Document:

Exhibit 10-1

                           LOAN AND SECURITY AGREEMENT
                           ---------------------------

     THIS LOAN AND SECURITY AGREEMENT (this "Agreement") is made as of March 27,
2007,  between  ENVIROCLEAN  MANAGEMENT  SERVICES,  INC.,  a  Texas  corporation
("Borrower"), MATTHEW H. FLEEGER and WINSHIP B. MOODY, SR. ("Guarantor", whether
one or more), and PARK CITIES BANK ("Lender").

                             PRELIMINARY STATEMENTS

     A. Borrower has requested a $1,500,000.00 revolving line of credit loan for
working capital purposes, and Lender has agreed to extend such credit subject to
the terms and provisions hereof.

     B. As an  inducement  for Lender to extend the loan to  Borrower,  Borrower
shall  grant  a  first  priority  security  interest  in and to the  hereinafter
described  Collateral,  and Borrower shall execute and deliver the Deed of Trust
in favor of  Lender,  granting  a first  and  superior  lien upon  certain  real
property owned by Borrower and located at 2821 Industrial Lane, Garland, Texas.

     C. As a further inducement for Lender to extend the loan to Borrower,  each
Guarantor has agreed to  unconditionally  guarantee all debt owed by Borrower to
Lender at any time.

     NOW,  THEREFORE,  in  consideration  of the mutual covenants and agreements
contained  herein,  and other good and valuable  consideration,  the receipt and
sufficiency  of  which  are  hereby  acknowledged,  Borrower,  Lender  and  each
Guarantor hereby agree as follows:

                                    ARTICLE I
                           DEFINITIONS AND REFERENCES

     The following  definitions shall apply to the following terms wherever used
in the Loan  Documents  (as  hereinafter  defined),  except  where the terms are
expressly defined otherwise or where the context clearly requires otherwise:

     "Account  Debtor"  means any Person or Persons  purchasing  or  engaging to
purchase  products  and/or  services  from  Borrower and any other Person who by
contract or other  arrangement has  independently  agreed to pay for products or
services sold by Borrower to any Person or Persons.

     "Advance"  means any advance of funds by Lender to or on behalf of Borrower
under the Note.

     "Advance Date" means the date on which an Advance is made hereunder.

     "Advance  Request"  means  a  request  to  Lender  for an  Advance  made by
submitting by mail or telecopy a writing  substantially in the form of Exhibit A
attached hereto, signed by Matthew H. Fleeger, or any other corporate officer of
Borrower authorized in writing;  and Borrower hereby irrevocably agrees that any
such officer may make an Advance  Request  hereunder,  and that unless and until
Lender has received  written  notice of the  termination of the authority of any
such  officer,  Lender may fully rely thereon,  and Borrower  shall be obligated
thereunder.

     "Affiliate"  means,  as to any Person,  each other Person that  directly or
indirectly  (through  one or more  intermediaries  or  otherwise)  controls,  is
controlled by, or is under common control with,  such Person,  including but not
limited to any parent,  subsidiary,  joint venture or partnership of such Person
and any other entity or corporation at least fifteen percent (15%) of the voting
shares or interests of which are owned  directly or indirectly by such Person in
the  aggregate.  Affiliate  shall also mean any Guarantor or any  shareholder of
Borrower,  or any member of the immediate family,  or any trust,  partnership or
other entity which is  beneficially  owned by any  Guarantor or  shareholder  or
member or members of the immediate family of any Guarantor or shareholder.

     "Agreement"  means  this  Loan  and  Security  Agreement,  with any and all
exhibits and schedules attached hereto and all written and executed  amendments,
supplements and modifications hereof.

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     "Borrower" means Borrower or its successors and assigns.

     "Borrowing  Base" means the Borrowing Base from time to time  applicable to
the Loan and shall be the amount, as of the date of determination,  equal to the
sum of (a) EIGHTY-FIVE PERCENT (85%) of the appraised value of the improved real
property  encumbered  by the  Deed of  Trust,  per an  appraisal  in a form  and
prepared by an appraiser  acceptable to Lender;  PLUS (b)  SEVENTY-FIVE  PERCENT
(75%) of ELIGIBLE RECEIVABLES.

     "Borrowing  Base  Certificate"  means the  Certificate  attached  hereto as
Exhibit B.

     "Business  Day"  means a day,  other than a  Saturday  or Sunday,  on which
commercial banks are open for business with the public in Dallas, Texas.

     "Capital  Expenditure"  means  any  capital  expenditure  of  Borrower,  as
determined in accordance with GAAP, including,  but not limited to, the purchase
of vehicles,  real  estate,  buildings,  leasehold  interests,  computers,  data
processing equipment, telephone equipment, fax machines and copiers.

     "Closing  Date"  means  the  date  referred  to in  the  preamble  of  this
Agreement, which shall be the effective date of this Agreement.

     "Collateral" has the meaning set forth in Section 6.1.

     "Compensation"  means  the  entire  amount  of  salaries,  wages  or  other
compensation  paid on a  calendar  year basis  including,  but not  limited  to,
overtime   payments  and  commissions   before  reductions  on  account  of  any
withholding,  such as income taxes and social security taxes, and also including
management  fees,  consulting  fees,  non-business  related  expenses,  bonuses,
redemptions,  dividends or other  distributions on equity  securities,  vehicle,
clothing  or other  allowances,  insurance  premiums,  retirement  benefits  and
contributions  to pension or profit  sharing plans and any other  perquisites of
employment or ownership but excluding reasonable expense account allowances.

     "Debt"  means,  as  to  any  Person,  all  indebtedness,   liabilities  and
obligations of such Person,  excluding  unearned or deferred  revenues,  whether
primary or secondary, direct or indirect, absolute or contingent.

     "Deed of Trust" means that certain Deed of Trust (With  Security  Agreement
and Assignment of Rents) executed by Borrower creating a first lien upon certain
real property located in Dallas County,  Texas, as more  particularly  described
therein, as collateral for the Loan.

     "Eligible  Receivables"  means all bona fide  Receivables  owed by  Account
Debtors to Borrower,  less (i) each  Receivable  with an account balance of less
than $2,000.00,  less (ii) all Receivables outstanding for more than ninety (90)
days from the due date, less (iii) all Receivables owed by any Account Debtor if
FIFTEEN  PERCENT (15%) or more of such Account  Debtor's  account is outstanding
for more than  ninety  (90) days from due date,  less (iv) with  respect  to any
Account Debtor whose aggregate  outstanding  account balance exceeds TWENTY-FIVE
PERCENT (25%) of the  aggregate  Receivables  of Borrower,  that portion of said
Account Debtor's balance that exceeds TWENTY-FIVE PERCENT (25%) of the aggregate
Receivables of Borrower,  less (v)  Receivables  from any Affiliate of Borrower,
less (vi) any  Receivable  from any federal or state  political or  governmental
authority,  agency,  department  or other  division,  less (vii) any  Receivable
arising out of a pre-billing or progress billing  arrangement and any Receivable
not due and payable in its  entirety or with  regard to which  Borrower  has not
fully  performed  all of  Borrower's  duties  under and in  connection  with the
transaction to which the Receivable,  or any part thereof,  relates, less (viii)
any lienable  Receivable for which an indemnity bond has been issued,  less (ix)
all contra accounts or Receivables owed by any Account Debtor from whom Borrower
purchases  products or services on terms,  and less (x) all Receivables  owed by
any Account Debtor whose principal business office is located outside the United
States.

     "Event of Default" has the meaning set forth in Section 7.1.

     "Fiscal Year" means any twelve-month period ending on and including
December 31st.

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     "Formation  Documents"  means,  with  respect  to  Borrower,   Articles  of
Incorporation  or a  Certificate  of Formation  and Bylaws;  and all  amendments
thereto, if any.

     "GAAP" means those generally accepted accounting  principles,  applied on a
consistent basis, as set forth in Opinions of the Accounting Principles Board of
the American  Institute of Certified Public  Accountants or in statements of the
Financial   Accounting   Standards  Board  and/or  their  successors  which  are
applicable in the  circumstances  as of the date in question,  and the requisite
that such principles be applied on a consistent  basis means that the accounting
principles  observed in a current period are comparable in all material respects
to those applied in a preceding period.

     "Guaranty(ies)" means the Guaranty Agreements,  as may be amended from time
to time, executed by each Guarantor in connection herewith.

     "Initial Financial  Statements" means the financial  statements of Borrower
or  Guarantor  dated no earlier  than three (3) months prior to the date hereof,
copies of which have been delivered to Lender.

     "Indebtedness"  means  the sum of all  Debt  from  time to  time  owing  by
Borrower  and/or any  Guarantor  to Lender  under or pursuant to any of the Loan
Documents, together with any Letter of Credit Liabilities.

     "Intangible  Assets" means all  intangible  assets (as defined by GAAP from
time  to   time),   including   goodwill,   trademarks,   patents,   copyrights,
organizational  expenses and similar  intangible items, and expressly  including
loans,  advances and  investments to or in Affiliates,  employees or officers of
Borrower or any Guarantor.

     "Inventory"  means all raw materials,  work-in-progress  and finished goods
inventory of Borrower,  including,  without limitation,  all goods manufactured,
processed or purchased for resale by Borrower.

     "Law  or  Laws"  means  statute(s),  law(s),  ordinance(s),  regulation(s),
order(s),  writ(s),  injunction(s) or decree(s) of any political or governmental
body or Tribunal (federal,  state,  county,  municipal,  foreign, or domestic or
otherwise) having competent jurisdiction.

     "Lender" means PARK CITIES BANK, or its successors or assigns.

     "Liabilities"  means, at any particular time, all Debt which, in conformity
with GAAP, would be included as liabilities on a balance sheet of a Person.

     "Lien" means, with respect to any property or assets, any right or interest
therein of a creditor  to secure Debt owed to it or any other  arrangement  with
such creditor  which  provides for the payment of such Debt out of such property
or assets or which allows it to have such Debt satisfied out of such property or
assets prior to the general  creditors of any owner thereof,  including  without
limitation, any lien, mortgage,  security interest, pledge, deposit,  production
payment,  rights of a vendor  under  any title  retention  or  conditional  sale
agreement  or lease  substantially  equivalent  thereto,  or any other charge or
encumbrance, whether arising by Law or agreement or otherwise, but excluding any
right of  offset  which  arises  without  agreement  in the  ordinary  course of
business.

     "Loan" means the  revolving  line of credit loan made by Lender to Borrower
pursuant to Article II and evidenced by the Note.

     "Loan Commitment" means $1,500,000.00.

     "Loan  Documents"  means this Agreement,  the Note, the Deed of Trust,  the
Guaranties,  and each other document  evidencing  and securing the  Indebtedness
under the Loan, and all other agreements, certificates, legal opinions and other
documents, instruments and writings (other than term sheets, commitment letters,
or similar  documents used in the  negotiation  hereof)  heretofore or hereafter
delivered in connection herewith or therewith.

         "Maturity Date" shall have the meaning set forth in the Note.

     "Monthly  Payment Date" means each monthly  payment or installment due date
as set forth in the Note.

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     "Note" means that certain Revolving Note evidencing the Loan executed as of
the Closing Date by Borrower payable to Lender as modified or extended from time
to time in writing,  and any  promissory  note issued in exchange or replacement
therefor.

     "Person"  means  any one and  "Persons"  means  more  than one  individual,
corporation,  partnership,  association,  joint stock company,  trust or trustee
thereof,  estate  or  executor  thereof,  unincorporated  organization  or joint
venture, court or governmental unit or any agency or subdivision thereof, or any
other legally recognizable entity.

     "Potential Event of Default" means any event or condition which with notice
or the lapse of time or both would give rise to an Event of Default.

     "Receivables"  means all of Borrower's  accounts,  receivables  or right to
receive any payment or commission from any Account Debtor.

         "Subordinated Debt" means all of the Debt of Borrower which Debt (and
all Liens securing such Debt) has been subordinated to the Loan by written
subordination agreement in form and substance acceptable to Lender.

         "Subsidiaries" means any entity owned in whole or in part or otherwise
controlled by Borrower.

     "Tangible Net Worth" shall mean (a) a Person's total assets as reflected on
the  financial  statements  furnished to Lender,  excluding  (i) all  Intangible
Assets, (ii) all Receivables from officers,  employees or other Affiliates,  and
(iii)  investments in any Affiliate,  less (b) the total amount of such Person's
Debt.

     "Tribunal"  means  any  agency,   board,   business,   commission,   court,
department, instrumentality or tribunal of any political or government authority
having competent legislative, judicial or arbitral jurisdiction.

     "Working  Capital"  means,  at any given time,  the amount by which current
assets exceeds current liabilities.

                                   ARTICLE II
                                    THE LOAN

2.1  Maximum  Principal  Debt.  Pursuant  to this  Article II and subject to the
     terms and conditions of this  Agreement,  Lender agrees to make Advances to
     Borrower  under the Note from time to time in an  aggregate  amount  not to
     exceed,   at  any  one  time   outstanding,   the  amount   (the   "Maximum
     Availability") that is (i) the lesser of (a) the Borrowing Base and (b) the
     Loan Commitment.  Subject to the Maximum Availability,  and the other terms
     and provisions of this Agreement,  Borrower may borrow, repay, and reborrow
     amounts hereunder.

2.2  Note.  The  Loan  made by  Lender  pursuant  to this  Article  II  shall be
     evidenced by the Note.  Lender is hereby  authorized to record the date and
     amount of each Advance  made  pursuant to this Article II by Lender and the
     date and  amount of each  payment or  prepayment  of  principal  thereof in
     Lender's  records.  Any  such  recordation  shall  constitute  prima  facie
     evidence of the accuracy of the information as recorded; provided, however,
     the failure to make any such  recordation  shall not affect the obligations
     of Borrower hereunder or under the Note.

2.3  Borrowing  Procedure.  By no later  than 10:00  a.m.  Central  time one (1)
     Business Day prior to a proposed  Advance,  Borrower shall submit to Lender
     an Advance Request. Upon fulfillment of the applicable conditions set forth
     herein,  including Article V, Lender shall transfer  immediately  available
     funds in the amount of the Advance into an account at Lender established by
     Borrower by no later than Lender's close of business on the Advance Date.

