10000002170

UNITED STATES BANKRUPTCY COURT
WESTERN DISTRICT OF TEXAS

SAN ANTONIO DIVISION
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In re: Chapter 11
DELTA PRODUCE, L.P.

1
, Case No. 12-50073-LMC
Debtors Jointly Administered

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MOTION FOR RELIEF FROM AUTOMATIC STAY
THIS PLEADING REQUESTS RELIEF THAT MAY BE ADVERSE
TO YOUR INTERESTS. IF NO TIMELY RESPONSE IS FILED
WITHIN FOURTEEN (14) DAYS FROM THE DATE OF SERVICE,
THE RELIEF REQUESTED HEREIN MAY BE GRANTED
WITHOUT A HEARING BEING HELD. A TIMELY FILED
RESPONSE IS NECESSARY FOR A HEARING TO BE HELD.
TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE:
INTERNATIONAL BANK OF COMMERCE, (IBC), files its Motion for Relief from
Automatic Stay (the IBC Motion) against Delta Produce, L.P., Superior Tomato-Avocado,
Ltd., Atled, Ltd., and Staci Properties, Ltd. (collectively, the Debtors), and in support thereof
would show the Court as follows:
I. INTRODUCTION
1.1 The Bankruptcy Court has jurisdiction over this proceeding pursuant to 28 U.S.C.
1471, and 11 U.S.C. 362, 157, and 1334 and other applicable sections of the Bankruptcy
Code and Amendments.
1.2 IBC is, and has at all times herein mentioned, a federally insured bank duly
authorized to transact business in the state of Texas and may be served through counsel of record
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Debtors are the following entities: Delta Produce, L.P. Case No. 12-50073-LMC-11, Superior
Tomato-Avocado, Ltd. Case No. 12-50074-LMC-11, Atled, Ltd. Case No. 12-50075-LMC-
11 and Staci Properties, Ltd. Case No. 12-50110-LMC
12-50073-a998 Doc#357 Filed 10/17/12 Entered 10/17/12 16:18:16 Main Document Pg 1
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herein.
1.3 IBC is informed and believes, and based thereon, alleges that Debtors are and
have been at all times herein mentioned been a Texas corporation, authorized to operate in
Texas, whose address, shown on its voluntary petition, is 2001 S. Laredo Street, San Antonio,
Texas 78207.
1.4 On January 3, 2012 (the Petition Date), the Debtors (with the exception of
Staci Properties, Ltd. which filed its Chapter 11 case on January 9, 2012) filed voluntary
petitions for relief under Chapter 11 of title 11 of the United States Code, 11 U.S.C. 101-1532
(as amended, the Bankruptcy Code).
1.5 Pursuant to the provisions of 11 U.S.C. 362(a), the filing of said petition
operated as an automatic stay against IBCs rights to proceed against Debtors and/or to enforce
its rights under applicable loan documents, including the right to foreclose. Upon IBCs
information and belief, Debtors and/or the estate remain in possession of property securing
claims owed to IBC.
II. FACTS
2.1 On or about July 17, 1998, Delta Produce Marketing, Inc. executed a Loan
Agreement payable to the order of International Bank of Commerce in the original principal
amount of $2,000,000.00 (the 1998 Delta Loan Agreement). The 1998 Delta Loan Agreement
is attached hereto and incorporated herein as Exhibit 1.
2.2 On or about April 1, 2007, Delta Produce, LP executed a Promissory Note,
(Account No. ******9455) payable to the order of International Bank of Commerce in the
original principal amount of $2,000,000.00. Balance due as of January 4, 2012 in the amount of
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$1,856,701.00 (the 2007 Delta Promissory Note). The 2007 Delta Promissory Note is attached
hereto and incorporated herein as Exhibit 2.
2.3 On or about June 4, 2010, Delta Produce, LP executed a Promissory Note,
(Account No. ******1270) payable to the order of International Bank of Commerce in the
original principal amount of $600,000.00. Balance due as of January 4, 2012 in the amount of
$587,000.00 (the 2010 Delta Promissory Note). The 2010 Delta Promissory Note is attached
2.4 On or about March 24, 2006, Delta Produce, LP executed a Security Agreement
(the 2006 Delta Security Agreement). The 2006 Delta Security Agreement is attached hereto
and incorporated herein as Exhibit 4.
2.5 On or about February, 2008, Delta Produce, LP executed a Security Agreement
(the 2008 Delta Security Agreement). The 2008 Delta Security Agreement is attached hereto
and incorporated herein as Exhibit 5.
2.6 On or about June 4, 2010, Delta Produce, LP executed a Security Agreement (the
2010 Delta Security Agreement). The 2010 Delta Security Agreement is attached hereto and
incorporated herein as Exhibit 6.
2.7 On or about April 23, 2007, Delta Produce, LP executed a Real Estate Lien Note
(Account No. ******3788), payable to the order of International Bank of Commerce in the
$1,224,374.00 (the 2007 Delta Note). The 2007 Delta Note is attached hereto and
2.8 On or about March 15, 2010, Delta Produce, LP executed an Extension and/or
Modification Agreement Residential Real Estate Lien Note Indebtedness (Account No.
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******3788), payable to the order of International Bank of Commerce with a principal balance
of $1,443,366.75 (the 2010 Delta Extension). The 2010 Delta Extension is attached hereto and
2.9 On or about April 15, 2011, Delta Produce, LP executed an Extension and/or
Modification Agreement Commercial Indebtedness (Account No. ******3788), payable to the
order of International Bank of Commerce with a principal balance of $1,374,201.49 (the 2011
Delta Extension). The 2011 Delta Extension is attached hereto and incorporated herein as
Exhibit 9.
2.10 On or about April 6, 2005, Staci Properties, Ltd. executed a Deed of Trust,
Assignment of Rents, Security Agreement and Financing Statement (the 2005 Staci Deed of
Trust). The 2005 Staci Deed of Trust is attached hereto and incorporated herein as Exhibit
10.
2.11 On or about April 6, 2007, Staci Properties, Ltd. executed an Assignment of
Leases and Rents regarding Real Estate Lien Note executed by Delta Produce, LP in the original
principal sum of $1,500,000.00 and Real Estate Lien Note executed by Delta Produce, LP in the
original principal sum of $1,000,000.00 (the Staci Assignment). The Staci Assignment is
attached hereto and incorporated herein as Exhibit 11.
2.12 On or about March 2, 2005, Staci Properties, Ltd. d/b/a Superior Tomato-
Avocado, Ltd. executed a Promissory Note, (Account No. ******1400) payable to the order of
International Bank of Commerce in the original principal amount of $2,000,000.00. Balance due
as of January 4, 2012 in the amount of $347,307.00 (the 2005 Staci Promissory Note). The
2005 Staci Promissory Note is attached hereto and incorporated herein as Exhibit 12.
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2.13 On or about April 15, 2011, Staci Produce, Ltd. executed an Extension and/or
order of International Bank of Commerce with a principal balance of $17,289.52 (the 2011
Staci Extension). The 2011 Staci Extension is attached hereto and incorporated herein as
Exhibit 13.
2.14 On or about March 2, 2005, Staci Produce, Ltd. executed a Security Agreement
(the March, 2005 Staci Security Agreement). The 2005 Staci Security Agreement is attached
2.15 On or about December 9, 2005, Staci Produce, Ltd. executed a Security
Agreement (the December, 2005 Staci Security Agreement). The December 2005 Staci
Security Agreement is attached hereto and incorporated herein as Exhibit 15.
2.16 On or about March 2, 2005, Staci Properties, Ltd. executed a Real Estate Lien
Note (Account No. ******1397), payable to the order of International Bank of Commerce in the
$1,497,099.00 (the 2005 Staci Note). The 2005 Staci Note is attached hereto and incorporated
herein as Exhibit 16.
2.17 On or about March 2, 2005, Staci Produce, Ltd., Staci Properties, Ltd., Delta
Produce, LP and Atled, Ltd., executed a Loan Agreement (Account No. ******1400 Staci
Produce, in the original principal amount of $2,000,000.00), (Account No. ******1397 Staci
Properties, in the original principal amount of $2,400,000.00), (Account No. ******4770
Atled, in the original principal amount of $2,800,000.00), and (Account No. ******9970 Delta
Produce, in the original principal amount of $750,000.00), (the Loan Agreement). The Loan
Agreement is attached hereto and incorporated herein as Exhibit 17.
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2.18 On or about March 2, 2005, Staci Properties, Ltd. executed a Deed of Trust,
Assignment of Rents, Security Agreement and Financing Statement (the March, 2005 Staci
Deed of Trust). The March, 2005 Staci Deed of Trust is attached hereto and incorporated
2.19 On or about December 9, 2005, Atled executed a Real Estate Lien Note (Account
No. ******3709), payable to the order of International Bank of Commerce in the original
principal amount of $1,300,000.00. Balance due as of January 4, 2012 in the amount of
$943,134.00 (the 2005 Atled Note). The 2005 Atled Note is attached hereto and incorporated
2.20 On or about April 15, 2011, Atled, Ltd. executed an Extension and/or
order of International Bank of Commerce with a principal balance of $1,006,549.71 (the 2011
Atled Extension). The 2011 Atled Extension is attached hereto and incorporated herein as
Exhibit 20.
2.21 On or about December 9, 2005, Atled, Ltd. executed a Deed of Trust, Assignment
of Rents, Security Agreement and Financing Statement (the 2005 Atled Deed of Trust). The
2005 Atled Deed of Trust is attached hereto and incorporated herein as Exhibit 21.
2.22 On or about December 9, 2005, Atled, Ltd. executed a Loan Agreement in the
original principal amount of $1,300,000.00 (the 2005 Atled Loan Agreement). The 2005
Atled Loan Agreement is attached hereto and incorporated herein as Exhibit 22.
2.23 In April, 2007, Superior Tomato-Avocado, Ltd. executed a Security Agreement
(the 2007 Superior Security Agreement). The 2007 Superior Security Agreement is attached
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2.24 IBC is the current owner and holder of the Delta Notes, the Superior Notes, the
Staci Notes and the Atled Notes. IBC duly performed each and every act and thing required
under the terms of all the Notes, Security Agreements and Loan Agreements.
2.25 Debtors are in default under the terms of the Notes, the remaining balances owed
as of January 4, 2012 are $6,455,615.00. In addition IBC has incurred costs, fees and expenses
including attorneys fees which sums are chargeable to Debtor and part of the outstanding
debt recoverable by IBC. Attached hereto and incorporated herein as Exhibit 24, is a true and
correct copy of IBC Account Report evidencing the outstanding debt as of the petition date.
2.26 The value of the Property securing the IBC indebtedness is less than the amount
of the outstanding debt owed to IBC and or other liens and encumbrances. Debtor has filed an
application seeking authority to sale one portion of IBC collateral consisting of approximately
7.326 acres of real property and improvements located at Lot 17, Block 3, New City Block A36,
Gillis Hood, Unit 2, an addition to the City of San Antonio, Bexar County, Texas for the gross
sales price of Three Million Eight Hundred Thousand and No/100 Dollars ($3,800,000.00). The
remaining IBC collateral has a value subsequently less than the IBC debt even if the entire
amount of net sales proceeds from the sold collateral is applied to the IBC debt.
2.27 The IBC collateral, consisting primarily of real estate, equipment, inventory and
accounts receivable is in part subject to claims against Delta and Superior asserted under the
Perishable Agricultural and Commodities Act, 7 U.S.C. 499a, et seq. (PACA) including
statutory trust claims and interests under 7 U.S.C. 499e (PACA Trust Claims). The PACA
Trust claims attached to PACA Trust Assets principally consisting of perishable commodities,
accounts receivable and/or proceeds derived therefrom. The Court has authorized Debtors to
retain PACA Trust Counsel who pursuant to court-order is processing PACA Trust Claims and
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is collecting PACA Trust Assets. To the extent that Debtors assets constitute PACA Trust
Assets, which are pledged to IBC under the terms of IBC prepetition lien documents, a conflict
results, potentially impairing IBCs lien and security interests in that collateral subject to PACA
Trust Claims. IBC asserts that PACA Trust claims diminish or deteriorate IBCs security
interest in such collateral. IBC understands that the PACA Trust claims against Delta/Superior
assets is in excess of One Million Dollars ($1,000,000.00).
2.28 Some of IBCs collateral is not collateral which is directly affected by PACA
Trust Claims. That property include real and personal property owned by Atled and/or Staci, and
any other collateral that is not subject to PACA Trust claims generally apply to commodities,
inventory, accounts receivable or moneys resulting from the sale of commodities or collection of
receivables.
III. ARGUMENTS AND AUTHORITIES
3.1 Continuation of the Automatic Stay, pursuant to 11 U.S.C. 362(a) will result in
harm to IBC and will deprive IBC of the protection to which IBC is entitled under 11 U.S.C.
362 and 363, for the following reasons, among others:
a. The debt to IBC is in excess of $6,455,615.00;
b. The value of the Property is less than the outstanding debt owed to IBC
and other lien holders including unpaid liens for taxes;
c. Debtor has not paid prior year taxes; and has no funds in escrow for
current year tax obligations.
d. There is no equity in the Property and the Property is not necessary for an
effective reorganization; and
e. Debtor does not intend to use the IBC collateral or as a means to
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effectively reorganize and has no ability to recognize utilizing IBC
collateral.
3.2 IBC therefore requests the Court to terminate the automatic stay for the following
reasons:
a. For cause, including lack of adequate protection of IBCs interest in the
Property, pursuant to 11 U.S.C. 362(d)(1); or alternatively
b. Pursuant to 11 U.S.C. 362(d)(2) as Debtor does not have equity in the
Property; and
c. The Property is not necessary for an effective reorganization, since Debtor
has no realistic prospects for an effective reorganization.
PRAYER
WHEREFORE, IBC requests that this Court:
A. Terminate the Automatic Stay to allow IBC to exercise its rights under the
loan documents and the laws of the state of Texas including foreclosure of
the Property; or
B. Provide such adequate protection to IBC as it may deem appropriate and
just; and
C. Grant such other and further relief at law or in equity to which IBC may
be justly entitled.
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Respectfully submitted,
MARTIN & DROUGHT, P.C.
2500 Bank of America Plaza
300 Convent Street
San Antonio, Texas 78205-3789
(210) 227-7591 / (210) 227-7924
By: /s/ Michael G. Colvard
Michael G. Colvard
State Bar No. 04629200
ATTORNEYS FOR INTERNATIONAL
BANK OF COMMERCE
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the above and foregoing instrument was
forwarded via United States Mail, First Class, postage prepaid, to the parties listed on the
attached service list on October 17, 2012.
/s/Michael G. Colvard
Michael G. Colvard
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LOAN AGREEMENT
This Loan Agreement is made by and among INTERNATIONAL BANK OF
col\1l\1ERCE (the "Lender"),DELTA PRODUC:E MARKETING, .INC., A TEXAS'
.CORPORATION'(''Bortowe(', whether one or more) and SCOTT JENSEN, AN INDIVIDUAL
("Guarantor", wheiher one or more), with respect \O that certain loan in the original principal
amount of TWO MILLION AND l'f0/100 DOLLARS ($2,000,000.00), to Borrower from
Lender..
. . .
I
. DEFINIT;IONS .
For purposes of this Loan Agreement, :ihe f!Jilowing terms shall have. the .. respective meanings
assigned to them. . : .
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1.01 Advance. The term "Advance" shall mean a disbursement by Lender or' any of the
proceeds of the Loan. . .
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1.02 Affiliate. The term "Affiliate" shall mean any Person tliat, directly or .indirectly,
controls, or js by or under common control with, another Person. For the pUrposes of
this definition, "control" (including the terms "controlled by" and "under common control wJth"),
as used with respect to any Person,. means the power to direct or cause the direction of. the
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management and. policies of such Person, directly or indirectly, whether through the ownership
of voting securities or by contract or otherwise.. ..
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1. 03 Annual Financial Statements. The term "Annual Financial Statement" shall mesn the
annual Certified financi31 statemepts of a Person, as of the end of such Person's fiscal year (being
the Fiscal Year unless otherwise-designated by such Person for federai income tax purposes)',
including all notes tliereto; which statements shall include a balance sheet as of the end of such
fiScal year, and an income statement, all setting forth in comparative form where applicable the
corresponding figures. frqm the previous '.fiscal year, all prepared in conformity with GAAP
consistently applied, e;xcept that Annual Fimincial Statements of indiVidualsdo not liave to be in .
conformity with GAAP so long as they are .in a form otherwise acceptable to Lender.
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1.04 Borrowing Base. The "Borrowing Base" means the sum (i) eighty percent (80%)
of all Accounts Receiyable _and (ii) fifty percent (50%} of all inventory of Borrower:.
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1:05 Business Day. The term ;'Iiuslriess shall a day when the main office of Lender
OP.en for business in San Antonio, Texas.'
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1.06 Capital Expenditures, The term "Capital Bxpen1jtures" shall inesn all expenditures deemed
capital expenditures as evidenced by Borroy;er.' s financial statements for any given period during
the term of the Loan.
EXHIBIT
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1.07 CashEJmY, The ter.in "Cash Flow". shali mean the sum of (i) all net income of Borrower
as determined in accordance with GAAP, after accrual of applicable taxes to Governmental
t/
-Authorities, plus (ii) dep'reciation, depletion, obsolescence and amortization 1>f property in
accordance. with GAAP, less (iii) capital ex_penditures, less (iv) all djvidends to
!he shareholders of Borrower, . . , . . . . . . .
1.08: .. a$h Flow Coverage Ratio, '"Cash Ftow. Ratio"
respect to any period, the .rathof: (a) the sum (i) the Net Income of the Borrower for period, .
(ii) interest expense deducted iii determinihg such Net Income, (iii) depreciation and deferred taxes .
', /deducted in such Net Income; and (iv) other noncash items deducted from.revenue . . . .
V in d,etermining such Net Income, to (b) the sum of {i) Current Maturities of Long Term Debt .
during such period, (ii)' total interest expense of Borrower (including capitaiized for such .
: . period, (iii) dividends paid to Borrower's shareholders during such period, and (iv) advances to
Borrower's shareholders or employees during such. period and capital expenditures during such
period. . '
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.1.09 Cash Flow Recapture Amount. The term "Cash Flow Recapture Amount" shall mean"
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. seventy-five percent (75%) of (a) sum of (i): aliNet Income of Borrower for such period, (ii).
depreciation and deferred taxei: deducted in determining such Net Income 'and (iii) interest expense .
deducted ll:t determining such Net Income less (b) the sum of (i) Current Maturities of Long Term
. Debt made during such period .and (ii) total interest expense of Bbrrower (including capitaiiied
. . . interest) foouch period. . . . . . . . . .
l:io certified. The term "Certified" shail mean centified as true. and correct by the Person or
a duly authorized officer or representative of the Person providing the Financial Statements or
. other financial information to Lender, '
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.1.11 .Chapter One .. Theterm "ChapterDne" shall mean Chapter One of the Texas Credit Code,
as in effect on the date. the (locwnent using such term was executed.
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1.12 ... Collateral. The term "Collateral" shall mean all property of or
intangible, real, personai or mixed,' whether now owned or hereafter acquired, and nowor'
. hereafuir subject to or intended to be subject to the Security. Instrumenis.
. . .
1,13 Consolidated .. The term shall, with respect to any period; the
consolidation of financial information of Borrower and Affiliate(s). . : . . .
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1. H, .Corporation. The term "Corporation" shall mean corporations, partnerships, joint
ventures, joint s\ock associations, business trusts and other business entities;
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1.15 Current Mij.!urities of Long. Term Debt.- The "Current Maturities of LongTerm
Debt" shall mean all principal sums owed during the next twelve {1'2) month peri9d on Borrower.'s
long term debt (including capiial.lease obligations) as reflected in Borrower's Certified Annual
Financial Statements or !UOnthly interim Financial State1p.ents, consistently applied, and in every

