Document:

Fifth Forbearance Agreement

 Exhibit 10.3 
  
 FORBEARANCE AGREEMENT NO. 5 
  

THIS FORBEARANCE AGREEMENT No. 5 (this “Agreement”) is made and entered into as of November 1, 2005 by and among
EMERGYSTAT, INC., a Mississippi corporation, EMERGYSTAT OF SULLIGENT, INC., an Alabama corporation, EXTENDED EMERGENCY MEDICAL SERVICES, INC., an Alabama corporation, MED EXPRESS OF MISSISSIPPI, LLC, a Mississippi limited liability company
(collectively, “Borrower”), BAD TOYS HOLDINGS, INC., a Nevada corporation (“Parent”), GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, aka GE COMMERCIAL FINANCE HEALTHCARE FINANCIAL
SERVICES CF (“CF”), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, aka GE COMMERCIAL FINANCE HEALTHCARE FINANCIAL SERVICES EF (“EF”) (collectively, CF and EF and their successors,
endorsees, transferees, affiliates, and assigns are referred to as “GECC”). 
  
 RECITALS 
  

			
	FIRST:	  	Borrower, Parent, and GECC are parties to that certain Restructuring Agreement, dated as of March 18, 2005, as amended by that certain Amendment No. 1 To Restructuring Agreement, dated
as of April 29, 2005 (as amended, the “Restructuring Agreement”).
		
	SECOND:	  	Borrower has been in default under the CF Documents for an extensive period of time pursuant to Existing Defaults (as that term is defined is the Forbearance Agreements) and other matters stated
in the Forbearance Agreements, and interest is accruing, and continues to accrue at the Default Rate as defined in Section 1.16 of the Loan Agreement. Borrower continues to be in the default under EF Documents on account of Emergystat Stock
Purchase.
		
	THIRD:	  	The 2005 Tax Default continues to exist. Schedule 1, attached hereto and by this reference made a part hereof, sets forth, among other things, a current, complete, and accurate list of
all 2005 Unfunded Payroll Taxes.
		
	FOURTH:	  	Borrower has failed to provide GECC with written confirmation and reports, as required by Section 3.9 of the 9/1/05 Forbearance Agreement, that Borrower is in full compliance with the lockbox
provisions of Section 2.3 of the Loan Agreement. One hundred percent (100%) of the Accounts Proceeds are not being deposited directly into the Lockbox Account(s) by payors of Borrower’s Accounts, and Borrower acknowledges that Borrower’s
continuing failure to cause such direct deposits constitutes an additional default under CF Documents.
		
	FIFTH:	  	CF has made substantial and extensive financial accommodations to Borrower under the terms and conditions of the Forbearance Agreements, the Tri-Party Agreement, and the Restructuring Agreement.
EF also has accommodated Borrower’s request to forbear under the terms and conditions of the Restructuring Agreement.

			
	SIXTH:	  	The forbearance period with respect to both the EF Obligations and the CF Obligations expired on October 31, 2005.
		
	SEVENTH:	  	In light of the expiration of the forbearance period, the continued existence of the Existing Defaults, and of the 2005 Tax Default, and Borrower’s failure to comply with the terms and
conditions of the Forbearance Agreements and the Restructuring Agreement: (i) GECC has no obligation of any kind to provide further funding or financial accommodations to Borrower under the GECC Documents or otherwise, (ii) GECC is entitled to
declare the CF Obligations and the EF Obligations immediately due and payable, and (iii) GECC is entitled to exercise immediately its rights and remedies against Borrower and the Consolidation Note Collateral pursuant to any and all of the GECC
Documents and applicable law on account of the Existing Defaults and the 2005 Tax Default.
		
	EIGHTH:	  	Borrower and Parent have represented to GECC that: (i) Parent and Tenth Street Fund I, L.P., have executed a term sheet dated October 26, 2005, regarding a $3,500,000.00 financing, (i) Parent
continues to work toward a transaction between Parent and Barron Partners LP regarding an offering of equity in Parent, (ii) Parent plans to use the proceeds of any equity offering or other financing to pay the Unfunded Payroll Taxes, related
penalties, and the 2005 Unfunded Payroll Taxes, (iii) Borrower continues to pursue refinancing from Meridian Commercial Healthcare Finance sufficient to pay in full the CF Obligations and the EF Obligations, (iv) Parent plans to cause loan proceeds
received by any affiliate of Parent and Borrower to be utilized to pay the Unfunded Payroll Taxes, related penalties, and the 2005 Unfunded Payroll Taxes, (v) Borrower continues to work diligently with the IRS to resolve the Enforcement Notice, as
well as the Unfunded Payroll Taxes, and (v) relations between Borrower and Johnny Glenn Crawford continue to be seriously strained.
		
	NINTH:	  	Borrower is asking GECC to continue to forbear from exercising its collection and other rights, and to continue to make advances under the CF Documents. GECC is willing to agree to this
request by Borrower but only under the terms and conditions set forth in this Agreement.

  
 Now, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in consideration of the premises and agreements, provisions and covenants herein contained, each of Borrower, Parent, and GECC agrees as follows:

  
 1. Definitions. Unless otherwise defined in this Agreement or
in the above Recitals, all capitalized terms used herein shall have the meanings ascribed to them in the Forbearance Agreements and the Restructuring Agreement as applicable. In addition, the following capitalized terms shall have the meanings set
forth below: 
  
 1.1 “Existing Defaults”
means (i) all Existing Defaults (as that term is defined in the Forbearance Agreements) and defaults with respect to other matters stated in the Forbearance Agreements, and (ii) the 2005 Tax Default. 
  

 Page 2 

 1.2 “Forbearance Agreements” means all of the forbearance letter agreements
between CF and Borrower identified and set forth in Schedule “2” attached hereto. 
  
 1.3 “GECC Documents” means all of the CF Documents, the EF Documents, the Consolidation Note, the Forbearance Agreements, the
Restructuring Agreement, the Tri-Party Agreement, and all notes, loan agreements, security agreements, guaranties, deeds of trust, and other instruments and documents, executed and delivered in connection therewith in favor of CF and/or EF, whether
such documents and instruments are now existing or hereafter created, as the same have been and may be further amended, replaced, supplemented or otherwise modified from time to time, including but not limited to the Restructuring Agreement.

  
 1.4 “Pacific Capital Lawsuit” means
Case No. C36478(M) pending in the Law Court for Sullivan County At Kingsport, Tennessee, captioned as Pacific Capital, L.P. v. Emergystat, Inc., et al; and any other state or federal proceeding based on the same or similar factual
allegations. 
  
 2. Recitals. Each of Borrower and Parent hereby
acknowledges that all of the Recitals stated above are true and accurate, and by this reference are incorporated into and made a part of the body of this agreement. 
  
 3. Limited Forbearance. Subject to all of the precisions of this Agreement, GECC will forbear from exercising its right and
remedies under GECC Documents and otherwise with respect to the Existing Defaults and the Enforcement Notice Default, and subject to the terms and conditions of the CF Documents, CF will continue to make advances to Borrower, from November 1,
2005, through November 30, 2005 (the “Extended Forbearance Period”) if, and only if, each and all of the following are satisfied timely and continue to be satisfied: 
  

	 	3.1	Scheduled Mandatory Payments Under Consolidation Note. 

  
 3.1.1 On or before November 30, 2005, Borrower shall pay to GECC, and Parent shall cause Borrower to pay to GECC, and GECC shall have received
payment in full, in immediately available funds, of the entire amount of both the CF Obligations and the EF Obligations, as determined by CF and EF and in accordance with the GECC Documents. Such payment shall permanently reduce such obligations,
and upon receipt of such payment in full CF shall have no further obligation to make advances or otherwise extend credit to Borrower. 
  
