal can be effected
or such Employee Plans can be terminated without liability to the Borrower;
(ii) make contributions to all of such Employee Plans in a timely manner
and in a sufficient amount to comply with the standards of ERISA; including the
minimum funding standards of ERISA; (iii) comply with all material requirements
of ERISA which relate to such Employee Plans; (iv) notify the Bank
immediately upon receipt by the Borrower of any notice concerning the
imposition of any withdrawal liability or of the institution of any proceeding
or other action which may result in the termination of any such Employee Plans
or the appointment of a trustee to administer such Employee Plans;
(v) promptly advise the Bank of the occurrence of any “Reportable Event”
or “Prohibited Transaction” (as such terms are defined in ERISA), with respect
to any such Employee Plans; and (vi) amend any Employee Plan that is
intended to be qualified within the meaning of Section 401 of the Internal
Revenue Code of 1986 to the extent necessary to keep the Employee Plan
qualified, and to cause the Employee Plan to be administered and operated in a
manner that does not cause the Employee Plan to lose its qualified status.

 

37

 

8.8.
                             
Financial Statements .  The Borrower shall
at all times maintain a standard and modern system of accounting, on the
accrual basis of accounting and in all respects in accordance with GAAP, and
shall furnish to the Bank or its authorized representatives such information
regarding the business affairs, operations and financial condition of the
Borrower, including:

 

(a) 
promptly when available, and in any event, within ninety (90) days after the
close of each of its fiscal years, a copy of (i) the annual audited
consolidated and consolidating financial statements of the Borrower and its
Subsidiaries, including balance sheet, statement of income and retained
earnings, statement of cash flows for the fiscal year then ended, work in
process reports, accounts receivable agings, accounts payable agings (if available),
summary of litigation and claims, as the Bank may request, in reasonable
detail, prepared and certified without adverse reference to going concern value
and without qualification by an independent auditor of recognized standing,
selected by the Borrower and reasonably acceptable to the Bank ; and (ii) financial forecasts,
budgets and updates thereto and such other information (including nonfinancial
information) as the Bank may request, in reasonable detail.

 

(b) 
promptly when available, and in any event, within forty-five (45) days
following the end of each fiscal quarter, a copy of the management prepared
consolidated and consolidating financial statements of the Borrower and its
Subsidiaries regarding such fiscal quarter, including balance sheet, statement
of income and retained earnings, statement of cash flows for the fiscal quarter
then ended, work in process reports, accounts receivable aging reports, summary
of litigation and claims and such other information (including nonfinancial
information) as the Bank may request, in reasonable detail, prepared and
certified as true and correct by the Borrower’s treasurer or chief financial
officer.

 

The Borrower represents and
warrants to the Bank that the financial statements delivered to the Bank at or
prior to the execution and delivery of this Agreement and to be delivered at
all times thereafter accurately reflect and will accurately reflect the
financial condition of the Borrower.  The Bank shall have the right at all
times during business hours to inspect the books and records of the Borrower
and make extracts therefrom.

 

38

 

8.9.
                             
Guarantor Financial Information .  The Borrower shall
furnish, or cause to be furnished, to the Bank or its authorized
representatives such information regarding the business affairs, operations and
financial condition of each Guarantor.

 

The Borrower represents and
warrants to the Bank that (i) each Guarantor shall at all times maintain a
standard and modern system of accounting, on the accrual basis of accounting
and in all respects in accordance with GAAP, and (ii) the Bank shall have
the right at all times during business hours to inspect the books and records
of each Guarantor and make extracts therefrom.

 

If the Borrower ceases to be
publicly traded, then the Borrower agrees to advise the Bank immediately of any
development, condition or event that may have a Material Adverse Effect on each
Guarantor.

 

8.10.
                       
Supplemental Financial Statements .  The Borrower shall
immediately upon receipt thereof, provide to the Bank copies of interim and
supplemental reports if any, submitted to the Borrower by independent
accountants in connection with any interim audit or review of the books of the
Borrower.

 

8.11.
                       
Covenant Compliance Certificate .  The Borrower shall,
contemporaneously with the furnishing of the quarterly financial statements
pursuant to Section 8.8(b) , deliver to the Bank a duly
completed compliance certificate, dated the date of such financial statements
and certified as true and correct by an appropriate officer of the Borrower,
containing a computation of each of the financial covenants set forth in Section 10
and stating that the Borrower has not become aware of any Event of Default or
Unmatured Event of Default that has occurred and is continuing or, if there is
any such Event of Default or Unmatured Event of Default describing it and the
steps, if any, being taken to cure it.

 

8.12.                        
Field Audits .  The Borrower shall permit the Bank to
inspect the Inventory, other Tangible Assets and/or other business operations
of the Borrower and each Subsidiary, to perform appraisals of the Equipment of
the Borrower and each Subsidiary, and to inspect, audit, check and make copies
of, and extracts from, the books, records, computer data, computer programs,
journals, orders, receipts, correspondence and other data relating to
Inventory, Accounts and any other Collateral, the results of which must be
satisfactory to the Bank in the Bank’s sole and absolute discretion.  All
such inspections or audits by the Bank shall be at the Borrower’s sole expense , provided, however, that so long as no
Event of Default or Unmatured Event of Default exists, the Borrower shall not
be required to reimburse the Bank for inspections or audits more frequently
than once each fiscal year.

 

8.13.
                       
Other Reports .  The Borrower shall, within such
period of time as the Bank may specify, deliver to the Bank such other
schedules and reports as the Bank may require.

 

8.14.
                       
Collateral Records .  The Borrower shall
keep full and accurate books and records relating to the Collateral and shall
mark such books and records to indicate the Bank’s Lien in the Collateral,
including placing a legend, in form and content acceptable to the Bank, on all
Chattel Paper created by the Borrower indicating that the Bank has a Lien in
such Chattel Paper.

 

39

 

8.15.
                       
Intellectual Property .  The Borrower shall
maintain, preserve and renew all Intellectual Property necessary for the
conduct of its business as and where the same is currently located as
heretofore or as hereafter conducted by it.

 

8.16.
                       
Notice of Proceedings .  The Borrower,
promptly upon becoming aware, shall give written notice to the Bank of any
litigation, arbitration or governmental investigation or proceeding not
previously disclosed by the Borrower to the Bank which has been instituted or,
to the knowledge of the Borrower, is threatened against the Borrower or any of
its Subsidiaries or to which any of their respective properties is subject
which might reasonably be expected to have a Material Adverse Effect.

 

8.17.
                       
Notice of Event of Default or Material Adverse Effect .  The
Borrower shall,    immediately after the commencement thereof,
give notice to the Bank in writing of the occurrence of any Event of Default or
any Unmatured Event of Default, or the occurrence of any condition or event
having a Material Adverse Effect.

 

8.18.
                       
Environmental Matters .  If any Material
release or threatened release or other disposal of Hazardous Substances shall
occur or shall have occurred on any real property or any other assets of the
Borrower or any of its Subsidiaries, the Borrower shall , or shall cause the applicable Subsidiary
to , cause the prompt containment
and removal of such Hazardous Substances and the remediation of such real
property or other assets as necessary to comply in all Material respects with
all Environmental Laws and to preserve the value of such real property or other
assets.  Without limiting the generality of the foregoing, the Borrower
shall , and shall cause each
Subsidiary to , comply in all
Material respects with any Federal or state judicial or administrative order
requiring the performance at any real property of the Borrower or any
Subsidiary of activities in response to the release or threatened release of a
Hazardous Substance.  To the extent that the transportation of Hazardous
Substances is permitted by this Agreement, the Borrower shall, and shall cause
its Subsidiaries to, dispose of such Hazardous Substances, or of any other
wastes, only at licensed disposal facilities operating in Material compliance
with Environmental Laws.

 

8.19.
                       
Further Assurances .  The Borrower shall
take, and cause each Subsidiary to take, such actions as are necessary or as
the Bank may reasonably request from time to time to ensure that the
Obligations under the Loan Documents are secured by substantially all of the
assets of the Borrower and its Subsidiaries, in each case as the Bank may
determine, including (a) the execution and delivery of security
agreements, pledge agreements, mortgages, deeds of trust, financing statements
and other documents, and the filing or recording of any of the foregoing, and
(b) the delivery of certificated securities and other collateral with
respect to which perfection is obtained by possession.

 

8.20.
                       
Payroll Accounts .  The Borrower covenants and agrees
that it shall not keep funds on deposit in its payroll account beyond what is
necessary to fund one payroll period at a time.

 

40

 

8.21.
                       
Proceeds of Asset Sales .  Subject to the
restrictions for Permitted Liens, any proceeds from the sale of assets must be
paid to the Bank to reduce the outstanding Revolving Credit Loan.

 

8.22.
                       
Domestic Subsidiaries .  The Borrower
covenants and agrees that it shall cause any and each domestic Subsidiary it
acquires after the date of this Agreement to execute a Guaranty and Security
Agreement in favor of the Bank and in form prepared by and acceptable to the
Bank.

 

8.23.
                       
Un-Used Fee A .  The Borrower shall pay the Un-Used
Fee A on the unused portion of the Revolving Loan A Commitment as per the
Applicable Margin in accordance with Section 2.4 hereof.

 

8.24.
                       
Un-Used Fee B .   The Borrower shall pay the
Un-Used Fee B on the unused portion of the Revolving Loan B Commitment as per
the Applicable Margin in accordance with Section 2.4 hereof.

 

Section 9.   NEGATIVE
COVENANTS .

 

9.1.
                             
Debt .  Except as permitted by Section 9.3
hereof, the Borrower shall not, either directly or indirectly, create, assume,
incur or have outstanding any Debt (including purchase money indebtedness), or
become liable, whether as endorser, guarantor, surety or otherwise, for any
debt or obligation of any other Person, except:

 

(a)                                        
the Obligations under this Agreement and the other Loan Documents;

 

(b)                                       
obligations pursuant to Permitted Liens;

 

(c)                                        
obligations of the Borrower for Taxes, assessments, municipal or other
governmental charges;

 

(d)                                       
obligations of the Borrower for accounts payable, other than for money
borrowed, incurred in the ordinary course of business;

 

(e)                                        
Hedging Obligations incurred in favor of the Bank or an Affiliate
thereof for bona fide hedging purposes and not for speculation;

 

(f)                                          
On balance sheet Debt described on Schedule 9.1 (and any
extension, renewal or refinancing thereof subject to the prior written approval
of the Bank), provided that total Debt for Capital Expenditures, previously
financed Capital Expenditures or previously financed or re-financed Fixed
Assets will not exceed Forty-Five Million and 00/100 Dollars ($45,000,000.00);

 

41

 

(g)                                       
other unsecured Debt, in addition to the Debt listed above, in an
aggregate amount outstanding at any time not to exceed One Million and 00/100
Dollars ($1,000,000.00); and

 

(h)                                       
Subordinated Debt in an amount mutually acceptable to the Borrower and
the Bank and on terms acceptable to the Bank.

 

9.2.
                             
Encumbrances .  Except as set forth on Schedule 9.2
, The Borrower shall not, either directly or indirectly, create, assume, incur
or suffer or permit to exist any Lien or charge of any kind or character upon
any asset of the Borrower, whether owned at the date hereof or hereafter
acquired, except for Permitted Liens.

 

9.3.
                             
Investments .  The Borrower shall not, either directly or
indirectly, make or have outstanding any Investment, except:

 

(a)                                  
contributions by the Borrower to the capital of any Subsidiary or
Guarantor which has granted a first perfected security interest in all of its
assets in favor of the Bank, or by any Subsidiary to the capital of any other
domestic Wholly-Owned Subsidiary;

 

(b)                                 
Investments constituting Debt permitted by Section 9.1 ;

 

(c)                                  
Investments in securities of Account Debtors received pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency
of such account debtors;

 

(d)                                 
Investments in any Subsidiary, Affiliate or third party entity, which
is not either (a) Born Heaters Canada or (b) a Guarantor, shall be
limited to an aggregate amount of Twelve Million and 00/100 Dollars
($12,000,000.00) as reported on the balance sheet of the Borrower.  For
purposes of this Section 9.3(f) , Section 9.3(g)  and
Section 9.3(h)  hereof, investments shall include
accounts receivable, loans, guarantees, letters of credit or any contingent
liability used to support obligations, equity investments or advances;

 

(e)                                  
Using the definition of investments set forth in Section 9.3(d)  hereof,
investments in Born Heaters Canada or any Guarantor;

 

(f)                                    
Subject to the aggregate limitations set forth in Section 9.3(d)  hereof
and using the definition of investments set forth in Section 9.3(d)  hereof,
investments in ARB ECUADOR shall be limited to Six Million and 00/100 Dollars
($6,000,000.00); investments, in ARB ARENDAL shall be limited to Eight Million
and 00/100 Dollars ($8,000,000.00); and investments in any new foreign entity
created after the Closing shall be limited to Five Million and 00/100 Dollars
($5,000,000.00);

 

42

 

(g)                                 
Excess Cash to be invested in instruments rated at least A-l by
Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or P-l by Moody’s Investors Service, Inc.;

 

(h)                                 
Advances and/or loans to employees or shareholders up to Five Hundred
Thousand and 00/100 Dollars ($500,000.00);

 

(i)                                     
Deposits and Investments held at the Bank; and

 

(j)                                     
Fully FDIC-insured deposits (including CDARS deposits) held at any
FDIC-insured bank.

 

provided, however, that
(i) any Investment which when made complies with the requirements of the
definition of the term “Cash Equivalent Investment” may continue to be held
notwithstanding that such Investment if made thereafter would not comply with
such requirements; and (ii) no Investment otherwise permitted by
subsections (b) or (c) shall be permitted to be made if, immediately
before or after giving effect thereto, any Event of Default or Unmatured Event
of Default exists.

 

9.4.                              
Transfer; Merger; Sales .  The Borrower shall
not and not permit any Subsidiary to without the prior written consent of the
Bank, whether in one transaction or a series of related transactions,
(a) be a party to any merger or consolidation, or purchase or otherwise
acquire all or substantially all of the assets or any Capital Securities of any
class of, or any partnership or joint venture interest in, any other Person,
except for (i) any such merger, consolidation, sale, transfer, conveyance,
lease or assignment of or by any Wholly-Owned Subsidiary into the Borrower or
into any other domestic Wholly-Owned Subsidiary; (ii) any such purchase or
other acquisition by the Borrower or any domestic Wholly-Owned Subsidiary of
the assets or equity interests of any Wholly-Owned Subsidiary, (b) except
as permitted by Section 6.3 hereof, sell, transfer, convey or lease
all or any substantial part of its assets or Capital Securities (including the
sale of Capital Securities of any Subsidiary), except for sales of Inventory in
the ordinary course of business, or (c) sell or assign, with or without
recourse, any receivables.

 

9.5.
                               Issuance of
Capital Securities .  The Borrower shall not and shall not permit any
Subsidiary to issue any Capital Securities other than, so long as a Change of
Control has not occurred, (a) any issuance of shares in the ordinary
course of business, or (b) any issuance of shares of the Borrower’s common
Capital Securities pursuant to any employee or director option program, benefit
plan or compensation program, or (c) any issuance of Capital Securities by
a Subsidiary to the Borrower or another Subsidiary in accordance with Section 9.6
..

 

9.6.
                               Distributions
..  So long as no Event of Default or Unmatured Event of Default exists or
would result therefrom, the Borrower and any of its Subsidiaries may
(a) make distributions of dividends including stock dividends, whether in
cash or otherwise, to any of its equityholders, (b) purchase or redeem any
of its equity interests or any warrants, options or other rights in respect
thereof, (c) pay any management fees or similar fees to any of its
equityholders or any Affiliate thereof, (d) pay or prepay interest on,
principal of, premium, if any, redemption, conversion, exchange, purchase,
retirement, defeasance, sinking fund or any other payment in respect of any
Subordinated Debt, or (e) set aside funds for any of the foregoing.

 

43

 

9.7.
                               Transactions
with Affiliates .  The Borrower shall not, directly or indirectly,
enter into or permit to exist any transaction with any of its Affiliates or
with any director, officer or employee of the Borrower other than transactions
in the ordinary course of, and pursuant to the reasonable requirements of, the
business of the Borrower and upon fair and reasonable terms which are fully
disclosed to the Bank and are no less favorable to the Borrower than would be
obtained in a comparable arm’s length transaction with a Person that is not an
Affiliate of the Borrower.

 

9.8.
                               Unconditional
Purchase Obligations .  The Borrower shall not and shall not permit
any Subsidiary to enter into or be a party to any contract for the purchase of
materials, supplies or other property or services if such contract requires
that payment be made by it regardless of whether delivery is ever made of such
materials, supplies or other property or services.

 

9.9.
                               Cancellation
of Debt .  The Borrower shall not ,
and not permit any Subsidiary to, cancel any claim or debt owing to it, except
for reasonable consideration or in the ordinary course of business.

 

9.10.
                       
Inconsistent Agreements .  The Borrower shall
not and shall not permit any Subsidiary to enter into any agreement containing
any provision which would (a) be violated or breached by any borrowing by
the Borrower hereunder or by the performance by the Borrower or any Subsidiary
of any of its Obligations hereunder or under any other Loan Document,
(b) prohibit the Borrower or any Subsidiary from granting to the Bank a
Lien on any of its assets or (c) create or permit to exist or become
effective any encumbrance or restriction on the ability of any Subsidiary to
(i) pay dividends or make other distributions to the Borrower or any other
Subsidiary, or pay any Debt owed to the Borrower or any other Subsidiary,
(ii) make loans or advances to the Borrower or any other Subsidiary, or (iii) transfer
any of its assets or properties to the Borrower or any other Subsidiary, other
than (A) customary restrictions and conditions contained in agreements
relating to the sale of all or a substantial part of the assets of any
Subsidiary pending such sale, provided that such restrictions and conditions
apply only to the Subsidiary to be sold and such sale is permitted hereunder,
(B) restrictions or conditions imposed by any agreement relating to
purchase money Debt, Capital Leases and other secured Debt permitted by this
Agreement if such restrictions or conditions apply only to the property or
assets securing such Debt, and (C) customary provisions in leases and
other contracts restricting the assignment thereof.

 

9.11.
                       
Use of Proceeds .  Neither the Borrower nor any of its
Subsidiaries or Affiliates shall use any portion of the proceeds of the Loans,
either directly or indirectly, for the purpose of purchasing any securities
underwritten by any Affiliate of the Bank.

 

9.12.                        
Business Activities; Change of Legal Status and Organizational
Documents .  The Borrower shall not and shall not permit
any Subsidiary to (a) engage in any line of business other than the
businesses engaged in on the date hereof and businesses reasonably related
thereto, (b) change its name, its Organizational Identification Number, if
it has one, its type of organization, its jurisdiction of organization or other
legal structure, or (b) permit its charter, bylaws or other organizational
documents to be amended or modified in any way which could reasonably be
expected to materially adversely affect the interests of the Bank.

 

44

 

9.13.
                       
Domestic Subsidiaries .  Except as permitted
pursuant to Section 9.4 , the Borrower shall not sell, liquidate or
dissolve any domestic Subsidiary without the prior written consent of the Bank.

 

9.14.
                       
Foreign Subsidiaries .  The Borrower shall
not sell, liquidate or dissolve any foreign Subsidiary without the prior
written consent of the Bank.  The Borrower shall not pledge any of its
interest in its foreign Subsidiaries to any Person other than the Bank.

 

9.15.
                       
Permitted Liens .  The Borrower shall not incur any
second lien against any Permitted Lien.

 

Section 10.   
FINANCIAL COVENANTS .

 

10.1.
                       
Tangible Net Worth .  As of the end of
each of its fiscal quarters, the Borrower shall maintain a Tangible Net Worth
of Eighty-Five Percent (85%) of the Tangible Net Worth as of the most recent
quarterly reporting period with such Tangible Net Worth to be in an amount no
less than Forty-Nine Million and 00/100 Dollars ($49,000,000.00).

 

10.2.
                       
Total Debt to Tangible Net Worth .  As of the end of
each of its fiscal quarters, the Borrower shall maintain a ratio of Total Debt
to Tangible Net Worth of not greater than 1.75 to 1.00.

 

10.3.
                       
Debt Service Coverage .  On a rolling four
quarter basis and as of the end of each of its fiscal quarters, the Borrower
shall maintain a ratio of (a) pre-tax income from the Borrower’s
operations for such period plus Interest Charges for such period, plus the
amount of noncash charges for Depreciation for such period, to
(b) Interest Charges for such period plus the aggregate amount of
principal payments on Debt for such period, of not less than 1.25 to 1.00.

 

10.4.
                       
Capital Expenditure Limitations .  On a rolling four
quarter basis and as of the end of each of its fiscal quarters, the Borrower
shall not incur Capital Expenditures in an amount greater than Twelve Million
and 00/100 Dollars ($12,000,000.00) in the aggregate in any one Fiscal
Year.  However, for Fiscal Year 2009, up to Ten Million and 00/100 Dollars
($10,000,000.00) of Capital Expenditures associated with (i) the Borrower’s
purchase of a yard near Los Angeles to house certain pieces of equipment and
(ii) the Borrower’s purchase of a rock quarry and related equipment shall
be excluded from this Capital Expenditure Limitations covenant.

 

45

 

Section 11.
                                     
EVENTS OF DEFAULT .

 

The Borrower, without notice
or demand of any kind, shall be in default under this Agreement upon the
occurrence of any of the following events (each an “Event of Default”).

 

11.1.                        
Nonpayment of Obligations .  Any principal
amount due and owing on any Revolving Note or any of the Obligations, whether
by its terms or as otherwise provided herein, is not paid when due and any
interest due and owing on any Note is not paid within five days after it is
due.

 

11.2.
                         Misrepresentation
..  Any oral or written warranty, representation, certificate or statement
of any Obligor in this Agreement, the other Loan Documents or any other
agreement with the Bank shall be false when made or at any time thereafter, or
if any financial data or any other information now or hereafter furnished to
the Bank by or on behalf of any Obligor shall prove to be false, inaccurate or
misleading in any material respect.

 

11.3.
                         Nonperformance
..  Other than default for nonpayment of Obligations as set forth in Section 11.1
hereof, any failure to perform or default in the performance of any covenant,
condition or agreement contained in this Agreement, or in the other Loan
Documents or any other agreement with the Bank and such failure to perform or
default in the performance continues for 15 days following written notice of
default from the Bank.

 

11.4.
                         Default
under Loan Documents .  Other than default for nonpayment of
Obligations as set forth in Section 11.1 hereof, a default under
any of the other Loan Documents, all of which covenants, conditions and
agreements contained therein are hereby incorporated in this Agreement by
express reference, shall be and constitute an Event of Default under this
Agreement and any other of the Obligations and such default under any of the
Loan Documents continues for 15 days.

 

11.5.
                         Default
under Other Debt .  Any default by any Obligor in the payment of any
Debt in excess of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00)
for any other obligation beyond any period of grace provided with respect
thereto or in the performance of any other term, condition or covenant
contained in any agreement (including any capital or operating lease or any
agreement in connection with the deferred purchase price of property) under
which any such obligation is created, the effect of which default is to cause
or permit the holder of such obligation (or the other party to such other
agreement) to cause such obligation to become due prior to its stated maturity
or terminate such other agreement.

 

11.6.
                         Other
Material Obligations .  Any default in the payment when due, or in the
performance or observance of, any material obligation of, or condition agreed
to by, any Obligor with respect to any material purchase or lease of goods or
services where such default, singly or in the aggregate with all other such
defaults, might reasonably be expected to have a Material Adverse Effect.

 

46

 

11.7.
                         Bankruptcy, Insolvency, etc.
  Any Obligor becomes insolvent or generally fails to pay, or admits in
writing its inability or refusal to pay, debts as they become due; or any
Obligor applies for, consents to, or acquiesces in the appointment of a
trustee, receiver or other custodian for such Obligor or any property thereof,
or makes a general assignment for the benefit of creditors; or, in the absence
of such application, consent or acquiescence, a trustee, receiver or other
custodian is appointed for any Obligor or for a substantial part of the
property of any thereof and is not discharged within sixty (60) days; or any
bankruptcy, reorganization, debt arrangement, or other case or proceeding under
any bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is commenced in respect of any Obligor, and if such case or proceeding is not
commenced by such Obligor, it is consented to or acquiesced in by such Obligor,
or remains undismissed for sixty (60) days; or any Obligor takes any action to
authorize, or in furtherance of, any of the foregoing.

 

11.8.
                         Judgments
..  The entry of any final judgment, decree, levy, attachment, garnishment
or other process in excess of Two Hundred Fifty Thousand and 00/100 Dollars
($250,000.00), or the filing of any Lien in excess of Two Hundred Fifty
Thousand and 00/100 Dollars ($250,000.00) against any Obligor which is not
fully covered by insurance, and such judgment or other process shall not have
been, within thirty (30) days from the entry thereof, (i) bonded over to
the satisfaction of the Bank and appealed, (ii) vacated, or
(iii) discharged.

 

11.9.
                         Collateral
Impairment .  The entry of any judgment, decree, levy, attachment,
garnishment or other process, or the filing of any Lien against, any Material
portion of the Collateral or any Material portion of any other collateral under
a separate security agreement securing any of the Obligations and such judgment
or other process shall not have been, within thirty (30) days from the entry
thereof, (i) bonded over to the satisfaction of the Bank and appealed,
(ii) vacated, or (iii) discharged, or the loss, theft, destruction,
seizure or forfeiture, or the occurrence of any Material deterioration or impairment
of any of the Collateral or any of the collateral under any security agreement
securing any of the Obligations, or any Material decline or depreciation in the
value or market price thereof (whether actual or reasonably anticipated), which
causes the Collateral, in the sole opinion of the Bank acting in good faith, to
become unsatisfactory as to value or character, or which causes the Bank to
reasonably believe that it is insecure and that the likelihood for repayment of
the Obligations is or will soon be impaired, time being of the essence. The
cause of such deterioration, impairment, decline or depreciation shall include,
but is not limited to, the failure by the Borrower to do any act deemed
necessary by the Bank to preserve and maintain the value and collectability of
the Collateral.

 

11.10.                    Material
Adverse Effect .  The occurrence of any development, condition or
event which has a Material Adverse Effect on the Borrower.

 

11.11.
                   Guaranty
..  There is a discontinuance by any of the Guarantors of any of the
Guaranties, or any of the Guarantors shall contest the validity of such
Guaranty.

 

11.12.                  
Subordinated Debt .  The subordination provisions of any
Subordinated Debt shall for any reason be revoked or invalid or otherwise cease
to be in full force and effect.  The Borrower shall contest in any manner,
or any other holder thereof shall contest in any judicial proceeding, the
validity or enforceability of the Subordinated Debt or deny that it has any
further liability or obligation thereunder, or the Obligations shall for any
reason not have the priority contemplated by the subordination provisions of
the Subordinated Debt.

 

47

 

11.13.
                   Change of
Control .  The occurrence of a Change of Control.

 

Section 12.   
REMEDIES .

 

Upon the occurrence of an
Event of Default, the Bank shall have all rights, powers and remedies set forth
in the Loan Documents, in any written agreement or instrument (other than this
Agreement or the Loan Documents) relating to any of the Obligations or any
security therefor, as a secured party under the UCC or as otherwise provided at
law or in equity.  Without limiting the generality of the foregoing, the
Bank may, at its option upon the occurrence of an Event of Default, declare its
commitments to the Borrower to be terminated and all Obligations to be
immediately due and payable, provided, however, that upon the occurrence of an
Event of Default under Section 11.7 , all commitments of the Bank
to the Borrower shall immediately terminate and all Obligations shall be
automatically due and payable, all without demand, notice or further action of
any kind required on the part of the Bank.  The Borrower hereby waives any
and all presentment, demand, notice of dishonor, protest, and all other notices
and demands in connection with the enforcement of Bank’s rights under the Loan
Documents, and hereby consents to, and waives notice of release, with or
without consideration, of any of the Borrower or any of the Guarantors or of
any Collateral, notwithstanding anything contained herein or in the Loan
Documents to the contrary.  In addition to the foregoing:

 

12.1.
                         Possession
and Assembly of Collateral .  The Bank may, without notice, demand or
legal process of any kind, take possession of any or all of the Collateral (in
addition to Collateral of which the Bank already has possession), wherever it
may be found, and for that purpose may pursue the same wherever it may be
found, and may at any time enter into any of the Borrower’s premises where any
of the Collateral may be or is supposed to be, and search for, take possession
of, remove, keep and store any of the Collateral until the same shall be sold
or otherwise disposed of and the Bank shall have the right to store and conduct
a sale of the same in any of the Borrower’s premises without cost to the
Bank.  At the Bank’s request, the Borrower will, at the Borrower’s sole
expense, assemble the Collateral and make it available to the Bank at a place
or places to be designated by the Bank which is reasonably convenient to the
Bank and the Borrower.

 

12.2.
                         Sale of
Collateral .  The Bank may sell any or all of the Collateral at public
or private sale, upon such terms and conditions as the Bank may deem proper,
and the Bank may purchase any or all of the Collateral at any such sale. 
The Borrower acknowledges that the Bank may be unable to effect a public sale
of all or any portion of the Collateral because of certain legal and/or
practical restrictions and provisions which may be applicable to the Collateral
and, therefore, may be compelled to resort to one or more private sales to a
restricted group of offerees and purchasers.  The Borrower consents to any
such private sale so made even though at places and upon terms less favorable
than if the Collateral were sold at public sale.  The Bank shall have no
obligation to clean-up or otherwise prepare the Collateral for sale.  The Bank
may apply the net proceeds, after deducting all costs, expenses, attorneys’ and
paralegals’ fees incurred or paid at any time in the collection, protection and
sale of the Collateral and the Obligations, to the payment of any Note and/or
any of the other Obligations, returning the excess proceeds, if any, to the
Borrower.  The Borrower shall remain liable for any amount remaining
unpaid after such application, with interest at the Default Rate.  Any
notification of intended disposition of the Collateral required by law shall be
conclusively deemed reasonably and properly given if given by the Bank at least
ten (10) calendar days before the date of such disposition.  The
Borrower hereby confirms, approves and ratifies all acts and deeds of the Bank
relating to the foregoing, and each part thereof, and expressly waives any and
all claims of any nature, kind or description which it has or may hereafter
have against the Bank or its representatives, by reason of taking, selling or
collecting any portion of the Collateral.  The Borrower consents to
releases of the Collateral at any time (including prior to default) and to
sales of the Collateral in groups, parcels or portions, or as an entirety, as
the Bank shall deem appropriate.  The Borrower expressly absolves the Bank
from any loss or decline in market value of any Collateral by reason of delay
in the enforcement or assertion or nonenforcement of any rights or remedies
under this Agreement.

 

48

 

12.3.         Standards
for Exercising Remedies .  
To the extent that applicable law imposes duties on the Bank to exercise
remedies in a commercially reasonable manner, the Borrower acknowledges and
agrees that it is not commercially unreasonable for the Bank (a) to fail
to incur expenses reasonably deemed significant by the Bank to prepare
Collateral for disposition or otherwise to complete raw material or
work-in-process into finished goods or other finished products for disposition,
(b) to fail to obtain third party consents for access to Collateral to be
disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of
Collateral to be collected or disposed of, (c) to fail to exercise collection
remedies against Account Debtors or other Persons obligated on Collateral or to
remove liens or encumbrances on or any adverse claims against Collateral,
(d) to exercise collection remedies against Account Debtors and other
Persons obligated on Collateral directly or through the use of collection
agencies and other collection specialists, (e) to advertise dispositions
of Collateral through publications or media of general circulation, whether or
not the Collateral is of a specialized nature, (f) to contact other
Persons, whether or not in the same business as the Borrower, for expressions
of interest in acquiring all or any portion of the Collateral, (g) to hire
one or more professional auctioneers to assist in the disposition of
Collateral, whether or not the collateral is of a specialized nature,
(h) to dispose of Collateral by utilizing internet sites that provide for
the auction of assets of the types included in the Collateral or that have the
reasonable capability of doing so, or that match buyers and sellers of assets,
(i) to dispose of assets in wholesale rather than retail markets,
(j) to disclaim disposition warranties, including any warranties of title,
(k) to purchase insurance or credit enhancements to insure the Bank
against risks of loss, collection or disposition of Collateral or to provide to
the Bank a guaranteed return from the collection or disposition of Collateral,
or (l) to the extent deemed appropriate by the Bank, to obtain the
services of other brokers, investment bankers, consultants and other
professionals to assist the Bank in the collection or disposition of any of the
Collateral.  The Borrower acknowledges that the purpose of this section is
to provide non-exhaustive indications of what actions or omissions by the Bank
would not be commercially unreasonable in the Bank’s exercise of remedies
against the Collateral and that other actions or omissions by the Bank shall
not be deemed commercially unreasonable solely on account of not being
indicated in this section.  Without limitation upon the foregoing, nothing
contained in this section shall be construed to grant any rights to the
Borrower or to impose any duties on the Bank that would not have been granted
or imposed by this Agreement or by applicable law in the absence of this section.

 

49

 

12.4.       
UCC and Offset Rights .  The Bank may exercise, from time to time,
any and all rights and remedies available to it under the UCC or under any
other applicable law in addition to, and not in lieu of, any rights and
remedies expressly granted in this Agreement or in any other agreements between
any Obligor and the Bank, and may, without demand or notice of any kind,
appropriate and apply toward the payment of such of the Obligations, whether
matured or unmatured, including costs of collection and attorneys’ and
paralegals’ fees, and in such order of application as the Bank may, from time
to time, elect, any indebtedness of the Bank to any Obligor, however created or
arising, including balances, credits, deposits, accounts or moneys of such
Obligor in the possession, control or custody of, or in transit to the
Bank.  The Borrower, on behalf of itself and each Obligor, hereby waives
the benefit of any law that would otherwise restrict or limit the Bank in the
exercise of its right, which is hereby acknowledged, to appropriate at any time
hereafter any such indebtedness owing from the Bank to any Obligor.

 

12.5.       
Additional Remedies .  The Bank shall have the right and power to:

 

(a)          
instruct the Borrower, at its own expense, to notify any parties obligated on
any of the Collateral, including any Account Debtors, to make payment directly
to the Bank of any amounts due or to become due thereunder, or the Bank may
directly notify such obligors of the security interest of the Bank, and/or of
the assignment to the Bank of the Collateral and direct such obligors to make
payment to the Bank of any amounts due or to become due with respect thereto,
and thereafter, collect any such amounts due on the Collateral directly from
such Persons obligated thereon;

 

(b)          
enforce collection of any of the Collateral, including any Accounts, by suit or
otherwise, or make any compromise or settlement with respect to any of the
Collateral, or surrender, release or exchange all or any part thereof, or
compromise, extend or renew for any period (whether or not longer than the
original period) any indebtedness thereunder;

 

(c)          
take possession or control of any proceeds and products of any of the
Collateral, including the proceeds of insurance thereon;

 

(d)          
extend, renew or modify for one or more periods (whether or not longer than the
original period) any Note, any other of the Obligations, any obligation of any
nature of any other obligor with respect to any Note or any of the Obligations;

 

(e)          
grant releases, compromises or indulgences with respect to any Note, any of the
Obligations, any extension or renewal of any of the Obligations, any security
therefor, or to any other obligor with respect to any Note or any of the
Obligations;

 

50

 

(f)           
transfer the whole or any part of securities which may constitute Collateral
into the name of the Bank or the Bank’s nominee without disclosing, if the Bank
so desires, that such securities so transferred are subject to the security
interest of the Bank, and any corporation, association, or any of the managers
or trustees of any trust issuing any of such securities, or any transfer agent,
shall not be bound to inquire, in the event that the Bank or such nominee makes
any further transfer of such securities, or any portion thereof, as to whether
the Bank or such nominee has the right to make such further transfer, and shall
not be liable for transferring the same;

 

(g)          
vote the Collateral;

 

(h)          
make an election with respect to the Collateral under Section 1111 of the
Bankruptcy Code or take action under Section 364 or any other section of
the Bankruptcy Code; provided, however, that any such action of the Bank as set
forth herein shall not, in any manner whatsoever, impair or affect the
liability of the Borrower hereunder, nor prejudice, waive, nor be construed to
impair, affect, prejudice or waive the Bank’s rights and remedies at law, in
equity or by statute, nor release, discharge, nor be construed to release or
discharge, the Borrower, any guarantor or other Person liable to the Bank for
the Obligations;

 

(i)           
at any time, and from time to time, accept additions to, releases, reductions,
exchanges or substitution of the Collateral, without in any way altering, impairing,
diminishing or affecting the provisions of this Agreement, the Loan Documents,
or any of the other Obligations, or the Bank’s rights hereunder, under any Note
or under any of the other Obligations; and

 

(j)           
advise the Borrower whether to deposit cash as necessary into the Borrower’s
account at the Bank or whether to execute, within ten business days of such
Event of Default or Unmatured Event of Default, Control Agreements(s) with
respect to Cash Equivalent Investments.

 

The Borrower hereby ratifies
and confirms whatever the Bank may do with respect to the Collateral and agrees
that the Bank shall not be liable for any error of judgment or mistakes of fact
or law with respect to actions taken in connection with the Collateral.

 

12.6.       
Attorney-in-Fact .  Upon the occurrence and during the continuation
of an Event of Default, the Borrower hereby irrevocably makes, constitutes and
appoints the Bank (and any officer of the Bank or any Person designated by the
Bank for that purpose) as the Borrower’s true and lawful proxy and
attorney-in-fact (and agent-in-fact) in the Borrower’s name, place and stead,
with full power of substitution, to (i) take such actions as are permitted
in this Agreement, (ii) execute such financing statements and other
documents and to do such other acts as the Bank may require to perfect and
preserve the Bank’s security interest in, and to enforce such interests in the
Collateral, and (iii) carry out any remedy provided for in this Agreement,
including endorsing the Borrower’s name to checks, drafts, instruments and
other items of payment, and proceeds of the Collateral, executing change of
address forms with the postmaster of the United States Post Office serving the
address of the Borrower, changing the address of the Borrower to that of the
Bank, opening all envelopes addressed to the Borrower and applying any payments
contained therein to the Obligations.  The Borrower hereby acknowledges
that the constitution and appointment of such proxy and attorney-in-fact are
coupled with an interest and are irrevocable.  The Borrower hereby
ratifies and confirms all that such attorney-in-fact may do or cause to be done
by virtue of any provision of this Agreement.

 

51

 

12.7.       
No Marshaling .  The Bank shall not be required to marshal any
present or future collateral security (including this Agreement and the
Collateral) for, or other assurances of payment of, the Obligations or any of
them or to resort to such collateral security or other assurances of payment in
any particular order.  To the extent that it lawfully may, the Borrower
hereby agrees that it will not invoke any law relating to the marshaling of
collateral which might cause delay in or impede the enforcement of the Bank’s
rights under this Agreement or under any other instrument creating or
evidencing any of the Obligations or under which any of the Obligations is
outstanding or by which any of the Obligations is secured or payment thereof is
otherwise assured, and, to the extent that it lawfully may, the Borrower hereby
irrevocably waives the benefits of all such laws.

 

12.8.       
Application of Proceeds .  The Bank will within three
(3) Business Days after receipt of cash or solvent credits from collection
of items of payment, proceeds of Collateral or any other source, apply the
whole or any part thereof against the Obligations secured hereby.  The
Bank shall further have the exclusive right to determine how, when and what
application of such payments and such credits shall be made on the Obligations,
and such determination shall be conclusive upon the Borrower.  Any
proceeds of any disposition by the Bank of all or any part of the Collateral
may be first applied by the Bank to the payment of expenses incurred by the
Bank in connection with the Collateral, including attorneys’ fees and legal
expenses as provided for in Section 13 hereof.

 

12.9.       
No Waiver .  No Event of Default shall be waived by the Bank except
in writing. No failure or delay on the part of the Bank in exercising any
right, power or remedy hereunder shall operate as a waiver of the exercise of
the same or any other right at any other time; nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy
hereunder.  There shall be no obligation on the part of the Bank to
exercise any remedy available to the Bank in any order.  The remedies
provided for herein are cumulative and not exclusive of any remedies provided
at law or in equity.  The Borrower agrees that in the event that the
Borrower fails to perform, observe or discharge any of its Obligations or
liabilities under this Agreement or any other agreements with the Bank, no
remedy of law will provide adequate relief to the Bank, and further agrees that
the Bank shall be entitled to temporary and permanent injunctive relief in any
such case without the necessity of proving actual damages.

 

12.10.     
Letters of Credit .  With respect to all Letters of Credit for
which presentment for honor shall not have occurred at the time of an
acceleration pursuant to this Section 12, the Borrower shall at such time
deposit in a cash collateral account opened by the Bank an amount equal to the
Letter of Credit Obligations then outstanding.  Amounts held in such cash
collateral account shall be applied by the Bank to the payment of drafts drawn
under such Letters of Credit, and the unused portion thereof after all such
Letters of Credit shall have expired or been fully drawn upon, if any, shall be
applied to repay the Obligations, in such order of application as the Bank may,
in its sole discretion, from time to time elect.  After all such Letters
of Credit shall have expired or been fully drawn upon, all commitments to make
Loans hereunder have terminated and all other Obligations have been
indefeasibly satisfied and paid in full in cash, the balance, if any, in such
cash collateral account shall be returned to the Borrower or such other Person
as may be lawfully entitled thereto.

 

52

 

Section 13.            
MISCELLANEOUS .

 

13.1.       
Obligations Absolute .  None of the following shall affect the
Obligations of the Borrower to the Bank under this Agreement or the Bank’s
rights with respect to the Collateral:

 

(a)  
acceptance or retention by the Bank of other property or any interest in
property  as security for the Obligations;

 

(b) 
release by the Bank of any of the Borrower  or the Guarantors or of all or
any part of the Collateral or of any party liable with respect to the
Obligations;

 

(c)  
release, extension, renewal, modification or substitution by the Bank of any
Note, or any note evidencing any of the Obligations, or the compromise of the
liability of any of the Guarantors of the Obligations; or

 

(d)  
failure of the Bank to resort to any other security or to pursue the Borrower
or any other obligor liable for any of the Obligations before resorting to
remedies against the Collateral.

 

13.2.       
Entire Agreement .  This Agreement and the other Loan Documents
(i) are valid, binding and enforceable against the Borrower and the Bank
in accordance with their respective provisions and no conditions exist as to
their legal effectiveness; (ii) constitute the entire agreement between
the parties with respect to the subject matter hereof and thereof; and
(iii) are the final expression of the intentions of the Borrower and the
Bank.  No promises, either expressed or implied, exist between the Borrower
and the Bank, unless contained herein or therein.  This Agreement,
together with the other Loan Documents, supersedes all negotiations,
representations, warranties, commitments, term sheets, discussions,
negotiations, offers or contracts (of any kind or nature, whether oral or
written) prior to or contemporaneous with the execution hereof with respect to
any matter, directly or indirectly related to the terms of this Agreement and
the other Loan Documents.  This Agreement and the other Loan Documents are
the result of negotiations among the Bank, the Borrower and the other parties
thereto, and have been reviewed (or have had the opportunity to be reviewed) by
counsel to all such parties, and are the products of all parties. 
Accordingly, this Agreement and the other Loan Documents shall not be construed
more strictly against the Bank merely because of the Bank’s involvement in
their preparation.

 

53

 

13.3.       
Amendments; Waivers .  No delay on the part of the Bank in the
exercise of any right, power or remedy shall operate as a waiver thereof, nor
shall any single or partial exercise by the Bank of any right, power or remedy
preclude other or further exercise thereof, or the exercise of any other right,
power or remedy.  No amendment, modification or waiver of, or consent with
respect to, any provision of this Agreement or the other Loan Documents shall
in any event be effective unless the same shall be in writing and acknowledged
by the Bank, and then any such amendment, modification, waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given.

 

13.4.       
WAIVER OF DEFENSES .  THE BORROWER, ON BEHALF OF ITSELF AND ANY
GUARANTOR OF ANY OF THE OBLIGATIONS, WAIVES EVERY PRESENT AND FUTURE DEFENSE,
CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH THE BORROWER MAY NOW HAVE OR
HEREAFTER MAY HAVE TO ANY ACTION BY THE BANK IN ENFORCING THIS
AGREEMENT.  PROVIDED THE BANK ACTS IN GOOD FAITH, THE BORROWER RATIFIES
AND CONFIRMS WHATEVER THE BANK MAY DO PURSUANT TO THE TERMS OF THIS
AGREEMENT.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BANK GRANTING
ANY FINANCIAL ACCOMMODATION TO THE BORROWER.

 

13.5.       
FORUM SELECTION AND CONSENT TO JURISDICTION .  ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS
OF THE STATE OF ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE
DEEMED OR OPERATE TO PRECLUDE THE BANK FROM BRINGING SUIT OR TAKING OTHER LEGAL
ACTION IN ANY OTHER JURISDICTION.  THE BORROWER HEREBY EXPRESSLY AND
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS
AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS
FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE.  THE BORROWER
FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL,
POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF
ILLINOIS.  THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY
SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

 

13.6.   WAIVER
OF JURY TRIAL .  THE BANK AND THE BORROWER, AFTER CONSULTING OR HAVING
HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY
OTHER LOAN DOCUMENT, ANY OF THE OTHER OBLIGATIONS, THE COLLATERAL, OR ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR
ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE
FOREGOING, OR ANY COURSE OF CONDUCT OR COURSE OF DEALING IN WHICH THE BANK AND
THE BORROWER ARE ADVERSE PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE BANK GRANTING ANY FINANCIAL
ACCOMMODATION TO THE BORROWER.

 

54

 

13.7.       
Assignability .  The Bank may at any time assign the Bank’s rights
in this Agreement, the other Loan Documents, the Obligations, or any part
thereof and transfer the Bank’s rights in any or all of the Collateral, and the
Bank thereafter shall be relieved from all liability with respect to such
Collateral; provided, however, that if an Event of Default does not exist, the
Bank shall not make such assignment without the prior written consent of the
Borrower.  In addition, the Bank may at any time sell one or more
participations in the Loans.  The Borrower may not sell or assign this
Agreement, or any other agreement with the Bank or any portion thereof, either
voluntarily or by operation of law, without the prior written consent of the
Bank.  This Agreement shall be binding upon the Bank and the Borrower and
their respective legal representatives and successors.  All references
herein to the Borrower shall be deemed to include any successors, whether
immediate or remote.  In the case of a joint venture or partnership, the
term “Borrower” shall be deemed to include all joint venturers or partners
thereof, who shall be jointly and severally liable hereunder.

 

13.8.       
Confirmations .  The Borrower and the Bank agree from time to time,
upon written request received by it from the other, to confirm to the other in
writing the aggregate unpaid principal amount of the Loans then outstanding under
such Note.

