Document:

crge_ex103.htm

  
 EXHIBIT 10.3
 COMMERCIAL SECURITY AGREEMENT
  
  	 Principal 
 $500.000;00
	 Loan Date
 09-15-2006
	 Maturity 
 09-15-2007
	 Loan No 
 40000215 
	 Call / Coll
 302
	 Account
	 Officer
 ECW
	 Initials
  

	 References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item.
 Any item above containing “***” has been omitted due to text length limitations.

 
    
  	 Grantor:
	 BW Electrical Services, LLC 
 209 Homestead Road, Unit 2
 Hillsborough, NJ 08844
	 Lender:
	 Team Capital Bank
 Flemington Office
 (908) 782-3720
 110 Main Street
 Flemington, NJ 08822

 
   
 DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code:
  
 Agreement. The word "Agreement" means this Commercial Security Agreement, as this Commercial Security Agreement may be amended or modified from time to time, together with all exhibits and schedules attached to this Commercial Security Agreement from time to time.
  
 Borrower. The word "Borrower" means BW Electrical Services, LLC and includes all co-signers and co-makers signing the Note and all their successors and assigns.
  
 Collateral. The word "Collateral" means all of Grantor's right, title and interest in and to all the Collateral as described in the Collateral Description section of this Agreement.
  
 Default. The word "Default" means the Default set forth in this Agreement in the section titled "Default".
  
 Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., the New Jersey Industrial Site Recovery Act, NJSA Section 13:1K-6 ("ISRA"), the New Jersey Spill Compensation and Control Act, NJSA 58:10-23.11, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.
  
 Event of Default. The words "Event of Default" mean any of the events of default set forth in this Agreement in the default section of this Agreement.
  
 Grantor. The word "Grantor" means BW Electrical Services, LLC.
  
 Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness,
  
 Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.
  
 Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.
  
 Indebtedness. The word "Indebtedness" means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other indebtedness and costs and expenses for which Grantor is responsible under this Agreement or under any of the Related Documents. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Agreement.
  
 Lender. The word "Lender" means Team Capital Bank, its successors and assigns.
  
 Note. The word "Note" means the Note executed by BW Electrical Services, LLC in the principal amount of $500,000.00 dated September 15, 2006, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note or credit agreement.
  
 Property. The word "Property" means all of Grantor's right, title and interest in and to all the Property as described in the "Collateral Description" section of this Agreement.
  
 Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements end documents, whether now or hereafter existing, executed in connection with the Indebtedness.
  
 THIS COMMERCIAL SECURITY AGREEMENT dated September 15, 2006, is made and executed between BW Electrical Services. LLC ("Grantor") and Team Capital Bank ("Lender").
  
 GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender a security interest in the Collateral to secure the Indebtedness and agrees that Lender shall have the rights stated in this Agreement with respect to the Collateral, in addition to all other rights which Lender may have by law.
  
 COLLATERAL DESCRIPTION. The word "Collateral" as used in this Agreement means the following described property, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever located, in which Grantor is giving to Lender a security interest for the payment of the Indebtedness and performance of all other obligations under the Note and this Agreement:
  
 All inventory, equipment, accounts (including but not limited to all health-care-insurance receivables), chattel paper, instruments (including but not limited to all promissory notes), letter-of-credit rights, letters of credit, documents, deposit accounts, investment property, money, other rights to payment and performance, and general intangibles (including but not limited to all software and ell payment intangibles); all oil, gas and other minerals before extraction; all oil, gas, other minerals and accounts constituting es-extracted collateral; all fixtures; all timber to be cut; all attachments, accessions, accessories, fittings, increases, tools, parts, repairs, supplies, and commingled goods relating to the foregoing property, and all additions, replacements of and substitutions for all or any part of the foregoing property; all insurance refunds relating to the foregoing property; all good will relating to the foregoing property; all records and data and embedded software relating to the foregoing property, and all equipment, inventory and software to utilize, create, maintain end process any such records and data on electronic media; and all supporting obligations relating to the foregoing property; all whether now existing or hereafter arising, whether now owned or hereafter acquired or whether now or hereafter subject to any rights in the foregoing property; and all products and proceeds (including but not limited to all insurance payments) of or relating to the foregoing property.
  
  
  	 
	
	

	 

 
  
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 In addition, the word "Collateral" also includes all the following, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever located:
  
 (A) All accessions, attachments, accessories, tools, parts, supplies, replacements of and additions to any of the collateral described herein, whether added now or later.
  
 (B) All products and produce of any of the property described in this Collateral section.
  
 (C) All accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sole, lease, consignment or other disposition of any of the property described in this Collateral section.
  
 (D) All proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described in this Collateral section, and sums due from a third party who has damaged or destroyed the Collateral or from that party's insurer, whether due to judgment, settlement or other process.
  
 (E) All records and data relating to any of the property described in this Collateral section, whether in the form of a writing, photograph, microfilm, microfiche, or electronic media, together with ell of Grantor'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.
  
 CROSS-COLLATERALIZATION. In addition to the Note, this Agreement secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable.
  
 RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Grantor's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Grantor holds jointly with someone else and all accounts Grantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Grantor authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the Indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.
  