 3.1.2 Borrower shall continue to make regularly scheduled payments when due to GECC with respect to the EF Obligations until such time when GECC shall
have received payment in full of the entrire amount of the EF Obligations, and nothing contained in this Agreement shall be construed to excuse or extend the time or times when such regularly scheduled payments are due. 
  
 3.2 Crawford Relationship Status Reports. 
  
 3.2.1 Lease. Within three (3) days of execution and
delivery of this Agreement, Borrower shall deliver to GECC: (i) a true and complete (including all exhibits, schedules, and other attachments) copy of the fully executed lease between Borrower, as lessee, and Johnny 
  

 Page 3 

 Glenn Crawford (“Crawford”) or an entity controlled by Crawford, as lessor, of Borrower’s
corporate headquarters located at 126 Emergystat Loop, Vernon, Alabama 35592 (the “Headquarters Lease”), and (ii) all amendments, modifications, replacements, extensions and other agreements in any way affecting the
Headquarters Lease. Borrower has delivered to GECC a copy of an unsigned lease between Crawford and Emergystat, Inc., but Borrower acknowledges and agrees that Borrower is still obligated to provide GECC with a true and complete copy of the fully
executed Headquarters Lease. 
  
 3.2.2 Intercompany
Loans. On or before Monday, November 7, 2005, Borrower shall deliver to GECC true and complete (including exhibits, schedules, and other attachments) copies of all documentation, including, but not limited to, all promissory notes, loan
agreements, other type agreements, ledger entries, and other documents, evidencing each and every intercompany loan or other transaction, financial or otherwise, between Borrower and Crawford. 
  
 3.2.3 Status Reports. Upon execution and delivery of this
Agreement and continuing on each Monday thereafter, Borrower shall deliver to GECC, in form, content, and detail satisfactory to GECC, (i) a written report (executed and certified by Borrower’s authorized representatives) describing any
and all actions, communications (both verbal and written), negotiations with Crawford during the previous week regarding the Headquarters Lease and the overall relationship between Borrower and Crawford, and (ii) true and complete copies
(executed and certified by Borrower’s authorized representatives) of all correspondence and other documentation exchanged between Borrower and Crawford including, but not limited to, all eviction notices, threats of eviction, and alll other
legal actions commenced or threatened by Crawford, Borrower, or Parent. 
  
 3.3 Guarantor Consent. Upon execution and delivery of this Agreement by Borrower to GECC, Borrower shall deliver to GECC the Consent And Agreement Of Guarantor form attached this Agreement duly executed by Parent.

  
 3.4 Lawsuit Status Reports. Commencing on
Monday, November 7, 2005, and continuing on each Monday thereafter, Borrower shall deliver to GECC, in form, content, and detail satisfactory to GECC, written reports (executed and certified by Borrower’s authorized representatives)
describing any and all actions, communications, negotiations with Pacific Capital, L.P. regarding the Pacific Capital Lawsuit during the previous week, including but not limited to, any settlement proposals, proposed motions, dismissal discussions,
and discussions regarding GECC as a defendant in the Pacific Capital Lawsuit. 
  
 3.5 Current Payroll Taxes. Commencing on November 1, 2005, and continuing thereafter: (i) without exception Borrower shall pay timely and in full each and every payroll tax amount when
due, and (ii) within one (1) Business Day of each such payroll tax payment made, shall deliver to CF written confirmation (in form, substance, and detail satisfactory to CF, and executed and certified by authorized representatives of
Borrower) of each such payroll tax payment made, including, but not limited to, the amount, date paid, and taxing authority. Each of Borrower and Parent hereby acknowledges and agrees that any failure by Borrower to perform fully and continuously
under this Section 3.5 shall constitute an automatic Event of Default hereunder and under the CF Documents and shall automatically terminate the Extended Forbearance Period, all without the need for any further notice or declaration of
any kind by CF. 
  

 Page 4 

 3.6 Incorporation Of GECC Documents. During the Extended Forbearance Period, and unless
expressly modified in this Agreement, Borrower shall comply with and satisfy, and shall continue to comply with and satisfy, all terms, conditions, and requirements of the GECC Documents, all without any waiver of or other effect upon GECC’s
continuing rights thereunder and otherwise. 
  
 3.7
Resolution Of The Enforcement Notice. With respect to the Enforcement Notice (as defined in the Twentieth Forbearance Agreement), and in order to confirm the status of the Enforcement Notice and that Borrower is using its best efforts
to resolve the Enforcement Notice, Borrower agrees to do the following: (i) continue to deliver to CF copies of any documents related to the Enforcement Notice, including, but not limited to, all communications between Borrower and the IRS
regarding the Enforcement Notice, with such copies to be delivered to CF simultaneously with their submission by or delivery to Borrower, (ii) arrange for a teleconference(s) between Borrower, an authorized representative of the IRS, and CF to
be held at such date(s) and time(s) reasonably requested by CF, to discuss the Enforcement Notice, (iii) hereby expressly authorizes CF to contact the IRS directly regarding the Enforcement Notice; and (iv) commencing on Tuesday,
November 1, 2005, and on each Monday thereafter, to deliver to CF a detailed written report, in form, content, and detail satisfactory to CF (executed and certified by Borrower’s authorized representatives) describing the status of the
Enforcement Notice and the Unfunded Payroll Taxes, all appeals, offers, or other actions Borrower has taken with respect to such matters, and of any response(s) or other communications Borrower has received from the IRS. Borrower understands,
acknowledges, and agrees that if the IRS takes any action against Borrower or its assets at any time with respect to the Enforcement Notice or otherwise, GECC shall have no obligation to forbear from exercising, and GECC shall be entitled to
exercise immediately, all of its rights and remedies under the Loan Agreement, the other GECC Documents, and this Agreement. 
  
 3.8 Continuing Obligations Regarding Unfunded Payroll Taxes. Borrower’s obligations regarding the Enforcement Notice in
Section 3.7 above are in addition to Borrower’s continuing obligation to comply with and satisfy all terms of the Forbearance Agreements regarding the Unfunded Payroll Taxes, all of which remain in full force and effect. In addition
to the foregoing, the non-compliance fee in the amount of $5,000 per week provided for in paragraph C.4. of the Fourteenth Forbearance Agreement will continue to accrue during the Extended Forbearance Period, and each such fee will be fully earned
and due and payable in full by Borrower to CF on November 7, 2005, and continuing on each Monday thereafter, so long as Borrower has not obtained the release of any and all liens asserted by the IRS against Borrower, and delivered the same to
GECC and all accrued and unpaid amounts of the non-compliance fee shall constitute part of the CF Obligations owing from Borrower to CF. In addition to all of the foregoing, Borrower will continue to comply with all requirements of the Forbearance
Agreements regarding the Unfunded Payroll Taxes. 
  
 3.9
Lockbox Compliance. On or before November 7, 2005, CF will receive from Borrower, in form, content, and detail satisfactory to CF, written confirmation from Borrower (executed and certified by Borrower’s authorized
representatives) evidencing and certifying that 
  

 Page 5 

 Borrower is in full compliance with the lockbox provisions of Section 2.3 of the Loan Agreement, and that all payors
of Borrower’s Accounts (including, but not limited to, any and all governmental authorities, fiscal intermediaries, and persons or entities acting on their behalf who are payors of Medicare or Medicaid Accounts) are depositing, and will
continue to deposit, one hundred percent (100%) of the proceeds of any and all Accounts (the “Accounts Proceeds”) directly into the Lockbox Account(s). During the Extended Forbearance Period, i.e., from
November 1, 2005 through November 30, 2005, and without altering or affecting in any way any of the foregoing duties and obligations of Borrower, Borrower will deposit one hundred percent (100%) of the Accounts Proceeds received by
Borrower directly into the Lockbox Account(s) within twenty-four (24) hours of their receipt by Borrower, and on each Monday commencing on November 7, 2005, and continuing on each Monday thereafter, Borrower will deliver to CF, in form,
content, and detail satisfactory to CF, written reports from Borrower (executed and certified by Borrower’s authorized representatives) evidencing and certifying that, during each previous week, one hundred percent (100%) of the Accounts
Proceeds were deposited directly in the Lockbox Account(s) by payors of Borrower’s Accounts. 
  