 

13.9.       
Confidentiality .  The Bank agrees to use commercially reasonable
efforts (equivalent to the efforts the Bank applies to maintain the
confidentiality of its own confidential information) to maintain as
confidential all information provided to it by the Borrower, including all
information designated as confidential, except that the Bank may disclose such
information (a) to Persons employed or engaged by the Bank in evaluating,
approving, structuring or administering the Loans; (b) to any assignee or
participant or potential assignee or participant that has agreed to comply with
the covenant contained in this Section 13.9 (and any such assignee
or participant or potential assignee or participant may disclose such
information to Persons employed or engaged by them as described in clause
(a) above); (c) as required or requested by any federal or state
regulatory authority or examiner, or any insurance industry association, or as
reasonably believed by the Bank to be compelled by any court decree, subpoena
or legal or administrative order or process; (d) as, on the advice of the
Bank’s counsel, is required by law; (e) in connection with the exercise of
any right or remedy under the Loan Documents or in connection with any
litigation to which the Bank is a party; (f) to any nationally recognized
rating agency that requires access to information about the Bank’s investment
portfolio in connection with ratings issued with respect to the Bank;
(g) to any Affiliate of the Bank who may provide Bank Products to the
Borrower or any Subsidiary, or (h) that ceases to be confidential through
no fault of the Bank.

 

55

 

13.10.     
Binding Effect .  This Agreement shall become effective upon
execution by the Borrower and the Bank.  If this Agreement is not dated or
contains any blanks when executed by the Borrower, the Bank is hereby
authorized, without notice to the Borrower, to date this Agreement as of the
date when it was executed by the Borrower, and to complete any such blanks
according to the terms upon which this Agreement is executed.

 

13.11.     
Governing Law .  This Agreement, the Loan Documents and any Note
shall be delivered and accepted in and shall be deemed to be contracts made
under and governed by the internal laws of the State of Illinois (but giving
effect to federal laws applicable to national banks) applicable to contracts
made and to be performed entirely within such state, without regard to conflict
of laws principles.

 

13.12.     
Enforceability .  Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by, unenforceable or invalid under any jurisdiction, such provision
shall as to such jurisdiction, be severable and be ineffective to the extent of
such prohibition or invalidity, without invalidating the remaining provisions
of this Agreement or affecting the validity or enforceability of such provision
in any other jurisdiction.

 

13.13.     
Survival of Borrower Representations .  All covenants, agreements,
representations and warranties made by the Borrower herein shall,
notwithstanding any investigation by the Bank, be deemed material and relied
upon by the Bank and shall survive the making and execution of this Agreement
and the Loan Documents and the issuance of any Note, and shall be deemed to be
continuing representations and warranties until such time as the Borrower has
fulfilled all of its Obligations to the Bank, and the Bank has been
indefeasibly paid in full in cash.  The Bank, in extending financial
accommodations to the Borrower, is expressly acting and relying on the
aforesaid representations and warranties.

 

13.14.     
Extensions of Bank’s Commitment .  This Agreement shall secure and
govern the terms of (i) any extensions or renewals of the Bank’s
commitment hereunder, and (ii) any replacement note executed by the
Borrower and accepted by the Bank in its sole and absolute discretion in
substitution for any Note.

 

13.15.     
Time of Essence .  Time is of the essence in making payments of all
amounts due the Bank under this Agreement and in the performance and observance
by the Borrower of each covenant, agreement, provision and term of this
Agreement.

 

13.16.     
Counterparts; Facsimile Signatures .  This Agreement may be
executed in any number of counterparts and by the different parties hereto on
separate counterparts and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same Agreement.  Receipt of an executed signature page to this
Agreement by facsimile or other electronic transmission shall constitute
effective delivery thereof.  Electronic records of executed Loan Documents
maintained by the Bank shall deemed to be originals thereof.

 

56

 

13.17.     
Notices .  Except as otherwise provided herein, the Borrower waives
all notices and demands in connection with the enforcement of the Bank’s rights
hereunder.  All notices, requests, demands and other communications
provided for hereunder shall be in writing and addressed as follows:

 

	
  To the Borrower:

  	
  Primoris Services
  Corporation

  
	
   

  	
  26000 Commercentre Drive

  
	
   

  	
  Lake Forest, California
  92630

  
	
   

  	
  Attention: 

  	
   Peter J. Moerbeek

  
	
   

  	
   

  	
   John M. Perisich, Esq.

  
	
   

  	
   

  
	
  To the Bank:

  	
  The PrivateBank and Trust
  Company

  
	
   

  	
  120 South LaSalle Street

  
	
   

  	
  Chicago, Illinois
  60603

  
	
   

  	
  Attention: Steve
  Trepiccione

  
	
   

  	
  Managing Director,
  Construction and Engineering

  
	
   

  	
   

  
	
  With copy to:

  	
  O’Keefe Lyons &
  Hynes, LLC

  
	
   

  	
  30 North LaSalle Street,
  Suite 4100

  
	
   

  	
  Chicago, Illinois
  60602

  
	
   

  	
  Attention: James E.
  Carroll, Esq.

  

 

or, as to each party, at
such other address as shall be designated by such party in a written notice to
each other party complying as to delivery with the terms of this
subsection.  All notices addressed as above shall be deemed to have been
properly given (i) if served in person, upon acceptance or refusal of
delivery; (ii) if mailed by certified or registered mail, return receipt
requested, postage prepaid, on the third (3rd) day following the day such
notice is deposited in any post office station or letter box; or (iii) if
sent by recognized overnight courier, on the first (1st) day following the day
such notice is delivered to such carrier.  No notice to or demand on the
Borrower in any case shall entitle the Borrower to any other or further notice
or demand in similar or other circumstances.

 

13.18.     
Release of Claims Against Bank .  In consideration of the Bank
making the Loans, the Borrower and all other Obligors do each hereby release
and discharge the Bank of and from any and all claims, harm, injury, and damage
of any and every kind, known or unknown, legal or equitable, which any Obligor
may have against the Bank from the date of their respective first contact with
the Bank until the date of this Loan Agreement, including any claim arising
from any reports (environmental reports, surveys, appraisals, etc.)
prepared by any parties hired or recommended by the Bank.  The Borrower
and all other Obligors confirm to Bank that they have reviewed the effect of
this release with competent legal counsel of their choice, or have been
afforded the opportunity to do so, prior to execution of this Agreement and the
Loan Documents and do each acknowledge and agree that the Bank is relying upon
this release in extending the Loans to the Borrower.

 

57

 

13.19.     
Costs, Fees and Expenses .  The Borrower shall pay or reimburse the
Bank for all reasonable costs, fees and expenses incurred by the Bank or for
which the Bank becomes obligated in connection with the negotiation,
preparation, consummation, collection of the Obligations or enforcement of this
Agreement, the other Loan Documents and all other documents provided for herein
or delivered or to be delivered hereunder or in connection herewith (including
any amendment, supplement or waiver to any Loan Document), or during any
workout, restructuring or negotiations in respect thereof, including reasonable
consultants’ fees and attorneys’ fees and time charges of counsel to the Bank,
which shall also include attorneys’ fees and time charges of attorneys who may
be employees of the Bank or any Affiliate of the Bank, plus costs and expenses
of such attorneys or of the Bank; search fees, costs and expenses; and all
taxes payable in connection with this Agreement or the other Loan Documents,
whether or not the transaction contemplated hereby shall be consummated. 
In furtherance of the foregoing, the Borrower shall pay any and all stamp and
other taxes, UCC search fees, filing fees and other costs and expenses in
connection with the execution and delivery of this Agreement, any Note and the
other Loan Documents to be delivered hereunder, and agrees to save and hold the
Bank harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such costs and
expenses.  That portion of the Obligations consisting of costs, expenses
or advances to be reimbursed by the Borrower to the Bank pursuant to this
Agreement or the other Loan Documents which are not paid on or prior to the
date hereof shall be payable by the Borrower to the Bank on demand.  If at
any time or times hereafter the Bank: (a) employs counsel for advice or
other representation (i) with respect to this Agreement or the other Loan
Documents, (ii) to represent the Bank in any litigation, contest, dispute,
suit or proceeding or to commence, defend, or intervene or to take any other
action in or with respect to any litigation, contest, dispute, suit, or
proceeding (whether instituted by the Bank, the Borrower, or any other Person)
in any way or respect relating to this Agreement, the other Loan Documents or
the Borrower’s business or affairs, or (iii) to enforce any rights of the
Bank against the Borrower or any other Person that may be obligated to the Bank
by virtue of this Agreement or the other Loan Documents; (b) takes any
action to protect, collect, sell, liquidate, or otherwise dispose of any of the
Collateral; and/or (c) attempts to or enforces any of the Bank’s rights or
remedies under the Agreement or the other Loan Documents, the costs and
expenses incurred by the Bank in any manner or way with respect to the
foregoing, shall be part of the Obligations, payable by the Borrower to the
Bank on demand.

 

13.20.     
Indemnification .  The Borrower agrees to defend (with counsel
satisfactory to the Bank), protect, indemnify, exonerate and hold harmless each
Indemnified Party from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, claims, costs, expenses
and distributions of any kind or nature (including the disbursements and the
reasonable fees of counsel for each Indemnified Party thereto, which shall also
include, without limitation, reasonable attorneys’ fees and time charges of
attorneys who may be employees of any Indemnified Party), which may be imposed
on, incurred by, or asserted against, any Indemnified Party (whether direct,
indirect or consequential and whether based on any federal, state or local laws
or regulations, including securities laws, Environmental Laws, commercial laws
and regulations, under common law or in equity, or based on contract or
otherwise) in any manner relating to or arising out of this Agreement or any of
the Loan Documents, or any act, event or transaction related or attendant
thereto, the preparation, execution and delivery of this Agreement and the Loan
Documents, including the making or issuance and management of the Loans, the
use or intended use of the proceeds of the Loans, the enforcement of the Bank’s
rights and remedies under this Agreement, the Loan Documents, any Note, any
other instruments and documents delivered hereunder, or under any other
agreement between the Borrower and the Bank; provided, however, that the
Borrower shall not have any obligations hereunder to any Indemnified Party with
respect to matters determined by a court of competent jurisdiction by final and
nonappealable judgment to have been caused by or resulting from the willful
misconduct or gross negligence of such Indemnified Party.  To the extent
that the undertaking to indemnify set forth in the preceding sentence may be
unenforceable because it violates any law or public policy, the Borrower shall
satisfy such undertaking to the maximum extent permitted by applicable
law.  Any liability, obligation, loss, damage, penalty, cost or expense
covered by this indemnity shall be paid to each Indemnified Party on demand,
and failing prompt payment, together with interest thereon at the Default Rate
from the date incurred by each Indemnified Party until paid by the Borrower,
shall be added to the Obligations of the Borrower and be secured by the
Collateral.  The provisions of this Section shall survive the
satisfaction and payment of the other Obligations and the termination of this
Agreement.

 

58

 

13.21.     
Revival and Reinstatement of Obligations .  If the incurrence or
payment of the Obligations by any Obligor or the transfer to the Bank of any
property should for any reason subsequently be declared to be void or voidable
under any state or federal law relating to creditors’ rights, including provisions
of the Bankruptcy Code relating to fraudulent conveyances, preferences, or
other voidable or recoverable payments of money or transfers of property
(collectively, a “Voidable Transfer”), and if the Bank is required to repay or
restore, in whole or in part, any such Voidable Transfer, or elects to do so
upon the reasonable advice of its counsel, then, as to any such Voidable
Transfer, or the amount thereof that the Bank is required or elects to repay or
restore, and as to all reasonable costs, expenses, and attorneys fees of the
Bank, the Obligations shall automatically shall be revived, reinstated, and
restored and shall exist as though such Voidable Transfer had never been made.

 

13.22.    Customer
Identification - USA Patriot Act Notice .  The Bank hereby notifies
the Borrower that pursuant to the requirements of the USA Patriot Act (Title
III of Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and
the Bank’s policies and practices, the Bank is required to obtain, verify and
record certain information and documentation that identifies the Borrower,
which information includes the name and address of the Borrower and such other
information that will allow the Bank to identify the Borrower in accordance
with the Act.

 

59

 

IN WITNESS WHEREOF, the
Borrower and the Bank have executed this Loan and Security Agreement as of the
date first above written.

 

	
   

  	
  PRIMORIS
  SERVICES CORPORATION ,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter J. Moerbeek

  
	
   

  	
   

  	
  Peter J. Moerbeek

  
	
   

  	
   

  	
  Executive Vice President,
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Agreed and accepted:

  
	
   

  	
   

  
	
   

  	
  THE
  PRIVATEBANK AND TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve Trepiccione

  
	
   

  	
   

  	
  Steve Trepiccione

  
	
   

  	
   

  	
  Managing Director,
  Construction and Engineering

  

 

60

 

SCHEDULE 7.9

 

None.

 

 

SCHEDULE 7.23

 

26000 Commercentre Drive

Lake Forest, California 92630

 

 

SCHEDULE 9.1

 

See following pages

 

 

SCHEDULE 9.1 - DEBT

 

	
  Lender

  	
   

  	
  Original

  amount

  	
   

  	
  Interest

  rate

  	
   

  	
  Inception

  	
   

  	
  Term

  (months)

  	
   

  	
  Months

  remain

  	
   

  	
  Pro forma L/T

  balance 09/30/09

  	
   

  	
  Pro forma

  current

  09/30/09

  	
   

  	
  Monthly

  payments

  	
   

  	
  EBO/Residual

  	
   

  	
  Early Buy-

  Out Date

  	
   

  	
  Notification

  Date 90 days

  prior to EBO

  	
   

  	
  Notification

  Date 180 days

  prior to EBO

  	
   

  	
   

  	
   

  
	
  ARB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America

  	
   

  	
  8,494,847

  	
   

  	
  5.89

  	
  %

  	
  Jul-09

  	
   

  	
  60

  	
   

  	
  58

  	
   

  	
  6,729,832

  	
   

  	
  1,520,217

  	
   

  	
  163,795

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America

  	
   

  	
  2,375,855

  	
   

  	
  5.51

  	
  %

  	
  Sep-09

  	
   

  	
  60

  	
   

  	
  60

  	
   

  	
  1,951,442

  	
   

  	
  424,413

  	
   

  	
  45,393

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARB -Balance sheet debt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8,681,274

  	
   

  	
  1,944,630

  	
   

  	
  209,188

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STELLARIS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CAT Financial

  	
   

  	
  4,469,899

  	
   

  	
  5.30

  	
  %

  	
  Jun-07

  	
   

  	
  60

  	
   

  	
  33

  	
   

  	
  1,706,247

  	
   

  	
  906,407

  	
   

  	
  84,967

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital

  	
   

  	
  4,793,320

  	
   

  	
  5.54

  	
  %

  	
  Mar-08

  	
   

  	
  60

  	
   

  	
  42

  	
   

  	
  3,343,019

  	
   

  	
  623,503

  	
   

  	
  68,965

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key Bank

  	
   

  	
  2,100,300

  	
   

  	
  5.86

  	
  %

  	
  Dec-07

  	
   

  	
  24

  	
   

  	
  3

  	
   

  	
  —

  	
   

  	
  504,184

  	
   

  	
  82,620

  	
   

  	
  262,538

  	
   

  	
  12/21/09

  	
   

  	
  09/21/09

  	
   

  	
   

  	
   

  	
  90 days prior to exp.

  	
   

  
	
  GE CAPITAL (Citi)

  	
   

  	
  2,282,390

  	
   

  	
  5.48

  	
  %

  	
  Jan-08

  	
   

  	
  24

  	
   

  	
  4

  	
   

  	
  —

  	
   

  	
  588,530

  	
   

  	
  87,025

  	
   

  	
  342,358

  	
   

  	
  01/01/10

  	
   

  	
  10/01/09

  	
   

  	
   

  	
   

  	
  90 days prior to exp.

  	
   

  
	
  Banc of America

  	
   

  	
  3,020,459

  	
   

  	
  5.48

  	
  %

  	
  Oct-08

  	
   

  	
  60

  	
   

  	
  49

  	
   

  	
  1,959,089

  	
   

  	
  567,630

  	
   

  	
  57,671

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US Bancorp

  	
   

  	
  3,800,000

  	
   

  	
  5.88

  	
  %

  	
  Oct-08

  	
   

  	
  60

  	
   

  	
  49

  	
   

  	
  3,202,555

  	
   

  	
  317,674

  	
   

  	
  43,027

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banc of America

  	
   

  	
  3,023,088

  	
   

  	
  4.88

  	
  %

  	
  Mar-09

  	
   

  	
  60

  	
   

  	
  54

  	
   

  	
  2,192,183

  	
   

  	
  560,658

  	
   

  	
  56,889

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifth Third

  	
   

  	
  1,700,000

  	
   

  	
  5.10

  	
  %

  	
  Sep-09

  	
   

  	
  60

  	
   

  	
  60

  	
   

  	
  1,393,697

  	
   

  	
  306,303

  	
   

  	
  32,159

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STE - Balance sheet debt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  13,796,790

  	
   

  	
  4,374,888

  	
   

  	
  513,322

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Primoris Consolidated B/S Debt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  22,478,064

  	
   

  	
  $

  	
  6,319,518

  	
   

  	
  $

  	
  722,510

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Synthetic leases, equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital - Enbridge (Citi)

  	
   

  	
  1,292,000

  	
   

  	
  5.68

  	
  %

  	
  Jun-05

  	
   

  	
  73

  	
   

  	
  22

  	
   

  	
  196,422

  	
   

  	
  235,706

  	
   

  	
  19,642

  	
   

  	
  193,800

  	
   

  	
  07/01/10

  	
   

  	
  04/01/10

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  196,422

  	
   

  	
  235,706

  	
   

  	
  19,642

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating leases, equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Mobileram

  	
   

  	
  1,096,200

  	
   

  	
  5.31

  	
  %

  	
  Apr-05

  	
   

  	
  72

  	
   

  	
  18

  	
   

  	
  105,068

  	
   

  	
  210,136

  	
   

  	
  17,511

  	
   

  	
  324,859

  	
   

  	
  04/22/10

  	
   

  	
  01/22/10

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE - Enbridge

  	
   

  	
  1,506,838

  	
   

  	
  5.37

  	
  %

  	
  Jul-05

  	
   

  	
  72

  	
   

  	
  22

  	
   

  	
  226,689

  	
   

  	
  272,027

  	
   

  	
  22,669

  	
   

  	
  522,873

  	
   

  	
  07/01/10

  	
   

  	
   

  	
   

  	
  12/30/08

  	
   

  	
   

  	
   

  
	
  GE - 385 Excavator

  	
   

  	
  816,511

  	
   

  	
  5.15

  	
  %

  	
  Dec-05

  	
   

  	
  76

  	
   

  	
  29

  	
   

  	
  200,806

  	
   

  	
  141,745

  	
   

  	
  11,812

  	
   

  	
  291,494

  	
   

  	
  12/14/10

  	
   

  	
  09/14/08

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE - D8T Dozers (2) (Citi)

  	
   

  	
  997,998

  	
   

  	
  5.08

  	
  %

  	
  Dec-05

  	
   

  	
  72

  	
   

  	
  26

  	
   

  	
  179,906

  	
   

  	
  154,205

  	
   

  	
  12,850

  	
   

  	
  461,184

  	
   

  	
  12/15/10

  	
   

  	
  09/15/10

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Equipment

  	
   

  	
  1,438,435

  	
   

  	
  5.08

  	
  %

  	
  Apr-06

  	
   

  	
  72

  	
   

  	
  31

  	
   

  	
  351,613

  	
   

  	
  222,071

  	
   

  	
  18,506

  	
   

  	
  754,459

  	
   

  	
  04/01/11

  	
   

  	
  01/01/11

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifth-Third - RPO

  	
   

  	
  1,861,736

  	
   

  	
  5.03

  	
  %

  	
  Dec-05

  	
   

  	
  72

  	
   

  	
  27

  	
   

  	
  334,512

  	
   

  	
  267,609

  	
   

  	
  22,301

  	
   

  	
  807,342

  	
   

  	
  12/21/10

  	
   

  	
  03/16/10

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Natl City Comm. Cap.

  	
   

  	
  940,825

  	
   

  	
  5.97

  	
  %

  	
  Jul-06

  	
   

  	
  72

  	
   

  	
  34

  	
   

  	
  332,424

  	
   

  	
  181,322

  	
   

  	
  15,110

  	
   

  	
  311,145

  	
   

  	
  07/18/11

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,731,017

  	
   

  	
  1,449,116

  	
   

  	
  120,760

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRAC leases

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chase

  	
   

  	
  273,045

  	
   

  	
  6.71

  	
  %

  	
  Apr-05

  	
   

  	
  60

  	
   

  	
  7

  	
   

  	
  —

  	
   

  	
  23,298

  	
   

  	
  3,328

  	
   

  	
  54,609

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital (CitiCapital)

  	
   

  	
  746,736

  	
   

  	
  3.87

  	
  %

  	
  Dec-04

  	
   

  	
  60

  	
   

  	
  3

  	
   

  	
  —

  	
   

  	
  37,034

  	
   

  	
  12,345

  	
   

  	
  149,347

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital (CitiCapital)

  	
   

  	
  286,247

  	
   

  	
  3.98

  	
  %

  	
  Feb-05

  	
   

  	
  60

  	
   

  	
  4

  	
   

  	
  —

  	
   

  	
  17,553

  	
   

  	
  4,388

  	
   

  	
  57,249

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital (CitiCapital)

  	
   

  	
  417,247

  	
   

  	
  5.71

  	
  %

  	
  Aug-05

  	
   

  	
  60

  	
   

  	
  11

  	
   

  	
  —

  	
   

  	
  74,378

  	
   

  	
  6,762

  	
   

  	
  83,449

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifth Third

  	
   

  	
  1,187,558

  	
   

  	
  5.34

  	
  %

  	
  Dec-05

  	
   

  	
  60

  	
   

  	
  15

  	
   

  	
  60,975

  	
   

  	
  243,898

  	
   

  	
  20,325

  	
   

  	
  237,512

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Natl City Comm. Cap.

  	
   

  	
  338,045

  	
   

  	
  5.38

  	
  %

  	
  Jun-07

  	
   

  	
  60

  	
   

  	
  33

  	
   

  	
  130,133

  	
   

  	
  74,362

  	
   

  	
  6,197

  	
   

  	
  118,316

  	
   

  	
  06/01/11

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key Bank

  	
   

  	
  314,475

  	
   

  	
  5.11

  	
  %

  	
  Feb-06

  	
   

  	
  48

  	
   

  	
  5

  	
   

  	
  —

  	
   

  	
  31,685

  	
   

  	
  6,337

  	
   

  	
  69,184

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key Bank

  	
   

  	
  157,993

  	
   

  	
  5.59

  	
  %

  	
  Aug-06

  	
   

  	
  60

  	
   

  	
  22

  	
   

  	
  28,154

  	
   

  	
  33,785

  	
   

  	
  2,815

  	
   

  	
  31,599

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  219,262

  	
   

  	
  535,993

  	
   

  	
  62,497

  	
   

  	
  801,265

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARB -Total Lease expense

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,146,701

  	
   

  	
  2,220,815

  	
   

  	
  202,899

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating leases, equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Cardinal

  	
   

  	
  506,833

  	
   

  	
  5.24

  	
  %

  	
  Jul-05

  	
   

  	
  72

  	
   

  	
  22

  	
   

  	
  73,165

  	
   

  	
  87,798

  	
   

  	
  7,317

  	
   

  	
  189,321

  	
   

  	
  04/02/10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Cardinal

  	
   

  	
  571,995

  	
   

  	
  5.24

  	
  %

  	
  Sep-05

  	
   

  	
  72

  	
   

  	
  24

  	
   

  	
  99,032

  	
   

  	
  99,032

  	
   

  	
  8,253

  	
   

  	
  213,354

  	
   

  	
  06/02/10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Cardinal

  	
   

  	
  88,145

  	
   

  	
  4.99

  	
  %

  	
  Feb-06

  	
   

  	
  60

  	
   

  	
  17

  	
   

  	
  7,489

  	
   

  	
  17,972

  	
   

  	
  1,498

  	
   

  	
  32,702

  	
   

  	
  02/28/10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  179,685

  	
   

  	
  204,802

  	
   

  	
  17,067

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRAC leases

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Cardinal

  	
   

  	
  26,521

  	
   

  	
  6.17

  	
  %

  	
  May-06

  	
   

  	
  60

  	
   

  	
  19

  	
   

  	
  3,074

  	
   

  	
  5,270

  	
   

  	
  439

  	
   

  	
  5,304

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CAR - Total lease expense

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  182,759

  	
   

  	
  210,072

  	
   

  	
  17,506

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating leases, equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Natl City -
  Stellaris

  	
   

  	
  708,743

  	
   

  	
  6.85

  	
  %

  	
  Nov-07

  	
   

  	
  60

  	
   

  	
  38

  	
   

  	
  353,088

  	
   

  	
  162,964

  	
   

  	
  13,580

  	
   

  	
  212,623

  	
   

  	
  11/15/11

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRAC leases

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Stellaris

  	
   

  	
  768,218

  	
   

  	
  4.89

  	
  %

  	
  Nov-07

  	
   

  	
  48

  	
   

  	
  26

  	
   

  	
  215,621

  	
   

  	
  184,818

  	
   

  	
  15,401

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Stellaris

  	
   

  	
  679,479

  	
   

  	
   

  	
   

  	
  Jan-08

  	
   

  	
  48

  	
   

  	
  27

  	
   

  	
  211,069

  	
   

  	
  168,855

  	
   

  	
  14,071

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STE - Total lease expense

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  779,777

  	
   

  	
  516,636

  	
   

  	
  43,053

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Primoris Lease Expense

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  3,109,237

  	
   

  	
  $

  	
  2,947,523

  	
   

  	
  $

  	
  263,458

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

L/C Facility - Born Heaters Canada, ULC

BANK OF MONTREAL: Facility of USD 10 MM for Commercial and Stand-by
Letters of Credit.

 

 

	
   

  	
   

  	
  Starting

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Ending

  	
   

  
	
  Date

  	
   

  	
  Balance

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7/20/2009

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  8,494,847.00

  	
   

  
	
  8/20/2009

  	
   

  	
  8,494,847.00

  	
   

  	
  163,795.04

  	
   

  	
  41,695.54

  	
   

  	
  122,099.50

  	
   

  	
  8,372,747.50

  	
   

  
	
  9/20/2009

  	
   

  	
  8,372,747.50

  	
   

  	
  163,795.04

  	
   

  	
  41,096.24

  	
   

  	
  122,698.80

  	
   

  	
  8,250,048.70

  	
   

  
	
  10/20/2009

  	
   

  	
  8,250,048.70

  	
   

  	
  163,795.04

  	
   

  	
  40,493.99

  	
   

  	
  123,301.05

  	
   

  	
  8,126,747.65

  	
   

  
	
  11/20/2009

  	
   

  	
  8,126,747.65

  	
   

  	
  163,795.04

  	
   

  	
  39,888.79

  	
   

  	
  123,906.25

  	
   

  	
  8,002,841.40

  	
   

  
	
  12/20/2009

  	
   

  	
  8,002,841.40

  	
   

  	
  163,795.04

  	
   

  	
  39,280.61

  	
   

  	
  124,514.43

  	
   

  	
  7,878,326.97

  	
   

  
	
  1/20/2010

  	
   

  	
  7,878,326.97

  	
   

  	
  163,795.04

  	
   

  	
  38,669.45

  	
   

  	
  125,125.59

  	
   

  	
  7,753,201.38

  	
   

  
	
  2/20/2010

  	
   

  	
  7,753,201.38

  	
   

  	
  163,795.04

  	
   

  	
  38,055.30

  	
   

  	
  125,739.74

  	
   

  	
  7,627,461.64

  	
   

  
	
  3/20/2010

  	
   

  	
  7,627,461.64

  	
   

  	
  163,795.04

  	
   

  	
  37,438.12

  	
   

  	
  126,356.92

  	
   

  	
  7,501,104.72

  	
   

  
	
  4/20/2010

  	
   

  	
  7,501,104.72

  	
   

  	
  163,795.04

  	
   

  	
  36,817.92

  	
   

  	
  126,977.12

  	
   

  	
  7,374,127.60

  	
   

  
	
  5/20/2010

  	
   

  	
  7,374,127.60

  	
   

  	
  163,795.04

  	
   

  	
  36,194.68

  	
   

  	
  127,600.36

  	
   

  	
  7,246,527.24

  	
   

  
	
  6/20/2010

  	
   

  	
  7,246,527.24

  	
   

  	
  163,795.04

  	
   

  	
  35,568.37

  	
   

  	
  128,226.67

  	
   

  	
  7,118,300.57

  	
   

  
	
  7/20/2010

  	
   

  	
  7,118,300.57

  	
   

  	
  163,795.04

  	
   

  	
  34,938.99

  	
   

  	
  128,856.05

  	
   

  	
  6,989,444.52

  	
   

  
	
  8/20/2010

  	
   

  	
  6,989,444.52

  	
   

  	
  163,795.04

  	
   

  	
  34,306.52

  	
   

  	
  129,488.52

  	
   

  	
  6,859,956.00

  	
   

  
	
  9/20/2010

  	
   

  	
  6,859,956.00

  	
   

  	
  163,795.04

  	
   

  	
  33,670.95

  	
   

  	
  130,124.09

  	
   

  	
  6,729,831.91

  	
   

  
	
  10/20/2010

  	
   

  	
  6,729,831.91

  	
   

  	
  163,795.04

  	
   

  	
  33,032.26

  	
   

  	
  130,762.78

  	
   

  	
  6,599,069.13

  	
   

  
	
  11/20/2010

  	
   

  	
  6,599,069.13

  	
   

  	
  163,795.04

  	
   

  	
  32,390.43

  	
   

  	
  131,404.61

  	
   

  	
  6,467,664.52

  	
   

  
	
  12/20/2010

  	
   

  	
  6,467,664.52

  	
   

  	
  163,795.04

  	
   

  	
  31,745.45

  	
   

  	
  132,049.59

  	
   

  	
  6,335,614.93

  	
   

  
	
  1/20/2011

  	
   

  	
  6,335,614.93

  	
   

  	
  163,795.04

  	
   

  	
  31,097.31

  	
   

  	
  132,697.73

  	
   

  	
  6,202,917.20

  	
   

  
	
  2/20/2011

  	
   

  	
  6,202,917.20

  	
   

  	
  163,795.04

  	
   

  	
  30,445.99

  	
   

  	
  133,349.05

  	
   

  	
  6,069,568.15

  	
   

  
	
  3/20/2011

  	
   

  	
  6,069,568.15

  	
   

  	
  163,795.04

  	
   

  	
  29,791.46

  	
   

  	
  134,003.58

  	
   

  	
  5,935,564.57

  	
   

  
	
  4/20/2011

  	
   

  	
  5,935,564.57

  	
   

  	
  163,795.04

  	
   

  	
  29,133.73

  	
   

  	
  134,661.31

  	
   

  	
  5,800,903.26

  	
   

  
	
  5/20/2011

  	
   

  	
  5,800,903.26

  	
   

  	
  163,795.04

  	
   

  	
  28,472.77

  	
   

  	
  135,322.27

  	
   

  	
  5,665,580.99

  	
   

  
	
  6/20/2011

  	
   

  	
  5,665,580.99

  	
   

  	
  163,795.04

  	
   

  	
  27,808.56

  	
   

  	
  135,986.48

  	
   

  	
  5,529,594.51

  	
   

  
	
  7/20/2011

  	
   

  	
  5,529,594.51

  	
   

  	
  163,795.04

  	
   

  	
  27,141.09

  	
   

  	
  136,653.95

  	
   

  	
  5,392,940.56

  	
   

  
	
  8/20/2011

  	
   

  	
  5,392,940.56

  	
   

  	
  163,795.04

  	
   

  	
  26,470.35

  	
   

  	
  137,324.69

  	
   

  	
  5,255,615.87

  	
   

  
	
  9/20/2011

  	
   

  	
  5,255,615.87

  	
   

  	
  163,795.04

  	
   

  	
  25,796.31

  	
   

  	
  137,998.73

  	
   

  	
  5,117,617.14

  	
   

  
	
  10/20/2011

  	
   

  	
  5,117,617.14

  	
   

  	
  163,795.04

  	
   

  	
  25,118.97

  	
   

  	
  138,676.07

  	
   

  	
  4,978,941.07

  	
   

  
	
  11/20/2011

  	
   

  	
  4,978,941.07

  	
   

  	
  163,795.04

  	
   

  	
  24,438.30

  	
   

  	
  139,356.74

  	
   

  	
  4,839,584.33

  	
   

  
	
  12/20/2011

  	
   

  	
  4,839,584.33

  	
   

  	
  163,795.04

  	
   

  	
  23,754.29

  	
   

  	
  140,040.75

  	
   

  	
  4,699,543.58

  	
   

  
	
  1/20/2012

  	
   

  	
  4,699,543.58

  	
   

  	
  163,795.04

  	
   

  	
  23,066.93

  	
   

  	
  140,728.11

  	
   

  	
  4,558,815.47

  	
   

  
	
  2/20/2012

  	
   

  	
  4,558,815.47

  	
   

  	
  163,795.04

  	
   

  	
  22,376.19

  	
   

  	
  141,418.85

  	
   

  	
  4,417,396.62

  	
   

  
	
  3/20/2012

  	
   

  	
  4,417,396.62

  	
   

  	
  163,795.04

  	
   

  	
  21,682.05

  	
   

  	
  142,112.99

  	
   

  	
  4,275,283.63

  	
   

  
	
  4/20/2012

  	
   

  	
  4,275,283.63

  	
   

  	
  163,795.04

  	
   

  	
  20,984.52

  	
   

  	
  142,810.52

  	
   

  	
  4,132,473.11

  	
   

  
	
  5/20/2012

  	
   

  	
  4,132,473.11

  	
   

  	
  163,795.04

  	
   

  	
  20,283.56

  	
   

  	
  143,511.48

  	
   

  	
  3,988,961.63

  	
   

  
	
  6/20/2012

  	
   

  	
  3,988,961.63

  	
   

  	
  163,795.04

  	
   

  	
  19,579.15

  	
   

  	
  144,215.89

  	
   

  	
  3,844,745.74

  	
   

  
	
  7/20/2012

  	
   

  	
  3,844,745.74

  	
   

  	
  163,795.04

  	
   

  	
  18,871.29

  	
   

  	
  144,923.75

  	
   

  	
  3,699,821.99

  	
   

  
	
  8/20/2012

  	
   

  	
  3,699,821.99

  	
   

  	
  163,795.04

  	
   

  	
  18,159.96

  	
   

  	
  145,635.08

  	
   

  	
  3,554,186.91

  	
   

  
	
  9/20/2012

  	
   

  	
  3,554,186.91

  	
   

  	
  163,795.04

  	
   

  	
  17,445.13

  	
   

  	
  146,349.91

  	
   

  	
  3,407,837.00

  	
   

  
	
  10/20/2012

  	
   

  	
  3,407,837.00

  	
   

  	
  163,795.04

  	
   

  	
  16,726.80

  	
   

  	
  147,068.24

  	
   

  	
  3,260,768.76

  	
   

  
	
  11/20/2012

  	
   

  	
  3,260,768.76

  	
   

  	
  163,795.04

  	
   

  	
  16,004.94

  	
   

  	
  147,790.10

  	
   

  	
  3,112,978.66

  	
   

  
	
  12/20/2012

  	
   

  	
  3,112,978.66

  	
   

  	
  163,795.04

  	
   

  	
  15,279.54

  	
   

  	
  148,515.50

  	
   

  	
  2,964,463.16

  	
   

  
	
  1/20/2013

  	
   

  	
  2,964,463.16

  	
   

  	
  163,795.04

  	
   

  	
  14,550.57

  	
   

  	
  149,244.47

  	
   

  	
  2,815,218.69

  	
   

  
	
  2/20/2013

  	
   

  	
  2,815,218.69

  	
   

  	
  163,795.04

  	
   

  	
  13,818.03

  	
   

  	
  149,977.01

  	
   

  	
  2,665,241.68

  	
   

  
	
  3/20/2013

  	
   

  	
  2,665,241.68

  	
   

  	
  163,795.04

  	
   

  	
  13,081.89

  	
   

  	
  150,713.15

  	
   

  	
  2,514,528.53

  	
   

  
	
  4/20/2013

  	
   

  	
  2,514,528.53

  	
   

  	
  163,795.04

  	
   

  	
  12,342.14

  	
   

  	
  151,452.90

  	
   

  	
  2,363,075.63

  	
   

  
	
  5/20/2013

  	
   

  	
  2,363,075.63

  	
   

  	
  163,795.04

  	
   

  	
  11,598.76

  	
   

  	
  152,196.28

  	
   

  	
  2,210,879.35

  	
   

  
	
  6/20/2013

  	
   

  	
  2,210,879.35

  	
   

  	
  163,795.04

  	
   

  	
  10,851.73

  	
   

  	
  152,943.31

  	
   

  	
  2,057,936.04

  	
   

  
	
  7/20/2013

  	
   

  	
  2,057,936.04

  	
   

  	
  163,795.04

  	
   

  	
  10,101.04

  	
   

  	
  153,694.00

  	
   

  	
  1,904,242.04

  	
   

  
	
  8/20/2013

  	
   

  	
  1,904,242.04

  	
   

  	
  163,795.04

  	
   

  	
  9,346.65

  	
   

  	
  154,448.39

  	
   

  	
  1,749,793.65

  	
   

  
	
  9/20/2013

  	
   

  	
  1,749,793.65

  	
   

  	
  163,795.04

  	
   

  	
  8,588.57

  	
   

  	
  155,206.47

  	
   

  	
  1,594,587.18

  	
   

  
	
  10/20/2013

  	
   

  	
  1,594,587.18

  	
   

  	
  163,795.04

  	
   

  	
  7,826.76

  	
   

  	
  155,968.28

  	
   

  	
  1,438,618.90

  	
   

  
	
  11/20/2013

  	
   

  	
  1,438,618.90

  	
   

  	
  163,795.04

  	
   

  	
  7,061.22

  	
   

  	
  156,733.82

  	
   

  	
  1,281,885.08

  	
   

  
	
  12/20/2013

  	
   

  	
  1,281,885.08

  	
   

  	
  163,795.04

  	
   

  	
  6,291.92

  	
   

  	
  157,503.12

  	
   

  	
  1,124,381.96

  	
   

  
	
  1/20/2014

  	
   

  	
  1,124,381.96

  	
   

  	
  163,795.04

  	
   

  	
  5,518.84

  	
   

  	
  158,276.20

  	
   

  	
  966,105.76

  	
   

  
	
  2/20/2014

  	
   

  	
  966,105.76

  	
   

  	
  163,795.04

  	
   

  	
  4,741.97

  	
   

  	
  159,053.07

  	
   

  	
  807,052.69

  	
   

  
	
  3/20/2014

  	
   

  	
  807,052.69

  	
   

  	
  163,795.04

  	
   

  	
  3,961.28

  	
   

  	
  159,833.76

  	
   

  	
  647,218.93

  	
   

  
	
  4/20/2014

  	
   

  	
  647,218.93

  	
   

  	
  163,795.04

  	
   

  	
  3,176.77

  	
   

  	
  160,618.27

  	
   

  	
  486,600.66

  	
   

  
	
  5/20/2014

  	
   

  	
  486,600.66

  	
   

  	
  163,795.04

  	
   

  	
  2,388.40

  	
   

  	
  161,406.64

  	
   

  	
  325,194.02

  	
   

  
	
  6/20/2014

  	
   

  	
  325,194.02

  	
   

  	
  163,795.04

  	
   

  	
  1,596.16

  	
   

  	
  162,198.88

  	
   

  	
  162,995.14

  	
   

  
	
  7/20/2014

  	
   

  	
  162,995.14

  	
   

  	
  163,795.04

  	
   

  	
  799.90

  	
   

  	
  162,995.14

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
  9,827,702.40

  	
   

  	
  1,332,855.40

  	
   

  	
  8,494,847.00

  	
   

  	
   

  	
   

  

 

 

	
  ARB, Inc. 2026901

  	
   

  
	
   

  	
   

  
	
  Compound
  Period:

  	
  Monthly

  
	
   

  	
   

  
	
  Nominal
  Annual Rate:

  	
  5.510%

  
	
   

  	
   

  
	
  CASH
  FLOW DATA

  	
   

  

 

	
   

  	
   

  	
  Event

  	
   

  	
  Date

  	
   

  	
  Amount

  	
   

  	
  Number

  	
   

  	
  Period

  	
   

  	
  End Date

  	
   

  
	
  1

  	
   

  	
  Loan

  	
   

  	
  9/23/2009

  	
   

  	
  2,375,855.00

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Payment

  	
   

  	
  10/23/2009

  	
   

  	
  45,392.56

  	
   

  	
  60

  	
   

  	
  Monthly

  	
   

  	
  9/23/2014

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMORTIZATION SCHEDULE - Normal Amortization

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  	
   

  	
   

  
	
  Loan

  	
   

  	
  9/23/2009

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,375,855.00

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  10/23/2009

  	
   

  	
  45,392.56

  	
   

  	
  10,909.14

  	
   

  	
  34,483.42

  	
   

  	
  2,341,371.58

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  11/23/2009

  	
   

  	
  45,392.56

  	
   

  	
  10,750.80

  	
   

  	
  34,641.76

  	
   

  	
  2,306,729.82

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  12/23/2009

  	
   

  	
  45,392.56

  	
   

  	
  10,591.74

  	
   

  	
  34,800.82

  	
   

  	
  2,271,929.00

  	
   

  	
   

  	
   

  
	
  2009 Totals

  	
   

  	
   

  	
   

  	
  136,177.68

  	
   

  	
  32,251.68

  	
   

  	
  103,926.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  1/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  10,431.94

  	
   

  	
  34,960.62

  	
   

  	
  2,236,968.38

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  2/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  10,271.42

  	
   

  	
  35,121.14

  	
   

  	
  2,201,847.24

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  3/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  10,110.15

  	
   

  	
  35,282.41

  	
   

  	
  2,166,564.83

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  4/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  9,948.15

  	
   

  	
  35,444.41

  	
   

  	
  2,131,120.42

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  5/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  9,785.40

  	
   

  	
  35,607.16

  	
   

  	
  2,095,513.26

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  6/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  9,621.90

  	
   

  	
  35,770.66

  	
   

  	
  2,059,742.60

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  7/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  9,457.65

  	
   

  	
  35,934.91

  	
   

  	
  2,023,807.69

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  8/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  9,292.65

  	
   

  	
  36,099.91

  	
   

  	
  1,987,707.78

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  9/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  9,126.89

  	
   

  	
  36,265.67

  	
   

  	
  1,951,442.11

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  10/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  8,960.37

  	
   

  	
  36,432.19

  	
   

  	
  1,915,009.92

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  11/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  8,793.09

  	
   

  	
  36,599.47

  	
   

  	
  1,878,410.45

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  12/23/2010

  	
   

  	
  45,392.56

  	
   

  	
  8,625.04

  	
   

  	
  36,767.52

  	
   

  	
  1,841,642.93

  	
   

  	
   

  	
   

  
	
  2010 Totals

  	
   

  	
   

  	
   

  	
  544,710.72

  	
   

  	
  114,424.65

  	
   

  	
  430,286.07

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  1/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  8,456.21

  	
   

  	
  36,936.35

  	
   

  	
  1,804,706.58

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  2/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  8,286.61

  	
   

  	
  37,105.95

  	
   

  	
  1,767,600.63

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  3/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  8,116.23

  	
   

  	
  37,276.33

  	
   

  	
  1,730,324.30

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  4/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  7,945.07

  	
   

  	
  37,447.49

  	
   

  	
  1,692,876.81

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  5/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  7,773.13

  	
   

  	
  37,619.43

  	
   

  	
  1,655,257.38

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  6/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  7,600.39

  	
   

  	
  37,792.17

  	
   

  	
  1,617,465.21

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  7/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  7,426.86

  	
   

  	
  37,965.70

  	
   

  	
  1,579,499.51

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  8/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  7,252.54

  	
   

  	
  38,140.02

  	
   

  	
  1,541,359.49

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  9/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  7,077.41

  	
   

  	
  38,315.15

  	
   

  	
  1,503,044.34

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  10/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  6,901.48

  	
   

  	
  38,491.08

  	
   

  	
  1,464,553.26

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  11/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  6,724.74

  	
   

  	
  38,667.82

  	
   

  	
  1,425,885.44

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  12/23/2011

  	
   

  	
  45,392.56

  	
   

  	
  6,547.19

  	
   

  	
  38,845.37

  	
   

  	
  1,387,040.07

  	
   

  	
   

  	
   

  
	
  2011 Totals

  	
   

  	
   

  	
   

  	
  544,710.72

  	
   

  	
  90,107.86

  	
   

  	
  454,602.86

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  1/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  6,368.83

  	
   

  	
  39,023.73

  	
   

  	
  1,348,016.34

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  2/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  6,189.64

  	
   

  	
  39,202.92

  	
   

  	
  1,308,813.42

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  3/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  6,009.64

  	
   

  	
  39,382.92

  	
   

  	
  1,269,430.50

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  4/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  5,828.80

  	
   

  	
  39,563.76

  	
   

  	
  1,229,866.74

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  5/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  5,647.14

  	
   

  	
  39,745.42

  	
   

  	
  1,190,121.32

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  6/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  5,464.64

  	
   

  	
  39,927.92

  	
   

  	
  1,150,193.40

  	
   

  	
   

  	
   

  
															

 

 

	
  34

  	
   

  	
  7/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  5,281.31

  	
   

  	
  40,111.25

  	
   

  	
  1,110,082.15

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  8/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  5,097.13

  	
   

  	
  40,295.43

  	
   

  	
  1,069,786.72

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  9/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  4,912.11

  	
   

  	
  40,480.45

  	
   

  	
  1,029,306.27

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  10/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  4,726.23

  	
   

  	
  40,666.33

  	
   

  	
  988,639.94

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  11/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  4,539.51

  	
   

  	
  40,853.05

  	
   

  	
  947,786.89

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  12/23/2012

  	
   

  	
  45,392.56

  	
   

  	
  4,351.92

  	
   

  	
  41,040.64

  	
   

  	
  906,746.25

  	
   

  	
   

  	
   

  
	
  2012 Totals

  	
   

  	
   

  	
   

  	
  544,710.72

  	
   

  	
  64,416.90

  	
   

  	
  480,293.82

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  1/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  4,163.48

  	
   

  	
  41,229.08

  	
   

  	
  865,517.17

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  2/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  3,974.17

  	
   

  	
  41,418.39

  	
   

  	
  824,098.78

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  3/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  3,783.99

  	
   

  	
  41,608.57

  	
   

  	
  782,490.21

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  4/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  3,592.93

  	
   

  	
  41,799.63

  	
   

  	
  740,690.58

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  5/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  3,401.00

  	
   

  	
  41,991.56

  	
   

  	
  698,699.02

  	
   

  	
   

  	
   

  
	
  45

  	
   

  	
  6/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  3,208.19

  	
   

  	
  42,184.37

  	
   

  	
  656,514.65

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  7/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  3,014.50

  	
   

  	
  42,378.06

  	
   

  	
  614,136.59

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  8/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  2,819.91

  	
   

  	
  42,572.65

  	
   

  	
  571,563.94

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  9/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  2,624.43

  	
   

  	
  42,768.13

  	
   

  	
  528,795.81

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  10/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  2,428.05

  	
   

  	
  42,964.51

  	
   

  	
  485,831.30

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  11/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  2,230.78

  	
   

  	
  43,161.78

  	
   

  	
  442,669.52

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  12/23/2013

  	
   

  	
  45,392.56

  	
   

  	
  2,032.59

  	
   

  	
  43,359.97

  	
   

  	
  399,309.55

  	
   

  	
   

  	
   

  
	
  2013 Totals

  	
   

  	
   

  	
   

  	
  544,710.72

  	
   

  	
  37,274.02

  	
   

  	
  507,436.70

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52

  	
   

  	
  1/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  1,833.50

  	
   

  	
  43,559.06

  	
   

  	
  355,750.49

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  2/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  1,633.49

  	
   

  	
  43,759.07

  	
   

  	
  311,991.42

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  3/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  1,432.56

  	
   

  	
  43,960.00

  	
   

  	
  268,031.42

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  4/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  1,230.71

  	
   

  	
  44,161.85

  	
   

  	
  223,869.57

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
  5/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  1,027.93

  	
   

  	
  44,364.63

  	
   

  	
  179,504.94

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  6/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  824.23

  	
   

  	
  44,568.33

  	
   

  	
  134,936.61

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  7/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  619.58

  	
   

  	
  44,772.98

  	
   

  	
  90,163.63

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  8/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  414.00

  	
   

  	
  44,978.56

  	
   

  	
  45,185.07

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  9/23/2014

  	
   

  	
  45,392.56

  	
   

  	
  207.49

  	
   

  	
  45,185.07

  	
   

  	
  0.00

  	
   

  	
   

  	
   

  
	
  2014 Totals

  	
   

  	
   

  	
   

  	
  408,533.04

  	
   

  	
  9,223.49

  	
   

  	
  399,309.55

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Totals

  	
   

  	
   

  	
   

  	
  2,723,553.60

  	
   

  	
  347,698.60

  	
   

  	
  2,375,855.00

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

This
amortization instrument is intended for informational purposes only and may not
be used in connection with payoff requests or used to override any end of lease
contractual provisions.