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event in accordance with GAAP.
1.16 Current Assets; The term "Current Assets" shall mean to the extent permitted by. and as
determined in accordance with GAAP, shall include all (1) cash on hand or in transitor ori deposit
in any bank or trust company which has not suspended busine-Ss; (2) accounts receivable; and (3)
such:other asse!s as; in accordance with GAAP, would be included in "current assets."; all afier
deduction of adequate reserves in each case where a reserve is pmper under GAAP; provided,
however, that, notwithstanding the foregoing, in computing Cntrent A8sets there shall be excluded
(a) all Investments; (b) all franchises, licenses, permits, patents, patent .applications, cdpytights;
ttademarks, trade names, good will, experimental or organizational expense and. other like.
intangibleS; (c) any assets which are pfedged or encumqered aS se<:urity for or for the purpose of
paying any obligation (other than the Notes) which is not included in Current LiabilititJI!; and (d) .
. all loans, advances and other receivables.from offjcers, stockholders; directors or employees. .
1'.'17 current 'tiahifities. The ierm Liabilities" all (a).
maturing_on demand or withili one year after the da\e as of which suc)t determination is.made; (b)
final maturities and prepayments of Indebtedness and sinking fund paymentS required to be made
ill; of any Indebtedness within one year after said date; (c) taxes payable or adcrued as
estilnated. and deferred income taxes due for Hie fiscal year in which such determination is made
from differences in reporting depreciation and .other non-cash 'charges for tax pu\PbseS and
for .corpo.rate financial p!Jrposes_; (d) accrued Fabilities; (e) 'payments required to be -made with
respect to capitalized :leases within one year of said date, and (f) all other items which in
accordance with GAAP would be 'included as Current Liabilities. . . . : . . . .
. . .
. 1.18 ... The term "Debt" shall mean Borrower's .total liabilities, determined in accordance
withGAAP. . . . . .' . . . . . . . .
).19 Debtor Relie( The tenn "Debtor Relief Laws": shalf mean any applicable
liquidation, conservatorship, bankruptcy, moratorium, insolvencY.; reorganization, or similar laws
affecting the rights or of creditors aS'in effect from ti.rne to time.
1.20 Eligible Accmmts The term "Eligible. Accr;mnts Receivable" shall mean .
accounts receivable owed to Borrower which are no more than sixty (60).days delinquent. ..........-
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1.21 Event of Default. The term of D.;:fa\Jit" shall mean:
. (a) . A by Borro,;,er tq .make any or on the Note .
when due, whether matured by acceleration or otherwise;
cb) A failure by Borrower or Guarantor to.comply with' any or' the other terms
. conditions specified herein.or in any otlter Security Instrument; .
(c) The incorrectness of any representation or warranty made by Borrower or .
Guarantor to Lender in any of the Security Instruments;
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(d) The o.f a receiver, trustee, custodian, or llqilidator, or
other similar official for Borrower or Guarantor, any of the Property, or any other property of
Borrower or Guararit
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.(e) . Borrower or Guarantor shall generally not pay their debts :jB they. become due or
shall admit hi writing their inability to pay their debts, or shall make a general assignment for the
benefit o(creditors; .
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. . (f). Borrower. or Guarantor shallcommenc'e any case, or other action
seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of
Borrower or Guarantor of their debts'lJ.nder any Debtor Relief Laws; : : : . . . .
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. (g) . Any, case, or against Borrower .
' seeking to. haye an order relief entered against Borrower or Guarantor, as the e,ase m;t.y be, as
debtor., or seeking a reorganization, arrangement, adjustment, dissolution or
composition. of Borrower. or. of their debts under Debtor Rellef Laws; or seeking an
of a receiver, trustee, custod,ian or other' similar official for or Guarantor
for all or any of the'Collateral, or any other property of Borrower or Guar{lntor, and such case,
or other action results. in the entry of an order for :elief. .
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. : (h) 'Borrower qr Guarantor shall have concealed, 'removed; or permitted to be concealed
orremoved, any part of its property, with intent to' hinder, delay or defraud its creditors or 11ny
.of them, or made m: suffered a transfer of any of its property Which inay be fraudulent under any
bankruptcy, fraudulent conveyanee or similar law; or shail have made any transfer of its property
to qc for the .benefit of a at a time when other creditors similarly situated have not been. .
or shall have suffered or permitted, while insolvent, any creditor to obtain. a lien upon any
of its property through legal proceedings which is not vacated w'ithin sixty ( 60) days fr0\11 the date
: thereof; .. . . . :"., . . . .: .. .. . :
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(i) An occurrence 'of condition hl the No.te, this Loan
Agreement or any other instrument that wquld result in. an acceleration of the' Note
9onstitute an event of default thereunder;
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. ciY. . Tile 1\quidation, or death pf Borrower or Guarantor;
.. (k) " If Borrower or Guarantor is a partnership, adefau\t by any general partner under
the. Partnership Agreement; or .
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{I) . An occurrence. of any event or condition de-<!cribed in the loan documents
evidencing any other indebtedness of Borrower or Guarantor to Lender that would constitute an
event of default thereunder.
1.22 Statements. term "Financial' Statements" shall \Ilean sitch sheets,
profit and loss statements, reconciliations of capital and surplus, change-<! in financial. condition,
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.schedules of sources and applications of funds, and other financial information. of Borrower and
of Guarantor, as shall be required by Lender; frofn time to time, which statements of theBorrower
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shall be prepared .in conformity wit!\ GAAP for the stated peri9d. . . . ..
L2J Year: The ''Fiscal Year" means.
Optober 1 of each calendar year thro.ngh and including September 30.of.the next
caleqdar year. . .
1:24 .:Generally Ptinciples. The term "GAAP" shall mean,. a
partkular Person, such ai:countiilg practice as, .conforms at the time to generally accepted
.. aeepunting principles; consistently applied. GAAP means those principles and' practices (a) which
. . recognized as such by the Financial Accounting Standards Board, (b) which are applied for
all periods after the date hereof. in a manner consistent with the manner in which such principles
and practices were applied to recent financial statements of the relevant Person fumished .
. to Lender, and (c) which are. consistently for all periods after the date .hereof so as to
reflect propeily the financial condition, and results of operations and changes in, financial position, .
of.such Person ... Jf a change in a.nY accounting principle or practice i.s implemented by the
.. .. Financial Accounting Standards Board, then all and financial statements required hereunder
maybeprepared in accordance with sucli change only wrjtten notice of such chang!' is given
to Lender: . .: . . .. . .. . . . . . .. . . .
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1.25: dovernmental Authority. The term "Governmental Authority" shall mean the United
Stiltes;,the State,. the County, the City, or any otherpolitical subdivision in which the Collateral.
is located, and any other political subdivision, agency, or, instrumentality exercising jurisdiqtion
over. Borrower, Affiliate, or the Collateral. ...
.1.26 QQvemmental Requirements: The term. "G6Verhmenflil Requirements"shall mean all laws,
ordinances, rules, and regulations of a Governinental Authority applicable to Borrower, Affiliate;
or the Pwperty:. .. .' ... . . : . .
' . . . . . .. .
'1.27. Guarantor. The term "Gmrrailtor" shall. mean all parties named Guarantor in the first
paragraph of the Loan Agreement.
l.28 Guaranty: The .term "Gmirarity" each Guaranty, in' Proper Form, to be
executed by Guarantor'in favor of Lender. . .
:
.1 . .'29 '[iJe . ,; shall mean and inclurie: (1) all items which in
. accordancewith GAAP would be included on. tlie liability side of a balance on the date as
.. -_of which Indebtedness fs be determined (excluding, capital stock, surplus,.surplus reserves and .
defecreq credits), (2) all guaranties, endorsements and other contingent obliga(ions in respect of,. . .
or any obligations to pl!rchase or otherwise. acquire, indebtedness of others,. and (3) all.
. indebtedness secured by ati.y Lien existing on any interest in owned subject to such Lien
whether or not the indebtedne;;s secured shall have been assumed bY, Borrower; provided
that such term shall not mean or include any indebtediiess in respect of which monies sufficient
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. . to pay and discharge the same in full' (either on the expressed date of maturity thereof or on such
earlier date as such indebtedness. may .b.e duly called. for redemption and. payment) shalt be
... f.?):.
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, deppsited with a depository; agency or trustee acceptable to Lender in trust for the payment
. lhereof and. monies are not ref!ected as Current Assets of Borrower on its Financial.
.. Statements: , ..
. ..
. . .. . .. ,
r-:30 Insurance Policies. The.terin. "InsurancePolicles"shail
' . :
. . . . . :
(a) .': All ri$k Ptoper Form, as determined oy Lender; in the of at
.least e'quar to the Loan amount or in such a.dditional amounts 'as Lender may require, providing . .
... ali risk co.verage on the prem.ises'in which Borrower. conducts its business; and, if reasonably
'requested by Lender, to include the perils o(flood, earthquake, business interruption (in the .
amount of $250,ooo.oo oqnore) and other risks; . .. : . .. . . . . .. . . . .
. . . . . . . . .
' (b).' Liability:instirance in an.amount of notless than.$J:;OOO,OOO.OO and otherwise in
Form andprovidi!J.g its coverage is related t
0
its operation of the Collateral.
...
. . Policies shall be issued on fornis and by companies sa tis to Lender
and shall have a provisi6n'giving Lender thirty (30) days prior written.notlce of cancellation or
... material chapge of the coverage and otherwise be. in Proper Forin. . . . . ; . . ....
. : 1.:31 The named the' first othis .
Loan Agreement.". . .
. 1.32 Lien .. rhe term shailmean ariy mortgage, pledge, security
. : interest,: collateral as.sigriment or other lien or restriction of any kind
1
whether based on common .
:Jaw, constitutional provision, statute or contract; and shall' include reservations, exceptions,
encroachments, easements, rights of way, co:venants; conditions, restrictions, leases and other title
exceptions. : .. :
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. 1.33' Lmm .. Loan b; on date
. herewith, in an llJ110unt'not io exceed the principal spm set forth in the first paragraph of t\liS Loan:
Agreement. . ... : . . . .... ..
. . . . . ' . .
, ..
1.34 .. Net Income. The "Net Income" shall have the meaning determined in accordance
. with GAAP. . ,
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1.35 Net WOrth. The ."Net Worth" shall mean total mlnus total:.
. liabilities, each to be jn .accordance with GAAP. .
' . . : ' ' . . . . '
. : : .. 1.36 J:':!Qte. The term shall mean the Note frpm Borrower Lender dated of even
which evidences the Loan. . .
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1.37 :w.Qn. The term -''Person" shall mean ahy individual, corporation, trust, unincOrporated
- . .: : organization, Governmental Authority or any form of entity, : .. . . . : .
. .
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1.38 Proper Form.
. :to Lender.
The (erni "Proper Form" shall meanil1 a form and subsu;nce satisfactory
: . '. . . . . . . . . . . . . . . . . . . . . .
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1.39 :The shall th.is. ioa:n
. the Note, the Guaranty, .ithe security 'Agreempnts, and such other instttiments: or documents .
.. evidencing, secudng, orpertaining to .the Loan as. shall, from time'.to timebe executed and .. ,
delivered by Borrower,. Guarantor, or. any other party to'.l,ender' pursum1t to this Loan Agreemel).t .
or : :
. . . .
...
. ' .
. .. .' . .. ARTICLE II .
. .'. .AGREEMENTS oF LENDER
. . .
The Loan. .
. : . (a) . Lilan. to the terms aild set herein. prior to closiiig; Lender : :
hereby.agrees to lend TwO MILLION AND NO /100-DOLLARS ($2,000,000.00) (the "Loan"): .
and .Borrower hereby agrees to porrciw.TWO MILLION. 'AND NC)/100 DOLLARS.
' ($2,000,000.00)., . . . . ' : . . . . .. ' ...
(b) Thrlns; The not(f si)all bear interest at the rate of the New York Prime
_:Rate; floating, as defined in the Note, plus one percent and otherwise.: ..
as :setforth jn the Note,
. .(c) .. Loan Fee, One-Half. of the $10,000.00.payabie upon
.. closing 'of the Loan. Legal fees paid by Borrower. .' : . .
' ' ' ' ' I '
. 2.02 Conditions to the Loim. The obligations of Lender to make the Loan:are subject to
of the following .. co!lditions:
..
(a) The Borrower and Guarantor .shall have delivered to Lender such certificates and
other docunients. relatitig .. to the transaction.' hereiii contemplated. and such other information :
. relating to the.Borrower or Guarantor, as the case may b,e, as the Lender may require. ..
. : . : .. the wh!cJi. be lrr
Proper Form and' duly executed.
. .
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(c) Lende; sball'have received the Note; which be in Proper Fo;m 'and been duly
executed by -Borrower. . . .
. (d) .Borrower shall have ail Lender;s 'in?Ju<!ing_ 'its legal ..
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(e) ... Except where expressly authorized to the contrary, Lender shall have received
. satiSfactory evidence to the Lender that the Security Instruments create first,. prior and enforceable
against Collateral described in ;the-Security Instruments: . .. . .
. (f) .... Lender .. each ;f wh;ch
.. : .. .Proper Forin and duly executed. . .. .. : .. : ..
' .
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(g) Lender have received a]i executed copy' of. each' consent, i(any, of any' : . .
. . Author.icy. or other person which,, iti the opinion of the Lender, is. refluir.ed it}
' . : . < . connection with the tril!JSactions contemplated hereby. .'. . . . . . . ,. ..
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. . (n): . Ai of. all to here;n
contemplated shall be satisfactory to Lender. : .. . :: . . ..
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(i) . : . .Such other items as Lender may require.
. . . . . . . . AR'l'ICLE ni: ' . . '
. .(lNDWARRANTlES GUARANTOR:.,
, .. aild Guarantor hereby represent-and thi. following to be.trJe, the 9ase ...
. m'ay be as of the date 'of.the execution liereof: ' . . . . .: . . ' . ' .
. . . . . . . . .
. . . : . . . . . . . . . ' . ,.. . . . . : . . . . . :. . . .
3.01. Th Fjnantial Statements: The Finaricial Statements are correat, and complete in all
material respects as of the'da:tes specified therein and fully and accurately present the financiai .
. condition of Borrower if required, of Guarantor .as of. the dates specified. :No material ..
adverse change has occurred in the financial condition of Botrower or Guarantor since the dates
of the Financial Statements. .. ' .. . : . . .' . .
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3.04 Title to the Borrower hc;>lds.fulllegal and equitable title. to the Collateral,
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3:.05 Purpos!:l. B.oriower has requested the ext\)nslon of credit to be represented by the
Loan .for business, commercial; investment or. other similar puipo$e and not primarily for
.-personal,' family, household or agricultural use. .'
. . . . . . . . . '
.. ;.
.. .. : .3.06 DisclosY.rfl .. 'To the knowledge and Guarantor, there is no fact that BotTower.
. 'has not disql9Seci to 4nder il). writing that \!Ould materially adversely .4ffect the'propertj, business .. .
. . or financial condition ofBorrower or the Collateral. . . .. . .
. , ..
? '
:3:07 .. to .Lender .. The representati9n& and warranties contained'in the. Security
Instruments. are made by Borrower as an inducement to Lender to make the Loail. and Borrower
understap.ds that Lender . is relying, 01i such representations and wananties . and that such'
'representations and warranties shall survive any bankruptcy' proceedings involvjng Borrower,
Guarantor, orthe.coUateral: . . . ..
3, 08 Organization and (A),2plicable tq COrporation Borr.mm:)..
. .
...
' ..
<(a)'- is a existing under Jaws of the
incorporatiOJi and in good standing under the laws of the state of.i\S incorporati9n and tire
of the State of Texas; and
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(b)' has all prerequisite to lts iaV.:fu!Iy in
:..::: state where the Collateral is situated; and
(' l.
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. (c) has corPorate power and governmynia!' 'of.aufuority,
. licenses; qualifications, and 'documentation to own, lease, and operate its properties and
:to carry on its business as now being, and as proposed to be, conducted.
,. . . . . .
' .
3.09 alliJ Pbwe.r (A'p_plicable to or Joint Vent1;re Borrower:). Borrower
':.:is duly organized and val.idly under applicable 'laws, and all Security Instruments..
. and other !ban dqcuments .are w.ithin Borrowel'.'s powers, have been duly authorized by 'a!l
requisite action and are not in contravention, of Jaw or the power of Borrower's partnership or joii1t
. venture agreement, as. the case may be. '.. . .. ' .
. . . . ; .
3.10 . of .. shall preserve an\1 .keep full force effect
. Borrower's existence, franchises, and 'trade names. .
3.11. Compliance with Laws. Botwwer, Collateral, and use thereof by shall
comply with aU laws, rules, ordinances, regulations, l)ovenants, conditions, restrictions, orders
and d(!Crees of any governmental authority or court applicable to Borrower or the collateral and
its and Borrower shall pay all fees or 'charges of any kind in corutection ..
.
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3 .. 12 Financial Information .. :
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A .. . shall to Lender: on hundred twenty (120). after the .. . .
end of each calendar. year the income'and in Proper florm,
.,.
. . . , itemizing the income and. expenses of the Within one hundred twenty .
. :: . .. .(120) days of the filing ofBorroY{er's tax return, Borrower shall deliver to Lender
. . . its annual financial statement; together: with a copy of its tax return. ':Borrower ' ...
. . 'agrees that'it shall fil.e its tai(return:in a ti!Jlely' manner the
. ,, fi!ingof such tax retnrn shall be subject to extenslonsthat are filed. : .
)3 .. . t6
. .. . Proper. Form which may be unaudited, such statements to be o;lelivered to Lender
:within fifteen (15) days after the end of each. month during the term of this Note .
. ... .. of its tax
. . . . returns to' Linder; which ihforttlatimi shalt' also be funiished to Lender within one
.. . liundred (120). days'ofthe filing ofBprrower's tax return. ]n.the that
. is in .default:, .reserves the right to froni' time ,to time request
additional financial information of..either Borrower or Guarantor .. All financial
stateJ.I!entsof'the Borrower shail beprepareli iri.accordance with GAAI?, certified.-
. ' to be .true and cort:ect. by theperson delivering them 11nd otJierwise be in Proper
Form. '
. . . . . .
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3.13 Hold: Harmless. Borrower shall. defertd, at Borrower's own.cost and expense; anq hold
Lender hiu:mlessfi:om any. proceeding or claim affecting the Collateral or the Security Instr1.1.menis
imd othedoan documents: All costs and expenses incurred by Lender: in protecting its intereits
ineluding.ali'court costs and reasonable attorneys' fees; shall be borne by Borrower;
. .\ . . . . .. ' .. . . . .: .. :. ' . . . . . : . . . . . . . .
. 3.14 . Further Assurances, upon the request of Lender, shall execute, acknowledge, .
.deliyer,. and instruments and do. such further. actsas.'may
desirable or proper to carry out the pui:poses of the Security Instruments and other loan documents
. and subject the liens 'and security infere_sts thereby and property intended by ter;ms
thereof to be 'therehy,. including specifically; but without limitation; any renewals, .
additions, substitutions; re]'Jlacements, improvements, or appurtenances to the Collateral:
. ARTICLE IV ..
.
.. :. Loan by scmmNSEN and need. by a Guaranty in
. Form:
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. . . . . . ARTICLE V .
. . COYENANTS AND AGREEMENTS OF BORROWER
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. . covenantS and agrees .a's follqws:
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' s.oi Compliance with Governmental Rew1irements. Borrower shall, comply .with all.
.. Governmental and deliver to Lender thereof. Borrower assiirnes full . .
. . respons!bility for the compliance of .the <;:ollateral .with l!ll Governmental Requirements, '.' ' .
. notwithstanding any approvals by Lender... ... ,.. . . . . . . . . : . .'
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.: .... '.
5 .'02 . Notices h). Authoricy; and Cast;alty Loss: Etc. shall timely :
comply ,'vith aqd promptly to Lender true and complete copies of any official notice or ..
:.clair!l by any Governmental AuthoritY pertaining to the Collateral. Borrower shall promptly notify
Leni:ler of any fire. or other casualty or allY notice of. fukjng or eminent domain action or
proceeding affecting'the.Collateral. . .
' . . . ' . ; . . .
5.03 . Oilier Liens Borrower._slian to. exist; permit any ..
lien upon the Collateral, except th9,Se liens securing the provided, however, that the ..
Borrower' may create or suffer to exist liens for taxes, but only to the extent that payment thereof ..
:: .. shali not at' the time tie due and further provided, however, that the Lender consents'to the lien
on all or apoition of the Co)hiteral (which mayexist as ofthedatehereof or in the future) granted
., .. , , . . to Bernari:! Jensen, said iien \6 be made expressly subordinate 'to the liens created by the Security
..... '.:'! .. :.InstrumentS. _- . . . .. . _. . .' ' ...
: . ' . . '
.. S .04 . Costs anq B.orrower shall when .due all.cqsts .and expenses. ked b; this
Loari Agreement, including, Without limitation, . ..
. . .. .. all to .tl;e ..... '
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(b) 'an 'fees for tiiing or recording the Instruments;
. . . . ' . . . . .
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(c) . feeS and lawfully .arid. agents of Borrower.