2.4  Use of Proceeds.  The proceeds of the Loan shall be used only to supplement
     cash flow for general corporate needs,  including providing working capital
     to Borrower for the purpose of financing Borrower's operations,  production
     and for marketing and sales efforts,  and costs related to the expansion of
     Borrower's  business  operations,  and the  acquisition  of the  assets  of
     businesses  engaged in businesses the same as, similar to or  complementary
     to Borrower's business operations.  Borrower warrants that it shall not use
     the proceeds of the Loan for any other  purposes or in connection  with the
     operation of any other business.

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2.5  Term. The obligation of Lender to make Advances pursuant to this Article II
     shall  terminate  at Lender's  close of business in Dallas,  Texas,  on the
     Maturity Date.

2.6  Voluntary  Prepayment.  At its option on any  Business  Day,  Borrower  may
     prepay  to Lender  the  principal  balance  of the Loan in whole or in part
     without penalty or premium.

2.7  Mandatory Prepayments.

     (a)  In the event Borrower sells, transfers,  assigns or otherwise disposes
          of all or any portion of the  Collateral,  other than in the  ordinary
          course of  business,  Borrower  shall pay  immediately  to Lender  the
          proceeds of any such sale,  transfer or  assignment as a prepayment of
          principal of the Loan.

     (b)  If, at any date of determination, the Loan balance exceeds the Maximum
          Availability,  then Borrower shall immediately pay to Lender an amount
          sufficient to reduce the Indebtedness  outstanding under the Loan such
          that Borrower is in compliance with Section 2.1.

     2.8  Direct Disbursement by Lender. Lender shall have the right in Lender's
          sole  discretion,  subject to the limitations set forth in Section 2.1
          hereof,  on behalf of and without notice to Borrower,  to make and use
          Advances  to pay Lender for any  amounts  due Lender  pursuant to this
          Agreement or otherwise,  including, without limitation,  principal and
          interest  on the Note or on any other Debt owed by  Borrower to Lender
          and any expenses incurred by Lender and payable by Borrower under this
          Agreement.

     2.9  Origination  Fee.  Borrower  shall  pay  to  Lender  a  non-refundable
          origination  fee of one percent  (1.0%) of the Loan  Commitment,  upon
          execution of this Agreement to compensate  Lender for reserving  funds
          with which to make Loan  Advances  on the Loan and for  administrative
          costs in reviewing, underwriting and processing the Loan.

                                   ARTICLE III
                  CONDITIONS TO ADVANCES AND LETTERS OF CREDIT

3.1. Closing  Conditions.  The obligation of Lender to make the initial  Advance
     under the Note is conditioned  upon prior  satisfaction of all requirements
     set forth in this  Article III and upon the prior  receipt by Lender of the
     documentation  set  forth  in this  Section  5.1  (all of  which  shall  be
     satisfactory to Lender in its sole discretion):

     (a)  Formation  Documents.  Copies of the Formation  Documents for Borrower
          accompanied  by a certificate  of the  appropriate  secretary or other
          officer, dated as of the Closing Date, to the effect that such copy is
          correct and complete;

     (b)  Existence and Good  Standing.  A certificate  or  certificates  of the
          Secretary of State,  Comptroller or other  appropriate  officer of the
          state of  incorporation  or formation of Borrower,  bearing a date not
          more than thirty (30) days prior to the  Closing  Date,  to the effect
          that  each  such  party is duly  organized  and  existing  and in good
          standing under the laws of the state of incorporation or formation;

     (c)  Incumbency.  A  certificate  of  incumbency  naming  all  officers  of
          Borrower who will be  authorized  to execute or attest any of the Loan
          Documents  on behalf of Borrower,  executed by the  secretary or other
          officer of Borrower,  together with specimen  signatures,  dated as of
          the Closing Date;

     (d)  Resolutions.  Copies  of  resolutions  of the  Board of  Directors  of
          Borrower,  satisfactory  to  Lender,  approving  and  authorizing  the
          execution of this  Agreement  and such of the Loan  Documents to which
          Borrower is a party and authorizing the performance of the obligations
          of  Borrower  contemplated  in this  Agreement  and in such other Loan
          Documents,  accompanied  by a  certificate  of the  Secretary or other
          officer,  dated as of the Closing Date,  that such copies are complete
          and correct copies of resolutions duly adopted at a meeting duly held,
          that such  resolutions  have not been amended,  modified or revoked in
          any respect  and are in full force and effect as of the Closing  Date,
          and further  certifying as to such other matters as may be required by
          Lender;

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     (e)  Other  Certificates.  Certificates  of  Borrower's  good  standing and
          qualification to do business,  issued by appropriate  officials in any
          state in which Borrower owns property subject to the Loan Documents;

     (f)  Insurance.  Evidence of  endorsements or riders in favor of Lender for
          all insurance  policies  maintained by Borrower in accordance with the
          requirements  set forth in Articles IV and V, together with loss payee
          endorsements  from such insurance  companies with respect to insurance
          in favor of Lender  which  provide  that (i) the policy will remain in
          force for the  benefit of Lender for at least  thirty  (30) days after
          Lender  receives  written  notice of  cancellation  of same,  (ii) the
          insurance  carrier will not reduce or cancel the policy at the request
          of the  insured  or amend or  endorse  or delete it  without  at least
          thirty (30) days prior written  notice being  received by Lender,  and
          (iii) the insurance  cannot be  invalidated as to Lender by any act or
          neglect of the insured;

     (g)  Note. The Note;

     (h)  Financing  Statements,  Etc. All financing statements or amendments to
          financing  statements,   mortgages,  deeds  of  trust  and  all  other
          documents  or  instruments  requested  by Lender to evidence the Liens
          granted by Borrower pursuant to the Loan Documents,  duly executed and
          recorded in the appropriate governmental office;

     (i)  Field Audit.  If required by Lender,  completion of a field audit with
          results acceptable to Lender;

     (j)  Guaranties. A Guaranty from each Guarantor;

     (k)  Releases.  Duly  executed  UCC-3  termination  statements  or  similar
          documents  with  respect to Liens other than in favor of Lender on the
          Collateral;

     (l)  Deed of Trust.  The Deed of Trust,  together with a prepaid  mortgagee
          title policy in favor of Lender in the amount of Loan,  containing  no
          exceptions  other than those  approved by Lender,  and together with a
          current  survey of the real property  encumbered by the Deed of Trust,
          certified in favor of Lender,  and  otherwise in a form  acceptable to
          Lender;

     (m)  Approval  of Initial  Financial  Statements  and Other Due  Diligence.
          Lender shall have  received  and  approved  (i) the Initial  Financial
          Statements,   and   (ii)   all   submissions,   reports,   appraisals,
          environmental studies and other "due diligence" as required by Lender;

     (n)  Landlord Subordination.  Landlord subordination agreements executed by
          each of Borrower's landlords with respect to each location of Borrower
          where Inventory is or may be stored, warehoused or maintained;

     (o)  Other   Documents.   Any  and  all  other  documents  or  certificates
          reasonably  requested by Lender in  connection  with the  execution of
          this Agreement, including without limitation an opinion of counsel for
          Borrower  and  each  Guarantor,   in  form  and  substance  reasonably
          acceptable to Lender; and

     (p)  Certain Payments.  Borrower shall have paid Lender the Origination Fee
          and reimbursed  Lender for all reasonable  expenses incurred by Lender
          in connection with the  preparation of the Loan Documents,  including,
          but not limited to, the  reasonable  fees and  expenses of counsel for
          Lender.

3.2. Conditions to Each Advance  under the Loan.  In addition to the  conditions
     precedent stated elsewhere herein, Lender shall not be obligated to make an
     Advance, unless:

     (a)  Advance  Request.  In accordance  and by the time specified in Article
          II, Borrower shall have delivered an Advance  Request,  duly executed,
          containing  the  certifications  and  other  supporting  documentation
          required herein;

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     (b)  Business Day. The Advance Date is a Business Day;

     (c)  Representations.  The  representations and warranties made by Borrower
          in any Loan Document are true and correct in all material  respects at
          and as if made as of the Advance Date;

     (d)  Formation Documents.  Lender shall have received current copies of the
          items  required to be delivered by Section  3.1(a) hereof if there has
          been any amendment to or revision of any of such items;

     (e)  No Default.  On the Advance  Date,  no Event of Default,  or Potential
          Event of Default, has occurred and is continuing or would be caused by
          the requested Advance;

     (f)  Availability  of  Commitment.  Lender shall have  received a Borrowing
          Base  Certificate  which  is  current  as  of  the  last  day  of  the
          immediately  preceding calendar month and the sum of (i) the principal
          balance of the outstanding Advances made by Lender under the Loan, and
          (ii) the amount of the  requested  Advance does not exceed the Maximum
          Availability.

     (g)  Compliance with Provisions. Borrower shall have performed and complied
          in all material  respects with all agreements and conditions  required
          to be  performed  or complied  with by it herein or in any of the Loan
          Documents at or prior to the time of the Advance

     (h)  Necessary Approvals.  All necessary authorizations and approvals by or
          from any governmental  agency or other third party to the transactions
          contemplated  by this  Agreement  required of Borrower shall have been
          duly  obtained  and shall be in full force and  effect on the  Advance
          Date;

     (i)  Additional  Evidence.  If  requested  by Lender,  Borrower  shall have
          delivered to Lender a certificate  reasonably  satisfactory  to Lender
          certifying  any of the matters set forth in this  Agreement  which are
          necessary to enable Borrower to qualify for the Advance;

     (j)  Use of Proceeds.  The  proceeds of such Advance  shall be used for the
          purposes set forth in Section 2.4; and

     (k)  Legal Limitation.  Lender shall be permitted to make the Advance under
          applicable Law.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

     Borrower and each Guarantor  represent and warrant,  as of the date hereof,
the following:

4.1. Corporate Existence,  Qualification and Capacity. Borrower is a corporation
     duly organized, validly existing and in good standing under the laws of the
     State of Texas.  Borrower  is duly  qualified  to  transact  business  as a
     foreign  entity and are in good standing in every  jurisdiction  where they
     are  doing  business.  Each  of the  Borrower  have  all  requisite  power,
     authority,  licenses and permits material to the ownership and operation of
     their  respective  properties  and to the  carrying on of their  respective
     business.  Borrower  has all  requisite  corporate  power and  authority to
     borrow under or guaranty (as  applicable),  to execute and deliver,  and to
     perform under, the Loan Documents to which they are a party.

4.2. No Conflict. The execution and delivery of, and performance under, the Loan
     Documents by Borrower and each  Guarantor (a) do not violate any applicable
     law,  (b) are not in  contravention  of the  terms  of  Borrower's  or each
     corporate  Guarantor's articles of incorporation or bylaws, or the terms of
     any  credit  or loan  agreement,  indenture,  lease,  franchise,  marketing
     agreement, license, mortgage or deed of trust, or other material agreement,
     undertaking  or  arrangement  (written  or oral) to which  Borrower  or any
     Guarantor are a party or by which they (or their assets) may be bound,  and
     (c) will not give  rise to the  creation  of any Lien  upon any  assets  of
     Borrower or any Guarantor.

                                       7
<PAGE>

4.3. Consent.  No  authorization,   approval,   consent,  or  notice  under  the
     provisions  of the articles of  incorporation  or bylaws of Borrower or any
     corporate Guarantor or under any other relevant agreement,  undertaking, or
     arrangement or applicable  law or by any  additional  Tribunal or Person is
     required with respect to the  execution  and delivery of this  Agreement or
     the other Loan Documents or with respect to the performance of any covenant
     or agreement contained herein or therein.

4.4. Enforceability  of Loan  Documents;  Due  Authorization.  Borrower and each
     corporate  Guarantor have taken all requisite corporate action to authorize
     the (a)  execution  and  delivery  of the Loan  Documents  to which it is a
     party, (b) consummation of all transactions  contemplated  thereby, and (c)
     performance and discharge of its obligations thereunder. This Agreement and
     each other Loan  Document to be executed and delivered by Borrower and each
     Guarantor  as  contemplated  herein,  when  executed  and  delivered by all
     parties thereto, will constitute the valid, legal and binding obligation of
     Borrower  and  each  Guarantor,   enforceable  against  Borrower  and  each
     Guarantor in accordance with their terms.

4.5. Properties;  No Liens. Borrower and each Guarantor has good, marketable and
     insurable  fee simple title to all of its owned real  properties,  good and
     marketable  leasehold  title to all of its leased real  properties and good
     and  marketable  title to all of its personal  property,  and no such real,
     leasehold or personal  properties are subject to any Liens other than Liens
     in favor of Lender.

4.6. Financial  Condition.  The Initial  Financial  Statements  were prepared in
     accordance  with  GAAP,   consistently  applied,  and  fairly  present  the
     financial  condition  and  results  of  operations  of  Borrower  and  each
     Guarantor, on the dates or for the periods indicated therein, and since the
     delivery of the Initial  Financial  Statements,  there has been no material
     adverse  change  in  the  assets,  liabilities,   condition  (financial  or
     otherwise) or business operations of Borrower or any Guarantor.

4.7. Full Disclosure. Neither this Agreement nor any other document, certificate
     or written statement furnished to Lender by or on behalf of Borrower or any
     Guarantor  in  connection  herewith  contains  any  untrue  statement  of a
     material  fact or omits to state any  material  fact  necessary in order to
     make the statements contained herein or therein not misleading. There is no
     fact  peculiar to  Borrower or any  Guarantor  which  materially  adversely
     affects or is likely to materially adversely affect the business, condition
     or operations  (financial or otherwise) of Borrower or such Guarantor which
     has  not  been  set  forth  in  this  Agreement  or  in  other   documents,
     certificates and written statements  furnished to Lender by or on behalf of
     Borrower or any Guarantor.

4.8. No Defaults  Under  Documents.  Neither  Borrower  nor any  Guarantor is in
     default or in  violation  (nor has any event or condition  occurred  which,
     with  notice  or lapse of time or  both,  would  constitute  a  default  or
     violation)  under  the  Loan  Documents,  under  any  charter  document  or
     indenture,  or  under  any  credit  or loan  agreement,  indenture,  lease,
     franchise,  marketing agreement,  license,  mortgage, deed of trust, or any
     other material agreement,  undertaking or arrangement  (written or oral) to
     which it is a party or under which it or any of its assets may be bound.