 

 

FIFTH
THRID 093-0084195-018

 

	
  AMOUNT

  	
   

  	
  1,700,000.00

  	
   

  
	
  RATE

  	
   

  	
  5.10

  	
  %

  
	
  AMOUNT

  	
   

  	
  $

  	
  32,159.04

  	
   

  
					

 

	
  PAYMENT

  	
   

  	
  DATE

  	
   

  	
  PAYMENT

  	
   

  	
  PRIN

  	
   

  	
  INT

  	
   

  	
  BAL

  	
   

  
	
   

  	
   

  	
  9/11/2009

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,700,000.00

  	
   

  
	
  0

  	
   

  	
  9/15/2009

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  963.33

  	
   

  	
  1,700,000.00

  	
   

  
	
  1

  	
   

  	
  10/15/2009

  	
   

  	
  32,159.04

  	
   

  	
  $

  	
  24,934.04

  	
   

  	
  7,225.00

  	
   

  	
  1,675,065.96

  	
   

  
	
  2

  	
   

  	
  11/15/2009

  	
   

  	
  32,159.04

  	
   

  	
  25,040.01

  	
   

  	
  7,119.03

  	
   

  	
  1,650,025.95

  	
   

  
	
  3

  	
   

  	
  12/15/2009

  	
   

  	
  32,159.04

  	
   

  	
  25,146.43

  	
   

  	
  7,012.61

  	
   

  	
  1,624,879.52

  	
   

  
	
  4

  	
   

  	
  1/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  25,253.30

  	
   

  	
  6,905.74

  	
   

  	
  1,599,626.22

  	
   

  
	
  5

  	
   

  	
  2/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  25,360.63

  	
   

  	
  6,798.41

  	
   

  	
  1,574,265.59

  	
   

  
	
  6

  	
   

  	
  3/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  25,468.41

  	
   

  	
  6,690.63

  	
   

  	
  1,548,797.18

  	
   

  
	
  7

  	
   

  	
  4/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  25,576.65

  	
   

  	
  6,582.39

  	
   

  	
  1,523,220.53

  	
   

  
	
  8

  	
   

  	
  5/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  25,685.35

  	
   

  	
  6,473.69

  	
   

  	
  1,497,535.18

  	
   

  
	
  9

  	
   

  	
  6/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  25,794.52

  	
   

  	
  6,364.52

  	
   

  	
  1,471,740.66

  	
   

  
	
  10

  	
   

  	
  7/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  25,904.14

  	
   

  	
  6,254.90

  	
   

  	
  1,445,836.52

  	
   

  
	
  11

  	
   

  	
  8/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  26,014.23

  	
   

  	
  6,144.81

  	
   

  	
  1,419,822.29

  	
   

  
	
  12

  	
   

  	
  9/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  26,124.80

  	
   

  	
  6,034.24

  	
   

  	
  1,393,697.49

  	
   

  
	
  13

  	
   

  	
  10/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  26,235.83

  	
   

  	
  5,923.21

  	
   

  	
  1,367,461.66

  	
   

  
	
  14

  	
   

  	
  11/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  26,347.33

  	
   

  	
  5,811.71

  	
   

  	
  1,341,114.33

  	
   

  
	
  15

  	
   

  	
  12/15/2010

  	
   

  	
  32,159.04

  	
   

  	
  26,459.30

  	
   

  	
  5,699.74

  	
   

  	
  1,314,655.03

  	
   

  
	
  16

  	
   

  	
  1/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  26,571.76

  	
   

  	
  5,587.28

  	
   

  	
  1,288,083.27

  	
   

  
	
  17

  	
   

  	
  2/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  26,684.69

  	
   

  	
  5,474.35

  	
   

  	
  1,261,398.58

  	
   

  
	
  18

  	
   

  	
  3/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  26,798.10

  	
   

  	
  5,360.94

  	
   

  	
  1,234,600.48

  	
   

  
	
  19

  	
   

  	
  4/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  26,911.99

  	
   

  	
  5,247.05

  	
   

  	
  1,207,688.49

  	
   

  
	
  20

  	
   

  	
  5/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,026.36

  	
   

  	
  5,132.68

  	
   

  	
  1,180,662.13

  	
   

  
	
  21

  	
   

  	
  6/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,141.23

  	
   

  	
  5,017.81

  	
   

  	
  1,153,520.90

  	
   

  
	
  22

  	
   

  	
  7/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,256.58

  	
   

  	
  4,902.46

  	
   

  	
  1,126,264.32

  	
   

  
	
  23

  	
   

  	
  8/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,372.42

  	
   

  	
  4,786.62

  	
   

  	
  1,098,891.90

  	
   

  
	
  24

  	
   

  	
  9/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,488.75

  	
   

  	
  4,670.29

  	
   

  	
  1,071,403.15

  	
   

  
	
  25

  	
   

  	
  10/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,605.58

  	
   

  	
  4,553.46

  	
   

  	
  1,043,797.57

  	
   

  
	
  26

  	
   

  	
  11/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,722.90

  	
   

  	
  4,436.14

  	
   

  	
  1,016,074.67

  	
   

  
	
  27

  	
   

  	
  12/15/2011

  	
   

  	
  32,159.04

  	
   

  	
  27,840.72

  	
   

  	
  4,318.32

  	
   

  	
  988,233.95

  	
   

  
	
  28

  	
   

  	
  1/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  27,959.05

  	
   

  	
  4,199.99

  	
   

  	
  960,274.90

  	
   

  
	
  29

  	
   

  	
  2/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,077.87

  	
   

  	
  4,081.17

  	
   

  	
  932,197.03

  	
   

  
	
  30

  	
   

  	
  3/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,197.20

  	
   

  	
  3,961.84

  	
   

  	
  903,999.83

  	
   

  
	
  31

  	
   

  	
  4/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,317.04

  	
   

  	
  3,842.00

  	
   

  	
  875,682.79

  	
   

  
	
  32

  	
   

  	
  5/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,437.39

  	
   

  	
  3,721.65

  	
   

  	
  847,245.40

  	
   

  
	
  33

  	
   

  	
  6/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,558.25

  	
   

  	
  3,600.79

  	
   

  	
  818,687.15

  	
   

  
	
  34

  	
   

  	
  7/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,679.62

  	
   

  	
  3,479.42

  	
   

  	
  790,007.53

  	
   

  
	
  35

  	
   

  	
  8/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,801.51

  	
   

  	
  3,357.53

  	
   

  	
  761,206.02

  	
   

  
	
  36

  	
   

  	
  9/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  28,923.91

  	
   

  	
  3,235.13

  	
   

  	
  732,282.11

  	
   

  
	
  37

  	
   

  	
  10/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  29,046.84

  	
   

  	
  3,112.20

  	
   

  	
  703,235.27

  	
   

  
	
  38

  	
   

  	
  11/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  29,170.29

  	
   

  	
  2,988.75

  	
   

  	
  674,064.98

  	
   

  
	
  39

  	
   

  	
  12/15/2012

  	
   

  	
  32,159.04

  	
   

  	
  29,294.26

  	
   

  	
  2,864.78

  	
   

  	
  644,770.72

  	
   

  
	
  40

  	
   

  	
  1/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  29,418.76

  	
   

  	
  2,740.28

  	
   

  	
  615,351.96

  	
   

  
	
  41

  	
   

  	
  2/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  29,543.79

  	
   

  	
  2,615.25

  	
   

  	
  585,808.17

  	
   

  
	
  42

  	
   

  	
  3/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  29,669.36

  	
   

  	
  2,489.68

  	
   

  	
  556,138.81

  	
   

  
	
  43

  	
   

  	
  4/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  29,795.45

  	
   

  	
  2,363.59

  	
   

  	
  526,343.36

  	
   

  
	
  44

  	
   

  	
  5/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  29,922.08

  	
   

  	
  2,236.96

  	
   

  	
  496,421.28

  	
   

  
	
  45

  	
   

  	
  6/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  30,049.25

  	
   

  	
  2,109.79

  	
   

  	
  466,372.03

  	
   

  
	
  46

  	
   

  	
  7/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  30,176.96

  	
   

  	
  1,982.08

  	
   

  	
  436,195.07

  	
   

  
	
  47

  	
   

  	
  8/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  30,305.21

  	
   

  	
  1,853.83

  	
   

  	
  405,889.86

  	
   

  
	
  48

  	
   

  	
  9/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  30,434.01

  	
   

  	
  1,725.03

  	
   

  	
  375,455.85

  	
   

  
	
  49

  	
   

  	
  10/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  30,563.35

  	
   

  	
  1,595.69

  	
   

  	
  344,892.50

  	
   

  
	
  50

  	
   

  	
  11/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  30,693.25

  	
   

  	
  1,465.79

  	
   

  	
  314,199.25

  	
   

  
	
  51

  	
   

  	
  12/15/2013

  	
   

  	
  32,159.04

  	
   

  	
  30,823.69

  	
   

  	
  1,335.35

  	
   

  	
  283,375.56

  	
   

  
	
  52

  	
   

  	
  1/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  30,954.69

  	
   

  	
  1,204.35

  	
   

  	
  252,420.87

  	
   

  
	
  53

  	
   

  	
  2/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  31,086.25

  	
   

  	
  1,072.79

  	
   

  	
  221,334.62

  	
   

  
	
  54

  	
   

  	
  3/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  31,218.37

  	
   

  	
  940.67

  	
   

  	
  190,116.25

  	
   

  
	
  55

  	
   

  	
  4/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  31,351.05

  	
   

  	
  807.99

  	
   

  	
  158,765.20

  	
   

  
	
  56

  	
   

  	
  5/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  31,484.29

  	
   

  	
  674.75

  	
   

  	
  127,280.91

  	
   

  
	
  57

  	
   

  	
  6/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  31,618.10

  	
   

  	
  540.94

  	
   

  	
  95,662.81

  	
   

  
	
  58

  	
   

  	
  7/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  31,752.47

  	
   

  	
  406.57

  	
   

  	
  63,910.34

  	
   

  
	
  59

  	
   

  	
  8/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  31,887.42

  	
   

  	
  271.62

  	
   

  	
  32,022.92

  	
   

  
	
  60

  	
   

  	
  9/15/2014

  	
   

  	
  32,159.04

  	
   

  	
  32,022.92

  	
   

  	
  136.12

  	
   

  	
  —

  	
   

  
													

 

 

STELLARIS - KEY LEASE

 

Compound Period: Monthly

 

Nominal Annual Rate: 5.863%

 

CASH FLOW DATA

 

	
   

  	
   

  	
  EVENT

  	
   

  	
  DATE

  	
   

  	
  AMOUNT

  	
   

  	
  NUMBER

  	
   

  	
  PERIOD

  	
   

  	
  END DATE

  	
   

  
	
  1

  	
   

  	
  Loan

  	
   

  	
  12/21/2007

  	
   

  	
  2,100,300.00

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Payment

  	
   

  	
  1/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  24

  	
   

  	
  Monthly

  	
   

  	
  12/21/2009

  	
   

  
	
  3

  	
   

  	
  Payment

  	
   

  	
  12/21/2009

  	
   

  	
  262,537.50

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

AMORTIZATION SCHEDULE - Normal Amortization

 

	
   

  	
   

  	
  DATE

  	
   

  	
  PAYMENT

  	
   

  	
  INTEREST

  	
   

  	
  PRINCIPAL

  	
   

  	
  BALANCE

  	
   

  	
   

  	
   

  
	
  Loan

  	
   

  	
  12/21/2007

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,100,300.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  1/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  10261.62

  	
   

  	
  72,358.39

  	
   

  	
  2,027,941.61

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  2/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  9908.09

  	
   

  	
  72,711.92

  	
   

  	
  1,955,229.69

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  3/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  9552.83

  	
   

  	
  73,067.18

  	
   

  	
  1,882,162.51

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  4/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  9195.84

  	
   

  	
  73,424.17

  	
   

  	
  1,808,738.34

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  5/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  8837.11

  	
   

  	
  73,782.90

  	
   

  	
  1,734,955.44

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  6/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  8476.62

  	
   

  	
  74,143.39

  	
   

  	
  1,660,812.05

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  7/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  8114.37

  	
   

  	
  74,505.64

  	
   

  	
  1,586,306.41

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  8/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  7750.35

  	
   

  	
  74,869.66

  	
   

  	
  1,511,436.75

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  9/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  7384.56

  	
   

  	
  75,235.45

  	
   

  	
  1,436,201.30

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  10/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  7016.97

  	
   

  	
  75,603.04

  	
   

  	
  1,360,598.26

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  11/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  6647.59

  	
   

  	
  75,972.42

  	
   

  	
  1,284,625.84

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  12/21/2008

  	
   

  	
  82,620.01

  	
   

  	
  6276.41

  	
   

  	
  76,343.60

  	
   

  	
  1,208,282.24

  	
   

  	
   

  	
   

  
	
  2008 Totals

  	
   

  	
   

  	
   

  	
  991,440.12

  	
   

  	
  99,422.36

  	
   

  	
  892,017.76

  	
   

  	
  19,457,290.44

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  1/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  5,903.41

  	
   

  	
  76,716.60

  	
   

  	
  1,131,565.64

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  2/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  5,528.59

  	
   

  	
  77,091.42

  	
   

  	
  1,054,474.22

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  3/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  5,151.94

  	
   

  	
  77,468.07

  	
   

  	
  977,006.15

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  4/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  4,773.44

  	
   

  	
  77,846.57

  	
   

  	
  899,159.58

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  5/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  4,393.10

  	
   

  	
  78,226.91

  	
   

  	
  820,932.67

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  6/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  4,010.90

  	
   

  	
  78,609.11

  	
   

  	
  742,323.56

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  7/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  3,626.83

  	
   

  	
  78,993.18

  	
   

  	
  663,330.38

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  8/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  3,240.89

  	
   

  	
  79,379.12

  	
   

  	
  583,951.26

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  9/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  2,853.06

  	
   

  	
  79,766.95

  	
   

  	
  504,184.31

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  10/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  2,463.34

  	
   

  	
  80,156.67

  	
   

  	
  424,027.64

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  11/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  2,071.71

  	
   

  	
  80,548.30

  	
   

  	
  343,479.34

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  12/21/2009

  	
   

  	
  82,620.01

  	
   

  	
  1,678.17

  	
   

  	
  80,941.84

  	
   

  	
  262,537.50

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  12/21/2009

  	
   

  	
  262,537.50

  	
   

  	
  0.00

  	
   

  	
  262,537.50

  	
   

  	
  0.00

  	
   

  	
   

  	
   

  
	
  2009 Totals

  	
   

  	
   

  	
   

  	
  1,253,977.62

  	
   

  	
  45,695.38

  	
   

  	
  1,208,282.24

  	
   

  	
  8,406,972.25

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Totals

  	
   

  	
   

  	
   

  	
  2,245,417.74

  	
   

  	
  145,117.74

  	
   

  	
  2,100,300.00

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

STELLARIS-CAT LOAN -05/07

 

Compound Period Monthly

 

Nominal Annual Rate 5.29948%

 

Amoritzation Schedule

 

	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loan

  	
   

  	
  05/01/07

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,469,898.70

  	
   

  
	
  1

  	
   

  	
  06/01/07

  	
   

  	
  0.00

  	
   

  	
  15,134.08

  	
   

  	
  (15,134.08

  	
  )

  	
  4,485,032.78

  	
   

  
	
  2

  	
   

  	
  07/01/07

  	
   

  	
  84,967.17

  	
   

  	
  19,519.27

  	
   

  	
  65,447.90

  	
   

  	
  4,419,584.88

  	
   

  
	
  3

  	
   

  	
  08/01/07

  	
   

  	
  84,967.17

  	
   

  	
  19,230.23

  	
   

  	
  65,736.94

  	
   

  	
  4,353,847.94

  	
   

  
	
  4

  	
   

  	
  09/01/07

  	
   

  	
  84,967.17

  	
   

  	
  18,939.92

  	
   

  	
  66,027.25

  	
   

  	
  4,287,820.69

  	
   

  
	
  5

  	
   

  	
  10/01/07

  	
   

  	
  84,967.17

  	
   

  	
  18,648.33

  	
   

  	
  66,318.84

  	
   

  	
  4,221,501.85

  	
   

  
	
  6

  	
   

  	
  11/01/07

  	
   

  	
  84,967.17

  	
   

  	
  18,355.44

  	
   

  	
  66,611.73

  	
   

  	
  4,154,890.12

  	
   

  
	
  7

  	
   

  	
  12/27/07

  	
   

  	
  84,967.17

  	
   

  	
  18,061.28

  	
   

  	
  66,905.89

  	
   

  	
  4,087,984.23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2007 Totals

  	
   

  	
   

  	
   

  	
  509,803.02

  	
   

  	
  127,888.55

  	
   

  	
  381,914.47

  	
   

  	
  4,087,984.23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  01/01/08

  	
   

  	
  84,967.17

  	
   

  	
  17,765.81

  	
   

  	
  67,201.36

  	
   

  	
  4,020,782.87

  	
   

  
	
  9

  	
   

  	
  02/01/08

  	
   

  	
  84,967.17

  	
   

  	
  17,469.03

  	
   

  	
  67,498.14

  	
   

  	
  3,953,284.73

  	
   

  
	
  10

  	
   

  	
  03/01/08

  	
   

  	
  84,967.17

  	
   

  	
  17,170.94

  	
   

  	
  67,796.23

  	
   

  	
  3,885,488.50

  	
   

  
	
  11

  	
   

  	
  04/01/08

  	
   

  	
  84,967.17

  	
   

  	
  16,871.54

  	
   

  	
  68,095.63

  	
   

  	
  3,817,392.87

  	
   

  
	
  12

  	
   

  	
  05/01/08

  	
   

  	
  84,967.17

  	
   

  	
  16,570.82

  	
   

  	
  68,396.35

  	
   

  	
  3,748,996.52

  	
   

  
	
  13

  	
   

  	
  06/01/08

  	
   

  	
  84,967.17

  	
   

  	
  16,268.76

  	
   

  	
  68,698.41

  	
   

  	
  3,680,298.11

  	
   

  
	
  14

  	
   

  	
  07/01/08

  	
   

  	
  84,967.17

  	
   

  	
  15,965.37

  	
   

  	
  69,001.80

  	
   

  	
  3,611,296.31

  	
   

  
	
  15

  	
   

  	
  08/01/08

  	
   

  	
  84,967.17

  	
   

  	
  15,660.65

  	
   

  	
  69,306.52

  	
   

  	
  3,541,989.79

  	
   

  
	
  16

  	
   

  	
  09/01/08

  	
   

  	
  84,967.17

  	
   

  	
  15,354.57

  	
   

  	
  69,612.60

  	
   

  	
  3,472,377.19

  	
   

  
	
  17

  	
   

  	
  10/01/08

  	
   

  	
  84,967.17

  	
   

  	
  15,047.14

  	
   

  	
  69,920.03

  	
   

  	
  3,402,457.16

  	
   

  
	
  18

  	
   

  	
  11/01/08

  	
   

  	
  84,967.17

  	
   

  	
  14,738.37

  	
   

  	
  70,228.80

  	
   

  	
  3,332,228.36

  	
   

  
	
  19

  	
   

  	
  12/01/08

  	
   

  	
  84,967.17

  	
   

  	
  14,428.21

  	
   

  	
  70,538.96

  	
   

  	
  3,261,689.40

  	
   

  
	
  2008 Totals

  	
   

  	
   

  	
   

  	
  1,019,606.04

  	
   

  	
  193,311.21

  	
   

  	
  826,294.83

  	
   

  	
  3,261,689.40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  01/01/09

  	
   

  	
  84,967.17

  	
   

  	
  14,116.70

  	
   

  	
  70,850.47

  	
   

  	
  3,190,838.93

  	
   

  
	
  21

  	
   

  	
  02/01/09

  	
   

  	
  84,967.17

  	
   

  	
  13,803.81

  	
   

  	
  71,163.36

  	
   

  	
  3,119,675.57

  	
   

  
	
  22

  	
   

  	
  03/01/09

  	
   

  	
  84,967.17

  	
   

  	
  13,489.53

  	
   

  	
  71,477.64

  	
   

  	
  3,048,197.93

  	
   

  
	
  23

  	
   

  	
  04/01/09

  	
   

  	
  84,967.17

  	
   

  	
  13,173.87

  	
   

  	
  71,793.30

  	
   

  	
  2,976,404.63

  	
   

  
	
  24

  	
   

  	
  05/01/09

  	
   

  	
  84,967.17

  	
   

  	
  12,856.82

  	
   

  	
  72,110.35

  	
   

  	
  2,904,294.28

  	
   

  
	
  25

  	
   

  	
  06/01/09

  	
   

  	
  84,967.17

  	
   

  	
  12,538.35

  	
   

  	
  72,428.82

  	
   

  	
  2,831,865.46

  	
   

  
	
  26

  	
   

  	
  07/01/09

  	
   

  	
  84,967.17

  	
   

  	
  12,218.49

  	
   

  	
  72,748.68

  	
   

  	
  2,759,116.78

  	
   

  
	
  27

  	
   

  	
  08/01/09

  	
   

  	
  84,967.17

  	
   

  	
  11,897.22

  	
   

  	
  73,069.95

  	
   

  	
  2,686,046.83

  	
   

  
	
  28

  	
   

  	
  09/01/09

  	
   

  	
  84,967.17

  	
   

  	
  11,574.53

  	
   

  	
  73,392.64

  	
   

  	
  2,612,654.19

  	
   

  
	
  29

  	
   

  	
  10/01/09

  	
   

  	
  84,967.17

  	
   

  	
  11,250.41

  	
   

  	
  73,716.76

  	
   

  	
  2,538,937.43

  	
   

  
	
  30

  	
   

  	
  11/01/09

  	
   

  	
  84,967.17

  	
   

  	
  10,924.86

  	
   

  	
  74,042.31

  	
   

  	
  2,464,895.12

  	
   

  
	
  31

  	
   

  	
  12/01/09

  	
   

  	
  84,967.17

  	
   

  	
  10,597.87

  	
   

  	
  74,369.30

  	
   

  	
  2,390,525.82

  	
   

  
	
  2009 Totals

  	
   

  	
   

  	
   

  	
  1,019,606.04

  	
   

  	
  148,442.46

  	
   

  	
  871,163.58

  	
   

  	
  2,390,525.82

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  01/01/10

  	
   

  	
  84,967.17

  	
   

  	
  10,269.43

  	
   

  	
  74,697.74

  	
   

  	
  2,315,828.08

  	
   

  
	
  33

  	
   

  	
  02/01/10

  	
   

  	
  84,967.17

  	
   

  	
  9,939.55

  	
   

  	
  75,027.62

  	
   

  	
  2,240,800.46

  	
   

  
	
  34

  	
   

  	
  03/01/10

  	
   

  	
  84,967.17

  	
   

  	
  9,608.21

  	
   

  	
  75,358.96

  	
   

  	
  2,165,441.50

  	
   

  
	
  35

  	
   

  	
  04/01/10

  	
   

  	
  84,967.17

  	
   

  	
  9,275.41

  	
   

  	
  75,691.76

  	
   

  	
  2,089,749.74

  	
   

  
	
  36

  	
   

  	
  05/01/10

  	
   

  	
  84,967.17

  	
   

  	
  8,941.14

  	
   

  	
  76,026.03

  	
   

  	
  2,013,723.71

  	
   

  
	
  37

  	
   

  	
  06/01/10

  	
   

  	
  84,967.17

  	
   

  	
  8,605.39

  	
   

  	
  76,361.78

  	
   

  	
  1,937,361.93

  	
   

  
	
  38

  	
   

  	
  07/01/10

  	
   

  	
  84,967.17

  	
   

  	
  8,268.16

  	
   

  	
  76,699.01

  	
   

  	
  1,860,662.92

  	
   

  
	
  39

  	
   

  	
  08/01/10

  	
   

  	
  84,967.17

  	
   

  	
  7,929.44

  	
   

  	
  77,037.73

  	
   

  	
  1,783,625.19

  	
   

  
	
  40

  	
   

  	
  09/01/10

  	
   

  	
  84,967.17

  	
   

  	
  7,589.22

  	
   

  	
  77,377.95

  	
   

  	
  1,706,247.24

  	
   

  
	
  41

  	
   

  	
  10/01/10

  	
   

  	
  84,967.17

  	
   

  	
  7,247.51

  	
   

  	
  77,719.66

  	
   

  	
  1,628,527.58

  	
   

  
	
  42

  	
   

  	
  11/01/10

  	
   

  	
  84,967.17

  	
   

  	
  6,904.28

  	
   

  	
  78,062.89

  	
   

  	
  1,550,464.69

  	
   

  
	
  43

  	
   

  	
  12/01/10

  	
   

  	
  84,967.17

  	
   

  	
  6,559.53

  	
   

  	
  78,407.64

  	
   

  	
  1,472,057.05

  	
   

  
	
  2010 Totals

  	
   

  	
   

  	
   

  	
  1,019,606.04

  	
   

  	
  101,137.27

  	
   

  	
  918,468.77

  	
   

  	
  1,472,057.05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  01/01/11

  	
   

  	
  84,967.17

  	
   

  	
  6,213.27

  	
   

  	
  78,753.90

  	
   

  	
  1,393,303.15

  	
   

  
	
  45

  	
   

  	
  02/01/11

  	
   

  	
  84,967.17

  	
   

  	
  5,865.47

  	
   

  	
  79,101.70

  	
   

  	
  1,314,201.45

  	
   

  
	
  46

  	
   

  	
  03/01/11

  	
   

  	
  84,967.17

  	
   

  	
  5,516.13

  	
   

  	
  79,451.04

  	
   

  	
  1,234,750.41

  	
   

  
	
  47

  	
   

  	
  04/01/11

  	
   

  	
  84,967.17

  	
   

  	
  5,165.26

  	
   

  	
  79,801.91

  	
   

  	
  1,154,948.50

  	
   

  
	
  48

  	
   

  	
  05/01/11

  	
   

  	
  84,967.17

  	
   

  	
  4,812.84

  	
   

  	
  80,154.33

  	
   

  	
  1,074,794.17

  	
   

  
	
  49

  	
   

  	
  06/01/11

  	
   

  	
  84,967.17

  	
   

  	
  4,458.86

  	
   

  	
  80,508.31

  	
   

  	
  994,285.86

  	
   

  
	
  50

  	
   

  	
  07/01/11

  	
   

  	
  84,967.17

  	
   

  	
  4,103.32

  	
   

  	
  80,863.85

  	
   

  	
  913,422.01

  	
   

  
	
  51

  	
   

  	
  08/01/11

  	
   

  	
  84,967.17

  	
   

  	
  3,746.20

  	
   

  	
  81,220.97

  	
   

  	
  832,201.04

  	
   

  
	
  52

  	
   

  	
  09/01/11

  	
   

  	
  84,967.17

  	
   

  	
  3,387.51

  	
   

  	
  81,579.66

  	
   

  	
  750,621.38

  	
   

  
	
  53

  	
   

  	
  10/01/11

  	
   

  	
  84,967.17

  	
   

  	
  3,027.24

  	
   

  	
  81,939.93

  	
   

  	
  668,681.45

  	
   

  
	
  54

  	
   

  	
  11/01/11

  	
   

  	
  84,967.17

  	
   

  	
  2,665.37

  	
   

  	
  82,301.80

  	
   

  	
  586,379.65

  	
   

  
	
  55

  	
   

  	
  12/01/11

  	
   

  	
  84,967.17

  	
   

  	
  2,301.91

  	
   

  	
  82,665.26

  	
   

  	
  503,714.39

  	
   

  
	
  2011 Totals

  	
   

  	
   

  	
   

  	
  1,019,606.04

  	
   

  	
  51,263.38

  	
   

  	
  968,342.66

  	
   

  	
  503,714.39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
  01/01/12

  	
   

  	
  84,967.17

  	
   

  	
  1,936.84

  	
   

  	
  83,030.33

  	
   

  	
  420,684.06

  	
   

  
	
  57

  	
   

  	
  02/01/12

  	
   

  	
  84,967.17

  	
   

  	
  1,570.15

  	
   

  	
  83,397.02

  	
   

  	
  337,287.04

  	
   

  
	
  58

  	
   

  	
  03/01/12

  	
   

  	
  84,967.17

  	
   

  	
  1,201.86

  	
   

  	
  83,765.31

  	
   

  	
  253,521.73

  	
   

  
	
  59

  	
   

  	
  04/01/12

  	
   

  	
  84,967.17

  	
   

  	
  831.93

  	
   

  	
  84,135.24

  	
   

  	
  169,386.49

  	
   

  
	
  60

  	
   

  	
  05/01/12

  	
   

  	
  84,967.17

  	
   

  	
  547.85

  	
   

  	
  84,419.32

  	
   

  	
  84,967.17

  	
   

  
	
  61

  	
   

  	
  06/01/12

  	
   

  	
  84,967.17

  	
   

  	
  0.00

  	
   

  	
  84,967.17

  	
   

  	
  0.00

  	
   

  
	
  2012 Totals

  	
   

  	
   

  	
   

  	
  509,803.02

  	
   

  	
  6,088.63

  	
   

  	
  503,714.39

  	
   

  	
   

  	
   

  

 

 

STELLARIS-GE LOAN -05/07

 

Compound Period Monthly

 

Nominal Annual Rate 5.54003%

 

5

 

Amoritzation Schedule

 

	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3/7/2008

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4,793,319.80

  	
   

  
	
  4/1/2008

  	
   

  	
  18,165.95

  	
   

  	
  17,703.42

  	
   

  	
  462.53

  	
   

  	
  4,792,857.27

  	
   

  
	
  5/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  22,127.14

  	
   

  	
  46,837.50

  	
   

  	
  4,746,019.77

  	
   

  
	
  6/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  21,910.91

  	
   

  	
  47,053.73

  	
   

  	
  4,698,966.04

  	
   

  
	
  7/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  21,693.68

  	
   

  	
  47,270.96

  	
   

  	
  4,651,695.08

  	
   

  
	
  8/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  21,475.44

  	
   

  	
  47,489.20

  	
   

  	
  4,604,205.88

  	
   

  
	
  9/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  21,256.20

  	
   

  	
  47,708.44

  	
   

  	
  4,556,497.44

  	
   

  
	
  10/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  21,035.94

  	
   

  	
  47,928.70

  	
   

  	
  4,508,568.74

  	
   

  
	
  11/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  20,814.67

  	
   

  	
  48,149.97

  	
   

  	
  4,460,418.77

  	
   

  
	
  12/1/2008

  	
   

  	
  68,964.64

  	
   

  	
  20,592.38

  	
   

  	
  48,372.26

  	
   

  	
  4,412,046.51

  	
   

  
	
  2008 Totals

  	
   

  	
  569,883.07

  	
   

  	
  188,609.78

  	
   

  	
  381,273.29

  	
   

  	
  4,412,046.51

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  20,369.06

  	
   

  	
  48,595.58

  	
   

  	
  4,363,450.93

  	
   

  
	
  2/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  20,144.71

  	
   

  	
  48,819.93

  	
   

  	
  4,314,631.00

  	
   

  
	
  3/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  19,919.32

  	
   

  	
  49,045.32

  	
   

  	
  4,265,585.68

  	
   

  
	
  4/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  19,692.89

  	
   

  	
  49,271.75

  	
   

  	
  4,216,313.93

  	
   

  
	
  5/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  19,465.42

  	
   

  	
  49,499.22

  	
   

  	
  4,166,814.71

  	
   

  
	
  6/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  19,236.90

  	
   

  	
  49,727.74

  	
   

  	
  4,117,086.97

  	
   

  
	
  7/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  19,007.32

  	
   

  	
  49,957.32

  	
   

  	
  4,067,129.65

  	
   

  
	
  8/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  18,776.68

  	
   

  	
  50,187.96

  	
   

  	
  4,016,941.69

  	
   

  
	
  9/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  18,544.98

  	
   

  	
  50,419.66

  	
   

  	
  3,966,522.03

  	
   

  
	
  10/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  18,312.21

  	
   

  	
  50,652.43

  	
   

  	
  3,915,869.60

  	
   

  
	
  11/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  18,078.36

  	
   

  	
  50,886.28

  	
   

  	
  3,864,983.32

  	
   

  
	
  12/1/2009

  	
   

  	
  68,964.64

  	
   

  	
  17,843.44

  	
   

  	
  51,121.20

  	
   

  	
  3,813,862.12

  	
   

  
	
  2009 Totals

  	
   

  	
  827,575.68

  	
   

  	
  229,391.29

  	
   

  	
  598,184.39

  	
   

  	
  3,813,862.12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  17,607.43

  	
   

  	
  51,357.21

  	
   

  	
  3,762,504.91

  	
   

  
	
  2/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  17,370.33

  	
   

  	
  51,594.31

  	
   

  	
  3,710,910.60

  	
   

  
	
  3/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  17,132.13

  	
   

  	
  51,832.51

  	
   

  	
  3,659,078.09

  	
   

  
	
  4/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  16,892.84

  	
   

  	
  52,071.80

  	
   

  	
  3,607,006.29

  	
   

  
	
  5/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  16,652.44

  	
   

  	
  52,312.20

  	
   

  	
  3,554,694.09

  	
   

  
	
  6/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  16,410.93

  	
   

  	
  52,553.71

  	
   

  	
  3,502,140.38

  	
   

  
	
  7/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  16,168.30

  	
   

  	
  52,796.34

  	
   

  	
  3,449,344.04

  	
   

  
	
  8/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  15,924.56

  	
   

  	
  53,040.08

  	
   

  	
  3,396,303.96

  	
   

  
	
  9/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  15,679.69

  	
   

  	
  53,284.95

  	
   

  	
  3,343,019.01

  	
   

  
	
  10/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  15,433.69

  	
   

  	
  53,530.95

  	
   

  	
  3,289,488.06

  	
   

  
	
  11/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  15,186.55

  	
   

  	
  53,778.09

  	
   

  	
  3,235,709.97

  	
   

  
	
  12/1/2010

  	
   

  	
  68,964.64

  	
   

  	
  14,938.28

  	
   

  	
  54,026.36

  	
   

  	
  3,181,683.61

  	
   

  
	
  2010 Totals

  	
   

  	
  827,575.68

  	
   

  	
  195,397.17

  	
   

  	
  632,178.51

  	
   

  	
  3,181,683.61

  	
   

  

 

 

	
  1/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  14,688.85

  	
   

  	
  54,275.79

  	
   

  	
  3,127,407.82

  	
   

  
	
  2/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  14,438.28

  	
   

  	
  54,526.36

  	
   

  	
  3,072,881.46

  	
   

  
	
  3/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  14,186.55

  	
   

  	
  54,778.09

  	
   

  	
  3,018,103.37

  	
   

  
	
  4/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  13,933.65

  	
   

  	
  55,030.99

  	
   

  	
  2,963,072.38

  	
   

  
	
  5/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  13,679.59

  	
   

  	
  55,285.05

  	
   

  	
  2,907,787.33

  	
   

  
	
  6/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  13,424.36

  	
   

  	
  55,540.28

  	
   

  	
  2,852,247.05

  	
   

  
	
  7/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  13,167.95

  	
   

  	
  55,796.69

  	
   

  	
  2,796,450.36

  	
   

  
	
  8/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  12,910.35

  	
   

  	
  56,054.29

  	
   

  	
  2,740,396.07

  	
   

  
	
  9/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  12,651.56

  	
   

  	
  56,313.08

  	
   

  	
  2,684,082.99

  	
   

  
	
  10/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  12,391.58

  	
   

  	
  56,573.06

  	
   

  	
  2,627,509.93

  	
   

  
	
  11/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  12,130.40

  	
   

  	
  56,834.24

  	
   

  	
  2,570,675.69

  	
   

  
	
  12/1/2011

  	
   

  	
  68,964.64

  	
   

  	
  11,868.02

  	
   

  	
  57,096.62

  	
   

  	
  2,513,579.07

  	
   

  
	
  2011 Totals

  	
   

  	
  827,575.68

  	
   

  	
  159,471.14

  	
   

  	
  668,104.54

  	
   

  	
  2,513,579.07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  11,604.42

  	
   

  	
  57,360.22

  	
   

  	
  2,456,218.85

  	
   

  
	
  2/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  11,339.61

  	
   

  	
  57,625.03

  	
   

  	
  2,398,593.82

  	
   

  
	
  3/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  11,073.57

  	
   

  	
  57,891.07

  	
   

  	
  2,340,702.75

  	
   

  
	
  4/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  10,806.30

  	
   

  	
  58,158.34

  	
   

  	
  2,282,544.41

  	
   

  
	
  5/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  10,537.80

  	
   

  	
  58,426.84

  	
   

  	
  2,224,117.57

  	
   

  
	
  6/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  10,268.07

  	
   

  	
  58,696.57

  	
   

  	
  2,165,421.00

  	
   

  
	
  7/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  9,997.08

  	
   

  	
  58,967.56

  	
   

  	
  2,106,453.44

  	
   

  
	
  8/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  9,724.85

  	
   

  	
  59,239.79

  	
   

  	
  2,047,213.65

  	
   

  
	
  9/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  9,451.35

  	
   

  	
  59,513.29

  	
   

  	
  1,987,700.36

  	
   

  
	
  10/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  9,176.60

  	
   

  	
  59,788.04

  	
   

  	
  1,927,912.32

  	
   

  
	
  11/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  8,900.58

  	
   

  	
  60,064.06

  	
   

  	
  1,867,848.26

  	
   

  
	
  12/1/2012

  	
   

  	
  68,964.64

  	
   

  	
  8,623.28

  	
   

  	
  60,341.36

  	
   

  	
  1,807,506.90

  	
   

  
	
  2012 Totals

  	
   

  	
  413,787.84

  	
   

  	
  121,503.51

  	
   

  	
  706,072.17

  	
   

  	
  1,807,506.90

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/1/2013

  	
   

  	
  68,964.64

  	
   

  	
  8,344.70

  	
   

  	
  60,619.94

  	
   

  	
  1,746,886.96

  	
   

  
	
  2/1/2013

  	
   

  	
  68,964.64

  	
   

  	
  8,064.84

  	
   

  	
  60,899.80

  	
   

  	
  1,685,987.16

  	
   

  
	
  3/1/2013

  	
   

  	
  68,964.64

  	
   

  	
  7,783.68

  	
   

  	
  61,180.96

  	
   

  	
  1,624,806.20

  	
   

  
	
  4/1/2013

  	
   

  	
  1,632,307.43

  	
   

  	
  7,501.23

  	
   

  	
  1,624,806.20

  	
   

  	
  0.00

  	
   

  

 

 

STELLARIS-CITICAPITAL CAPITALIZED LSE - -01/08

 

Compound Period Monthly

 

Nominal Annual Rate 5.481%

 

CASH FLOW DATA

 

	
   

  	
   

  	
  Event

  	
   

  	
  Date

  	
   

  	
  Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Loan

  	
   

  	
  12/27/2007

  	
   

  	
  2,282,390.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Payment

  	
   

  	
  12/27/2007

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Payment

  	
   

  	
  2/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Payment

  	
   

  	
  3/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Payment

  	
   

  	
  4/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Payment

  	
   

  	
  5/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Payment

  	
   

  	
  6/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Payment

  	
   

  	
  7/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Payment

  	
   

  	
  8/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Payment

  	
   

  	
  9/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Payment

  	
   

  	
  10/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Payment

  	
   

  	
  11/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Payment

  	
   

  	
  12/1/2008

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Payment

  	
   

  	
  1/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Payment

  	
   

  	
  2/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Payment

  	
   

  	
  3/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Payment

  	
   

  	
  4/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  Payment

  	
   

  	
  5/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  Payment

  	
   

  	
  6/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  Payment

  	
   

  	
  7/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  Payment

  	
   

  	
  8/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  Payment

  	
   

  	
  9/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  Payment

  	
   

  	
  10/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  Payment

  	
   

  	
  11/1/2009

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  Payment

  	
   

  	
  12/1/2009

  	
   

  	
  80,585.44

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  Payment

  	
   

  	
  1/1/2010

  	
   

  	
  342,358.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amoritzation Schedule

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loan

  	
   

  	
  12/27/2007

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,282,390.00

  	
   

  
	
  1

  	
   

  	
  12/27/2007

  	
   

  	
  87,024.79

  	
   

  	
  0.00

  	
   

  	
  87,024.79

  	
   

  	
  2,195,365.21

  	
   

  
	
  2007 Totals

  	
   

  	
   

  	
   

  	
  87,024.79

  	
   

  	
  0.00

  	
   

  	
  87,024.79

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  2/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  11,682.83

  	
   

  	
  75,341.96

  	
   

  	
  2,120,023.25

  	
   

  
	
  3

  	
   

  	
  3/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  9,682.91

  	
   

  	
  77,341.88

  	
   

  	
  2,042,681.37

  	
   

  
	
  4

  	
   

  	
  4/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  9,329.66

  	
   

  	
  77,695.13

  	
   

  	
  1,964,986.24

  	
   

  
	
  5

  	
   

  	
  5/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  8,974.80

  	
   

  	
  78,049.99

  	
   

  	
  1,886,936.25

  	
   

  
	
  6

  	
   

  	
  6/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  8,618.32

  	
   

  	
  78,406.47

  	
   

  	
  1,808,529.78

  	
   

  
	
  7

  	
   

  	
  7/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  8,260.21

  	
   

  	
  78,764.58

  	
   

  	
  1,729,765.20

  	
   

  
	
  8

  	
   

  	
  8/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  7,900.46

  	
   

  	
  79,124.33

  	
   

  	
  1,650,640.87

  	
   

  
	
  9

  	
   

  	
  9/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  7,539.07

  	
   

  	
  79,485.72

  	
   

  	
  1,571,155.15

  	
   

  
	
  10

  	
   

  	
  10/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  7,176.03

  	
   

  	
  79,848.76

  	
   

  	
  1,491,306.39

  	
   

  
	
  11

  	
   

  	
  11/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  6,811.33

  	
   

  	
  80,213.46

  	
   

  	
  1,411,092.93

  	
   

  
	
  12

  	
   

  	
  12/1/2008

  	
   

  	
  87,024.79

  	
   

  	
  6,444.97

  	
   

  	
  80,579.82

  	
   

  	
  1,330,513.11

  	
   

  
	
  2008 Totals

  	
   

  	
   

  	
   

  	
  957,272.69

  	
   

  	
  92,420.59

  	
   

  	
  864,852.10

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  1/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  6,076.93

  	
   

  	
  80,947.86

  	
   

  	
  1,249,565.25

  	
   

  
	
  14

  	
   

  	
  2/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  5,707.21

  	
   

  	
  81,317.58

  	
   

  	
  1,168,247.67

  	
   

  
	
  15

  	
   

  	
  3/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  5,335.81

  	
   

  	
  81,688.98

  	
   

  	
  1,086,558.69

  	
   

  
	
  16

  	
   

  	
  4/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  4,962.70

  	
   

  	
  82,062.09

  	
   

  	
  1,004,496.60

  	
   

  
	
  17

  	
   

  	
  5/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  4,587.90

  	
   

  	
  82,436.89

  	
   

  	
  922,059.71

  	
   

  
	
  18

  	
   

  	
  6/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  4,211.38

  	
   

  	
  82,813.41

  	
   

  	
  839,246.30

  	
   

  
	
  19

  	
   

  	
  7/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  3,833.14

  	
   

  	
  83,191.65

  	
   

  	
  756,054.65

  	
   

  
	
  20

  	
   

  	
  8/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  3,453.17

  	
   

  	
  83,571.62

  	
   

  	
  672,483.03

  	
   

  
	
  21

  	
   

  	
  9/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  3,071.47

  	
   

  	
  83,953.32

  	
   

  	
  588,529.71

  	
   

  
	
  22

  	
   

  	
  10/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  2,688.03

  	
   

  	
  84,336.76

  	
   

  	
  504,192.95

  	
   

  
	
  23

  	
   

  	
  11/1/2009

  	
   

  	
  87,024.79

  	
   

  	
  2,302.83

  	
   

  	
  84,721.96

  	
   

  	
  419,470.99

  	
   

  
	
  24

  	
   

  	
  12/1/2009

  	
   

  	
  80,585.44

  	
   

  	
  1,915.88

  	
   

  	
  78,669.56

  	
   

  	
  340,801.43

  	
   

  
	
  2009 Totals

  	
   

  	
   

  	
   

  	
  1,037,858.13

  	
   

  	
  48,146.45

  	
   

  	
  989,711.68

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  1/1/2010

  	
   

  	
  342,358.00

  	
   

  	
  1,556.57

  	
   

  	
  340,801.43

  	
   

  	
  0.00

  	
   

  
	
  2010 Totals

  	
   

  	
   

  	
   

  	
  342,358.00

  	
   

  	
  1,556.57

  	
   

  	
  340,801.43

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Totals

  	
   

  	
   

  	
   

  	
  2,424,513.61

  	
   

  	
  142,123.61

  	
   

  	
  2,282,390.00

  	
   

  	
   

  	
   

  
													

 

 

	
  STELLARIS, LLC 1893800 SCH 001

  
	
   

  	
   

  
	
  Compound
  Period:

  	
  Monthly

  
	
   

  	
   

  
	
  Nominal
  Annual Rate:

  	
  5.483%

  
	
   

  	
   

  
	
  CASH
  FLOW DATA

  	
   

  

 

	
   

  	
   