: . : in connection witl,J the Loan, or the Collateral; and . . :
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' (d). all fees' and exp.enses.of counsel of Lender.
. ' . . .. . . . . . .
:5.05 Additional Docu.mentS. arid and deliver to Lender, from
time to time as requested by Lender; such oiher documents as Lender rnay deem to be necessary
to provide the, righjs and remedies to Lender granted or provided for by the Security Instruments;.
provided, however;such additiona1.doc)lmentssha1Lnot increase or create new or remedies
.. or otherwise expand the rights and reme<(ies of Lender under the origfmil documents. . .
' ; .
5.06 Inspection of:B<ioks.and Records: Borrower Lender, at jlllreasonable times,
to examine and copy the books and records of Borrower pertafning to tlie Loan., in particular
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related to the ' receivabies and payabjes of Borrower .
. . .
. . 5. 07 .. of Attimis"; Lender. may (but shalt J!Ot be obliga;ed .to) coinmeiice, appear in, or
. .. . . : defend any action or proceeding purporting to affect the Loan; the Collatetal, or the respective . . .
. . rights imd obligations of Lender and Borrower pi.rrsuailt to this LOil.ll. Agreement. Lender may. (b!it .
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... :shall not be obligated to) payalinecessary.expenses, including reasonable. attorney''s fees and'.
.. . eiqlenses incurred in'co1meetion with SIJch proceedings or actions, which Borrower agrees' to .repay
. . :.. .. to upon demand: ::.' . . . ... : .. ... . . .. ..
. . . .. ' . . . . . . ' .
. ' . .-,-,:- : .5.0B. .. pa; or to.be aii
; . :an&exrensesilicuqed.in coooection\v!ththe'CI?llateral:. Notwiilistanding anything to the contrary. .
. ' contained in this Loan Agreement; Borrower . . . . .. : .
. ' . .. . . . . . .. . . . .. '
.. . . . . (a). :. levied liy. .. Authority;
. . . ' . . . '
:. .. and . :
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: , (b) .. .' may .. the . enforcement of or .. co.mpiiance with any . Goyernmental "
and such conteSt on the part of Borrower shit!! not be a default.hereunder and shall
no{ release Lender from its tomake any Advance hereunder; provided, however, that
. .. during the pendency of any such contest, Borrower furnish to Lender aJ! indemnity:bond with
.. . ... .corporate surety satisfactor.y 'to te'nder or other security acceptable to them ih an amount equal
to the beitig plUS a reasonable additional SUm tO COV.e!' pOSSible CoSts
1
interest,
and. penalties, and provided further that Borrower pay amount adjudged by a court of .
competent jurisdiction 1;0 lie due, with all costs' iritei:est, and penalties' thereon, bef\)re such
judgment beCome.':! a lien on the Collateral. .. . : : .
,. s:o9.: .. or
. the Collateral, without the prior writt()n,consent of , .
... . . - . - . .. '. : ' . . '. . . . . . . . . ' : . . . . .
; . . . . as .any piut of.: the .. or or
/
.lO.,.;easirFiowCmemge.'. . .. . . . . . : .: . . . .
ndebtedness ofBonower to I..ender:or any Affiliate shall remain Borrower shall
. . a ratio of Cash Flow Coverage Ratio for the immediately preceding twelve (12) month period of
.. not Jess than i. 75 (tl)e "Minimum Casli Flow Coverage Ratio", which ratio shall be calc.ulated on
an.annual basis,. but shallbe tested'on a rolling quarterly basis as described below.. .
. ... . .... . . . . : .. . . . . . . . . . . , ...
. . . .. . . (bY . The. Cas!{ FI6w coverage .Ratio sl;al.l be determined witi1in thirty (30) days after . .' .
, . , the liist day of each September, D.ecember, Marchand'June dtidng the.'term'of the Loan with
. /. respect to t,he immediately preceding twelve (12) month period (each period to as .a .".Cash
V FJow Covenige Ratio Period"). The Borrower shall provide a certificate, along with annecessary
back-up information supporting such certificate (eacl,l such' certificate referred toas a "Cash Flow .
Ratio Coverage in form and substance satisfactory to Lender which Ca8h Flow Ratio
Coverage Certificate shall c.ertify as to. the Cash Flow Coverage. Ratio during the dash Flow.
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Coverage Ratio Period. The Borrower covenants and that the Cash Flow Ratio
may not be le.ss than the Minimum Cash Flow Coverage Ratio for any Cash Flow Coverage Ratio
Period during the term of the Loan.
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.. : . (c) :Notwithstanding anything set forth to contrary, the flrst Cash Flow .
Coverage Ratio shall be determined for the nine (9) month period commencing on April 1, 1998
through including Deeember 31, 1998 (the "Initial Period").. The Cash .Flow Ratio Coverage .
certificate' for the Initial Period shall be provided. to Lender on or before January 30, 1999. The
Borrower covenarits and agrees that the Cash Flow Coverage Ratio for the Initial Period may not .
. be less. thim the Min\rnum Cash FloW, Coverage Ratio .. . :
' , ' '. ' ; r ' ' ', ''
. . . . . . (d) to the determination made .for .the Initial Period, 'the Cash Flow ...
.Coverage Ratio shall.be calculated on the basis of twelve moJ1th periods as set forth ill Section. .
..
5.10 (b) above. : . . . . . ' .. . : . .
. ' ' . . , .
.... 5.11 ObligatiQ.JlS.... Borrower that .in to. the
: scheduled installments of principal and interest which are due and payable as described in the
. Note, Borrower shall make annual'principll,! reductions in an amount equal to the 'c:ash.Flow
Recapture Amount. Each annual payment of Cash Flow Recapture Amount, if applicable,' shalf
be pa\d to Lender on or b.efore, the date which is ninety.(90) days after the end of each Fiscai .Year
d_uring the.term of the Note, Each
. paym(lnt. of Cash . Flow Recapture Amount shall be ;:tccompanied by financial statements
qescribing, <imong other.things, the Cash Flow Recapn1re Amount. . ..: . .
. . . .
5.12 . . Borrowing Base. Borrower agrees. that the outstandil).g balance of the Loan at
:any time during the term of the Loan may not. exceed the Borrowjng Base. B.orrower shall provide
.to Lender, within fifteen (15). days after each calendar month during the term of the Loan, a V
. Certificate, with all necessary back-up. infonil!ltion supporting such certificate (each.such.
certificate referred to as a "Borrowing Certificate") in form arid substance satisfactory to the .
Lender which shall indicate that the the!l outstanding. balance of.the Loan (the "Existing.Balance")
is'less "thari or equal to tlie Borrowing Base .. If,.at at)Y"time during: the term of the Loan, the
Existing Baiance exCeeds .. the Borrowing )3ase, thejlthe Borrower agrees' to immediately reduce
the Existing Balance so that the Existing -Balance. .is either to or less 'than the Borrowing
Base.. . . . . .. : .. .. . .
5.13' r.oCk!iox. Borrower shall ensure that; during the 'term of the Loan, al) receivables owed ..
to Bortower.shall paii:l by all customers to a lockboJt'(''L<ickbox") established by Borrower . /
mainlliined with the Lender. Prior to an Event of Default (as defined herein), and subject to the v
terms.ofthis.Loan Agreement and the other Security Instruments, Borrower shall be entitled to
utilize the funds deposited iri the Lockbox; provided, however, that upon. an Event of. Default (as.
defined herein), and subject to any notice and opportunity to curegranted to the Borrower; the
Lender shall be to apply funds then maintained iti.the Lockbox to -reduce the tlien
outstandi.ng delinquency or otherwise to c.ure such Event of Default or, hi the event of an
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. of the Note, to reduce all or a part of the outstanding principal. balance of the Note.
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. 5.14 ''compensation .. :During.the term of the Loan, Guarantor shall not receive an annual
compensation (including salary, bonus and dividends) in excess of $300,000.00 (the "M,aximum
Compensation'')' without .the Lt;)nder's. prior written .consent, 'which .consent shall. not' be
withheld to the extent the Borrower's Net Income in any Fiscal Year, in the
.. , ....
. . Lender's reasonable discretion, justifies compensation in excess of the Maximum Compensation. .
. ' .:. . . . . . . . . . . . . . . . . . . . . . . .. . .. . : . .
. : . :
; . .' . . .'ARTICLE VI
ruG-urs. A:&D :REM.I!:Dnis oF tENDER.
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.. 6.01 . Rights of litider. Upon the:occurrence o( a monetary Event of Default, Lender shall have ...
the right, in addition to any other right or remedy of Lender, l:iut not tJle obligation, to exercise
any remedy. set forth in any of the Se9in:ity Instruments or any right authorized by the Uniform ..
Commercial Code Of the State of. Texas .. Borrower hereby appoints Lender as the attomey-in"fact
, I
of Bm:rower; ytith full PQwer of Sl)jJstitution,. in tli!'J _of Borrower' if Lender elects to do
so, upon the occurrence oftln 'Eveni ofDefatilt; to .. .. . .
. . (a) . the of Borrower on any' checf\s or proceeds of the
,... .. ;. Insurance Policies, or'.other checks .or instruments payable to Borrower with respect. to the
: Collateral for the sole purpose of of the Notes;.
. . . . . . . . . ... : .. ' . . ' .. . . . ' '
... (b) .. or. defend im; <ir proi:e'eding incident to the .. and :
.. cci . : the t6 from the
give 'teceipts and releases therefore, and after deducting all expynses of collection, including
. . reasonable attorneys' fees, apply the net proceeds thereof to any Indebtedness. as Lender may
elect; .. .. :. . .
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. hereby is .and '.
.Lender sball have noobligation to undertake any of the foregoing actions, and i(l..il)der should
do 'so, .it shall'have no liability toBQrrower for the sufficiency: or adequacy of any such:actions
.:.
: taken by Linder .... : '
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. 6.02 Acceleration .. occurrence of im of its ...
. declare the Loan immediately due and payable without nolice .of' any kin_d.
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6. 03 .. ,Funds. of Lender. Any funds of Lender used to cure any default hereunder shall be secured
by the' Security InStruments an.d shall bear interest at the rate specified in .the. Note or to .applicable
after default then;under. .. .
6. 04 No . Waiver or Exluinstioii. waiver by Lender of any of its or
hereunder, in the other Security Instruments, or otherwise, shall be considered a waiver of any
other or subsequent right or remedy Lender,. qo delay or omission in the exercise .. or
enforCement by Lender of any rights or remedy of. Lender; and, nb exercise or enforcement of any.
such righW. or remedies shall ever l:ie held to exhaust any right' or remedy of Lenger,
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6.05 .Rights and of Sureties. Borrower waives any' right or reniedY. which
,. may have or be able to assert pursuant to Chapter 34 of the Business and Commerce Code of the
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State of Texas pertaining .to the rights an_d remedies of sureties.
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ARTICLEVTI
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. . . GENERAL '{ERMS AND CONDITIONS
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.. _7.'01 Alhiotices,' demands, requests, and other coinmunications'req\}ir..ed or permittesi'
.. hereunder shall be in \vriting and shalll)e. to have been whim presented personally
or deposited iQ a-regularly maintained receptacle .for the United States Postal Service,
. prepaid, registered or certified; return receipt requested addressed to Borrower or Guarantor or.
. as the case may be as follows: . . .
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(a) . If io Borrower to:
Delta Produce Marketing, Inc ..
. . Attn: Steven Lefever, CPA
2001 So. Laredo .
San Antonio, Texas 78207
'(b) . If to I ender. to: . ...
. . International Bank of Commerce
Attn;' Mr. Todd. Rasco, Assistant Vi<;e President
.. 130 E. Travis
San Antonio, Texas 78205 . .
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(c) . If to Guarantor to:
Scott
2001 So. Laredo
. San Antonio,' Texas.7820i-
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7.02. Entire Agreement and Modifications. The 'security Instruments .constiWte the entire
understanding and agreement between the undersigned wiUi respect to.'the transaction 'arising 'in
connection with the Loan and supersede8.all prior written or oral understandings and' agreem'ency :
. between thto undersigned in connectio:n therewith. provision of this Loan Agreement or
other Security Instrume.nts may be modified, waived, or tel'minated except by instrument in
:writing executed .by tlie party against whom a modification, waiv.er, or termination is sought to :
):>e enforced.
7.03 No .. of any defaul; on part of or any
or breach 9f any of the provisions of this Loan Agreement or of any other illStrument executed .
in qonnection with'the Loan s)lall be considered a waiver of any other or subsequent default or
.'. breach, and no delay or omission in exercising subsequent .default or breach, and no delay or ..
omission ii1 exercis'ing or enforcing the rights and powers herein granted. shalf be constmed as a
waiver of such rights and powers,.and likewise no exercise pr enforcement of any rights or powers
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hereunder shall be held to exhaust such' rights and powers;' and every such' right and power may
be from.thne to time. Accepta.nce by Lender of partial payments shall not constitute a
waiver. of the default by make full . : . . : ..
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7.04. If any Of this is heid illegal, or :
unenforceable under'present;or futute laws effective while this Loan Agreement is in effect, the'.
legality, validitY, and enforceability of the remaining provisions of Loan Agreement shall riot ,
.. be affected-thereby and in lieu of each sucli illegal, invalid,. or unenfor-ceable provision there.shall
. :be added automatically as a part of this Loan Agreement a provision that is legal, valid and'
enforceable and as similar in terms to such illegal, invalid, or. unenforceable provisions as inay.:
be possib)e. If any 'of. the Indebtedness sliall be unsecured; the u!)secured portion of the
Indebtedness. shall be completely paid :prior tci the.payment of the secured portion of such
rndebtedhess:, and all payments made on accouiit of the Indebtedness shall be considered to have
been paid on and applied first to the compleie payment of the unsecured portion of .the
. .Indebtedness. . : . . . . .
. . ' . . :
,'l.05.. or 'l:he ahd oiher loan :
only be modified or terminated. by a written instrument or instruinents executed by the pai:ty.
. . . . agairist .which enforcement 'of the. modification or termination is asserted.. Any alleged
. . modification or tennination that is not so. documented shall not effective 'as to 'any'party.. .
, ; , , , , , , , , , , , : , r , , . , ,' , , : , , , , , , ,
;7.06 No Nothing contained in the Security .Instruments or 'other loan documents
. . js intt<ndidto create any partnership; joint. venture or associaiion between Borrower. arid Lender, .
: . or in any way make l.llnder a CO:principal with Borrower with reference to the Collateral, 'and any
... inferences tO the contrary are hereby expressly negated. . . . . . . . .
. . ' . ' . ' . . .
7.07 . Election of Remedies,: Lender :shall ali the rightS and remedies granted in the
Security Instruments and available at law. or in equity, and these same rightsand remydies shalf
be cumulative and may be pursued sepJirately ;. successively, or concurrently 'against Borrower,
Guarantor, or any property covered under the .Security. lnstrumentS at the sole discretion of
Lender. nie exercise' or failure to exercise' any of the same. shali not. constitute a waiver or release
thereqf or of any other.right or remedy, and the same shall be non-exclusive.
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7 .Q8 Form. and ... All policies; and. other 'items .
required under this Loan Agreement to be exeyuted and/or delivered to Lender shall be. iii form
. and substance satisfactory to Lender. :. .. . . .
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7.09 Limitation Iritetest. AU between and Lender,. whetht<r nq'w
existing or arising and whether written or oral, are hereby limited so that in no
contingency, whether by reason of demand or acceleration of the maturity of the Note or
otherwise, shilli the interest paid, or agree'd to be paid to Lender exceed the maximum permissible
under applicable' .Jaw. If from any circumstailces whatsoever, il).terest would otherwise be payable
to tender at a rate in excess of that permitted under applicable law' then, the interest payable to
.the. Lender shl!ll be. reduced to the maximum amount permitted under applicable law, and if from \:,,' ;
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any circumstance Lender shall ever receive anythingof value deemed interest by.applicable law
which would exceed interest at tlie highest lawful rate," an aniount-equal to anyexcessive interest
. . shaJl be applied to the reduction. of the ptihcipal amount owing under the Note and not the
pay.ment of interest, or if such excessive interes"t exceeds the unpaid balance of principal of the
Note, such excess shall. be refunded to the Borrower. A!Unterest paid or agreed to be'paid to
. Lender.shal\, to the extent permitted by applicable"!aw, be amortized, prorated, allocated, and .
. . spread throughout the full period until payment in full of the principal of tlie Loan (including the .
. . period of any renewal or extension thereof)" so that interest thereon for such. full period shall not.: .
. 'exceed 'the !llaxlmum amount permitted by applicable.law, .This paragraph shall control all
:. agreements between. the Borrower and ttie Lender.
. . . . . : . . ' .. ' . :' . .
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: 7.10 NO P;irty Beneficiary. 'This is for the sole benefit of Lender, .. ..
- Borrower and Guarantor and is not for the benefit o'f any third party, except for any successor or
. assign cif Lel).der. . . : .:
. . . . .
. . 7.11 :Number heiein, number piural.
.. and the singular, and the use of. any gender shall be applicable to aU genders. The duties,
: covenants, obligations;' and. warranties. of Borrower ill this Loan Agreement shall.be joint ant!
l.leveral obligations of Borrower, and of eacli. Borrower 'if more than one. . ....
. ' ..
. 7.12 Captions. The in this Loan irre.
convenience only and. do not in any. way affect, Ii.mit; runplizy' or.modizy the terms !\lld. proyisions. . ..
hereof. .
. . .
.. 7.13 . Law:. Titis Loan Agreement ruid shall be
ant! construed m accordance with the laws of the State of Texas and the laws of the United States
to tr;msactiorts withil) such State. : ' ..
. . . . . .
: .... ' .. . . .
7.14 In the of .
of this Loah Agreement and those of any other Security Instrumeqt, the terms and conditions of
this Loan Agreement shall control, yXCept that nothing herein shall be construed. to limit br
preclude any of the Le!Jder' s rights or. contained in the . .
..
7.15 NOTICilTO.LENDER IJPON BREACH. BORROWER AND GUARANTOR AGREE .
TO GIVE LENDER WRITTEN NOTICE OF f,.NY ACTION OR INACTION BY LENDER OR
ANY AGENT OR ATTORNEY OF LENDER iN CONNECTiON WITH TI;IiS AGREl3MENT :
OR THE LOAN THAT MAY BE ACTIONABLE AGAINST LENDER OR ANY AGENT OR . :
ATTORNEY.OF LENDER OF A DEFENSE.TO PAYMENT. OF THE LOAN FOR ANY .
REASON, INCLUDING, BUT' NOT LIMITED. TO, COMMISSiON .OF A TORT' OR
. VIOLATION OF ANY CONTRACTUAL DUTY OR DUTY IMPLIED' BY. LAW.
'BORROWER AND GUARANTOR AGREE THAT UNLESS SUCH NOTICE IS [)ULY GIVEN
'A$ PROMPTLY .AS (ANb IN ANY EVENT WITHIN NINID'Y (90) CALENDAR
DAYS OR IF A LbNGER PERIOD IS REQUIRED BYLAW IN ORDER FOR THIS WAIVER .
TO Bil EFFECTIVE SUCH W)NGER PERIOD) AFTER BORROWER OR GUARANTOR HAS .
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. KNOWLEDGE oR WITH THE EXERCISE dF REASONABLE DILIGENCESHOULD HAVE
.. HAD KNOWLEDGBOF 'ANY SUCH ACTION OR INACTION, BORROWER AND
. .. GUARANTOR SHALL NOT A$SERT, AND BORROWER AND GUARANTOR SHALL BE
DEEMED TO HA VB W AIVE[J; ANY .CLAIM OR DEFENSE ARISING THEREFROM.
. . ' . . . . .
''
7.16 Multiple Counterpart Originals. Tbis may be executed in a number of identical
counterparts which,, taken together, shall constitute collectively one (1) agreement; but in making
.,
.. proof of this Agreement, it shall not be necessary to produce or account for more than one such
com\terpart.. .
: . . . ..
in No .. If the amount loari $50,000.d0
. in value, theri Texas law requires that you .be notified of. the following: WRITTEN LOAN
AGREEMENT REPRESENT THE FINAL AGREEMENT. BETWEEN THE PARTIES. AND
:' MAY NOT BE CONTRADICTED' BY l3VIDBNCE OF PRIOR, CONTEMPORANEOlJS,-DR
.. SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE"ARE NO UNWRITTEN
... .. OJ0L A,GREEMENTS BETWEEN THE PARTUiS. . . .
' . . ' . : . . . :
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7.18 S1iccessors and This is. binding oh the parties hereto and their
respective heirs, .successors ;tnd assigns; however, neither Borrower nor Guarantor may assign ..
their rights' hereunder without the prior written consent of Lender, which Lender may withhold
.: in ifl! absolute discretion and \here are no third party bemificiaries to this agreement.
. . . . . . .
: IN WITNESS WHEREOF, the Borrower or any Guararitot and Lender have.cai.Jsed this
"Agreementto be.dUly executed by their" respective officers .thereunto duly authorized as of the
. . ' '7 (lay:.?f . _::S u t'/ : .. , 1998,. . : .' . . . . . . : ." .". . . .
. . . .
BORROWER: LENDER:.
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INc .
By: - ..
Name. SC JENSEN
Titie: l>Sm.!NT .
:' . .. .::COMM!3RCE :.
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By: . . . . .
TODD RASCO
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. DELTA PRODUCE MARKETING, L:P
BORROWING BASE CERTIFICATE
MONTf:l ENDED 2001
ACCOUNTS RECEIVABLE
LESS AMOUNT OVER 59 DAYS
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$3,729:921
-$56,824
TOTAL ELIGIBLE ACCOUNTS RECEIVABLE $3,673,097
ADVANCE RATE 80%
AVAILABLE ACCOUNTS RECEIVABLE $2,938,478
JOTAL INVENTORY $774,905 .
ADVANCE RATE-
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50%
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AVAILABLE INVENTORY
. "
. Ill. TOTAL BORROWING BASE
. '
. IV . PRINCIPAL BAlANCE ON TERM NOTE .. $895.168 ..
IN WITNESS THEREOF, the undersigned has executed this dobufl'\ent below on behalf .of Delta
Produce Marketing, inc,. anc;l certifies that the foregoing is true and correct. Please attach month
end financialstatements with this Borrowin(J Base Certificate. .
DATE: .. 01/22/2001 BY:
NAME: Melinda Day-Harper. CF0
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" . : . .AcoountN<i .
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L.P., a Taxas lim':l.tecl.part;ne1:stilp.
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u,doo .. ooo.lill : .. liEBRUARY . iooit.
:or whloR hf!retiy