4.9. Existing  Litigation/Liabilities.  There are no material actions,  suits or
     proceedings  pending,  or,  to the  best  knowledge  of  Borrower  and each
     Guarantor,  threatened  against or affecting the assets of Borrower  and/or
     any Guarantor or the consummation of the transactions  contemplated hereby,
     at  law  or in  equity  or  before  or by  any  governmental  authority  or
     instrumentality  or before  any  arbitrator  of any kind  and,  to the best
     knowledge of Borrower and each  Guarantor,  there is no valid basis for any
     such  action,  proceeding  or  investigation.   Neither  Borrower  nor  any
     Guarantor is subject to any judgment,  order, writ, injunction or decree of
     any court or governmental agency.  There is not a reasonable  likelihood of
     an  adverse   determination   of  any  pending   proceeding   which  would,
     individually  or in the  aggregate,  have a material  adverse effect on the
     business  operations or financial  condition of Borrower or any  Guarantor.
     Neither Borrower nor any Guarantor is a party to, or bound by, any contract
     or  agreement  or subject to any  charter  or other  corporate  restriction
     having a material  adverse  effect on the  financial  condition or business
     operations of Borrower or such Guarantor.

4.10. Taxes.  All tax returns of Borrower and each Guarantor  required by law to
     be filed  have been  filed and all taxes  imposed  upon  Borrower  and each
     Guarantor or their respective  properties,  which are due and payable, have
     been paid.

                                       8
<PAGE>

4.11. Compliance with Laws.  Neither  Borrower nor any Guarantor is in violation
     of any laws, rules, regulations, orders, and decrees applicable to Borrower
     or such Guarantor.

4.12. Subsidiaries  or Affiliates.  Borrower has no  Subsidiaries or Affiliates,
     except MedSolutions, Inc.

4.13. Insurance.  Borrower  maintains  insurance  (a) of such  types,  including
     without  limitation  comprehensive  general liability  insurance,  casualty
     insurance and, if applicable,  products liability insurance,  as is usually
     carried by  corporations of established  reputation  engaged in the same or
     similar   businesses  and  similarly   situated  with  financially   sound,
     responsible and reputable  insurance  companies or associations  (or, as to
     workers  compensation  or similar  insurance,  with an insurance fund or by
     self-insurance  authorized by the  jurisdiction in which its operations are
     carried on) and (b) in such amounts (and with co-insurance and deductibles)
     as such  insurance  is  usually  carried  by  corporations  of  established
     reputation  engaged  in  the  same  or  similar  businesses  and  similarly
     situated, but in any event, in amounts not less than required by Lender, in
     its sole discretion, with provisions naming Lender as additional insured or
     loss payee, as applicable, as determined by Lender in its sole discretion.

4.14. Receivables.  Each Receivable  reflects a contractual  arrangement with an
     Account  Debtor  which has been  accepted  by the Account  Debtor,  without
     dispute, offset, defense or counterclaim,  and Borrower is in possession of
     the  purchase  order,  invoice  or  contract  which  is the  basis  of each
     Receivable,  as well as documents and receipts  evidencing  delivery of all
     Inventory and/or the complete provision of the purchased service.

4.15. Consignment.  No  Inventory is held by Borrower  pursuant to  consignment,
     sale or return, sale on approval or similar arrangements.

4.16. Priority of Security Interest.  Lender will have valid and perfected first
     priority  security  interests  in the  Collateral  described  in  the  Loan
     Documents,  subject to no other Lien,  when the  financing  statements  are
     signed by Borrower and filed in the appropriate governmental offices or the
     certificates  of  title   reflecting   Lender's  Liens  are  filed  in  the
     appropriate public office. No financing  statement is on file in any public
     office  with  respect to the  Collateral  other than  financing  statements
     covering the Liens created by the Loan Documents.

4.17. Capital  Structure.  All authorized,  issued and outstanding shares of the
     capital  stock  of  Borrower  and the  ownership  of such  shares  are duly
     authorized,  validly  issued  and  fully  paid and have not been  issued in
     violation  of any  preemptive  or similar  rights.  Borrower  does not have
     outstanding any securities convertible into or exchangeable for its capital
     stock, nor any rights to subscribe for or to purchase,  any options for the
     purchase of, or any  agreements  providing for the issuance  (contingent or
     otherwise)  of,  or any  calls,  commitments  or  claims  of any  character
     relating  to,  its  capital  stock  or  securities   convertible   into  or
     exchangeable for its capital stock.

4.18. Names and Places of Business.  Borrower has not, during the preceding five
     years, had, been known by or used any other corporate,  trade or fictitious
     name.  All Inventory  and all other  Collateral is located at the locations
     set forth on Schedule 4.18 attached hereto.  The chief executive office and
     principal  place of business of  Borrower  is (and for the  preceding  five
     years has been) set forth on Schedule 4.18 attached hereto.

                                    ARTICLE V
                            COVENANTS AND AGREEMENTS

5.1  Affirmative Covenants. Borrower and each Guarantor, as applicable, warrant,
     covenant,  and  agree  that  until  the  full  and  final  payment  of  the
     Indebtedness  and  the  termination  of  this  Agreement,  it  will  do the
     following:

     (a)  Books,  Financial  Statements and Reports.  At all times maintain full
          and accurate books of account and records. Borrower and each Guarantor
          will, on an individual or  consolidated  basis, as required by Lender,
          maintain a  standard  and  consistent  system of  accounting  and will
          furnish to Lender the  statements  and  reports set forth on Exhibit C
          attached hereto and made a part hereof:

     (b)  Audits/Inspections.   On  and   after   the   Closing   Date,   permit
          representatives    appointed   by   Lender,    including   independent
          accountants,  agents, attorneys,  appraisers and any other persons, to
          visit and inspect Borrower's property, including its books of account,
          other books and records,  and any facilities or other business assets,
          and to make extra copies  therefrom and  photocopies  and  photographs
          thereof,   and  to  write  down  and  record  any   information   such

                                       9
<PAGE>

          representatives  obtain,  and  Borrower  shall  permit  Lender  or its
          representatives   to  investigate  and  verify  the  accuracy  of  the
          information  furnished to Lender in connection with the Loan Documents
          and to discuss  all such  matters  with its  officers,  employees  and
          representatives.

     (c)  Notice of  Material  Events and  Change of  Address.  Promptly  notify
          Lender of (i) any  material  adverse  change in  Borrower's  financial
          condition,  (ii) the  occurrence  of any Event of Default or Potential
          Event of Default,  (iii) the  acceleration of the maturity of any Debt
          owed by Borrower or of any  default by Borrower  under any  indenture,
          mortgage,  agreement,  contract or other  instrument  to which it is a
          party or by which its properties are bound,  (iv) any material adverse
          claim  asserted   against  Borrower  or  with  respect  to  Borrower's
          properties, (v) the filing of any suit or proceeding against Borrower,
          (vi) notice from any  Tribunal,  the  substance  of which might have a
          material  adverse  effect  on  the  financial  condition  or  business
          operations of Borrower, or (vii) any material change in its accounting
          practices or  procedures.  Borrower will also notify Lender in writing
          at least  twenty (20)  Business  Days prior to the date that  Borrower
          changes its name or its  jurisdiction  of  incorporation  or formation
          (but without  implying  Borrower's  right to do so) or the location of
          its chief executive office or principal place of business or the place
          where it keeps  its  books  and  records  concerning  the  Collateral,
          furnishing  with  such  notice  any  necessary   financing   statement
          amendments or requesting Lender and its counsel to prepare the same.

     (d)  Maintenance of Properties.  Maintain,  preserve, protect, and keep all
          property  used  or  useful  in the  conduct  of its  business  in good
          condition and in compliance  with all applicable Laws and from time to
          time make all repairs,  renewals and replacements needed to enable the
          business  and  operations  carried on in  connection  therewith  to be
          promptly and advantageously conducted at all times.

     (e)  Maintenance of Existence and Qualifications. Maintain and preserve its
          corporate  existence and not change its jurisdiction of incorporation,
          reorganize,  merge, or consolidate  with any other person and maintain
          and  preserve its rights and  franchises  in full force and effect and
          qualification to do business as a foreign corporation in all states or
          jurisdictions where required by applicable Law.

     (f)  Payment of Trade Debt,  Taxes,  Etc.  (i) Timely file all required tax
          returns, (ii) timely pay all taxes, assessments,  and other government
          charges  or levies  imposed  upon it or upon its  income,  profits  or
          property,  (iii) pay all Debt owed by it on  ordinary  trade  terms to
          vendors, suppliers and other Persons providing goods and services used
          by it in the ordinary  course of its business,  (iv) pay and discharge
          when due all other Debt now or hereafter  owed by it, and (v) maintain
          appropriate  accruals and reserves  for all of the  foregoing  Debt in
          accordance with GAAP.

     (g)  Insurance. Keep adequately insured, by financially sound and reputable
          insurers, the Collateral and all other property of a character usually
          insured by similar Persons  engaged in the same or similar  businesses
          and  otherwise  comply  with  the  provisions  of the  Loan  Documents
          pertaining  to  insurance.  Maintain  adequate  insurance  against its
          liability for injury to Persons or property,  which insurance shall be
          by financially sound and reputable  insurers.  Borrower shall have all
          of its insurance  policies on the Collateral name Lender as loss-payee
          and shall have the insurance company provide Lender with such evidence
          of insurance as Lender requests.

     (h)  Payment of Expenses.  Whether or not the transactions  contemplated by
          this  Agreement are  consummated,  promptly (and in any event,  within
          three (3) days after any invoice or other statement or notice) pay all
          reasonable  costs  and  expenses  incurred  by or on  behalf of Lender
          (including  attorneys'  fees) in connection with (i) the  negotiation,
          preparation, execution and delivery of the Loan Documents, and any and
          all  consents,  waivers or other  documents  or  instruments  relating
          thereto, (ii) the filing, recording,  refiling and re-recording of any
          Loan  Documents  and any other  documents  or  instruments  or further
          assurances  required to be filed or recorded or refiled or re-recorded
          by the terms of any Loan Document,  (iii) the borrowings hereunder and
          other  action  reasonably  required  in the  course of  administration
          hereof,  including,  but not limited to, all reasonable  out-of-pocket
          expenses incurred in connection with audits and inspections,  (iv) the
          defense or enforcement of the Loan  Documents,  and (v) the defense or
          enforcement of the Loan Documents and the amendment,  restructuring or
          "workout" of any of the Loan Documents.

                                       10
<PAGE>

     (i)  Compliance with Agreements and Law.  Perform all material  obligations
          it is required to perform under the terms of each indenture, mortgage,
          deed  of  trust,  security  agreement,  lease,  franchise,  agreement,
          contract or other  instrument  or obligation to which it is a party or
          by  which  it or  any of its  properties  is  bound  and  conduct  its
          business,  and affairs in compliance with all Laws,  regulations,  and
          orders applicable thereto.

     (j)  Fiscal  Year.  Maintain a fiscal year which ends on  December  31st of
          each year.

     (k)  Character of Business.  Continue to engage in  substantially  the same
          type of business engaged in as of the Closing Date.

     (l)  Litigation.  Give  prompt  written  notice to  Lender of any  material
          proceeding,  claim or dispute that is not fully  covered by insurance,
          any material labor dispute  resulting in or threatening to result in a
          strike against it, or any proposal by any public authority  respecting
          a  condemnation  or taking of any  material  portion  of any  material
          property or other asset (but only when such proposal  becomes known to
          Borrower),  and  take or  cause  to be  taken  all  such  steps as are
          necessary  or  appropriate  to  defend,  negotiate  or respond to such
          proceedings, disputes or proposals.

     (m)  Collateral  Security.  (a) Ensure  that all Liens  granted in favor of
          Lender  hereunder  shall be valid,  enforceable,  perfected  and first
          priority  Liens;  (b)  perform  all  such  acts and  execute  all such
          documents as Lender may  reasonably  request in order to enable Lender
          to  report,  file and record  every  instrument  that  Lender may deem
          necessary in order to perfect and maintain the Liens granted to Lender
          in the Collateral,  and otherwise do all things  necessary to perfect,
          and maintain as perfected,  first  priority  Liens with respect to all
          Liens of Lender now existing or hereafter  granted in the  Collateral;
          and (c)  immediately  notify  Lender in  writing  of any  damage to or
          material adverse occurrence concerning the Collateral or the moving of
          Collateral to any place where it is not currently located.

     (n)  Authorizations  and Approvals.  Obtain,  at its own expense,  all such
          licenses,  authorizations,  consents,  permits and approvals as may be
          required to enable it to comply  with its  obligations  hereunder  and
          under the other Loan Documents.

     (o)  Protection  of Business  Records.  Borrower  hereby agrees to take all
          necessary  protective  actions in order to prevent  destruction of its
          business  records,  including  but not  limited  to:  (i) if  Borrower
          maintains its business records or back-up business records on a manual
          system, then such records shall be kept, keeping all of same in a fire
          proof  cabinet,  and  (ii)  if  its  records  are  computerized  or in
          electronic  form,  then  Borrower  agrees to create a tape or diskette
          "back-up"  of the  computerized  information  on a regular and prudent
          basis, and (a) maintain a complete and accurate duplicate copy of such
          tape or diskette  back-up at a secure  off-site,  fire-proof  or other
          central location, and (b) upon Lender's request, provide Lender with a
          complete  and  accurate  duplicate  copy  of its  tapes  or  diskettes
          containing information current through the end of the calendar month.

     (p)  Environmental  Duties.  (a) comply in all material  respects  with all
          environmental,  health, and safety laws and regulations  applicable to
          it, the  failure to comply  with which  could have a material  adverse
          effect;   (b)  give  notices  to  Lender  immediately  upon  acquiring
          knowledge of the presence of any hazardous materials  contamination at
          its place or places of business with a full description  thereof;  (c)
          promptly notify Lender of the threat or commencement of any proceeding
          alleging a material violation of any  environmental,  health or safety
          laws or  regulations;  and (d) promptly  comply with any  governmental
          requirements requiring the renewal, treatment,  mitigation or disposal
          of such hazardous materials or hazardous  materials  contamination and
          provide Lender with satisfactory evidence of such compliance.