  	
  Event

  	
   

  	
  Date

  	
   

  	
  Amount

  	
   

  	
  Number

  	
   

  	
  Period

  	
   

  	
  End Date

  	
   

  
	
  1

  	
   

  	
  Loan

  	
   

  	
  10/3/2008

  	
   

  	
  3,020,458.81

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Payment

  	
   

  	
  11/3/2008

  	
   

  	
  57,670.85

  	
   

  	
  60

  	
   

  	
  Monthly

  	
   

  	
  10/3/2013

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMORTIZATION SCHEDULE - Normal Amortization

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  	
   

  	
   

  
	
  Loan

  	
   

  	
  10/3/2008

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,020,458.81

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  11/3/2008

  	
   

  	
  57,670.85

  	
   

  	
  13,801.47

  	
   

  	
  43,869.38

  	
   

  	
  2,976,589.43

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  12/3/2008

  	
   

  	
  57,670.85

  	
   

  	
  13,601.02

  	
   

  	
  44,069.83

  	
   

  	
  2,932,519.60

  	
   

  	
   

  	
   

  
	
  2008 Totals

  	
   

  	
   

  	
   

  	
  115,341.70

  	
   

  	
  27,402.49

  	
   

  	
  87,939.21

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  1/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  13,399.65

  	
   

  	
  44,271.20

  	
   

  	
  2,888,248.40

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  2/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  13,197.36

  	
   

  	
  44,473.49

  	
   

  	
  2,843,774.91

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  3/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  12,994.15

  	
   

  	
  44,676.70

  	
   

  	
  2,799,098.21

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  4/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  12,790.00

  	
   

  	
  44,880.85

  	
   

  	
  2,754,217.36

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  5/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  12,584.93

  	
   

  	
  45,085.92

  	
   

  	
  2,709,131.44

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  6/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  12,378.92

  	
   

  	
  45,291.93

  	
   

  	
  2,663,839.51

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  7/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  12,171.96

  	
   

  	
  45,498.89

  	
   

  	
  2,618,340.62

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  8/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  11,964.06

  	
   

  	
  45,706.79

  	
   

  	
  2,572,633.83

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  9/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  11,755.21

  	
   

  	
  45,915.64

  	
   

  	
  2,526,718.19

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  10/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  11,545.41

  	
   

  	
  46,125.44

  	
   

  	
  2,480,592.75

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  11/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  11,334.65

  	
   

  	
  46,336.20

  	
   

  	
  2,434,256.55

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  12/3/2009

  	
   

  	
  57,670.85

  	
   

  	
  11,122.92

  	
   

  	
  46,547.93

  	
   

  	
  2,387,708.62

  	
   

  	
   

  	
   

  
	
  2009 Totals

  	
   

  	
   

  	
   

  	
  692,050.20

  	
   

  	
  147,239.22

  	
   

  	
  544,810.98

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  1/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  10,910.23

  	
   

  	
  46,760.62

  	
   

  	
  2,340,948.00

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  2/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  10,696.57

  	
   

  	
  46,974.28

  	
   

  	
  2,293,973.72

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  3/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  10,481.92

  	
   

  	
  47,188.93

  	
   

  	
  2,246,784.79

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  4/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  10,266.30

  	
   

  	
  47,404.55

  	
   

  	
  2,199,380.24

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  5/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  10,049.70

  	
   

  	
  47,621.15

  	
   

  	
  2,151,759.09

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  6/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  9,832.10

  	
   

  	
  47,838.75

  	
   

  	
  2,103,920.34

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  7/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  9,613.51

  	
   

  	
  48,057.34

  	
   

  	
  2,055,863.00

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  8/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  9,393.92

  	
   

  	
  48,276.93

  	
   

  	
  2,007,586.07

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  9/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  9,173.32

  	
   

  	
  48,497.53

  	
   

  	
  1,959,088.54

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  10/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  8,951.72

  	
   

  	
  48,719.13

  	
   

  	
  1,910,369.41

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  11/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  8,729.11

  	
   

  	
  48,941.74

  	
   

  	
  1,861,427.67

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  12/3/2010

  	
   

  	
  57,670.85

  	
   

  	
  8,505.48

  	
   

  	
  49,165.37

  	
   

  	
  1,812,262.30

  	
   

  	
   

  	
   

  
	
  2010 Totals

  	
   

  	
   

  	
   

  	
  692,050.20

  	
   

  	
  116,603.88

  	
   

  	
  575,446.32

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  1/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  8,280.83

  	
   

  	
  49,390.02

  	
   

  	
  1,762,872.28

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  2/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  8,055.15

  	
   

  	
  49,615.70

  	
   

  	
  1,713,256.58

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  3/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  7,828.44

  	
   

  	
  49,842.41

  	
   

  	
  1,663,414.17

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  4/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  7,600.69

  	
   

  	
  50,070.16

  	
   

  	
  1,613,344.01

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  5/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  7,371.90

  	
   

  	
  50,298.95

  	
   

  	
  1,563,045.06

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  6/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  7,142.07

  	
   

  	
  50,528.78

  	
   

  	
  1,512,516.28

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  7/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  6,911.19

  	
   

  	
  50,759.66

  	
   

  	
  1,461,756.62

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  8/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  6,679.25

  	
   

  	
  50,991.60

  	
   

  	
  1,410,765.02

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  9/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  6,446.25

  	
   

  	
  51,224.60

  	
   

  	
  1,359,540.42

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  10/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  6,212.19

  	
   

  	
  51,458.66

  	
   

  	
  1,308,081.76

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  11/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  5,977.06

  	
   

  	
  51,693.79

  	
   

  	
  1,256,387.97

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  12/3/2011

  	
   

  	
  57,670.85

  	
   

  	
  5,740.85

  	
   

  	
  51,930.00

  	
   

  	
  1,204,457.97

  	
   

  	
   

  	
   

  
	
  2011 Totals

  	
   

  	
   

  	
   

  	
  692,050.20

  	
   

  	
  84,245.87

  	
   

  	
  607,804.33

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  1/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  5,503.57

  	
   

  	
  52,167.28

  	
   

  	
  1,152,290.69

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  2/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  5,265.20

  	
   

  	
  52,405.65

  	
   

  	
  1,099,885.04

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  3/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  5,025.74

  	
   

  	
  52,645.11

  	
   

  	
  1,047,239.93

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  4/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  4,785.19

  	
   

  	
  52,885.66

  	
   

  	
  994,354.27

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  5/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  4,543.53

  	
   

  	
  53,127.32

  	
   

  	
  941,226.95

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  6/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  4,300.78

  	
   

  	
  53,370.07

  	
   

  	
  887,856.88

  	
   

  	
   

  	
   

  
	
  45

  	
   

  	
  7/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  4,056.91

  	
   

  	
  53,613.94

  	
   

  	
  834,242.94

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  8/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  3,811.93

  	
   

  	
  53,858.92

  	
   

  	
  780,384.02

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  9/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  3,565.83

  	
   

  	
  54,105.02

  	
   

  	
  726,279.00

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  10/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  3,318.61

  	
   

  	
  54,352.24

  	
   

  	
  671,926.76

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  11/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  3,070.26

  	
   

  	
  54,600.59

  	
   

  	
  617,326.17

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  12/3/2012

  	
   

  	
  57,670.85

  	
   

  	
  2,820.77

  	
   

  	
  54,850.08

  	
   

  	
  562,476.09

  	
   

  	
   

  	
   

  
	
  2012 Totals

  	
   

  	
   

  	
   

  	
  692,050.20

  	
   

  	
  50,068.32

  	
   

  	
  641,981.88

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  1/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  2,570.14

  	
   

  	
  55,100.71

  	
   

  	
  507,375.38

  	
   

  	
   

  	
   

  
	
  52

  	
   

  	
  2/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  2,318.37

  	
   

  	
  55,352.48

  	
   

  	
  452,022.90

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  3/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  2,065.44

  	
   

  	
  55,605.41

  	
   

  	
  396,417.49

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  4/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  1,811.36

  	
   

  	
  55,859.49

  	
   

  	
  340,558.00

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  5/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  1,556.12

  	
   

  	
  56,114.73

  	
   

  	
  284,443.27

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
  6/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  1,299.72

  	
   

  	
  56,371.13

  	
   

  	
  228,072.14

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  7/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  1,042.14

  	
   

  	
  56,628.71

  	
   

  	
  171,443.43

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  8/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  783.38

  	
   

  	
  56,887.47

  	
   

  	
  114,555.96

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  9/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  523.44

  	
   

  	
  57,147.41

  	
   

  	
  57,408.55

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  10/3/2013

  	
   

  	
  57,670.85

  	
   

  	
  262.30

  	
   

  	
  57,408.55

  	
   

  	
  0.00

  	
   

  	
   

  	
   

  
	
  2013 Totals

  	
   

  	
   

  	
   

  	
  576,708.50

  	
   

  	
  14,232.41

  	
   

  	
  562,476.09

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Totals

  	
   

  	
   

  	
   

  	
  3,460,251.00

  	
   

  	
  439,792.19

  	
   

  	
  3,020,458.81

  	
   

  	
   

  	
   

  	
   

  	
   

  
															

 

This
amortization instrument is intended for informational purposes only and may not
be used in connection with payoff requests or used to override any end of lease
contractual provisions.

 

 

STELLARIS-US BANCORP -10/08

 

Compound Period Monthly

 

Nominal Annual Rate 5.8800%

 

Amoritzation Schedule

 

	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Principal

  	
   

  	
  Interest

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10/26/2008

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  3,800,000.00

  	
   

  
	
  11/10/2008

  	
   

  	
  43,026.83

  	
   

  	
  28,751.50

  	
   

  	
  14,275.33

  	
   

  	
  3,771,248.50

  	
   

  
	
  12/10/2008

  	
   

  	
  43,026.83

  	
   

  	
  24,575.89

  	
   

  	
  18,450.94

  	
   

  	
  3,746,672.61

  	
   

  
	
  2008 Totals

  	
   

  	
  86,053.66

  	
   

  	
  53,327.39

  	
   

  	
  32,726.27

  	
   

  	
  3,746,672.61

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  24,676.16

  	
   

  	
  18,350.67

  	
   

  	
  3,721,996.45

  	
   

  
	
  2/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  24,776.95

  	
   

  	
  18,249.88

  	
   

  	
  3,697,219.50

  	
   

  
	
  3/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  24,918.55

  	
   

  	
  18,108.28

  	
   

  	
  3,672,300.95

  	
   

  
	
  4/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,048.84

  	
   

  	
  17,977.99

  	
   

  	
  3,647,252.11

  	
   

  
	
  5/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,159.38

  	
   

  	
  17,867.45

  	
   

  	
  3,622,092.73

  	
   

  
	
  6/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,282.69

  	
   

  	
  17,744.14

  	
   

  	
  3,596,810.04

  	
   

  
	
  7/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,402.46

  	
   

  	
  17,624.37

  	
   

  	
  3,571,407.58

  	
   

  
	
  8/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,526.93

  	
   

  	
  17,499.90

  	
   

  	
  3,545,880.65

  	
   

  
	
  9/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,652.01

  	
   

  	
  17,374.82

  	
   

  	
  3,520,228.63

  	
   

  
	
  10/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,777.71

  	
   

  	
  17,249.12

  	
   

  	
  3,494,450.92

  	
   

  
	
  11/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,904.02

  	
   

  	
  17,122.81

  	
   

  	
  3,468,546.90

  	
   

  
	
  12/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  26,030.95

  	
   

  	
  16,995.88

  	
   

  	
  3,442,515.95

  	
   

  
	
  2009 Totals

  	
   

  	
  516,321.96

  	
   

  	
  304,156.66

  	
   

  	
  212,165.30

  	
   

  	
  3,442,515.95

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,030.95

  	
   

  	
  16,995.88

  	
   

  	
  3,416,485.00

  	
   

  
	
  2/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,286.05

  	
   

  	
  16,740.78

  	
   

  	
  3,390,198.95

  	
   

  
	
  3/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,414.86

  	
   

  	
  16,611.97

  	
   

  	
  3,363,784.09

  	
   

  
	
  4/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,544.29

  	
   

  	
  16,482.54

  	
   

  	
  3,337,239.80

  	
   

  
	
  5/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,674.35

  	
   

  	
  16,352.48

  	
   

  	
  3,310,565.45

  	
   

  
	
  6/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,805.06

  	
   

  	
  16,221.77

  	
   

  	
  3,283,760.39

  	
   

  
	
  7/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,936.40

  	
   

  	
  16,090.43

  	
   

  	
  3,256,823.99

  	
   

  
	
  8/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,068.39

  	
   

  	
  15,958.44

  	
   

  	
  3,229,755.59

  	
   

  
	
  9/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,201.03

  	
   

  	
  15,825.80

  	
   

  	
  3,202,554.57

  	
   

  
	
  10/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,334.31

  	
   

  	
  15,692.52

  	
   

  	
  3,175,220.25

  	
   

  
	
  11/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,468.25

  	
   

  	
  15,558.58

  	
   

  	
  3,147,752.00

  	
   

  
	
  12/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,602.85

  	
   

  	
  15,423.98

  	
   

  	
  3,120,149.16

  	
   

  
	
  2010 Totals

  	
   

  	
  516,321.96

  	
   

  	
  322,366.79

  	
   

  	
  193,955.17

  	
   

  	
  3,120,149.16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  27,602.85

  	
   

  	
  15,423.98

  	
   

  	
  3,092,546.31

  	
   

  
	
  2/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  27,873.35

  	
   

  	
  15,153.48

  	
   

  	
  3,064,672.96

  	
   

  
	
  3/1/02011

  	
   

  	
  43,026.83

  	
   

  	
  28,009.93

  	
   

  	
  15,016.90

  	
   

  	
  3,036,663.03

  	
   

  
	
  4/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,147.18

  	
   

  	
  14,879.65

  	
   

  	
  3,008,515.85

  	
   

  
	
  5/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,285.10

  	
   

  	
  14,741.73

  	
   

  	
  2,980,230.74

  	
   

  
	
  6/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,423.70

  	
   

  	
  14,603.13

  	
   

  	
  2,951,807.04

  	
   

  
	
  7/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,562.98

  	
   

  	
  14,463.85

  	
   

  	
  2,923,244.07

  	
   

  
	
  8/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,702.93

  	
   

  	
  14,323.90

  	
   

  	
  2,894,541.13

  	
   

  
	
  9/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,843.58

  	
   

  	
  14,183.25

  	
   

  	
  2,865,697.56

  	
   

  
	
  10/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,984.91

  	
   

  	
  14,041.92

  	
   

  	
  2,836,712.64

  	
   

  
	
  11/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  29,126.94

  	
   

  	
  13,899.89

  	
   

  	
  2,807,585.71

  	
   

  
	
  12/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  29,269.66

  	
   

  	
  13,757.17

  	
   

  	
  2,778,316.05

  	
   

  
	
  2011 Totals

  	
   

  	
  516,321.96

  	
   

  	
  341,833.11

  	
   

  	
  174,488.85

  	
   

  	
  2,778,316.05

  	
   

  

 

 

	
  1/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,269.66

  	
   

  	
  13,757.17

  	
   

  	
  2,749,046.39

  	
   

  
	
  2/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,556.50

  	
   

  	
  13,470.33

  	
   

  	
  2,719,489.88

  	
   

  
	
  3/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,701.33

  	
   

  	
  13,325.50

  	
   

  	
  2,689,788.55

  	
   

  
	
  4/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,846.87

  	
   

  	
  13,179.96

  	
   

  	
  2,659,941.69

  	
   

  
	
  5/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,993.12

  	
   

  	
  13,033.71

  	
   

  	
  2,629,948.57

  	
   

  
	
  6/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,140.08

  	
   

  	
  12,886.75

  	
   

  	
  2,599,808.49

  	
   

  
	
  7/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,287.77

  	
   

  	
  12,739.06

  	
   

  	
  2,569,520.72

  	
   

  
	
  8/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,436.18

  	
   

  	
  12,590.65

  	
   

  	
  2,539,084.54

  	
   

  
	
  9/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,585.32

  	
   

  	
  12,441.51

  	
   

  	
  2,508,499.23

  	
   

  
	
  10/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,735.18

  	
   

  	
  12,291.65

  	
   

  	
  2,477,764.04

  	
   

  
	
  11/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,885.79

  	
   

  	
  12,141.04

  	
   

  	
  2,446,878.26

  	
   

  
	
  12/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  31,037.13

  	
   

  	
  11,989.70

  	
   

  	
  2,415,841.13

  	
   

  
	
  2012 Totals

  	
   

  	
  516,321.96

  	
   

  	
  362,474.92

  	
   

  	
  153,847.04

  	
   

  	
  2,415,841.13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,037.13

  	
   

  	
  11,989.70

  	
   

  	
  2,384,804.00

  	
   

  
	
  2/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,341.29

  	
   

  	
  11,685.54

  	
   

  	
  2,353,462.71

  	
   

  
	
  3/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,494.86

  	
   

  	
  11,531.97

  	
   

  	
  2,321,967.85

  	
   

  
	
  4/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,649.19

  	
   

  	
  11,377.64

  	
   

  	
  2,290,318.66

  	
   

  
	
  5/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,804.27

  	
   

  	
  11,222.56

  	
   

  	
  2,258,514.39

  	
   

  
	
  6/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,960.11

  	
   

  	
  11,066.72

  	
   

  	
  2,226,554.29

  	
   

  
	
  7/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  32,116.71

  	
   

  	
  10,910.12

  	
   

  	
  2,194,437.57

  	
   

  
	
  8/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  32,274.09

  	
   

  	
  10,752.74

  	
   

  	
  2,162,163.49

  	
   

  
	
  9/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  32,432.23

  	
   

  	
  10,594.60

  	
   

  	
  2,129,731.26

  	
   

  
	
  10/10/2013

  	
   

  	
  2,140,166.94

  	
   

  	
  2,129,731.26

  	
   

  	
  10,435.68

  	
   

  	
  —

  	
   

  
	
  2013 Totals

  	
   

  	
  3,043,730.37

  	
   

  	
  2,778,316.05

  	
   

  	
  111,567.28

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Total

  	
   

  	
  5,195,071.87

  	
   

  	
  4,162,474.92

  	
   

  	
  878,749.91

  	
   

  	
  —

  	
   

  

 

 

STELLARIS-US BANCORP -10/08

 

Compound Period Monthly

 

Nominal Annual Rate 5.8800%

 

Amoritzation Schedule

 

	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Principal

  	
   

  	
  Interest

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10/26/2008

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  3,800,000.00

  	
   

  
	
  11/10/2008

  	
   

  	
  43,026.83

  	
   

  	
  24,406.83

  	
   

  	
  18,620.00

  	
   

  	
  3,775,593.17

  	
   

  
	
  12/10/2008

  	
   

  	
  43,026.83

  	
   

  	
  24,526.42

  	
   

  	
  18,500.41

  	
   

  	
  3,751,066.75

  	
   

  
	
  2008 Totals

  	
   

  	
  86,053.66

  	
   

  	
  48,933.25

  	
   

  	
  37,120.41

  	
   

  	
  3,751,066.75

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  24,646.60

  	
   

  	
  18,380.23

  	
   

  	
  3,726,420.15

  	
   

  
	
  2/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  24,767.37

  	
   

  	
  18,259.46

  	
   

  	
  3,701,652.78

  	
   

  
	
  3/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  24,888.73

  	
   

  	
  18,138.10

  	
   

  	
  3,676,764.05

  	
   

  
	
  4/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,010.68

  	
   

  	
  18,016.15

  	
   

  	
  3,651,753.37

  	
   

  
	
  5/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,133.24

  	
   

  	
  17,893.59

  	
   

  	
  3,626,620.13

  	
   

  
	
  6/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,256.39

  	
   

  	
  17,770.44

  	
   

  	
  3,601,363.74

  	
   

  
	
  7/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,380.14

  	
   

  	
  17,646.69

  	
   

  	
  3,575,983.60

  	
   

  
	
  8/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,504.51

  	
   

  	
  17,522.32

  	
   

  	
  3,550,479.09

  	
   

  
	
  9/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,629.48

  	
   

  	
  17,397.35

  	
   

  	
  3,524,849.61

  	
   

  
	
  10/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,755.06

  	
   

  	
  17,271.77

  	
   

  	
  3,499,094.55

  	
   

  
	
  11/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  25,881.26

  	
   

  	
  17,145.57

  	
   

  	
  3,473,213.29

  	
   

  
	
  12/10/2009

  	
   

  	
  43,026.83

  	
   

  	
  26,008.08

  	
   

  	
  17,018.75

  	
   

  	
  3,447,205.21

  	
   

  
	
  2009 Totals

  	
   

  	
  516,321.96

  	
   

  	
  303,861.54

  	
   

  	
  212,460.42

  	
   

  	
  3,447,205.21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,135.52

  	
   

  	
  16,891.31

  	
   

  	
  3,421,069.69

  	
   

  
	
  2/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,263.59

  	
   

  	
  16,763.24

  	
   

  	
  3,394,806.10

  	
   

  
	
  3/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,392.28

  	
   

  	
  16,634.55

  	
   

  	
  3,368,413.82

  	
   

  
	
  4/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,521.60

  	
   

  	
  16,505.23

  	
   

  	
  3,341,892.22

  	
   

  
	
  5/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,651.56

  	
   

  	
  16,375.27

  	
   

  	
  3,315,240.66

  	
   

  
	
  6/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,782.15

  	
   

  	
  16,244.68

  	
   

  	
  3,288,458.51

  	
   

  
	
  7/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  26,913.38

  	
   

  	
  16,113.45

  	
   

  	
  3,261,545.13

  	
   

  
	
  8/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,045.26

  	
   

  	
  15,981.57

  	
   

  	
  3,234,499.87

  	
   

  
	
  9/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,177.78

  	
   

  	
  15,849.05

  	
   

  	
  3,207,322.09

  	
   

  
	
  10/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,310.95

  	
   

  	
  15,715.88

  	
   

  	
  3,180,011.14

  	
   

  
	
  11/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,444.78

  	
   

  	
  15,582.05

  	
   

  	
  3,152,566.36

  	
   

  
	
  12/10/2010

  	
   

  	
  43,026.83

  	
   

  	
  27,579.25

  	
   

  	
  15,447.58

  	
   

  	
  3,124,987.11

  	
   

  
	
  2010 Totals

  	
   

  	
  516,321.96

  	
   

  	
  322,218.10

  	
   

  	
  194,103.86

  	
   

  	
  3,124,987.11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  27,714.39

  	
   

  	
  15,312.44

  	
   

  	
  3,097,272.72

  	
   

  
	
  2/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  27,850.19

  	
   

  	
  15,176.64

  	
   

  	
  3,069,422.52

  	
   

  
	
  3/1/02011

  	
   

  	
  43,026.83

  	
   

  	
  27,986.66

  	
   

  	
  15,040.17

  	
   

  	
  3,041,435.86

  	
   

  
	
  4/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,123.79

  	
   

  	
  14,903.04

  	
   

  	
  3,013,312.07

  	
   

  
	
  5/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,261.60

  	
   

  	
  14,765.23

  	
   

  	
  2,985,050.47

  	
   

  
	
  6/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,400.08

  	
   

  	
  14,626.75

  	
   

  	
  2,956,650.38

  	
   

  
	
  7/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,539.24

  	
   

  	
  14,487.59

  	
   

  	
  2,928,111.14

  	
   

  
	
  8/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,679.09

  	
   

  	
  14,347.74

  	
   

  	
  2,899,432.06

  	
   

  
	
  9/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,819.61

  	
   

  	
  14,207.22

  	
   

  	
  2,870,612.44

  	
   

  
	
  10/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  28,960.83

  	
   

  	
  14,066.00

  	
   

  	
  2,841,651.61

  	
   

  
	
  11/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  29,102.74

  	
   

  	
  13,924.09

  	
   

  	
  2,812,548.88

  	
   

  
	
  12/10/2011

  	
   

  	
  43,026.83

  	
   

  	
  29,245.34

  	
   

  	
  13,781.49

  	
   

  	
  2,783,303.54

  	
   

  
	
  2011 Totals

  	
   

  	
  516,321.96

  	
   

  	
  341,683.57

  	
   

  	
  174,638.39

  	
   

  	
  2,783,303.54

  	
   

  

 

 

	
  1/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,388.64

  	
   

  	
  13,638.19

  	
   

  	
  2,753,914.90

  	
   

  
	
  2/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,532.65

  	
   

  	
  13,494.18

  	
   

  	
  2,724,382.25

  	
   

  
	
  3/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,677.36

  	
   

  	
  13,349.47

  	
   

  	
  2,694,704.89

  	
   

  
	
  4/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,822.78

  	
   

  	
  13,204.05

  	
   

  	
  2,664,882.12

  	
   

  
	
  5/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  29,968.91

  	
   

  	
  13,057.92

  	
   

  	
  2,634,913.21

  	
   

  
	
  6/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,115.76

  	
   

  	
  12,911.07

  	
   

  	
  2,604,797.45

  	
   

  
	
  7/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,263.32

  	
   

  	
  12,763.51

  	
   

  	
  2,574,534.13

  	
   

  
	
  8/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,411.61

  	
   

  	
  12,615.22

  	
   

  	
  2,544,122.52

  	
   

  
	
  9/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,560.63

  	
   

  	
  12,466.20

  	
   

  	
  2,513,561.89

  	
   

  
	
  10/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,710.38

  	
   

  	
  12,316.45

  	
   

  	
  2,482,851.51

  	
   

  
	
  11/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  30,860.86

  	
   

  	
  12,165.97

  	
   

  	
  2,451,990.65

  	
   

  
	
  12/10/2012

  	
   

  	
  43,026.83

  	
   

  	
  31,012.08

  	
   

  	
  12,014.75

  	
   

  	
  2,420,978.58

  	
   

  
	
  2012 Totals

  	
   

  	
  516,321.96

  	
   

  	
  362,324.96

  	
   

  	
  153,997.00

  	
   

  	
  2,420,978.58

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,164.03

  	
   

  	
  11,862.80

  	
   

  	
  2,389,814.55

  	
   

  
	
  2/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,316.74

  	
   

  	
  11,710.09

  	
   

  	
  2,358,497.81

  	
   

  
	
  3/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,470.19

  	
   

  	
  11,556.64

  	
   

  	
  2,327,027.62

  	
   

  
	
  4/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,624.39

  	
   

  	
  11,402.44

  	
   

  	
  2,295,403.22

  	
   

  
	
  5/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,779.35

  	
   

  	
  11,247.48

  	
   

  	
  2,263,623.87

  	
   

  
	
  6/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  31,935.07

  	
   

  	
  11,091.76

  	
   

  	
  2,231,688.80

  	
   

  
	
  7/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  32,091.55

  	
   

  	
  10,935.28

  	
   

  	
  2,199,597.24

  	
   

  
	
  8/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  32,248.80

  	
   

  	
  10,778.03

  	
   

  	
  2,167,348.44

  	
   

  
	
  9/10/2013

  	
   

  	
  43,026.83

  	
   

  	
  32,406.82

  	
   

  	
  10,620.01

  	
   

  	
  2,134,941.62

  	
   

  
	
  10/10/2013

  	
   

  	
  2,145,402.84

  	
   

  	
  2,134,941.62

  	
   

  	
  10,461.22

  	
   

  	
  —

  	
   

  
	
  2013 Totals

  	
   

  	
  2,532,644.31

  	
   

  	
  2,420,978.58

  	
   

  	
  111,665.73

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Total

  	
   

  	
  4,683,985.81

  	
   

  	
  3,800,000.00

  	
   

  	
  883,985.89

  	
   

  	
  —

  	
   

  

 

 

	
  Stellaris LLC 1893801 Sch. 002

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Compound
  Period:

  	
  Monthly

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nominal
  Annual Rate:

  	
  4.884%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CASH
  FLOW DATA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Event

  	
   

  	
  Date

  	
   

  	
  Amount

  	
   

  	
  Number

  	
   

  	
  Period

  	
   

  	
  End Date

  	
   

  
	
  1

  	
   

  	
  Loan

  	
   

  	
  3/5/2009

  	
   

  	
  3,023,087.50

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Payment

  	
   

  	
  4/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  60

  	
   

  	
  Monthly

  	
   

  	
  3/5/2014

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMORTIZATION
  SCHEDULE - Normal Amortization

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  	
   

  	
   

  
	
  Loan

  	
   

  	
  3/5/2009

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,023,087.50

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  4/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  12,303.84

  	
   

  	
  44,584.96

  	
   

  	
  2,978,502.54

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  5/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  12,122.38

  	
   

  	
  44,766.42

  	
   

  	
  2,933,736.12

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  6/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  11,940.18

  	
   

  	
  44,948.62

  	
   

  	
  2,888,787.50

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  7/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  11,757.25

  	
   

  	
  45,131.55

  	
   

  	
  2,843,655.95

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  8/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  11,573.56

  	
   

  	
  45,315.24

  	
   

  	
  2,798,340.71

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  9/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  11,389.13

  	
   

  	
  45,499.67

  	
   

  	
  2,752,841.04

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  10/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  11,203.95

  	
   

  	
  45,684.85

  	
   

  	
  2,707,156.19

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  11/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  11,018.01

  	
   

  	
  45,870.79

  	
   

  	
  2,661,285.40

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  12/5/2009

  	
   

  	
  56,888.80

  	
   

  	
  10,831.32

  	
   

  	
  46,057.48

  	
   

  	
  2,615,227.92

  	
   

  	
   

  	
   

  
	
  2009 Totals

  	
   

  	
   

  	
   

  	
  511,999.20

  	
   

  	
  104,139.62

  	
   

  	
  407,859.58

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  1/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  10,643.87

  	
   

  	
  46,244.93

  	
   

  	
  2,568,982.99

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  2/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  10,455.65

  	
   

  	
  46,433.15

  	
   

  	
  2,522,549.84

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  3/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  10,266.67

  	
   

  	
  46,622.13

  	
   

  	
  2,475,927.71

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  4/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  10,076.92

  	
   

  	
  46,811.88

  	
   

  	
  2,429,115.83

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  5/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  9,886.40

  	
   

  	
  47,002.40

  	
   

  	
  2,382,113.43

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  6/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  9,695.10

  	
   

  	
  47,193.70

  	
   

  	
  2,334,919.73

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  7/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  9,503.03

  	
   

  	
  47,385.77

  	
   

  	
  2,287,533.96

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  8/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  9,310.17

  	
   

  	
  47,578.63

  	
   

  	
  2,239,955.33

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  9/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  9,116.53

  	
   

  	
  47,772.27

  	
   

  	
  2,192,183.06

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  10/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  8,922.09

  	
   

  	
  47,966.71

  	
   

  	
  2,144,216.35

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  11/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  8,726.87

  	
   

  	
  48,161.93

  	
   

  	
  2,096,054.42

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  12/5/2010

  	
   

  	
  56,888.80

  	
   

  	
  8,530.85

  	
   

  	
  48,357.95

  	
   

  	
  2,047,696.47

  	
   

  	
   

  	
   

  
	
  2010 Totals

  	
   

  	
   

  	
   

  	
  682,665.60

  	
   

  	
  115,134.15

  	
   

  	
  567,531.45

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  1/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  8,334.04

  	
   

  	
  48,554.76

  	
   

  	
  1,999,141.71

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  2/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  8,136.42

  	
   

  	
  48,752.38

  	
   

  	
  1,950,389.33

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  3/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  7,938.00

  	
   

  	
  48,950.80

  	
   

  	
  1,901,438.53

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  4/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  7,738.78

  	
   

  	
  49,150.02

  	
   

  	
  1,852,288.51

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  5/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  7,538.74

  	
   

  	
  49,350.06

  	
   

  	
  1,802,938.45

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  6/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  7,337.88

  	
   

  	
  49,550.92

  	
   

  	
  1,753,387.53

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  7/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  7,136.21

  	
   

  	
  49,752.59

  	
   

  	
  1,703,634.94

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  8/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  6,933.72

  	
   

  	
  49,955.08

  	
   

  	
  1,653,679.86

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  9/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  6,730.41

  	
   

  	
  50,158.39

  	
   

  	
  1,603,521.47

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  10/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  6,526.27

  	
   

  	
  50,362.53

  	
   

  	
  1,553,158.94

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  11/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  6,321.29

  	
   

  	
  50,567.51

  	
   

  	
  1,502,591.43

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  12/5/2011

  	
   

  	
  56,888.80

  	
   

  	
  6,115.48

  	
   

  	
  50,773.32

  	
   

  	
  1,451,818.11

  	
   

  	
   

  	
   

  
	
  2011 Totals

  	
   

  	
   

  	
   

  	
  682,665.60

  	
   

  	
  86,787.24

  	
   

  	
  595,878.36

  	
   

  	
   

  	
   

  	
   

  	
   

  
															

 

 

	
  34

  	
   

  	
  1/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  5,908.84

  	
   

  	
  50,979.96

  	
   

  	
  1,400,838.15

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  2/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  5,701.35

  	
   

  	
  51,187.45

  	
   

  	
  1,349,650.70

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  3/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  5,493.02

  	
   

  	
  51,395.78

  	
   

  	
  1,298,254.92

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  4/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  5,283.84

  	
   

  	
  51,604.96

  	
   

  	
  1,246,649.96

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  5/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  5,073.81

  	
   

  	
  51,814.99

  	
   

  	
  1,194,834.97

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  6/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  4,862.93

  	
   

  	
  52,025.87

  	
   

  	
  1,142,809.10

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  7/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  4,651.19

  	
   

  	
  52,237.61

  	
   

  	
  1,090,571.49

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  8/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  4,438.58

  	
   

  	
  52,450.22

  	
   

  	
  1,038,121.27

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  9/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  4,225.11

  	
   

  	
  52,663.69

  	
   

  	
  985,457.58

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  10/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  4,010.77

  	
   

  	
  52,878.03

  	
   

  	
  932,579.55

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  11/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  3,795.56

  	
   

  	
  53,093.24

  	
   

  	
  879,486.31

  	
   

  	
   

  	
   

  
	
  45

  	
   

  	
  12/5/2012

  	
   

  	
  56,888.80

  	
   

  	
  3,579.47

  	
   

  	
  53,309.33

  	
   

  	
  826,176.98

  	
   

  	
   

  	
   

  
	
  2012 Totals

  	
   

  	
   

  	
   

  	
  682,665.60

  	
   

  	
  57,024.47

  	
   

  	
  625,641.13

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  1/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  3,362.51

  	
   

  	
  53,526.29

  	
   

  	
  772,650.69

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  2/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  3,144.66

  	
   

  	
  53,744.14

  	
   

  	
  718,906.55

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  3/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  2,925.92

  	
   

  	
  53,962.88

  	
   

  	
  664,943.67

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  4/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  2,706.29

  	
   

  	
  54,182.51

  	
   

  	
  610,761.16

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  5/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  2,485.77

  	
   

  	
  54,403.03

  	
   

  	
  556,358.13

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  6/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  2,264.35

  	
   

  	
  54,624.45

  	
   

  	
  501,733.68

  	
   

  	
   

  	
   

  
	
  52

  	
   

  	
  7/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  2,042.04

  	
   

  	
  54,846.76

  	
   

  	
  446,886.92

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  8/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  1,818.81

  	
   

  	
  55,069.99

  	
   

  	
  391,816.93

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  9/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  1,594.68

  	
   

  	
  55,294.12

  	
   

  	
  336,522.81

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  10/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  1,369.63

  	
   

  	
  55,519.17

  	
   

  	
  281,003.64

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
  11/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  1,143.67

  	
   

  	
  55,745.13

  	
   

  	
  225,258.51

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  12/5/2013

  	
   

  	
  56,888.80

  	
   

  	
  916.79

  	
   

  	
  55,972.01

  	
   

  	
  169,286.50

  	
   

  	
   

  	
   

  
	
  2013 Totals

  	
   

  	
   

  	
   

  	
  682,665.60

  	
   

  	
  25,775.12

  	
   

  	
  656,890.48

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  1/5/2014

  	
   

  	
  56,888.80

  	
   

  	
  688.99

  	
   

  	
  56,199.81

  	
   

  	
  113,086.69

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  2/5/2014

  	
   

  	
  56,888.80

  	
   

  	
  460.26

  	
   

  	
  56,428.54

  	
   

  	
  56,658.15

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  3/5/2014

  	
   

  	
  56,888.80

  	
   

  	
  230.65

  	
   

  	
  56,658.15

  	
   

  	
  0.00

  	
   

  	
   

  	
   

  
	
  2014 Totals

  	
   

  	
   

  	
   

  	
  170,666.40

  	
   

  	
  1,379.90

  	
   

  	
  169,286.50

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Totals

  	
   

  	
   

  	
   

  	
  3,413,328.00

  	
   

  	
  390,240.50

  	
   

  	
  3,023,087.50

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

This
amortization instrument is intended for informational purposes only and may not
be used in connection with payoff requests or used to override any end of lease
contractual provisions.

 

 

	
  Company

  	
   

  	
  Vendor #

  	
   

  	
  Bank Name

  	
   

  	
  Due Date

  	
   

  	
  Payment

  	
   

  	
  Amt

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARB

  	
   

  	
  GEC020

  	
   

  	
  GE
  Loan

  	
   

  	
  1st

  	
   

  	
  Arrears

  	
   

  	
  349,594.01

  	
   

  
	
  ARB

  	
   

  	
  FIF002

  	
   

  	
  Fifth
  Third

  	
   

  	
  11th

  	
   

  	
  Arrears

  	
   

  	
  19,561.46

  	
   

  
	
  STE

  	
   

  	
  KEY015

  	
   

  	
  Key
  Equipment

  	
   

  	
  24th

  	
   

  	
  Arrears

  	
   

  	
  89,023.06

  	
   

  
	
  STE

  	
   

  	
  GEN023

  	
   

  	
  GE
  Loan

  	
   

  	
  1st

  	
   

  	
  Advance

  	
   

  	
  68,964.64

  	
   

  
	
  STE

  	
   

  	
  CAT014

  	
   

  	
  Caterpillar
  Finance

  	
   

  	
  8th

  	
   

  	
  Arrears

  	
   

  	
  84,967.17

  	
   

  
	
  STE

  	
   

  	
  USB003

  	
   

  	
  US
  bancorp

  	
   

  	
  10th

  	
   

  	
  Arrears

  	
   

  	
  43,026.83

  	
   

  
	
  STE

  	
   

  	
  CIT034

  	
   

  	
  Citicapital

  	
   

  	
  1st

  	
   

  	
  Advance

  	
   

  	
  93,769.21

  	
   

  
	
  STE

  	
   

  	
  BAN016

  	
   

  	
  B
  of A

  	
   

  	
  3rd

  	
   

  	
  Advance

  	
   

  	
  57,670.85

  	
   

  

 

 

	
   

  	
  ARB, INC-GE
  LOAN -12/06

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Compound
  Period

  	
  Monthly

  	
  360

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Nominal
  Annual Rate 

  	
  6.51%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Amoritzation Schedule

  	
   

  	
   

  
					

 

	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6/30/2008

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  19,140,992.85

  	
   

  
	
  7/30/2008

  	
   

  	
  349,594.01

  	
   

  	
  103,839.89

  	
   

  	
  245,754.12

  	
   

  	
  18,895,238.73

  	
   

  
	
  8/30/2008

  	
   

  	
  349,594.01

  	
   

  	
  102,506.67

  	
   

  	
  247,087.34

  	
   

  	
  18,648,151.39

  	
   

  
	
  9/30/2008

  	
   

  	
  349,594.01

  	
   

  	
  101,166.22

  	
   

  	
  248,427.79

  	
   

  	
  18,399,723.60

  	
   

  
	
  10/30/2008

  	
   

  	
  349,594.01

  	
   

  	
  99,818.50

  	
   

  	
  249,775.51

  	
   

  	
  18,149,948.09

  	
   

  
	
  11/30/2008

  	
   

  	
  349,594.01

  	
   

  	
  98,463.47

  	
   

  	
  251,130.54

  	
   

  	
  17,898,817.55

  	
   

  
	
  12/30/2008

  	
   

  	
  349,594.01

  	
   

  	
  97,101.09

  	
   

  	
  252,492.92

  	
   

  	
  17,646,324.62

  	
   

  
	
  2008 Totals

  	
   

  	
  2,097,564.06

  	
   

  	
  602,895.83

  	
   

  	
  1,494,668.23

  	
   

  	
  17,646,324.62

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  95,731.31

  	
   

  	
  253,862.70

  	
   

  	
  17,392,461.92

  	
   

  
	
  2/28/2009

  	
   

  	
  349,594.01

  	
   

  	
  94,354.11

  	
   

  	
  255,239.90

  	
   

  	
  17,137,222.02

  	
   

  
	
  3/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  92,969.43

  	
   

  	
  256,624.58

  	
   

  	
  16,880,597.44

  	
   

  
	
  4/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  91,577.24

  	
   

  	
  258,016.77

  	
   

  	
  16,622,580.67

  	
   

  
	
  5/31/2009

  	
   

  	
  349,594.01

  	
   

  	
  90,177.50

  	
   

  	
  259,416.51

  	
   

  	
  16,363,164.16

  	
   

  
	
  6/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  88,770.17

  	
   

  	
  260,823.84

  	
   

  	
  16,102,340.31

  	
   

  
	
  7/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  87,355.20

  	
   

  	
  262,238.81

  	
   

  	
  15,840,101.50

  	
   

  
	
  8/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  85,932.55

  	
   

  	
  263,661.46

  	
   

  	
  15,576,440.04

  	
   

  
	
  9/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  84,502.19

  	
   

  	
  265,091.82

  	
   

  	
  15,311,348.22

  	
   

  
	
  10/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  83,064.06

  	
   

  	
  266,529.95

  	
   

  	
  15,044,818.27

  	
   

  
	
  11/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  81,618.14

  	
   

  	
  267,975.87

  	
   

  	
  14,776,842.40

  	
   

  
	
  12/30/2009

  	
   

  	
  349,594.01

  	
   

  	
  80,164.37

  	
   

  	
  269,429.64

  	
   

  	
  14,507,412.76

  	
   

  
	
  2009 Totals

  	
   

  	
  4,195,128.12

  	
   

  	
  1,056,216.26

  	
   

  	
  3,138,911.86

  	
   

  	
  14,507,412.76

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  78,702.71

  	
   

  	
  270,891.30

  	
   

  	
  14,236,521.47

  	
   

  
	
  2/28/2010

  	
   

  	
  349,594.01

  	
   

  	
  77,233.13

  	
   

  	
  272,360.88

  	
   

  	
  13,964,160.59

  	
   

  
	
  3/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  75,755.57

  	
   

  	
  273,838.44

  	
   

  	
  13,690,322.15

  	
   

  
	
  4/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  74,270.00

  	
   

  	
  275,324.01

  	
   

  	
  13,414,998.13

  	
   

  
	
  5/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  72,776.36

  	
   

  	
  276,817.65

  	
   

  	
  13,138,180.49

  	
   

  
	
  6/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  71,274.63

  	
   

  	
  278,319.38

  	
   

  	
  12,859,861.11

  	
   

  
	
  7/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  69,764.75

  	
   

  	
  279,829.26

  	
   

  	
  12,580,031.84

  	
   

  
	
  8/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  68,246.67

  	
   

  	
  281,347.34

  	
   

  	
  12,298,684.51

  	
   

  
	
  9/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  66,720.36

  	
   

  	
  282,873.65

  	
   

  	
  12,015,810.86

  	
   

  
	
  10/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  65,185.77

  	
   

  	
  284,408.24

  	
   

  	
  11,731,402.62

  	
   

  
	
  11/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  63,642.86

  	
   

  	
  285,951.15

  	
   

  	
  11,445,451.47

  	
   

  
	
  12/30/2010

  	
   

  	
  349,594.01

  	
   

  	
  62,091.57

  	
   

  	
  287,502.44

  	
   

  	
  11,157,949.04

  	
   

  
	
  2010 Totals

  	
   

  	
  4,195,128.12

  	
   

  	
  845,664.40

  	
   

  	
  3,349,463.72

  	
   

  	
  11,157,949.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  60,531.87

  	
   

  	
  289,062.14

  	
   

  	
  10,868,886.90

  	
   

  
	
  2/28/2011

  	
   

  	
  349,594.01

  	
   

  	
  58,963.71

  	
   

  	
  290,630.30

  	
   

  	
  10,578,256.60

  	
   

  
	
  3/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  57,387.04

  	
   

  	
  292,206.97

  	
   

  	
  10,286,049.64

  	
   

  
	
  4/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  55,801.82

  	
   

  	
  293,792.19

  	
   

  	
  9,992,257.44

  	
   

  
	
  5/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  54,208.00

  	
   

  	
  295,386.01

  	
   

  	
  9,696,871.43

  	
   

  
	
  6/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  52,605.53

  	
   

  	
  296,988.48

  	
   

  	
  9,399,882.95

  	
   

  
	
  7/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  50,994.36

  	
   

  	
  298,599.65

  	
   

  	
  9,101,283.30

  	
   

  
	
  8/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  49,374.46

  	
   

  	
  300,219.55

  	
   

  	
  8,801,063.76

  	
   

  
	
  9/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  47,745.77

  	
   

  	
  301,848.24

  	
   

  	
  8,499,215.52

  	
   

  
	
  10/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  46,108.24

  	
   

  	
  303,485.77

  	
   

  	
  8,195,729.75

  	
   

  
	
  11/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  44,461.83

  	
   

  	
  305,132.18

  	
   

  	
  7,890,597.57

  	
   

  
	
  12/30/2011

  	
   

  	
  349,594.01

  	
   

  	
  42,806.49

  	
   

  	
  306,787.52

  	
   

  	
  7,583,810.06

  	
   

  
	
  2011 Totals

  	
   

  	
  4,195,128.12

  	
   

  	
  620,989.14

  	
   

  	
  3,574,138.98

  	
   

  	
  7,583,810.06

  	
   

  

 

 

	
  1/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  41,142.17

  	
   

  	
  308,451.84

  	
   

  	
  7,275,358.22

  	
   

  
	
  2/28/2012

  	
   

  	
  349,594.01

  	
   

  	
  39,468.82

  	
   

  	
  310,125.19

  	
   

  	
  6,965,233.02

  	
   

  
	
  3/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  37,786.39

  	
   

  	
  311,807.62

  	
   

  	
  6,653,425.40

  	
   

  
	
  4/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  36,094.83

  	
   

  	
  313,499.18

  	
   

  	
  6,339,926.23

  	
   

  
	
  5/31/2012

  	
   

  	
  349,594.01

  	
   

  	
  34,394.10

  	
   

  	
  315,199.91

  	
   

  	
  6,024,726.32

  	
   

  
	
  6/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  32,684.14

  	
   

  	
  316,909.87

  	
   

  	
  5,707,816.45

  	
   

  
	
  7/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  30,964.90

  	
   

  	
  318,629.11

  	
   

  	
  5,389,187.34

  	
   

  
	
  8/31/2012

  	
   

  	
  349,594.01

  	
   

  	
  29,236.34

  	
   

  	
  320,357.67

  	
   

  	
  5,068,829.67

  	
   

  
	
  9/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  27,498.40

  	
   

  	
  322,095.61

  	
   

  	
  4,746,734.06

  	
   