 3.10 Segregation Of Borrower’s Accounts. To the extent Borrower has or comes into possession of any accounts receivable, other rights
to payment, or proceeds therefrom that are not owned by Borrower (including, but not limited to, any such property that is owned by Southland or Quality Care as described below) (“Non-Borrower Funds”), Borrower shall strictly
segregate and keep all such Non-Borrower Funds separate from Borrower’s Accounts and Accounts Proceeds, and all Non-Borrower Funds shall be maintained at all times in bank or other accounts that are separate from any bank or other accounts
which contain Accounts or Accounts Proceeds of Borrower. Without limiting the foregoing in any way, Borrower also will deliver to CF bank statements from any accounts controlled or administered by Borrower into which proceeds of any accounts
receivable or other rights to payment of Quality Care and or Southland are deposited (“Quality Care/Southland Bank Accounts”), so that CF can confirm that all such property of Quality Care/Southland is strictly segregated
from Borrower’s Accounts and Accounts Proceeds. On each Monday commencing on November 7, 2005, and continuing on each Monday thereafter, Borrower will deliver to CF written confirmation, in form, content, and detail satisfactory to CF
(executed and certified by Borrower’s authorized representatives) evidencing and certifying that Borrower has fully satisfied all requirements of this Section 3.10 (including, but not limited to, the delivery to CF of bank
statements regarding Quality Care/Southland as provided above). Any failure by Borrower to comply with the terms of this Section 3.10 shall constitute an Event of Default under the Loan Agreement. The requirements of this
Section 3.10 do not alter or affect in any way Borrower’s obligation to comply with the lockbox and other provisions of the Loan Agreement, the other GECC Documents, and this Agreement, regarding Accounts and Accounts Proceeds of
Borrower. 
  
 3.11 Weekly Reports. On each Monday
commencing on November 7, 2005, and continuing on each Monday thereafter, Borrower will deliver to CF in form, content, and detail satisfactory to CF, written reports from Borrower (executed and certified by Borrower’s authorized
representatives): 
  
 3.11.1 Describing any and all actions,
communications, negotiations, and other developments regarding the Unfunded Payroll Taxes and/or the Enforcement Notice during the 
  

 Page 6 

 previous week, including, without limitation, any and all communications and negotiations with the IRS that relate to any
of the foregoing, in order to assure GECC of Borrower’s continuing best efforts to arrange for and resolve such matters; 
  
 3.11.2 Updating Borrower’s progress with respect to refinancing from Meridian; 
  
 3.11.3 Updating status of Parent’s equity offering to Barron Partners LP, as well as the status of all other
transactions Parent pursues during the Limited Forbearance Period, whether in the form of an equity offering, a loan, or otherwise, with Tenth Street Fund I, L.P., or any other Person. 
  
 3.11.4 Updating each of the information and document requirements stated in this Agreement. 
  
 All such written reports must be delivered to CF via
overnight courier to the attention of Michael Gardullo. 
  
 3.12
Cash Flow Budget. On each Monday commencing on November 7, 2005, and continuing on each Monday thereafter, Borrower will deliver to CF, in form, content, and detail satisfactory to CF, a rolling twelve (12) week cash flow
budget (the “Budget”). The Budget shall include a certification (executed and certified by Borrower’s authorized representatives) evidencing and certifying that Borrower has performed in accordance with the Budget during
the preceding week. 
  
 3.13 Bank Statements.
Borrower shall deliver to CF on each Monday commencing on November 7, 2005, and continuing on each Monday thereafter, any and all bank statements and “teller statements” for any bank accounts maintained by Borrower, including, but not
limited to, the Lockbox Account(s), and any Quality Care/Southland Bank Accounts. 
  
 Upon any failure by Borrower or Parent, as applicable, to perform and satisfy fully and to continue to perform and satisfy fully the obligations set forth in Sections 3.1 through 3.13 above, (i) GECC may, in GECC’s
sole discretion, without further action, terminate the Extended Forbearance Period and exercise all rights available to it under the GECC Documents, at law, and in equity, and (ii) CF may, in CF’s sole discretion, cease making advances
under the CF Documents. 
  
 3.14 Proceeds Of Equity
Offering. Borrower and Parent hereby reiterate their representations to GECC that Parent will use, or cause to be used, (i) the proceeds of any offering of equity in Parent or of any affiliate of Borrower including, but not
limited to, Southland Health Services, Inc. (for purposes of this Section 3.14, each such affiliate, a “Borrower Affiliate”), and (ii) the proceeds of any loan to Parent or to any Borrower Affiliate (an
“Equity Offering/Loan”) to pay the Unfunded Payroll Taxes, the 2005 Unfunded Payroll Taxes, and related penalties, whether such proceeds are generated from a purchase of stock of Parent or of a Borrower Affiliate, warrants
therefor, or other stock types of options, by Barron Partners LP or any other Person(s), or are loan proceeds from any loan to Parent or any Borrower Affiliate, (such proceeds, collectively, “Equity Offering/Loan Proceeds”).
In order to implement that representation, Borrower and Parent hereby agree that Borrower and Parent shall cause all Equity 
  

 Page 7 

 Offering/Loan Proceeds, less immediate and actual costs and expenses of such offering or loan, to be placed in an escrow
account (an “Escrow Account”) at the closing of the corresponding Equity Offering/Loan pursuant to an escrow agreement and related documentation providing that the Equity Offering/Loan Proceeds in such escrow account shall be
used first to pay the Unfunded Payroll Taxes, the 2005 Unfunded Payroll Taxes, and all related penalties until such time as all of Borrower’s past due obligations to the Internal Revenue Service are paid in full (collectively,
“Escrow Documentation”), provided, however, that no Equity Offering/Loan Proceeds shall be placed in an escrow account or used to pay the Unfunded Payroll Taxes, the 2005 Unfunded Payroll Taxes, and related penalties
unless and until Borrower and Parent have delivered to Lender the items described in (i) and (ii) in the immediately following sentence. At least five (5) Business Days prior to any closing of an Equity Offering/Loan, Borrower and
Parent shall deliver to GECC: (i) evidence, in form, substance, and detail satisfactory to GECC (executed and certified by Parent’s authorized representatives) that the equity purchaser or lender, as the case may be, has been fully
apprised that such Equity Offering/Loan Proceeds, or a specific portion thereof, will be used to pay the Unfunded Payroll Taxes, the 2005 Unfunded Payroll Taxes, and related penalties, and (ii) true and complete copies of all Escrow
Documentation for the subject closing. Immediately following any closing of an Equity Offering/Loan, Borrower and Parent shall deliver to GECC evidence, in form, substance, and detail satisfactory to GECC (executed and certified by Parent’s
authorized representatives) that an Escrow Account was funded in accordance with this Section 3.14. Thereafter, Parent shall deliver to GECC, written weekly report(s), in form, substance, and detail satisfactory to GECC (executed and
certified by Parent’s authorized representatives) setting forth the amount of each withdrawal from the Escrow Account and evidencing application thereof until such time as all Unfunded Payroll Taxes, the 2005 Unfunded Payroll Taxes, all related
penalties, and all other, if any, of Borrower’s past due obligations to the Internal Revenue Service are paid in full. 
  