and .seYqraily, .
hprelnafter,
, Whether one or mo.f,) pay to order of Fnternat:i.Q'nal Bank of Commerc'a .

heril:lnaftar, ), at l.3Q .E:,..Xt:aYis .... Sa'Jl Bexar. . County Texas th!) st{m of
'IWCJ MILLION. AND:JI0/100. DOLLARS ' . . . , . . ' ' . .
5qllars <H.ooo,ooo,oo:: .. : . ),In !al'{fyl pt:lha ot.Amarlpa, .wit"
\CCryas on prlnolpaf balalipe from dota:of of suoh prlnolpal-untll paid,
The hi b$ '. perte'111 a!UIUtll: or
..
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. XX :: : NEk YoRI<.
: PRIME 'R,ATE. ' ..
hOWovof, rate thmof. ttl!:qy) ta bo plid on \11&\lllp;tld .
prlz;dp5l b.o JHS : tho iatiJ
aUow<bYI)l.Pi!oab.Ulaw, ftllutstralo'on thlsNotoW:Ut:io . 6 25%
.
. a co MURcH tho lfnhl\ili
.E;llllOUDCi tro?l time u-lupr!mo.rato. . . . . . .
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XX
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fo' P.a'(llleilt.of thiS N.ote, and, to tl>a extent a[lowed P!i whlph may, at imy time be
:tWin'S by Borr{)wer, or any of hereby grar-ts to lien' on the following.
tJollaterar . . . . . . . . . .
:t\t"UCHED HE$6 AND ltiCOIUWl{AtED tiER&Ut. ; .
. . .
Borrowa.r to :tO the tq Lend err:
for hazard&, In amounts as .lander d[re6ti., if fal!s io furnish Lender \VIth pioof of
coveraQa, shall haye itw autl)or)ty't? .'Yhloh
provide protection only for Lenger) and 'add the for s4oh lrtsurance, with lnWast at -the loan
to the of this No'te, . . . . '
The .lnterQat Is calou,iete4 a 360dey faotor applied _qn year; o'r In event ;hal iha .
a leap year, on the unpal<l principal to the date of eaoh lns)allmont Ptoyldod, hoy;avert.that-ln the event the Interest
rata reaohe the .alloiYe<l I>Y applloablalevi, _$alli:mexlmum legal rate a half P,e. on full
year days beslaqr on.--366/366 days that ttie yepr a leap year, Tha.(ntar<!st charged and
herein f9r will n9t exceed the by tayt. . .
l ' : . . .' . . ' :
To the extent allowed unpald'amounte will bear on a full oalandar year 365/366 days
Of on 366/36-i! Uuys In tho everit that the.yaa.r . leap pt the highS$! legal rate 6f lnterest,allowed _by
Taxao Law, unless a higher .Inter! ln.whloh oase, Sprro\:'ISf agrees' to pay thdra(a allowed by
Law. If law doos not sat a niaxlnmmrata ollnter<!S> for matvrog unpaid amounta, then Borrower
th'at the maxlmt.lm rate for suoh amounttt shall eighteen p-erCflnt {18%1 Jlar annum.
the ajio.wed. thP paymehl .ihl .. Note, mPy (!) ..
the .Interest on tha principal portion of P.nY PaYment amtiunt that' Ia .not racelyad * payment dup :dote tQ the
maximum rate'allowad i>Y compoted.on rf!iill year from .the until pald,oc"(ll), should
anv.paymelit not ba made Within tan 11Q) 19 P.ay. a ?00 time "late cherga" per
late p
0
ymant pqyal to five percent -(6%1. df tpe amoyntof .tne paat due pr!polpal end of p_ayrnnt. with a
-minimum PHH>,OO and a.maxlroumof lah payment. The "IMn cheraernaY be ess?ssed without notice,.
and hall Immediately and . . ' .
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v.,; pat V'. unt1 l'tu{o ana anaqcruer.t. and l .. ,.pdfd Interest' are JlayabiB
damahd, otll no demand Is made, than sums are payable ad6llows: . . .
. . . . . . . . . . ' .
Number of .. of When.Paynlenta are Duo. .
Payments . . . . . .. . . . . . :. . : . . .. . . : . . .. . . .
hDDENDuifTO,P"l}Ol!ISSbRY. NO.XE ANil BALLOON RIDER A'J.'TAmlED HERETO. lNCOlU'Ol,\ATllD
' . . : .
.. Mat.uriiy Dater_
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Each bhall be applied tis. of Its due aM In "older oi applioatlon as the LenderIQ I til sole
wsoretlon may from time to tltne elbot. .. . . . ..
All outstandihli. uhpa;d "ali hobru;d and ohbrge.s,
In this
pr for tfte canetl( of, and owlrtg on. jhe Flnai"Matytlty are due. and
payalile on such data. . . . . . . . . .. .. . ..
Lender. may, of per;odfo payineots above !liat the ..
payments Will fullY amorilza the principal. Notaon tha"statad maturity wlthoutany 'ila)loon" Unequal. pbyme.nt.
HAS iolL6wiNG DEMANb FMTURE: : . . . . .
.. '
At any and !rom lima to time, cit rtot "prlbt to an8/o," bali! scheduled ;fates, londet .tnay, In
Its sole absolute <Usoretlon, reschedufo, reairang& and/or aCcelerate,. In who/l! or 1{1 part, thtf 00tstandln9 .and unpaid
pHnolpal batanoe, and all Shd uhpald all accrued ahd unpaid late OhatgSs under . .thlsNote. BbrroWer
agreeS and 'promises to Jiay bml:let all accehitatecr Sfttl filf .acorueG '!lii.d unPaid lritareSt pn slloh prtncfpa!,. and l'i/1
accrued and urip8ld lata :charges: No- notio-a:pf lnt9nt .10: &Ocel!)rate shali be teciulred p:f and .exj:iressly
.w.alves arly t19Fit tO notlr.ie..of Leodet'S'IntGnt to acfoelerate', Tha foregoing right tO make- demand 'foe lmm()dlata.
at this Note, ,In whole or In partr may be bll,.lepdar 8ny.reps.9.it whl:)ther Or fiot Ia In
cjefaUit In Of l(s maturity. .
THIS A . . .
. TH;S IS PAYABLE IN FUtL ON FIN.AL MATURITY DATo SET FORTH HEREIN IF N(, P.RIOR DEMAND HAS BEEN MAbo . ON
THo FINAL. MATURITY DA1"E YOU MUsT RGPAY'THE ENTIRI: OUTsTANDING BA"LANCE, ALL ACCRUED-ANa
UNPAIO INTEREST, AND ALL"FEES, LATE CHARGES; AND/OR OTHER CHARGES INCURRED IN 7HISTRANSACTION llY,.OR ON
. BEHALF OF, 801iROWER,. WHICH ReMAIN UNPAID, i.l(NDER rs UNDER"NO OBLIGATION TQ REFINANCE "tHE L\)AN, OR ANY
PoRTION THEREOF, AT THAT TIME. YOU Wlll"THE6EF.ORE BE MQ(JII\eo TO MI\KE PAYMENT OUT OF OTHER" ASSETS YOU MAY
OWN, OR YOU WiLL HAVE TO. Fl_ND A LENDER, WAlcH MAY" BE THIS L.ENDER, WHICH JIGREES. TO LEND Y.OU "THE .TO
. REFINANCE, IF YOU REFINANC11 AT MATUfifT.Y, YOU MAY iii\VE TO PAY. SOME OA ALL OF THE CLOSING.cost.s
. .. ASSOCIATED WI_TH EVtlN IF YOU OBTAIN 6EFINANCJNG FROM LENDER. . . . .
The lailure-ol ao;towa( to pay any payinent(s) .of or any lntetest lata chargaswhen
. tl1e 'siinio Is due 'arid pe'rmlt Lender, at Ita optron, to aocela'tate the maturlw,_ notfoe to of
alj, or tihy pOrtlor), of the !iBfnfllniOO barande.outstending; all accrued and urlpald .Interest anCI all acoruCd
and Uiipald late charge's of this Nota1 Same. slielrl bo Eind .PaY.abfa lmiTied!ate!y, . , .
.