  
	
  10/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  25,751.03

  	
   

  	
  323,842.98

  	
   

  	
  4,422,891.09

  	
   

  
	
  11/30/2012

  	
   

  	
  349,594.01

  	
   

  	
  23,994.18

  	
   

  	
  325,599.83

  	
   

  	
  4,097,291.26

  	
   

  
	
  12/31/2012

  	
   

  	
  349,594.01

  	
   

  	
  22,227.81

  	
   

  	
  327,366.20

  	
   

  	
  3,769,925.05

  	
   

  
	
  2012 Totals

  	
   

  	
  2,097,564.06

  	
   

  	
  381,243.12

  	
   

  	
  3,813,885.00

  	
   

  	
  3,769,925.05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  20,451.84

  	
   

  	
  329,142.17

  	
   

  	
  3,440,782.89

  	
   

  
	
  2/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  18,666.25

  	
   

  	
  330,927.76

  	
   

  	
  3,109,855.13

  	
   

  
	
  3/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  16,870.96

  	
   

  	
  332,723.05

  	
   

  	
  2,777,132.08

  	
   

  
	
  4/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  15,065.94

  	
   

  	
  334,528.07

  	
   

  	
  2,442,604.01

  	
   

  
	
  5/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  13,251.13

  	
   

  	
  336,342.88

  	
   

  	
  2,106,261.13

  	
   

  
	
  6/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  11,426.47

  	
   

  	
  338,167.54

  	
   

  	
  1,768,093.58

  	
   

  
	
  7/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  9,591.91

  	
   

  	
  340,002.10

  	
   

  	
  1,428,091.48

  	
   

  
	
  8/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  7,747.40

  	
   

  	
  341,846.61

  	
   

  	
  1,086,244.87

  	
   

  
	
  9/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  5,892.88

  	
   

  	
  343,701.13

  	
   

  	
  742,543.74

  	
   

  
	
  10/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  4,028.30

  	
   

  	
  345,565.71

  	
   

  	
  396,978.03

  	
   

  
	
  11/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  2,153.61

  	
   

  	
  347,440.40

  	
   

  	
  49,537.62

  	
   

  
	
  12/1/2013

  	
   

  	
  349,594.01

  	
   

  	
  268.74

  	
   

  	
  49,537.62

  	
   

  	
  0.00

  	
   

  
	
  2013 Totals

  	
   

  	
  4,195,128.12

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  ARB
  GE LOAN - AFTER PAYOFF

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Compound
  Period:

  	
  Monthly

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nominal
  Annual Rate:

  	
  6.510%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CASH
  FLOW DATA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Event

  	
   

  	
  Date

  	
   

  	
  Amount

  	
   

  	
  Number

  	
   

  	
  Period

  	
   

  	
  End Date

  	
   

  
	
  1

  	
   

  	
  Loan

  	
   

  	
  3/1/2009

  	
   

  	
  16,264,134.65

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Payment

  	
   

  	
  4/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Payment

  	
   

  	
  5/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Payment

  	
   

  	
  6/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Payment

  	
   

  	
  7/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Payment

  	
   

  	
  8/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Payment

  	
   

  	
  9/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Payment

  	
   

  	
  10/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Payment

  	
   

  	
  11/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Payment

  	
   

  	
  12/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Payment

  	
   

  	
  1/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Payment

  	
   

  	
  2/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Payment

  	
   

  	
  3/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Payment

  	
   

  	
  4/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Payment

  	
   

  	
  5/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Payment

  	
   

  	
  6/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Payment

  	
   

  	
  7/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  Payment

  	
   

  	
  8/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  Payment

  	
   

  	
  9/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  Payment

  	
   

  	
  10/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  Payment

  	
   

  	
  11/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  Payment

  	
   

  	
  12/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  Payment

  	
   

  	
  1/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  Payment

  	
   

  	
  2/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  Payment

  	
   

  	
  3/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  Payment

  	
   

  	
  4/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  Payment

  	
   

  	
  5/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  Payment

  	
   

  	
  6/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  Payment

  	
   

  	
  7/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  Payment

  	
   

  	
  8/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  Payment

  	
   

  	
  9/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  Payment

  	
   

  	
  10/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  Payment

  	
   

  	
  11/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  Payment

  	
   

  	
  12/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  Payment

  	
   

  	
  1/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  Payment

  	
   

  	
  2/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  Payment

  	
   

  	
  3/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  Payment

  	
   

  	
  4/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  Payment

  	
   

  	
  5/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  Payment

  	
   

  	
  6/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  Payment

  	
   

  	
  7/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  Payment

  	
   

  	
  8/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  Payment

  	
   

  	
  9/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  Payment

  	
   

  	
  10/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45

  	
   

  	
  Payment

  	
   

  	
  11/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  Payment

  	
   

  	
  12/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  Payment

  	
   

  	
  1/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  Payment

  	
   

  	
  2/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  Payment

  	
   

  	
  3/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  Payment

  	
   

  	
  4/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  Payment

  	
   

  	
  5/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52

  	
   

  	
  Payment

  	
   

  	
  6/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  Payment

  	
   

  	
  7/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  Payment

  	
   

  	
  8/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  Payment

  	
   

  	
  9/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
  Payment

  	
   

  	
  10/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  Payment

  	
   

  	
  11/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  Payment

  	
   

  	
  12/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  Payment

  	
   

  	
  1/1/2014

  	
   

  	
  125,802.65-

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

AMORTIZATION SCHEDULE - Normal Amortization

 

	
   

  	
   

  	
  Date

  	
   

  	
  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  
	
  Loan

  	
   

  	
  3/1/2009

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16,264,134.65

  	
   

  
	
  1

  	
   

  	
  4/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  88,232.93

  	
   

  	
  246,135.55

  	
   

  	
  16,017,999.10

  	
   

  
	
  2

  	
   

  	
  5/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  86,897.65

  	
   

  	
  247,470.83

  	
   

  	
  15,770,528.27

  	
   

  
	
  3

  	
   

  	
  6/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  85,555.12

  	
   

  	
  248,813.36

  	
   

  	
  15,521,714.91

  	
   

  
	
  4

  	
   

  	
  7/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  84,205.30

  	
   

  	
  250,163.18

  	
   

  	
  15,271,551.73

  	
   

  
	
  5

  	
   

  	
  8/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  82,848.17

  	
   

  	
  251,520.31

  	
   

  	
  15,020,031.42

  	
   

  
	
  6

  	
   

  	
  9/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  81,483.67

  	
   

  	
  252,884.81

  	
   

  	
  14,767,146.61

  	
   

  
	
  7

  	
   

  	
  10/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  80,111.77

  	
   

  	
  254,256.71

  	
   

  	
  14,512,889.90

  	
   

  
	
  8

  	
   

  	
  11/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  78,732.43

  	
   

  	
  255,636.05

  	
   

  	
  14,257,253.85

  	
   

  
	
  9

  	
   

  	
  12/1/2009

  	
   

  	
  334,368.48

  	
   

  	
  77,345.60

  	
   

  	
  257,022.88

  	
   

  	
  14,000,230.97

  	
   

  
	
  2009 Totals

  	
   

  	
   

  	
   

  	
  3,009,316.32

  	
   

  	
  745,412.64

  	
   

  	
  2,263,903.68

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  1/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  75,951.25

  	
   

  	
  258,417.23

  	
   

  	
  13,741,813.74

  	
   

  
	
  11

  	
   

  	
  2/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  74,549.34

  	
   

  	
  259,819.14

  	
   

  	
  13,481,994.60

  	
   

  
	
  12

  	
   

  	
  3/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  73,139.82

  	
   

  	
  261,228.66

  	
   

  	
  13,220,765.94

  	
   

  
	
  13

  	
   

  	
  4/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  71,722.66

  	
   

  	
  262,645.82

  	
   

  	
  12,958,120.12

  	
   

  
	
  14

  	
   

  	
  5/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  70,297.80

  	
   

  	
  264,070.68

  	
   

  	
  12,694,049.44

  	
   

  
	
  15

  	
   

  	
  6/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  68,865.22

  	
   

  	
  265,503.26

  	
   

  	
  12,428,546.18

  	
   

  
	
  16

  	
   

  	
  7/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  67,424.86

  	
   

  	
  266,943.62

  	
   

  	
  12,161,602.56

  	
   

  
	
  17

  	
   

  	
  8/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  65,976.69

  	
   

  	
  268,391.79

  	
   

  	
  11,893,210.77

  	
   

  
	
  18

  	
   

  	
  9/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  64,520.67

  	
   

  	
  269,847.81

  	
   

  	
  11,623,362.96

  	
   

  
	
  19

  	
   

  	
  10/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  63,056.74

  	
   

  	
  271,311.74

  	
   

  	
  11,352,051.22

  	
   

  
	
  20

  	
   

  	
  11/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  61,584.88

  	
   

  	
  272,783.60

  	
   

  	
  11,079,267.62

  	
   

  
	
  21

  	
   

  	
  12/1/2010

  	
   

  	
  334,368.48

  	
   

  	
  60,105.03

  	
   

  	
  274,263.45

  	
   

  	
  10,805,004.17

  	
   

  
	
  2010 Totals

  	
   

  	
   

  	
   

  	
  4,012,421.76

  	
   

  	
  817,194.96

  	
   

  	
  3,195,226.80

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  1/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  58,617.15

  	
   

  	
  275,751.33

  	
   

  	
  10,529,252.84

  	
   

  
	
  23

  	
   

  	
  2/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  57,121.20

  	
   

  	
  277,247.28

  	
   

  	
  10,252,005.56

  	
   

  
	
  24

  	
   

  	
  3/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  55,617.13

  	
   

  	
  278,751.35

  	
   

  	
  9,973,254.21

  	
   

  
	
  25

  	
   

  	
  4/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  54,104.90

  	
   

  	
  280,263.58

  	
   

  	
  9,692,990.63

  	
   

  
	
  26

  	
   

  	
  5/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  52,584.47

  	
   

  	
  281,784.01

  	
   

  	
  9,411,206.62

  	
   

  
	
  27

  	
   

  	
  6/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  51,055.80

  	
   

  	
  283,312.68

  	
   

  	
  9,127,893.94

  	
   

  
	
  28

  	
   

  	
  7/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  49,518.82

  	
   

  	
  284,849.66

  	
   

  	
  8,843,044.28

  	
   

  
	
  29

  	
   

  	
  8/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  47,973.52

  	
   

  	
  286,394.96

  	
   

  	
  8,556,649.32

  	
   

  
	
  30

  	
   

  	
  9/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  46,419.82

  	
   

  	
  287,948.66

  	
   

  	
  8,268,700.66

  	
   

  
	
  31

  	
   

  	
  10/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  44,857.70

  	
   

  	
  289,510.78

  	
   

  	
  7,979,189.88

  	
   

  
	
  32

  	
   

  	
  11/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  43,287.11

  	
   

  	
  291,081.37

  	
   

  	
  7,688,108.51

  	
   

  
	
  33

  	
   

  	
  12/1/2011

  	
   

  	
  334,368.48

  	
   

  	
  41,707.99

  	
   

  	
  292,660.49

  	
   

  	
  7,395,448.02

  	
   

  
	
  2011 Totals

  	
   

  	
   

  	
   

  	
  4,012,421.76

  	
   

  	
  602,865.61

  	
   

  	
  3,409,556.15

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  1/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  40,120.31

  	
   

  	
  294,248.17

  	
   

  	
  7,101,199.85

  	
   

  
	
  35

  	
   

  	
  2/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  38,524.01

  	
   

  	
  295,844.47

  	
   

  	
  6,805,355.38

  	
   

  
	
  36

  	
   

  	
  3/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  36,919.05

  	
   

  	
  297,449.43

  	
   

  	
  6,507,905.95

  	
   

  
	
  37

  	
   

  	
  4/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  35,305.39

  	
   

  	
  299,063.09

  	
   

  	
  6,208,842.86

  	
   

  
	
  38

  	
   

  	
  5/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  33,682.97

  	
   

  	
  300,685.51

  	
   

  	
  5,908,157.35

  	
   

  
	
  39

  	
   

  	
  6/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  32,051.75

  	
   

  	
  302,316.73

  	
   

  	
  5,605,840.62

  	
   

  
	
  40

  	
   

  	
  7/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  30,411.69

  	
   

  	
  303,956.79

  	
   

  	
  5,301,883.83

  	
   

  
	
  41

  	
   

  	
  8/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  28,762.72

  	
   

  	
  305,605.76

  	
   

  	
  4,996,278.07

  	
   

  
	
  42

  	
   

  	
  9/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  27,104.81

  	
   

  	
  307,263.67

  	
   

  	
  4,689,014.40

  	
   

  
	
  43

  	
   

  	
  10/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  25,437.90

  	
   

  	
  308,930.58

  	
   

  	
  4,380,083.82

  	
   

  
	
  44

  	
   

  	
  11/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  23,761.95

  	
   

  	
  310,606.53

  	
   

  	
  4,069,477.29

  	
   

  
	
  45

  	
   

  	
  12/1/2012

  	
   

  	
  334,368.48

  	
   

  	
  22,076.91

  	
   

  	
  312,291.57

  	
   

  	
  3,757,185.72

  	
   

  
	
  2012 Totals

  	
   

  	
   

  	
   

  	
  4,012,421.76

  	
   

  	
  374,159.46

  	
   

  	
  3,638,262.30

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  1/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  20,382.73

  	
   

  	
  313,985.75

  	
   

  	
  3,443,199.97

  	
   

  
	
  47

  	
   

  	
  2/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  18,679.36

  	
   

  	
  315,689.12

  	
   

  	
  3,127,510.85

  	
   

  
	
  48

  	
   

  	
  3/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  16,966.75

  	
   

  	
  317,401.73

  	
   

  	
  2,810,109.12

  	
   

  
	
  49

  	
   

  	
  4/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  15,244.84

  	
   

  	
  319,123.64

  	
   

  	
  2,490,985.48

  	
   

  
	
  50

  	
   

  	
  5/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  13,513.60

  	
   

  	
  320,854.88

  	
   

  	
  2,170,130.60

  	
   

  
	
  51

  	
   

  	
  6/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  11,772.96

  	
   

  	
  322,595.52

  	
   

  	
  1,847,535.08

  	
   

  
	
  52

  	
   

  	
  7/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  10,022.88

  	
   

  	
  324,345.60

  	
   

  	
  1,523,189.48

  	
   

  
	
  53

  	
   

  	
  8/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  8,263.30

  	
   

  	
  326,105.18

  	
   

  	
  1,197,084.30

  	
   

  
	
  54

  	
   

  	
  9/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  6,494.18

  	
   

  	
  327,874.30

  	
   

  	
  869,210.00

  	
   

  
	
  55

  	
   

  	
  10/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  4,715.46

  	
   

  	
  329,653.02

  	
   

  	
  539,556.98

  	
   

  
	
  56

  	
   

  	
  11/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  2,927.10

  	
   

  	
  331,441.38

  	
   

  	
  208,115.60

  	
   

  
	
  57

  	
   

  	
  12/1/2013

  	
   

  	
  334,368.48

  	
   

  	
  1,129.03

  	
   

  	
  333,239.45

  	
   

  	
  125,123.85-

  	
   

  
	
  2013 Totals

  	
   

  	
   

  	
   

  	
  4,012,421.76

  	
   

  	
  130,112.19

  	
   

  	
  3,882,309.57

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  1/1/2014

  	
   

  	
  125,802.65-

  	
   

  	
  678.80-

  	
   

  	
  -125,123.85

  	
   

  	
  0.00

  	
   

  
	
  2014 Totals

  	
   

  	
   

  	
   

  	
  125,802.65-

  	
   

  	
  678.80-

  	
   

  	
  125,123.85-

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Totals

  	
   

  	
   

  	
   

  	
  18,933,200.71

  	
   

  	
  2,669,066.06

  	
   

  	
  16,264,134.65

  	
   

  	
   

  	
   

  

 

 

SCHEDULE
9.2

 

None.Exhibit 10.23

 

LOAN AND SECURITY AGREEMENT

 

This LOAN AND SECURITY
AGREEMENT dated as of March 22, 2007 (the “Agreement”), is executed by and
between Primoris Corporation, a  Nevada
corporation (the “Borrower”), which has its chief executive office located at
26000 Commercentre Drive, Lake Forest, California 92630, and LASALLE BANK
NATIONAL ASSOCIATION, a national banking association (the “Bank”), whose
address is 135 South LaSalle Street, Chicago, Illinois 60603.

 

RECITALS:

 

A.   The Borrower
desires to borrow funds and obtain other financial accommodations from the
Bank.

 

B.   Pursuant to the
Borrower’s request, the Bank is willing to extend such financial accommodations
to the Borrower under the terms and conditions set forth herein.

 

C.   It is the parties’
intent that the Borrower and its Affiliates and the Guarantors and their
Affiliates shall provide security for the Loans and any other borrowings by the
Borrower and its Affiliates from the Bank and its Affiliates.

 

NOW THEREFORE, in
consideration of the premises, and the mutual covenants and agreements set
forth herein, the Borrower agrees to borrow from the Bank, and the Bank agrees
to lend to the Borrower, subject to and upon the following terms and
conditions:

 

AGREEMENTS:

 

Section 1.   DEFINITIONS.

 

1.1.   Defined Terms.
For the purposes of this Agreement, the following capitalized words and phrases
shall have the meanings set forth below.

 

“Account
or Accounts” shall have the meaning set forth in the UCC.

 

“Affiliate” of any
Person shall mean (a) any other Person which, directly or indirectly,
controls or is controlled by or is under common control with such Person, (b) any
officer or director of such Person, and (c) with respect to the Bank, the
foregoing and also any entity administered or managed by the Bank, or an
Affiliate or investment advisor thereof and which is engaged in making,
purchasing, holding or otherwise investing in commercial loans. A Person shall
be deemed to be “controlled by” any other Person if such Person possesses,
directly or indirectly, power to direct or cause the direction of the
management and policies of such Person whether by contract, ownership of voting
securities, membership interests or otherwise.

 

 

“Applicable Margin”
shall mean the rate per annum added to the Base Rate and/or LIBOR to determine
the Revolving Interest Rate as determined by the ratio of Total Debt to
Tangible Net Worth of the Borrower as of the last day of the prior fiscal
quarter, as set forth below:

 

	
  Total Debt to Tangible Net
  Worth

  	
   

  	
  LIBOR

  Spread

  	
   

  	
  Base
  Rate Spread

  	
   

  	
  Commitment
  Fee

  	
   

  	
  Non-Utilization
  Fee

  	
   

  	
  Letter
  of Credit Fee

  
	
  Greater
  than 1.50 to 1:00

  	
   

  	
  225
  bps

  	
   

  	
  25
  bps

  	
   

  	
  50
  bps

  	
   

  	
  50
  bps

  	
   

  	
  225
  bps

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater
  than 1.00 to 1.00; less than or equal to 1.50 to 1.00

  	
   

  	
  200
  bps

  	
   

  	
  25
  bps

  	
   

  	
  50
  bps

  	
   

  	
  50
  bps

  	
   

  	
  200
  bps

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater
  than 0.50 to 1:00; less than or equal to 1.00: 1.00

  	
   

  	
  175
  bps

  	
   

  	
  0
  bps

  	
   

  	
  37.5
  bps

  	
   

  	
  37.5
  bps

  	
   

  	
  175
  bps

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less
  than or equal to 0.50 to 1.00

  	
   

  	
  150
  bps

  	
   

  	
  0
  bps

  	
   

  	
  37.5
  bps

  	
   

  	
  37.5
  bps

  	
   

  	
  150
  bps

  

 

The Applicable Margin as of
the date hereof is Base Rate plus 0 bps or LIBOR plus 175 bps and shall be
adjusted, upon receipt and verification of a compliance certificate, on the
first day of each quarter based on the Total Debt to Tangible Net Worth of the
Borrower as of the last day of the preceding quarter.

 

“ARB ARENDAL” shall
mean ARB ARENDAL S. de R.L. de C.V.

 

“ARB ECUADOR” shall
mean ARB ECUADOR Cia Ltda.

 

“Bank Product Agreements”
shall mean those certain agreements entered into from time to time by the
Borrower or any Subsidiary with the Bank or any Affiliate of the Bank
concerning Bank Products.

 

“Bank Product Obligations”
shall mean (i) all obligations, liabilities, contingent reimbursement
obligations, fees, and expenses owing by the Borrower or any Subsidiary to the
Bank or any Affiliate of the Bank, or (ii) all guarantees, fees and
expenses owing by the Borrower to the Bank with regard to foreign subordinated
debt made available to the Borrower by any Affiliate of the Bank, pursuant to
or evidenced by the Bank Product Agreements and irrespective of whether for the
payment of money, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising.

 

“Bank Products” shall
mean any service or facility extended to the Borrower or any Subsidiary by the
Bank or any Affiliate of the Bank, including: (a) credit cards, (b) credit
card processing services, (c) debit cards, (d) purchase cards, (e) ACH
transactions, (f) cash management, including controlled disbursement,
accounts or services, or (g) Hedging Agreements.

 

2

 

“Bankruptcy Code”
shall mean the United States Bankruptcy Code, as now existing or hereafter
amended.

 

“Base Rate” shall
mean a per annum rate of interest as announced by the Bank from time to time
which shall remain fixed during any Interest Period.

 

“Base Rate Loan”
means any Loan which bears interest at or by reference to the Base Rate.

 

“Born Heaters Canada”
means Born Heaters Canada, Ltd., an Alberta Unlimited Liability Company.

 

“Business Day” shall
mean any day other than a Saturday, Sunday or a legal holiday on which banks
are authorized or required to be closed for the conduct of commercial banking
business in Chicago, Illinois.

 

“Capital Expenditures”
shall mean all expenditures (including Capitalized Lease Obligations) which, in
accordance with GAAP, would be required to be capitalized and shown on the
consolidated balance sheet of the Borrower, but excluding expenditures made in
connection with the replacement, substitution or restoration of assets to the
extent financed (i) from insurance proceeds (or other similar recoveries)
paid on account of the loss of or damage to the assets being replaced or
restored or (ii) with awards of compensation arising from the taking by
eminent domain or condemnation of the assets being replaced.

 

“Capital Lease” shall
mean, as to any Person, a lease of any interest in any kind of property or
asset, whether real, personal or mixed, or tangible or intangible, by such
Person, as lessee, that is, or should be, in accordance with Financial
Accounting Standards Board Statement No. 13, as amended from time to time,
or, if such statement is not then in effect, such statement of GAAP as may be
applicable, recorded as a “capital lease” on the financial statements of such
Person prepared in accordance with GAAP.

 

“Capital Securities”
shall mean, with respect to any Person, all shares, interests, participations
or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued or acquired after the date
hereof, including common shares, preferred shares, membership interests in a
limited liability company, limited or general partnership interests in a
partnership or any other equivalent of such ownership interest.

 

“Capitalized Lease
Obligations” shall mean, as to any Person, all rental obligations of such
Person, as lessee under a Capital Lease which are or will be required to be
capitalized on the books of such Person.

 

3

 

“Cash Equivalent
Investment” shall mean, at any time, (a) any evidence of Debt,
maturing not more than one year after such time, issued or guaranteed by the
United States government or any agency thereof, (b) commercial paper, maturing
not more than one year from the date of issue, or corporate demand notes, in
each case (unless issued by the Bank or its holding company) rated at least A-l
by Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or P-l by Moody’s Investors Service, Inc., (c) any
certificate of deposit, time deposit or banker’s acceptance, maturing not more
than one year after such time, or any overnight Federal Funds transaction that
is issued or sold by the Bank or its holding company (or by a commercial
banking institution that is a member of the Federal Reserve System and has a
combined capital and surplus and undivided profits of not less than Five
Hundred Thousand and 00/100 Dollars ($500,000,000)), (d) any repurchase
agreement entered into with the Bank, or other commercial banking institution
of the nature referred to in clause (c), which (i) is secured by a
fully perfected security interest in any obligation of the type described in
any of clauses (a) through (c) above, and (ii) has
a market value at the time such repurchase agreement is entered into of not
less than 100% of the repurchase obligation of the Bank, or other commercial
banking institution, thereunder, (e) money market accounts or mutual funds
which invest exclusively in assets satisfying the foregoing requirements, (f) other
short term liquid investments approved in writing by the Bank, (g) cash
held outside the United States to be deposited in a bank rated at least A-l by
Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or P-l by Moody’s Investors Service, Inc., or any
other bank acceptable to the Bank; and (h) cash held within the United
States to be invested in short term instruments for periods of less than 270
days and rated at least A-l by Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc. or P-l by Moody’s Investors
Service, Inc., to be held in an institution acceptable to the Bank.

 

“Cash Proceeds” shall
have the meaning set forth in the UCC.

 

“Change in Control”
shall mean if Brian Pratt shall cease to own and control, directly or
indirectly, at least 50% of the outstanding Capital Securities of the Borrower.
For the purpose hereof, the terms “control” or “controlling” shall mean the
possession of the power to direct, or cause the direction of, the management
and policies of the Borrower by contract or voting of securities or ownership
interests.

 

“Chattel
Paper” shall have the meaning set forth in the UCC.

 

“Closing Fee” shall
have the meaning set forth in Section 3.6 hereof.

 

“Collateral” shall
have the meaning set forth in Section 6.1 hereof.

 

“Collateral Access
Agreement” shall mean an agreement in form and substance reasonably
satisfactory to the Bank pursuant to which a mortgagee or lessor of real
property where the chief executive office of the Borrower is located or where
the chief executive office of any Subsidiary is located acknowledges the Liens
of the Bank and waives any Liens held by such Person on such property, and, in
the case of any such agreement with a mortgagee or lessor, permits the Bank
reasonable access to and use of such real property following the occurrence and
during the continuance of an Event of Default to assemble, complete and sell
any collateral stored or otherwise located thereon.

 

4

 

“Commercial
Tort Claims” shall have the meaning set forth in the UCC.

 

“Control Agreements” shall
mean those agreements in form and substance acceptable to the Bank executed by
the Borrower and any other banking institution(s) in favor of the Bank or
any Subsidiary and any other banking institution(s) which grants the Bank
a security interest in the Account(s) held by the Borrower at such other
banking institution(s) and any Subsidiary at such other banking
institution(s).

 

“Debt” shall mean, as
to any Person, without duplication, (a) all borrowed money of such Person
(including principal, interest, fees and charges), whether or not evidenced by
bonds, debentures, notes or similar instruments; and (b) all obligations,
contingent or otherwise, with respect to the maximum face amount of all letters
of credit (whether or not drawn), bankers’ acceptances and similar obligations
issued for the account of such Person (including the Letters of Credit), and
all unpaid drawings in respect of such letters of credit, bankers’ acceptances
and similar obligations. Notwithstanding the foregoing, Debt shall not include
trade payables and accrued expenses incurred by such Person in accordance with
customary practices and in the ordinary course of business of such Person.

 

“Default Rate” shall
mean a per annum rate of interest equal to the Base Rate plus two
percent (2%).

 

“Deposit
Accounts” shall have the meaning set forth in the UCC.

 

“Depreciation” shall
mean the total amounts added to depreciation, amortization, obsolescence,
valuation and other proper reserves, as reflected on the Borrower’s financial
statements and determined in accordance with GAAP.

 

“Documents”
shall have the meaning set forth in the UCC.

 

“Electronic
Chattel Paper” shall have the meaning set forth in the UCC.

 

“Employee Plan” includes
any pension, stock bonus, employee stock ownership plan, retirement, profit
sharing, deferred compensation, stock option, bonus or other incentive plan,
whether qualified or nonqualified, or any disability, medical, dental or other
health plan, life insurance or other death benefit plan, vacation benefit plan,
severance plan or other employee benefit plan or arrangement, including those
pension, profit-sharing and retirement plans of the Borrower described from
time to time in the financial statements of the Borrower and any pension plan,
welfare plan, Defined Benefit Pension Plans (as defined in ERISA) or any
multi-employer plan, maintained or administered by the Borrower or to which the
Borrower is a party or may have any liability or by which the Borrower is
bound.

 

“Environmental Laws” shall
mean all present or future federal, state or local laws, statutes, common law
duties, rules, regulations, ordinances and codes, together with all
administrative or judicial orders, consent agreements, directed duties,
requests, licenses, authorizations and permits of, and agreements with, any
governmental authority, in each case relating to any matter arising out of or
relating to public health and safety, or pollution or protection of the
environment or workplace, including any of the foregoing relating to the
presence, use, production, generation, handling, transport, treatment, storage,
disposal, distribution, discharge, emission, release, threatened release,
control or cleanup of any Hazardous Substance.

 

5

 

“Equipment”
shall have the meaning set forth in the UCC.

 

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as amended from time to
time.

 

“Event of Default” shall
mean any of the events or conditions which are set forth in Section 11
hereof.

 

“Excess Cash” shall
mean Cash Equivalent Investments in excess of Five Million and 00/100 Dollars
($5,000,000.00).

 

“Federal Funds Rate” shall
mean, for any day, a fluctuating interest rate equal for each day during such
period to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for such day on such transactions received by the
Bank from three Federal funds brokers of recognized standing selected by the
Bank. The Bank’s determination of such rate shall be binding and conclusive
absent manifest error.

 

“Financial
Assets” shall have the meaning set forth in the UCC.

 

“Fiscal Year” means
the fiscal year of the Borrower and its Subsidiaries, which period shall be the
12-month period ending on Borrower’s Fiscal Year End of each year.

 

“GAAP” shall mean
generally accepted accounting principles set forth from time to time in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board (or agencies with similar functions of
comparable stature and authority within the U.S. accounting profession), which
are applicable to the circumstances as of the date of determination, provided,
however, that interim financial statements or reports shall be deemed in
compliance with GAAP despite the absence of footnotes and fiscal year-end
adjustments as required by GAAP.

 

“General
Intangibles” shall have the meaning set forth in the UCC.

 

“Goods”
shall have the meaning set forth in the UCC.

 

“Guarantor” and “Guarantors”
shall mean, respectively, each of and collectively, the following Persons: ARB, Inc.;
ARB Structures, Inc.; Cardinal Contractors, Inc.; Cardinal
Mechanical, L.P.; Onquest, Inc.; Pipeline Trenching, LLC; and any other
Person signing a Guaranty.

 

6

 

“Guaranties” shall
have the meaning set forth in Section 3.1 hereof.

 

“Hazardous Substances”
shall mean (a) any petroleum or petroleum products, radioactive materials,
asbestos in any form that is or could become friable, urea formaldehyde foam
insulation, dielectric fluid containing levels of polychlorinated biphenyls,
radon gas and mold; (b) any chemicals, materials, pollutant or substances
defined as or included in the definition of “hazardous substances”, “hazardous
waste”, “hazardous materials”, “extremely hazardous substances”, “restricted
hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants”
or words of similar import, under any applicable Environmental Law; and
(c) any other chemical, material or substance, the exposure to, or release
of which is prohibited, limited or regulated by any governmental authority or
for which any duty or standard of care is imposed pursuant to, any
Environmental Law.

 

“Hedging Agreement” shall
mean any interest rate, currency or commodity swap agreement, cap agreement or
collar agreement, and any other agreement or arrangement designed to protect a
Person against fluctuations in interest rates, currency exchange rates or
commodity prices.

 

“Hedging Obligation” shall
mean, with respect to any Person, any liability of such Person under any
Hedging Agreement.

 

“Indemnified Party” and
“Indemnified Parties” shall mean, respectively, each of the Bank and any
parent corporation, Affiliate or Subsidiary of the Bank, and each of their
respective officers, directors, employees, attorneys and agents, and all of
such parties and entities.

 

“Instruments”
shall have the meaning set forth in the UCC.

 

“Intellectual Property”
shall mean the collective reference to all rights, priorities and privileges
relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including copyrights, patents,
service marks and trademarks, and all registrations and applications for
registration therefor and all licensees thereof, trade names, domain names,
technology, know-how and processes, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.

 

“Interest Charges” shall
mean, for any period, the sum of: (a) all interest, charges and related
expenses payable with respect to that fiscal period to a lender in connection
with borrowed money or the deferred purchase price of assets that are treated
as interest in accordance with GAAP, plus (b) the portion of
Capitalized Lease Obligations with respect to that fiscal period that should be
treated as interest in accordance with GAAP, plus (c) all charges
paid or payable (without duplication) during that period with respect to any
Hedging Agreements.

 

7

 

“Interest Period” shall
mean successive one week, two week, one month, two month, three month or six
month periods, beginning and ending as provided in this Agreement.

 

“Inventory” shall
have the meaning set forth in the UCC.

 

“Investment” shall
mean, with respect to any Person, any investment in another Person, whether by
acquisition of any debt or equity security, by making any loan or advance, by
becoming obligated with respect to a Contingent Liability in respect of
obligations of such other Person (other than travel and similar advances to
employees in the ordinary course of business).

 

“Investment
Property” shall have the meaning set forth in the UCC.

 

“Letter of Credit” and
“Letters of Credit” shall mean, respectively, a letter of credit and all
such letters of credit issued by the Bank, in its sole discretion, upon the
execution and delivery by the Borrower and the acceptance by the Bank of a
Master Letter of Credit Agreement and a Letter of Credit Application, as set
forth in Section 2.7 of this Agreement.

 

“Letter of Credit
Application” shall mean, with respect to any request for the issuance of a
Letter of Credit, a letter of credit application in the form being used by the
Bank at the time of such request for the type of Letter of Credit requested.

 

“Letter of Credit
Commitment” shall mean, at any time, an amount equal to Ten Million and
00/100 Dollars ($10,000,000.00).

 

“Letter of Credit Fee”
shall have the meaning set forth in Section 2.6 hereof.

 

“Letter of Credit
Maturity Date” shall mean one year after the Revolving Loan Maturity Date.

 

“Letter of Credit
Obligations” shall mean, at any time, an amount equal to the aggregate of
the original face amounts of all Letters of Credit minus the sum of (i) the
amount of any reductions in the original face amount of any Letter of Credit
which did not result from a draw thereunder, (ii) the amount of any
payments made by the Bank with respect to any draws made under a Letter of
Credit for which the Borrower has reimbursed the Bank, (iii) the amount of
any payments made by the Bank with respect to any draws made under a Letter of
Credit which have been converted to a Revolving Loan as set forth in Section 2.7,
and (iv) the portion of any issued but expired Letter of Credit which has
not been drawn by the beneficiary thereunder. For purposes of determining the
outstanding Letter of Credit Obligations at any time, the Bank’s acceptance of
a draft drawn on the Bank pursuant to a Letter of Credit shall constitute a
draw on the applicable Letter of Credit at the time of such acceptance.

 

“Letter
of Credit Rights” shall have the meaning set forth in the UCC.

 

“Liabilities” shall
mean at all times all liabilities of the Borrower that would be shown as such
on a balance sheet of the Borrower prepared in accordance with GAAP.

 

8

 

“LIBOR” shall mean a
rate of interest equal to (a) the per annum rate of interest at which
United States dollar deposits for a period equal to the relevant Interest
Period are offered in the London Interbank Eurodollar market at 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period (or three Business Days prior to the commencement of such Interest
Period if banks in London, England were not open and dealing in offshore United
States dollars on such second preceding Business Day), as displayed in the Bloomberg Financial Markets system (or other
authoritative source selected by the Bank in its sole discretion), divided by (b) a
number determined by subtracting from 1.00 the then stated maximum reserve
percentage for determining reserves to be maintained by member banks of the
Federal Reserve System for Eurocurrency funding or liabilities as defined in
Regulation D (or any successor category of liabilities under Regulation D), or
as LIBOR is otherwise determined by the Bank in its sole and absolute
discretion. The Bank’s determination of LIBOR shall be conclusive, absent
manifest error.

 

“LIBOR Loan” or “LIBOR
Loans” shall mean that portion, and collectively those portions, of the
aggregate outstanding principal balance of the Loans that bear interest at the
LIBOR Rate.

 

“LIBOR Rate” shall
mean a per annum rate of interest equal to LIBOR for the relevant Interest
Period, plus 175 basis points, which LIBOR Rate shall remain fixed
during such Interest Period.

 

“Lien” shall mean,
with respect to any Person, any interest granted by such Person in any real or
personal property, asset or other right owned or being purchased or acquired by
such Person (including an interest in respect of a Capital Lease) which secures
payment or performance of any obligation and shall include any mortgage, lien,
encumbrance, title retention lien, charge or other security interest of any
kind, whether arising by contract, as a matter of law, by judicial process or
otherwise.

 

“Loans” shall mean
the Revolving Loans made by the Bank to the Borrower and all Letter of Credit
Obligations, under and pursuant to this Agreement.

 

“Loan Documents” shall
mean each of the agreements, documents, instruments and certificates set forth
in Section 3.1 hereof, and any and all such other instruments,
documents, certificates and agreements from time to time executed and delivered
by the Borrower, the Guarantors or any of their Subsidiaries for the benefit of
the Bank pursuant to any of the foregoing, and all amendments, restatements,
supplements and other modifications thereto.

 

“Master Letter of Credit
Agreement” shall mean, at any time, with respect to the issuance of Letters
of Credit, a Master Letter of Credit Agreement in the form being used by the
Bank at such time.

 

“Material” shall mean
the description of any claim which could, if determined adversely, result in a
Material Adverse Effect.

 

9

 

“Material Adverse Effect”
shall mean (a) a material adverse change in, or a material adverse effect
upon, the assets, business, properties, prospects, condition (financial or
otherwise) or results of operations of the Borrower and its Subsidiaries taken
as a whole, (b) a material impairment of the ability of the Borrower and
its Subsidiaries to perform any of the Obligations under any of the Loan
Documents, or (c) a material adverse effect on (i) any substantial
portion of the Collateral, (ii) the legality, validity, binding effect or
enforceability against the Borrower and its Subsidiaries of any of the Loan
Documents, (iii) the perfection or priority of any Lien granted to the
Bank under any Loan Document, or (iv) the rights or remedies of the Bank
under any Loan Document.

 

“Net Income” shall
mean, with respect to the Borrower and its Subsidiaries for any period, the net
income (or loss) of the Borrower and its Subsidiaries for such period as
determined in accordance with GAAP excluding property, plant and equipment, any
extraordinary gains outside the ordinary course and any gains from discontinued
operations.

 

“Noncash
Proceeds” shall have the meaning set forth in the UCC.

 

“Non-Excluded Taxes” shall
have the meaning set forth in Section 2.7(a) hereof.

 

“Non-Utilization Fee”
shall have the meaning set forth in Section 2.4 hereof.

 

“Note” shall mean the
Revolving Note.

 

“Obligations” shall
mean the Loans, as evidenced by any Note, all interest accrued thereon
(including interest which would be payable as post-petition in connection with
any bankruptcy or similar proceeding, whether or not permitted as a claim
thereunder), any fees due the Bank hereunder, any expenses incurred by the Bank
hereunder, including without limitation, all liabilities and obligations under
this Agreement, under any other Loan Document, any reimbursement obligations of
the Borrower or any Subsidiary of the Borrower in respect of Letters of Credit,
all Hedging Obligations of the Borrower or any Subsidiary of the Borrower which
are owed to the Bank or any Affiliate of the Bank, and all Bank Product
Obligations of the Borrower or any Subsidiary of the Borrower, and any and all
other liabilities and obligations owed by the Borrower or any Subsidiary of the
Borrower to the Bank or any Affiliate of the Bank from time to time, howsoever
created, arising or evidenced, whether direct or indirect, joint or several,
absolute or contingent, now or hereafter existing, or due or to become due,
together with any and all renewals, extensions, restatements or replacements of
any of the foregoing.

 

“Obligor” shall mean
the Borrower, any Subsidiary of the Borrower, any Guarantor, accommodation
endorser, third party pledgor, or any other party liable with respect to the
Obligations.

 

“Organizational
Identification Number” means, with respect to Borrower, the organizational
identification number assigned to Borrower by the applicable governmental unit
or agency of the jurisdiction of organization of the Borrower.

 

10

 

“Other Taxes” shall
mean any present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies which arise from the execution,
delivery, enforcement or registration of, or otherwise with respect to, this
Agreement or any of the other Loan Documents.

 

“Payment
Intangibles” shall have the meaning set forth in the UCC.

 

“Permitted Liens” shall
mean (a)  Liens for Taxes, assessments or
other governmental charges not at the time delinquent or thereafter payable
without penalty or being contested in good faith by appropriate proceedings
and, in each case, for which it maintains adequate reserves in accordance with
GAAP and in respect of which no Lien has been filed; (b) Liens arising in
the ordinary course of business (such as (i) Liens of carriers,
warehousemen, mechanics and materialmen and other similar Liens imposed by law,
and (ii) Liens in the form of deposits or pledges incurred in connection
with worker’s compensation, unemployment compensation and other types of social
security (excluding Liens arising under ERISA) or in connection with surety
bonds, bids, performance bonds and similar obligations) for sums not overdue or
being contested in good faith by appropriate proceedings and not involving any
advances or borrowed money or the deferred purchase price of property or
services, which do not in the aggregate materially detract from the value of
the property or assets of the Borrower or materially impair the use thereof in
the operation of the Borrower’s business and, in each case, for which it
maintains adequate reserves in accordance with GAAP and in respect of which no
Lien has been filed; (c) Liens described on Schedule 9.2 as of the
Closing Date; (d) attachments, appeal bonds, judgments and other similar
Liens, for sums not exceeding Five Hundred Thousand and 00/100 Dollars
($500,000.00) arising in connection with court proceedings, provided the
execution or other enforcement of such Liens is effectively stayed and the
claims secured thereby are being actively contested in good faith and by
appropriate proceedings and to the extent such judgments or awards do not
constitute an Event of Default under Section 11.8 hereof; (e) easements,
rights of way, restrictions, minor defects or irregularities in title and other
similar Liens not interfering in any material respect with the ordinary conduct
of the business of the Borrower or any of its Subsidiaries; (f) Liens
arising in connection with Capitalized Lease Obligations (and attaching only to
the property being leased); (g) subject to the limitation set forth in Section 9.1(h),
Liens that constitute purchase money security interests on any property
securing Debt incurred for the purpose of financing all or any part of the cost
of acquiring such property, provided that any such Lien attaches to such
property within twenty (20) days of the acquisition thereof and attaches solely
to the property so acquired; (h)  Liens
granted to the Bank hereunder and under the Loan Documents; (i) subject to
the limitations set forth in Section 10.4, Liens arising in
connection with the incurrence of Capital Expenditures; and (j) Liens for
certain Equipment as approved by the Bank.

 

“Person” shall mean
any natural person, partnership, limited liability company, corporation, trust,
joint venture, joint stock company, association, unincorporated organization,
government or agency or political subdivision thereof, or other entity, whether
acting in an individual, fiduciary or other capacity.

 

“Pledge Agreements” shall
have the meaning set forth in Section 3.2 hereof.

 

11

 

“Proceeds”
shall have the meaning set forth in the UCC.

 

“Regulatory Change” shall
mean the introduction of, or any change in any applicable law, treaty, rule,
regulation or guideline or in the interpretation or administration thereof by
any governmental authority or any central bank or other fiscal, monetary or
other authority having jurisdiction over the Bank or its lending office.

 

“Revolving Interest Rate”
shall mean the Interest Rate plus the Applicable Margin.

 

“Revolving Loan” and
“Revolving Loans” shall mean, respectively, each loan and all
outstanding loans made by the Bank to the Borrower under and pursuant to this
Agreement, as set forth in Section 2.1 of this Agreement.

 

“Revolving Loan
Availability” shall mean, at any time, an amount equal to the Revolving
Loan Commitment minus the Letter of Credit Obligations minus
outstanding Revolving Loans.

 

“Revolving Loan
Commitment” shall mean Thirty Million and 00/100 Dollars ($30,000,000.00).

 

“Revolving Loan Maturity
Date” shall mean   March 20, 2010, unless extended by the Bank
pursuant to any modification, extension or renewal note executed by the
Borrower and accepted by the Bank in its sole and absolute discretion in
substitution for the Revolving Note.

 

“Revolving Note” shall
mean a revolving note in the form prepared by and acceptable to the Bank, dated
as of the date hereof, in the amount of the Revolving Loan Commitment and
maturing on the Revolving Loan Maturity Date, duly executed by the Borrower and
payable to the order of the Bank, together with any and all renewal, extension,
modification or replacement notes executed by the Borrower and delivered to the
Bank and given in substitution therefor.

 

“Securities”
shall have the meaning set forth in the UCC.

 

“Senior Debt” shall
mean all Debt of the Borrower and its Subsidiaries other than Subordinated
Debt.

 

“Software”
shall have the meaning set forth in the UCC.

 

“Subordinated Debt” shall
mean that portion of the Debt of the Borrower which is subordinated to the
Obligations in a manner satisfactory to the Bank, including right and time of
payment of principal and interest.

 

“Subsidiary” and “Subsidiaries”
shall mean, respectively, with respect to any Person, each and all such
corporations, partnerships, limited partnerships, limited liability companies,
limited liability partnerships, joint ventures or other entities of which or in
which such Person owns, directly or indirectly, such number of outstanding
Capital Securities as have more than fifty percent (50.00%) of the ordinary
voting power for the election of directors or other managers of such
corporation, partnership, limited liability company or other entity. Unless the
context otherwise requires, each reference to Subsidiaries herein shall be a
reference to Subsidiaries of the Borrower.

 

12

 

“Supporting
Obligations” shall have the meaning set forth in the UCC.

 

“Tangible Assets” shall
mean the total of all assets appearing on a balance sheet of the Borrower
prepared in accordance with GAAP (with Inventory being valued at the lower of
cost or market), after deducting all proper reserves (including reserves for
Depreciation) minus the sum of (i) goodwill, patents, trademarks, prepaid
expenses, deposits, deferred charges and other personal property which is
classified as intangible property in accordance with GAAP, and (ii) any
amounts due from shareholders, officers or employees of the Borrower.

 

“Tangible Net Worth” shall
mean at any time the total of Tangible Assets minus Liabilities plus
Subordinated Debt.

 

“Taxes” shall mean
any and all present and future taxes, duties, levies, imposts, deductions,
assessments, charges or withholdings, and any and all liabilities (including
interest and penalties and other additions to taxes) with respect to the
foregoing.

 

“Total Debt” shall
mean all Debt of the Borrower and its Subsidiaries, determined on a
consolidated basis, excluding Debt of the Borrower to Subsidiaries and Debt of
Subsidiaries to the Borrower or to other Subsidiaries.

 

“UCC” shall mean the
Uniform Commercial Code in effect in the state of Illinois from time to time.

 

“Unmatured Event of
Default” shall mean any event which, with the giving of notice, the passage
of time or both, would constitute an Event of Default.

 

“Voidable Transfer” shall
have the meaning set forth in Section 13.21 hereof.

 

“Wholly-Owned Subsidiary”
shall mean any Subsidiary of which or in which the Borrower owns, directly or
indirectly, one hundred percent (100%) of the Capital Securities of such
Subsidiary.