 3.15 Equity Offering; No Lien. Borrower and Parent hereby represent to GECC and agree that no Equity Offering/Loan shall result in
any lien or encumbrance on or any charge against the Collateral or any portion thereof or lien on or charge against any other property securing the CF Obligations and EF Obligations; the existence of any such lien, encumbrance, or charge shall
constitute an immediate Event of Default without further notice or action on the part of GECC. 
  
 4. Forbearance Fee. Upon execution and delivery by Borrower to GECC of this Amendment, an amount equal to Twenty-Five Thousand And No Hundredths Dollars ($25,000.00) as a forbearance fee and in partial
consideration for GECC’s agreement to enter into this Agreement (the “Forbearance Fee”) shall be fully earned by GECC. The Forbearance Fee shall be due and payable by Borrower in two installments as follows:
(i) Fifteen Thousand And No Hundredths Dollars ($15,000.00) upon execution and delivery of this Agreement by Borrower to GECC, and (ii) Ten Thousand And No Hundredths Dollars ($10,000.00) on November 30, 2005, provided however,
that in the event GECC receives indefeasible payment in full of all of the CF Obligations and the EF Obligations prior to November 30, 2005, and has no further obligation to fund or otherwise extend credit to Borrower, then: (A) the amount
of the Forbearance Fee shall be reduced to $15,000.00, and (B) Borrower shall not be required to pay the second installment of $10,000.00. Borrower hereby authorizes and instructs GECC to make advances under the Loan Agreement to pay the
Forbearance Fee when due, and each such 
  

 Page 8 

 advance shall constitute a Revolving Credit Loan (as that term is defined in the Loan Agreement). Borrower hereby
acknowledges and agrees that: (i) the Forbearance Fee shall constitute a portion of the CF Obligations owing from Borrower to GECC under the provisions of the Loan Agreement and the other Loan Documents secured by the Collateral. 
  
 5. Application of Payments. Payments received by GECC from or on account of
Borrower shall be applied in the following order: (i) first to satisfy the CF Obligations until (y) all of the CF Obligations have been paid in full, and (z) CF has no obligation to extend any credit to Borrower under any one or more
of the CF Documents, the Forbearance Agreements, or otherwise, and (ii) second, and only after the CF Obligations have been paid in full, to satisfy the EF Obligations. 
  
 6. Maximum Loan Amount. Borrower hereby acknowledges and agrees that: (i) the Maximum Loan Amount is One Million Three
Hundred Thousand And No Hundredths Dollars ($1,300,000.00), and (ii) Section 2.1(a) of the Loan Agreement was amended by the 9/1/05 Forbearance Agreement to provide that the Maximum Loan Amount is One Million Three Hundred Thousand And No
Hundredths Dollars ($1,300,000.00). 
  
 7. Acknowledgements. Each
entity comprising Borrower acknowledges that: (i) all amounts asserted to be due by GECC under the Consolidation Note and the other GECC Documents are justly due and owing to GECC, without any defense of Borrower or any right of Borrower to set
off, recoup, or counterclaim (and, upon acceptance of any advance(s), Borrower waives and continues to waive any and all defenses and rights of setoff and recoupment, and releases and continues to release all claims of any kind against GECC);
(ii) the GECC Documents are valid and enforceable against each entity comprising Borrower in accordance with their respective terms, and are not subject to avoidance under applicable state law or federal law; (iii) the liens and security
interests granted to GECC in the Consolidation Note Collateral pursuant to the Restructuring Agreement and the other GECC Documents are valid, enforceable, and properly perfected, and are not subject to avoidance under applicable state law of
federal law; and (iv) all of the same representations regarding validity and enforceability of GECC’s rights and all releases of GECC shall apply with equal force to CF and EF pursuant to this Agreement. 
  
 8. Costs and Expenses. GECC shall be entitled to charge and add to the amount
owing by Borrower under the GECC Documents, all of GECC’s costs and expenses (including attorneys’ fees) incurred in relation to the Existing Defaults, the Enforcement Notice Default, the GECC Documents, this Agreement, and any of the
requirements stated herein. 
  
 9. Default and Remedies.
(i) Any failure by Parent, Borrower, or both, to perform fully and timely under this Agreement, or (ii) any representation or warranty made by Parent, Borrower, or both, in this Agreement, any financial statement, or any statement or
representation made in any other certificate, report or opinion, delivered to GECC by Parent, Borrower, or both, in connection with this Agreement proves to have been incorrect or misleading in any material respect when made, shall constitute an
event of default (“Event of Default”) hereunder and an Event of Default under and as that term is defined in any and all of the GECC Documents. In the event of an Event of Default hereunder or under any of the GECC Documents,
GECC may exercise any and all remedies available to it under this Agreement, and all of the GECC Documents, at law, and in equity. 
  

 Page 9 

 10. Full Force And Effect. Except as expressly set forth herein, this Agreement does not, and shall
not be construed to, affect or limit in any way the terms and provisions of, or waive any right or remedy contained in any of the GECC Documents, or the rights and remedies of GECC thereunder. Borrower acknowledges and agrees that the GECC
Documents, as expressly modified by this Agreement, all continue in full force and affect, and GECC retains all of its rights and remedies under the GECC Documents and otherwise. 
  
 11. No Waiver: Reservation of Rights. 
  
 11.1 Existing Defaults. Unless and only to the extent expressly provided herein, this Agreement applies
only to the Existing Defaults, the Enforcement Notice Default, and the 2005 Tax Default and does not affect or limit GECC’s rights or remedies in any way with respect to any other or future act or omission (including any breach of the terms of
this Agreement by Borrower, and further including, but not limited to, the conditions set forth herein) that may constitute a default by Borrower, or with respect to any default or Event of Default resulting from prior acts or omissions by Borrower
other than the Existing Defaults, the Enforcement Notice Default, and the 2005 Tax Default. 
  
 11.2 No Modification. Except as expressly stated herein, nothing in this Agreement shall be a waiver or modification of any right, power, or remedy of GECC, nor a waiver or modification of any
provision of any of the GECC Documents, and nothing in this Agreement shall be or shall be construed as any waiver of any default or Event of Default (including any default or Event of Default arising from any of the Existing Defaults or the
Enforcement Notice Default or the 2005 Tax Default), whether now existing or hereafter arising; and GECC hereby reserves all of its rights and remedies under all of the GECC Documents and applicable law. 
  
 12. Releases. Each entity comprising Borrower hereby fully, finally,
absolutely, and forever releases and discharges GECC and its present and former directors, shareholders, officers, employees, agents, representatives, attorneys, successors, assigns, and affiliates, and their separate and respective heirs, personal
representatives, attorneys, successors, assigns, and affiliates, from any and all actions, causes of action, claims, debts, damages, demands, liabilities, obligations, and suits of Borrower, of whatever kind or nature, in law or equity, whether now
known or unknown to Borrower, and whether contingent or matured: (i) in respect of each and all of GECC Documents and the actions or omissions of GECC in respect of each and all of the GECC Documents, and (ii) arising from events occurring
prior to the date of this Agreement. The foregoing release and discharge shall be deemed renewed, automatically and without further action of the Borrower, as of the date of each advance of Loan proceeds under the Loan Agreement. 
  
 13. Miscellaneous. 
  
 13.1 Amendment. This Agreement may be amended or
modified only explicitly in a writing signed by all parties to this Agreement. 
  