inay are ari oWing by dUe
and payable .Upon to be 'adversely .llffecte.d and/or lnsepure. by reason of.tmy, material ohaiige IQ ahy, bf
aorrowal's (lnofudlng any endotsers and/ol guorAntora)nat worth; or bY ree;oiJ ot any other "lmitertal bhange of.cohdltloh
whethEwor not deSorlbed Mreln. . . .
.. thls:Nbje s:hqil
Usury la!IJ If el any :!lrno snf ill!etsllion\tlloldd lot, or under Jills:(-Joto or 1>thei'WIS<i In bonnsotlon
Loan would be under appiiQabie "gordloss of !he prqVI!Ions of this Nota or tho dooutnMts
and lnstrumanle ot o!Her\'Jih )n with the loan ot action or I>Vsnt
withoUt-limitation, t>rpnymoh\ of prlnolpill ot dodbloratl_on ol matuHty by lho Whlcih trl"Y ocour IIIIth
raspoct to this Nolo or tho loan, It Is thaf itll do!oimlnod to 6o "usufloU
0
shall bb lr)miedfillbly oredi!o<t.by the
.. Londat ao a payment ol"prlnolpal of!! Nola hAs already bs'!n pdld,"imnlo.dlatol{ra!unded to tl!.borrowdt.
!Ill ooniponeatlon \Vhloh oonltltU!es' lhlel'<le\ -Unq
0
r anplloabls law In with L9ah ehdU ho nhiorttibd,
. protated, allocated 1!11d lull pdrldd of tlnlb .. Is ay_ tho gtM!as! oxten\
without ttlo,l!ppllaabla. rata. allo\\fed by spplloabla law ilr lllrio to lima during
suoh potlqd. . '. ' . .
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. "in no. event sh;ll the provisions of Gliapter 34&, of "tps Finahce coda. faguitas ciqrfaln. revolving .jdan
aceounts and ra9olvlhg trli>arty aecounts) apply to tHe l<i!ll\, :
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IN THo EVEI'IT MIY !ToM, 11"EMS, TERMS OR PROVISIONS CONTAINED IN ARE IN "coNPLI()J WITH THE LAWS
OF THE STATe OF TEXAS, OR LAW, THIS INSTRUM!iNT as AFFECTED ONLY AS TO ITS TO SUCH.
ITEM, ITEMS, PRQV!siONS, {INC SHALLIN ALL 0Tffl1R JlESf'ECTS REMAIN JN FULl-F.ORee AND IT IS.
AGREED tHAt IH-NO EVENT AND UPON No CONtiiWENCY SH;\Ll THE oaANY PARTY
THEREON, OR 1HER
0
FORE, llE RE041RE0 TO MY iNToREST OF THE THE LAWs OF THE OF
TEXAS OR FEDERAL LAW, IF-SUCH.IJ\W PERMITS A GRI!ATER.RA7E OF INTERest. THElNTENTION PARTIES BEING TO
CONFORM.STRICTLY TO THE Ustl!\Y LAWS AS NOW OR ay TH\! COVRTS HAVING uURISOICTION, .
BORROW[;!), ALL Note !THE:
""OBLIGORS") HoREBY, JOINTL\' AND SEVERALLY, WAIVE EXi>RiiSSLY AtUioiiC!Es"oii OVERDUE !NSTAllMEfl'r
PAYMENTS; ANI;) "oEMANDS "FoR "THEREOF, NO.TICE$ OF INtENTION." to. ACCELERATE' MATURITY;
"'NOTICes QF OF .. MA'fUil!TY; DEIJANo NOTICES OF
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QmHOf\!Qfi, . ..<.9F Pfl,QTEST, A,tiP D)LIGEN9E IN Co. IC<TION HoREQF. E{.\CH OBLIGOR
THAT THE LENDER OR OTHER HOLO'ER tlF THio NO.Te' MAY AT ANYTIME, AND TIMii TO TIME, .
UPO.N RllOUEST OF AN'f.bF.TH.Mi:flENEW NOTE TliE DAT . OF
MATllRrTY OR,CHAI'jGE-THE TIME OR, METHOD OF PAYMENTS :w!'l'liOUT.'NOTICE TO ANY OF THE OTHER
OBLIGORS, MAKERS, S\!RE.TIES (lR' .ENilORSeRa WHO SHALL .REMAIN BoUND FOR THE PAYMENT HEREOF,'
08LJt:;ORS WAIVE THEl.ATEFILING q)' ANY. SUIT. OR (:Ai,JSE OF ACTION HEREON; OR. ANY DELAY IN.
HAND.I-INQ . AN'f OSLIGOfiS 1\GRI'Jl tfiAT' 'HOLDER'S AOCEPTANCIO OF PARTIAl. 9R
DELINUUoN,T ,PAYMENT$'0(1, PAILIJRg OPHGLD.ER TO EXERCJqE Ai'!Y OR REMEI:iY CONTAIN I'D HoRE!N OR IN
ANY INSTRUMENT ,AS 'SECURITY FOR THE i:Jf'.THIS BE .A WAIVeR OP f.i'jY
O,BL(GATJON OF THE QF .. AN FlliQR'OR DEFAULT. THe HQLPflR
MAY. REMEOY ANY DSFAULT WITHOUT WAIVIII!Q .. l]EFAULT;REMliPIEI;l AND I{IAY, WAIV('.' ANY.. DEFAUlT
WITHOUT WAIV(NG W.SSJ:Cll!ENT DoFAU\.T.: . . .
. . , . . . .. . .. . . . . '. .
T<> the . tl1js :11oio, and which mov bo'
Borrower (and endorsers end[or guarll}l!ors Lendar or other holder hereof, Borrower(and qny endorsers
and/or. harc.of) dr.oth.er hol<for herQof, a security IntereSt, a llort end contraotual right of setoff
In and to all qf the Borri=!wer's any andorser&and/or guarantors money, credits, and/or' other
property. In, Qr at any. tlr{ie hereMtel porphig. within, or qontrol of Lender orptlw holder heraof; or enY ..
membal B&n or brench Qank of .Cotporatlon, whether or special aopount or
dwo.slt
1
or or: aafekaeplngor btiierwlsth Every aqoh seourltylnt.erest and of 4et-off rnav
delllruJQ or notfo!}. to Borrower (and .any antf!or guaraptors NP seclJrUy or right of set:off tp
enforct'auoh Interest. shall be t9, havellaeh .eny a9t Gr conduct on the par't oi'Lendar, ofby'
any fa lur13 to such right' of set7offor to enfo(Of' such seouritv lnlerest, 9r by j;l!'lY delay an doing; Every right of
J:1Rd security interest continue In. full 'fore!' .and effecf .lmt.ll auon rlaht' ,of se't-off Or seottrlty Is
welveU or releesecj by an Instrument In writing axeouteH py dar. Theforegolngls In- to nd not In
lieu of any rights of allowed . . .. .
In conne0tlon With mlY 'ariq lender present M .future, In tha .'
BfJrrowerr lnd1Vld4s!Jy or JdiOtly wlth 'qthBra, has. Or granta Lender !fan p11 re'at and/or personal prop!}rty,.
Borrower agrees that the lien on rbal gro-pa.tty .shall a!flo ffldEibteQnass of eorrQwer to
Lender evidenced oy Npte renewals, eXtensions el)c! hijreQf. . . ' .
lfthlsNote, ol pert hereofils paid tti isfipced.lii' the of an' attornay:tor is:
cqlleoted other judl<llal or non-Judlola proQeedlrip$, whethor matuted'by expiration of'tlme
or by the exerc;jsa Qf tho optfon given tp the Ltmder to mt'lturelt; ihEJ f3or(ower a.nd'a!l Ptlrtles naw 'or MroaftCr personally
hereon hereby now.aai'oe t'o shall Pf:\Y an addltfohit! amount eqltlil to {1 reasonapla and neces!)ary fees
and ass'op!atf!d cQsts for c'olleotton. Said attorn\)y's fees ar{doosta of ool!eotfont o'hcQ liquidated paid by Lender or
pthorwiSQ bY lawr will beat lntemst at the rata .of IOteraet applied to. mFitUred and pilst-due principal Palllnoe
of this IHJ such ratemay ohang)lfrorn t!me to time fromd{lttJ Pt:le until repaid. . .
hr"the t}Otlon by ot is pommenooit. With the of; pr uny
deqlaratlon of rights uni1ar .this ['lots J)hd1or any Jnstrumerlt pr agreement required or.dof/vered uncferor pursuant
to the tftrrils of thla: NotEi, ttrlcJ/or anv. poritrpveray or 'claim, whether oonlraot, tort or legal or
equitable, InVolving In vnw tho fln4nolnd or qf 1tdq Note, or !=lOY oth proposeq or
ac!ual loijn qr l<lnl9n of P.rovalllng entitled to racovor anp flttomey's
paralegal oosts H11Ciutflng f!lo.oqtflif !JOSts. for lnt'loUsa 1ega1 cost&, expert witness fees
oqsts, lnconneOtlorrwlth any or . . .
'. t , ..
Lender, In qole discretion and wltho4t ollllgatlon on do so, P(Y s4ms on behalf and for ihe
benaf!t of Borrower f-or Costs necesSary for the protection an preJlervq.tlon of tbe securing tt'lls Note and other
costs th&t may be fn. tCndar
1
h, sole dlscfretlon, tnoluQing bqt not llmftoQ 1o insqrtlnoe pram ums, ad valorem
faXes, .. Any sums whl.Cfi inay be So 'paid out by'lendf'l' sums pE!fQ fnr prem!u(Tis,
tho oos\s, .expenses and In .. sal<! property shell
fromtho.dates of auoh payments at the cohtraonate apP.II<!tJl principal balance of thla Nota and shall be
Qy E!orr6W13r to' upqri' demP,ild, Jit fhe same pl&ca 11t which thfS.N\?te Is payable; be deemed a part of
the dabt and os In ell aspects. . . ; . . . . .
reserye'; the rlght 1o .prlorto maturliy, :ell' or 'any P&rt qf thil pt1nolpal pf this Notq penalty,
Interest o(lpli cease. on any amount' so. .. Air prepayments .sh'ill be applied to t\ie.Jeat maturlnp.
qf prlnolpel
1
Interrupting !ho . .' .. . .
Any sasump)len, It permitted !>Y by pp'rsqp .Qr corporation, organization or eny
other entity tile express wrttten of lender, snail not release the jleblllty of .Borrower for the payment of
tlil Nota. . . .. . . . .. .. . . . .
event thqt desqrtQeP ,s Or of without the
written cQnsent of :the t'he met!Jtlty o Note,mayt the ppt(pnof the tendor, Qe accelerated and J..ender m&y
damllnd payment. of the outstendlnq prlnolpal sum togattwr With aoorued and .. uhP?Id Jntarest.
thereon. . . .. ",'. : :. . . .. ,' .'
and agree that In theeven; of a UMAutt under thiS Note or under any
document 'OXeputedby.,Borrower'ln conneoilon wlih; or 'to sedoie the ,P.ilyment of this t>ote (I)' Lender shell not be
required to comply of the TexasReviSe\1 Partnership Act Lender hell not be requjred to
prooeed a9ahi&t oral<haust 'the a&Ms of remetly dlreotly i!alnet one or' of tha
of Borrower or tho property of partners. . . .. . . . . .
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THg 1\PRee M .F.OI-t,qy;s: . . . .. . , , . . .
'tal, ANY stfCH W\IICH
nELAJ'ED' .THAN TEN THOUSAND
. ($10,000.001, BY 1.\iiBITfli\TII)N IN MCPRQANCE :.'JITH THE COJ11MERQIJ\L ARBITRATION
OP THB AMERICAN ASSOCIA'f19N IN .!'FFE<;T In' THE 9F UNLESS )HE P9MMERCIJ\L
1\ARITRJ?.TIQN' PRQVISIPI'I, ll'j $UQH EVeNT TERMS, PF THI$ PROVISION
. COI'jTflQHO THE oFTHE .. f'IOTI'IITHST/INDIIlG CONTAINED HeREIN T,Q THE CONTRARY,
S/We AllD;gX<?EP.'(SUBpAMGBAPHS.(kl
1
(f11J, (pJ, jp), Allll lHOSJ! 91lNSUMER AND
.. ' ' CON.JROYEHSIES !'!YPLVINa J\N .AGGREGATE AMOUNc'O.F, LES,S ,DOLLARS. (4jO,POO,OO)' StfALL '
. ; , BS CONDUPTED IN /lqCORQANCE WI)'W'TiiB' Al\ll'RICAN THE OF .
' DISPUTes OF THAN TEN ANY HEREUNDER SHAlL gl'
. TilliE!' As.sp'CJATEI! w'I!H. TH.E AMERIQAN . .r:
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,..,n, r,M.JI!.\Jnc vrv ,IJ.M.nDllrJRIVn IV ALL'>li-1\.Cl"l:.:-/YHICH MIGHt 19
CREATE A hEASOI'IAbLE IMP)\:<SS!ON llFtHo ARBITRk;OR'S PARTIAUTY, lM\TsR!Al ERROR$ OF .lAW SHAll
'oE GROUNDS liN AilDITidN TO AlL oTHERS) FOR VildJ\;TOfl OF AN AWAfiD RENDEREri PUiiSI.iANT to THIS AGi)EEMENT,
. . . '. '\ . . . . ' . ' . . . . .
:. {b). . THE AWARD oF:rHl! ArnliTAATORS, DR A MMORITY THEM, SHAll. FINAL, AND THtt,AWJ\RO
REIIDE)li\D MAY I!NT;ERl!9 IN AN'I coURT, $TAT!\ oR.FEDfiBAkHAV!NG THE ARB)TRAT!ON AWARD
SHML BE IN WRITI,NG SPIOCIFV THoFAOTUAL AND bASES FOR Tlila AWARD, UPON Tlin ReQUEST OF ANY
PARTY, 'THe AwARJ'j SHAlL !NCLUon FINDINGS 6p.fAcT AND CONCLUSlONS OF LAW. . .' .
{d)
dl
.,.,
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:AiuliTMsLs D1s1>uTes 1Ncll!oE i.Nv AiJo ALL oR PARTIEs oF WMATiavEii
tPE OR MANNER, INCLUblNG l'iltHbUT AI'IY Ci.AIM ARISiNG OUT OF M)lEIJ\i'ING TO.THIS N.OTE,
PAST, AND/Off FuTUna GREDIP M!)ILITIE!l AND/OR INVOLVING 'rtll! ANY
TAANSACtiONU OR INVOLVING AND/OR ANY 'l)F'
' OF, THS MRTIES, \1/HEtHER'BANKING OR OTHERWiSE, SPECIFICALLY INC!,UDING ANY ,T,OAT:
' coMMITTED BY ANY PAkTY. ' ' '' " ' ' ' ., . ' . .
. PAimessHAt.l ALLOW )\NO IN DISCOVERY IN :rHP. PEbEAAL
FoR A op bNE HtlNDJlED TWENTY {120! DAYS AFTER THE OF ii\1! ORIGINAL HESPONS!Vi;
PLEADING: DISCOVERY i)\AY CONTiNUE THERI\AFrER AS AGREED !lY Tlla 'MIITIES Oil' All AUOWEO BY. THE
ARBIThl\TORS. UNRESOLVED b!SGOVERY DIBPIJTES SHAll.. BE BROUGHT TO lHE'A'rttNTIOil bF lHE ARiaiTRATOMS bY
WRIT'I'nN MOTidN .FOR PROPER RULING ON.ANY OBJECTIONS, f>RIVILiiGES, AN\>
PROTi!CTIVe olti>l!li'REqUESTS ANo AWARDINil AEAsoN.ABLE ATTORNEY'S FEES TO THE PRWAILING PAiirY,
THE evENT tHE oF ALL .P.FFIRMAT!ve AssERTED oF
INT!mEST AND UPON THE Wlli'ITEN OF AI'IY PARTy, (1J PRIOR i'd tHE DISSEMINAtioN'
OF A [1ST bF ARBITRATORS, ARBITRATION AMOCIATION sfiALi. .. CONDIJOT AN IN .PERSON
:IIDMINiSTAATIVE WIT!l tHe PARtiES AND. THEIR AtrORNEYS FOR tH6 FOLLOWING AND
sUcH ADDITIONAL PURPOSES As THE bh Tlie AMERICAN ARBITRAtiON :tlSSOC!AtloN MAV DEEM
APPROPRIATE, {A) Til OBTAIN ADDitiONAL INFORMATION ABOYT THE NATURa AND MAGNLTUDB Of THE DISPUTE AND
.THE .kEARINOs ,\No SOHEDUUNG; (Bl Tb DISCUSS 'THe VIEW OM THE PARTIES AI\OUT AN'(.
AND/OR OTHEO OIJA[.IFIMTIONS OF Tlie' AND (CJ. TO CONSIDER, WHETHER
MEDIATI9N olt .OF QlsrOTE RMOLUTION MiclJIT BE 'APPROP!liliTE, 'J\ND 12J AS PROMPTLY liS
; AFTIUI THE s'El.EGriON OF tlia Allb!TRATORS, 'A' PRELIMINARY HEARING' SHAlL aE HEi.o J\MoNG'THil
PARTies, THEIR ATTORNEys ANti tHE ARBLTRATOI\s, WITH THE AGREEMENT OF THE ARBIThATQRS Afolo. PAIIT!i;S,:
tHe PRELIMINMV.fiMI1fNG MAY BE CONVUcteo BY. TElEPHONE CALL Ri\THEii THAN IN PnMSON.'AT'THE
'PRELIMINARY HEARING THil tHAt MAY Ilia INCLUba, WITHOUT' UMITAT!ON, A.
i>REHEARING, ,SCHEDUUNG, ORDER til) eAcH. MR'W'a bUTV TO A DllfAJlED stAtEMENT
nlAIMS, DAMAGes ANp/OR DEFENSES, 'A stATEMENt OF THE ISSUES ASSERTED BY EACH PARTY AND ANY LEGAL
. AUTHORITIES PARTIES MI\?.W!BH !d BRING t.o ATTilNTlON OF '(HE AND/OR
' REPUES TO 'THE PtEADINGS FILED iN, QOM'PUAN9E WITH SUBPART 2{AI; !Cl. S.TIPUI.ATIOIJS ANY
FA<ITS; (OJ EXCHANGE AN!li>RI!MJ\MKING OF AlL'.bOCUMENTS WlflcH EActl PARTY B.El.IEVES MAY BE
OFFERED AT THE AilpiTRATION HEARING; AND AVAilAiliLilY !Jp WITNESSES, INClUDING
fiXPERTS, AND S\)CH ADDITIONAL MATTIUIS .REGARDING WITNESSES INGLUD!NGTHEIR llloOJIAPHJES AND A sHiJIIT
,SUMMARY OF THEil! EXPECTEQ. TESTIMONY, IF) WHeTHER A STENOGRAPHIC OR OFFICIAL ligconb OF THE.
! {G) THe POSS.IBILITY. OF' UTILIZING MEDIATION OR AltERNATIVE
. <fl .FoR bF TfliSPROVISION; "THe PARries MEANs aoRRo.wER, AN'i EAcH AND AU.
ANNMTIT!ES SIGNING THIS AGREEMENT AN OTHER A<lltEEMENtS alrrWeEM OR AMONG ANY MRTII;S As
b.F THIS TIIANSACTION, "1'HI! SHA(l 'ALSO 'INDIVIDUAL PARtNERS, AFFILIATES, OFFICERS,
DIRECTORS, .EMPL(!Yi'l!S, AGENTS AND/OR REMoSEN'I'ATIVES o'F AM PARW 'TQ sUCH .bMUr.iJ;I\ItS, AND
ANY otHER AND f(ol!ieil THiil AGIIeyMENT; . . ' , : :
lol ,'rlii! PARries HAVE fila liiGflt TOINVokS -sELF, HELP REMEDIEs (SUCH ,All ETOFF, NCITIFICATION OF'
' ACCOUNT D.EBTOHS, SEIZURE FORECLOSUR15 bF' CdllATERAL, AND .fo!ON.JOD!CIAL SALE OF
'PROPERTY AND REAl COLW\TEAALJ BEFORe, DURING 'OR AFTER ANY ARBITRATION AND/OR REOUEsT ..
'OR PRQVIU!ONAL,J.UDICIAL (sUcM AS GARI'IISHMENT, AITACHMoNT, SPECIFIC PERFORMANCE,
RECEIVER, INJUNCTibN OR .RI!STiiAin!NG blltlllil,.ANbsEqUESTMT!ONJ BEFORE OR iiFrER ANY ARBITRATION.: THE
PARTIES NEED 'lloT AWAIT THE OU'rt:OME OF THi! ARbiTIIATION BEFORE USING SELF-HELI>,.REMEoles, USE SELF
HELP-OR PROVIsioNAL JUDICIAL REMEDIES SHALL NOT bPEIIATE AS A WAIV!lR Oi' EITHER I'Antv.'S '
RIGHT AMITMTIOII, ANY ANCILlARY dR.PROVISIONAL REMEDY:WIUCH WOULDIiE'AVAILAnLE FROM A
cOURt J\1'lAW SHALL Sfl AVAII.Aiilla.FROM THEAROITRATORS. . ' : . . . . ' '
. ' . . . . ' . . . . . : . . .
': ' !hi THe AGRE!l Tfii>/AAY ,<\CTidN AEGARD!Wl I;ARTIES sHALL EllHER BE.
BROUGHT BY ARslrlfATlON, As OJ;SCRISED HEREIN, OR BY PROCEED{rlGS, BUT NOT IJE !>URSUI!D
IN DIFFERENT OR 1\lTERNATIVE FORMS, A''f!MELY OFINTENT TO ARaltRATi!
PURSUANT TO THIS AGREEMENt STAYS AND/OR ABATES ANY AND ALL ACTioN' IN A'TRI;.\J. COU!lr,SAVI! ANb El<OEPT
' A HEARING ON A TO ARBITRATION ANDIOR tHE J!NTllY OF.AN COMP,ELUNG AliEITilATihll
STAYING AND/OR ABATING'TllS LITIGATION THE FILING Of THE FINAL AWMD OP.THE ARBITRATORS, ALL'.'
. REAS.6NABLn AND NEC'ESSARY ATTORNEY'S FEEs ANoALL TIIAVEL COSTS SHALL DE TO THB PlllaVAILING
PARtv ON ANY Mr.lr!ON rro COMPEL ARBitRATION AND MUST BE TO,SUCH PARTYWi!HIN'TeN (101 DAYS OF THE.
" SIGNiNG OF THE oR'o,ER OOMPELI,ING ARBiti!ATION> ,' '. , . . . ,'. : , . " .' .
..
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(!) . ANY AGGRIEVED 'I>AR'IY 'SERVe' A WRITTEN NdTICE' OF INTENT TO TO ANY ANO All bPPbSING
PARTIES WITHIN 360 DAYS AFTER DISPUTE HAS ARISEN. A IS.DEFINED to HAVE ARISEN ONLY IJPdNRECEiPT
OP SERVICE OFJUDICIALVROCESSJ INClUDING OF A.COUNTllRGlAIM; i'AiLUilino.SERVE A WRITTEN NOtjCI',
OF INTEI'IT TO ARBlTIIATE i\BQVE SHALL ai; Dl!EMED A WAIVER OF THE AGGRIIWEt>
\
; PARTY'S RIGHT 'i'p qoMPE'L ARBITRATION OF SUCH ci:)\Uii. THE WAIVER PURSU,\NTTO THIS AGREEMeNt IS
.. . ... .' , .. ,.- . . .' '. ; .
ACTIVE PARTICIPATibN IN PENDING LfTIGATI.ON DU}liNG T(!i; .360 DAY WHIITHER As on'
IS A. \1/Alilf!\ OF TO GOMPEL'AllBit)lA-TidN. ALL PENDiNG'
SUBSEQUENT jiReltRi\TJpN PROCEEbiNG. , , . . . . ..
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.. , JHE PAATIJ;S THAf., BE: Cf'RTifiED ('.S 1\
.. 'ACTION PR. PIIOOEEO .A&.A'C!J\SS 1\0TION, 'OR Ol'hA BJ.(SI$ INVOLVING .C\:l)IMS IN A
. , . QFTHE PUBLIC( PR-POTENTII\L CuSTOMERS OR'.
P.ER&Oi'l& !INP'IIII NO /IRB!TMliOI'I BE PONSOPDATED WITH, OR
' . 1!1 ANY. WAY W)TH. ANY O!HER ARmTRATION rRoCEED)Nq; . . : ..
;1; .. : TH'E.PJSP.\fTE, THo
PAY AN OF!IIE AND Of THE
: . FEES, 1\ND . : . ' . . : '
rri!l: .:;m STI\TUTes oF umiTIONS wHicfiwouw d\'H.ERI'iiSE IJE APPL!CABL!i &HII(i' lippty ro ANv' 11i-16 OLAJMs .
JN AJ'IY .HI'ftEUNDER CQMMEI'ICEMI'NT QF f:,NY 1\RBITRATION
.PROCEEDINq TOLL$ SUCH ST/\Tl,l]l! QP LIMITATIONS.; . . . .. .-: . ' . . . . .'
!nl . iN ARBITRATORS, MMORITY OF THEM, 1\RE ...
' EI4POWERE0 TO (PY DOCUMENTS ON!.)(,_ OR'WITtf'l\ AT TH!i' BOLE
:-; Q)SCRETION) PRE-HMRINq 1\lQTIOI'/S WHICH ARE-SUB$TAI'ITIALLY.-SIMILI\R TO MOTIONS TQ DI$MI$$ ..
' ANI> '. : : . ' . . ' .' .
to! TH;$ oR. oF A!lREEMEN<
: IN PROVISION 1$ 9F THE AGReE IN WRITJNG, .
!pi_ : 'THE' ni11r .THIS .A. TRANsf\PTJPN: -.
QOMMeROE. TtlE Fj;OERJ\1:. ARBITRI\TIQN -1\QT St!ALL .QOYJ!RN 1/!.TI'f!P.RETI\TION,. I'IIFORCEMEfoiT,
PVRSUI\NT TQ THE CLAU(!E-OFTHISIIQHEEMI!NT, : .. :
fql . .. ; .OF PAEVI(ILING
.PARTY PURSUANT .TO THPERMS Of : , : . . ' .
lrl : MAY.' OR: 'ANY
ARBITRATION HEREUNDER .WITHOUT pRIOR WRITTEN CONSENT OF AlL PARTIES ANP/PR .
. l$1 .. iH.ALL. iN . . . ' .
. . . . . .. . ' . ' . .
THE OF THis .NOTE
ASSIGNS, THIS NOTE IS GOVI;RNED BY /IPPliCABLE'TEXAll. L}.V/,. THE EXTENT TI{E UsURY LAWS OF TEXAS ARE
fED<RAI- IN WHICH .cASe, 9UCH FEQERAl LAW sHALL VENUI' OF AlL /!.CTlONS ON THIS NOTE,
SHALL LIE IN COUNTY. ALL oaL)GATIONS REQUIRED-HEREIN ARE FllRFORMA8lE IN . .
COUNTY TEXAS . . . . . . .. ' . ' .
. '.. ..... ... .. .. : ........ ..
If th_o loan pr9aaedsare to,ba'uSed for family qsfl
1
tha fofloV!h19 ilo1foe apply;
NOTICE TO tiNogR i'exAa LAW IF to you sUBJECT To A fUTLiml RI\TE .
HIGH AS 24% ANNUAl- rjATE; QR THE STATE USURY'CEIUNG
1
LESS, ' . . . . .
I :"
Nb UN'lJR,!USN oriAJ BET\yEEt{ IHij AAQIJES . .
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. : . :Freauencf:. :. : :' " ::AmoUnt Or.
Payments . . : ' : ::payrllenM
. .. :. . .: . .
: . \Jutstandinj(
. i principal.
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When. Payments'
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Cotnmencmg .
Mp,roj11,2Q07,apd
co"tlnulpg
.on. the
' ftrsf day Of.
each . . succeml!va '
cajpndltr . . month
\Jllb1 mid including
A,P!ill; 2099.
(b)
... :
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.. pjipcipal .aQd !ill
. ,OJ) . Fh;al Maturity
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. ?c,cnie<l, . unpaid,' ..
. . 'ihterest :thereon.
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'. .Fipa1 MaiurltY nate:'lif!\'Yl; ....
. .
. . Maket may borrow,'i1>p,ay and at a!IY.IUho \lh<ler !llls Note proviqed, ho'ytey9r,.
' tiia\ j:he principal balance,o)ltstanding Jlnd<;rMa timo$ha!l,not exceed 1\vo }Jl!Jion an<!
. Nq/100 ($2,000,00Q,o'P). Tho unphld ba!IJllceofth,is filial! mcreaso ltlld decrease with
.each t\le may be, !lll:hough entire prin?ipal
biiJiillceofthls ij'ote ll)t be )?!'i<l hi Ml ji:On1 tlmetp time, this No to be tet!I!ffiate<i
.. , , . . . . , . , .:: : . , , .... ,'
. . .' . This credit facl!fty waa evaiuate<!, based upon tile eqtlre
relationship Borrqwer an<! Lender. Is (Q & waterlalpegativ.e chango In !bo
<fcpos!t,a.nd/qr other aii<! or'(ii) a.material change in the. :