 GRANTOR'S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With respect to the Collateral, Grantor represents and promises to Lender that:
  
 Perfection of Security Interest. Grantor agrees to take whatever actions are requested by Lender to perfect and continue Lender's security interest in the Collateral. Upon request of Lender, Grantor will deliver to Lender any and all of the documents evidencing or constituting the Collateral, and Grantor will note Lender's interest upon any and all chattel paper and instruments if not delivered to Lender for possession by Lender. This is a continuing Security Agreement and will continue in effect even though all or any part of the Indebtedness is paid in full and even though for a period of time Grantor may not be indebted to Lender.
  
 Notices to Lender. Grantor will promptly notify Lender in writing of Lender's address shown above (or such other addresses as Lender may designate from time to time) prior to any (1) change in Grantor's name; (2) change in Grantor's assumed business name(s); (3) change in the management or in the members or managers of the limited liability company Grantor; (4) change in the authorized signer(s); (5) change in Grantor's principal office address; (6) change in Grantor's state of organization; (7) conversion of Grantor to a new or different type of business entity; or (8) change in any other aspect of Grantor that directly or indirectly relates to any agreements between Grantor and Lender. No change in Grantor's name or state of organization will take effect until after Lender has received notice.
  
 No Violation. The execution and delivery of this Agreement will not violate any law or agreement governing Grantor or to which Grantor is a party, and its membership agreement does not prohibit any term or condition of this Agreement.
  
 Enforceability of Collateral. To the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the Uniform Commercial Code, the Collateral is enforceable in accordance with its terms, is genuine, and fully complies with all applicable laws and regulations concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any account becomes subject to a security interest in favor of Lender, the account shall be a good and valid account representing an undisputed, bona fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or previously shipped or delivered pursuant to a contract of sale, or for services previously performed by Grantor with or for the account debtor. So long as this Agreement remains in effect, Grantor shall not, without Lender's prior written consent, compromise, settle, adjust, or extend payment under or with regard to any such Accounts. There shall be no setoffs or counterclaims against any of the Collateral, and no agreement shall have been made under which any deductions or discounts may be claimed concerning the Collateral except those disclosed to Lender in writing.
  
 Location of the Collateral. Except in the ordinary course of Grantor's business, Grantor agrees to keep the Collateral (or to the extent the Collateral consists of intangible property such as accounts or general intangibles, the records concerning the Collateral) at Grantor's address shown above or at such other locations as are acceptable to Lender. Upon Lender's request, Grantor will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including without limitation the following: (1) all real property Grantor owns or is purchasing; (2) all real property Grantor is renting or leasing; (3) all storage facilities Grantor owns, rents, leases, or uses; and (4) all other properties where Collateral is or may be located.
  
 Removal of the Collateral. Except in the ordinary course of Grantor's business, including the sales of Inventory, Grantor shall not remove the Collateral from its existing location without Lender's prior written consent. To the extent that the Collateral consists of vehicles, or other titled property, Grantor shall not take or permit any action which would require application for certificates of title for the vehicles outside the State of New Jersey, without Lender's prior written consent. Grantor shall, whenever requested, advise Lender of the exact location of the Collateral.
  
  	 
	
	

	 

 
  
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 Transactions Involving Collateral. Except for inventory sold or accounts collected in the ordinary course of Grantor's business, or as otherwise provided for in this Agreement, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral. While Grantor is not in default under this Agreement, Grantor may sell inventory, but only in the ordinary course of its business and only to buyers who qualify as a buyer in the ordinary course of business. A sale in the ordinary course of Grantor's business does not include a transfer in partial or total satisfaction of a debt or any bulk sale. Grantor shall not pledge, mortgage, encumber or otherwise permit the Collateral to be subject to any lien, security interest, encumbrance, or charge, other than the security interest provided for in this Agreement, without the prior written consent of Lender. This includes security interests even if junior in right to the security interests granted under this Agreement. Unless waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender and shall not be commingled with any other funds; provided however, this requirement shall not constitute consent by Lender to any sale or other disposition. Upon receipt, Grantor shall immediately deliver any such proceeds to Lender.
  
 Title. Grantor represents and warrants to Lender that Grantor holds good and marketable title to the Collateral, free and clear of all liens and encumbrances except for the lien of this Agreement. No financing statement covering any of the Collateral is on file in any public office other than those which reflect the security interest created by this Agreement or to which Lender has specifically consented. Grantor shall defend Lender's rights in the Collateral against the claims and demands of all other persons.
  
 Repairs and Maintenance. Grantor agrees to keep and maintain, and to cause others to keep and maintain, the Collateral in good order, repair and condition at all times while this Agreement remains in effect. Grantor further agrees to pay when due all claims for work done on, or services rendered or materiel furnished in connection with the Collateral so that no lien or encumbrance may ever attach to or be filed against the Collateral.
  
 Inspection of Collateral. Lender and Lender's designated representatives and agents shall have the right at all reasonable times to examine and inspect the Collateral wherever located.
  