 

13

 

1.2.   Accounting
Terms. Any accounting terms used in this Agreement which are not
specifically defined herein shall have the meanings customarily given them in
accordance with GAAP. Calculations and determinations of financial and
accounting terms used and not otherwise specifically defined hereunder and the
preparation of financial statements to be furnished to the Bank pursuant hereto
shall be made and prepared, both as to classification of items and as to amount,
in accordance with sound accounting practices and GAAP as used in the
preparation of the financial statements of the Borrower on the date of this
Agreement. If any changes in accounting principles or practices from those used
in the preparation of the financial statements are hereafter occasioned by the
promulgation of rules, regulations, pronouncements and opinions by or required
by the Financial Accounting Standards Board or the American Institute of
Certified Public Accountants (or any successor thereto or agencies with similar
functions), which results in a material change in the method of accounting in
the financial statements required to be furnished to the Bank hereunder or in
the calculation of financial covenants, standards or terms contained in this
Agreement, the parties hereto agree to enter into good faith negotiations to
amend such provisions so as equitably to reflect such changes to the end that
the criteria for evaluating the financial condition and performance of the
Borrower will be the same after such changes as they were before such changes;
and if the parties fail to agree on the amendment of such provisions, the
Borrower will furnish financial statements in accordance with such changes, but
shall provide calculations for all financial covenants, perform all financial
covenants and otherwise observe all financial standards and terms in accordance
with applicable accounting principles and practices in effect immediately prior
to such changes. Calculations with respect to financial covenants required to
be stated in accordance with applicable accounting principles and practices in
effect immediately prior to such changes shall be reviewed and certified by the
Borrower’s accountants.

 

1.3.   Other Terms
Defined in UCC. All other capitalized words and phrases used herein and not
otherwise specifically defined herein shall have the respective meanings
assigned to such terms in the UCC, to the extent the same are used or defined
therein.

 

1.4.   Other
Interpretive Provisions.

 

(a)   
The meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms. Whenever the context so requires, the neuter gender
includes the masculine and feminine, the single number includes the plural, and
vice versa, and in particular the word “Borrower” shall be so construed.

 

(b)   
Section and Schedule references are to this Agreement unless otherwise
specified. The words “hereof”, “herein” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement.

 

(c)   
The term “including” is not limiting, and means “including, without limitation”.

 

(d)  
In the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including”; the words “to” and “until”
each mean “to but excluding”, and the word “through” means “to and including”.

 

(e)   
Unless otherwise expressly provided herein, (i) references to agreements
(including this Agreement and the other Loan Documents) and other contractual
instruments shall be deemed to include all subsequent amendments, restatements,
supplements and other modifications thereto, but only to the extent such
amendments, restatements, supplements and other modifications are not
prohibited by the terms of any Loan Document, and (ii) references to any
statute or regulation shall be construed as including all statutory and
regulatory provisions amending, replacing, supplementing or interpreting such
statute or regulation.

 

14

 

(f)    
To the extent any of the provisions of the other Loan Documents are
inconsistent with the terms of this Agreement, the provisions of this Agreement
shall govern.

 

(g)   
This Agreement and the other Loan Documents may use several different
limitations, tests or measurements to regulate the same or similar matters. All
such limitations, tests and measurements are cumulative and each shall be
performed in accordance with its terms.

 

Section 2.   COMMITMENT
OF THE BANK.

 

2.1.   Revolving
Loans.

 

(a)   
Revolving Loan Commitment. Subject to the terms and conditions of this
Agreement and the other Loan Documents, and in reliance upon the
representations and warranties of the Borrower set forth herein and in the
other Loan Documents, the Bank agrees to make such Revolving Loans at such
times as the Borrower may from time to time request until, but not including,
the Revolving Loan Maturity Date, and in such amounts as the Borrower may from time
to time request, provided, however, that the aggregate principal balance of all
Revolving Loans outstanding at any time shall not exceed the Revolving Loan
Availability. Revolving Loans made by the Bank may be repaid and, subject to
the terms and conditions hereof, borrowed again up to, but not including the
Revolving Loan Maturity Date unless the Revolving Loans are otherwise
accelerated, terminated or extended as provided in this Agreement. The
Revolving Loans shall be used by the Borrower for the purpose of working
capital and general corporate purposes.

 

(b)  
Revolving Loan Interest and Payments. Except as otherwise provided in
this Section 2.1(b), the principal amount of the Revolving Loans
outstanding from time to time shall bear interest at the applicable Revolving
Interest Rate. Accrued and unpaid interest on the unpaid principal balance of
all Revolving Loans outstanding from time to time which are Base Rate Loans,
shall be due and payable on the last Business Day of each month. Accrued and
unpaid interest on the unpaid principal balance of all Revolving Loans
outstanding from time to time which are LIBOR Loans shall be payable on the
last Business Day of each Interest Period, commencing on the first such date to
occur after the date hereof, on the date of any principal repayment of a LIBOR
Loan and on the Revolving Loan Maturity Date. From and after maturity, or after
the occurrence and during the continuation of an Event of Default, interest on
the outstanding principal balance of the Revolving Loans, at the option of the
Bank, may accrue at the Default Rate and shall be payable upon demand from the
Bank.

 

15

 

(c)   
Revolving Loan Principal Payments.

 

(i)   
Revolving Loan Mandatory Payments. All Revolving Loans hereunder shall
be repaid by the Borrower on the Revolving Loan Maturity Date, unless payable
sooner pursuant to the provisions of this Agreement. In the event the aggregate
outstanding principal balance of all Revolving Loans and Letter of Credit
Obligations hereunder exceeds the Revolving Loan Availability, the Borrower
shall, without notice or demand of any kind, immediately make such repayments
of the Revolving Loans or take such other actions as are satisfactory to the
Bank as shall be necessary to eliminate such excess.

 

(ii)  
Optional Prepayments. The Borrower may from time to time prepay the
Revolving Loans which are Base Rate Loans, in whole or in part, without any
prepayment penalty whatsoever, provided that any prepayment of the entire
principal balance of the Base Rate Loans shall include accrued interest on such
Base Rate Loans to the date of such prepayment.

 

2.2.   Additional
LIBOR Loan Provisions.

 

(a)   
LIBOR Loan Prepayments. Notwithstanding anything to the contrary
contained herein, the principal balance of any LIBOR Loan may not be prepaid in
whole or in part at any time. If, for any reason, a LIBOR Loan is paid prior to
the last Business Day of any Interest Period, whether voluntary, involuntary,
by reason of acceleration or otherwise, each such prepayment of a LIBOR Loan
will be accompanied by the amount of accrued interest on the amount prepaid and
any and all costs, expenses, penalties and charges incurred by the Bank as a
result of the early termination or breakage of a LIBOR Loan, plus the amount,
if any, by which (i) the additional interest which would have been payable
during the Interest Period on the LIBOR Loan prepaid had it not been prepaid,
exceeds (ii) the interest which would have been recoverable by the Bank by
placing the amount prepaid on deposit in the domestic certificate of deposit
market, the eurodollar deposit market, or other appropriate money market
selected by the Bank, for a period starting on the date on which it was prepaid
and ending on the last day of the Interest Period for such LIBOR Loan. The
amount of any such loss or expense payable by the Borrower to the Bank under
this section shall be determined in the Bank’s sole discretion based upon the
assumption that the Bank funded its loan commitment for LIBOR Loans in the
London Interbank Eurodollar market and using any reasonable attribution or
averaging methods which the Bank deems appropriate and practical, provided,
however, that the Bank is not obligated to accept a deposit in the London Interbank
Eurodollar market in order to charge interest on a LIBOR Loan at the LIBOR
Rate.

 

(b)   
LIBOR Unavailability. If the Bank determines in good faith (which
determination shall be conclusive, absent manifest error) prior to the
commencement of any Interest Period that (i) the making or maintenance of
any LIBOR Loan would violate any applicable law, rule, regulation or directive,
whether or not having the force of law, (ii) United States dollar deposits
in the principal amount, and for periods equal to the Interest Period for
funding any LIBOR Loan are not available in the London Interbank Eurodollar
market in the ordinary course of business, (iii) by reason of
circumstances affecting the London Interbank Eurodollar market, adequate and
fair means do not exist for ascertaining the LIBOR Rate to be applicable to the
relevant LIBOR Loan, or (iv) the LIBOR Rate does not accurately reflect
the cost to the Bank of a LIBOR Loan, the Bank shall promptly notify the
Borrower thereof and, so long as the foregoing conditions continue, none of the
Loans may be advanced as a LIBOR Loan thereafter. In addition, at the Borrower’s
option, each existing LIBOR Loan shall be immediately (i) converted to a
Base Rate Loan on the last Business Day of the then existing Interest Period,
or (ii) due and payable on the last Business Day of the then existing
Interest Period, without further demand, presentment, protest or notice of any
kind, all of which are hereby waived by the Borrower.

 

16

 

(c)   
Regulatory Change. In addition, if, after the date hereof, a Regulatory
Change shall, in the reasonable determination of the Bank, make it unlawful for
the Bank to make or maintain the LIBOR Loans, then the Bank shall promptly
notify the Borrower and none of the Loans may be advanced as a LIBOR Loan
thereafter. In addition, at the Borrower’s option, each existing LIBOR Loan
shall be immediately (i) converted to a Base Rate Loan on the last
Business Day of the then existing Interest Period or on such earlier date as
required by law, or (ii) due and payable on the last Business Day of the
then existing Interest Period or on such earlier date as required by law, all
without further demand, presentment, protest or notice of any kind, all of
which are hereby waived by the Borrower.

 

(d)   
LIBOR Indemnity. If any Regulatory Change, or compliance by the Bank or
any Person controlling the Bank with any request or directive of any
governmental authority, central bank or comparable agency (whether or not having
the force of law) shall (a) impose, modify or deem applicable any
assessment, reserve, special deposit or similar requirement against assets held
by, or deposits in or for the account of or loans by, or any other acquisition
of funds or disbursements by, the Bank; (b) subject the Bank or any LIBOR
Loan to any tax, duty, charge, stamp tax or fee or change the basis of taxation
of payments to the Bank of principal or interest due from the Borrower to the
Bank hereunder (other than a change in the taxation of the overall net income
of the Bank); or (c) impose on the Bank any other condition regarding such
LIBOR Loan or the Bank’s funding thereof, and the Bank shall determine (which
determination shall be conclusive, absent manifest error) that the result of
the foregoing is to increase the cost to, or to impose a cost on, the Bank or
such controlling Person of making or maintaining such LIBOR Loan or to reduce
the amount of principal or interest received by the Bank hereunder, then the
Borrower shall pay to the Bank or such controlling Person, on demand, such
additional amounts as the Bank shall, from time to time, determine are
sufficient to compensate and indemnify the Bank for such increased cost or
reduced amount.

 

2.4   Interest and
Fee Computation; Collection of Funds. Except as otherwise set forth herein,
all interest and fees shall be calculated on the basis of a year consisting of
360 days and shall be paid for the actual number of days elapsed. Principal
payments submitted in funds not immediately available shall continue to bear
interest until collected. If any payment to be made by the Borrower hereunder
or under any Note shall become due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day and such extension of
time shall be included in computing any interest in respect of such payment.
Notwithstanding anything to the contrary contained herein, the final payment
due under any of the Loans must be made by wire transfer or other immediately
available funds. All payments made by the Borrower hereunder or under any of
the Loan Documents shall be made without setoff, counterclaim, or other
defense. To the extent permitted by applicable law, all payments hereunder or
under any of the Loan Documents (including any payment of principal, interest,
or fees) to, or for the benefit, of any Person shall be made by the Borrower
free and clear of, and without deduction or withholding for, or account of, any
taxes now or hereinafter imposed by any taxing authority.   The Borrower
pay the Bank a Non- Utilization Fee as per the Applicable Margin, which Non-U
tilization Fee shall be (A) calculated on the basis of a year consisting
of 360 days, (B) paid for the actual number of days elapsed, and (C) payable
quarterly in arrears on the last day of each March, June, September and
December, commencing on March 31, 2007, and on the Revolving Loan Maturity
Date. Issued but undrawn Letters of Credit will count as utilization for the
purposes of calculating the Non-Utilization Fee.

 

17

 

2.5.   Letters of
Credit. Subject to the terms and conditions of this Agreement and upon (i) the
execution by the Borrower and the Bank of a Master Letter of Credit Agreement
in form and substance acceptable to the Bank (together with all amendments,
modifications and restatements thereof, the “Master Letter of Credit Agreement”),
and (ii) the execution and delivery by the Borrower, and the acceptance by
the Bank, in its sole and absolute discretion, of a Letter of Credit
Application, the Bank agrees to issue for the account of the Borrower such
Letters of Credit in the standard form of the Bank and otherwise in form and
substance acceptable to the Bank, from time to time during the term of this
Agreement, provided that the Letter of Credit Obligations may not at any time
exceed the Letter of Credit Commitment and provided further, that no Letter of
Credit shall have an expiration date later than the Letter of Credit Maturity
Date. The amount of any payments made by the Bank with respect to draws made by
a beneficiary under a Letter of Credit for which the Borrower has failed to
reimburse the Bank upon the earlier of (i) the Bank’s demand for
repayment, or (ii) five (5) days from the date of such payment to such
beneficiary by the Bank, shall be deemed to have been converted to a Revolving
Loan as of the date such payment was made by the Bank to such beneficiary. Upon
the occurrence of an Event of a Default and at the option of the Bank, all
Letter of Credit Obligations shall be converted to Revolving Loans consisting
of Base Rate Loans, all without demand, presentment, protest or notice of any
kind, all of which are hereby waived by the Borrower. To the extent the
provisions of the Master Letter of Credit Agreement differ from, or are
inconsistent with, the terms of this Agreement, the provisions of this
Agreement shall govern. The Borrower shall pay the Bank a Letter of Credit Fee
as per the Applicable Margin.

 

2.6.   Taxes.

 

(a)   
All payments made by the Borrower under this Agreement shall be made free and
clear of, and without deduction or withholding for or on account of, any
present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any governmental authority, excluding net
income taxes and franchise taxes (imposed in lieu of net income taxes) imposed
on the Bank as a result of a present or former connection between the Bank and
the jurisdiction of the governmental authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Bank having executed, delivered or
performed its obligations or received a payment under, or enforced, this
Agreement or any other Loan Document). If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (collectively, “Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable to
the Bank hereunder, the amounts so payable to the Bank shall be increased to
the extent necessary to yield to the Bank (after payment of all Non-Excluded
Taxes and Other Taxes) interest or any such other amounts payable hereunder at
the rates or in the amounts specified in this Agreement, provided, however,
that the Borrower shall not be required to increase any such amounts payable to
the Bank with respect to any Non-Excluded Taxes that are attributable to the
Bank’s failure to comply with the requirements of subsection 2.7(c).

 

18

 

(b)   
The Borrower shall pay any Other Taxes to the relevant governmental authority
in accordance with applicable law.

 

(c)   
At the request of the Borrower and at the Borrower’s sole cost, the Bank shall
take reasonable steps to (i) contest its liability for any Non-Excluded
Taxes or Other Taxes that have not been paid, or (ii) seek a refund of any
Non-Excluded Taxes or Other Taxes that have been paid.

 

(d)   
Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as
promptly as possible thereafter the Borrower shall send to the Bank a certified
copy of an original official receipt received by the Borrower showing payment
thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other Taxes
when due to the appropriate taxing authority or fails to remit to the Bank the
required receipts or other required documentary evidence or if any governmental
authority seeks to collect a Non-Excluded Tax or Other Tax directly from the
Bank for any other reason, the Borrower shall indemnify the Bank on an
after-tax basis for any incremental taxes, interest or penalties that may
become payable by the Bank.

 

(e)   
The agreements in this Section shall survive the satisfaction and payment
of the Obligations and the termination of this Agreement.

 

2.7.   All Loans to
Constitute Single Obligation. The Loans shall constitute one general
obligation of the Borrower, and shall be secured by Bank’s priority security
interest in and Lien upon all of the Collateral and by all other security
interests, Liens, claims and encumbrances heretofore, now or at any time or
times hereafter granted by the Borrower and/or any Subsidiary to Bank.

 

19

 

Section 3.   CONDITIONS
OF BORROWING.

 

Notwithstanding any other
provision of this Agreement, the Bank shall not be required to disburse, make
or continue all or any portion of the Loans, if any of the following conditions
shall have occurred.

 

3.1.   Loan
Documents. The Borrower shall have failed to execute and deliver to the
Bank any of the following Loan Documents, all of which must be satisfactory to
the Bank and the Bank’s counsel in form, substance and execution:

 

(a)   
Loan Agreement. Two copies of this Agreement duly executed by the
Borrower.

 

(b)   
Revolving Note. A Revolving Note duly executed by the Borrower, in the
form prepared by and acceptable to the Bank.

 

(c)   
Master Letter of Credit Agreement. A Master Letter of Credit Agreement
prepared by and acceptable to the Bank, duly executed by the Borrower in favor
of the Bank.

 

(d)   
Guaranties. Separate continuing unconditional joint and several
Guaranties executed by each of the Guarantors to and for the benefit of the
Bank.

 

(e)   
Security Agreements. Security Agreements executed by each of the
Guarantors to and for the benefit of the Bank.

 

(f)   
Collateral Access Agreements.   Collateral Access Agreements with
respect to all properties with Stockdale Investment Group, Inc. as the
landlord and commercially reasonable efforts to deliver by Closing a Collateral
Access Agreement with respect to the Borrower’s chief executive offices.

 

(g)   
UCC Financing Statements. UCC Financing Statements which grant to Bank,
upon filing in the appropriate locations, a first perfected security interest
in the Collateral and UCC Financing Statements which grant to Bank, upon filing
in the appropriate locations, a first perfected security interest in certain
collateral, as determined by the Bank, of the Guarantors.

 

(h)   
Search Results; Lien Terminations. Copies of UCC search reports dated
such a date as is reasonably acceptable to the Bank, listing all effective
financing statements which name the Borrower and any of its Subsidiaries   under their present names and any
previous names, as debtors, together with (i) copies of such financing
statements, (ii) payoff letters evidencing repayment in full of all
existing Debt to be repaid with the Loans, the termination of all agreements
relating thereto and the release of all Liens granted in connection therewith,
with UCC or other appropriate termination statements and documents effective to
evidence the foregoing (other than Permitted Liens), (iii) such other UCC
termination statements as the Bank may reasonably request and (iv) copies
of tax lien and pending suit and judgment search reports.

 

20

 

(i)    
Organizational and Authorization Document. Copies of (i) the
Articles of Incorporation and Bylaws  
of the Borrower and each of its Subsidiaries; (ii) resolutions of the
board of directors   of the
Borrower and each of its Subsidiaries approving and authorizing such Person’s
execution, delivery and performance of the Loan Documents to which it is party
and the transactions contemplated thereby; (iii) signature and incumbency
certificates of the officers of the Borrower and each of its Subsidiaries,
executing any of the Loan Documents, each of which the Borrower hereby
certifies to be true and complete, and in full force and effect without
modification, it being understood that the Bank may conclusively rely on each
such document and certificate until formally advised by the Borrower of any
changes therein; and (iv) good standing certificates in the state of
incorporation of the Borrower and each of its Subsidiaries and in each other
state requested by the Bank.

 

(j)     
Closing Fee. The Borrower shall have failed to pay to the Bank the
Closing Fee in the amount of Seventy-Five Thousand   and 00/100 Dollars ($75,000.00) payable at Closing.

 

(k)   
Insurance. Evidence satisfactory to the Bank of the existence of
insurance required to be maintained pursuant to Section 8.6,
together with evidence that the Bank has been named as a lender’s loss payee on
all related insurance policies.

 

(l)    
Opinion of Counsel to the Borrower. An opinion of counsel to the
Borrower in form and substance acceptable to the Bank.

 

(m)  
Payoff Letters. Payoff letters to other lenders of Borrower in form and
substance acceptable to the Bank.

 

(n)   
Additional Documents. Such other certificates, financial statements,
schedules, resolutions, opinions of counsel, notes and other documents which
are provided for hereunder or which the Bank shall require.

 

3.2.   Conditions
Subsequent.

 

(a)   
Pledge Agreements.

 

(i)   
Born Heaters Canada. Borrower shall use its best efforts to deliver as
early as possible and in no event shall deliver no later than four months after
the Closing, a Pledge Agreement executed by Born Heaters Canada in form and
substance acceptable to the Bank wherein Born Heaters Canada pledges its assets
to the Bank.

 

21

 

(ii)   
Foreign Subsidiaries. Borrower shall use its best efforts to deliver as
early as possible and in no event shall deliver later than nine months after
the Closing, Pledge Agreements executed by the Borrower in form and substance
acceptable to the Bank pledging Sixty-Five Percent (65%) of its interest in its
foreign Subsidiaries (excluding ARB ARENDAL) to and for the benefit of the
Bank.

 

(b)   
Local Counsel Opinion. Borrower shall use its best efforts to deliver as
early as possible and in no event shall deliver no later than four months after
the Closing, an opinion of local counsel to Born Heaters Canada in form and
substance acceptable to the Bank.

 

(c)    UCC
Termination Statements. Borrower shall deliver UCC Termination Statements
in form and substance acceptable to the Bank terminating security interests not
permitted hereunder in the Collateral of the Borrower and in collateral of the
Guarantors shall be filed within four weeks of the execution of this Agreement.

 

(d)   
Control Agreements. Should the Borrower fail to utilize the Bank as its
primary bank of account and depository as per Section 8.20 hereof,
then the Borrower shall provide the Bank with Control Agreements with respect
to accounts held at other financial institutions as soon as possible.

 

3.3.   Event of
Default. Any Event of Default, or Unmatured Event of Default shall have
occurred and be continuing.

 

3.4.   Material
Adverse Effect. The occurrence of any event having a Material Adverse
Effect upon the Borrower.

 

3.5.   Litigation.
Any litigation or governmental proceeding shall have been instituted against
the Borrower or any of its officers or shareholders having a Materially Adverse
Effect upon the Borrower.

 

3.6.   Representations
and Warranties. Any representation or warranty of the Borrower contained
herein or in any Loan Document shall be untrue or incorrect as of the date of
any Loan as though made on such date, except to the extent such representation
or warranty expressly relates to an earlier date.

 

Section 4.   NOTES
EVIDENCING LOANS.

 

4.1 Revolving Note.
The Revolving Loans shall be evidenced by the Revolving Note. At the time of
the initial disbursement of a Revolving Loan and at each time any additional
Revolving Loan shall be requested hereunder or a repayment made in whole or in
part thereon, a notation thereof shall be made on the books and records of the
Bank. All amounts recorded shall be, absent manifest error, conclusive and
binding evidence of (i) the principal amount of the Revolving Loans
advanced hereunder and the amount of all Letter of Credit Obligations, (ii) any
accrued and unpaid interest owing on the Revolving Loans, and (iii) all
amounts repaid on the Revolving Loans or the Letter of Credit Obligations. The
failure to record any such amount or any error in recording such amounts shall
not, however, limit or otherwise affect the obligations of the Borrower under
the Revolving Note to repay the principal amount of the Revolving Loans,
together with all interest accruing thereon.

 

22

 

Section 5.   MANNER
OF BORROWING.

 

5.1.   Borrowing
Procedures. Each Revolving Loan  
may be advanced either as a Base Rate Loan or a LIBOR Loan. Each Loan shall be
made available to the Borrower upon any written, verbal, electronic, telephonic
or telecopy loan request which the Bank in good faith believes to emanate from
a properly authorized representative of the Borrower, whether or not that is in
fact the case. Each such request shall be effective upon receipt by the Bank, shall
be irrevocable, and shall specify the date, amount and type of borrowing and,
in the case of a LIBOR Loan, the initial Interest Period therefor. The Borrower
shall select Interest Periods so as not to require a payment or prepayment of
any LIBOR Loan during an Interest Period for such LIBOR Loan. The final
Interest Period must be such that its expiration occurs on or before the
Revolving Loan Maturity Date. A
request for a Base Rate Loan must be received by the Bank no later than 12:00 p.m.
Chicago, Illinois  
time, on the day it is to be funded. A request for a LIBOR Loan must be (i) received
by the Bank no later than 12:00 p.m. Chicago, Illinois time, three
days before the day it is to be funded, and (ii) in an amount equal to One
Hundred Thousand and 00/100 Dollars ($100,000.00) or a higher integral multiple
of One Hundred Thousand and 00/100 Dollars ($100,000.00). The proceeds of each
Loan shall be made available at the office of the Bank by credit to the account
of the Borrower or by other means requested by the Borrower and acceptable to
the Bank. The Borrower does hereby irrevocably confirm, ratify and approve all
such advances by the Bank and does hereby indemnify the Bank against losses and
expenses (including court costs, attorneys’ and paralegals’ fees) and shall
hold the Bank harmless with respect thereto.

 

5.2.   LIBOR
Conversion and Continuation Procedures. Each LIBOR Loan shall automatically
renew for the Interest Period specified in the initial request received by the
Bank pursuant to Section 5.1, at the then current LIBOR Rate unless the
Borrower, pursuant to a subsequent written notice received by the Bank, shall
elect a different Interest Period or the conversion of all or a portion of such
LIBOR Loan to a Base Rate Loan.
Each Interest Period occurring after the initial Interest Period with respect
to any LIBOR Loan shall commence on the same day of each applicable month as
the first day of the initial Interest Period. Whenever the last day of any
Interest Period with respect to any LIBOR Loan would otherwise occur on a day
other than a Business Day, the last day of such Interest Period shall be
extended to occur on the next succeeding Business Day. Whenever an Interest
Period with respect to any LIBOR Loan would otherwise end on a day of a month
for which there is no numerically corresponding day in the calendar month, such
Interest Period shall end on the last day of such calendar month, unless such
day is not a Business Day, in which event such Interest Period shall be
extended to end on the next Business Day.  
Upon receipt by the Bank of such subsequent notice, the Borrower may, subject
to the terms and conditions of this Agreement, elect, as of the last day of the
applicable Interest Period, to continue any LIBOR Loan having an Interest
Period expiring on such day for a different Interest Period, or to convert any
such LIBOR Loan to a Base Rate Loan. Such notice shall, in the case of a
conversion to a Base Rate Loan, be given before 12:00 p.m., Chicago time,
on the proposed date of such conversion, and in the case of conversion to a
LIBOR Loan having a different Interest Period, be given before 12:00 p.m.,
Chicago time, at least three Business Days prior to the proposed date of such
conversion, specifying: (i) the proposed date of conversion; (ii) the
aggregate amount of Loans to be converted; (iii) the type of Loans
resulting from the proposed conversion; and (iv) the duration of the
requested Interest Period. The Borrower may not elect a LIBOR Rate, and an
Interest Period for a LIBOR Loan shall not automatically renew, with respect to
any principal amount which is scheduled to be repaid before the last day of the
applicable Interest Period, and any such amounts shall bear interest at the
Base Rate Rate plus Applicable Margin.

 

23

 

5.3.   Letters of
Credit. All Letters of Credit shall bear such application, issuance,
renewal, negotiation and other fees and charges, and bear such interest as
charged by the Bank or otherwise payable pursuant to the Master Letter of
Credit Agreement. In addition to the foregoing, each standby Letters of Credit
issued under and pursuant to this Agreement shall bear an annual issuance fee
equal to the LIBOR spread of the Applicable Margin based on   the face amount of such standby
Letter of Credit, payable by the Borrower prior to the issuance by the Bank of
such Letter of Credit and annually thereafter, until (i) such Letter of
Credit has expired or has been returned to the Bank, or (ii) the Bank has
paid the beneficiary thereunder the full face amount of such Letter of Credit.

 

5.4.   Automatic
Debit. In order to effectuate the timely payment of any of the Obligations
when due, the Borrower hereby authorizes and directs the Bank, at the Bank’s
option, to (a) debit the amount of the Obligations to any ordinary deposit
account of the Borrower, or (b) make a Revolving Loan hereunder to pay the
amount of the Obligations.

 

5.5.   Discretionary
Disbursements. The Bank, in its sole and absolute discretion, may
immediately upon notice to the Borrower, disburse any or all proceeds of the
Loans made or available to the Borrower pursuant to this Agreement to pay any
fees, costs, expenses or other amounts required to be paid by the Borrower
hereunder and not so paid. All monies so disbursed shall be a part of the
Obligations, payable by the Borrower on demand from the Bank.

 

Section 6.   SECURITY
FOR THE OBLIGATIONS.

 

6.1.   Security for
Obligations. As security for the payment and performance of the
Obligations, the Borrower does hereby pledge, assign, transfer, deliver and
grant to the Bank, for its own benefit and as agent for its Affiliates, a
continuing and unconditional first priority security interest in and to any and
all property of the Borrower, of any kind or description, tangible or
intangible, wheresoever located and whether now existing or hereafter arising
or acquired, including the following (all of which property, along with the
products and proceeds therefrom, are individually and collectively referred to
as the “Collateral”):

 

(a)   
all property of, or for the account of, the Borrower now or hereafter coming
into the possession, control or custody of, or in transit to, the Bank or any
agent or bailee for the Bank or any parent, Affiliate or Subsidiary of the Bank
or any participant with the Bank in the Loans (whether for safekeeping,
deposit, collection, custody, pledge, transmission or otherwise), including all
earnings, dividends, interest, or other rights in connection therewith and the
products and proceeds therefrom, including the proceeds of insurance thereon;
and

 

24

 

(b)  
the additional property of the Borrower, whether now existing or hereafter
arising or acquired, and wherever now or hereafter located, together with all
additions and accessions thereto, substitutions, betterments and replacements
therefor, products and Proceeds therefrom, and all of the Borrower’s books and
records and recorded data relating thereto (regardless of the medium of
recording or storage), together with all of the Borrower’s right, title and
interest in and to all computer software required to utilize, create, maintain
and process any such records or data on electronic media, identified and set
forth as follows:

 

(i)                                     All Accounts and
all Goods whose sale, lease or other disposition by the Borrower has given rise
to Accounts and have been returned to, or repossessed or stopped in transit by,
the Borrower, or rejected or refused by an Account Debtor;

 

(ii)                                  All Inventory,
including raw materials, work-in-process and finished goods;

 

(iii)                               All Goods
(other than Inventory), including embedded software, Equipment (excluding any
Equipment subject to a Permitted Lien), and furniture;

 

(iv)                              Cash;

 

(v)                                 All Software
and computer programs;

 

(vi)                              All Securities, Investment
Property, Financial Assets and Deposit Accounts;

 

(vii)                           All Chattel
Paper, Electronic Chattel Paper, Instruments, Documents, Letter of Credit
Rights, all proceeds of letters of credit, Supporting Obligations, notes
secured by real estate, Commercial Tort Claims and General Intangibles,
including Payment Intangibles;

 

(viii)                        All Hedging
Obligations;

 

(ix)                                All Proceeds
(whether Cash Proceeds or Noncash Proceeds) of the foregoing property,
including all insurance policies and proceeds of insurance payable by reason of
loss or damage to the foregoing property, including unearned premiums, and of
eminent domain or condemnation awards; and

 

25

 

provided, however, that
notwithstanding any of the other provisions set forth in this Section 6,
this Agreement shall not constitute a grant of a security interest in any
property to the extent that such grant of a security interest is prohibited by
an requirements of any law, rule or regulation of a governmental
authority; provided, further, that in no event shall the Collateral include
equity securities in excess of shares or membership interest representing One
Hundred Percent (100%) of the nonvoting stock or membership interests and
Sixty-Five Percent (65%) of the total combined voting power of all classes of
stock or membership interests entitled to vote of any foreign Subsidiary
(excluding ARB ARENDAL), if such action would result in adverse, incremental
tax liabilities under Section 956 of the Internal Revenue Code; provided,
further, that the Collateral shall not include (i) any rights or interest
in any contract, lease, permit, license, charter or license agreement entered
into by Borrower prior to the date of this Agreement and covering personal
property of the Borrower if under the terms of such contract, lease, permit,
license, charter or license agreement, or applicable law with respect thereto,
the valid grant of a security interest or lien therein to the Bank is
prohibited as a matter of law or under the terms of such contract, lease,
permit, license, charter or license agreement and such prohibition has not been
or is not waived or the consent of the other party to such contract, lease,
permit, license, charter or license agreement has not been or is not otherwise
obtained, or (ii) any intent-to-use trademark or service mark application
contained in General Intangibles if granting a security interest would result
in an assignment of such applications to the Bank upon an Event of Default that
would be deemed to invalidate, void, cancel or abandon such applications,
provided that, the foregoing exclusion shall in no way be construed (a) to
apply if any described prohibition is unenforceable under Section 9-406,
9-407 or 9-408 of the UCC or other applicable law, or (b) so as to limit,
impair or otherwise affect the Bank’s continuing security interests in and
liens upon any rights or interests of Borrower in or to monies due or to become
due under any described contract, lease, permit, license, charter or license
agreement (including any Accounts), or (c) to limit, impair or otherwise
affect the Bank’s continuing security interests in and liens upon any rights or
interest of the Borrower in and to any proceeds from the sale, license, lease
or other dispositions of any such contract, lease, permit, license, charter or
license agreement, or stock, or (d) to include any intent-to-use trademark
or service mark applications at such time as the same include an amendment or
allege use or statement of use.

 

(c)   
Sixty-Five Percent (65%) of the Borrower’s interest in its foreign Subsidiaries
(excluding ARB ARENDAL) and up to Sixty-Five Percent (65%) of its interest, at
the Bank’s discretion, in each foreign Subsidiary which Borrower acquires after
the date of this Agreement.

 

6.2.   Other
Collateral. In addition, the Obligations are also secured by the Pledge
Agreements and, to the extent required by the Bank per Section 8.20
and Section 12.5(j) hereof, the Control Agreements.

 

6.3.   Possession
and Transfer of Collateral. Unless an Event of Default exists hereunder,
the Borrower shall be entitled to possession or use of the Collateral (other
than Instruments or Documents, Tangible Chattel Paper, Investment Property
consisting of certificated securities and other Collateral required to be
delivered to the Bank pursuant to this Section 6). The cancellation or
surrender of any Note, upon payment or otherwise, shall not affect the right of
the Bank to retain the Collateral for any other of the Obligations. The Borrower
shall not sell, assign (by operation of law or otherwise), license, lease or
otherwise dispose of, or grant any option with respect to any of the
Collateral, except that the Borrower may sell Inventory in the ordinary course
of business and may sell property, plant and Equipment in the ordinary course
of business.

 

26

 

6.4.   Financing
Statements. The Borrower shall, at the Bank’s request, at any time and from
time to time, execute and deliver to the Bank such financing statements,
amendments and other documents and do such acts as the Bank deems necessary in
order to establish and maintain valid, attached and perfected first priority
security interests in the Collateral in favor of the Bank, free and clear of
all Liens and claims and rights of third parties whatsoever, except Permitted
Liens. The Borrower hereby irrevocably authorizes the Bank at any time, and
from time to time, to file in any jurisdiction any initial financing statements
and amendments thereto without the signature of the Borrower that (a) indicate
the Collateral (i) is comprised of all assets of the Borrower or words of
similar effect, regardless of whether any particular asset comprising a part of
the Collateral falls within the scope of Article 9 of the Uniform
Commercial Code of the jurisdiction wherein such financing statement or
amendment is filed, or (ii) as being of an equal or lesser scope or within
greater detail as the grant of the security interest set forth herein, and (b) contain
any other information required by Section 5 of Article 9 of the
Uniform Commercial Code of the jurisdiction wherein such financing statement or
amendment is filed regarding the sufficiency or filing office acceptance of any
financing statement or amendment, including (i) whether the Borrower is an
organization, the type of organization and any Organizational Identification
Number issued to the Borrower, and (ii) in the case of a financing
statement filed as a fixture filing or indicating Collateral as as-extracted
collateral or timber to be cut, a sufficient description of the real property
to which the Collateral relates. The Borrower hereby agrees that a photocopy or
other reproduction of this Agreement is sufficient for filing as a financing
statement and the Borrower authorizes the Bank to file this Agreement as a
financing statement in any jurisdiction. The Borrower agrees to furnish any
such information to the Bank promptly upon request. The Borrower further
ratifies and affirms its authorization for any financing statements and/or
amendments thereto, executed and filed by the Bank in any jurisdiction prior to
the date of this Agreement. In addition, the Borrower shall make appropriate
entries on its books and records disclosing the Bank’s security interests in
the Collateral.

 

6.5.   Additional
Collateral. The Borrower shall deliver to the Bank immediately upon its
demand, such other collateral as the Bank may from time to time request, should
the value of the Collateral, in the Bank’s sole and absolute discretion,
decline, deteriorate, depreciate or become impaired, and does hereby grant to
the Bank a continuing security interest in such other collateral, which, when
pledged, assigned and transferred to the Bank shall be and become part of the Collateral.
The Bank’s security interests in all of the foregoing Collateral shall be
valid, complete and perfected whether or not covered by a specific assignment.

 

27

 

6.6.   Preservation
of the Collateral. The Bank may, but is not required, to take such actions
from time to time as the Bank deems appropriate to maintain or protect the
Collateral. The Bank shall have exercised reasonable care in the custody and
preservation of the Collateral if the Bank takes such action as the Borrower
shall reasonably request in writing which is not inconsistent with the Bank’s
status as a secured party, but the failure of the Bank to comply with any such
request shall not be deemed a failure to exercise reasonable care; provided,
however, the Bank’s responsibility for the safekeeping of the Collateral shall (i) be
deemed reasonable if such Collateral is accorded treatment substantially equal
to that which the Bank accords its own property, and (ii) not extend to
matters beyond the control of the Bank, including acts of God, war,
insurrection, riot or governmental actions. In addition, any failure of the
Bank to preserve or protect any rights with respect to the Collateral against
prior or third parties, or to do any act with respect to preservation of the
Collateral, not so requested by the Borrower, shall not be deemed a failure to
exercise reasonable care in the custody or preservation of the Collateral. The
Borrower shall have the sole responsibility for taking such action as may be
necessary, from time to time, to preserve all rights of the Borrower and the
Bank in the Collateral against prior or third parties. Without limiting the
generality of the foregoing, where Collateral consists in whole or in part of
securities, the Borrower represents to, and covenants with, the Bank that the
Borrower has made arrangements for keeping informed of changes or potential
changes affecting the securities (including rights to convert or subscribe,
payment of dividends, reorganization or other exchanges, tender offers and
voting rights), and the Borrower agrees that the Bank shall have no
responsibility or liability for informing the Borrower of any such or other
changes or potential changes or for taking any action or omitting to take any action
with respect thereto.

 

6.7.   Other Actions
as to any and all Collateral.  
The Borrower further agrees to take any other action reasonably requested by
the Bank to ensure the attachment, perfection and first priority of, and the
ability of the Bank to enforce, the Bank’s security interest in any and all of
the Collateral, including (a) causing the Bank’s name to be noted as
secured party on any certificate of title for a titled good if such notation is
a condition to attachment, perfection or priority of, or ability of the bank to
enforce, the Bank’s security interest in such Collateral, (b) complying
with any provision of any statute, regulation or treaty of the United States as
to any Collateral if compliance with such provision is a condition to attachment,
perfection or priority of, or ability of the Bank to enforce, the Bank’s
security interest in such Collateral, (c) obtaining governmental and other
third party consents and approvals, including any consent of any licensor,
lessor or other Person obligated on Collateral, (d) obtaining waivers from
mortgagees and landlords in form and substance acceptable to the Bank, and (e) taking
all actions required by the UCC in effect from time to time or by other law, as
applicable in any relevant UCC jurisdiction, or by other law as applicable in
any foreign jurisdiction. The Borrower further agrees to indemnify and hold the
Bank harmless against claims of any Persons not a party to this Agreement
concerning disputes arising over the Collateral.

 

6.8.   Commercial
Tort Claims. If the Borrower shall at any time hold or acquire a Commercial
Tort Claim, the Borrower shall immediately notify the Bank in writing signed by
the Borrower of the details thereof and grant to the Bank in such writing a
security interest therein and in the proceeds thereof, all upon the terms of
this Agreement, in each case in form and substance acceptable to the Bank, and
shall execute any amendments hereto deemed reasonably necessary by the Bank to
perfect its security interest in such Commercial Tort Claim.

 

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6.9.   Electronic
Chattel Paper and Transferable Records. If the Borrower at any time holds
or acquires an interest in any electronic chattel paper or any “transferable
record”, as that term is defined in Section 201 of the federal Electronic
Signatures in Global and National Commerce Act, or in Section 16 of the
Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
the Borrower shall promptly notify the Bank thereof and, at the request of the
Bank, shall take such action as the Bank may reasonably request to vest in the
Bank control under Section 9-105 of the UCC of such electronic chattel
paper or control under Section 201 of the federal Electronic Signatures in
Global and National Commerce Act or, as the case may be, Section 16 of the
Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
such transferable record. The Bank agrees with the Borrower that the Bank will
arrange, pursuant to procedures satisfactory to the Bank and so long as such
procedures will not result in the Bank’s loss of control, for the Borrower to
make alterations to the electronic chattel paper or transferable record
permitted under Section 9-105 of the UCC or, as the case may be, Section 201
of the federal Electronic Signatures in Global and National Commerce Act or Section 16
of the Uniform Electronic Transactions Act for a party in control to make
without loss of control.

 

Section 7.   REPRESENTATIONS
AND WARRANTIES.

 

To induce the Bank to make
the Loans, the Borrower makes the following representations and warranties to
the Bank, each of which shall survive the execution and delivery of this
Agreement:

 

7.1.   Borrower
Organization and Name. The Borrower is a corporation   duly organized, existing and in good
standing under the laws of the State of Nevada, with full and adequate power to
carry on and conduct its business as presently conducted   and each Subsidiary is validly
existing and in good standing under the laws of the jurisdiction of its
organization. The Borrower and each Subsidiary is duly licensed or qualified in
all foreign jurisdictions wherein the nature of its activities require such
qualification or licensing, except for such jurisdictions where the failure to
so qualify would not have a Material Adverse Effect. The Borrower’s
Organizational Identification Number is C28746-2003. The exact legal name of
the Borrower is as set forth in the first paragraph of this Agreement, and the
Borrower currently does not conduct, nor has it during the last five (5) years
conducted, business under any other name or trade name other than ARB, Inc.

 

7.2.   Authorization.
The Borrower has full right, power and authority to enter into this Agreement,
to make the borrowings and execute and deliver the Loan Documents as provided
herein and to perform all of its duties and obligations under this Agreement
and the other Loan Documents. The execution and delivery of this Agreement and
the other Loan Documents will not, nor will the observance or performance of
any of the matters and things herein or therein set forth, violate or
contravene any provision of law or of the articles of incorporation or bylaws   of the Borrower. All necessary and
appropriate action has been taken on the part of the Borrower to authorize the
execution and delivery of this Agreement and the Loan Documents.

 

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7.3.   Validity and
Binding Nature. This Agreement and the other Loan Documents are the legal,
valid and binding obligations of the Borrower, enforceable against the Borrower
in accordance with their terms, subject to bankruptcy, insolvency and similar
laws affecting the enforceability of creditors’ rights generally and to general
principles of equity.

 

7.4.   Consent;
Absence of Breach. The execution, delivery and performance of this
Agreement, the other Loan Documents and any other documents or instruments to
be executed and delivered by the Borrower in connection with the Loans, and the
borrowings by the Borrower hereunder, do not and will not (a) require any
consent, approval, authorization of, or filings with, notice to or other act by
or in respect of, any governmental authority or any other Person (other than
any consent or approval which has been obtained and is in full force and
effect); (b) conflict with (i) any provision of law or any applicable
regulation, order, writ, injunction or decree of any court or governmental
authority, (ii) the articles of incorporation or bylaws   of the Borrower   or any of its Subsidiaries, or (iii) any material
agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding upon the Borrower or any of its Subsidiaries or any of
their respective properties or assets; or (c) require, or result in, the
creation or imposition of any Lien on any asset of Borrower   or any of its Subsidiaries, other
than Liens in favor of the Bank created pursuant to this Agreement.

 

7.5.   Ownership of
Properties; Liens. The Borrower is the sole owner of   all of its properties and assets,
real and personal, tangible and intangible, of any nature whatsoever (including
patents, trademarks, trade names, service marks and copyrights), free and clear
of all Liens, charges and claims (including infringement claims with respect to
patents, trademarks, service marks, copyrights and the like), other than
Permitted Liens.

 

7.6.   Equity
Ownership. All issued and outstanding Capital Securities   of the Borrower and each of its
Subsidiaries are duly authorized and validly issued, fully paid,
non-assessable, and free and clear of all Liens other than those in favor of
the Bank, if any, and such securities were issued in compliance with all
applicable state and federal laws concerning the issuance of securities. As of
the date hereof, except as set forth on Schedule 7.6 hereto, there are
no pre-emptive or other outstanding rights, options, warrants, conversion
rights or other similar agreements or understandings for the purchase or
acquisition of any Capital Securities  
of the Borrower and each of its Subsidiaries.

 

7.7.   Intellectual
Property. The Borrower owns and possesses or has a license or other right
to use all Intellectual Property, as are necessary for the conduct of the
businesses of the Borrower, without any infringement upon rights of others
which could reasonably be expected to have a Material Adverse Effect upon the
Borrower, and no material claim has been asserted and is pending by any Person
challenging or questioning the use of any Intellectual Property or the validity
or effectiveness of any Intellectual Property nor does the Borrower know of any
valid basis for any such claim.

 

7.8.   Financial
Statements. All financial statements submitted to the Bank have been
prepared in accordance with sound accounting practices and GAAP on a basis,
except as otherwise noted therein, consistent with the previous fiscal year and
present fairly the financial condition of the Borrower and the results of the
operations for the Borrower as of such date and for the periods indicated.
Since the date of the most recent financial statement submitted by the Borrower
to the Bank, there has been no change in the financial condition or in the
assets or liabilities of the Borrower having a Material Adverse Effect on the Borrower.

 

30

 

7.9.   Litigation
and Other Liabilities. There is no litigation, arbitration proceeding,
demand, charge, claim, petition or governmental investigation or proceeding
pending, or threatened, against the Borrower, which, if adversely determined,
which might reasonably be expected to have a Material Adverse Effect upon the
Borrower, except as set forth in Schedule 7.9. Other than any liability
incident to such litigation or proceedings, the Borrower has no Material
guarantee obligations, contingent liabilities, liabilities for taxes, or any
long-term leases or unusual forward or long-term commitments, including any
interest rate or foreign currency swap or exchange transaction or other
obligation in respect of derivatives, that are not fully-reflected or fully
reserved for in the most recent audited financial statements delivered pursuant
to subsection 8.8(a) or fully-reflected or fully reserved for in the most
recent quarterly financial statements delivered pursuant to subsection 8.8(b) and
not permitted by Section 9.1.

 

7.10.   Event of
Default. No Event of Default or Unmatured Event of Default exists or would
result from the incurrence by the Borrower of any of the Obligations hereunder
or under any of the other Loan Document, and the Borrower is not in default
(without regard to grace or cure periods) under any other contract or agreement
to which it is a party.

 

7.11.   Adverse
Circumstances. No condition, circumstance, event, agreement, document, instrument,
restriction, litigation or proceeding (or threatened litigation or proceeding
or basis therefor) exists which (a) would have a Material Adverse Effect
upon the Borrower, or (b) would constitute an Event of Default or an
Unmatured Event of Default.