oonltol whi9h Len<!er reasonably

b!'liOYOll lnorilases tl)e risk pfrepayl)lent, tl)enLeqder; in' its sple ani!absolutedis?retlon, tnay Increase th;:
cqnnectionwi.lh this ujr!a l,QQ%; as it ,may float from li"Je from
tiille (i.e. to.1.25% NewYotkPdmP Rate). . .
: 'll; . ; . . . . ' : . . ....
Executed ..:.___:__.day ofFbmary, 2008,. .
BORROWER:
Dci;a ):,td., a. 'fexa& JhnitQd : ..
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'a;r: :Oelta LLG, . : : ' '
a Texas J!m ed lja ill ..
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. 'JWS LPA!'I IS. I'<\ l'fAii ON MAY.l, 2009; YOU M.UW!' Tilll )Wf.IRE . .
:rRil:i0wM BA:LANCE,oF: rim rim' ....
NQ nffi J:..OAN . .' you.WOUL'o,
'. . . -qffiREFcnm, l3E RJ3qu:i:R:Eri rei MAI<EP.A.YMilNT oui oF otHER:AssErs \'au MAY :
:OWN, oR. ;you woUin'Th<, Va ro fiNo A wtnctr A,YBE '!1ffi YQU
. . .. HA,fii.Tiirs LOAN-m;u:A'r l'vrA.:ni'Ri-r.Y. .. Y!Ju.i.MnrAVE.ro iA.>:-solvriw.l:AiL
: . :rnE CLQS!NG' cosr8, NOID,Uil.L'( A,SSGCIATED Nl}.W .tbAN llVli!<!l'F' YOU .
. OBTA!N'RllFiNAl-TCrNG.FROMTBE.$!\MEBAl'll\' .. . ' . . . ' .
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.. / A. : AI!' en! tiehtoi: .. 6r acqulted i;; .
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without .limitation, fqm!ture; mao)iipeiy, vehicles ana .lix!uWs,
..... :. : . . . .. .wJih and ll.'Ol>.ess)ops; at(actimenta' '(Uld other_ to,
. subst.lhites. $lcJ for iwprQveinents o'f eq'uipment
1
whetlier
noyrowiied m:at time )ler<!lll\etacqqired or lhaa,,'tqgether vlith aU. too!, parts
lll!a appurtenl\llCe.<! now or auy .tiine()lereat'ter .\wed in anq together w\lh all
. proceeds. of the eql!ipment or referred to-above;inc!uding insurance.
: payable)y rooson bf )oss'or <laniago aj,a 9f ruiy'p.olioy rif : .
on _tlje Collateral by Farty,.includ!ng.apy refund& 'Qr
. . llll"'!!;ned ,prelll\ums l]! . witli. imy' .cancellatloq, adjustment ot
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I\: Inyeri.tory: All:.in'vent<>cy of Pebtor, whenever acquired mid whetlier 'now or_
. . . . li!'rea'!ler 'eXisting, Including :bui no.t.liJtlltO<! to goods; anq mercluuidise
inieb.dedfor nlopr by Dol)ior orl<l.be'J.Utnl,hed by Pebtor, under contracts
pf servico{lltd all !Wit goo_ds in' process, fi.ni'sh><dgooqs !llld of
every l)allJOO. qsed "?Jl!tectiou wifu !l!e maqufn.clu.ring,
packing, shippijlg, se!l!nr l"!lsi,hg .flnltishin!l <lt such 'services,
_ gpqqs,.war!'S and'merchau4ise; al,l qf,title, m!Wqfactnrc's Of
: : other frpin: or relaty<t Ia. suah fuventory; lllld all'
. aceessiptis; oiher to; substitutes for; replacements for,
..
.'improvcm:ents to. a!\4 retUrns .o.f. ihventocy1 and aU .proil{:eds of such
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(i)' .. :AH:of ;he o;.i>t4cnvlsll;. now or
. : :4e!'Oafler arising, exisiing' pr c(ooted, nOW . .or here'after attached .to. or
iqqorpprilt"'! 'il)t<,> or about J!w _p;erqjses, jnc(udipg .all
... furnitUre, lip)iUances, ft)nli$hin!l$, gdod, eqpipmeut,- l!l)d .rnhinecy'
owned' o\)ter' tangible .now. o.r -!tereaf)er
affl1(ad, atmched property. or 11-9W br he""'fter affixed,
: Or related to supij j)roperty Ot .\'lsed 'in and
. '!Ill roplacemeiinqubstituti
0
.ns for Qr to !l!'Y of !he foregqlng;
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. . (2) :.alld:>der to; ..
re_plaooments .fqr, and. imj>royements' of, ,the. property aOcribed h\' (a) ..
. . . : abgve, whetjter 'IQW o,wned .or' at I'll)' time hereafter acquirad or .
, . t9getb.envith'all parts, ap.d 'appu*naRCl'S l;l<>W oi a! any time us&l'ln
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... :' "(3) ',: , f\jf' prpdrtdts . ana 'proeeeps, 'Jticiuqp;g, Without ' !!mliation, ,
of,' and:addltlona; to,, nil and c,f
, .. . . th,e
itb!lve, to replac,e wop\-oqt

other . . . . .
: t \'.. :
D. . Acc6unts: AlL ,and pllJlOr \.r' Debtor, .whenever
. . . acqulie{ ?tt4 .now or in9lu<!Ji:lg, but not to,
aCC!)upts aqd paper which out.of.. (i) s)lle or other d!spOillfOl\ of
(ii) the (iii) the ,fundshipw of, tlio uso of, g, the
ofli"Y .Qf.the'Coll.at!'\al, atl4 (\V) agt:eei)tent.to provide'ap.y of the above; ancl
telatilig or:,;rlsitig in with :any
&ccoti1ltS '
. E. : Alj fhliiJlgibl\'8 of Dehior,. 'ancf
. \'fh!'ihr iww or )lere(liler and all procee<js tliereof.
'doc.uttients
P?rtalningto, (l!ld. au:.C!?!tlalners

t!Je property.desc;Jb or refen:e4 to.m
<): !h;oug!t; E and !lte ?.ftl)e
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2009060416:13
P1/t
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EXTENSION AND/OR MODIFICATION AGREEMENT
COMMERCIAL INDEBTEDNESS
Date: I.
The "Into charao'' mnv be accessed without notice, and shall be
immedhnelv.due.andoavable.
Account No!
f111ch payment shall be applied as of its scheduled due Bnd
in tho order ofapplication.as the Lender in Its sole discretion
mav from time to time elect.
Borrower: Dolts Produce L.P
'
wilh ony and all acorued and unpaid interest and/or
iaN char2es, C o
1'he startln rate of interest will he -jli!(
uor .11nnum beninnina on 5/JaOO?
;;
The failure ol' Borrowcrto pay any of the payment(s) of principal
or .any Interest thereon or 80!'<'Uod late charges, when tho liB!11e is
due and payable shnllpermit Lender, at its opfion, to acwlerate the
without notice to Borro'Yer, of all, or any portion, nt' the
outstanding unpaid prlno)pal bala11ec and all accrued and unpaid
Interest, and all accrued and .unpaid lute charges under the Note I
this Agreement, whereupon the ame shall be due and paynble
lmmediotely.
Any outstanding nnu unpaid principal, accrued nnd unpaid Interest
all all 'fees, late charges nndlor other charges Incurred In this
ttonsnction by, or fQr the benefit of, if any, which remain
due und owing on tho Final uturily Date are due and payable on
such date
% llottower renews and extends the Note, and any and all Socurity
Agreements. security Oeods uf Trust, ami/or other liens
created by Borrower in favor of lnleroatlonalllank of Commerce.
Except as provided herein, all other terms conditions of the
) :;) 'N"'e:-;;w;-;Y>;;o:-:;rr,k"P;;;rtm=o
Note, and all Security Agreements, security Interests, Decxls ol'
Trusts, and/or lions cr<atcxl by Dcods of Trusts and/or other
Loon Documents, if any, continue as written, and remain In full
Final MaturitY Date: Mx t,ZQIQ
Bom>wcr promises to pay to the order of International Bonk of
.Commer<:e tho Outtanding Principal llalanoo on tho Nolo
-a<:cordlng to tho terms hereof with inter<:st it oocruos on
. tho outstanding unpaid principal tialance until paid, In no event
shall the rate of interest to be paid on the unpaid principal
balance be less than
uer annum. nor more than the maximum leal rate allowed bv
nvolioablo law.
force and effect.
.TO THE EXTENT ALLOWilD llY l,AW, ALL MATURED
UNPAID AMOUNTS Wll.L 81lAR INTER!l5-T AT THE
MAXIMUM LEGAL INTEREST RATI! ALLOWED BY
APPUCABI,E LAW. lf applicable law does not set a maximum
rate of Interest for matured unpaid then Borrower agrees
that the maximum rote fo'r such amounts shall be eighteen perQ<:nt
(18%) per annum.
To the extent allowed hy law, ll.l the iatc payment charge undenhe
Note/this Agn:omont, Lender may In Its sole discretion (i) Increase NO AGREEMENTS
the Interest on the prinolpQI portion of.anypaymunt.amount that is
not received by the payment due date until paid to tho maximum THIS WRilTEN LOAN AGREEMENT REPRESENTS TilE
..ate allowed by law, computed on a full calendar year basis from FINAL AGREEMENT 'BETWEEN TIIK I'Alt'IU;$ AND
the payment duo datu until paid, or (ii) should any payment be MAY NOT 'D.E CONTRADICTED .BY EVIDENCE OF
more than tell (10) dnys late, Borrower sh.all pay n oncfimc "Into PRIOR, OR S\lllSEQUENT ORAl,
charge" pcr'latc payment equal to five percent (5%) of the amount I liE PAll. TIES. 'THERE ARE NO
U pnd pf paymenl, .. UNWRITI_EN ORAL AGREEMENTS BETWEEN TIJE
minimum of $10.00 a. maximum of $1,500.00 per late PARTIES
payment
Rorrower
. . .
::_;.;. ,.. Do Ita Produce L.P
Aormwcr
a Toxns ilmited.partnl:fship
By:Deltn Produce rnonaemnt. !.LC.

i.'
EliTEN! >'1 ANn/OR.MOD!F.ICATION A(}ru; .lENT
. COM:MERCIAL JN))Elfl'EllN'ESS
Dato 1 Mar,slll5. zotp

l3otrower: Prnduco L.P
Tho cha
11
roayb&aeces.sed w1t&out nottoc, and shall bo
lmmedlatoly duo and payab\o,
!Jacl. Jll\l'lll<nl shall be as of Its l:heduledduo dato and
u\ the order ofapplloatton us tho lAnder tn Its sole dlsotetlotl
may fto01 titno to timo oleot.
or any interest tf1c:trJn or charS,o.s, whetJ. tho same Is
duo and pey'tlblo shall peni:llt lender, optlo'n; to acci1emto
tflo maturity, without notlco to BotTower, of aU, or my pmfion, of
tha outstandlnt unpaid prlnofpal balance and ell acortlcd and
unp.ald lnl!!li'6St
1
and all aeorued and unpaid late charges under tho
Note I thfs Agreootont, wheteupon tho same due and.
vayablolrnmedlatoly.
Any outstanding and unpaid vrtnclpal, a>rued and unpald lntere<t
at( nl1 late clwges: and/<:ir other. charge$ inm;rrtcd in thfs
tmn&at:tton by, or for the benefit o(, Borrower, if any, whlob
ttma1n due artd owing on the Final Maturity Dato are duo. and
any and fill unpaid interest and/or pa,y.ablo ousuch dato
lalooham,., .
.Dorrowdt renows and oxWn,ds tho NI)J aqd an). and all SecUrity
per annum bdp;innfng on aawoto .Agreements, security Interests, l'leeds of Trust. an4/o'r other Jten,s
by Borrower ln favor ofJntomattonal Bank of Collllll.eriJe,
llx>pt as provided herein, all other term! and condlctona o tho
RLOC ' Noto,,and alllfc<JUrl!y seondey JJ4s of
NeWYorkPrlme: flo!tlng+U4" 'l"tu% and/or othet tfcns cr<mted hy ll'eeds ofTt'u$fs and! or othdt
FlnalMaturltvDato: M!y15.2011 Lo'a.n!toonmenl$, Jfan)', oontinuo M W:dtten, and remain fn twl
fot'C and offeet,
llO!IOWor pronllsO! to pay to order of lntttlarionat Bank of
Coinm- tho O'u!standlng Prlno!pal Balanco on tho Noto
tt<:COtdin8; to tho tenns. hereof togcthor wlth as Jt aooruos
oh tho out.tatt<l!ng unpaid prlno!pa1 balan<o unNI paid, hi no
oveot shall tho to be paid oo thotitlpaldprloolpa\
balaneotrless than l'on< and thr'oo qUarte<spoM>t(4.75%l
;per annum, nar tnDfO thail thoinaximum Jegat tato aU owed by

TO '$'!! BXrll!;r MJ.Ov/IJD BY LAW, AIL MA't01U!D
'ONl'AID AMOuN'l's' V/JLL BEAR lN'rllllES'I' AT TilE
Mi>XMUM LEGAL lNl'mUls'r RA'tll A!LOWJ!1J BY
If appUoablolaw d..,oot sot a maximum
ratoor intor<:st fortnaruredunpald mount8
1
thenBorr<Jwor a_grWJ
that tho maxltnuttl tOto for suoh shall bo clght<en !'tOtO!
P"< anOI!nl.
To tho ext.ent aUowod by law; .as tho' laiC pay'mcmt ob&go Under
tho Note/this Agroetnent, Lender ln ita solo dlsotctlon Q) NO ORAL
lnoreasli tho lntorest on lh prln<lpaj of any payinint.
amount fuat ls by tho pay,ment duo datoUiltU P.atd to '.l'.Hls WIU'tl'EN LOAN AGRBEMENT Rlll'l\ESEtrnl THE
tho maxlml!Dl rate allowed by law, on a t\111 calendar FINAL AGREEMEIS'l' llEt\VJlEN 'l'llE l.'Al\'rn!S AND
yoar basis from thopa)'lllent duo datounNI paid, or (ll) shonld any MAY NOT BE CON'tl!Al>IC'i'ED BY lMDENCE OF
poy!n,n! bo moro than da)'lllat\l, :iJbrtowcr shall pay a o)tl& l.'lUOR, PQN'l'EIII'l:OJ.lAN'J!OUS OR SUllSKQUllN'l' ORAJ..
t\tno '!ato charge' per loto paYtnent equal to fivo P<roent (5!1o) of AGRMMENts 011 'l'Bll l.'M'l'iES, TlllmE ARE NO
tho amonot of1ho Jl"St duo prlnolpal and lntcrtsl ofs'Uclt ORAL AGREEMENts BEt\V'rutl! T'n\;!
with a minimum of $10,00 and a maximum of SJ,soo.oo p<lc Into l'AATIEB
payment,
Bo110wer
tlel!al'ro'duco L.P
t1 Texas Umtted
Address
s. Luedo
SanAl\tonlo, Toxas
Adgr.,,
12-50073-a998 Doc#357-2 Filed 10/17/12 Entered 10/17/12 16:18:16 Exhibit 2 Pg 11 of 11 .....
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Nei(HtilY.lOJt'KKM'f;fi"J'S-
'l'illS WRIDEN LOXN.AGRI!:AANT J(E('RESU..,'Til THE
fWo\1,, t\.OBE.BMEl\1 'fffi: i!M'{lES .QID
JjO\' ll&: <Xl.h"TRAD'ICT0 )\y OF
suds't.Qumrr oJW.
.AGRtEM-Nrs. OF THE PARTIES.. 'tHEliE- Alto! NQ
UN\VJUrrrlt O'!iAL' BE'l-\YMN nii

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PRQMISSORY NOTE
Acoount No
Offloor

Amount $600,000:00 Oale: '/f , 2010
For valua recatv'ed, the receipt and of which hereby .the undersigned, folntl; (l(ld severally,
{horolnafter,
11
SOrt<lWar .. ,whether one Qr more) to to tha t;>rder of of Goll\n\e.rce
(haJalnaftllr
1
'Lenger'), atl30 E, T avia,, San Antonio, Eexat . Gounty, Texas the sum of
.-SD( Hunared Thousand and Uo 100 . . .
Ool era(-$ , In legal and lawful rMOIJY of the United StErtes ot Amer.foa, as It'
aoorues on the qutstend!ng prfnolpal batanoe from d?te Of of such prin((lpal until paid,
, 1.- .. ...
'The ln!emt rate $hall be anil\llh; cr.
' l<.X l,OQ:! ' NEll
PRTI1E llATE (de1fll>td as fl fluOtu.:ito ft001thno
that ln no ihall il:)ctalo (pl\1$: thereof. i/.any).tp b;pa!dcn,th&