     (q)  Primary Depository.  Borrower shall establish and maintain its primary
          bank depository relationship with Lender.

                                       11
<PAGE>

     (r)  Additional  Information;  Further  Assurances.  Upon  the  request  of
          Lender,  provide to Lender such  additional  information or reports as
          Lender may reasonably  request and take such actions or care necessary
          to comply with the terms of the Loan Documents.

5.2. Negative  Covenants.  Borrower  warrants,  covenants  and agrees on its own
     behalf that until the full and final  payment of the  Indebtedness  and the
     termination of this Agreement,  Borrower will not do the following  without
     the prior written consent of Lender:

     (a)  Limitations  on  Liens.  Create,  assume  or permit to exist any Lien,
          including,  without limitation,  any purchase money security interest,
          upon any of the  properties  or assets  which it now owns or hereafter
          acquires,  except (i) Liens at any time  existing  in favor of Lender,
          (ii) Liens  securing  the  Subordinated  Debt,  if any, as approved by
          Lender, (iii) Liens for taxes not yet due or which are being contested
          in good  faith by  appropriate  proceedings,  provided  that  adequate
          reserves  with  respect  thereto are  maintained  on the books of such
          Borrower in conformity with GAAP, and (iv) carriers',  warehousemen's,
          lessors', mechanics',  materialmen's,  repairmen's or other like Liens
          arising in the ordinary course of business which are not overdue for a
          period of more than  sixty (60) days or which are being  contested  in
          good faith by appropriate proceedings; provided that adequate reserves
          with respect  thereto are  maintained on the books of such Borrower in
          conformity with GAAP.

     (b)  Limit  on  Indebtedness.  Incur or  assume  any  Debt  other  than the
          Indebtedness  and other than trade  payables  incurred in the ordinary
          course of business, without prior Lender consent. Any Debt, other than
          Debt to Lender,  shall be subordinated to Lender, and Borrower may not
          make any payments on other Debt (other than trade accounts  payable as
          incurred) without Lender's prior written consent.

     (c)  Limitation on Sales of Collateral.  Sell, transfer,  lease,  exchange,
          alienate  or  dispose  of  any  Collateral  or any  material  interest
          therein,   including  without  limitation,   any  sale  or  pledge  of
          Receivables or Inventory,  except in the ordinary  course of business,
          without  Lender's  prior  written  consent.  Any such sale,  transfer,
          lease, exchange or disposition shall subject Borrower to the mandatory
          prepayment of principal set forth in Section 2.7.

     (d)  Limitation on Investments and New Businesses. (i) Make any expenditure
          or commitment  or incur any  obligation or enter into or engage in any
          transaction except in the ordinary course of business,  including, but
          not  limited  to, the  opening  of any new  business  location  or the
          incurrence of any expense not  specifically  related to the day to day
          operation  of the  business of  Borrower,  or (ii) engage  directly or
          indirectly  in any  business  or  conduct  any  operations  except  in
          connection with or incidental to its present business and operations.

     (e)  Other  Guaranties.  Be or become  liable with  respect to any guaranty
          (including without limitation any agreement, instrument or arrangement
          in  which  the  economic  effect  is  substantially  equivalent  to  a
          guaranty).

     (f)  Dividends. Directly or indirectly declare or pay any dividends or make
          any other  distribution  upon any shares of its  capital  stock of any
          class, or purchase,  redeem or otherwise acquire or retire or make any
          provisions for redemption,  acquisition or retirement of any shares of
          its capital  stock of any class or warrants or options to purchase any
          such shares; provided,  however, that if Borrower is a sub-chapter "S"
          corporation,  as  defined by the  Internal  Revenue  Code of 1986,  as
          amended,  Borrower may pay quarterly  distributions,  without Lender's
          prior  written  consent,  in an  amount  not to exceed  the  quarterly
          estimated  federal  income  tax  liabilities  of the  shareholders  of
          Borrower  incurred in connection with their ownership of Borrower;  in
          which case,  Borrower shall promptly furnish to Lender,  within thirty
          (30) days of payment,  written  notice and  evidence of payment of any
          federal income tax payments made from such distributions.

     (g)  Capital Leases. Directly or indirectly incur, assume, guaranty or have
          outstanding  any  capitalized   lease  obligations  other  than  those
          existing on the Closing Date.

                                       12
<PAGE>

     (h)  Loans or Extensions of Credit. Directly or indirectly loan, invest in,
          or extend  credit to any Person,  including  any officer,  director or
          shareholder of Borrower.

     (i)  Issuance of Securities. Authorize or issue any shares of capital stock
          other than common stock and preferred stock currently outstanding,  or
          issue  shares  of  common  stock or  preferred  stock  or  convertible
          indebtedness,  options,  warrants,  or other securities  evidencing or
          representing  a right to purchase or receive common stock or preferred
          stock.

     (j)  Transactions;  No Affiliate  Receivables.  Enter into any transaction,
          including,  without  limitation,  the  purchase,  sale or  exchange of
          property,  the  making  of  lease  payments  or the  rendering  of any
          service,  with any  Affiliate;  nor shall Borrower enter into any such
          transaction with any Person (including  Borrower's  Affiliates) except
          in the ordinary course of, and pursuant to the reasonable requirements
          of business and upon fair and reasonable  terms no less favorable than
          would be obtained in a comparable  arm's-length  transaction  with any
          other Person.

     (k)  Negative Pledge of Assets.  Pledge,  mortgage,  hypothecate or grant a
          lien or  security  interest  in, or permit or suffer the  creation  or
          existence  of any pledge,  mortgage,  hypothecation,  lien or security
          interest in or encumbrance on, any of the assets of Borrower.

     (l)  Merger, Consolidation, Liquidation, Acquisition, Reorganization. Merge
          or  consolidate  its business  with any other  Person,  liquidate  its
          business  or acquire  any assets or capital  stock of another  Person,
          change its name, or reorganize or  reconstitute as a different type of
          entity  or  as  an  entity   governed  by  the  laws  of  a  different
          jurisdiction.

     (m)  Sales or Transfer of Assets.  Sell,  transfer or otherwise  dispose of
          its assets  (except that  Borrower may sell  Inventory in the ordinary
          course of  business  and may sell or  dispose of  individual  items of
          furniture, fixture and equipment in the ordinary course of business so
          long as such items are replaced).

     (n)  Change  in  Accounting  Methods.   Change  its  method  of  accounting
          including,   without  limitation,   its  method  of  depreciation  and
          accounting  for  Receivables,  except  as  required  by GAAP or by the
          pronouncements  of  the  Financial   Accounting  Standards  Board  and
          promptly reported to Lender.

     (o)  Change of Ownership or Control.  Permit any change in the ownership or
          control of Borrower, or permit the sale, transfer or conveyance of any
          shares or other interest in Borrower.

     (p)  Change  of  Management.  Permit  any  change in the  senior  executive
          management of Borrower.

     (q)  Tax  Consolidation.  File any consolidated  income tax return with any
          Person or Persons.

     (r)  Other  Agreements.  Enter into any material  agreement or  arrangement
          that  would  be  violated  or  breached  by  the  performance  of  its
          obligations hereunder or under any of the Loan Documents.

     (s)  No Amendments. Amend its Formation Documents without the prior written
          consent of Lender,  which will not be  unreasonably  withheld  if such
          amendment  does not  materially  and  adversely  affect  such  party's
          ability to perform its duties and  obligations  hereunder or under any
          of the Loan Documents.

     (t)  Third Party  Compensation.  Permit the payment of any  Compensation to
          any officer, director,  shareholder or Affiliate of Borrower in excess
          of the fair market value of such service.

     (u)  Modification  of Existing  Agreements.  Amend,  modify,  or  otherwise
          change  in  any  respect  any  material  agreement,   instrument,   or
          arrangement (written or oral) by which Borrower, or any of its assets,
          are bound.

                                       13
<PAGE>

     (v)  ERISA.  Become subject to Title IV of the Employee  Retirement  Income
          Security Act of 1974, as amended, or the minimum funding  requirements
          of the Employee Retirement Income Security Act of 1974, as amended, or
          the Internal Revenue Code of 1986, as amended.

                                   ARTICLE VI
                               SECURITY AGREEMENT

6.1. Grant of Security  Interest.  As  collateral  security  for the payment and
     performance  of the  Indebtedness  and  any and all  other  liabilities  of
     Borrower  to  Lender,  direct  or  contingent,  of any  nature  whatsoever,
     including  both purchase money and  non-purchase  money  transactions  (and
     specifically  including  the  Loan),  Borrower  hereby  grants  to Lender a
     continuing  security  interest in all  personal  property of Borrower  (the
     "Collateral"),  wherever  located and whether such property is now owned or
     existing or is owned,  acquired,  or arises hereafter,  including,  without
     limitation,  acquisition by contract or by operation of law,  including but
     not limited to the following:  Accounts,  Commercial  Tort Claims,  Chattel
     Paper, Deposit Accounts,  Documents,  Equipment,  Farm Products,  Fixtures,
     General Intangibles,  Goods, Instruments,  Inventory,  Investment Property,
     Letter-of-Credit Rights and all Supporting Obligations and Proceeds (unless
     otherwise defined herein,  capitalized terms used in this Section 6.1 shall
     have the meanings given to them in the Uniform  Commercial  Code as adopted
     in the State of Texas).

6.2. Power of Attorney.  Borrower hereby designates and appoints Lender and each
     of  Lender's   designees  or  agents  as   attorney-in-fact   of  Borrower,
     irrevocably and with power of  substitution,  with authority to take any or
     all of the following actions upon the occurrence and during the continuance
     of an Event of Default:  (i) with respect to  Receivables,  audit,  verify,
     demand, collect,  receive, settle,  compromise,  adjust and give discharges
     and releases, all as Lender may determine,  (ii) commence and prosecute any
     actions in any court for the purposes of collecting  or realizing  upon any
     Collateral and enforcing any other rights in respect thereof, (iii) defend,
     settle or compromise any action brought and, in connection therewith,  give
     such  discharge or release as Lender may deem  appropriate,  (iv)  receive,
     open and dispose of mail addressed to Borrower and endorse  checks,  notes,
     drafts,  acceptances,  money orders, bills of lading, warehouse receipts or
     other instruments or documents  evidencing payment,  shipment or storage of
     the goods  giving  rise to any  Collateral  on behalf of and in the name of
     Borrower,  or securing,  or relating to the Collateral,  (v) sell,  assign,
     transfer,  make any  agreement  in respect  of, or  otherwise  deal with or
     exercise  rights in respect  of, any  Collateral  or the goods or  services
     which have given rise  thereto,  as fully and  completely  as though Lender
     were the absolute  owner thereof for all  purposes,  (vi) adjust and settle
     claims under any insurance policy related  thereto,  and (vii) enter on the
     premises of Borrower in order to exercise any of its rights and remedies.

6.3. No Duty of  Lender.  Lender  shall  have  no duty as to the  collection  or
     protection  of the  Collateral  nor as to the  preservation  of any  rights
     pertaining thereto. Borrower hereby releases Lender from any claims, causes
     of action and demands at any time arising out of the Collateral and its use
     and/or any  actions  taken by Lender with  respect  thereto,  and  Borrower
     hereby agrees to indemnify  Lender and to hold Lender harmless from any and
     all such claims, causes of action and demands.

6.4. Collection of Receivables.  Lender  reserves the right,  either prior to or
     following  the  occurrence  of an Event of  Default,  to notify the Account
     Debtors of the Liens provided for in this Agreement and direct such Account
     Debtors  to pay  Receivables  directly  to Lender  or to a lockbox  address
     controlled by Lender. Upon request, Borrower shall join Lender in providing
     such  notification to the Account  Debtors and shall execute  Lender's then
     current form of lockbox agreement.  Prior to Lender exercising its right to
     collect  the  Receivables  pursuant to this  Section  6.4,  Borrower  shall
     collect  with   diligence   its   respective   Receivables.   Lender  shall
     additionally  have the right  from time to time prior to or  following  the
     occurrence  of an Event of  Default,  to contact  Account  Debtors  for the
     purpose of confirming Receivables.

6.5. Perfection and Protection of Liens. Borrower hereby irrevocably  authorizes
     Lender to file (and will upon  Lender's  request  execute  and  deliver  to
     Lender)  any  financing  statements,   continuation  statements,  extension
     agreements  and other  documents,  properly  completed  and  executed  (and
     acknowledged when required) by Borrower in form and substance  satisfactory
     to  Lender,  for the  purpose  of  perfecting,  confirming,  or  protecting
     Lender's Liens and other rights in the Collateral.

                                       14
<PAGE>

6.6. Notice of Assignment. All Receivables,  chattel paper, leases, instruments,
     documents and other  agreements  entered into by Borrower and  constituting
     Collateral or shall contain (by way of stamp or other means satisfactory to
     Lender)  the  following  language:  "COLLATERALLY  ASSIGNED  TO PARK CITIES
     BANK".