 Taxes, Assessments and Liens. Grantor will pay when due all taxes, assessments and liens upon the Collateral, its use or operation, upon this Agreement, upon any promissory note or notes evidencing the Indebtedness, or upon any of the other Related Documents. Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding to contest the obligation to pay and so long as Lender's interest in the Collateral is not jeopardized in Lender's sole opinion. If the Collateral is subjected to a lien which is not discharged within fifteen (15) days, Grantor shall deposit with Lender cash, a sufficient corporate surety bond or other security satisfactory to Lender in an amount adequate to provide for the discharge of the lien plus any interest, costs, attorneys' fees or other charges that could accrue as a result of foreclosure or sale of the Collateral. In any contest Grantor shall defend itself and Lender and shall satisfy any final adverse judgment before enforcement against the Collateral. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Grantor further agrees to furnish Lender with evidence that such taxes, assessments, and governmental and other charges have been paid in full and in a timely manner. Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding to contest the obligation to pay and so long as Lender's interest in the Collateral is not jeopardized.
  
 Compliance with Governmental Requirements. Grantor shall comply promptly with all laws, ordinances, rules and regulations of all governmental authorities, now or hereafter in effect, applicable to the ownership, production, disposition, or use of the Collateral, including all laws or regulations relating to the undue erosion of highly-erodible land or relating to the conversion of wetlands for the production of an agricultural product or commodity. Grantor may contest in good faith any such law, ordinance or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Lender's interest in the Collateral, in Lender's opinion, is not jeopardized.
  
 Hazardous Substances. Grantor represents and warrants that the Collateral never has been, and never will be so long as this Agreement remains a lien on the Collateral, used in violation of any Environmental Laws or for the generation, manufacture, storage, transportation, treatment, disposal, release or threatened release of any Hazardous Substance. The representations and warranties contained herein are based on Grantor's due diligence In investigating the Collateral for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any Environmental Laws, and (2) agrees to indemnify and hold harmless Lender against any and all claims and losses resulting from a breach of this provision of this Agreement. This obligation to indemnify shall survive the payment of the Indebtedness and the satisfaction of this Agreement.
  
 Maintenance of Casualty Insurance. Grantor shall procure and maintain all risks insurance, including without limitation fire, theft and liability coverage together with such other insurance as Lender may require with respect to the Collateral, in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least fifteen (15) days' prior written notice to Lender and not including any disclaimer of the insurer's liability for failure to give such a notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. In connection with all policies covering assets in which Lender holds or is offered a security interest, Grantor will provide Lender with such loss payable or other endorsements as Lender may require. If Grantor at any time fails to obtain or maintain any insurance as required under this Agreement, Lender may (but shall not be obligated to) obtain such insurance as Lender deems appropriate, including if Lender so chooses "single interest insurance," which will cover only Lender's interest in the Collateral.
  
 Application of Insurance Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Collateral, whether or not such casualty or loss is covered by insurance. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. All proceeds of any insurance on the Collateral, including accrued proceeds thereon, shall be held by Lender as part of the Collateral. If Lender consents to repair or replacement of the damaged or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration. If Lender does not consent to repair or replacement of the Collateral, Lender shall retain a sufficient amount of the proceeds to pay all of the Indebtedness, and shall pay the balance to Grantor. Any proceeds which have not been disbursed within six (6) months after their receipt and which Grantor has not committed to the repair or restoration of the Collateral shall be used to prepay the Indebtedness.
  
 Insurance Reserves. Lender may require Grantor to maintain with Lender reserves for payment of insurance premiums, which reserves shall be created by monthly payments from Grantor of a sum estimated by Lender to be sufficient to produce, at least fifteen (15) days before the premium due date, amounts at least equal to the insurance premiums to be paid. If fifteen (15) days before payment is due, the reserve funds are insufficient, Grantor shall upon demand pay any deficiency to Lender. The reserve funds shall be held by Lender as a general deposit and shall constitute a non-interest-bearing account which Lender may satisfy by payment of the insurance premiums required to be paid by Grantor as they become due. Lender does not hold the reserve funds in trust for Grantor, and Lender is not the agent of Grantor for payment of the insurance premiums required to be paid by Grantor. The responsibility for the payment of premiums shall remain Grantor's sole responsibility.
  
 Insurance Reports. Grantor, upon request of Lender, shall furnish to Lender reports on each existing policy of insurance showing such information as Lender may reasonably request including the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured; (5) the then current value on the basis of which insurance has been obtained and the manner of determining that value; and (6) the expiration date of the policy. In addition, Grantor shall upon request by Lender (however not more often than annually) have an independent appraiser satisfactory to Lender determine, as applicable, the cash value or replacement cost of the Collateral.
  
  	 
	
	

	 

 
  
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 Financing Statements. Grantor authorizes Lender to file a UCC financing statement, or alternatively, a copy of this Agreement to perfect Lender's security interest. At Lender's request, Grantor additionally agrees to sign all other documents that are necessary to perfect, protect, and continue Lender's security interest in the Property. Grantor will pay all filing fees, title transfer fees, and other fees and costs involved unless prohibited by law or unless Lender is required by law to pay such fees and costs. If Grantor changes Grantor's name or address, or the name or address of any person granting a security interest under this Agreement changes, Grantor will promptly notify the Lender of such change.
  
 GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS. Until default and except as otherwise provided below with respect to accounts, Grantor may have possession of the tangible personal property and beneficial use of all the Collateral and may use it in any lawful manner not inconsistent with this Agreement or the Related Documents, provided that Grantor's right to possession and beneficial use shall not apply to any Collateral where possession of the Collateral by Lender is required by law to perfect Lender's security interest in such Collateral, Until otherwise notified by Lender, Grantor may collect any of the Collateral consisting of accounts. At any time and even though no Event of Default exists, Lender may exercise its rights to collect the accounts and to notify account debtors to make payments directly to Lender for application to the Indebtedness, If Lender at any time has possession of any Collateral, whether before or after an Event of Default, Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if Lender takes such action for that purpose as Grantor shall request or as Lender, in Lender's sole discretion, shall deem appropriate under the circumstances, but failure to honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. Lender shell not be required to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain any security interest given to secure the Indebtedness.
  
 LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Collateral or if Grantor fails to comply with any provision of this Agreement or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Agreement or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, et any time levied or placed on the Collateral and paying all costs for insuring, maintaining and preserving the Collateral. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Agreement also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default.
  
 DEFAULT. Each of the following shall constitute an Event of Default under this Agreement:
  
 Payment Default. Grantor fails to make any payment when due under the Indebtedness.
  
 Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor.
  
 Default in Favor of Third Parties. Should Borrower or any Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's or any Grantor's ability to repay the Indebtedness or perform their respective obligations under this Agreement or any of the Related Documents.
  
 False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Agreement or the Related Documents is false or misleading in any materiel respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.
  
 Defective Collateralization. This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any Related Documents to create a valid and perfected security interest or lien) at any time and for any reason.
  
 Insolvency. The dissolution of Grantor (regardless of whether election to continue is made), any member withdraws from the limited liability company, or any other termination of Grantor's existence es a going business or the death of any member, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor.
  
 Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any collateral securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.
  
 Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or Guarantor dies or becomes incompetent or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.
  
 Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired.
  
 Insecurity. Lender in good faith believes itself insecure.
  
 RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Agreement, at any time thereafter, Lender shall have all the rights of a secured party under the New Jersey Uniform Commercial Code. In addition and without limitation, Lender may exercise any one or more of the following rights and remedies:
  
 Accelerate Indebtedness. Lender may declare the entire Indebtedness, including any prepayment penalty which Grantor would be required to pay, immediately due and payable, without notice of any kind to Grantor.
  
  	 
	
	

	 

 
  
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 Assemble Collateral. Lender may require Grantor to deliver to Lender all or any portion of the Collateral and any and all certificates of title and other documents relating to the Collateral. Lender may require Grantor to assemble the Collateral and make it available to Lender at a place to be designated by Lender. Lender also shall have full power to enter upon the property of Grantor to take possession of end remove the Collateral. If the Collateral contains other goods not covered by this Agreement at the time of repossession, Grantor agrees Lender may take such other goods, provided that Lender makes reasonable efforts to return them to Grantor after repossession.
  
 Sell the Collateral. Lender shall have full power to sell, lease, transfer, or otherwise deal with the Collateral or proceeds thereof in Lender's own name or that of Grantor. Lender may sell the Collateral at public auction or private sale. Unless the Collateral threatens to decline speedily in value or is of a type customarily sold on a recognized market, Lender will give Grantor, and other persons as required by law, reasonable notice of the time and place of any public sale, or the time after which any private sale or any other disposition of the Collateral is to be made. However, no notice need be provided to any person who, after Event of Default occurs, enters into and authenticates an agreement waiving that person's right to notification of sale. The requirements of reasonable notice shall be met if such notice is given at least ten (10) days before the time of the sale or disposition. All expenses relating to the disposition of the Collateral, including without limitation the expenses of retaking, holding, insuring, preparing for safe and selling the Collateral, shall become a part of the Indebtedness secured by this Agreement and shall be payable on demand, with interest at the Note rate from dote of expenditure until repaid.
  
 Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Collateral, with the power to protect and preserve the Collateral, to operate the Collateral preceding foreclosure or sale, and to collect the Leases and Rents from the Collateral and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Collateral exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver.
  
 Collect Revenues, Apply Accounts. Lender, either itself or through a receiver, may collect the payments, rents, income, and revenues from the Collateral. Lender may at any time in Lender's discretion transfer any Collateral into Lender's own name or that of Lender's nominee and receive the payments, rents, income, and revenues therefrom and hold the same as security for the Indebtedness or apply it to payment of the Indebtedness in such order of preference as Lender may determine. Insofar as the Collateral consists of accounts, general intangibles, insurance policies, instruments, chattel paper, choses in action, or similar property, Lender may demand, collect, receipt for, settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender may determine, whether or not Indebtedness or Collateral is then due. For these purposes, Lender may, on behalf of and in the name of Grantor, receive, open and dispose of mail addressed to Grantor; change any address to which mail and payments are to be sent; and endorse notes, checks, drafts, money orders, documents of title, instruments and items pertaining to payment, shipment, or storage of any Collateral. To facilitate collection, Lender may notify account debtors and obligors on any Collateral to make payments directly to Lender.
  
 Other Rights and Remedies. Lender shall have all the rights and remedies of a secured creditor under the provisions of the Uniform Commercial Code, as may be amended from time to time. In addition, Lender shall have and may exercise any or all other rights and remedies it may have available at law, in equity, or otherwise.
  