 Page 10 

 13.2 Waiver: Remedies Cumulative. A waiver signed by GECC shall be effective only in
the specific instance and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any of GECC’s rights or remedies. All rights and remedies of GECC shall be cumulative and may be exercised
singularly or concurrently, at GECC’s option, and the exercise or enforcement of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other. 
  
 13.3 Successors and Assigns. This Agreement shall be binding
upon Parent and Borrower and their respective successors and assigns, except that neither Parent nor Borrower may assign any of their rights or duties under this Agreement without the prior written consent of GECC. This Agreement shall be binding
upon and inure to the benefit of GECC and its successors and assigns. All representations and warranties contained in this Agreement shall survive the execution, delivery and performance of this Agreement and the payment in full of all of the
obligations evidenced by the Consolidation Note. 
  
 14. Governing
Law. This Agreement shall be governed by and construed in accordance with the substantive laws (other than conflict laws) of the State of Maryland. 
  
 15. Severability. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability
shall not affect other provisions or applications which can be given effect and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained in this Agreement or prescribed by this
Agreement. 
  
 16. Interpretation: Headings. No provision of this
Agreement shall be interpreted or construed against any party because that party or its legal representative drafted that provision. Each of the parties hereto shall be deemed to have drafted this Agreement. The rule of law that provides that
ambiguities, inconsistencies and the like shall be construed against the author of a document or contract shall not apply to this Agreement. The titles of the Sections of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement. Any pronoun used in this Agreement shall be deemed to include singular and plural and masculine, feminine and neuter gender as the case may be. The words “herein,” “hereinabove,”
“hereof,” and “hereunder” shall be deemed to refer to this entire Agreement, except as the context otherwise requires. 
  
 17. Authorized. This Agreement has been duly and validly authorized by all necessary action on the part of all parties hereto. 
  
 18. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute an original, but which counterparts together shall constitute but one and the same instrument. 
  
 THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY 
  

 Page 11 

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

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

	CF	 	Title	 	President
				
	By:	 	 /s/ Michael Gardullo

	 	 	 	 
	Title	 	Senior Vice President	 	 EMERGYSTAT OF SULLIGENT, INC.,
 AN
ALABAMA CORPORATION

				
	 	 	 	 	By	 	 /s/ Larry N. Lunan

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

	EF	 	Title	 	President
			
	By:	 	 /s/ [ILLEGIBLE]

	 	 
	Title:	 	Senior Vice President	 	 MED EXPRESS OF MISSISSIPPI, LLC, A
 MISSISSIPPI LIMITED LIABILITY
 COMPANY

				
	 	 	 	 	By	 	 /s/ Larry N. Lunan

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

	 	 	 	 	Title:	 	President

  

 Page 12 

 CONSENT AND AGREEMENT OF GUARANTOR BAD TOYS 
  
 This Consent And Agreement of Guarantor is executed by the undersigned Bad
Toys Holding, Inc. (the “Guarantor Bad Toys”) with respect to the foregoing Forbearance Agreement No. 5 dated as of November 1, 2005 (the “11/1/05 Agreement”). Except as expressly stated
otherwise herein, terms defined in the 11/1/05 Agreement will have the same meanings when used in this Consent And Agreement Of Guarantor. 
  
 Guarantor Bad Toys has executed and delivered the Tri-Party Agreement for the benefit of GECC, whereby, among other things, Guarantor guaranteed payment
in full of Borrower’s obligations to pay the entire amount of the CF Obligations and the EF Obligations (the “Bad Toys Guaranty”). 
  

Guarantor Bad Toys acknowledges (i) receiving and reading the 11/1/05 Agreement to which it is a party, (ii) the accuracy of
the Recitals in the 11/1/05 Agreement, and (iii) the effectiveness, validity and enforceability of (A) the Bad Toys Guaranty, and (B) any other agreements, documents, or instruments securing or otherwise relating to the
Bad Toys Guaranty previously executed and delivered by Guarantor Bad Toys. The Bad Toys Guaranty and all such other agreements, documents, and instruments executed and delivered in connection therewith are referred to individually and collectively
as the “Bad Toys Guaranty Documents”. 
  
 Guarantor Bad Toys consents to the agreement among Borrower, Parent (which is Guarantor Bad Toys), and GECC and all other matters stated in the 11/1/05 Agreement. 
  
 Guarantor Bad Toys fully, finally, and forever releases and discharges GECC and its predecessors, successors, assigns,
directors, officers, employees, attorneys, agents, representatives, and affiliates, from any and all actions, causes of action, claims, debts, demands, liabilities, obligations, and suits of whatever kind or nature, in law or equity, that Guarantor
Bad Toys has or in the future may have, whether known or unknown (i) regarding the Loan, the GECC Documents, the 11/1/05 Agreement, the Bad Toys Guaranty Documents, or the actions or omissions of GECC relating to the Loan, the
GECC Documents, the 11/1/05 Agreement, or the Bad Toys Guaranty Documents and (ii) arising from events occurring prior to the date hereof. 
  
 Guarantor Bad Toys agrees that all references in the Bad Toys Guaranty Documents, if any, to the Loan Agreement and any and all documents executed and/or
delivered in relation to the Loan Agreement will be deemed to refer to such agreements, documents, and instruments as modified by the 11/1/05 Agreement. 
  
 Guarantor Bad Toys reaffirms and confirms the Bad Toys Guaranty Documents and agrees that the Bad Toys Guaranty Documents
continue in full force and effect; and that the Bad Toys Guaranty Documents remain unchanged, unless and except to the extent specifically modified by this Consent And Agreement Of Guarantor. 
  
 Bad Toys Guarantor agrees that the GECC Documents and any and all documents
executed and/or delivered in relation to the Loan Agreement, as modified by the Forbearance Agreements and the 11/1/05 Agreement, and the Bad Toys Guaranty Documents are the legal, 
  

 Page 13 

 valid, and binding obligations of Borrower and Bad Toys Guarantor, respectively, and are enforceable in accordance with
their terms against Borrower and Guarantor, respectively and jointly, severally, and independently. 
  
 Guarantor Bad Toys has no defenses, counterclaims, setoffs, recoupments, or other adverse claims or causes of action of any kind existing with respect to
the indebtedness owing by Borrower to GECC under the GECC Documents, or with respect to the validity, perfection, priority, and enforceability of the Bad Toys Guaranty Documents and any and all rights and interests granted therein to GECC. The Bad
Toys Guaranty Documents are hereby ratified and confirmed in all respects. 
  
 Guarantor Bad Toys acknowledges that GECC is entering into the 11/1/05 Agreement and agreeing to the provisions contained therein in reliance on the truth and accuracy of the representations and
warranties in this Consent And Agreement Of Guarantor Bad Toys. Despite any past or future acceptance of late or partial installment payments, any prior reinstatement, any prior negotiations, or any other forbearance of any kind by GECC, time
remains of the essence of the Bad Toys Guaranty Documents, the GECC Documents, and the 11/1/05 Agreement. 
  
 Guarantor Bad Toys agrees that this Consent And Agreement Of Guarantor Bad Toys may be executed in one or more counterparts, each of which will be deemed
an original and all of which together will constitute one and the same document. Signature pages may be detached from the counterparts and attached to a single copy of this Consent And Agreement Of Guarantor to form one document. 
  
 DATED as of the date of the 11/1/05 Agreement. 
  