 

7.12.   Environmental
Laws and Hazardous Substances. The Borrower has not generated, used,
stored, treated, transported, manufactured, handled, produced or disposed of
any Hazardous Substances, on or off any of the premises of the Borrower
(whether or not owned by it) in any manner which at any time violates in any
Material respect any Environmental Law or any license, permit, certificate,
approval or similar authorization thereunder. The Borrower will comply in all
Material respects with all Environmental Laws and will obtain all Material
licenses, permits certificates, approvals and similar authorizations
thereunder. To Borrower’s knowledge, there has been no investigation,
proceeding, complaint, order, directive, claim, citation or notice by any governmental
authority or any other Person, nor is any pending or, to the best of the
Borrower’s knowledge, threatened, and the Borrower shall immediately notify the
Bank upon becoming aware of any such investigation, proceeding, complaint,
order, directive, claim, citation or notice, and shall take prompt and
appropriate actions to respond thereto, with respect to any Material
non-compliance with, or violation of, the requirements of any Environmental Law
by the Borrower or the release, spill or discharge, threatened or actual, of
any Hazardous Material or the generation, use, storage, treatment,
transportation, manufacture, handling, production or disposal of any Hazardous
Material or any other environmental, health or safety matter against the
Borrower or its business, operations or assets or, to the Borrower’s knowledge,
any properties at which the Borrower has transported, stored or disposed of any
Hazardous Substances. The Borrower has no Material liability, contingent or
otherwise, in connection with a release, spill or discharge, threatened or
actual, of any Hazardous Substances or the generation, use, storage, treatment,
transportation, manufacture, handling, production or disposal of any Hazardous
Material. Upon reasonable prior notice from the Bank, the Borrower further
agrees to allow the Bank or its agent access to the properties of the Borrower
and its Subsidiaries to confirm compliance with all Environmental Laws, and the
Borrower shall, following determination by the Bank that there is Material non-compliance,
or any condition which requires any action by or on behalf of the Borrower in
order to avoid any Material non-compliance, with any Environmental Law, at the
Borrower’s sole expense, cause an independent environmental engineer acceptable
to the Bank to conduct such tests of the relevant site as are appropriate, and
prepare and deliver a report setting forth the result of such tests, a proposed
plan for remediation and an estimate of the costs thereof.

 

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7.13.   Solvency,
etc. As of the date hereof, and immediately prior to and after giving
effect to the issuance of each Letter of Credit and each Loan hereunder and the
use of the proceeds thereof, (a) the fair value of the Borrower’s assets is
greater than the amount of its liabilities (including disputed, contingent and
unliquidated liabilities) as such value is established and liabilities
evaluated as required under the Section 548 of the Bankruptcy Code, (b) the
present fair saleable value of the Borrower’s assets is not less than the
amount that will be required to pay the probable liability on its debts as they
become absolute and matured, (c) the Borrower is able to realize upon its
assets and pay its debts and other liabilities (including disputed, contingent
and unliquidated liabilities) as they mature in the normal course of business,
(d) the Borrower does not intend to, and does not believe that it will, incur
debts or liabilities beyond its ability to pay as such debts and liabilities
mature, and (e) the Borrower is not engaged in business or a transaction, and
is not about to engage in business or a transaction, for which its property
would constitute unreasonably small capital.

 

7.14.   ERISA
Obligations. All Employee Plans of the Borrower meet the minimum funding
standards of Section 302 of ERISA and 412 of the Internal Revenue Code where
applicable, and each such Employee Plan that is intended to be qualified within
the meaning of Section 401 of the Internal Revenue Code of 1986 is qualified. No
withdrawal liability has been incurred under any such Employee Plans and no “Reportable
Event” or “Prohibited Transaction” (as such terms are defined in ERISA), has
occurred with respect to any such Employee Plans, unless approved by the
appropriate governmental agencies. The Borrower has promptly paid and
discharged all obligations and liabilities arising under the Employee
Retirement Income Security Act of 1974 (“ERISA”) of a character which if unpaid
or unperformed might result in the imposition of a Lien against any of its
properties or assets.

 

7.15.   Labor
Relations. Except as could not reasonably be expected to have a Material
Adverse Effect, (i) there are no strikes, lockouts or other labor disputes
against the Borrower or  
threatened, (ii) hours worked by and payment made to employees of the Borrower
have not been in violation of the Fair Labor Standards Act or any other
applicable law, and (ii) no unfair labor practice complaint is pending against
the Borrower or threatened before any governmental authority.

 

32

 

7.16.   Security
Interest. This Agreement creates a valid security interest in favor of the
Bank in the Collateral and, when properly perfected by filing in the
appropriate jurisdictions, or by possession or Control of such Collateral by
the Bank or delivery of such Collateral to the Bank, shall constitute a valid,
perfected, first-priority security interest in such Collateral.

 

7.17.   Lending
Relationship. The relationship hereby created between the Borrower and the
Bank is and has been conducted on an open and arm’s length basis in which no
fiduciary relationship exists, and the Borrower has not relied and is not
relying on any such fiduciary relationship in executing this Agreement and in
consummating the Loans. The Bank represents that it will receive any Note
payable to its order as evidence of a bank loan.

 

7.18.   Business
Loan. The Loans, including interest rate, fees and charges as contemplated
hereby, (i) are business loans within the purview of 815 ILCS 205/4(1)(c), as
amended from time to time, (ii) are an exempted transaction under the Truth In
Lending Act, 12 U.S.C. 1601 et   seq., as amended from time
to time, and (iii) do not, and when disbursed shall not, violate the provisions
of the Illinois usury laws, any consumer credit laws or the usury laws of any
state which may have jurisdiction over this transaction, the Borrower or any
property securing the Loans.

 

7.19.   Taxes.
The Borrower has timely filed all Material tax returns and reports required by
law to have been filed by it and has paid all Material taxes, governmental
charges and assessments due and payable with respect to such returns, except
any such taxes or charges which are being diligently contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP
shall have been set aside on its books, are insured against or bonded over to
the satisfaction of the Bank and the contesting of such payment does not create
a Lien on the Collateral which is not a Permitted Lien. There is no controversy
or objection pending, or, threatened in respect of any tax returns of the
Borrower. The Borrower has made adequate reserves on its books and records in
accordance with GAAP for all taxes that have accrued but which are not yet due
and payable.

 

7.20.   Compliance
with Regulation U. No portion of the proceeds of the Loans shall be used by
the Borrower, or any Affiliate of the Borrower, either directly or indirectly,
for the purpose of purchasing or carrying any margin stock, within the meaning
of Regulation U as adopted by the Board of Governors of the Federal Reserve
System or any successor thereto.

 

7.21.   Governmental
Regulation. The Borrower, its
Subsidiaries and any of the Guarantors are  
not, or after giving effect to any loan, will not be, subject to regulation
under the Public Utility Holding Company Act of 1935, the Federal Power Act,
the ICC Termination Act of 1995 or the Investment Company Act of 1940 or to any
federal or state statute or regulation limiting its ability to incur
indebtedness for borrowed money.

 

7.22.   Bank
Accounts. Other than as allowed pursuant to Section 9.3(d) hereof
and Section 9.3(h) hereof and except for the bank accounts held at Union
Bank for a period not longer than four months after the Closing, all Deposit
Accounts and operating bank accounts of the Borrower and its Subsidiaries are
located at the Bank.

 

33

 

7.23.   Place of
Business. The principal place of business and books and records of the
Borrower is set forth in the preamble to this Agreement and the other
permanently occupied locations where the Borrower and its Subsidiaries conduct
business, other than at such principal place of business, is as set forth on Schedule
7.23 attached hereto and made a part hereof, and the Borrower shall
promptly notify the Bank of any change in such locations. Upon reasonable
request by the Bank, the Borrower shall provide the Bank with a list of
locations of Collateral.

 

7.24.   Complete
Information. This Agreement and all financial statements, schedules,
certificates, confirmations, agreements, contracts, and other materials and
information heretofore or contemporaneously herewith furnished in writing by
the Borrower to the Bank for purposes of, or in connection with, this Agreement
and the transactions contemplated hereby is, and all written information
hereafter furnished by or on behalf of the Borrower to the Bank pursuant hereto
or in connection herewith will be, true and accurate in every material respect
on the date as of which such information is dated or certified, and none of
such information is or will be incomplete by omitting to state any material
fact necessary to make such information not misleading in light of the
circumstances under which made (it being recognized by the Bank that any
projections and forecasts provided by the Borrower are based on good faith
estimates and assumptions believed by the Borrower to be reasonable as of the
date of the applicable projections or assumptions and that actual results
during the period or periods covered by any such projections and forecasts may
differ from projected or forecasted results).

 

7.25.   Subordinated
Debt. The subordination provisions of the Subordinated Debt are enforceable
against the holders of the Subordinated Debt by the Bank. The Obligations
constitute Senior Debt entitled to the benefits of the subordination provisions
contained in the Subordinated Debt. The Borrower acknowledges that the Bank is
entering into this Agreement and is making the Loans in reliance upon the
subordination provisions of the Subordinated Debt and this Section 7.25.

 

7.26.   Guarantors.
  Every domestic Subsidiary of the Borrower is a Guarantor and has
executed a Guaranty in favor of the Bank.

 

7.27.   Ownership of
Foreign Subsidiaries.   Subject to Section 7.28 hereof, the
Borrower is the holder of at least Sixty-Five Percent (65%) of the issued and
outstanding equity interests of its foreign Subsidiaries.

 

7.28.   Ownership of
ARB ARENDAL. The Borrower is the holder of Forty-Nine Percent (49%) of the
issued and outstanding equity interests of ARB ARENDAL.

 

Section 8.   AFFIRMATIVE
COVENANTS.

 

8.1.   Compliance
with Bank Regulatory Requirements; Increased Costs. If the Bank shall
reasonably determine that any Regulatory Change, or compliance by the Bank or
any Person controlling the Bank with any request or directive (whether or not
having the force of law) of any governmental authority, central bank or
comparable agency has or would have the effect of reducing the rate of return
on the Bank’s or such controlling Person’s capital as a consequence of the Bank’s
obligations hereunder or under any Letter of Credit to a level below that which
the Bank or such controlling Person could have achieved but for such Regulatory
Change or compliance (taking into consideration the Bank’s or such controlling
Person’s policies with respect to capital adequacy) by an amount deemed by the
Bank or such controlling Person to be material or would otherwise reduce the
amount of any sum received or receivable by the Bank under this Agreement or
under any Note with respect thereto, then from time to time, upon demand by the
Bank (which demand shall be accompanied by a statement setting forth the basis
for such demand and a calculation of the amount thereof in reasonable detail),
the Borrower shall pay directly to the Bank or such controlling Person such
additional amount as will compensate the Bank for such increased cost or such
reduction, so long as such amounts have accrued on or after the day which is
one hundred eighty days (180) days prior to the date on which the Bank first
made demand therefor.

 

34

 

8.2.   Borrower
Existence. The Borrower shall and shall cause each of its Subsidiaries to
at all times (a) preserve and maintain its existence and good standing in the
jurisdiction of its organization, (b) preserve and maintain its qualification
to do business and good standing in each jurisdiction where the nature of its
business makes such qualification necessary (other than such jurisdictions in
which the failure to be qualified or in good standing could not reasonably be
expected to have a Material Adverse Effect), and (c) continue as a going
concern in the business which the Borrower is presently conducting. If the
Borrower does not have an Organizational Identification Number and later
obtains one, the Borrower shall promptly notify the Bank of such Organizational
Identification Number.

 

8.3.   Compliance
With Laws. The Borrower shall use the proceeds of the Loans for working
capital and other general corporate or business purposes not in contravention
of any requirements of law and not in violation of this Agreement, and shall
comply, and cause each Subsidiary to comply, in all respects, including the
conduct of its business and operations and the use of its properties and
assets, with all applicable laws, rules, regulations, decrees, orders,
judgments, licenses and permits, except where failure to comply could not
reasonably be expected to have a Material Adverse Effect. In addition, and
without limiting the foregoing sentence, the Borrower shall (a) ensure, and
cause each Subsidiary to ensure, that no person who owns a controlling interest
in or otherwise controls the Borrower or any Subsidiary is or shall be listed
on the Specially Designated Nationals and Blocked Person List or other similar
lists maintained by the Office of Foreign Assets Control (“OFAC”), the
Department of the Treasury or included in any Executive Orders, (b) not use or
permit the use of the proceeds of the Loans to violate any of the foreign asset
control regulations of OFAC or any enabling statute or Executive Order relating
thereto, and (c) comply, and cause each Subsidiary to comply, with all
applicable Bank Secrecy Act (“BSA”) laws and regulations, as amended.

 

8.4.   Payment of
Taxes and Liabilities. The Borrower shall pay, and cause each Subsidiary to
pay, and discharge, prior to delinquency and before penalties accrue thereon, all
Material property and other taxes, and all Material governmental charges or
levies against it or any of the Collateral, as well as claims of any kind
which, if unpaid, could become a Lien on any of its property; provided that the
foregoing shall not require the Borrower or any Subsidiary to pay any such tax
or charge so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall set aside on its books adequate reserves with
respect thereto in accordance with GAAP and, in the case of a claim which could
become a Lien on any of the Collateral, such contest proceedings stay the
foreclosure of such Lien or the sale of any portion of the Collateral to
satisfy such claim.

 

35

 

8.5.   Maintain
Property. The Borrower shall and shall cause each of its Subsidiaries to at
all times maintain, preserve and keep its plant, properties and Equipment,
including any Collateral, in good repair, working order and condition, normal
wear and tear excepted, and shall from time to time make all needful and proper
repairs, renewals, replacements, and additions thereto so that at all times the
efficiency thereof shall be fully preserved and maintained. The Borrower shall
permit the Bank to examine and inspect such plant, properties and Equipment,
including any Collateral, at all reasonable times subject to Section 8.12
hereof.

 

8.6.   Maintain
Insurance. The Borrower shall at all times maintain, and cause each Subsidiary to maintain, with insurance companies reasonably
acceptable to the Bank, such insurance coverage as may be required by any law
or governmental regulation or court decree or order applicable to it and such
other insurance as is customarily maintained by companies similarly situated. The
Borrower shall furnish to the Bank a certificate setting forth in reasonable
detail the nature and extent of all insurance maintained by the Borrower, which
shall be reasonably acceptable in all respects to the Bank. The Borrower shall
cause each issuer of an insurance policy to provide the Bank with an
endorsement (i) showing the Bank as lender’s loss payee with respect to each
policy of property or casualty insurance; and (ii) providing that thirty (30)
days notice will be given to the Bank prior to any cancellation of, material
reduction or change in coverage provided by or other material modification to
such policy. The Borrower shall provide the Bank with an endorsement showing
the Bank as lender’s loss payee on any business interruption insurance policy
maintained by the Borrower.

 

In the event the Borrower
either fails to provide the Bank with evidence of the insurance coverage
required by this Section or at any time hereafter shall fail to obtain or
maintain any of the policies of insurance required above, or to pay any premium
in whole or in part relating thereto, then the Bank, without waiving or
releasing any obligation or default by the Borrower hereunder, may at any time
(but shall be under no obligation to so act), obtain and maintain such policies
of insurance and pay such premiums and take any other action with respect
thereto, which the Bank deems advisable. This insurance coverage (a) may, but
need not, protect the Borrower’s interests in such property, including the
Collateral, and (b) may not pay any claim made by, or against, the Borrower in
connection with such property, including the Collateral. The Borrower may later
cancel any such insurance purchased by the Bank, but only after providing the
Bank with evidence that the Borrower has obtained the insurance coverage
required by this Section. If the Bank purchases insurance for the Collateral,
the Borrower will be responsible for the costs of that insurance, including
interest and any other charges that may be imposed with the placement of the
insurance, until the effective date of the cancellation or expiration of the
insurance. The costs of the insurance may be added to the principal amount of
the Loans owing hereunder. The costs of the insurance may be more than the cost
of the insurance the Borrower may be able to obtain on its own.

 

36

 

8.7.   ERISA
Liabilities; Employee Plans. The Borrower shall (i) keep in full force and
effect any and all Employee Plans which are presently in existence or may, from
time to time, come into existence under ERISA, and not withdraw from any such
Employee Plans, unless such withdrawal can be effected or such Employee Plans
can be terminated without liability to the Borrower; (ii) make contributions to
all of such Employee Plans in a timely manner and in a sufficient amount to
comply with the standards of ERISA; including the minimum funding standards of
ERISA; (iii) comply with all material requirements of ERISA which relate to
such Employee Plans; (iv) notify the Bank immediately upon receipt by the
Borrower of any notice concerning the imposition of any withdrawal liability or
of the institution of any proceeding or other action which may result in the
termination of any such Employee Plans or the appointment of a trustee to
administer such Employee Plans; (v) promptly advise the Bank of the occurrence
of any “Reportable Event” or “Prohibited Transaction” (as such terms are
defined in ERISA), with respect to any such Employee Plans; and (vi) amend any
Employee Plan that is intended to be qualified within the meaning of Section
401 of the Internal Revenue Code of 1986 to the extent necessary to keep the
Employee Plan qualified, and to cause the Employee Plan to be administered and
operated in a manner that does not cause the Employee Plan to lose its
qualified status.

 

8.8.   Financial
Statements. The Borrower shall at all times maintain a standard and modern
system of accounting, on the accrual basis of accounting and in all respects in
accordance with GAAP, and shall furnish to the Bank or its authorized
representatives such information regarding the business affairs, operations and
financial condition of the Borrower, including:

 

(a)   
promptly when available, and in any event, within one hundred twenty (120) days
after the close of each of its fiscal years, a copy of (i) the annual audited
consolidated and consolidating financial statements of the Borrower and its
Subsidiaries, including balance sheet, statement of income and retained
earnings, statement of cash flows for the fiscal year then ended, work in
process reports, accounts receivable agings, accounts payable agings (if
available), summary of litigation and claims, financial forecast and budget and
updates thereto and such other information (including nonfinancial information)
as the Bank may request, in reasonable detail, prepared and certified without
adverse reference to going concern value and without qualification by an
independent auditor of recognized standing, selected by the Borrower and reasonably
acceptable to the Bank;

 

(b)   
promptly when available, and in any event, within forty-five (45) days
following the end of each fiscal quarter, a copy of the management prepared
consolidated and consolidating financial statements of the Borrower and its
Subsidiaries regarding such fiscal quarter, including balance sheet, statement
of income and retained earnings, statement of cash flows for the fiscal quarter
then ended, work in process reports, accounts receivable aging reports, summary
of litigation and claims and such other information (including nonfinancial
information) as the Bank may request, in reasonable detail, prepared and
certified as true and correct by the Borrower’s treasurer or chief financial
officer.

 

37

 

(c)   
within ten (10) days after the filing due date (as such date may be extended in
accordance with properly granted extensions) each year, a signed copy of the
complete income tax returns filed with the Internal Revenue Service by the
Borrower.

 

No change with respect to
such accounting principles shall be made by the Borrower without giving prior
notification to the Bank. The Borrower represents and warrants to the Bank that
the financial statements delivered to the Bank at or prior to the execution and
delivery of this Agreement and to be delivered at all times thereafter
accurately reflect and will accurately reflect the financial condition of the
Borrower. The Bank shall have the right at all times during business hours to
inspect the books and records of the Borrower and make extracts therefrom.

 

8.9.   Guarantor
Financial Statements. The Borrower shall furnish, or cause to be furnished,
to the Bank or its authorized representatives such information regarding the
business affairs, operations and financial condition of each Guarantor,
including within ten (10) days after the filing due date (as such date may be
extended in accordance with properly granted extensions) each year, a signed
copy of the complete income tax returns filed with the Internal Revenue Service
by the Borrower.

 

The Borrower represents and
warrants to the Bank that (i) each Guarantor shall at all times maintain a
standard and modern system of accounting, on the accrual basis of accounting
and in all respects in accordance with GAAP, (ii) no change with respect to
such accounting principles shall be made by each Guarantor without giving prior
notification to the Bank, (iii) the financial statements of each Guarantor
delivered to the Bank at or prior to the execution and delivery of this
Agreement and to be delivered at all times thereafter accurately reflect and
will fairly and accurately reflect the financial condition of each Guarantor,
(iv) the Bank shall have the right at all times during business hours to inspect
the books and records of each Guarantor and make extracts therefrom, and (v)
the Borrower agrees to advise the Bank immediately of any development,
condition or event that may have a Material Adverse Effect on each Guarantor.

 

8.10.   Supplemental
Financial Statements. The Borrower shall immediately upon receipt thereof,
provide to the Bank copies of interim and supplemental reports if any,
submitted to the Borrower by independent accountants in connection with any
interim audit or review of the books of the Borrower.

 

8.11.   Covenant
Compliance Certificate. The Borrower shall, contemporaneously with the
furnishing of the quarterly financial statements pursuant to Section 8.8(b),
deliver to the Bank a duly completed compliance certificate, dated the date of
such financial statements and certified as true and correct by an appropriate
officer of the Borrower, containing a computation of each of the financial
covenants set forth in Section 10 and stating that the Borrower has not
become aware of any Event of Default or Unmatured Event of Default that has
occurred and is continuing or, if there is any such Event of Default or
Unmatured Event of Default describing it and the steps, if any, being taken to
cure it.

 

8.12.   Field Audits.
The Borrower shall permit the Bank to inspect the Inventory, other Tangible
Assets and/or other business operations of the Borrower and each Subsidiary, to
perform appraisals of the Equipment of the Borrower and each Subsidiary, and to
inspect, audit, check and make copies of, and extracts from, the books,
records, computer data, computer programs, journals, orders, receipts,
correspondence and other data relating to Inventory, Accounts and any other
Collateral, the results of which must be satisfactory to the Bank in the Bank’s
sole and absolute discretion. All such inspections or audits by the Bank shall
be at the Borrower’s sole expense,
provided, however, that so long as no Event of Default or Unmatured Event of
Default exists, the Borrower shall not be required   to reimburse the Bank for inspections or audits more
frequently than once each fiscal year.

 

38

 

8.13.   Other
Reports. The Borrower shall, within such period of time as the Bank may
specify, deliver to the Bank such other schedules and reports as the Bank may
require.

 

8.14.   Collateral
Records. The Borrower shall keep full and accurate books and records
relating to the Collateral and shall mark such books and records to indicate
the Bank’s Lien in the Collateral, including placing a legend, in form and
content acceptable to the Bank, on all Chattel Paper created by the Borrower
indicating that the Bank has a Lien in such Chattel Paper.

 

8.15.   Intellectual
Property. The Borrower shall maintain, preserve and renew all Intellectual
Property necessary for the conduct of its business as and where the same is
currently located as heretofore or as hereafter conducted by it.

 

8.16.   Notice of
Proceedings. The Borrower, promptly upon becoming aware, shall give written
notice to the Bank of any litigation, arbitration or governmental investigation
or proceeding not previously disclosed by the Borrower to the Bank which has
been instituted or, to the knowledge of the Borrower, is threatened against the
Borrower or any of its Subsidiaries or to which any of   their respective properties is
subject which might reasonably be expected to have a Material Adverse Effect.

 

8.17.   Notice of
Event of Default or Material Adverse Effect. The Borrower shall,
immediately after the commencement thereof, give notice to the Bank in writing
of the occurrence of any Event of Default or any Unmatured Event of Default, or
the occurrence of any condition or event having a Material Adverse Effect.

 

8.18.   Environmental
Matters. If any Material release or threatened release or other disposal of
Hazardous Substances shall occur or shall have occurred on any real property or
any other assets of the Borrower or any of its Subsidiaries, the Borrower shall, or shall cause the applicable Subsidiary
to, cause the prompt containment
and removal of such Hazardous Substances and the remediation of such real
property or other assets as necessary to comply in all Material respects with
all Environmental Laws and to preserve the value of such real property or other
assets. Without limiting the generality of the foregoing, the Borrower shall,
and shall cause each Subsidiary to, comply in all Material respects with any
Federal or state judicial or administrative order requiring the performance at
any real property of the Borrower or any Subsidiary   of activities in response to the release or threatened
release of a Hazardous Substance. To the extent that the transportation of
Hazardous Substances is permitted by this Agreement, the Borrower shall, and
shall cause its Subsidiaries to, dispose of such Hazardous Substances, or of
any other wastes, only at licensed disposal facilities operating in Material
compliance with Environmental Laws.

 

39

 

8.19.   Further
Assurances. The Borrower shall take, and cause each Subsidiary to take,
such actions as are necessary or as the Bank may reasonably request from time
to time to ensure that the Obligations under the Loan Documents are secured by
substantially all of the assets of the Borrower   and its Subsidiaries, in each case as the Bank may
determine, including (a) the execution and delivery of security agreements,
pledge agreements, mortgages, deeds of trust, financing statements and other
documents, and the filing or recording of any of the foregoing, and (b) the
delivery of certificated securities and other collateral with respect to which
perfection is obtained by possession.

 

8.20.   Banking
Relationship. Except for payroll accounts, Cash Equivalent Investments
permitted by Section 9.3 hereof and certain other accounts held at other
banking institutions not to exceed an aggregate amount of Two Hundred Thousand
and 00/100 Dollars ($200,000.00), the Borrower covenants and agrees that as of
four months after the Closing it shall utilize the Bank as its primary bank of
account and depository for all financial services, including all receipts,
disbursements, cash management and related services.

 

8.21.   Payroll
Accounts. The Borrower covenants and agrees that it shall not keep funds on
deposit in its payroll account beyond what is necessary to fund one payroll
period at a time.

 

8.22.   Cash
Equivalent Investments. The Borrower covenants and agrees that the first
Five Million and 00/100 Dollars ($5,000,000.00) of Cash Equivalent Investments
Borrower has shall be held at the Bank.

 

8.23.   Proceeds of
Asset Sales. Subject to the restrictions for Permitted Liens, any proceeds
from the sale of assets must be paid to the Bank to reduce the outstanding
Revolving Credit Loan.

 

8.24.   Domestic Subsidiaries.
The Borrower covenants and agrees that it shall cause any and each domestic
Subsidiary it acquires after the date of this Agreement to execute a Guaranty.

 

8.25.   Foreign
Subsidiaries.   Subject to Section 3.2 hereof, the Borrower
covenants and agrees that it shall execute Pledge Agreements in form and
substance acceptable to the Bank pledging up to Sixty-Five Percent (65%) of its
interest to the Bank in its foreign subsidiaries (excluding ARB ARENDAL) and
further covenants and agrees that it shall execute a Pledge Agreement in form
and substance acceptable to the Bank, at the Bank’s discretion, pledging up to
Sixty-Five Percent (65%) of its interest to the Bank in each foreign Subsidiary
it acquires after the date of this Agreement. Subject to Section 3.2
hereof, Borrower further covenants and agrees that it shall cause Born Heaters
Canada to execute a Pledge Agreement in form and substance acceptable to the
Bank wherein Born Heaters Canada pledges its assets to the Bank.

 

40

 

Section 9.   NEGATIVE
COVENANTS.

 

9.1.   Debt.
Except as permitted by Section 9.3 hereof, the Borrower shall not,
either directly or indirectly, create, assume, incur or have outstanding any
Debt (including purchase money indebtedness), or become liable, whether as
endorser, guarantor, surety or otherwise, for any debt or obligation of any
other Person, except:

 

(a)   
the Obligations under this Agreement and the other Loan Documents;

 

(b)   
obligations pursuant to Permitted Liens;

 

(c)   
obligations of the Borrower for Taxes, assessments, municipal or other
governmental charges;

 

(d)   
obligations of the Borrower for accounts payable, other than for money
borrowed, incurred in the ordinary course of business;

 

(e)   
Hedging Obligations incurred in favor of the Bank or an Affiliate thereof for
bona fide hedging purposes and not for speculation;

 

(f)    
Debt described on Schedule 9.1 and any extension, renewal or refinancing
thereof subject to the prior written approval of the Bank;

 

(g)   
other unsecured Debt, in addition to the Debt listed above, in an aggregate
amount outstanding at any time not to exceed One Million and 00/100 Dollars
($1,000,000.00);

 

(h)   
Debt for Capital Expenditures subject to the limitations set forth in Section
10.4 hereof; and

 

(i)    
Subordinated Debt in an amount outstanding at any time not to exceed Five
Million and 00/100 Dollars ($5,000,000.00) on terms acceptable to the Bank.

 

9.2.   Encumbrances.
Except as set forth on Schedule 9.2 hereof, the Borrower shall not,
either directly or indirectly, create, assume, incur or suffer or permit to
exist any Lien or charge of any kind or character upon any asset of the
Borrower, whether owned at the date hereof or hereafter acquired, except for
Permitted Liens.

 

9.3.   Investments.
The Borrower shall not, either directly or indirectly, make or have outstanding
any Investment, except:

 

(a)   
contributions by the Borrower to the capital of any Subsidiary or Guarantor
which has granted a first perfected security interest in all of its assets in
favor of the Bank, or by any Subsidiary to the capital of any other domestic
Wholly-Owned Subsidiary;

 

(b)   
Investments constituting Debt permitted by Section 9.1;

 

41

 

(c)   
Cash Equivalent Investments with the first Five Million and 00/100 Dollars
($5,000,000.00) Borrower has to be held at the Bank;

 

(d)   
Payroll accounts and certain other accounts held at other banking institutions
not to exceed an aggregate amount of Two Hundred Thousand and 00/100 Dollars
($200,000.00);

 

(e)   
Investments in securities of Account Debtors received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
account debtors;

 

(f)   
Investments in any Subsidiary, Affiliate or third party entity, which is not
either (a) Born Heaters Canada or (b) a Guarantor, shall be limited to an
aggregate amount of Twelve Million and 00/100 Dollars ($12,000,000.00) as
reported on the balance sheet of the Borrower. For purposes of this Section
9.3(f), Section 9.3(g) and Section 9.3(h) hereof, investments
shall include accounts receivable, loans, guarantees, letters of credit or any
contingent liability used to support obligations, equity investments or advances;

 

(g)  
Using the definition of investments set forth in Section 9.3(f) hereof,
investments in Born Heaters Canada (subject to the pledge of the assets of Born
Heaters Canada to the Bank per Section 3.2(a)(i) hereof) or any
Guarantor.

 

(h)   
Subject to the aggregate limitations set forth in Section 9.3(f) hereof
and using the definition of investments set forth in Section 9.3(f)
hereof, investments in ARB ECUADOR shall be limited to Six Million and 00/100
Dollars ($6,000,000.00); investments, in ARB ARENDAL shall be limited to Eight
Million and 00/100 Dollars ($8,000,000.00); and investments in any new foreign
entity created after the Closing shall be limited to Five Million and 00/100
Dollars ($5,000,000.00);

 

(i)    
Excess Cash to be invested in instruments rated at least A-l by Standard &
Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or P-l
by Moody’s Investors Service, Inc.; and

 

(j)    
Advances and/or loans to employees or shareholders up to Five Hundred Thousand
and 00/100 Dollars ($500,000.00).

 

provided, however, that (i)
any Investment which when made complies with the requirements of the definition
of the term “Cash Equivalent Investment” may continue to be held
notwithstanding that such Investment if made thereafter would not comply with
such requirements; and (ii) no Investment otherwise permitted by subsections
(b) or (c) shall be permitted to be made if, immediately before or after giving
effect thereto, any Event of Default or Unmatured Event of Default exists. If
any Event of Default or Unmatured Event of Default exists, then the Borrower
must return Excess Cash invested pursuant to Section 9.3(i) to the Bank
at the request of the Bank.

 

42

 

9.4.   Transfer;
Merger; Sales. Excluding the pledge of assets of Born Heaters Canada to the
Bank of Montreal for a period of no longer than four months after the Closing
and excluding the pledge of certain assets to secure certain letters of credit
issued on behalf of Born Heaters Canada to other banks, the Borrower shall not
and not permit any Subsidiary to without the prior written consent of the Bank,
whether in one transaction or a series of related transactions, (a) be a party
to any merger or consolidation, or purchase or otherwise acquire all or
substantially all of the assets or any Capital Securities of any class of, or
any partnership or joint venture interest in, any other Person, except for (i)
any such merger, consolidation, sale, transfer, conveyance, lease or assignment
of or by any Wholly-Owned Subsidiary into the Borrower or into any other
domestic Wholly-Owned Subsidiary; (ii) any such purchase or other acquisition
by the Borrower or any domestic Wholly-Owned Subsidiary of the assets or equity
interests of any Wholly-Owned Subsidiary, (b) except as permitted by Section
6.3 hereof, sell, transfer, convey or lease all or any substantial part of
its assets or Capital Securities (including the sale of Capital Securities of
any Subsidiary), except for sales of Inventory in the ordinary course of
business, or (c) sell or assign, with or without recourse, any receivables.

 

9.5.   Issuance of
Capital Securities. The Borrower shall not and shall not permit any
Subsidiary to issue any Capital Securities other than, so long as a Change of
Control has not occurred, (a) any issuance of shares in the ordinary course of
business, or (b) any issuance of shares of the Borrower’s common Capital
Securities pursuant to any employee or director option program, benefit plan or
compensation program, or (c) any issuance of Capital Securities by a Subsidiary
to the Borrower or another Subsidiary in accordance with Section 9.6.

 

9.6.   Distributions.
So long as no Event of Default or Unmatured Event of Default exists or would
result therefrom, the Borrower and any of its Subsidiaries may (a) make
distributions of dividends including stock dividends, whether in cash or
otherwise, to any of its equityholders, (b) purchase or redeem any of its
equity interests or any warrants, options or other rights in respect thereof,
(c) pay any management fees or similar fees to any of its equityholders or any
Affiliate thereof, (d) pay or prepay interest on, principal of, premium, if
any, redemption, conversion, exchange, purchase, retirement, defeasance, sinking
fund or any other payment in respect of any Subordinated Debt, or (e) set aside
funds for any of the foregoing.

 

9.7.   Transactions
with Affiliates. The Borrower shall not, directly or indirectly, enter into
or permit to exist any transaction with any of its Affiliates or with any
director, officer or employee of the Borrower other than transactions in the
ordinary course of, and pursuant to the reasonable requirements of, the
business of the Borrower and upon fair and reasonable terms which are fully
disclosed to the Bank and are no less favorable to the Borrower than would be
obtained in a comparable arm’s length transaction with a Person that is not an
Affiliate of the Borrower.

 

9.8.   Unconditional
Purchase Obligations. The Borrower shall not and shall not permit any
Subsidiary   to enter into or
be a party to any contract for the purchase of materials, supplies or other
property or services if such contract requires that payment be made by it
regardless of whether delivery is ever made of such materials, supplies or
other property or services.

 

43

 

9.9.   Cancellation
of Debt. The Borrower shall not, and not permit any Subsidiary to, cancel
any claim or debt owing to it, except for reasonable consideration or in the
ordinary course of business.

 

9.10.   Inconsistent
Agreements. The Borrower shall not and shall not permit any Subsidiary to
enter into any agreement containing any provision which would (a) be violated
or breached by any borrowing by the Borrower hereunder or by the performance by
the Borrower or any Subsidiary of any of its Obligations hereunder or under any
other Loan Document, (b) prohibit the Borrower or any Subsidiary from granting
to the Bank a Lien on any of its assets or (c) create or permit to exist or
become effective any encumbrance or restriction on the ability of any
Subsidiary to (i) pay dividends or make other distributions to the Borrower or
any other Subsidiary, or pay any Debt owed to the Borrower or any other
Subsidiary, (ii) make loans or advances to the Borrower or any other
Subsidiary, or (iii) transfer any of its assets or properties to the Borrower
or any other Subsidiary, other than (A) customary restrictions and conditions
contained in agreements relating to the sale of all or a substantial part of
the assets of any Subsidiary pending such sale, provided that such restrictions
and conditions apply only to the Subsidiary to be sold and such sale is
permitted hereunder, (B) restrictions or conditions imposed by any agreement
relating to purchase money Debt, Capital Leases and other secured Debt
permitted by this Agreement if such restrictions or conditions apply only to
the property or assets securing such Debt, and (C) customary provisions in
leases and other contracts restricting the assignment thereof.

 

9.11.   Use of
Proceeds. Neither the Borrower nor any of its Subsidiaries or Affiliates
shall use any portion of the proceeds of the Loans, either directly or
indirectly, for the purpose of purchasing any securities underwritten by ABN
AMRO Incorporated, LaSalle Bank Financial Services, Inc., or any other
Affiliate of the Bank.

 

9.12.   Business
Activities; Change of Legal Status and Organizational Documents. The
Borrower shall not and shall not permit any Subsidiary to (a) engage in any
line of business other than the businesses engaged in on the date hereof and
businesses reasonably related thereto, (b) change its name, its Organizational
Identification Number, if it has one, its type of organization, its jurisdiction
of organization or other legal structure, or (b) permit its charter, bylaws or
other organizational documents to be amended or modified in any way which could
reasonably be expected to materially adversely affect the interests of the
Bank.

 

9.13.   Domestic
Subsidiaries. Except as permitted pursuant to Section 9.4, the Borrower
shall not sell, liquidate or dissolve any domestic Subsidiary without the prior
written consent of the Bank.

 

9.14.   Foreign
Subsidiaries.   Except as permitted pursuant to Section 9.4, the
Borrower shall not sell, liquidate or dissolve any foreign Subsidiary without
the prior written consent of the Bank. The Borrower shall not pledge any of its
interest in its foreign Subsidiaries to any Person other than the Bank.

 

44

 

9.15.   Permitted
Liens. The Borrower shall not incur any second lien against any Permitted
Lien.

 

Section 10.   FINANCIAL
COVENANTS.

 

10.1.   Tangible Net
Worth. As of the end of each of its fiscal quarters, the Borrower shall
maintain Tangible Net Worth in an amount not less than Thirty Million and
00/100 Dollars ($30,000,000.00). The Tangible Net Worth shall be reset annually
commencing with the Fiscal Year ending December 31, 2007 to increase by
Twenty-Five Percent (25%) of the prior Fiscal Year’s Net Income. Investments in
any Subsidiary, Affiliate and third party entity, which is not either (a) Born
Heaters Canada or (b) a Guarantor, in excess of Ten Million Dollars and 00/100
($10,000,000.00) shall be deducted from Tangible Net Worth.

 

10.2.   Total Debt
   to Tangible Net Worth.
As of the end of each of its fiscal quarters, the Borrower shall maintain a
ratio of Total Debt to  
Tangible Net Worth of not greater than 1.75 to 1.00.

 

10.3.   Debt Service
Coverage. On a rolling four quarter basis, the Borrower shall maintain a
ratio of (a) pre-tax income from the Borrower’s operations for such period plus
Interest Charges for such period, plus the amount of noncash charges for
Depreciation for such period, to (b) Interest Charges for such period plus
the aggregate amount of principal payments on Debt for such period, of not less
than 1.25 to 1.00.

 

10.4.   Capital
Expenditure Limitations. The Borrower shall not incur Capital Expenditures
in an amount greater than Five Million and 00/100 Dollars ($5,000,000.00) in
the aggregate in any one Fiscal Year. The Borrower shall be allowed to rollover
up to One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) of
unused Capital Expenditure limitations from the prior Fiscal Year into the
following Fiscal Year provided that Borrower shall not incur Capital
Expenditures in excess of Six Million Five Hundred Thousand and 00/100
($6,500,000.00) in any one Fiscal Year. Notwithstanding the foregoing, the
Borrower shall be permitted to incur additional Capital Expenditures in excess
of the permitted amount as set forth herein for Fiscal Years 2007 and 2008 in
the total amount of Three Million and 00/100 Dollars ($3,000,000.00) for the
purchase of specialized pipeline equipment.

 

Section 11.   EVENTS
OF DEFAULT.

 

The Borrower, without notice
or demand of any kind, shall be in default under this Agreement upon the
occurrence of any of the following events (each an “Event of Default”).

 

11.1.   Nonpayment
of Obligations. Any principal amount due and owing on any Note or any of
the Obligations, whether by its terms or as otherwise provided herein, is not
paid when due and any interest due and owing on any Note is not paid within
five days after it is due.

 

45

 

11.2.   Misrepresentation.
Any oral or written warranty, representation, certificate or statement of any
Obligor in this Agreement, the other Loan Documents or any other agreement with
the Bank shall be false when made or at any time thereafter, or if any
financial data or any other information now or hereafter furnished to the Bank
by or on behalf of any Obligor shall prove to be false, inaccurate or
misleading in any material respect.

 

11.3.   Nonperformance.
Other than default for nonpayment of Obligations as set forth in Section
11.1 hereof, any failure to perform or default in the performance of any
covenant, condition or agreement contained in this Agreement, or in the other
Loan Documents or any other agreement with the Bank and such failure to perform
or default in the performance continues for 15 days.

 

11.4.   Default
under Loan Documents. Other than default for nonpayment of Obligations as
set forth in Section 11.1 hereof, a default under any of the other Loan
Documents, all of which covenants, conditions and agreements contained therein
are hereby incorporated in this Agreement by express reference, shall be and
constitute an Event of Default under this Agreement and any other of the
Obligations and such default under any of the Loan Documents continues for 15
days.

 

11.5.   Default
under Other Debt. Any default by any Obligor in the payment of any Debt in
excess of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) for any
other obligation beyond any period of grace provided with respect thereto or in
the performance of any other term, condition or covenant contained in any
agreement (including any capital or operating lease or any agreement in
connection with the deferred purchase price of property) under which any such
obligation is created, the effect of which default is to cause or permit the
holder of such obligation (or the other party to such other agreement) to cause
such obligation to become due prior to its stated maturity or terminate such
other agreement.

 

11.6.   Other
Material Obligations. Any default in the payment when due, or in the
performance or observance of, any material obligation of, or condition agreed
to by, any Obligor with respect to any material purchase or lease of goods or
services where such default, singly or in the aggregate with all other such
defaults, might reasonably be expected to have a Material Adverse Effect.

 

11.7.   Bankruptcy,
Insolvency, etc. Any Obligor becomes insolvent or generally fails to pay,
or admits in writing its inability or refusal to pay, debts as they become due;
or any Obligor applies for, consents to, or acquiesces in the appointment of a
trustee, receiver or other custodian for such Obligor or any property thereof,
or makes a general assignment for the benefit of creditors; or, in the absence
of such application, consent or acquiescence, a trustee, receiver or other
custodian is appointed for any Obligor or for a substantial part of the
property of any thereof and is not discharged within sixty (60) days; or any
bankruptcy, reorganization, debt arrangement, or other case or proceeding under
any bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is commenced in respect of any Obligor, and if such case or proceeding is not
commenced by such Obligor, it is consented to or acquiesced in by such Obligor,
or remains undismissed for sixty (60) days; or any Obligor takes any action to
authorize, or in furtherance of, any of the foregoing.

 

46

 

11.8.   Judgments.
The entry of any final judgment, decree, levy, attachment, garnishment or other
process in excess of Two Hundred Fifty Thousand and 00/100 Dollars
($250,000.00), or the filing of any Lien in excess of Two Hundred Fifty
Thousand and 00/100 Dollars ($250,000.00) against any Obligor which is not
fully covered by insurance, and such judgment or other process shall not have
been, within thirty (30) days from the entry thereof, (i) bonded over to the
satisfaction of the Bank and appealed, (ii) vacated, or (iii) discharged.

 

11.9.   Change in
Control. The occurrence of any Change in Control.

 

11.10.   Collateral
Impairment. The entry of any judgment, decree, levy, attachment,
garnishment or other process, or the filing of any Lien against, any Material
portion of the Collateral or any Material portion of any other collateral under
a separate security agreement securing any of the Obligations and such judgment
or other process shall not have been, within thirty (30) days from the entry
thereof, (i) bonded over to the satisfaction of the Bank and appealed, (ii)
vacated, or (iii) discharged, or the loss, theft, destruction, seizure or
forfeiture, or the occurrence of any Material deterioration or impairment of
any of the Collateral or any of the collateral under any security agreement
securing any of the Obligations, or any Material decline or depreciation in the
value or market price thereof (whether actual or reasonably anticipated), which
causes the Collateral, in the sole opinion of the Bank acting in good faith, to
become unsatisfactory as to value or character, or which causes the Bank to
reasonably believe that it is insecure and that the likelihood for repayment of
the Obligations is or will soon be impaired, time being of the essence. The
cause of such deterioration, impairment, decline or depreciation shall include,
but is not limited to, the failure by the Borrower to do any act deemed
necessary by the Bank to preserve and maintain the value and collectability of
the Collateral.

 

11.11.   Material
Adverse Effect. The occurrence of any development, condition or event which
has a Material Adverse Effect on the Borrower.

 

11.12.   Guaranty.
There is a discontinuance by any of the Guarantors of any of the Guaranties, or
any of the Guarantors shall contest the validity of such Guaranty.

 

11.13.   Subordinated
Debt. The subordination provisions of any Subordinated Debt shall for any
reason be revoked or invalid or otherwise cease to be in full force and effect.
The Borrower shall contest in any manner, or any other holder thereof shall
contest in any judicial proceeding, the validity or enforceability of the
Subordinated Debt or deny that it has any further liability or obligation
thereunder, or the Obligations shall for any reason not have the priority contemplated
by the subordination provisions of the Subordinated Debt.

 

47

 

Section 12.   REMEDIES.

 

Upon the occurrence of an
Event of Default, the Bank shall have all rights, powers and remedies set forth
in the Loan Documents, in any written agreement or instrument (other than this
Agreement or the Loan Documents) relating to any of the Obligations or any
security therefor, as a secured party under the UCC or as otherwise provided at
law or in equity. Without limiting the generality of the foregoing, the Bank
may, at its option upon the occurrence of an Event of Default, declare its
commitments to the Borrower to be terminated and all Obligations to be
immediately due and payable, provided, however, that upon the occurrence of an
Event of Default under Section 11.7, all commitments of the Bank to the
Borrower shall immediately terminate and all Obligations shall be automatically
due and payable, all without demand, notice or further action of any kind
required on the part of the Bank. The Borrower hereby waives any and all
presentment, demand, notice of dishonor, protest, and all other notices and
demands in connection with the enforcement of Bank’s rights under the Loan
Documents, and hereby consents to, and waives notice of release, with or
without consideration, of any of the Borrower or any of the Guarantors or of
any Collateral, notwithstanding anything contained herein or in the Loan
Documents to the contrary. In addition to the foregoing:

 

12.1.   Possession
and Assembly of Collateral. The Bank may, without notice, demand or legal
process of any kind, take possession of any or all of the Collateral (in
addition to Collateral of which the Bank already has possession), wherever it
may be found, and for that purpose may pursue the same wherever it may be
found, and may at any time enter into any of the Borrower’s premises where any
of the Collateral may be or is supposed to be, and search for, take possession
of, remove, keep and store any of the Collateral until the same shall be sold
or otherwise disposed of and the Bank shall have the right to store and conduct
a sale of the same in any of the Borrower’s premises without cost to the Bank.
At the Bank’s request, the Borrower will, at the Borrower’s sole expense,
assemble the Collateral and make it available to the Bank at a place or places
to be designated by the Bank which is reasonably convenient to the Bank and the
Borrower.