 Election of Remedies. Except as may be prohibited by applicable law, all of Lender's rights and remedies, whether evidenced by this Agreement, the Related Documents, or by any other writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Agreement, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies.
  
 MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Agreement:
  
 Amendments. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.
  
 Attorneys' Fees; Expenses. Grantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement, and Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, end any anticipated post-judgment collection services. Grantor also shall pay all court costs and such additional fees as may be directed by the court.
  
 Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.
  
 Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of New Jersey without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of New Jersey.
  
 Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Hunterdon County, State of New Jersey.
  
 No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shell operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.
  
 Notices. Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, it mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors.
  
  	 
	
	

	 

 
   
  	 Loan No: 40000215
	 COMMERCIAL SECURITY AGREEMENT
 (Continued)
	  
 Page 6

 
  
 Power of Attorney. Grantor hereby appoints Lender as Grantor's irrevocable attorney-in-fact for the purpose of executing any documents necessary to perfect, amend, or to continue the security interest granted in this Agreement or to demand termination of filings of other secured parties. Lender may at any time, and without further authorization from Grantor, file a carbon, photographic or other reproduction of any financing statement or of this Agreement for use as a financing statement. Grantor will reimburse Lender for all expenses for the perfection and the continuation of the perfection of Lender's security interest in the Collateral.
  
 Severability. If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement.
  
 Successors and Assigns. Subject to any limitations stated in this Agreement on transfer of Grantor's interest, this Agreement shall be binding upon and Inure to the benefit of the parties, their successors and assigns. If ownership of the Collateral becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Agreement and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Agreement or liability under the Indebtedness.
  
 Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Agreement shall survive the execution and delivery of this Agreement, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid in full.
  
 Time is of the Essence. Time is of the essence in the performance of this Agreement.
  
 Waive Jury. All parties to this Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party.
  
 GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED SEPTEMBER 15, 2006.
   
  	 GRANTOR:
	  
	  
	  
	  

	  
	  
	  
	  
	  
	  

	 BW ELECTRIC AL SERVICES, LLC
	  
	  
	  
	  

	  
	  
	  
	  
	  
	  

	 By: 
	 
	  
	 By: 
	 
	  

	  
	 Michael S. Wojtowicz, Member of BW Electrical Services, LLC
	  
	  
	 Stephanie Wojtowicz, Member of BW Electrical Services, LLC
	  

	  
	  
	  
	  
	  
	  

	  
	  
	  
	  
	  
	  

 
    
  	  

	 LASER PA0 l•POnp. V.' 5.31.00O04 Cap, Nolan.) rnancla1 Selvitert.. file, 1437, 2000. At ftynit Rawv, 0. . CACKLOW•0 FC TR 34? P0.2crge_ex104.htm

  
 EXHIBIT 10.4
 MODIFICATION OF PROMISSORY NOTE
  
 AND 
  
 LOAN AGREEMENT
  
 This Modification of Promissory Note and Loan Agreement (this “Modification”) is made effective as of the 26th day of May, 2022 by and between PROVIDENT BANK (successor-in-interest to Team Capital) located at 10 Woodbridge Center Drive, Woodbridge, New Jersey 07095 (the “Lender”), and B W ELECTRICAL SERVICES LLC, a New Jersey limited liability company, located at 239 Homestead Road, Suite 2, Hillsborough, NJ, 08844-1913 (the “Borrower”).
  
 R E C I T A L S
  
 WHEREAS, on September 15, 2006, Borrower borrowed from Lender a line of credit loan in the original maximum principal amount of Five Hundred Thousand and 00/100 ($500,000.00) Dollars (the “Loan”) as evidenced by that certain Promissory Note made by Borrower in favor of Lender dated of even date therewith; and
  
 WHEREAS, the Original Note was secured by, among other things, that certain Business Loan Agreement and that certain Security Agreement both dated September 15, 2006 made by Borrower in favor of Lender (respectively the “Original Loan Agreement” and the “Security Agreement”; and
  
 WHEREAS, Borrower and Lender entered into that certain Business Loan Agreement dated June 19, 2007 making certain changes to the Original Note and the Original Loan Agreement as recited therein including, but not limited to, increasing the maximum principal amount of the Loan to One Million and 00/100 ($1,000,000.00) Dollars and extending the Loan’s maturity date; and
  
 WHEREAS, Borrower and Lender entered into that certain Change in Terms Agreement dated August 20, 2015 making additional changes recited to the Original Note and the Original Loan Agreement as recited therein including, but not limited to, increasing the maximum principal amount of the Loan to Two Million and 00/100 ($2,000,000.00) Dollars and extending the Loan’s maturity date; and
  
 WHEREAS, Borrower and Lender entered into that certain Change in Terms Agreement dated May 24, 2017 making additional changes recited to the Original Note and the Original Loan Agreement as recited therein including, but not limited to, increasing the maximum principal amount of the Loan to Three Million and 00/100 ($3,000,000.00) Dollars and extending the Loan’s maturity date; and
  
 WHEREAS, Borrower and Lender entered into that certain Change in Terms Agreement dated June 11, 2019 making additional changes recited to the Original Note and the Original Loan Agreement as recited therein including, but not limited to, extending the Loan’s maturity date; and
  
 WHEREAS, the parties have reviewed the Original Note, as previously modified, amended and extended as recited above, (collectively the “Note”) and the Original Loan Agreement, as previously modified, amended and extended as recited above, (collectively the “Loan Agreement”) and have determined to further extend, amend and modify same as more specifically set forth below in this Modification.
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
  
 1. DEFINED TERMS. Unless otherwise defined in this Modification, all terms used herein as defined terms shall have the applicable meanings ascribed to such terms in the Note, the Loan Agreement, or the Security Agreement, as the case may be.
  