>llnw#o,<>ppli<:Bl>ll<low. raloon tbls Nolo ohll b> 5 00% . 'porcelp<t
*
assum. 'Iho "" ofln!"'t shallh<.r<ooowU!<d ol of <he wHo oCany'cl!anz!n the Prlrne Jlllo,
sc.ventean amt thrae-q,ua.,;ters .llJ .t:Jf'J percent.
'IholNTE)\NATWNAJ. BANK COMMBl\CB PR!Ml!llA'l'B shBlll"ean rate b! l!'t1"'t ,
M.tloll!I.Cf:d fxom tl:ple to tUuc by $.f p\inlo . .
XX Tho NBWYORX mealt ihe annuallea.d.W-g uta a.n.doqnced ftom Umc to itm'o by
JP Morgan CbWI A c;o., NowYorl<t NewYO>k
1
M Its prlmorato.,Hthe NowYorkPrlmo R:ltohu
Ralo and If, J prlo.rato fs not tly JPJi.rors,tu1
than lho1nternatl:onal Blink Pd.fncl\ato, nilil.u.s p-c:rcen(1%) shall l>o,llio Prltne
Use of,e1ther olsatd-Prlme Rat?s not to be II! a watiMtyorrcpro!eatatWn.thatWchra!es moro ll)w." anoth.cr
fato a the( !icllldet maYJlptbe bA!tdon or an loans: tO crlheu wynot bo
a\leh prhnuate. ' .
... : . .... .
'l1to lritertst b ca.leubtcd on a300-day facr-IJlPllf on. p 36S:daf year, or a 369dayyear;in lho event thallhc rcar'ts a leap yur, 011
tho prlnolpal to the date modo orodjt)flnt tolb,o dlloh'l&o oflhelnt"'lt and,
balance to the otili.o prlnolpal. however, that fn the interest tho meximUnt 13te allowed
by applleabto law, Mid nuxhnUII:I.legat ntc 'sliall be Ml Cll1=.darycar16S/36S days hM!i. orou days basli, 'In
the evep.t the year-Is a !cap yur, will not axceed .
Mlltuted a.ttJ.ount! \Vw 1m: on a .M1 year-365fJ6S days bul;,; on S-3ciW'306 days bds. fu tho c.vnt
that tho )'earls a loJp ycu,l!t {galrnto orlu!trest:ZIIQwl by To us law, \Ul1tlss: FedtaJ law a.Uows rat,
1
1n
wi!J,eh oue, Borrowcr a&W! topsy tlio ra,to allowed Qy ?M:erallaw, lf applleablo J;,w doosnot a maxiplUmra!a OfmtofOSt tot
, matur{d agr(.a.!l that th6 tnaximUDl n!$!or tU9hamouu.ts ,han (18%)pertiWUM,
To aaouro peyn1ont of 'thls'Note
1
end, to 'tho exteM bY law, may be
o\ylng by the or any of Sotto\yer heteb'{.grantsto .aseourity Interest andl!en.on ths(ollowlna
oolleteral . . . . , , . . , ,
SEE txarltT 'tA! 'AttACHED HBili-o .AND IRGORJJOAA'tED HEREIN.
B<lrtowet to adequate care of 1he Ml!ateral to Insure 1he collateral wfth a company satlstao:tory L<Jf]der,
tor such and .In am9unts as If Bor(ower falls to furnish Lend or With proof ,qt required
I BIT
!nsuranOG coverage, lerid,er shall hnvet tho authority to pprchasa lnsuranoa {lnoludlng single lnstJtenoa, whloh i'(lay
EXH provide protection only fo1 and ad<j the Piemlum for euoh' lnsuronoe, ,ylth Interest at, tl1e loan pre-maturity
ffll!!tl' to tho bala.nco of thli Nota.
.;;;) he tS.' on a aeOdoy factor on a $Gt;-daY year, or a ;366day year, 10 the avent that 1he year Is
leaP on. the unpeld prlno!pel tQ the of eaoh fnataJ!Irtenlpatd. PrO.vidad, however, that In the-event the lntere$t
ate reeohea the ratS allowed by law,.sald maximum legal rate bo comptJted on a full calendar
yoar 365/365 days \la$ls or on a 366/366 days In the event that 1he year leap yaar,. The.lntorast ohargad and
herein Qonttaeted for will not eX!'9ad tha maximum allowed by
To the allowed by law, matured unpaid amQUf1ts \';Ill bear fnterest computed on a ft.dl days
basis-or on a 3a6/366 days basis, In the event-that the year. Is a taap year, at the highest rato ollnteraet eltowed by
Tox,aa L{l.W
1
unless Federal Law a higher Interest rate, In \'-lhtoh case, Brrowep agrea"s to pay the rate allowed by
Federal La//, If app!joabla taw doas not, sat a max!mvm rate of Interest for mattrrad unpaid amounts, then Elorro.wer agrees
that the mexlmum Jate for soh amounts shall ba elght<en peroen1'!1S%) perennum,
To the extent allowed byJaw, as the Jato payment ohatge, under th1s NOte, lender may In Its $Oisd!soretlon {!) lnoroase
tho Interest on 'the principal porUon oT any payment that Is liot reoatvatl bY thepaymant due- data to the
maximum rli.te e1lowed by law, oompllte<f on a full calendar year bas{8 from thepayment data untll paid, or {1[), should
anY paymelit nqt b.a made {10} days fr<Jm .the. duo 8<JrroW4.('to pay ,a o'ne. time "rata per
taro payment equal toflvo percent {6%1 of tha of thapast due prlnolpal end lliterast of suoll payment, with a
minimum of and a ma;.lfrnum of $.1,600:,00 per late pa'ymant. Tha.ntato ohatge"' assessed wlthout,not!ce,
and dua.and payable, '

-
.....
. ' . .. . . .
' ' ' ' ' ' I ' '
The outstanding unPaid prlnolpal of thla Note a9H unpaid Interest arc. lmme?lately UPAn
demand, c,r It no damond Ja mpde
1
than :suoh sums h(o payable bs follows:
Number of Amount Payments When Paymaots are Oue
f'ayments . .
. . SEE .AnDliNDID! 'tO NOTE. Alffl. BAiitoo'&. RfDER AtTACkED HERETO ANi) -INciiJKPORATED
llEBEit!, . ' .
Final Maturlty Oatat June 5 20U
each payment ehell be applled.es of Its schadut;d data tbO orde; of applloet!onaa In Ita sola
d!soretiOn toay from time e!aot,
All outstanding unpaid J]r[nolpal, a!laboruad and unpaid Interest, and all fe:os, leio and/f:lr other .lrtovrred
fn this tranaatlon by, or for tho benefit of, Borrowei which ram!llri due anQ owing dn the Flnaf Mbturfty.Date er.s duo 'an'd
payablo on such dat(J, .. ' '
'Lender may, at Ita discretion, adjust the amou'rwof phyments cfesorlbed aboveto e.ssure romalnlng
payments will fullynmortlze the prlnolpel of thlsNote on tna maturity wlthoutany aa1109n" or payment.
THIS oaLIGA'rtoNHAs THi! FQU.OWING
..
At any 'time, and from time to tlma, whether or notpllor-to and/or during eald'sohadu!ed. dtltes, may, fn
Ita "Sola ahd abso!t.rta reauanga
1
and/Or ttooelatato, lri whole or In part, tho outstanding snd unpaid
prlnc)pal balance, and aGilr\rad GAd unpaid lnteros! unpaid .. Nota, aorrowor
ooraaa and promises to pay Lender accelerated prlnolpal ;nd all eooruod and unpaid ln!orest on aucli prfnclpal, and all
eooroad ond {.lhpald late ohatses .. No notloe''Of ,Intent to oooelerat'e- shall ba of Lendbr end eorrower:
waives any right to nbtlca of Lendei's lnlant )o oooalarato. Tho' forogolrfg right fo make demand for Immediate payment
of thla Note; lri or In part
1
may bo exaro!sed.by lehdotfor hn'y reason whateoev,er, Whe)ther or not lain
default hSroundet end' In sdvanoeof Its soheduled maturity;
. '' ' . .
THIS. GSLIGATION HAS A UALLOONPAYMENT PROVISION!
' . . . .
THIS.LOAN IS PAY ABU! IN J'ULL ON THo FINAL MATURI'IY DATa SET HEREIN IF NO PRIOR-DEMAND HAS BEEN MAOE, ON
THE mtAL MAT.URI1;Y DATE YOH'IJUST R(PAY THE BNT!ija UNPAID PRINbtPAL aAWlOB, ALL'ACCJi\lBO AND
UNPAIOINTEREST, AND ALL F10ES, !..o\TS QHARGES, OTHER CHARGJ!.S IN THIS'TRANMOTION OR ON
BI!HALF OF, BORRO\'{ER, WHICH REMAIN UNPAID. li!HDr:i\ rs UNDJ!R NO O.BUGATION 1'0 REFINANCE THe LOAN, OR ANY
PORTION AT THAT'TIME, ,YOU WILL THEREFORE BB REQUIRED to MAKE PAYMENT OOT OF OTHER ASSETS YOU MAY
OWN,' OR YOU WILL A LENDER, WHICH MAY BE THIS TO LEND YOU .THE MONEY TO
REFINANCE; IF VOU REFINANCE THJS'LOAN:AT MATORITY,.YOU iMY HAVETo PAV'&OME ORAL( OF THE CLOSING COSTS
NORMALLY ASSOCIATEO.WJTH A NEW LOAN, EVEN IF YOV OEITAIN REFINANCINO FIIOM THIS l'NOER,
The of to pay eny of or any ihar13on, late: ohorges when
the.sama ls'rl!!a.end.payab!e, aha!! permit Lender
1
at IJS op"tlon, to aooofarata. ttta maturlty,'wtthout nQtiOe toBortoWet. Of
o!l, orsny P<Jrtlon-, of the remaining unPaid principal b'alpnce 'OU1&tandlng, &II aoon.ta-d and uripefd and all
and lata of this Not9
1
wheraYpon tho semo dulf and payable lmmeQ!ato!y, , .
Lender,' at lis maY en QWlng by and{or
and pByable upon deomll\o-ltself 'to be adversely affeoted entflor lrtsooura bY teaMn of any matadel ohangliln any Of
&ofrower
1
s (!nolud!ng any .endorsers and/or guarantors) nat worth, Qr. by taasoh of any othor ohanga dfcohdltlon
whether or not Qesoribod herein. .
and Lender Intend thAt tl.i6 loan ovldbncad by this Note (tha ahaf!b.a In stflo't oolflpllanM with Cpp\loe.bto
usury loY{s. If e.t any tbpo qny lntGrept conlnicted for, charge.d, or t6CJ).Ivod.undor tJds NOto or oth)JJWfsa In oonnO:ot!On
.Would be' vMer apPIIOaql''ii'law, titen bf thO provl$Joi.s of'thls Noto or the'dod\lmentlo
+nd tllo Loop' or any aotlon UnO!udhlfl,
wlthput !Imitation, prepayment of QrlnQipal'herouHdlr or of rir'I!Urlty by tha Lender) which occur with
respect to thfa:Note Or tho loan, that plf&Um's' dottttn\tnBd tO be libtlr19(1a fJhall b8 tritll\1ldlat&ly Orediied
l:ondot,'ds"(i)l'fiytnGnt of pffi\Oippl hdiilundOt,'Or lt'tli!s pl!!d,'fnlnld,Jihily thQ SOiioWni:
AV compensation whfoh ROnstlt(lt(IS TritiJrest appllqo.bl(l fnw In Q1lnneotlon wUh tho I.Oflh eho!l bQ amortized,
prorated, allooatod ,na tiri lull'poried\)f'thne:any-lndabrodrioss tj owlhQ uve;mower; to tno'greatot oxtont
exooodlng mbxJmutn rsib alfo<vod b'y d.pfm0abl&law lh 'b{faot fronl tlma to time dUling
$UOh pariqd, . ' ' ' ' ' ' ' '
In no ev4nt abaU tha .provlslana qi Chapier, 346; of the TBxBs l'lnanoo (whloh oer'til!rt lo<!r}
and aeoounte)apply 'tlie'loen.
IN THe'EV<NT ANY ITEto\, 1rUIS, 1eRli\S Oft PllOVISIONS 'cofJTAINEO INTHIS IN COllFLicr THE
OF THE STATB'OF!BXAS
1
OR Fl!OEAAt lAW, THIS INSTRUMENT BHAU,AJE ONL"i' Af!i rb ITS APPUCATION 'fO SUCH
1TBM, ITEMS,' 1'ERt.-\S Oil PnOVISJONS, AND BffA:Lt. !N Alt. OYHER:fU!SPEQT-S flHMAIN 'IN PULl. fORCE! AND "I!FFI!OT, IT .IS
AND' AGRe!O THAT IN T.HE BORROWSR OR ANV PP,RTY L!Aa\&
THEREON, OR 85 RE9UIREO TO PAY INTf;RESTIN OF,H&.RAT2 ALLOWED BYTH! LAWs OfTHE Sf/ITS OF
.TEXAS OR F0ERAL LAW, IF SUCH LAW 1'01\MITS A GRSATEI\ RATaO,P INTER<sT, ;He INT\fNTIPN QP TH! PAR1JES QEING TO
STRiqTLY.TO THE USURV:LAWS AS NO)'/ BYTH. Jl4'!JNG JU.RISDIGTiON,
THE aoiuiow'eR. ENDORSeRs; sqfiErles, ro BECOMe ttAaLE all NoTe '(THE
'OBJJGORS") JOINTLY l)lio WAIVE i\LL NOTices OF OVeeyuue 'tNStALtMEJIJT
FOR MXMNT Ni;lrtceij or'INTENtioN' ro
OP ACTUAL ACCELEiiATfON OF MATyRN'/, 'PRESENTMENT, 'DEMAND :FOR NOTibes OJ<
. . ' . . .
1 ... . ..
'7) ' .. ,,-, .. ::-
.. , .
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.,
I
.
_._.. .... .. o1 '' """_,...., ....................... -
DlSHONOR, FBOTEST, NOT.ICES Of Pij<),Tg$T, JN COLLECTION HEREOF, EACH
CONSENTS THAT THE 'oR OTHER HQL\\E,fl OJ' :rHI(N,OTE MAY AT ANY TIME,AND FljOM TO TIME,
UPON REQUEST WJT)l AJIV.fW REIJE\Y THIS NOTEANQIOR 'EXTENO ,THE DATE OP
tAATURITY HEREOF OR THE TIME OR METHOD Of Pi\YMENTS WITHOUT NOTICE TO ANY OF THa
ClR WHO REMAIN BOUND FOR THE PAY.tJENT. HEREOF.
OBLIGORS WAIVOXPRESSLY THE LATE flliNGOF ANY'SUIT 0R CAUSE OF ACTLON .HERE!lN, OR A/JY bELAY IN
THE HANDLING OF ANY OBLIGORS MREa THAT HOLne)j's ACCEPtANCE OF PARTIAL 0R
DELINQUENT P.AYMENTS OR PAil.URE OF HOLpER TO EXERCISil ANY RlGHT O.RREI>lEDY CQNTAlNeD OR.IN
ANY GIYiN AS FOR PAY.MiNT OF NOta SHALL NOt A .WAIVER OF ANY
OBLIGI)TIONOl' THe OF ANY PRIOR OR SUSSEQUENT'QEFAULT,'T!lE HOLDER
MAY REM8DY AWl DEFAUL'f WITHOUT' WAN!NG.THE REMEDIED AND MAY WI>J./E ANY DEFAULT
WITHOUT WAIVINd ANY OTHER PRIOR OR . .
ko the allowed law," th1e Nota, and all othor.lndo;t;dna" may at any be owln9 by
Borrowor (end any OhdorsSra and/or guar.antors herooO tO Lender or bthor hOlder har13of, tho BOrrower (end any ondorsers
imd/or here.of) glva"S".to Lendor or pther holder hereof, a 's:lrourlty lriterest; a !len and eontrltQtuaJ r!Qhl of'sotoff
[n and to 1111 of the Souower's 1and any eildotsors &hd/Or guaumtorS hereon money, cre.dlt,, endtor othor
propany now In,. or at any, time heraqfter oofnln9' the oustpdy or Q<lnt(of ,of LenOer ot otl\ar' ,h&teof, or any
member.Bank'or branch Bank of lnternatlqnal heldln a general9r spaofal amunt or