                                   ARTICLE VII
                         EVENTS OF DEFAULT AND REMEDIES

7.1. Nature of Event.  An Event of Default  shall exist if any of the  following
     occurs and is continuing:

     (a)  Principal  and  Interest.  Borrower  fails  to  make  any  payment  or
          mandatory prepayment of principal and/or interest on the Note when due
          and  payable,  and  such  failure  remains  unremedied  five  (5) days
          following written notice from Lender;

     (b)  Loan Documents. Borrower or any Guarantor (each an "Obligated Person")
          fails to perform or to observe  any  covenant or  agreement  contained
          herein or in any of the Loan  Documents,  other  than the  payment  of
          principal  and/or  interest  referred to in Section 7.1(a) above,  and
          such failure remains unremedied ten (10) days following written notice
          from Lender;

     (c)  Other Agreements.  Any Obligated Person fails to duly observe, perform
          or comply with any agreement  with any Person or any term or condition
          of any  instrument  and such failure is not  remedied  within the cure
          period, if any, provided therein;

     (d)  Representations   and  Warranties.   Any  representation  or  warranty
          previously,  presently  or  hereafter  made  by or on  behalf  of  any
          Obligated  Person in  connection  with any Loan Document is incorrect,
          false or misleading in any respect when made or deemed to be made;

     (e)  Receivership.  A  receiver,  custodian,  liquidator  or trustee of any
          Obligated  Person, or any of its assets is applied for by court order;
          an order for relief under any bankruptcy or insolvency  Laws is sought
          after the filing of a petition by or against any Obligated Person; any
          of its assets are subject to an action seeking to replevy,  sequester,
          garnish,  attach or levy against  such; or a petition to reorganize or
          rehabilitate any Obligated Person under any bankruptcy, reorganization
          or insolvency Laws is filed against any Obligated Person;

     (f)  Reorganization.   Any  Obligated   Person   requests   reorganization,
          arrangement, composition, readjustment,  dissolution,  rehabilitation,
          liquidation  or similar  relief under any  provision of any present or
          future Law or consents to the filing of any petition  against it under
          such Law;

     (g)  Assignment for Benefit of Creditors.  Any Obligated Person (i) makes a
          general  assignment for the benefit of its  creditors,  (ii) admits in
          writing its  inability to pay its debts  generally as they become due,
          (iii)  generally  fails to pay its  debts  as they  become  due,  (iv)
          consents to the  appointment  of a receiver,  trustee or liquidator of
          all or any part of its assets,  or (v)  otherwise  commits any similar
          act;

     (h)  Judgments.  Any judgment, writ or warrant of attachment or any similar
          process is entered or filed against any Obligated Person or any of its
          assets and remains unpaid, unvacated,  unbonded or unstayed for thirty
          (30)  days or for at least  ten (10)  days  prior to the date on which
          such assets may be lawfully  sold to satisfy  such  judgment,  writ or
          warrant;

     (i)  Garnishment.  A writ of  garnishment  is issued  against  Lender  with
          respect to any accounts or property  held or controlled by Lender with
          respect to any Obligated Person;

     (j)  Enforceability of Loan Documents.  Any of the Loan Documents shall, in
          whole or in part,  (i) cease to be legal,  valid,  binding  agreements
          enforceable  against any Person executing the same, (ii) in any way be
          terminated or become or be declared  ineffective or inoperative by any
          Tribunal,  or (iii) in any way cease to give or provide the respective
          Liens,  rights,  titles,  interest,  remedies,  powers  or  privileges
          intended to be created thereby;

                                       15
<PAGE>

     (k)  Other  Indebtedness.  Any Obligated  Party shall  default,  beyond any
          applicable  notice  and cure or grace  period,  upon any  Indebtedness
          owing to Lender;

     (l)  Matters  Affecting  Guarantors.  The death of any  Guarantor  who is a
          natural   person  or  the  merger  or  dissolution  of  any  corporate
          Guarantor;

     (m)  Termination of Any Guaranty.  Any Guarantor notifies Lender that he is
          terminating his liability under a Guaranty;

     (n)  Insecurity. Lender, in good faith, shall deem itself insecure; or

     (o)  Material Adverse Change.  Borrower or any Guarantor suffers a material
          adverse change in its business or financial condition.

     Notwithstanding  any other provision  relating to notices and opportunities
to remedy defaults contained in this Agreement,  if a Potential Event of Default
exists because of a willful breach by Borrower of any  representation,  warranty
or covenant  contained in this  Agreement or in any of the other Loan  Documents
and if such  Potential  Event of Default  would  adversely  affect the rights of
Lender in relation to other  creditors of Borrower  prior to  expiration  of the
cure period for such  Potential  Event of Default,  then Lender may exercise the
remedies set forth in Section 7.2 without giving such notice and  opportunity to
remedy such event or condition.

7.2. Default Remedies. Upon and after an Event of Default, Lender shall have and
     may exercise the following rights and remedies,  which individual  remedies
     shall not be exclusive and which  individual  remedies  shall be cumulative
     and in addition to each and every other  remedy set forth herein and in the
     Loan  Documents  and  the  other  agreements  and  documents   executed  in
     connection with the transactions contemplated hereby:

     (a)  The right to (i) accelerate the entire  outstanding  principal balance
          together  with all  accrued but unpaid  interest  on the  Indebtedness
          (specifically  including  the Note) and all other sums due and payable
          by Borrower to Lender without demand, presentment, notice of dishonor,
          notice  of  intent  to demand  or  accelerate  payment,  diligence  in
          collection,  grace,  notice and protest or legal  process of any kind,
          all of which  Borrower  hereby  expressly  waives,  (ii) terminate its
          commitment  to lend  hereunder,  and (iii)  immediately,  without  any
          period of grace, enforce payment of the Indebtedness by exercising any
          and all of the rights granted herein.

     (b)  Lender may, at its option,  without  notice or demand,  take immediate
          possession of the Collateral,  and for that purpose Lender may, so far
          as Borrower can give  authority  therefor,  enter upon any premises on
          which any of the  Collateral is situated and remove the same therefrom
          or remain on such premises and in possession  of such  Collateral  for
          purposes of  conducting a sale or enforcing the rights of Lender under
          this  Agreement.  Borrower  will,  upon  demand,  make the  Collateral
          available to Lender at a place and time  designated by Lender.  Lender
          may  collect  and  receive  all income and  proceeds in respect to the
          Collateral  and may apply the  Collateral  and any and all  income and
          proceeds  in  respect  of  the   Collateral  to  the  payment  of  all
          obligations of Borrower to Lender.

     (c)  Lender may sell, lease or otherwise  dispose of the Collateral (or any
          portion thereof) at a public or private sale or sales, with or without
          express  or  implied  warranties  (including  without  limitation  the
          warranty  of  merchantability),  in lots or in  bulk,  for  cash or on
          credit,  with or without  having the  Collateral at the place of sale,
          and  upon  terms  and in  such  manner  as  Lender  may  determine  in
          accordance with applicable Law, and Lender may purchase any Collateral
          at any such sale to the extent permitted by applicable law,  including
          the Uniform  Commercial Code. The requirement of reasonable  notice to
          Borrower of the time and place of any public sale of the Collateral or
          of the time after  which any  private  sale either by Lender or at its
          option, through a broker, or any other intended disposition thereof is
          to be made, shall be met if such notice is mailed, postage prepaid, to
          Borrower  at the address of  Borrower  designated  herein at least ten
          (10) days before the date of any public sale or at least ten (10) days
          before the time after which any private sale or other  disposition  is
          to be made.  Lender  shall  not be  obligated  to make any sale of the

                                       16
<PAGE>

          Collateral  regardless of notice of sale having been given. Lender may
          adjourn any public or private  sale from time to time by  announcement
          at the time and place  fixed  therefor,  and such  sale  may,  without
          further  notice,  be made at the  time  and  place  to which it was so
          adjourned.  Upon any such sale or sales the  Collateral  so  purchased
          shall be held by the  purchaser  absolutely  free  from any  claims or
          rights  of  whatsoever  kind  or  nature,   including  any  equity  of
          redemption and any similar  rights,  all such equity of redemption and
          any similar  rights  being  hereby  expressly  waived and  released by
          Borrower.  In the event any consent,  approval or authorization of any
          governmental  agency will be necessary to effectuate  any such sale or
          sales,   Borrower  shall  execute  all  such   applications  or  other
          instruments as may be required.

     (d)  Prior to any  disposition  of Collateral  pursuant to this  Agreement,
          Lender may, at its option,  cause any of the Collateral to be repaired
          or  reconditioned  in such  manner  and to such  extent  as to make it
          saleable, and any reasonable sums expended therefor by Lender shall be
          repaid by Borrower and become part of the Indebtedness.

     (e)  In addition to the remedies provided for herein or otherwise available
          to Lender,  Lender is hereby  granted a license or other right to use,
          without charge, Borrower's labels, patents, copyrights,  rights of use
          in any name, trade secrets, trade styles, trade names,  trademarks and
          advertising  matter,  or  any  property  of a  similar  nature,  as it
          pertains to the  Collateral,  in advertising  for sale and selling any
          Collateral,  and  Borrower's  rights under all licenses and  franchise
          agreements shall inure to Lender's benefit.

     (f)  The right (without implying Lender did not have this right prior to an
          occurrence  of an Event of  Default)  to  contact  Account  Debtors of
          Borrower and demand that payment on any  Receivables  be made directly
          to Lender.

     (g)  The right to appoint or seek  appointment of a receiver,  custodian or
          trustee of Borrower  or any of its assets  pursuant to court order and
          Borrower  hereby  consents  to such  appointment  and will not  oppose
          Lender's efforts to obtain the same.

     (h)  Any and all rights and remedies afforded by the Laws of any applicable
          jurisdiction,  the Loan Documents or as otherwise afforded by any Laws
          or equity  including  the right of a secured  party  under the Uniform
          Commercial Code in the applicable jurisdiction.

     (i)  The right to use and/or  operate  the  Collateral  wherever  it may be
          located, including, without limitation, as permitted under the Uniform
          Commercial Code as enacted in all applicable jurisdictions.

     (j)  Any rights of setoff that Lender may have under applicable Law against
          each and every account and other  property,  Collateral or other asset
          of Borrower or any Guarantor in the possession or under the control of
          Lender.

7.3. Application of Proceeds. All amounts realized by Lender with respect to the
     Indebtedness,  including  amounts  prepaid or realized  with respect to the
     sale,  lease or other  disposition of the Collateral  under or by virtue of
     the Loan Documents,  including any sums which may be held by Lender, or the
     proceeds of any thereof,  shall be applied (i) first, to the payment of the
     costs  and  expenses  owing  under  any of the  Loan  Documents,  including
     reasonable compensation to Lender and Lender's agents and attorneys, of all
     expenses,  liabilities  and advances made or furnished or incurred by or on
     behalf of Lender under this Agreement or any Loan Document or any amendment
     to,  restructuring or "workout" of same, (ii) second, to the payment of any
     other sums due to Lender, or any successors or assigns thereof, pursuant to
     the terms of any Loan  Document,  except for  principal  of and accrued and
     unpaid  interest on the Note,  (iii)  third,  to the payment of accrued and
     unpaid interest on the outstanding principal of the Note, in such order and
     manner as Lender may determine, in its sole discretion, (iv) fourth, to the
     payment of the  outstanding  principal of the Note (as  applicable) in such
     order and  manner as Lender  may  determine,  in its sole  discretion,  (v)
     fifth,  to the  establishment  of a  reserve  held by  Lender  equal to the
     aggregate Letter of Credit  Liabilities,  and (vi) sixth,  the surplus,  if
     any, to Borrower,  or to whomever shall be lawfully entitled to receive the
     same, as a court of competent  jurisdiction  may direct.  If any deficiency
     shall arise,  Borrower and Guarantor  jointly and  severally,  shall remain
     liable to Lender.

7.4. Performance by Lender.  Should any covenant,  duty or agreement of Borrower
     fail to be performed in  accordance  with the terms of the Loan  Documents,
     Lender may, at its  option,  perform or attempt to perform or enforce  such
     covenant,  duty or agreement on behalf of Borrower. All amounts expended in
     connection therewith,  together with interest from the date incurred, shall
     become a part of the  Indebtedness.  Notwithstanding  the foregoing,  it is

                                       17
<PAGE>

     expressly   understood  that  Lender  does  not  assume  any  liability  or
     responsibility  for the performance of any duties of Borrower  hereunder or
     under any of the other Loan  Documents or other control over the management
     and affairs of Borrower.

7.5. Cumulative  Rights.  All rights and remedies  available to Lender hereunder
     and under the other Loan  Documents  shall be cumulative of and in addition
     to all other  rights  and  remedies  granted to Lender at Law or in equity,
     whether or not the Indebtedness (or any portion thereof) is due and payable
     and  whether  or  not  Lender  has  instituted  any  suit  for  collection,
     foreclosure or any other action in connection with the Loan Documents.

7.6. General Indemnity. Borrower promises to indemnify Lender, upon demand, from
     and against any and all liabilities,  obligations, claims, losses, damages,
     penalties,  actions,  judgments, suits, costs, expenses or disbursements of
     any kind or nature  whatsoever  which may be imposed  on,  incurred  by, or
     asserted  against Lender or any of its directors,  officers or employees or
     agents (including,  accountants, attorneys and other professionals hired by
     Lender) (whether or not caused by any negligent act or omission of any kind
     by Lender)  growing out of or  resulting  from the Loan  Documents  and the
     transactions and events at any time associated therewith (including without
     limitation  the  enforcement  of the  Loan  Documents  and the  defense  of
     Lender's actions and inactions in connection with the Loan).

7.7. Environmental  Indemnity by Borrower and Guarantor.  Borrower and Guarantor
     hereby  jointly  and  severally  indemnify  and agree to hold  Lender,  its
     directors, officers, and employees (collectively the "Indemnitee") harmless
     from and against any and all liabilities, losses, judgments, damages, costs
     and expenses,  (including,  without limitation,  reasonable attorneys' fees
     and  fees  of  environmental  consultants)  (collectively,   "Environmental
     Costs") arising in any manner in connection with:

     (a)  The  presence of any  substance,  gas or material  which is  regulated
          under  environmental  Laws ("Hazardous  Material"),  or underground or
          above-ground storage tanks or wells (an "Environmental  Condition") in
          existence at any property (the "Controlled  Property") now or formerly
          owned,  leased,  or  operated  by  Borrower  or  any  Guarantor;   the
          occurrence, at any time during or prior to the ownership,  tenancy, or
          operation of the Controlled Property by Borrower or any Guarantor,  of
          the storage, emission, discharge, disposal or release of any Hazardous
          Material (an "Environmental  Activity"); or any failure of Borrower or
          any  Guarantor or any third party to comply with all  applicable  Laws
          (environmental or otherwise) relating to the Controlled Property;

     (b)  The transportation to, disposal at, or migration onto or into adjacent
          property or any off-site location of any Hazardous  Materials from any
          Controlled  Property  as a  result  of  Environmental  Activity  or an
          Environmental  Condition  that occurred or existed  during or prior to
          the use of the  Controlled  Property  by  Borrower  or any  Guarantor,
          whether or not the  transportation  or disposal was  conducted in full
          compliance with all applicable Laws (environmental or otherwise); and

     (c)  Any  claim,  demand  or  cause  of  action,  or any  action  or  other
          proceeding,  including any  investigation,  inquiry,  order,  hearing,
          action by or before any Tribunal,  whether meritorious or not, brought
          or asserted  against any Indemnitee which is alleged to or directly or
          indirectly  relates to,  arises from or is based on any of the matters
          described in clauses (a) and (b) of this Section 7.7.