  
 	 
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 2. PRINCIPAL AMOUNT OF EXISTING LOAN. The Borrower acknowledges that the outstanding principal balance due from the Borrower as of May 25th, 2022 under the Loan is Zero and 00/100 Dollars. The Borrower hereby represents, warrants and confirms that there are no set-offs, rights, claims or causes of action of any nature whatsoever which the Borrower has or may assert against the Lender with respect to the Note or the other Loan Documents.
  
 3. MODIFICATIONS. 
  
 (a) Modification to the Note. Effective as and from the date of this Modification, the following modification(s) are hereby made to the Note:
  
 i. Maturity Date. The “Maturity Date” of the Note is hereby revised to be August 1, 2023.
  
 (b) Modifications to the Loan Agreement. Effective as and from the date of this Modification, the following modifications are hereby made to the Loan Agreement:
  
 i. Maturity Date. The “Maturity Date” of the Loan is hereby revised to be August 1, 2023.
  
 ii. Guarantors. The Loan shall be secured by the unlimited and unconditional guarantee of payment and performance of even date herewith of CHARGE ENTERPRISES, INC., a Delaware corporation, and CHARGE INFRASTRUCTURE HOLDINGS, INC., a Delaware corporation, (collectively the “Guarantor”), which guarantees shall replace the guaranties that were previously provided by the existing personal guarantors: Michael Wojtowicz, Stephanie Wojtowicz, and Robert Wojtowicz (collectively, the “Original Guarantors”). Accordingly, the Original Guarantors are hereby released from the Guaranty, and the Guaranty is declared null and void and of no force and effect as to the Original Guarantors, it being understood and agreed that the Original Guarantors, shall not have any further obligation under the Guaranty. This Release is applicable only as to the Original Guarantors. Borrower shall not be affected hereby, and nothing herein shall be construed to release the Borrower of any of its obligations under the Loan. This Release does not represent in any way a satisfaction of the Loan made by the Lender to the Borrower. It is the intention of the parties hereto that, except as otherwise expressly provided herein, this Release shall in no way adversely affect or impair the lien or security interest priority of any instrument securing the Loan. Except for the release of the Original Guarantors, as provided herein, the Loan, Note and the loan documents executed in connection therewith, as modified from time to time, shall remain and are in full force and effect.
  
  
 	 
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 iii. Borrowing Base Certificate. Should borrowing(s) under the Loan exceed One Million Five Hundred Thousand and 00/100 ($1,500,000.00) Dollars, any borrowing over that threshold amount shall require Borrower’s submission to Bank and Bank’s satisfactory review and approval of borrowing base certificate(s) both upon the initial advance request and continuing quarterly thereafter as long as there is an outstanding balance under the Loan. Advance(s) made pursuant to submission(s) of borrowing base certificate(s) shall be limited to seventy five percent (75%) of Borrower’s eligible accounts receivable. The term, “eligible accounts receivable” shall mean accounts receivable of Borrower meeting all of the following specifications: (i) the account receivable is lawfully and exclusively owned by Borrower and subject to no lien or security interest (other than the Lender’s security interest(s)) and Borrower has the right of assignment thereof and the power to grant a security interest therein; (ii) the account receivable is valid and enforceable representing the undisputed indebtedness of an account debtor, provided that it is not due or unpaid for more than (a) ninety (90) days after the original invoice due date and (b) does not represent a rebilling in each case; (iii) not more than fifty percent (50%) of the aggregate balance of all accounts receivable owing from an account debtor obligated on the account receivable are outstanding more than ninety (90) days past their original invoice due dates; (iv) the amount of the account receivable, when aggregated with all other accounts receivable of such account debtor, is less than twenty five (25%) of the face value of all accounts receivable of Borrower then outstanding; (v) the account receivable is not subject to any defense, set-off, or counterclaim, deduction, discount, credit, chargeback, freight claim, allowance or adjustment of any kind; (vi) the account receivable is net of any portion thereof attributable to the sale of goods that have been returned, rejected, lost or damaged; (vii) if the account receivable arises from the sale of goods by Borrower, such sale was an absolute sale and not on consignment or on approval or on a sale-or-return basis nor subject to any other repurchase or return agreement, and such goods have been shipped to the account debtor or its designee; (viii) if the account receivable arises from the performance of services, such services have actually been performed; (ix) the account receivable arose in the ordinary course of Borrower's business; (x) no notice of the bankruptcy, receivership, reorganization, liquidation, dissolution, or insolvency of the account receivable debtor has been received by Bank or Borrower; (xi) the account receivable is an account receivable for which Bank believes that the validity, enforceability or collection of the account receivable is not invalid or otherwise impaired; (xii) the account debtor is not a subsidiary or an affiliate of Borrower; (xiii) the sale does not represent a sale pursuant to a government contract unless Borrower has complied, for the benefit of Bank, with the Assignment of Claims Act; (xiv) the account receivable is not an account receivable of a debtor having its principal place of business or executive office outside the United States, unless the payment of such account receivable is guaranteed by an irrevocable letter of credit issued by a domestic bank satisfactory to the Bank or by credit insurance, satisfactory to Bank; (xv) the account receivable is not an account on which the account receivable debtor is obligated to Borrower under any instrument (as that term is defined by the New Jersey Uniform Commercial Code (Title 12A of New Jersey Statutes) as amended from time to time; (xvi) the transaction which gave rise to the account receivable complies in all material respects with all applicable laws, rules and regulations of any governmental authority; and (xvii) the account receivable meets such other reasonable specifications and requirements which may from time to time be established by Bank. Eligible accounts receivable shall not include that portion of an account receivable representing interest or finance charges for past due balances or debit memos.
  