 

12.2.   Sale of
Collateral. The Bank may sell any or all of the Collateral at public or
private sale, upon such terms and conditions as the Bank may deem proper, and
the Bank may purchase any or all of the Collateral at any such sale. The
Borrower acknowledges that the Bank may be unable to effect a public sale of
all or any portion of the Collateral because of certain legal and/or practical
restrictions and provisions which may be applicable to the Collateral and,
therefore, may be compelled to resort to one or more private sales to a
restricted group of offerees and purchasers. The Borrower consents to any such
private sale so made even though at places and upon terms less favorable than
if the Collateral were sold at public sale. The Bank shall have no obligation
to clean-up or otherwise prepare the Collateral for sale. The Bank may apply
the net proceeds, after deducting all costs, expenses, attorneys’ and
paralegals’ fees incurred or paid at any time in the collection, protection and
sale of the Collateral and the Obligations, to the payment of any Note and/or
any of the other Obligations, returning the excess proceeds, if any, to the
Borrower. The Borrower shall remain liable for any amount remaining unpaid
after such application, with interest at the Default Rate. Any notification of
intended disposition of the Collateral required by law shall be conclusively
deemed reasonably and properly given if given by the Bank at least ten (10)
calendar days before the date of such disposition. The Borrower hereby
confirms, approves and ratifies all acts and deeds of the Bank relating to the
foregoing, and each part thereof, and expressly waives any and all claims of
any nature, kind or description which it has or may hereafter have against the
Bank or its representatives, by reason of taking, selling or collecting any
portion of the Collateral. The Borrower consents to releases of the Collateral
at any time (including prior to default) and to sales of the Collateral in
groups, parcels or portions, or as an entirety, as the Bank shall deem
appropriate. The Borrower expressly absolves the Bank from any loss or decline
in market value of any Collateral by reason of delay in the enforcement or
assertion or nonenforcement of any rights or remedies under this Agreement.

 

48

 

12.3.   Standards
for Exercising Remedies.  
To the extent that applicable law imposes duties on the Bank to exercise
remedies in a commercially reasonable manner, the Borrower acknowledges and
agrees that it is not commercially unreasonable for the Bank (a) to fail to
incur expenses reasonably deemed significant by the Bank to prepare Collateral
for disposition or otherwise to complete raw material or work-in-process into
finished goods or other finished products for disposition, (b) to fail to
obtain third party consents for access to Collateral to be disposed of, or to
obtain or, if not required by other law, to fail to obtain governmental or
third party consents for the collection or disposition of Collateral to be
collected or disposed of, (c) to fail to exercise collection remedies against
Account Debtors or other Persons obligated on Collateral or to remove liens or
encumbrances on or any adverse claims against Collateral, (d) to exercise
collection remedies against Account Debtors and other Persons obligated on
Collateral directly or through the use of collection agencies and other
collection specialists, (e) to advertise dispositions of Collateral through
publications or media of general circulation, whether or not the Collateral is
of a specialized nature, (f) to contact other Persons, whether or not in the
same business as the Borrower, for expressions of interest in acquiring all or
any portion of the Collateral, (g) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the collateral is of
a specialized nature, (h) to dispose of Collateral by utilizing internet sites
that provide for the auction of assets of the types included in the Collateral
or that have the reasonable capability of doing so, or that match buyers and
sellers of assets, (i) to dispose of assets in wholesale rather than retail
markets, (j) to disclaim disposition warranties, including any warranties of
title, (k) to purchase insurance or credit enhancements to insure the Bank
against risks of loss, collection or disposition of Collateral or to provide to
the Bank a guaranteed return from the collection or disposition of Collateral,
or (l) to the extent deemed appropriate by the Bank, to obtain the services of
other brokers, investment bankers, consultants and other professionals to
assist the Bank in the collection or disposition of any of the Collateral. The
Borrower acknowledges that the purpose of this section is to provide
non-exhaustive indications of what actions or omissions by the Bank would not
be commercially unreasonable in the Bank’s exercise of remedies against the
Collateral and that other actions or omissions by the Bank shall not be deemed
commercially unreasonable solely on account of not being indicated in this
section. Without limitation upon the foregoing, nothing contained in this
section shall be construed to grant any rights to the Borrower or to impose any
duties on the Bank that would not have been granted or imposed by this
Agreement or by applicable law in the absence of this section.

 

12.4.   UCC and
Offset Rights. The Bank may exercise, from time to time, any and all rights
and remedies available to it under the UCC or under any other applicable law in
addition to, and not in lieu of, any rights and remedies expressly granted in
this Agreement or in any other agreements between any Obligor and the Bank, and
may, without demand or notice of any kind, appropriate and apply toward the
payment of such of the Obligations, whether matured or unmatured, including
costs of collection and attorneys’ and paralegals’ fees, and in such order of
application as the Bank may, from time to time, elect, any indebtedness of the
Bank to any Obligor, however created or arising, including balances, credits,
deposits, accounts or moneys of such Obligor in the possession, control or
custody of, or in transit to the Bank. The Borrower, on behalf of itself and
each Obligor, hereby waives the benefit of any law that would otherwise
restrict or limit the Bank in the exercise of its right, which is hereby
acknowledged, to appropriate at any time hereafter any such indebtedness owing
from the Bank to any Obligor.

 

49

 

12.5.   Additional
Remedies. The Bank shall have the right and power to:

 

(a)   
instruct the Borrower, at its own expense, to notify any parties obligated on
any of the Collateral, including any Account Debtors, to make payment directly
to the Bank of any amounts due or to become due thereunder, or the Bank may
directly notify such obligors of the security interest of the Bank, and/or of
the assignment to the Bank of the Collateral and direct such obligors to make
payment to the Bank of any amounts due or to become due with respect thereto,
and thereafter, collect any such amounts due on the Collateral directly from
such Persons obligated thereon;

 

(b)  
enforce collection of any of the Collateral, including any Accounts, by suit or
otherwise, or make any compromise or settlement with respect to any of the
Collateral, or surrender, release or exchange all or any part thereof, or
compromise, extend or renew for any period (whether or not longer than the
original period) any indebtedness thereunder;

 

(c)   
take possession or control of any proceeds and products of any of the
Collateral, including the proceeds of insurance thereon;

 

(d)  
extend, renew or modify for one or more periods (whether or not longer than the
original period) any Note, any other of the Obligations, any obligation of any
nature of any other obligor with respect to any Note or any of the Obligations;

 

(e)   
grant releases, compromises or indulgences with respect to any Note, any of the
Obligations, any extension or renewal of any of the Obligations, any security
therefor, or to any other obligor with respect to any Note or any of the Obligations;

 

(f)   
transfer the whole or any part of securities which may constitute Collateral
into the name of the Bank or the Bank’s nominee without disclosing, if the Bank
so desires, that such securities so transferred are subject to the security
interest of the Bank, and any corporation, association, or any of the managers
or trustees of any trust issuing any of such securities, or any transfer agent,
shall not be bound to inquire, in the event that the Bank or such nominee makes
any further transfer of such securities, or any portion thereof, as to whether
the Bank or such nominee has the right to make such further transfer, and shall
not be liable for transferring the same;

 

50

 

(g)   
vote the Collateral;

 

(h)  
make an election with respect to the Collateral under Section 1111 of the
Bankruptcy Code or take action under Section 364 or any other section of the
Bankruptcy Code; provided, however, that any such action of the Bank as set
forth herein shall not, in any manner whatsoever, impair or affect the
liability of the Borrower hereunder, nor prejudice, waive, nor be construed to
impair, affect, prejudice or waive the Bank’s rights and remedies at law, in
equity or by statute, nor release, discharge, nor be construed to release or
discharge, the Borrower, any guarantor or other Person liable to the Bank for
the Obligations;

 

(i)   
at any time, and from time to time, accept additions to, releases, reductions,
exchanges or substitution of the Collateral, without in any way altering,
impairing, diminishing or affecting the provisions of this Agreement, the Loan
Documents, or any of the other Obligations, or the Bank’s rights hereunder,
under any Note or under any of the other Obligations; and

 

(j)    
advise the Borrower whether to deposit cash as necessary into the Borrower’s
account at the Bank or whether to execute, within ten business days of such
Event of Default or Unmatured Event of Default, Control Agreements(s) with
respect to Cash Equivalent Investments.

 

The Borrower hereby ratifies
and confirms whatever the Bank may do with respect to the Collateral and agrees
that the Bank shall not be liable for any error of judgment or mistakes of fact
or law with respect to actions taken in connection with the Collateral.

 

12.6.   Attorney-in-Fact.
Upon the occurrence and during the continuation of an Event of Default, the
Borrower hereby irrevocably makes, constitutes and appoints the Bank (and any
officer of the Bank or any Person designated by the Bank for that purpose) as
the Borrower’s true and lawful proxy and attorney-in-fact (and agent-in-fact)
in the Borrower’s name, place and stead, with full power of substitution, to
(i) take such actions as are permitted in this Agreement, (ii) execute such
financing statements and other documents and to do such other acts as the Bank
may require to perfect and preserve the Bank’s security interest in, and to
enforce such interests in the Collateral, and (iii) carry out any remedy
provided for in this Agreement, including endorsing the Borrower’s name to
checks, drafts, instruments and other items of payment, and proceeds of the
Collateral, executing change of address forms with the postmaster of the United
States Post Office serving the address of the Borrower, changing the address of
the Borrower to that of the Bank, opening all envelopes addressed to the
Borrower and applying any payments contained therein to the Obligations. The
Borrower hereby acknowledges that the constitution and appointment of such
proxy and attorney-in-fact are coupled with an interest and are irrevocable.
The Borrower hereby ratifies and confirms all that such attorney-in-fact may do
or cause to be done by virtue of any provision of this Agreement.

 

12.7.   No
Marshaling. The Bank shall not be required to marshal any present or future
collateral security (including this Agreement and the Collateral) for, or other
assurances of payment of, the Obligations or any of them or to resort to such
collateral security or other assurances of payment in any particular order. To
the extent that it lawfully may, the Borrower hereby agrees that it will not
invoke any law relating to the marshaling of collateral which might cause delay
in or impede the enforcement of the Bank’s rights under this Agreement or under
any other instrument creating or evidencing any of the Obligations or under
which any of the Obligations is outstanding or by which any of the Obligations
is secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, the Borrower hereby irrevocably waives the benefits of all such
laws.

 

51

 

12.8.   Application
of Proceeds. The Bank will within three (3) Business Days after receipt of
cash or solvent credits from collection of items of payment, proceeds of
Collateral or any other source, apply the whole or any part thereof against the
Obligations secured hereby. The Bank shall further have the exclusive right to
determine how, when and what application of such payments and such credits
shall be made on the Obligations, and such determination shall be conclusive
upon the Borrower. Any proceeds of any disposition by the Bank of all or any
part of the Collateral may be first applied by the Bank to the payment of
expenses incurred by the Bank in connection with the Collateral, including
attorneys’ fees and legal expenses as provided for in Section 13 hereof.

 

12.9.   No Waiver.
No Event of Default shall be waived by the Bank except in writing. No failure
or delay on the part of the Bank in exercising any right, power or remedy
hereunder shall operate as a waiver of the exercise of the same or any other
right at any other time; nor shall any single or partial exercise of any such
right, power or remedy preclude any other or further exercise thereof or the
exercise of any other right, power or remedy hereunder. There shall be no
obligation on the part of the Bank to exercise any remedy available to the Bank
in any order. The remedies provided for herein are cumulative and not exclusive
of any remedies provided at law or in equity. The Borrower agrees that in the
event that the Borrower fails to perform, observe or discharge any of its
Obligations or liabilities under this Agreement or any other agreements with
the Bank, no remedy of law will provide adequate relief to the Bank, and
further agrees that the Bank shall be entitled to temporary and permanent
injunctive relief in any such case without the necessity of proving actual
damages.

 

12.10.   Letters of
Credit. With respect to all Letters of Credit for which presentment for
honor shall not have occurred at the time of an acceleration pursuant to this Section
12, the Borrower shall at such time deposit in a cash collateral account opened
by the Bank an amount equal to the Letter of Credit Obligations then
outstanding. Amounts held in such cash collateral account shall be applied by
the Bank to the payment of drafts drawn under such Letters of Credit, and the
unused portion thereof after all such Letters of Credit shall have expired or
been fully drawn upon, if any, shall be applied to repay the Obligations, in
such order of application as the Bank may, in its sole discretion, from time to
time elect. After all such Letters of Credit shall have expired or been fully
drawn upon, all commitments to make Loans hereunder have terminated and all
other Obligations have been indefeasibly satisfied and paid in full in cash,
the balance, if any, in such cash collateral account shall be returned to the
Borrower or such other Person as may be lawfully entitled thereto.

 

52

 

Section 13.   MISCELLANEOUS.

 

13.1.   Obligations
Absolute. None of the following shall affect the Obligations of the
Borrower to the Bank under this Agreement or the Bank’s rights with respect to
the Collateral:

 

(a)   
acceptance or retention by the Bank of other property or any interest in property
as security for the Obligations;

 

(b)   
release by the Bank of any of the Borrower or the Guarantors or of all or any
part of the Collateral or of any party liable with respect to the Obligations;

 

(c)   
release, extension, renewal, modification or substitution by the Bank of any
Note, or any note evidencing any of the Obligations, or the compromise of the
liability of any of the Guarantors of the Obligations; or

 

(d)   
failure of the Bank to resort to any other security or to pursue the Borrower
or any other obligor liable for any of the Obligations before resorting to
remedies against the Collateral.

 

13.2.   Entire
Agreement. This Agreement and the other Loan Documents (i) are valid,
binding and enforceable against the Borrower and the Bank in accordance with
their respective provisions and no conditions exist as to their legal
effectiveness; (ii) constitute the entire agreement between the parties with
respect to the subject matter hereof and thereof; and (iii) are the final
expression of the intentions of the Borrower and the Bank. No promises, either
expressed or implied, exist between the Borrower and the Bank, unless contained
herein or therein. This Agreement, together with the other Loan Documents,
supersedes all negotiations, representations, warranties, commitments, term
sheets, discussions, negotiations, offers or contracts (of any kind or nature,
whether oral or written) prior to or contemporaneous with the execution hereof
with respect to any matter, directly or indirectly related to the terms of this
Agreement and the other Loan Documents. This Agreement and the other Loan
Documents are the result of negotiations among the Bank, the Borrower and the
other parties thereto, and have been reviewed (or have had the opportunity to
be reviewed) by counsel to all such parties, and are the products of all
parties. Accordingly, this Agreement and the other Loan Documents shall not be
construed more strictly against the Bank merely because of the Bank’s
involvement in their preparation.

 

13.3.   Amendments;
Waivers. No delay on the part of the Bank in the exercise of any right,
power or remedy shall operate as a waiver thereof, nor shall any single or
partial exercise by the Bank of any right, power or remedy preclude other or
further exercise thereof, or the exercise of any other right, power or remedy.
No amendment, modification or waiver of, or consent with respect to, any
provision of this Agreement or the other Loan Documents shall in any event be
effective unless the same shall be in writing and acknowledged by the Bank, and
then any such amendment, modification, waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

 

53

 

13.4.   WAIVER OF
DEFENSES. THE BORROWER, ON BEHALF OF ITSELF AND ANY GUARANTOR OF ANY OF THE
OBLIGATIONS, WAIVES EVERY PRESENT AND FUTURE DEFENSE, CAUSE OF ACTION,
COUNTERCLAIM OR SETOFF WHICH THE BORROWER MAY NOW HAVE OR HEREAFTER MAY HAVE TO
ANY ACTION BY THE BANK IN ENFORCING THIS AGREEMENT. PROVIDED THE BANK ACTS IN
GOOD FAITH, THE BORROWER RATIFIES AND CONFIRMS WHATEVER THE BANK MAY DO
PURSUANT TO THE TERMS OF THIS AGREEMENT. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE BANK GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWER.

 

13.5.   FORUM
SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE
STATE OF ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED
OR OPERATE TO PRECLUDE THE BANK FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION
IN ANY OTHER JURISDICTION. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY
SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE
PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. THE BORROWER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO
ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

 

13.6.   WAIVER OF
JURY TRIAL. THE BANK AND THE BORROWER, AFTER CONSULTING OR HAVING HAD THE
OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY
OTHER LOAN DOCUMENT, ANY OF THE OTHER OBLIGATIONS, THE COLLATERAL, OR ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE
FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING
RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF
CONDUCT OR COURSE OF DEALING IN WHICH THE BANK AND THE BORROWER ARE ADVERSE
PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED
BEFORE A COURT AND NOT BEFORE A JURY. THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE BANK GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWER.

 

54

 

13.7.   Assignability.
The Bank may at any time assign the Bank’s rights in this Agreement, the other
Loan Documents, the Obligations, or any part thereof and transfer the Bank’s
rights in any or all of the Collateral, and the Bank thereafter shall be
relieved from all liability with respect to such Collateral; provided, however,
that if an Event of Default does not exist, the Bank shall not make such
assignment without the prior written consent of the Borrower. In addition, the
Bank may at any time sell one or more participations in the Loans. The Borrower
may not sell or assign this Agreement, or any other agreement with the Bank or
any portion thereof, either voluntarily or by operation of law, without the
prior written consent of the Bank. This Agreement shall be binding upon the
Bank and the Borrower and their respective legal representatives and
successors. All references herein to the Borrower shall be deemed to include
any successors, whether immediate or remote. In the case of a joint venture or
partnership, the term “Borrower” shall be deemed to include all joint venturers
or partners thereof, who shall be jointly and severally liable hereunder.

 

13.8.   Confirmations.
The Borrower and the Bank agree from time to time, upon written request
received by it from the other, to confirm to the other in writing the aggregate
unpaid principal amount of the Loans then outstanding under such Note.

 

13.9.   Confidentiality.
The Bank agrees to use commercially reasonable efforts (equivalent to the
efforts the Bank applies to maintain the confidentiality of its own
confidential information) to maintain as confidential all information provided
to it by the Borrower, including all information designated as confidential,
except that the Bank may disclose such information (a) to Persons employed or
engaged by the Bank in evaluating, approving, structuring or administering the
Loans; (b) to any assignee or participant or potential assignee or participant
that has agreed to comply with the covenant contained in this Section 13.9
(and any such assignee or participant or potential assignee or participant may
disclose such information to Persons employed or engaged by them as described
in clause (a) above); (c) as required or requested by any federal or state
regulatory authority or examiner, or any insurance industry association, or as
reasonably believed by the Bank to be compelled by any court decree, subpoena
or legal or administrative order or process; (d) as, on the advice of the Bank’s
counsel, is required by law; (e) in connection with the exercise of any right
or remedy under the Loan Documents or in connection with any litigation to
which the Bank is a party; (f) to any nationally recognized rating agency that
requires access to information about the Bank’s investment portfolio in
connection with ratings issued with respect to the Bank; (g) to any Affiliate
of the Bank who may provide Bank Products to the Borrower or any Subsidiary, or
(h) that ceases to be confidential through no fault of the Bank.

 

13.10.   Binding
Effect. This Agreement shall become effective upon execution by the
Borrower and the Bank. If this Agreement is not dated or contains any blanks
when executed by the Borrower, the Bank is hereby authorized, without notice to
the Borrower, to date this Agreement as of the date when it was executed by the
Borrower, and to complete any such blanks according to the terms upon which
this Agreement is executed.

 

55

 

13.11.   Governing
Law. This Agreement, the Loan Documents and any Note shall be delivered and
accepted in and shall be deemed to be contracts made under and governed by the
internal laws of the State of Illinois (but giving effect to federal laws
applicable to national banks) applicable to contracts made and to be performed
entirely within such state, without regard to conflict of laws principles.

 

13.12.   Enforceability.
Wherever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by, unenforceable or invalid
under any jurisdiction, such provision shall as to such jurisdiction, be
severable and be ineffective to the extent of such prohibition or invalidity,
without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

13.13.   Survival of
Borrower Representations. All covenants, agreements, representations and
warranties made by the Borrower herein shall, notwithstanding any investigation
by the Bank, be deemed material and relied upon by the Bank and shall survive
the making and execution of this Agreement and the Loan Documents and the
issuance of any Note, and shall be deemed to be continuing representations and
warranties until such time as the Borrower has fulfilled all of its Obligations
to the Bank, and the Bank has been indefeasibly paid in full in cash. The Bank,
in extending financial accommodations to the Borrower, is expressly acting and
relying on the aforesaid representations and warranties.

 

13.14.   Extensions
of Bank’s Commitment. This Agreement shall secure and govern the terms of
(i) any extensions or renewals of the Bank’s commitment hereunder, and (ii) any
replacement note executed by the Borrower and accepted by the Bank in its sole
and absolute discretion in substitution for any Note.

 

13.15.   Time of
Essence. Time is of the essence in making payments of all amounts due the
Bank under this Agreement and in the performance and observance by the Borrower
of each covenant, agreement, provision and term of this Agreement.

 

13.16.   Counterparts;
Facsimile Signatures. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts and
each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Agreement. Receipt
of an executed signature page to this Agreement by facsimile or other
electronic transmission shall constitute effective delivery thereof. Electronic
records of executed Loan Documents maintained by the Bank shall deemed to be
originals thereof.

 

56

 

13.17.   Notices.
Except as otherwise provided herein, the Borrower waives all notices and
demands in connection with the enforcement of the Bank’s rights hereunder. All
notices, requests, demands and other communications provided for hereunder
shall be in writing and addressed as follows:

 

	
  To
  the Borrower:

  	
  Primoris Corporation

  
	
   

  	
  26000 Commercentre Drive

  
	
   

  	
  Lake Forest, California
  92630

  
	
   

  	
  Attention: John P.
  Schauerman

  
	
   

  	
  John M. Perisich, Esq.

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  Paul, Hastings, Janofsky
  & Walker LLP

  
	
   

  	
  695 Town Center Drive

  
	
   

  	
  Seventeenth Floor

  
	
   

  	
  Costa Mesa, California
  92626

  
	
   

  	
  Attention: Douglas A.
  Schaaf, Esq.

  
	
   

  	
   

  
	
  To
  the Bank:

  	
  LaSalle Bank National
  Association

  
	
   

  	
  135 South LaSalle Street

  
	
   

  	
  Chicago, Illinois 60603

  
	
   

  	
  Attention: Steve
  Trepiccione

  
	
   

  	
  Construction and
  Engineering Division

  
	
   

  	
   

  
	
  With
  copy to:

  	
  O’Keefe Lyons & Hynes,
  LLC

  
	
   

  	
  30 North LaSalle Street,
  Suite 4100

  
	
   

  	
  Chicago, Illinois 60602

  
	
   

  	
  Attention: James E.
  Carroll, Esq.

  

 

or, as to each party, at
such other address as shall be designated by such party in a written notice to
each other party complying as to delivery with the terms of this subsection.
All notices addressed as above shall be deemed to have been properly given (i)
if served in person, upon acceptance or refusal of delivery; (ii) if mailed by
certified or registered mail, return receipt requested, postage prepaid, on the
third (3rd) day following the day such notice is deposited in any post office
station or letter box; or (iii) if sent by recognized overnight courier, on the
first (1st) day following the day such notice is delivered to such carrier. No
notice to or demand on the Borrower in any case shall entitle the Borrower to
any other or further notice or demand in similar or other circumstances.

 

13.18.   Release of
Claims Against Bank. In consideration of the Bank making the Loans, the
Borrower and all other Obligors do each hereby release and discharge the Bank
of and from any and all claims, harm, injury, and damage of any and every kind,
known or unknown, legal or equitable, which any Obligor may have against the
Bank from the date of their respective first contact with the Bank until the
date of this Loan Agreement, including any claim arising from any reports
(environmental reports, surveys, appraisals, etc.) prepared by any parties
hired or recommended by the Bank. The Borrower and all other Obligors confirm
to Bank that they have reviewed the effect of this release with competent legal
counsel of their choice, or have been afforded the opportunity to do so, prior
to execution of this Agreement and the Loan Documents and do each acknowledge
and agree that the Bank is relying upon this release in extending the Loans to
the Borrower.

 

57

 

13.19.   Costs, Fees
and Expenses. The Borrower shall pay or reimburse the Bank for all
reasonable costs, fees and expenses incurred by the Bank or for which the Bank
becomes obligated in connection with the negotiation, preparation,
consummation, collection of the Obligations or enforcement of this Agreement,
the other Loan Documents and all other documents provided for herein or
delivered or to be delivered hereunder or in connection herewith (including any
amendment, supplement or waiver to any Loan Document),   or during any
workout, restructuring or negotiations in respect thereof, including reasonable
consultants’ fees and attorneys’ fees and time charges of counsel to the Bank,
which shall also include attorneys’ fees and time charges of attorneys who may
be employees of the Bank or any Affiliate of the Bank, plus costs and expenses
of such attorneys or of the Bank; search fees, costs and expenses; and all
taxes payable in connection with this Agreement or the other Loan Documents,
whether or not the transaction contemplated hereby shall be consummated. In
furtherance of the foregoing, the Borrower shall pay any and all stamp and
other taxes, UCC search fees, filing fees and other costs and expenses in
connection with the execution and delivery of this Agreement, any Note and the
other Loan Documents to be delivered hereunder, and agrees to save and hold the
Bank harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such costs and expenses.
That portion of the Obligations consisting of costs, expenses or advances to be
reimbursed by the Borrower to the Bank pursuant to this Agreement or the other
Loan Documents which are not paid on or prior to the date hereof shall be
payable by the Borrower to the Bank on demand. If at any time or times
hereafter the Bank: (a) employs counsel for advice or other representation
(i) with respect to this Agreement or the other Loan Documents,
(ii) to represent the Bank in any litigation, contest, dispute, suit or
proceeding or to commence, defend, or intervene or to take any other action in
or with respect to any litigation, contest, dispute, suit, or proceeding
(whether instituted by the Bank, the Borrower, or any other Person) in any way
or respect relating to this Agreement, the other Loan Documents or the Borrower’s
business or affairs, or (iii) to enforce any rights of the Bank against
the Borrower or any other Person that may be obligated to the Bank by virtue of
this Agreement or the other Loan Documents; (b) takes any action to
protect, collect, sell, liquidate, or otherwise dispose of any of the
Collateral; and/or (c) attempts to or enforces any of the Bank’s rights or
remedies under the Agreement or the other Loan Documents, the costs and
expenses incurred by the Bank in any manner or way with respect to the
foregoing, shall be part of the Obligations, payable by the Borrower to the
Bank on demand.

 

13.20.   Indemnification.
The Borrower agrees to defend (with counsel satisfactory to the Bank), protect,
indemnify, exonerate and hold harmless each Indemnified Party from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and distributions of any kind or
nature (including the disbursements and the reasonable fees of counsel for each
Indemnified Party thereto, which shall also include, without limitation,
reasonable attorneys’ fees and time charges of attorneys who may be employees
of any Indemnified Party), which may be imposed on, incurred by, or asserted
against, any Indemnified Party (whether direct, indirect or consequential and
whether based on any federal, state or local laws or regulations, including
securities laws, Environmental Laws, commercial laws and regulations, under
common law or in equity, or based on contract or otherwise) in any manner
relating to or arising out of this Agreement or any of the Loan Documents, or
any act, event or transaction related or attendant thereto, the preparation,
execution and delivery of this Agreement and the Loan Documents, including the
making or issuance and management of the Loans, the use or intended use of the
proceeds of the Loans, the enforcement of the Bank’s rights and remedies under
this Agreement, the Loan Documents, any Note, any other instruments and
documents delivered hereunder, or under any other agreement between the
Borrower and the Bank; provided, however, that the Borrower shall not have any
obligations hereunder to any Indemnified Party with respect to matters
determined by a court of competent jurisdiction by final and nonappealable
judgment to have been  
caused by or resulting from the willful misconduct or gross negligence of such
Indemnified Party. To the extent that the undertaking to indemnify set forth in
the preceding sentence may be unenforceable because it violates any law or
public policy, the Borrower shall satisfy such undertaking to the maximum
extent permitted by applicable law. Any liability, obligation, loss, damage,
penalty, cost or expense covered by this indemnity shall be paid to each
Indemnified Party on demand, and failing prompt payment, together with interest
thereon at the Default Rate from the date incurred by each Indemnified Party
until paid by the Borrower, shall be added to the Obligations of the Borrower
and be secured by the Collateral. The provisions of this Section shall survive
the satisfaction and payment of the other Obligations and the termination of this
Agreement.

 

58

 

13.21.   Revival and
Reinstatement of Obligations. If the incurrence or payment of the
Obligations by any Obligor or the transfer to the Bank of any property should
for any reason subsequently be declared to be void or voidable under any state
or federal law relating to creditors’ rights, including provisions of the
Bankruptcy Code relating to fraudulent conveyances, preferences, or other
voidable or recoverable payments of money or transfers of property
(collectively, a “Voidable Transfer”), and if the Bank is required to repay or
restore, in whole or in part, any such Voidable Transfer, or elects to do so
upon the reasonable advice of its counsel, then, as to any such Voidable
Transfer, or the amount thereof that the Bank is required or elects to repay or
restore, and as to all reasonable costs, expenses, and attorneys fees of the
Bank, the Obligations shall automatically shall be revived, reinstated, and
restored and shall exist as though such Voidable Transfer had never been made.

 

13.22.   Customer
Identification - USA Patriot Act Notice. The Bank hereby notifies the
Borrower that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and the Bank’s
policies and practices, the Bank is required to obtain, verify and record
certain information and documentation that identifies the Borrower, which
information includes the name and address of the Borrower and such other
information that will allow the Bank to identify the Borrower in accordance
with the Act.

 

59

 

IN WITNESS WHEREOF, the
Borrower and the Bank have executed this Loan and Security Agreement as of the
date first above written.

 

	
   

  	
  PRIMORIS
  CORPORATION,

   a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Schauerman

  
	
   

  	
  Name:

  	
  John Schauerman

  
	
   

  	
  Title:

  	
  SVP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Agreed and accepted:

  
	
   

  	
   

  
	
   

  	
  LASALLE
  BANK NATIONAL ASSOCIATION,  

   a national banking association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve Trepiccione

  
	
   

  	
  Name:

  	
  Steve Trepiccione

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

60

 

Schedule 7.6

 

Equity Ownership:

 

Primoris
Corporation has two individuals, not currently shareholders, that have certain
rights to own shares of Primoris:

 

1.                                       Albert
Morteboy – General Manager of ARB Ecuador, Mr. Morteboy has rights to six
(6) shares of Primoris stock pursuant to a phantom stock agreement.

 

2.                                       Roger
Newnham – General Manager of Born Canada, Mr. Newnham has the right to
eighty-one (81) shares of Primoris stock pursuant to a Put/Call agreement.

 

 

 

Schedule 7.9

 

Litigation and other Liabilities

 

None

 

 

Schedule 7.23

 

Place of Business:

 

Primoris
Corporation

26000
Commercentre Drive

Lake Forest,
CA 92630

 

Branch Offices

ARB
Bakersfield, California

3500 South
Pegasus Drive

Bakersfield,
CA 93308

 

ARB Pittsburg,
California

1875 Loveridge
Road

Pittsburg, CA
94565

 

ARB Conroe,
Texas

10617
Jefferson Chemical Road

Conroe, Texas
77301

 

Subsidiaries

Onquest, Inc.

180 E. Arrow
Highway

San Dimas, CA
91773

 

Onquest Canada

3582 – 118th Ave. S.E.

Calgary,
Alberta T2Z 3XI

Canada

 

Cardinal
Contractors

2201 Cantu
Court, Suite # 202

Sarasota, FL
34232

 

Cardinal
Mechanical

900 Perla

Pasadena, TX
77502

 

Pipeline Trenching,
LLC

900 Perla

Pasadena, TX
77502

 

HP Development,
LLC

26000
Commercentre Dr.

Lake Fores, CA
92630

 

South America –
Northern Region

ARB Equador
Cia, Ltda

Nunez del Vela
E3-13 y Av. Atahualpa

Edf. Torre del
Puente, Pisos 4 y 5

Quito.
Pichincha. Ecuador

 

ARB Arendal,
S.dc R.L. de C.V.

Calle del
Mirado, S/n

Col. El Mirado

San Nicolar de
Los Garza. N.L.

Nuevo Leon,
Mexico 66050

 

 

Schedule 9.1

 

Debt

 

	
  Lender

  	
   

  	
  Original

  amount

  	
   

  	
  Interest

  rate

  	
   

  	
  Inception

  	
   

  	
  Term

  (months)

  	
   

  	
  Months

  remain

  	
   

  	
  Pro
  forma

  balance

  12/31/05

  	
   

  	
  Pro
  forma

  current

  12/31/06

  	
   

  	
  Monthly

  payments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifth-Third

  	
   

  	
  1,000,000

  	
   

  	
  6.49

  	
  %

  	
  Apr-05

  	
   

  	
  60

  	
   

  	
  40

  	
   

  	
  701,911

  	
   

  	
  194,914

  	
   

  	
  19,561

  	
   

  
	
  GE Capital

  	
   

  	
  23,568,694

  	
   

  	
  6.51

  	
  %

  	
  Dec-06

  	
   

  	
  84

  	
   

  	
  54

  	
   

  	
  23,568,694

  	
   

  	
  2,747,857

  	
   

  	
  350,096

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consolidated Loan Debt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  24,270,605

  	
   

  	
  $

  	
  2,942,771

  	
   

  	
  $

  	
  369,657

  	
   

  
																					

 

 

STANDBY LETTERS OF CREDIT

 

	
  Bank

  	
   

  	
  Beneficiary

  	
   

  	
  Action

  	
   

  	
  Amount

  	
   

  	
  Effective
  Date

  	
   

  	
  Maturity
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Union Bank of

  	
   

  	
    ARB Arendal / Bancomer

  	
   

  	
  Replace

  	
   

  	
  1,000,000

  	
   

  	
  12/20/04

  	
   

  	
  12/31/07

  	
   

  
	
  California

  	
   

  	
    Zurich American Insurance

  	
   

  	
  Issue

  	
   

  	
  575,000

  	
   

  	
  04/23/04

  	
   

  	
  04/22/07

  	
   

  
	
   

  	
   

  	
    Energia Mayakan

  	
   

  	
  Cash

  	
   

  	
  267,994

  	
   

  	
  11/02/05

  	
   

  	
  11/07/07

  	
   

  
	
   

  	
   

  	
    Suncor Energy Products

  	
   

  	
  Cash

  	
   

  	
  92,040

  	
   

  	
  11/04/05

  	
   

  	
  04/01/07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Total Letters of Credit - UBOC

  	
   

  	
   

  	
   

  	
  1,935,034

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of Montreal

  	
   

  	
  ·  Sembcorp
  Engineering

  	
   

  	
  L/C or Cash

  	
   

  	
  69,900

  	
   

  	
  01/08/04

  	
   

  	
  02/03/07

  	
   

  
	
   

  	
   

  	
  · Salym Petroleum

  	
   

  	
  L/C or Cash

  	
   

  	
  131,680

  	
   

  	
  05/16/05

  	
   

  	
  03/31/07

  	
   

  
	
   

  	
   

  	
  ·
  Petrofac International Ltd

  	
   

  	
  L/C or Cash

  	
   

  	
  435,700

  	
   

  	
  02/12/07

  	
   

  	
  12/31/09

  	
   

  
	
   

  	
   

  	
  ·
  Hyundai

  	
   

  	
  L/C or Cash

  	
   

  	
  279,986

  	
   

  	
  09/14/05

  	
   

  	
  09/30/08

  	
   

  
	
   

  	
   

  	
  · Consolidated Contractors (1)

  	
   

  	
  L/C or Cash

  	
   

  	
  111,575

  	
   

  	
  12/28/05

  	
   

  	
  10/31/07

  	
   

  
	
   

  	
   

  	
  ·
  SNC/SNAM (1)

  	
   

  	
  L/C or Cash

  	
   

  	
  611,520

  	
   

  	
  03/31/06

  	
   

  	
  03/31/07

  	
   

  
	
   

  	
   

  	
  ·
  BOSICOR (l)

  	
   

  	
  L/C or Cash

  	
   

  	
  195,000

  	
   

  	
  03/17/06

  	
   

  	
  02/28/08

  	
   

  
	
   

  	
   

  	
  ·
  BOSICOR

  	
   

  	
  L/C or Cash

  	
   

  	
  35,390

  	
   

  	
  11/20/06

  	
   

  	
  06/30/08

  	
   

  
	
   

  	
   

  	
  ·
  Interoil Corporation

  	
   

  	
  L/C or Cash

  	
   

  	
  68,362

  	
   

  	
  10/11/06

  	
   

  	
  08/05/07

  	
   

  
	
   

  	
   

  	
    Gastech

  	
   

  	
  Cash

  	
   

  	
  15,565

  	
   

  	
   

  	
   

  	
  08/31/08

  	
   

  
	
   

  	
   

  	
    Gastech

  	
   

  	
  Cash

  	
   

  	
  7,927

  	
   

  	
   

  	
   

  	
  08/01/08

  	
   

  
	
   

  	
   

  	
    Total Letters of Credit - BOM

  	
   

  	
   

  	
   

  	
  1,962,605

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank

  	
   

  	
  ·
  GASTECH

  	
   

  	
  N/A

  	
   

  	
  423,200

  	
   

  	
  06/02/05

  	
   

  	
  04/30/07

  	
   

  
	
   

  	
   

  	
    Total Letters of Credit - HSBC

  	
   

  	
   

  	
   

  	
  423,200

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·
  EDC Insured 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)  Co-Indemnified by
Onquest, Inc.

 

2

 

Schedule 9.2

 

Liens

 

	
  Lender

  	
   

  	
  Original

  amount

  	
   

  	
  Interest

  rate

  	
   

  	
  Inception

  	
   

  	
  Term

  (months)

  	
   

  	
  Months

  remain

  	
   

  	
  Pro forma

  balance

  12/31/06

  	
   

  	
  Pro forma

  current

  12/31/06

  	
   

  	
  Monthly

  payments

  	
   

  
	
  Synthetic leases,
  equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CitiCapital - Enbridge

  	
   

  	
  1,292,000

  	
   

  	
  5.68

  	
  %

  	
  Jul-05

  	
   

  	
  73

  	
   

  	
  56

  	
   

  	
  1,051,203

  	
   

  	
  172,285

  	
   

  	
  18,963

  	
   

  
	
  Key - forms

  	
   

  	
  1,000,000

  	
   

  	
  6.25

  	
  %

  	
  Feb-05

  	
   

  	
  72

  	
   

  	
  50

  	
   

  	
  758,660

  	
   

  	
  150,229

  	
   

  	
  16,124

  	
   

  
	
  Key - forms

  	
   

  	
  1,034,391

  	
   

  	
  5.11

  	
  %

  	
  Mar-06

  	
   

  	
  72

  	
   

  	
  63

  	
   

  	
  929,602

  	
   

  	
  145,100

  	
   

  	
  15,851

  	
   

  
	
  Key - forms

  	
   

  	
  514,148

  	
   

  	
  7.13

  	
  %

  	
  Jun-06

  	
   

  	
  72

  	
   

  	
  66

  	
   

  	
  484,421

  	
   

  	
  62,721

  	
   

  	
  7,936

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,223,886

  	
   

  	
   

  	
   

  	
  58,874

  	
   

  
	
  Operating
  leases,equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Mobleram

  	
   

  	
  1,096,200

  	
   

  	
  5.31

  	
  %

  	
  Jul-05

  	
   

  	
  72

  	
   

  	
  52

  	
   

  	
  861,420

  	
   

  	
  151,144

  	
   

  	
  16,102

  	
   

  
	
  GE - Enbridge

  	
   

  	
  1,506,838

  	
   

  	
  5.37

  	
  %

  	
  Jul-05

  	
   

  	
  72

  	
   

  	
  55

  	
   

  	
  1,233,920

  	
   

  	
  189,737

  	
   

  	
  20,949

  	
   

  
	
  GE - 385 Excavator

  	
   

  	
  816,511

  	
   

  	
  5.15

  	
  %

  	
  Dec-05

  	
   

  	
  72

  	
   

  	
  60

  	
   

  	
  717,662

  	
   

  	
  96,257

  	
   

  	
  10,911

  	
   

  
	
  CITI - DST Dozers(2)

  	
   

  	
  997,998

  	
   

  	
  5.08

  	
  %

  	
  Dec-05

  	
   

  	
  72

  	
   

  	
  60

  	
   

  	
  895,790

  	
   

  	
  98,490

  	
   

  	
  11,816

  	
   

  
	
  Key - Equipment

  	
   

  	
  1,438,435

  	
   

  	
  5.06

  	
  %

  	
  Apr-06

  	
   

  	
  72

  	
   

  	
  64

  	
   

  	
  1,349,992

  	
   

  	
  138,431

  	
   

  	
  17,017

  	
   

  
	
  Fifth-Third - RPO

  	
   

  	
  1,861,736

  	
   

  	
  5.03

  	
  %

  	
  Dec-05

  	
   

  	
  72

  	
   

  	
  60

  	
   

  	
  1,671,603

  	
   

  	
  200,025

  	
   

  	
  23,294

  	
   

  
	
  Natl City Comm.Cap.

  	
   

  	
  540,825

  	
   

  	
  5.97

  	
  %

  	
  Jul-06

  	
   

  	
  72

  	
   

  	
  67

  	
   

  	
  894,388

  	
   

  	
  116,266

  	
   

  	
  13,876

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,625,675

  	
   

  	
   

  	
   

  	
  113,966

  	
   

  
	
  TRAC leases

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banc One Leasing

  	
   

  	
  509,877

  	
   

  	
  5.87

  	
  %

  	
  Feb-02

  	
   

  	
  60

  	
   

  	
  2

  	
   

  	
  19,372

  	
   

  	
  19,372

  	
   

  	
  9,686

  	
   

  
	
  Banc One Leasing

  	
   

  	
  620,002

  	
   

  	
  6.84

  	
  %

  	
  Apr-02

  	
   

  	
  60

  	
   

  	
  5

  	
   

  	
  52,450

  	
   

  	
  52,450

  	
   

  	
  10,490

  	
   

  
	
  Banc One Leasing

  	
   

  	
  627,099

  	
   

  	
  5.41

  	
  %

  	
  Sep-02

  	
   

  	
  60

  	
   

  	
  9

  	
   

  	
  83,034

  	
   

  	
  83,034

  	
   

  	
  9,226

  	
   

  
	
  Banc One Leasing

  	
   

  	
  128,298

  	
   

  	
  5.06

  	
  %

  	
  Dec-02

  	
   

  	
  60

  	
   

  	
  12

  	
   

  	
  18,720

  	
   

  	
  18,720

  	
   

  	
  1,560

  	
   

  
	
  Banc One Leasing

  	
   

  	
  2,643,449

  	
   

  	
  3.72

  	
  %

  	
  Jun-03

  	
   

  	
  60

  	
   

  	
  18

  	
   

  	
  725,809

  	
   

  	
  483,672

  	
   

  	
  40,323

  	
   

  
	
  Banc One Leasing

  	
   

  	
  1,521,543

  	
   

  	
  4.48

  	
  %

  	
  Dec-03

  	
   

  	
  60

  	
   

  	
  24

  	
   

  	
  967,745

  	
   

  	
  285,661

  	
   

  	
  23,805

  	
   

  
	
  Banc One Leasing

  	
   

  	
  742,270

  	
   

  	
  5.44

  	
  %

  	
  Jun-04

  	
   

  	
  60

  	
   

  	
  30

  	
   

  	
  302,730

  	
   

  	
  121,092

  	
   

  	
  10,091

  	
   

  
	
  Chase

  	
   

  	
  273,045

  	
   

  	
  6.71

  	
  %

  	
  Apr-05

  	
   

  	
  60

  	
   

  	
  40

  	
   

  	
  184,017

  	
   

  	
  55,205

  	
   

  	
  4,600

  	
   

  
	
  CitiCapital

  	
   

  	
  746,736

  	
   

  	
  3.87

  	
  %

  	
  Dec-04

  	
   

  	
  60

  	
   

  	
  35

  	
   

  	
  400,661

  	
   

  	
  137,370

  	
   

  	
  11,447

  	
   

  
	
  CitiCapital

  	
   

  	
  286,247

  	
   

  	
  3.98

  	
  %

  	
  Feb-05

  	
   

  	
  60

  	
   

  	
  37

  	
   

  	
  162,362

  	
   

  	
  52,658

  	
   

  	
  4,368

  	
   

  
	
  CitiCapital

  	
   

  	
  417,247

  	
   

  	
  5.71

  	
  %

  	
  Aug-05

  	
   

  	
  60

  	
   

  	
  43

  	
   

  	
  292,593

  	
   

  	
  81,654

  	
   

  	
  6,804

  	
   

  
	
  Fifth Third

  	
   

  	
  1,187,558

  	
   

  	
  5.34

  	
  %

  	
  Dec-05

  	
   

  	
  60

  	
   

  	
  48

  	
   

  	
  918,432

  	
   

  	
  229,608

  	
   

  	
  19,134

  	
   

  
	
  Key Bank

  	
   

  	
  314,475

  	
   

  	
  5.11

  	
  %

  	
  Feb-05

  	
   

  	
  48

  	
   

  	
  38

  	
   

  	
  240,803

  	
   

  	
  76,043

  	
   

  	
  6,337

  	
   

  
	
  Key Bank

  	
   

  	
  157,993

  	
   

  	
  5.59

  	
  %

  	
  Aug-06

  	
   

  	
  60

  	
   

  	
  56

  	
   

  	
  145,649

  	
   

  	
  31,210

  	
   

  	
  2,601

  	
   

  
	
   

  	
   

  	
  10,275,838

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,514,376

  	
   

  	
   

  	
   

  	
  160,493

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARB -Total Lease expense

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  15,363,937

  	
   

  	
   

  	
   

  	
  333,333

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating leases,
  equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Cardinal

  	
   

  	
  506,833

  	
   

  	
  5.24

  	
  %

  	
  Jul-05

  	
   

  	
  72

  	
   

  	
  55

  	
   

  	
  377,036

  	
   

  	
  62,262

  	
   

  	
  6,855

  	
   

  
	
  Key - Cardinal

  	
   

  	
  571,959

  	
   

  	
  5.24

  	
  %

  	
  Sep-05

  	
   

  	
  72

  	
   

  	
  57

  	
   

  	
  441,085

  	
   

  	
  92,860

  	
   

  	
  7,738

  	
   

  
	
  Key - Cardinal

  	
   

  	
  88,145

  	
   

  	
  4.99

  	
  %

  	
  Feb-06

  	
   

  	
  60

  	
   

  	
  50

  	
   

  	
  74,885

  	
   

  	
  17,972

  	
   

  	
  1,498

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  893,006

  	
   

  	
   

  	
   

  	
  16,091

  	
   

  
	
  TRAC leases

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key - Cardinal

  	
   

  	
  28,521

  	
   

  	
  5.17

  	
  %

  	
  May-06

  	
   

  	
  60

  	
   

  	
  53

  	
   

  	
  23,274

  	
   

  	
  5,270

  	
   

  	
  439

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CAR - Total lease
  expense

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  916,260

  	
   

  	
   

  	
   

  	
  16,530

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Primoris - Total Lease
  Expense

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  16,280,217

  	
   

  	
   

  	
   

  	
  $

  	
  349,863

  	
   

  
																				

 

 

Security
Agreement in favor of Union Bank of California. Account number 4509041705,
securing cash collateral of $1,900,000 in support of existing letter of credit.

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]