     The  obligations of this Section 7.7 shall include the obligation to defend
Indemnitee  against any claim or demand for Environmental  Costs, the obligation
to pay and discharge any  Environmental  Costs  imposed on  Indemnitee,  and the
obligation  to reimburse  Indemnitee  for any  Environmental  Costs  incurred or
suffered  by   Indemnitee,   provided  in  each  instance  that  the  claim  for
Environmental  Costs arises in connection with a matter for which  Indemnitee is
entitled  to   indemnification   under  this   Agreement.   The  scope  of  this
indemnification shall also include  indemnification  against Environmental Costs
whether  or not  they  are  caused  in  whole  or in part by the  negligence  of
Indemnitee.  This Section 7.7 shall  survive the full  payment of the debt,  any
foreclosure(s) on the Collateral, and the termination of this Agreement.

                                       18
<PAGE>

7.8. Borrower's  Remedies.  No action,  suit or  proceeding  may be initiated or
     commenced by Borrower or any  Guarantor  against  Lender under the terms of
     this  Agreement  or by reason of any conduct or omission in any way related
     to this Agreement  unless Lender  receives  written notice from Borrower or
     such  Guarantor  specifically  setting  forth  the  claim  of  Borrower  or
     Guarantor  within thirty (30) days after Borrower or Guarantor  discover or
     should have discovered the event or occurrence  which Borrower or Guarantor
     assert gave rise to such claim.  Moreover, in any event, Lender shall never
     be liable to Borrower  or any  Guarantor  for  consequential  or  exemplary
     damages,  whatever  the  nature  of the  alleged  breach  by  Lender of the
     obligations of Lender hereunder.

                                  ARTICLE VIII
                                  MISCELLANEOUS

8.1. Waiver  and  Amendment.  No failure  or delay by Lender in  exercising  any
     right,  power or remedy under any of the Loan Documents  shall operate as a
     waiver thereof or of any other right, power or remedy, nor shall any single
     or partial  exercise by Lender of any such right,  power or remedy preclude
     any other or  further  exercise  thereof  or of any other  right,  power or
     remedy.  No waiver of any  provision of any Loan Document and no consent to
     any departure therefrom shall ever be effective unless it is in writing and
     signed by Lender,  and then such waiver or consent shall be effective  only
     in the specific  instances  and for the purposes for which given and to the
     extent specified in such writing.  No notice to or demand on Borrower shall
     entitle  Borrower  to any other or  further  notice or demand in similar or
     other  circumstances.  No  modification,  amendment or  supplement  to this
     Agreement or the other Loan  Documents  shall be valid or effective  unless
     the same is in writing and signed by the party against whom it is sought to
     be enforced.  The acceptance by Lender at any time and from time to time of
     a partial payment of the Indebtedness shall not be deemed to be a waiver of
     any Event of  Default  then  existing.  No waiver by Lender of any Event of
     Default  shall be  deemed  to be a waiver of any  other  then  existing  or
     subsequent Event of Default.

8.2  Survival of  Agreements.  All of the various  representations,  warranties,
     covenants and agreements in the Loan Documents  shall survive the execution
     and  delivery  of this  Agreement  and the  other  Loan  Documents  and the
     performance hereof and thereof,  including without limitation the making or
     granting of the  security  interests  and the  delivery of the Note and the
     other  Loan  Documents,   and  shall  further  survive  until  all  of  the
     Indebtedness  is paid in full to Lender and all of Lender's  obligations to
     Borrower are terminated.

8.3. Relief in Bankruptcy.  Borrower hereby agrees that, in consideration of the
     recitals  and mutual  covenants  contained  herein,  and for other good and
     valuable  consideration,  in the  event  Borrower  shall  (i) file with any
     bankruptcy  court  of  competent  jurisdiction  or be  the  subject  of any
     petition under Title 11 of the U.S.  Code, as amended,  (ii) be the subject
     of any order for relief  issued  under such Title 11 of the U.S.  Code,  as
     amended,  (iii)  file  or be  the  subject  of  any  petition  seeking  any
     reorganization,   rearrangement,   composition,   adjustment,  liquidation,
     dissolution, or similar relief under any present or future state act or law
     relating to bankruptcy,  insolvency or other relief for debtors,  (iv) have
     sought or consented to or  acquiesced  to any  appointment  of any trustee,
     receiver,  conservator,  or liquidator, or (v) be the subject of any order,
     judgment or decree entered by any court of competent jurisdiction approving
     a petition filed against such part for any  reorganization,  rearrangement,
     composition, adjustment, liquidation,  dissolution, or similar relief under
     any present or future  federal or state act of law relating to  bankruptcy,
     insolvency  or relief for debtors,  Lender  shall  thereupon be entitled to
     relief from the  automatic  stay  imposed by Section 362 of Title 11 of the
     U.S.  Code,  as amended,  or  otherwise,  on or against the exercise of the
     rights and remedies  otherwise  available to Lender as provided herein,  in
     the Loan Documents, any other document or instrument executed in connection
     herewith or therewith,  and as otherwise  provided by applicable  state and
     federal law.

8.4. No Obligation Beyond Maturity. Borrower agrees and acknowledges that on the
     Maturity Date, Lender shall have no obligation to renew, extend,  modify or
     rearrange the Note, and shall have the right to require all amounts due and
     owing under the Loan to be paid in full upon the maturity thereof.

8.5. Notices.  Except as  otherwise  provided  herein,  all  notices,  requests,
     consents,  demands and other communications required or permitted under any
     Loan  Document  shall be in  writing  and,  unless  otherwise  specifically
     provided  in such  Loan  Document,  shall be deemed  sufficiently  given or
     furnished  if  delivered by personal  delivery,  by telecopy,  by expedited
     delivery  service with proof of  delivery,  or by  registered  or certified
     United States mail, first class postage prepaid, at the addresses specified
     below (unless  changed by similar notice in writing given by the particular

                                       19
<PAGE>

     Person whose address is to be changed).  Borrower hereby  acknowledges that
     any notice or communication delivered as herein provided shall be effective
     notice upon Borrower,  and Borrower  hereby assumes the  responsibility  of
     coordinating   the   distribution   of  such   notice  to  any   particular
     representative, director, officer, or employee of Borrower. Any such notice
     or  communication  shall be deemed to have been given either at the time of
     personal delivery or, in the case of delivery  service,  or mail, as of the
     date of first attempted  delivery at the address and in the manner provided
     herein, or in the case of telecopy, upon receipt.

                  Borrower's address:

                  ENVIROCLEAN MANAGEMENT SERVICES, INC.
                  12750 Merit Drive, Suite 770
                  Dallas, Texas 75251
                  Attn: Matthew H. Fleeger
                  Facsimile: 972-776-8778

                  Lender's address:

                  PARK CITIES BANK
                  5307 E. Mockingbird Lane, Suite 200
                  Dallas, Texas 75206
                  Attn: Mike Emerson
                  Facsimile: 214-370-4501

8.6. Successors and Assigns. The Loan Documents shall be binding and shall inure
     to the benefit of the parties thereto and their  respective  successors and
     assigns; provided, however, that Borrower may not assign or transfer any of
     its  rights or  delegate  any of its duties or  obligations  under any Loan
     Document without the prior written consent of Lender.

8.7. Governing  Law/Venue.  THE LOAN  DOCUMENTS  SHALL BE DEEMED  CONTRACTS  AND
     INSTRUMENTS  MADE  UNDER THE LAWS OF THE STATE OF TEXAS,  THE  LOCATION  OF
     LENDER'S  PRINCIPAL  PLACE OF BUSINESS,  AND SHALL BE CONSTRUED AND ANY AND
     ALL CLAIMS,  DEMANDS,  OR ACTIONS IN ANY WAY RELATING  THERETO OR INVOLVING
     ANY DISPUTE BETWEEN ANY OF THE PARTIES TO THIS  AGREEMENT,  WHETHER ARISING
     IN CONTRACT OR TORT, AT LAW, IN EQUITY OR STATUTORILY, SHALL BE ENFORCED IN
     ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS AND THE LAWS
     OF THE UNITED STATES OF AMERICA,  EXCEPT WITH RESPECT TO SPECIFIC LIENS, OR
     THE  PERFECTION  THEREOF,  EVIDENCED  BY LOAN  DOCUMENTS  COVERING  REAL OR
     PERSONAL  PROPERTY WHICH BY THE LAWS APPLICABLE  THERETO ARE REQUIRED TO BE
     CONSTRUED  UNDER  THE  LAWS  OF  ANOTHER   JURISDICTION.   BORROWER  HEREBY
     IRREVOCABLY  SUBMITS ITSELF TO THE NON-EXCLUSIVE  JURISDICTION OF THE STATE
     AND  FEDERAL  COURTS OF THE STATE OF TEXAS AND  AGREES  AND  CONSENTS  THAT
     SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY LEGAL PROCEEDING  RELATING TO
     THE LOAN DOCUMENTS OR THE  INDEBTEDNESS BY ANY MEANS ALLOWED UNDER TEXAS OR
     FEDERAL LAW. VENUE FOR ANY LEGAL PROCEEDING SHALL BE DALLAS COUNTY,  TEXAS,
     PROVIDED,  THAT  LENDER MAY  CHOOSE  ANY VENUE IN ANY STATE  WHICH IT DEEMS
     APPROPRIATE IN THE EXERCISE OF ITS SOLE DISCRETION.

8.8. Severability.  If any  term or  provision  of any  Loan  Document  shall be
     determined to be illegal or  unenforceable,  all other terms and provisions
     of the Loan  Documents  shall  nevertheless  remain  effective and shall be
     enforced to the fullest extent permitted by applicable law.

8.9. Counterparts.  This  Agreement may be separately  executed in any number of
     counterparts and by different parties hereto in separate counterparts, each
     of which when so executed  shall be deemed to  constitute  one and the same
     Agreement.

8.10. Headings. The headings,  captions, table of contents and arrangements used
     in this  Agreement  or the  other  Loan  Documents  are,  unless  specified
     otherwise,  for convenience only and shall not be deemed to limit,  amplify
     or modify the terms of this Agreement or the other Loan Documents.

                                       20
<PAGE>

8.11. Number and Gender of Words. Whenever the singular number is used, the same
     shall include the plural where  appropriate,  and words of any gender shall
     include each other gender where appropriate.

8.12. Legal Counsel. BORROWER ACKNOWLEDGES THAT IT HAS HAD THE OPPORTUNITY TO BE
     REPRESENTED  BY  INDEPENDENT  LEGAL COUNSEL IN CONNECTION  WITH ALL MATTERS
     CONCERNING  THIS AGREEMENT,  INCLUDING BUT NOT LIMITED TO THE  NEGOTIATION,
     ACCEPTANCE AND EXECUTION OF THE  AGREEMENT;  THAT IT HAS RELIED UPON OR HAD
     THE OPPORTUNITY TO RELY UPON THE ADVICE OF ITS INDEPENDENT LEGAL COUNSEL IN
     AGREEING  TO  THE  TERMS  AND  CONDITIONS  HEREIN  AND  IN  EXECUTING  THIS
     AGREEMENT; THAT IT HAS READ, REVIEWED AND UNDERSTOOD THE LOAN DOCUMENTS AND
     THAT THE OBLIGATIONS  THEREUNDER REPRESENT VALID AND BINDING OBLIGATIONS OF
     BORROWER;  AND  THAT  IT HAS  FREELY  AND  VOLUNTARILY  ENTERED  INTO  THIS
     AGREEMENT AS THE PRODUCT OF ARM'S LENGTH NEGOTIATIONS.

8.13. Entirety;  Written  Loan  Agreement.  THIS  AGREEMENT  AND THE OTHER  LOAN
     DOCUMENTS REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
     CONTRADICTED  BY EVIDENCE OR PRIOR,  CONTEMPORANEOUS,  OR  SUBSEQUENT  ORAL
     AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS  BETWEEN
     THE PARTIES.  THE EXECUTION AND DELIVERY OF THIS  AGREEMENT IS NOT INTENDED
     TO BE  AND IS NOT A  NOVATION  OR  RELEASE  OF  THE  EXISTING  INDEBTEDNESS
     OUTSTANDING  FROM  BORROWER  TO LENDER  NOR A  NOVATION  OR  RELEASE OF THE
     COLLATERAL  SECURING  SUCH  INDEBTEDNESS  OR ANY GUARANTY  SUPPORTING  SUCH
     INDEBTEDNESS.

8.14 Fees.  The fees  described in this  Agreement  represent  compensation  for
     services rendered and to be rendered separate and apart from the lending of
     money or the provision of credit and do not constitute compensation for the
     use,  detention or forbearance of money.  The obligation of Borrower to pay
     each fee described  herein shall be in addition to, and not in lieu of, the
     obligation of Borrower to pay  interest,  other fees  described  herein and
     expenses otherwise described in this Agreement.  Fees shall be payable when
     due in immediately  available funds.  All fees shall (a) be  non-refundable
     when due, (b) to the fullest  extent  permitted  by  applicable  Law,  bear
     interest,  if not paid when due, at the Maximum  Lawful Rate (as defined in
     the Note) and (c) be secured by all of the Collateral.

8.15 Participation.  Lender  may,  from  time  to time  and  without  notice  to
     Borrower,  sell or offer to sell all or part of the Loan  evidenced  by the
     Note, or interests therein, to one or more assignees or participants and is
     hereby  authorized to disseminate and disclose any information  (whether or
     not  confidential or proprietary in nature) Lender now has or may hereafter
     obtain pertaining to Borrower,  any Guarantor,  the Collateral or otherwise
     relating to the Note (including, without limitation, any credit information
     regarding Borrower, any Guarantor, or any of their principals),  to (i) any
     assignee  or  participant  or  any  prospective   assignee  or  prospective
     participant,  (ii) any of Lender's  affiliates,  (iii) any regulatory  body
     having jurisdiction over Lender or the Indebtedness  evidenced by the Note,
     and  (iv) to any  other  parties  as may be  necessary  or  appropriate  in
     Lender's  reasonable  judgment.  Borrower  shall execute,  acknowledge  and
     deliver  any  and  all  instruments   reasonably  requested  by  Lender  in
     connection  therewith and, to the extent  specified in any of the documents
     evidencing  any such  assignment or  participation,  such  assignee(s)  and
     participant(s)  shall have the rights and benefits with respect to the Note
     and the other Loan Documents as such  assignee(s)  and  participant(s)  had
     been Lender hereunder.