 iv. Financial Reporting. The Loan’s existing financial reporting requirements shall remain in full force and effect, and the following additional requirement shall be added: should borrowings under the Loan exceed the One Million Five Hundred Thousand and 00/100 ($1,500,000.00) Dollars threshold noted, Borrower shall be required to submit Borrower’s signed borrowing base certificate with the initial advance and quarterly thereafter within fifteen (15) days of each quarter end. Each borrowing base certificate shall be delivered together with all required supporting documentation representing the aggregate value of the eligible accounts receivable that supports the borrowing request along with an accounts receivable aging report and inventory report showing sufficient detail to verify the information on the borrowing base certificate.
  
 v. Financial Covenants. The Loan’s existing financial and other covenants shall remain in full force and effect except that the existing minimum tangible net worth covenants shall be deleted and the following new covenants shall be inserted in its place:
  
 a. Minimum Increase in Retained Earnings. At all times during the Loan term, Borrower shall maintain a minimum increase in net retained earnings of Two Hundred Thousand and 00/100 ($200,000.00) Dollars to be tested annually beginning with FYE 12/31/22 utilizing accountant prepared financial statements. The term, “net retained earnings” shall mean cumulative net earnings or profit after accounting for dividends.
  
 b. Maximum Senior Funded Debt to EBIDA. At all times during the Loan term, Borrower shall maintain a Maximum Senior Funded Debt to EBIDA of 2.0x to be tested semi-annually on a trailing twelve (12) month (“TTM”) basis beginning with the period ending 6/30/22. The term, “Senior Funded Debt” shall include, but is not limited to, all debt of the Borrower and borrowed money such as due to any subsidiaries or affiliates less subordinated debt. EBIDA shall be defined as earnings before interest expense, depreciation expense, and amortization expense minus cash distributions less any non-recurring expenses or income.
  
  
 	 
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 2. ANCILLIARY DOCUMENTS. Contemporaneously with its execution and delivery of this Modification to the Lender, the Borrower shall provide Lender Borrower’s counsel’s, executed legal opinion letter in form and substance reasonably acceptable to Lender stating that: (i) the Borrower is validly organized, is in good standing and authorized to do business in all states in which it is located or conducts business, (ii) the Borrower has full authority to carry out the terms of the Commitment and any other documentation required hereunder or in connection with the Loan, (iii) the Borrower has taken all necessary and appropriate action to authorize the execution and delivery of this Modification and all other documents required to be executed in connection with this Modification, (iv) the Loan Documents are enforceable in accordance with their terms, against the Borrower, (v) that there are no actions or proceedings pending before any court, administrative agency or governmental body at the time of closing which would affect Borrower or the validity of this Modification, (vi) the execution and delivery of this Modification by Borrower shall not violate any Loan Document or any agreements whatsoever to which Borrower is a party, and (vii) such additional customary matters as may be reasonably required by Lender’s Counsel.
  
 3. COLLATERAL; FURTHER ASSURANCES. The Borrower hereby confirms to the Lender all security interests and other Collateral granted to the Lender. The Borrower acknowledges and agrees that all of Borrower’s liabilities and obligations to the Lender, whether direct or indirect, absolute or contingent, shall continue to be secured by any and all such security interests and Collateral and any and all security documents in favor of the Lender. The Borrower further agrees to execute and deliver to Lender any and all agreements and other documentation, and to take any and all actions reasonably requested by the Lender at any time to assure the perfection, protection and enforcement of the Lender’s rights hereunder or under any of the documents executed in connection herewith or in connection with the Loan and with respect to any of the said security interests and Collateral.
  
 4. REAFFIRMATION. All of the terms, covenants and conditions of the Loan Documents, as modified hereby, are hereby ratified, reaffirmed and confirmed and shall continue in full force and effect as therein written and are not intended to be re-enacted as of the above date, but rather to be effective as of the original date of such documents. Nothing herein is intended, or shall be construed, to be a novation or an accord and satisfaction of any other obligation or liability of the Borrower to the Lender. In addition to the foregoing, and not in limitation thereof the Borrower hereby reaffirms all of its liabilities, obligations, duties and responsibilities under and pursuant to the Loan Documents, and said Loan Documents shall continue in full force and effect. The most recent financial statements heretofore delivered by the Borrower to the Lender are true, correct and current in all material respects, have been prepared in accordance with generally accepted accounting principles and fairly present the respective financial conditions of the subjects thereof as of the respective dates thereof. No material adverse change has occurred in the financial conditions reflected therein since the respective dates thereof and no borrowings (except as set forth above in this Modification) secured by or which might give rise to a lien or claim against the Collateral or Loan proceeds have been made by the Borrower or others since the respective dates thereof.
  