			
	 BAD TOYS HOLDING, INC.,

	 A NEVADA CORPORATION

		
	 By:
	 	 /s/ Larry N. Lunan

	 Its:
	 	President

  

 Page 14 

 Schedule 1 to Forbearance Agreement No. 5 
  

																	
	 Payroll Tax Analysis
	  	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 
	 Approx. Balance due 9/30/04
	  	 	  	$	1,800,000.00	 	 	Per IRS letter	  	 	 	 	 	 	 	 
						
	 	  	Liability Date

	  	 	 	 	Payment Date

	  	 	 	 	 	 
	 	  	10/01/04	  	$	119,906.42	 	 	 	  	 	 	 	 	 	 	 
	 	  	10/08/04	  	$	67,277.57	 	 	 	  	 	 	 	 	 	 	 
	 	  	10/15/04	  	$	115,195.20	 	 	 	  	 	 	 	 	 	 	 
	 	  	10/22/04	  	$	64,519.30	 	 	 	  	 	 	 	 	 	 	 
	 	  	10/29/04	  	$	116,058.56	 	 	 	  	 	 	 	 	 	 	 
	 	  	11/05/04	  	$	67,371.74	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	$	(67,371.74	)	 	11/10/2004	  	 	 	 	 	 	 	 
	 	  	11/12/04	  	$	126,126.26	 	 	 	  	 	 	 	 	 	 	 
	 	  	11/19/04	  	$	65,617.24	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	$	(65,617.24	)	 	11/23/2004	  	 	 	 	 	$	(132,711.47	)
	 	  	11/26/04	  	$	121,264.40	 	 	 	  	 	 	 	 	 	 	 
	 	  	12/03/04	  	$	64,840.77	 	 	 	  	 	 	 	 	 	 	 
	 	  	12/10/04	  	$	121,406.94	 	 	 	  	 	 	 	 	 	 	 
	 	  	12/17/04	  	$	62,153.03	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	$	(62,153.03	)	 	12/22/2004	  	 	 	 	 	 	 	 
	 	  	12/24/04	  	$	122,074.16	 	 	 	  	 	 	 	 	 	 	 
	 	  	12/31/04	  	$	61.875.52	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	$	(61,875.52	)	 	1/5/2005	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 
	 	  	Due at 12/31/04	  	$	2,838,669.58	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 
	 Additional Payments
	  	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	$	(200,183.99	)	 	01/21/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(300,000.00	)	 	02/22/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	01/06/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	01/31/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	03/10/05	  	$	(675,183.99	)	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	04/07/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	04/27/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	06/02/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	07/01/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	08/01/05	  	 	 	 	 	 	 	 
	 	  	 	  	$	(25,000.00	)	 	09/15/05	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 
	 	  	Bal forward 2004	  	$	2,113,485.59	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 
						
	 2005
	  	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 
						
	 	  	Liability Date

	  	 	 	 	Payment Date

	  	 	 	 	 	 
	 January
	  	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 
	 	  	1/7/05	  	 	124,388.71	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(123,316.29	)	 	1/14/05	  	 	 	 	 	 	 	 
	 	  	1/14/05	  	 	73,240.30	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(73,234.10	)	 	1/19/05	  	 	 	 	 	 	 	 
	 	  	1/21/05	  	 	94,443.88	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(94,015.62	)	 	1/27/05	  	 	 	 	 	 	 	 
	 	  	1/28/05	  	 	80,041.48	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(79,804.54	)	 	2/4/05	  	 	 	 	 	 	 	 
	 	  	 	  	 	(1,742.81	)	 	2/15/05	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 
	 	  	Bal due Jan	  	 	1.01	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 
	 February
	  	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 
	 	  	2/4/05	  	 	88,885.16	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(88,885.35	)	 	2/10/05	  	 	 	 	 	 	 	 
	 	  	2/11/05	  	 	94,698.37	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(94,698.91	)	 	2/17/05	  	 	 	 	 	 	 	 
	 	  	2/18/05	  	 	92,140.46	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(92,916.80	)	 	2/23/05	  	 	 	 	 	 	 	 
	 	  	2/25/05	  	 	91,219.32	 	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	 	(91,157.04	)	 	3/2/05	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 
	 	  	Bal due Feb	  	 	(714.78	)	 	 	  	 	 	 	 	 	 	 
	 	  	 	  	
	
	
	 	 	  	 	 	 	 	 	 	 

													
	 March
	  	 	  	 	 	 	 	 	  	 	  	 
	 	  	3/4/05	  	 	89,658.13	 	 	 	  	 	  	 
	 	  	 	  	 	(89,530.03	)	 	3/9/05	  	 	  	 
	 	  	3/11/05	  	 	95,851.88	 	 	 	  	 	  	 
	 	  	 	  	 	(95,803.77	)	 	3/17/05	  	 	  	 
	 	  	3/18/05	  	 	92,656.45	 	 	 	  	 	  	 
	 	  	 	  	 	(92,536.70	)	 	3/25/05	  	 	  	 
	 	  	3/25/05	  	 	92,239.92	 	 	 	  	 	  	 
	 	  	 	  	 	(92,290.52	)	 	4/11/05	  	 	  	 
	 	  	 	  	 	(246.52	)	 	4/15/05	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 	  	Bal due Mar	  	 	(1.16	)	 	 	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 April
	  	 	  	 	 	 	 	 	  	 	  	 
	 	  	4/1/05	  	 	97,089.38	 	 	 	  	 	  	 
	 	  	 	  	 	(97,089.67	)	 	4/26/05	  	 	  	 
	 	  	4/8/05	  	 	98,306.98	 	 	 	  	 	  	 
	 	  	 	  	 	(98,307.46	)	 	4/28/05	  	 	  	 
	 	  	4/15/05	  	 	96,087.33	 	 	 	  	 	  	 
	 	  	 	  	 	(96,087.70	)	 	5/10/05	  	 	  	 
	 	  	4/22/05	  	 	90,919.41	 	 	 	  	 	  	 
	 	  	4/29/05	  	 	99,748.92	 	 	 	  	 	  	 
	 	  	 	  	 	(193,522.21	)	 	5/16/05	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 	  	        Bal due Apr	  	 	(2,855.01	)	 	 	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 May
	  	 	  	 	 	 	 	 	  	 	  	 
	 	  	05/06/05	  	$	94,810.16	 	 	 	  	 	  	 
	 	  	05/13/05	  	$	98,580.94	 	 	 	  	 	  	 
	 	  	05/20/05	  	$	88,963.40	 	 	 	  	 	  	 
	 	  	05/27/05	  	$	101,208.85	 	 	 	  	 	  	 
	 	  	 	  	$	(94,810.16	)	 	7/29/05	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 	  	Bal due May	  	$	288,753.19	 	 	 	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 June
	  	 	  	 	 	 	 	 	  	 	  	 
	 	  	06/03/05	  	$	90,964.04	 	 	 	  	 	  	 
	 	  	06/10/05	  	$	105,399.59	 	 	 	  	 	  	 
	 	  	06/17/05	  	$	88,602.39	 	 	 	  	 	  	 
	 	  	06/24/05	  	$	104,668.48	 	 	 	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 	  	Bal due June	  	$	389,634.50	 	 	 	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 July
	  	 	  	 	 	 	 	 	  	 	  	 
	 	  	07/01/05	  	$	91,458.62	 	 	 	  	 	  	 
	 	  	07/08/05	  	$	103,765.93	 	 	 	  	 	  	 
	 	  	07/15/05	  	$	92,704.33	 	 	 	  	 	  	 
	 	  	07/22/05	  	$	103,354.92	 	 	 	  	 	  	 
	 	  	07/29/05	  	$	102,341.98	 	 	 	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 
	 	  	Bal due July	  	$	493,625.78	 	 	 	  	 	  	 
	 	  	 	  	
	
	
	 	 	  	 	  	 