8.16. Arbitration.  Lender, Borrower and each Guarantor agree that all disputes,
     claims and controversies between them, whether individual,  joint, or class
     in nature,  arising from this  Agreement or  otherwise,  including  without
     limitation contract and tort disputes,  shall be arbitrated pursuant to the
     Rules of the  American  Arbitration  Association,  upon  request  of either
     party.  No action by Lender to exercise its rights and remedies  under this
     Agreement  or  collect,  realize  upon or dispose of the  Collateral  shall
     constitute a waiver of this arbitration  agreement or be prohibited by this
     arbitration agreement. Specifically, and without limiting the generality of
     the foregoing,  nothing herein prevents or precludes Lender from exercising
     any creditor's rights in any bankruptcy or insolvency proceeding, obtaining
     injunctive  relief or a temporary  restraining  order;  invoking a power of
     sale under any deed of trust or mortgage; obtaining a writ of attachment or
     imposition  of a receiver;  or exercising  any rights  relating to personal
     property,  including taking or disposing of such property which constitutes
     Collateral  with or without  judicial  process in  accordance  herewith  or
     pursuant to Article 9 of the Uniform Commercial Code. Any disputes, claims,
     or controversies concerning the lawfulness or reasonableness of any act, or
     exercise of any right,  concerning the lawfulness or  reasonableness of any

                                       21
<PAGE>

     act, or exercise of any right,  concerning  any  Collateral,  including any
     claim to rescind, reform, or otherwise modify any agreement relating to the
     Collateral,  shall also be arbitrated,  provided however that no arbitrator
     shall  have the right or the power to  enjoin  or  restrain  any act of any
     party, nor shall any arbitrator have the right to award any party punitive,
     exemplary or consequential damages. Judgment upon any award rendered by any
     arbitrator may be entered in any court having jurisdiction. Nothing in this
     agreement  shall  preclude any party from seeking  equitable  relief from a
     court of  competent  jurisdiction.  The  statue of  limitations,  estoppel,
     waiver,  laches,  and similar doctrines which would otherwise be applicable
     in an action  brought by a party  shall be  applicable  in any  arbitration
     proceeding,  and the  commencement  of an arbitration  proceeding  shall be
     deemed  the  commencement  of an action  for these  purposes.  The  Federal
     Arbitration  Act  shall  apply  to the  construction,  interpretation,  and
     enforcement of this arbitration provision.

              REMAINDER OF PAGE LEFT BLANK - SIGNATURE PAGE FOLLOWS

                                       22
<PAGE>

         EXECUTED effective as of the day and year first written above.

                                         BORROWER:
                                         ---------

                                         ENVIROCLEAN MANAGEMENT SERVICES, INC.,
                                         a Texas corporation

                                         By: /s/ Matthew H. Fleeger
                                             ----------------------------------
                                                 Matthew H. Fleeger, President

                                         LENDER:

                                         PARK CITIES BANK

                                         By: /s/ Authorized Bank Officer
                                             ----------------------------------
                                         Name:
                                               --------------------------------
                                         Title:
                                                -------------------------------

                                         GUARANTOR:

                                         /s/ Matthew H. Fleeger
                                         --------------------------------------
                                         MATTHEW H. FLEEGER

                                         /s/ Winship B. Moody, Sr.
                                         --------------------------------------
                                         WINSHIP B. MOODY, SR.

                                       23
<PAGE>

                         LIST OF SCHEDULES AND EXHIBITS

Schedule 4.18              Location of Collateral

Exhibit A                  Request for Advance

Exhibit B                  Borrowing Base Certificate

Exhibit C                  Financial Reporting

                                       24
<PAGE>

                                    EXHIBIT C
                                    ---------

                               FINANCIAL REPORTING

(i)  Annual Financial Statements of Borrower.  As soon as available,  and in any
     event within  ninety (90) days after the end of each Fiscal Year,  complete
     financial statements of Borrower together with all notes thereto,  prepared
     in  accordance  with  sound  accounting   principles  consistent  with  the
     financial  statements  furnished by such reporting party in connection with
     the  application  for the Loan  and  which  fairly  reflect  the  financial
     condition of such reporting party, and certified as true and correct by the
     chief financial officer of such reporting party. These financial statements
     shall  contain  a  balance  sheet  as of the end of such  Fiscal  Year  and
     statements  of earnings,  and of changes in  stockholders'  equity for such
     Fiscal  Year,  each  setting  forth  in  comparative  form,  to the  extent
     possible,  the  corresponding  figures for the preceding  Fiscal Year,  and
     shall be compiled by an independent certified public accountant.

(ii) Annual Financial Statements of Guarantors. As soon as available, and in any
     event,  within ninety (90) days after each calendar year end,  furnished to
     Lender,  complete financial statements of each Guarantor,  currently dated,
     together  with  all  notes  thereto,  prepared  in  accordance  with  sound
     accounting principles consistent with the financial statements furnished by
     such Guarantor in connection  with the  application  for the Loan and which
     fairly reflect the financial condition of Guarantor,  certified as true and
     correct by such Guarantor. Each financial statement shall contain a balance
     sheet  as of such  date  and  statements  of  income,  of cash  flow and of
     contingent  liabilities  and such other  information  as may be  reasonably
     requested by Lender.

(iii) Monthly  Borrowing  Base  Certificate.  In addition to the delivery of the
     Borrowing  Base  Certificate  as  provided  in Section  3.2(f),  as soon as
     available,  and in any event within  thirty (30) days after the end of each
     calendar month,  deliver to Lender a duly executed and completed  Borrowing
     Base Certificate dated as of the last day of the preceding  calendar month.
     If the Borrowing Base Certificate indicates that the Indebtedness under the
     Loan  exceeds the maximum  allowed to be borrowed  pursuant to the terms of
     this  Agreement,  Borrower shall deliver to Lender an amount  sufficient to
     reduce the Indebtedness  under the Loan such that Borrower is in compliance
     with the terms of the  Agreement  at such  time as  Borrower  delivers  the
     Borrowing Base Certificate to Lender.

(iv) Monthly  Statement of  Receivables.  As soon as available  and in any event
     within thirty (30) days after the end of each calendar  month,  a Statement
     of  Receivables  for  Borrower  with an  aging  analysis  and  listing  the
     aggregate  remaining  balance of each such Receivable,  and the name of the
     Account Debtor thereon,  certified as true and correct, and dated as of the
     last day of the calendar month just ended. Borrower warrants and represents
     that each  Receivable  described  in the  Statement  of  Receivables  shall
     represent a bona fide obligation of the Account Debtor.

(v)  Monthly Statement of Payables. As soon as available and in any event within
     thirty  (30) days after the end of each  calendar  month,  a  Statement  of
     Payables for Borrower  with an aging  analysis and listing the  outstanding
     payables of Borrower and the name and address of the payee, and dated as of
     the last day of the  preceding  calendar  quarter and certified as true and
     correct.

(vi) Monthly  Financials.  As soon as available  and in any event within  thirty
     (30) days after the end of each calendar  month,  (i)  internally  prepared
     monthly financial statements of Borrower,  together with all notes thereto,
     prepared in accordance with sound accounting principles consistent with the
     financial   statements   furnished  by  Borrower  in  connection  with  the
     application  for the Loan and which fairly reflect the financial  condition
     of Borrower,  certified as true and correct by the chief financial  officer
     of the reporting party, which financial  statements shall contain a balance
     sheet  as of the end of such  calendar  month,  income  statement  for such
     calendar month, and updated projections for the balance of the Fiscal Year.

                                       25
<PAGE>

(vii) Collateral  Location  Reports.  Upon the request of Lender, a Statement of
     Inventory  by  model  and  quantity  and the  address  where  each  item of
     Inventory is located and showing the cost and the depreciated value of such
     Inventory.

(viii) Tax Returns.  On or before thirty (30) days  following the filing thereof
     (but in no event later than  November 15 of the year  following the year to
     which such return  relates),  a complete and  accurate  copy of the federal
     income tax returns  for  Borrower  and each  Guarantor,  together  with all
     schedules  and  amendments  thereto,  as filed  with the  Internal  Revenue
     Service, certified as true and correct.

(ix) Other Information. On and after the Closing Date, furnish to Lender (i) any
     information  which  Lender  may  from  time  to  time  reasonably   request
     concerning  any covenant,  provision or condition of the Loan  Documents or
     any matter in connection  with the Collateral or Borrower's  businesses and
     operations,  and (ii)  all  evidence  which  Lender  may from  time to time
     reasonably  request as to the accuracy and validity of or  compliance  with
     all representations,  warranties and covenants made by Borrower in the Loan
     Documents,  the satisfaction of all conditions  contained therein,  and all
     other matters pertaining thereto.

                                       26Exhibit 10-2

                                 REVOLVING NOTE

$1,500,000.00                    DALLAS, TEXAS                    March 27, 2007

     FOR VALUE RECEIVED, the undersigned, ENVIROCLEAN MANAGEMENT SERVICES, INC.,
a Texas  corporation  (whether  one or more,  "Maker"),  hereby  unconditionally
promises to pay to the order of PARK CITIES BANK  (together  with its successors
and assigns and any subsequent  holder of this  Promissory  Note,  "Payee"),  as
hereinafter provided, the principal sum of ONE MILLION FIVE HUNDRED THOUSAND AND
N0/100 DOLLARS  ($1,500,000.00),  or so much thereof as may be advanced by Payee
from time to time hereunder to or for the benefit or account of Maker,  together
with  interest  thereon at the rate of interest  hereinafter  provided,  without
right of offset and otherwise in strict accordance with the terms and provisions
hereof.

     1. Interest. Interest shall accrue on the principal balance from day to day
outstanding under this Revolving Note (this "Revolving Note") at a rate equal to
the lesser of: (a) the Maximum Lawful Rate (as  hereinafter  defined);  or (b) a
fluctuating rate of interest  ("Fluctuating  Rate"), equal to one percent (1.0%)
in excess of the "prime rate" as  announced,  published and so designated in the
Money Rates  Section of the Wall Street  Journal from time to time.  Interest on
the indebtedness evidenced by this Revolving Note shall be computed on the basis
of a three hundred sixty (360) day year and shall accrue on the actual number of
days  elapsed  for any  whole  or  partial  month  in  which  interest  is being
calculated.  Maker  hereby  acknowledges  that the  "prime  rate" may not be the
lowest rate offered by Payee to its customers  from time to time. If at any time
the Fluctuating Rate exceeds the Maximum Lawful Rate, any subsequent  reductions
in the  Fluctuating  Rate shall not reduce the rate of interest  hereunder below
the Maximum Lawful Rate until the aggregate amount of accrued interest hereunder
equals the amount  that would have  accrued if the  Fluctuating  Rate had at all
times  remained  in full effect  during the period that it exceeded  the Maximum
Lawful Rate.

     2. Payment.  Commencing on April 1, 2007, and continuing on the first (1st)
of each successive month thereafter,  monthly installments of accrued but unpaid
interest  shall be due and payable.  The entire  outstanding  principal  balance
hereof and all accrued but unpaid  interest  shall be finally due and payable on
April 1,  2008 (the  "Maturity  Date"),  or upon the  earlier  maturity  hereof,
whether by  acceleration  or otherwise.  All payments  under this Revolving Note
made to Payee shall be made at Payee's banking offices in Dallas County,  Texas,
or at such other place as the Payee may from time to time  designate in writing,
in lawful money of the United  States of America  which shall be legal tender in
payment of all debts at the time of payment.  Maker may prepay all or any of the
principal  of this  Revolving  Note at any time and from  time to time  prior to
maturity  without premium or penalty,  and interest shall cease to accrue on any
amounts so prepaid, and any such prepayment of principal shall be applied in the
inverse order of maturity to the last maturing  installments  of principal under
this Revolving Note. Any payment,  whether a regularly scheduled installment,  a
prepayment or otherwise,  shall be applied first to accrued but unpaid interest,
and the  remainder  of such  payment  shall be applied to the  reduction  of the
outstanding principal balance. Maker hereby agrees to accept Payee's calculation
of interest payable hereunder absent manifest mathematical error. If any payment
on this Revolving  Note shall become due on a Saturday,  Sunday or any other day
which is a banking  holiday,  such payment shall be made on the next  succeeding
business day which is not a banking holiday, and such extension of time shall in
each such case be included in computing interest due hereunder.

     3. Loan  Agreement;  Security.  This  Revolving  Note evidences one or more
Advances  made by Lender to Borrower  pursuant to that certain Loan and Security
Agreement  dated of even date herewith by and between,  among others,  Payee and
Maker (as amended,  supplemented  or otherwise  modified in writing from time to
time, the "Loan Agreement"), and has been executed and delivered pursuant to, is
governed by, the terms and provisions of the Loan  Agreement.  Borrower shall be
entitled to Advances hereunder from time to time in accordance with, and subject
to the terms and conditions of, the Loan Agreement.  This Note is secured by the
liens and  security  interests  granted in the Loan  Agreement,  and the Deed of
Trust.  Capitalized terms used herein, unless otherwise defined,  shall have the
meanings given to such terms in the Loan Agreement.

     4. Revolving Note.  Principal  amounts borrowed and repaid hereunder may be
reborrowed in accordance with the Loan Agreement, and accordingly, the gross sum
of all Advances made under this  Revolving  Note may exceed the  Revolving  Loan
Commitment,  provided,  however,  that the outstanding  principal balance hereof
shall at no time exceed the Revolving Loan Commitment. All payments of principal
under this  Revolving  Note shall  reduce the unpaid  balance of  principal  due
hereunder,  but  shall not  extinguish  this  Revolving  Note  until the  entire
principal  balance and all accrued interest hereon has been paid in full and all
obligation  of  Lender  to  advance  funds  under  the Loan  Agreement  has been
terminated.