 5. BINDING EFFECT. This Modification shall be binding upon and inure to the benefit of the Borrower, the Lender, and their respective heirs, executors, administrators, successors and assigns; provided, however, that the Borrower may neither assign any of its rights, nor delegate any of its obligations, under this Modification, or the other documents executed in connection herewith or therewith, or any rights hereunder or thereunder, without the prior written consent of the Lender and any purported assignment or delegation absent such consent shall be null and void. The Lender may at any time assign or otherwise transfer (by participation or otherwise) any or all of its rights, or delegate any or all of its obligations hereunder.
  
 6. COUNTERPARTS; EFFECTIVENESS. This Modification may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute the same instrument. Faxed and email signatures shall be acceptable as originals. The exchange of executed copies of this Modification by facsimile or Portable Document Format (PDF) transmission shall constitute effective execution and delivery of this Modification as to the parties for all purposes; signatures of the parties transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
  
  
 	 
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 7. AMENDMENT AND WAIVER. No amendment of this Modification, and no waiver of any one or more of the provisions hereof shall be effective unless set forth in a writing and signed by the parties hereto.
  
 8. GOVERNING LAW. This Modification shall be governed by and construed in accordance with the internal laws of the State of New Jersey without reference to conflict of law principles.
  
 9. SEVERABILITY. Any provision of this Modification that is held to be inoperative, unenforceable, voidable or invalid in any jurisdiction shall, as to that jurisdiction, be ineffective, unenforceable, void or invalid without affecting the remaining provisions in that or any other jurisdiction, and to this end the provisions of this Modification are declared to be severable.
  
 10. INDEMNIFICATION.
  
 (a) If, after receipt of any payment of all or any part of the obligations, the Lender is compelled to surrender such payment to any person or entity for any reason (including, without limitation, a determination that such payment is void or voidable as a preference or a fraudulent conveyance, an impermissible setoff, or a diversion of trust funds), then this Modification and each of the other Loan Documents shall continue in full force and effect, and the Borrower shall be liable for, and shall indemnify, defend and hold harmless the Lender with respect to the full amount so surrendered.
  
 (b) The provisions of this Section shall survive the termination of this Modification and the other Loan Documents, and shall be and remain effective notwithstanding the payment of the obligations and all other amounts due hereunder or under the Loan Documents, the cancellation of any note or other instrument, the release of any lien or security interest in favor of the Lender or any other action which the Lender may take in reliance upon its receipt of such payment. Any cancellation of any note or other instrument, release of lien or security interest or other such action shall be deemed to have been conditioned upon any payment of the obligations having become final and irrevocable.
  
 11. SECTION HEADINGS. The Section headings in this Modification are for convenience purposes only and are not to be used to interpret or define the provisions of this Modification.
  
 12. WAIVER OF JURY TRIAL. THE BORROWER AND THE LENDER (BY ACCEPTANCE HEREOF) WAIVE TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF, THIS MODIFICATION OR THE NOTE OR ANY INSTRUMENT OR DOCUMENTS DELIVERED PURSUANT TO THIS MODIFICATION OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF.
  
 13. PRIOR TO SIGNING THIS MODIFICATION, THE BORROWER CERTIFIES THAT IT HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS MODIFICATION. THE BORROWER AGREES TO THE TERMS OF THIS MODIFICATION AND ACKNOWLEDGES RECEIPT OF AN EXECUTED COPY OF THIS MODIFICATION. THE BORROWER ALSO ACKNOWLEDGES HAVING HAD A FULLY AND ADEQUATE OPPORTUNITY TO REVIEW THE CONTENTS OF THIS MODIFICATION WITH AN ATTORNEY OF ITS OWN CHOICE PRIOR TO EXECUTING AND DELIVERING IT TO THE LENDER.
  
 [Signature page follows.]
  
  
 	 
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 IN WITNESS WHEREOF, the parties have executed this Modification effective as of the date first above written.
  
  
 	WITNESS:	 	BORROWER:	 
	  
	  
	  
	  

	  
	  
	 B W ELECTRICAL SERVICES LLC
	  

	  
	  
	  
	  
	  

	/s/	 	By: 	 /s/ MICHAEL WOJTOWICZ
	 
	Name:	 		Michael Wojtowicz, Chief Executive Officer and President	 
	  
	  
	  
	  
	  

	 WITNESS:
	  
	 LENDER:
	  

	  
	  
		  
	  

		  
	 PROVIDENT BANK
	  

	  
	  
	  
	  
	  

	 /s/
	  
	 By:
	 /s/ JESSICA S. DUDICK
	  

	 Name:
	  
	  
	 Jessica S. Dudick, Vice President
	  

	  
	  
	  
	  
	  

		  
	  
	  
	  

 
 
  
 
  
 	 
	6

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