													
	 August
	  	 	  	 	 	  	 	 	  	 	  	 
	 	  	8/5/2005	  	$	104,168.27	  	 	 	  	 	  	 
	 	  	8/12/2005	  	$	101,734.34	  	 	 	  	 	  	 
	 	  	8/19/2005	  	$	102,345.72	  	 	 	  	 	  	 
	 	  	8/26/2005	  	$	97,100.65	  	 	 	  	 	  	 
						
	 	  	 	  	$	(103,698.68)	  	 	8/24/05	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 
	 	  	 	  	$	301,650.30	  	 	 	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 
	 September
	  	 	  	 	 	  	 	 	  	 	  	 
	 	  	9/2/2005	  	$	102,717.81	  	 	 	  	 	  	 
	 	  	9/9/2005	  	$	96,587.69	  	 	 	  	 	  	 
	 	  	9/16/2005	  	$	120,899.09	  	 	 	  	 	  	 
	 	  	9/23/2005	  	$	96,917.40	  	 	 	  	 	  	 
	 	  	9/30/2005	  	$	106,389.11	  	 	 	  	 	  	 
	 	  	 	  	$	(102,717.81)	  	 	9/7/2005	  	 	  	 
	 	  	 	  	$	(96,587.69)	  	 	9/14/2005	  	 	  	 
	 	  	 	  	$	(120,899.09)	  	 	9/21/2005	  	 	  	 
	 	  	 	  	$	(97,388.65)	  	 	9/28/2005	  	 	  	 
	 	  	 	  	$	(106,389.11)	  	 	Holding	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 
	 	  	 	  	$	(471.26)	  	 	 	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 
	October	  	 	  	 	 	  	 	 	  	 	  	 
	 	  	10/7/2005	  	$	98,416.40	  	 	 	  	 	  	 
	 	  	10/14/2005	  	$	102,166.70	  	 	 	  	 	  	 
	 	  	10/21/2005	  	$	92,884.51	  	 	 	  	 	  	 
	 	  	10/28/2005	  	 	 	  	 	 	  	 	  	 
						
	 	  	 	  	$	(96,416.40)	  	 	10/24/2005	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 
	 	  	 	  	$	195,150.21	  	 	 	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 
	Total Due 2005	  	$	1,664,772.79	  	 	 	  	 	  	 
	Bal on 2004 roll forward	  	$	2,113,485.59	  	 	 	  	 	  	 
	Penalties and Interest/Levy	  	$	251,748.97	  	$	2,365,234.56	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 
	 	  	 	  	$	4,030,007.35	  	 	 	  	 	  	 
	 	  	 	  	
	
	  	 	 	  	 	  	 

 SCHEDULE 2 
 (page 1 of 2) 
 Forbearance Agreements 
  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

 Page 15 

 SCHEDULE 2 
 (page 2 of 2) 
 Forbearance Agreement 
  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	23.	Forbearance Agreement No. 3 between GECC and Borrower dated as of September 1, 2005 (the “91/05 Forbearance Agreement”). 

  

	24.	Forbearance Agreement No. 4, between GECC and Borrower dated as of October 1, 2005 (the “10/1/05 Forbearance Agreement”). 

  

 Page 16Form of Note

 Exhibit 4.1 
  
 Form of Note 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE ‘SECURITIES ACT”), AS AMENDED, OR ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, THIS NOTE
MAY ONLY BE SOLD OR OTHERWISE TRANSFERRED TO A “PERMITTED TRANSFEREE” (AS DEFINED HEREIN) OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR IN A TRANSACTION EXEMPT FROM THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
  
 THE INDEBTEDNESS
EVIDENCED BY THIS INSTRUMENT IS SUBORDINATED TO THE PRIOR PAYMENT IN FULL OF SENIOR INDEBTEDNESS (AS DEFINED BELOW) TO THE EXTENT PROVIDED HEREIN. 
  
 STEREOTAXIS, INC. 
 TERM NOTE

  

			
	 $                    
	  	                        ,
200  

 St. Louis, Missouri 
  
 1. General. Stereotaxis, Inc., a Delaware corporation (the “Company”), for value received, hereby promises
to pay to the order of                                 (the “Holder”)
the principal sum of                                 Dollars
($            ), on the date (the “Maturity Date”) which is the earlier of (i) May 10, 2006, or (ii) the date upon which the Company obtains up to Thirty
Million Dollars ($30,000,000) of Strategic Financing (as such term is defined in the Purchase Agreement referred to below), in such coin or currency of the United States of America as at the time of payment shall be legal tender therein for the
payment of public and private debts, and to pay interest on the unpaid balance of the principal hereof from the date hereof, at the times and in the amounts as provided in that certain Note and Warrant Purchase Agreement between the Company and the
Holder and certain other lenders set forth therein, dated November 10, 2005, as the same may from time to time be amended, modified or supplemented (the “Purchase Agreement”); provided that the Company shall have the option, pursuant
to the terms of the Purchase Agreement, to extend the Maturity Date to November 10, 2006. Notice of extension of the Maturity Date shall be given by the Company by mail and shall be mailed to the Holder not less than 30 days prior to the date
fixed for such Maturity Date extension. All payments of principal and interest on this Note shall be made at the offices of the Company. In the event that the principal amount of this Note is not paid in full when such amount becomes due and
payable, interest at the rate of [            ] percent ([        ]%) (the “Default Rate”) shall
continue to accrue on the balance of any unpaid principal until such balance is paid. 
  

 1 

 This Note is issued in connection with the Purchase Agreement and the Holder is subject to certain
restrictions set forth in this Note and the Purchase Agreement and shall be entitled to certain rights and privileges set forth in the same. 
  
 2. Optional Prepayment. The Company may at any time, prepay the unpaid principal amount of this Note, or any part thereof, without penalty or
premium, but with interest accrued to the date fixed for prepayment. Notice of prepayment shall be given by the Company by mail and shall be mailed to the Holder not less than 15 days prior to the date fixed for prepayment. Upon giving of notice of
prepayment as aforesaid, this Note (or the portion thereof to be prepaid, as the case may be) shall on the prepayment date specified in such notice become due and payable; and from and after the prepayment date so specified (unless the Company shall
default in making such prepayment) interest on this Note (or the portion thereof to be prepaid, as the case may be) shall cease to accrue and, on presentation and surrender hereof to the Company for cancellation, this Note (or the portion thereof to
be prepaid as the case may be) shall be paid by the Company at the prepayment price aforesaid. 
  
 3. Events of Default. If any of the events specified in this Section 3 shall occur (herein individually referred to as an “Event of Default”), the Holder of the Note may, so long as such
condition exists, declare the entire principal and unpaid accrued interest hereon immediately due and payable, by notice in writing to the Company: 
  
 (i) Default in the payment of the principal and unpaid accrued interest of this Note when due and payable if such default is not cured by
the Company within ten (10) days after the Holder has given the Company written notice of such default; or 
  
 (ii) The institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to institution of
bankruptcy or insolvency proceedings against it or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Code, or any other applicable federal or state law, or the consent by it to the
filing of any such petition or the appointment of a receiver, liquidator, assignee, trustee or other similar official of the Company, or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or
the taking of corporate action by the Company in furtherance of any such action; or 
  
 (iii) If, within sixty (60) days after the commencement of an action against the Company (and service of process in connection
therewith on the Company) seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been resolved in favor of the Company or all
orders or proceedings thereunder affecting the operations or the business of the Company stayed, or if the stay of any such order or proceeding shall thereafter be set aside, or if, within sixty (60) days after the appointment without the
consent or acquiescence of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the Company, such appointment shall not have been vacated. 
  