                                       1

<PAGE>

     5.  Default  and  Remedies.  Upon the  occurrence  of an "Event of Default"
(herein so called),  as such term is defined in the Loan Agreement,  Payee shall
have the immediate  right, at the sole discretion of Payee and without notice or
demand (a) to declare the entire unpaid  balance of this  Revolving Note and all
accrued but unpaid  interest at once  immediately  due and payable (and the same
shall be at once  immediately  due and  payable  and the  same may be  collected
forthwith),  (b) to  foreclose  and  enforce  all liens and  security  interests
securing  payment  hereof,  and (c) to  exercise  any of Payee's  other  rights,
powers,  recourses and remedies  under this  Revolving  Note or any of the other
Loan Documents, or at law or in equity.

     6.  Attorneys'  Fees and  Costs.  If Payee  retains an  attorney-at-law  in
connection with any Event of Default or at maturity or to collect,  enforce,  or
defend  this  Revolving  Note  or any  part  hereof,  or any of the  other  Loan
Documents, in any lawsuit or in any probate, reorganization, bankruptcy or other
proceeding,  or  otherwise,  Maker  agrees  to pay all  costs  and  expenses  of
collection,  including but not limited to, Payee's  attorneys' fees,  whether or
not any legal action shall be instituted.

         7. Late Charge. At the option of Payee, Maker shall pay a "late charge"
in the amount of five percent (5%) of any installment on this Revolving Note
when such installment is not paid within ten (10) days following the date such
installment is due, in order to cover the additional expenses involved in
handling delinquent payments.

     8. Default  Interest Rate. All past due  installments of interest shall, if
permitted by applicable  law, bear interest at the Maximum Lawful Rate, or if no
Maximum Lawful Rate is applicable  hereto,  then at the rate of eighteen percent
(18%) per annum.  During the  existence  of any  default  hereunder,  the entire
unpaid principal balance shall bear interest at the Maximum Lawful Rate.

     9. Usury Savings  Provisions.  It is expressly  stipulated and agreed to be
the  intent  of  Maker  and  Payee  at all  times to  comply  strictly  with the
applicable Texas law governing the maximum rate or amount of interest payable on
the Indebtedness (as hereinafter  defined),  or applicable United States federal
law to the extent that such law permits  Payee to contract  for,  charge,  take,
reserve or  receive a greater  amount of  interest  than  under  Texas law.  For
purposes of this provision, "Indebtedness" shall mean all indebtedness evidenced
by this  Revolving  Note,  and all  amounts  payable in the  performance  of any
covenant  or  obligation  in  any of  the  other  Loan  Documents  or any  other
communication  or  writing  by  or  between  Maker  and  Payee  related  to  the
transaction or  transactions  that are the subject matter of the Loan Documents,
or any  part of such  indebtedness.  If the  applicable  law is ever  judicially
interpreted so as to render usurious any amount contracted for, charged,  taken,
reserved or received in respect of the Indebtedness,  including by reason of the
acceleration of the maturity or the prepayment  thereof,  then it is Maker's and
Payee's  express intent that all amounts charged in excess of the Maximum Lawful
Rate shall be automatically  canceled,  ab initio,  and all amounts in excess of
the Maximum Lawful Rate theretofore  collected by Payee shall be credited on the
principal balance of the Indebtedness (or, if the Indebtedness has been or would
thereby  be paid in  full,  refunded  to  Maker),  and  the  provisions  of this
Revolving Note and the other Loan Documents shall immediately be deemed reformed
and the amounts thereafter collectible hereunder and thereunder reduced, without
the  necessity of the  execution of any new  document,  so as to comply with the
applicable  laws,  but  so as to  permit  the  recovery  of the  fullest  amount
otherwise  called for  hereunder  and  thereunder;  provided,  however,  if this
Revolving  Note has been paid in full before the end of the stated term  hereof,
then Maker and Payee agree that Payee shall,  with reasonable  promptness  after
Payee  discovers or is advised by Maker that  interest was received in an amount
in excess of the Maximum Lawful Rate, either credit such excess interest against
the Indebtedness then owing by Maker to Payee and/or refund such excess interest
to Maker. Maker hereby agrees that as a condition precedent to any claim seeking
usury  penalties  against  Payee,  Maker will provide  written  notice to Payee,
advising  Payee in reasonable  detail of the nature and amount of the violation,
and Payee  shall have sixty (60) days after  receipt of such  notice in which to
correct such usury  violation,  if any, by either refunding such excess interest
to Maker or crediting such excess interest against the  Indebtedness  then owing
by Maker to Payee. All sums contracted for, charged, taken, reserved or received
by Payee for the use, forbearance or detention of the Indebtedness shall, to the
extent permitted by applicable law, be amortized, prorated, allocated or spread,

                                       2

<PAGE>

using the actuarial  method,  throughout  the stated term of this Revolving Note
(including  any and all renewal and extension  periods) until payment in full so
that the rate or amount of  interest  on  account of the  Indebtedness  does not
exceed the Maximum Lawful Rate from time to time in effect and applicable to the
Indebtedness  for so  long  as  debt  is  outstanding.  In no  event  shall  the
provisions  of Chapter 346 of the Texas  Finance Code (which  regulates  certain
revolving  credit loan accounts and revolving  triparty  accounts) apply to this
Revolving Note or any other part of the Indebtedness.  Notwithstanding  anything
to the contrary  contained  herein or in any of the other Loan Documents,  it is
not the intention of Payee to  accelerate  the maturity of any interest that has
not accrued at the time of such  acceleration or to collect unearned interest at
the time of such acceleration.  The terms and provisions of this paragraph shall
control and supersede every other term,  covenant or provision contained herein,
in any of the other  Loan  Documents  or in any  other  document  or  instrument
pertaining to the Indebtedness.

     10.  Maximum  Lawful  Rate;  Ceiling  Election.  As used  herein,  the term
"Maximum  Lawful Rate" shall mean the maximum  lawful rate of interest which may
be contracted for, charged,  taken,  received or reserved by Payee in accordance
with the  applicable  laws of the State of Texas (or  applicable  United  States
federal law to the extent that such law permits Payee to contract  for,  charge,
take,  receive or reserve a greater  amount of  interest  than under Texas law),
taking into  account all fees,  charges and any other value  whatsoever  made in
connection with the  transaction  evidenced by this Revolving Note and the other
Loan Documents.  To the extent that Payee is relying on Chapter 303 of the Texas
Finance Code to determine the Maximum  Lawful Rate payable on the Revolving Note
or any other part of the Indebtedness  (hereinafter defined), Payee will utilize
the weekly  ceiling from time to time in effect as provided in such Chapter 303,
as amended.  To the extent United  States  federal law permits Payee to contract
for,  charge,  take,  receive or reserve a greater amount of interest than under
Texas law,  Payee will rely on United States federal law instead of such Chapter
303 for the purpose of determining the Maximum Lawful Rate. Additionally, to the
extent permitted by applicable law now or hereafter in effect, Payee may, at its
option  and from time to time,  utilize  any other  method of  establishing  the
Maximum  Lawful Rate under such  Chapter 303 or under  other  applicable  law by
giving notice,  if required,  to Maker as provided by such applicable law now or
hereafter in effect.

     11. Waiver.  EXCEPT AS  SPECIFICALLY  PROVIDED IN THE LOAN DOCUMENTS TO THE
CONTRARY,  MAKER AND ANY SURETY,  ENDORSER OR GUARANTOR OF THIS  REVOLVING  NOTE
SEVERALLY  AND  EXPRESSLY  (A) WAIVE AND  RELINQUISH  PRESENTMENT  FOR  PAYMENT,
DEMAND,  NOTICE OF NONPAYMENT  OR  NONPERFORMANCE,  PROTEST,  NOTICE OF PROTEST,
NOTICE OF INTENT TO  ACCELERATE,  NOTICE OF  ACCELERATION,  GRACE,  DILIGENCE IN
COLLECTING THIS REVOLVING NOTE OR ENFORCING ANY SECURITY THEREFOR,  OR ANY OTHER
NOTICES  OR ANY OTHER  ACTION,  AND (B)  CONSENT  TO ALL  RENEWALS,  EXTENSIONS,
REARRANGEMENTS AND MODIFICATIONS WHICH FROM TIME TO TIME MAY BE GRANTED BY PAYEE
WITHOUT  NOTICE AND TO ALL  PARTIAL  PAYMENTS  HEREON,  WHETHER  BEFORE OR AFTER
MATURITY,  WITHOUT  PREJUDICE TO PAYEE.  PAYEE SHALL SIMILARLY HAVE THE RIGHT TO
DEAL IN ANY WAY, AT ANY TIME, WITH ONE OR MORE OF THE FOREGOING  PARTIES WITHOUT
NOTICE TO ANY OTHER PARTY,  AND TO GRANT ANY SUCH PARTY ANY  EXTENSIONS  OF TIME
FOR PAYMENT OF ANY OF SAID  INDEBTEDNESS,  OR TO GRANT ANY OTHER  INDULGENCES OR
FORBEARANCES  WHATSOEVER,  WITHOUT  NOTICE TO ANY OTHER PARTY AND WITHOUT IN ANY
WAY AFFECTING THE PERSONAL LIABILITY OF ANY PARTY HEREUNDER.

     12. Governing Law and Venue.  THIS REVOLVING NOTE IS EXECUTED AND DELIVERED
IN CONNECTION  WITH A LENDING  TRANSACTION  NEGOTIATED AND CONSUMMATED IN DALLAS
COUNTY,  TEXAS,  AND SHALL BE GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE
LAWS OF THE STATE OF TEXAS.  MAKER,  FOR ITSELF AND ITS  SUCCESSORS AND ASSIGNS,
HEREBY IRREVOCABLY (A) SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS IN TEXAS, (B) WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION  THAT IT MAY NOW OR IN THE  FUTURE  HAVE TO THE LAYING OF VENUE OF ANY
LITIGATION  ARISING OUT OF OR IN CONNECTION  WITH THIS  REVOLVING NOTE OR ANY OF
THE OTHER LOAN DOCUMENTS BROUGHT IN THE DISTRICT COURT OF DALLAS COUNTY,  TEXAS,
OR IN THE UNITED  STATES  DISTRICT  COURT FOR THE  NORTHERN  DISTRICT  OF TEXAS,
DALLAS DIVISION, (C) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE
VENUE OF ANY SUCH ACTION OR PROCEEDING  BROUGHT IN SUCH COURT OR THAT SUCH COURT
IS AN INCONVENIENT  FORUM, AND (D) AGREES THAT ANY LEGAL PROCEEDING  AGAINST ANY
PARTY TO ANY OF THE LOAN DOCUMENTS  ARISING OUT OF OR IN CONNECTION  WITH ANY OF
THE LOAN DOCUMENTS MAY BE BROUGHT IN ONE OF THE FOREGOING COURTS.

                                       3

<PAGE>

     13.  Waiver of Jury  Trial.  MAKER,  TO THE  FULLEST  EXTENT  PERMITTED  BY
APPLICABLE LAW, HEREBY KNOWINGLY,  INTENTIONALLY,  IRREVOCABLY,  UNCONDITIONALLY
AND  VOLUNTARILY,  WITH  AND UPON  THE  ADVICE  OF  COMPETENT  COUNSEL,  WAIVES,
RELINQUISHES  AND FOREVER  FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING BASED UPON,  ARISING OUT OF, OR IN ANY WAY RELATING TO THIS REVOLVING
NOTE OR ANY OF THE LOAN DOCUMENTS,  OR ANY CONDUCT,  ACT OR OMISSION OF PAYEE OR
MAKER, OR ANY OF THEIR DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS
OR ATTORNEYS,  OR ANY OTHER PERSONS  AFFILIATED  WITH PAYEE OR MAKER,  OR ANY OF
THEIR DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR
ANY OTHER  PERSONS  AFFILIATED  WITH  PAYEE OR MAKER,  IN EACH OF THE  FOREGOING
CASES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

     14. Notices.  Any notice or demand required hereunder shall be deemed to be
delivered when deposited in the United States mail,  postage prepaid,  certified
mail, return receipt requested, addressed to Maker or Payee, as the case may be,
at the address set out  hereinbelow,  or at such other address as such party may
hereafter deliver in accordance herewith. Any other method of delivery or demand
shall be effective only when actually received by the recipient thereof.  If and
when included  within the term "Maker" or "Payee" there is more than one person,
all shall  jointly  arrange  among  themselves  for their  joint  execution  and
delivery  of a notice  to the other  specifying  some  person  at some  specific
address for the receipt of all notices,  demands,  payments or other  documents.
All persons included within the terms "Maker" or "Payee," respectively, shall be
bound by notices,  demands,  payments and documents given in accordance with the
provisions  of this  paragraph to the same extent as if each had  received  such
notice, demand, payment or document.

     15.  Successors  and Assigns.  This  Revolving  Note and all the covenants,
promises and agreements  contained  herein shall be binding upon and shall inure
to the benefit of Maker and Payee, and their respective successors and assigns.

     16.  Time is of the  Essence.  Time is of the essence  with  respect to all
provisions of this Revolving Note and the other Loan Documents.

     17. Joint and Several  Liability.  Should this  Revolving Note be signed or
endorsed by more than one person and/or entity,  all of the  obligations  herein
contained  shall be considered  the joint and several  obligations of each maker
and endorser hereof.

     18. Termination. This Revolving Note may not be terminated orally, but only
by a discharge in writing signed by Payee at the time such discharge is sought.

              REMAINDER OF PAGE LEFT BLANK - SIGNATURE PAGE FOLLOWS

                                       4

<PAGE>

     EXECUTED effective as of the day and year first written above.

                                          MAKER:
                                          ------

                                          ENVIROCLEAN MANAGEMENT SERVICES, INC.,
                                          a Texas corporation

                                          By: /s/ Matthew H. Fleeger
                                          --------------------------------------
                                                  Matthew H. Fleeger, President

                              ADDRESSES FOR NOTICES
                              ---------------------

PAYEE:                                     MAKER:

PARK CITIES BANK                           ENVIROCLEAN MANAGEMENT SERVICES, INC.
5307 E. Mockingbird Lane, Suite 200        12750 Merit Drive, Suite 770
Dallas, Texas 75206                        Dallas, Texas 75251
Attn: Mike Emerson                         Attn: Matthew H. Fleeger

                                       5

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