 2 

 At any time that the unpaid principal balance of this Note, together with all accrued and unpaid interest
owing thereon, shall have become due and payable in full pursuant to this Section 3, the aggregate of all such sums shall thereafter bear interest, both before and after judgment, at the Default Rate until such sums have been paid. In such
event, all payments made thereafter shall be applied first to unpaid interest hereon, then to the principal of this Note. 
  
 4. Subordination. The indebtedness evidenced by this Note is hereby expressly subordinated, to the extent and in the manner hereinafter set
forth, in right of payment to the prior payment in full of all the Company’s Senior Indebtedness, as hereinafter defined. 
  
 4.1. Senior Indebtedness. As used in this Note, the term “Senior Indebtedness” shall mean the principal of and unpaid accrued interest
on: (i) all indebtedness of the Company to Silicon Valley Bank or its affiliates or any other banks, commercial finance lenders or similar financial institutions, which is for money borrowed by the Company (whether or not secured)
(“Financial Institution Debt”), and (ii) any such indebtedness or any debentures, notes or other evidence of indebtedness issued in exchange for or to refinance such Financial Institution Debt, or any indebtedness arising from the
satisfaction of such Financial Institution Debt by a guarantor. 
  
 4.2. Default on Senior Indebtedness. If there should occur any receivership, insolvency, assignment for the benefit of creditors, bankruptcy, reorganization or arrangements with creditors (whether or not pursuant to bankruptcy
or other insolvency laws), sale of all or substantially all of the assets, dissolution, liquidation or any other marshalling of the assets and liabilities of the Company, then (i) no amount shall be paid by the Company in respect of the
principal of or interest on this Note at the time outstanding, unless and until the principal of and interest on the Senior Indebtedness then outstanding shall be paid in full, and (ii) no claim or proof of claim shall be filed with the Company
by or on behalf of the Holder of this Note that shall assert any right to receive any payments in respect of the principal of and interest on this Note, except subject to the payment in full of the principal of and interest on all of the Senior
Indebtedness then outstanding. If there occurs an event of default that has been declared in writing with respect to any Senior Indebtedness, or in the instrument under which any Senior Indebtedness is outstanding, permitting the holder of such
Senior Indebtedness to accelerate the maturity thereof, then, unless and until such event of default shall have been cured or waived or shall have ceased to exist, or all Senior Indebtedness shall have been paid in full, no payment shall be made in
respect of the principal of or interest on this Note. 
  
 4.3. Effect of Subordination. Subject to the rights, if any, of the holders of Senior Indebtedness under this Section 4 to receive cash, securities or other properties otherwise payable or deliverable to the Holder of
this Note, nothing contained in this Section 4 shall impair, as between the Company and the Holder, the obligation of the Company, subject to the terms and conditions hereof, to pay to the Holder the principal hereof and interest hereon as and
when the same become due and payable, or shall prevent the Holder of this Note, upon default hereunder, from exercising all rights, powers and remedies otherwise provided herein or by applicable law. 
  

 3 

 4.4. Subrogation. Subject to the payment in full of all Senior Indebtedness and until this
Note shall be paid in full, the Holder shall be subrogated to the rights of the holders of Senior Indebtedness (to the extent of payments or distributions previously made to such holders of Senior Indebtedness pursuant to the provisions of
Section 4.2 above) to receive payments or distributions of assets of the Company applicable to the Senior Indebtedness. No such payments or distributions applicable to the Senior Indebtedness shall, as between the Company and its creditors,
other than the holders of Senior Indebtedness and the Holder, be deemed to be a payment by the Company to or on account of this Note; and for the purposes of such subrogation, no payments or distributions to the holders of Senior Indebtedness to
which the Holder would be entitled except for the provisions of this Section 4 shall, as between the Company and its creditors, other than the holders of Senior Indebtedness and the Holder, be deemed to be a payment by the Company to or on
account of the Senior Indebtedness. 
  
 4.5.
Undertaking. By its acceptance of this Note, the Holder agrees to execute and deliver such documents as may be reasonably requested from time to time by the Company or the lender of any Senior Indebtedness in order to implement the foregoing
provisions of this Section 4. 
  
 4.6.
Subordination of Junior Indebtedness. In connection with the Company’s incurrence of any future convertible indebtedness or other indebtedness of the Company in respect of borrowed money evidenced by bonds, notes, debentures or similar
instruments or letters of credit that is other than Financial Institution Debt (“Junior Indebtedness”), the Company agrees that any such Junior Indebtedness shall be subordinate to this Note on substantially the same terms as are provided
under this Article 4. 
  
 5. Warrant Agreement.
Warrants shall be issued by the Company pursuant to the Purchase Agreement, which together with the Form of Warrant to be issued thereunder shall govern all aspects of the Warrants, including without limitation the term, exercise price and all
adjustments to the number of shares of common stock issuable upon exercise thereof. 
  
 6. Assignment. Subject to the restrictions on transfer described in Section 12 below, the rights and obligations of the Company and the Holder of this Note shall be binding upon and benefit the
successors, assigns, heirs, administrators and transferees of the parties. 
  
 7. Waiver and Amendment. Any provision of this Note may be amended, waived or modified pursuant to the terms of the Purchase Agreement. 
  
 8. Heading; References. All headings used herein are used for convenience only and shall not be used to
construe or interpret this Note. Except where otherwise indicated, all references herein to Sections refer to Sections hereof. 
  

 4 

 9. Notices. Any notice, request or other communication required or permitted hereunder
shall be in writing and shall be deemed to have been duly given if personally delivered or if faxed or mailed by registered or certified mail, postage prepaid, at the respective addresses of the parties as set forth herein. Any party hereto may by
notice so given change its address for future notice hereunder. Notice shall conclusively be deemed to have been given when personally delivered or when deposited in the mail or faxed in the manner set forth above and shall be deemed to have been
received when delivered. 
  
 10. No Stockholder
Rights. Nothing contained in this Note shall be construed as conferring upon the Holder or any other person the right to vote or to consent or to receive notice as a stockholder in respect of meetings of stockholders for the election of
directors of the Company or any other matters or any rights whatsoever as a stockholder of the Company. 
  
 11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, excluding that
body of law relating to conflict of laws. 
  
 12.
Transfer Restrictions. The Holder agrees that in no event will it make a transfer or disposition of any of this Note (other than pursuant to an effective registration statement under the 1933 Act), unless and until (i) it shall have
notified the Company of the proposed disposition and shall have furnished the Company with a statement of the circumstances surrounding the disposition and assurance that the proposed disposition is in compliance with all applicable laws, and
(ii) if reasonably requested by the Company, at the expense of such Holder or its transferee, it shall have furnished to the Company an opinion of counsel, reasonably satisfactory to the Company, to the effect that such transfer may be made
without registration under the 1933 Act. Notwithstanding the foregoing, no formal notice or opinion of counsel shall be required for the transfer by an Holder to: (x) any partner of a Holder or to a retired partner of a Holder, who retires
after the date of this Agreement, (y) the estate of any such partner or a retired partner or for the transfer by gift, will or intestate succession of any partner to his spouse or lineal descendants or ancestors or (z) any entity which is
a wholly-owned subsidiary of the Holder or which is under common control with the Holder; provided, however, in all cases where no legal opinion is required that the transferee shall agree in writing to be subject to the terms of this Agreement to
the same extent as if it were the original Holder hereunder. 
  
 [THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK] 
  

 5 

 IN WITNESS WHEREOF, the Company has caused this Note to be issued this     
day of November, 2005. 
  

			
	STEREOTAXIS, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

					
	Name of Holder:
		
	Address:	 	  

	 	 	  

	 	 	  

  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]