or foi saiAkooplng ol Every suoh'19eurlty lotarost and rlsht of ootoft may ba without .
domaoo or notl;oa to BOuowar (entj any ondorQers end/or l)Uiudntora hereOf), No sabvrlty Interest ottlg t of S:at.oolf to
.saouiiWinterest ella!/ be'- daemad.to have bean waived by any aot 01 oonduot ofl the part o 'Uhdar, or bl{
any, fa!f}!ra to exerclse suoh rlpht o setoff or to enforoa 1(\tarest, or by any delayln so doing, right of
sat.Off ilrnf security Interest' continue In 'full foroa aod Qffeot until' 11uoh right of sotoff or sGOurlty lntoreot Is
spoolffoally walvad or raloaaed by. eh Instrument In wrftlng oxo'.c\,JteCi by Landor. 'fh& foregolrig .Js In sddltfpn to' and Mt In
lleu.of e.ny rights of aotoff ellQwad by'faw. . .. . .
. .. . . ' .
In oonnaotlon with any trarisaottoo bq.tW'Oan Sortower sn.d I.Aildqt at any .time \O tha: past, prosonf or. futuro, til tho: evant
!;IPr(owar, lndlvldva!/y or JolnttY' with otbors, has or grants a !!Sn on 8flY JOel and/or personal property,
Bouower the Uon on sybli rllal :snd(oc person!)! propprty shall also seoure of. to
.ovfdonoe by this Note and all renewals, P.nd modlftoatlns hereof, . .
. If this Note, or.tnyport hereof: IS 'paiu 60<lidtng to':lts rls.oed {n the hands of an atto'rh6y for Oot!eOtlon oris
oolleoted th,rough Probate, Bankruptcy or J4dlo(el or nonWWota prooaadlngs, wt\othor matute'd by exp!rat!on ol timE!
or b'{the exeroJso oJ the. oPtion gWM to the the a-orr'Pwer Md ail parties now or hereafter personally
!!able llareon horoby now e'grao to e'nd ahall'j)ay an;a.ddltfone.! ilmount equal to u rllaSone.b!e and neoesaery e.ttornoyJa'feO?
and costs for ool!"actlom saW sttomay e:fees l!hd 90sts of col!aotlon, once liquidated and paid by Lender or
othllrwiSa\ellowadbY will bear Interest 'ot rate of Interest 6ppltad to the matured and -ppstdue prlnolpal bale.noe
of thla NotC as auoh rate may change from timE! to tJmo frqrn,date,due until repaid, ' . ,
. . . . .
In the evenl. anY lege( aotlon b.y arb1tratlon qr ot,hocwlse, leoommenood ,with the anforooment of, or any
doolaratio.n of unUer thla Note' anlJI6t any lnatrvment or reqylroO or del!vared'undor or pursuant
tp thotarma ot this ,Note, and/or .any. QilnttoveraY.or olefrn
1
wllother $OJ.mGI!ng In oontraot; tort or leQal or
e,Ruij:abfe, Involving In MY Way tho flnai\olng or the.trM$aotton(s}, fha su\)jeot of this Notfl:, Of any either prQp-osed or
eOtuat or {)Xtenston Q( tho prevailing p'ilrty'shall bs'entlt!sd to rec()ver reasonabfasnd nSoass:sr.y attorney's
fe6e, paralagatoests .(lno!U'dtng a1Jdaiuad oosts for letlal servloas), ooa(s
1
o{(.ponses,. w)tnOss tees and
coste; and other neobssary made In cq-r1nqotl0n with any auoh action or prodead!ng. '.
Londer, In Ita sols d!soroiton 8nd without ob!lo:atlon on. sO, may stims on O'ehsl1 and for 1hs
of BorrOwer for' o.oSia for tho proJ11otfon and presqrvatfon of tR.ll OQllatorsl aeourlng th\s Note, an'd.othet
ooste 1hat. may bo approprlat9'
1
In LaMar's S(l/a dlsoretlon, but Mt 'limited to lnsuronco prem ums, ad valorem
taxM, end attomeys fees, PJiy sums mav beS6 pafd' out Lander.end suffis. pald'fot lnsurat)Qa P.i11mlume
1
as
aforesaid, lnoiudtng 1h!S exp-anses -and attor-naV'!l teas paiQ In arw s1,1lt Sff(lollng said property shall bear Interest
from tho of at tho Rtamoturltv eoAtraot(ato appllod 1o \ho grlno pal balonoe of this and a hall be
plild by BOrrower to Lender uPo"n demand, at the same ptaoa at whiCh this Note Is payable, and shall be dBaniad a patt of
the debt and r.ao9vorob!e liS such lnoll
. . . .. . .
B
1
or(o\vor right to prior to maturity, .all pan of tha prlncljial of 1hts Note without j)onalty, and
a all Immediately oenae on anY. smoynt" eo prepaid, -All piepa'ymanto afla\1 be applied to j.he J.ast mAturlng
nslallman prlnolpal, Withoyt lntei\UP)Ing' lnjtallmant paymonto, ,' . ' '' " ,
Any as.suniptlon; lfpermlttotl by by any or persons, Cofporstfon, o;ganlla110n or ariY.
othor entity without th6 expross wrltte'noonSant of tGndat
1
shall riot tho llabl!lti) of Borro\'ier "for'thG pftyfue(\t of
1hls No.to, : . . . . . , :. . .
In 1he event that the h11reloaftilr dSso.rlbad Mllatoraf, If 8ny, ls sold, oorweyad, othtirwlu dlsp-osdd of wlth'lut the prior
cOnsent of the !.onder, thO maturity of th1a Note may, at thtroptlon 9f the lendQt
1
bo l.ender may .
dllrrtand P.aymant ot tf\a then outstanding prl,rrolpal euQ1: together with pJ! aooruad an'd )nterost due
, . . : ., . . , ,
Borro'o"f&f Lander Mreby a.okno.wl.adga ond agree that lh the eVt of a dQfault under thts Npte Qf' under any'
e>,:aoutod by Bor;ower In CQnneotlon with, Qr to traoure the payment of this Note. (I) Lender shall not bo
(equl1ed to ooljlply Whh .S'ubsa01lon a.0.5(dl.of th '(axao Revised Partnera(ilp AQI (21 Lender <hell not be required to
P.toqaed against or ox,haust the assets df b-efore .pursuing SI)Y, remedY, 'dlieot!Y ,against one or mprtr' 6f Jha
partners of Bdrrowar ot 1he propoHy of auoh , . . .
ABBti"flAI!ciN,,
'tHI! PARTIES FURTHaff AS FOLLOWS!
11 ANY ANDALL coN'Ff\OVERSJEs BB't\1'/eeN.l'Ha PARTIIiS, axcm sucH ct.AIMS ANJ) WHICH
AEI.AYSD AND AN AMOUNt IN a LESS THAll !SN
DOli.ARSI$10,000.00), RESOLVIin BV,AABIYRATION.IN AC,CORDANeil WITii THE
RULES.OP THe: AMERICAN ARBtTAA'r\ON ASSOC!ATION IN EFfECT AT iHB TIME OP l'II . .!Nel, UNI..'ESS TH& COMM!if\OIAL
AI!BITRATION RULES CONFLICT WITH THIS PROVISION, AND IN SUCH 1\VENT THE YEAMS OF THIS PROVISION SHALl.
CONTROL to THE EX'O'NT OPtliE OQNFUOT, NOTWirliSTANOING ANYTHING'CONTAINED HE!imt.t TO CONTRARY,
' SAYo AND EXCBPT SUBPMAGMPHS lkl, (mJ, [o), .lp), Is) THOSe C!.AIMS AND
CONTROVERSIES AN' AMOUNt OP ll!SS THAN YEN !t10,000,00I sHALL
CpNDUOTED 'IN ACCORDANCe WITH YHE AMERICAN ARBITRMION ASSOOIATIDN RULES FOR THB RESOLUTiON o.
CONS'UMERmiLATED DISPUTeS OF TRJ\tl TEN THOUSI\ND DOLLARS. ANY sfti,LL BE
BEF<)RE AT LEAST IHREE ASSOCIAYED WITH !H6 AMERICAN ARBITMTIOI<ASSOCIAliON AND
' '
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'smor
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o IN AOCO!UJAHCS WITH lfHS COMM!R91A' MD)TRA'I'ION RU,eS OF. THE: AR.DITRATION
ASSOCIATION, fi\ILURU QF ANY..A!\BltiJitroi! TQ 'olsC(Ose.ALLlACTS TO AN
Qfli\ATil A REASONABLI! OP. YHE ERRQR4 SHA,I.L
BE till Abl'lrt<ON TO ALL OF N!AWA"D TO
THE AWARD 01 THE OR SHALL AND JUDGMENt UPON THE AWARD
REND!REO MAY PD IN ANY COURt, STATE OR IEllERI\1.} HAVING JURISOIOTION, THE AWARD
SHAtl BEIN WRITING AND SPEGIFY THij FAOTUALAND BABES 'FOR THS AW ... RD, UPON THE REO.UEST OF ANY
PARTY, THE AWARD SHAl"NC(UDH PINDINGS QF PACT,ANO CQNCWSIONS OF LAW .
l
ARBITRABLE DISPUTEs ANY.AND All CONTROV;(lS11S OR CLAIM'S flll'P/IEEII THE PARTIES OF WHATEVER
TiPS OR WITHOUr UMt(ATION, ANY CLAIM OUT OR.fiELATUlG Tp THIS NOTE. A"
PAST, PRESENT AND/OR FVTURB' FACILITIES AGREilMENTS ,INVOLVING THB PARTIES, ANY
TRANSAOTIONS BETIVEoN QR INVOLVING THE PARTIES, AND/OR ANY ASPfiOT OF ANY PAST OR PRESENT
RELATIONSHIP OF THE PARTI!S, WHETHER BANKING OR OTHERVnse, SPEOIFIOAtLV INCLUDING ANY ALLEGED TORT
COMMITTED BY ANY MRTY, ' .
THB PART!;; SHALL ALLOW ,ANb IN DISbOVERYIN ACOOfiDANOB ViiTH THe FEDER(<L RULES dF CIVIl
'PROCEDURE l'OR A PERIOD OP dN HUNDRiO Tj'I!NtY AFTER THB FlUNG OFrH,E ORIGINAL RESPONSIVe
DISCOVERY MAY CONTINUe' THER<!/II'tER AS.'AGREFO .BY 'rH; PARTIES OR AS ALLOWED bY THE
ARBITRATORS, UNRESOlVED.DISciOVEAYl!ISPlJtE$ SHALL'ae:BROUGHT TO tHE ATTENTIGN,OF THO ARBrtf\ATORS BY
WruTTEN FOR PISPOSI't[ON, INCLUDinG RVLINdON,ANY ODJEQTIONS, PRIVILEGES, AriD
PROi'liCTIVE AND AWARDINQ ATTOAN;'I'S FEES to THE Pni!VAillllG PARTY,
. . .
IN lHE oF ALL Gi.,..IIM ASSERTED EXoeeD'esoo,oaa.oo. EXCLYsLve op
AND ATTORNIIi's FEes,;on UPON Rl!<lUEsT OP ANY PAR)'{, (I) PRIQii TO THE DISSEP41NATION
OF A LWt OF POit:NTJAL AlUJITRAiORS, TMfi AMEJ\!OANAlU!lTRATION ASSOO!A't!ON SHALL OONDU9T Ar-l)N.PBRSON
AliMINISTMTIVE 'fHE PARms ANI> THEIR ATTORNO'IS FOR THE AND FOR
SUCH AliDITIONAl ftiRPOSES AS THE PARTIG$ OR THQ AMERIOAU MilTMTION ,ASSOCIATION MAY PWA
APPROPRIAte, TO OBTAIN ADDITIONAL INFORMATiON AUOUrTife NATURE'Ailo MAGNrtuDa biSPUTB AND
THE ANTIOIPATID.LENOTH OF HoARfNGS Arlo IBJ rO OISOUSS1HE VIS.V OF AfN
TECHNICAL AND/OR OTHER SPEPIAL OUALifiOAtiDNS OF THE ARBITAATOMJ (O) TO OlJNSIObn/IVHEiHER
MEDIATION OR' OTHSR ME)'Kops Of DIS PUn! MIGifl' BE APPROPRIATI!.- AND 121 As PR9MPTkY. AS
PMQTIOMIBAFTER 'rHE OF A HEARING SHALL B"HELOAMONQ THB
PARftES, ATTORNI!YS AND THe ARBITRATORS, WltHJHS OF THE AliD. THE PARTI<S,
THE PRELIMINARY QE 'BY TEtiPHOrltciiNFERSNOB RATHER !HAN IN PERSON. 'At THE
PR!LIMIIIARY HEARING THE MATTERS THAT MAV BE C<lNSID;RED INCLVDE. WITHOUT A
PREHIYI.Il!N<J scmaO.ULINQ ORDER ADDRESSING (Al "EACH I'ARrY'S DUTY TO SUBM\1 A DIITA\t.EO SiATEMENT OP
CLAIMS, DAMAGES AND/OR QEFENSE$, A STATEMENT OFTHE ISSUES ASSERT.ED BY !AOH PARTY ANb ANY 1Ji04'
AUTHORITIES THE PAR'rlE<t MAY WISH TO BfiiNG TO THE ATTeNTION'OF THE AR!ITRATORSI IS) RESPONSES,AND/QR
REPLIES TO TAB PLel\DINQS FICEO IN COMPLIANE WITH' ,SUBPART 2{A!I IOi. Rll<IARDINq ANY
UWCONl'SSTel_l FAOTSI (D) t!XCHANOE ANfi PAI!MAilKING QPALI. DOCUMENTS WHIOH EACH PAS\TY ant:n:.VeS MAY BE
OFFEREP AT THe FINAL ARBI)'MTION 1'1 TAE IOEriTIFICATION ANO AVAIIJ\UILITY OP.\VIT.NESSES, INOLUDING
EXPE!R.TS, AND SUCA ADDITIONAl. MAiJ'ER<$ ROOAfiUING tnct.UDINII 'I'HBR SIOG'RAPHIES ANO )\ SHORT
SUMiiARY OF THEIR llXP.OTEO' TESTIMONY, IF) WHETHEII:A QR OFFICIAL ReOORO OF THE
PllbOEEOINQS sHALL llE MAINTAlNEP! ANbIO) THE OF UTILIZING,MfDIATION'OR OTHER ALTERNATIYE
1\Uil'Hoba OP DISPUTE' RE$0LUTIQr-t, . ' .
. . . . . . .
FohGRPSES 61 THIS PROVISIOn, me. pAnTIES" ANb BOijROI:IER, I!AQH'AND Ali.-PE3SONS
AND ENTITIES .SIGmNa THIS OR AllY p'THERAORI!EMENTS. BETWEEN oaAMONG ANY OF THE PARTIES AS
PAl\T OP 'tHIS )'RANSAOT10N, "lliS SHAf.L Atso.moLUDltINDIVIOUAI. PARTNI!RS( Al:Fil.IATES, OFFIQ!!RS1
ANY AND SHALl.
PARTieS SHALL HAVE THE RIGHT TO lllVOKE .sm. HELP REMEPIES (SUCH A$ ,SI!T-OFP, NO'r!AOATION OP
ACCOUNf DEBt.OR.S, SttlUR!! AND/OR JOilil:GtOSURE O!i" COLLATERAL,' ,AND f{ON.JtJbiOIAl. OF
PROPERTY AND RI!A' .PMPERTY OO>LATEttA(l BEFORE, Dl)li!NQ o'R AFTI!!l AtN ARSriMTION l\NO/OR RGQUE$T
ANCilLARY OR PROVISIONAL JUOIGIAL REMEOIESISUCH AS,GARNJSHM!NT, ATTACHMENT, SPEOiiiC PEBFO!I/MNCB,
AQCEIVEEl, OR ftESTRAININ<l AND l3EO.I.)tiJ'I'AAi'ION} lJI!FORE OR Arl'Ef\ ANY A:RBIIRA'rtON. TH2
PARTIEs NEED NOT AWAIT THE THE PEFOM USING SELPHEI.P R!MEQIES USE QP SELF
QR AtiOILLARY AND/QR'PROVJS16N" REtrlEOIES SHALL NOT OPEttATE'AS A WAIVER OP EITHER PARTY'S
RIGHT TO COMPI!.L'j\nUI'rRA'I'Iotl, ArN ANCILtld\\' OR f'R.O\llSIDNAI. RI!MSDY WHICH WOUI.O liS 1\VAILABLE }!ROM A
COURT AT LAW SHALL UAVAIU\BLEIROM THB ARUITRATORS, ' ,
JHe ilan<e THAT ANYAonoN neoAnoma ANY cdNTHOVEI\SY BETWEEN THe PARTIE$ sHAL' EITHER BE
BROUGHT'BY AnU\'I'KAliON. AS D!SCRl81!0 bY .JUDICIAL l'nOCEEOINOS, BUT SHALL N"OT 131i
SIMULTANEOUSlY IN PIFFSRI!NT OR ALTEnNATIVE FORMS, A TIMELY WRI11'EN NOTIOEOFINTENT TO ARBitRl\YB
PURsUANT TO THIS STAYS MY AND A\L AOTIOtl IN A T(IIAI, croURT,.SA\<e AND
P, l;{l!AHIN'Q ON.A MOTION TO boMM;LA'f\BJTMTIOh AD)OR Tillt.E:<lTf\'y OP AN ORDER AND
STAYING 'ANDJOJ( ABATING Tfil! lJ.tfOATIQI'i' PEUOUJG 'f.HE 0}1 TH:t! FINAL AWARO b}l THE ARBlTRATOltS, ALL
RfASOII!\Pte'AND NI'CBSSAR'i' ATi:{iRN!i'i:s FEESAND ALL: TRAVEL COSTS BB AWAROSD ,TO nts PRIWAILINQ
PARTY ONANY MOTION Til COt.IPEL MBI'IMiiON AND.i.I0ST1!S PAID TO SUCH PARTY Vnt111NTEN (101 DAYS OF THE
SIGN1NO OlllHI! ORDER COMPELLING
Adarueveo SHALL senva A wrumN INTeNT T!> ARBITMTB To ANP ALL OPPO$)NQ
PARTIES WITHIN 360 D'AVSAFI'ER DISPUlii HAS ARlSEll, A GIS'PUfEIS DEFINl!D TO HAVli AJUSEti ONl.Y UPON REOt!IPT
OF SERVIOMF JUDICIAt.PROC"'iS, IIJOLUDING A CO,UNTfRCI.AIM, FAILURa 'fO A WRITT'N NOTIOS
OFIUTENT TO ARlliTRATS THS TlfA& >\BeVE SHALL BE OEEME!I A WAIY!lR OP THE AOGRIIWED
MJ\TY
1
G RIGHT T.O OOMPeC ARBITRATIONOF SUCH Cl-.ttlM; iHfi ISSUS OP WAlVER l'URSYANT TO THlS fS
.AN 1\RBIYRAtU,t! O!SPUTE, ' ' '
AOtlVS IN PENDING LtnGAliON'OUfUNG THl\ 360 oAv Nonoe P.Gruou, WHerHEa.'A.s PLAINTIPP oR
DEFeNDANT, IS NOT A' WAIVER OF niB RI.GHT TO' COMPEL ARBITRATipN, DISCOVERYOBTAINED THE FSNDfN.G
LlrlOATION MAYBU USI;O IN ANY SUBSEQVENT PROO"EEOJWJ,
. . . ' . . . .
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Ill
lm)
in!
lol
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lq}
lrl
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TH& FURTHJ<R AGRE& THAT (I) 110 AASITMTION PROCEEPING HE!\E!JNOER e& OERTIFIEp'AS A OI.A,SS
ACTION OR PROCE.EO AS A ClASS OR ON .)\ eASIS INVOWING CWMS BROUGHT IN A P4R?ORTIW
REPfU!SeNTATIVE CAM1l'Y ON BEHAlF 011 tHE <112NEIW,. PUBLIO, OTHSR CUSTOMERS OR PO'r.,\!TtAt. OUST9MI!RJI OR,
PERSONS SIMI'-'>RW SITVAT&P ANP {II} NO ARhrtRli'!ION PROOEEOINQ HER<URDER SilAIJ. BE OONSOLIJ)ATEP WITH, OR
ANY WAY WifH, ANY OTHEII.ARBITI\ATION PRoPE<DING', :
' ' .
ANY ARBITRA'TOA SOLECTED SHAlL ba IN THE StiBJECT MATTER OP THE DISPUTE, EACH OP THE
PAI1TIE8 SHALL PAY AN EQUAL 'sHARE PF THE ARBITMTION COSTS, FEES, I!XPENS&S, AND OP THB ARBITRATORS'
FEf!S, COSTS AND i!:XP!!NSI;S, ' ' '
. '
All STATUTES OlllMITATIOIIS WHICH WOULD OTHEnVnSEDE APPllOABLE TO ANY ANP ALL OLAlMS
ASSERTEQ IN ANY liRBITRATION PROO.EEDING HEREUNDER AND TilE COMMENCEMENT op' ANY. ARSITI\ATION
PROOEEOING TOLLS SUCH STATUTES OP UMITI\'TIONs. ' ' ,
iN ANY ARBITRATION PROCEEOINQ SUilJEOT TO THIS PROVIS!ONiTHE ARBITRATORS, OR MAJORITY 01 ARE
$PSCIFICAU.Y EMPOWERQb TO 'liECIOI! !BY OOGU.MENTS ONLY, OR WITH A HEARING, AT >HE ARaiTRATQRS' SOLE
DISORETIONI.PREHEARING MOTIONS WHICH Ail; SUQSTANTrAI.LY SIMilAR TO PMHI!ARING MOTIONS 10 DISMISS
ANa' I'KOTIONS PDR SUMMARY , ' '
THIS AMmiATION sHAtt. SVRVlVE ANY T6M;INATION, OR aXP.lRATION ''rHE
IN W!IIOH THIS PROVISION IS CONrAfNED', UNt.eSS Alt OP iHt! P'ART/.E!S OiH.ttAWie,J! t!XPAE$SLY Ad REB IN WRITJNO, .
' ' '
THB PARYI<S n!AT THIS AOREEM!IIT EVIO!IICES A. TRANSACTION INVO,VINQ INTERSTATE
COMMERCE, THI! 'ARBITRAYION .ACT THS ENFORcEMENT, AND
PRO'QEE91NOS PURSUf\NT YO Clf'USE , '
Awi.P.o ATTORNEY's cosTs To THE
' ' .
NmHeR .THe PARTUtS NOR THE" ARBITRATORS MAY THQ R 'RESlJL!t'SOP ANY
HEREUNDER WITHOUT PRIORWRITTEN OONSINT OF AI.L PARTIES A'I!,D!OR COURT OROlR '
VENUE OF .lilY ARBifRATION,PROCEEQINO HEREUNDER SHAL(BE IN ' , COBNTY, TEXAS,'
.. . . . . \ . . .
THE TeRM LENoiR INCLU.oEs ANY OTHER OWNER ANO HOkOER OF THIS Nor AND THEIR Resl'!!cnva.suocessoRs AND
'!'HIS NOTE IS GOVERNED ,llY A'PI'UCAELHEXAS LAW, EXCEI'T TO THE llXTENT THE lfSURY U\WB OP TEXAS'ARE
PREEMPTEo-DY FEOEML lAW,IN WHICH,CASE,,S.U6H Fl:DERAt. LAW SHAtl AfPI.Y, VENUI! OP ALL ACTIONS ON THIS NO"'''!,
IN COUNTY, TEXAS, AND At.L oai,.(GAiiON.B R0UIRED ARe PERFORMABLE IN
COUNTY, TexAs, ' ' " . ' ' ' '
' . . . .
If ttJaloan are to bs used prlrnarl!y for famflY or IJS!h t'M nqtlo,o shall awM
NOTICE TO CONSUMERSI UNDER TEkAS t:AW IF YOU CONSENT TO THiS AQREEMENT YOUMAV BE SUilJECtTO A FUTURE AA'TE
AS HIOH,AS ""TE, OR TilE STATE CEILING, .\:{HICHOVER IS ' ' ' ,
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ADDENDVM TO S6oo,ooo.oo PRoMissoin.'NOTE
. . .
NwJJberof

(a) Eleven (11)
(b) One (1)
FreqyeJ\cv
Monthly
Final Maturity Date: JUNB 5, 2011.
AmOUtltOf
Payments
Interest only on all
outstanding
ptlncipal.
:All outstru)d!ng
pdn9lpal and all
aeorued, \lDpald
interest thereon
shall' be due and'
payable.
Paytaonts
.are Due
c;oininenclng July
. 5, 2010, a)ld
continuing
montlily iho
fifth (5'") day of
Oaoh succossivo
calendar month
until and
. May 5, 2011.
0(1
Date.
This Note is a revolvJng note evidop.oing a,l!ne of ctodlt loan fro!ll Lender to l3o,,wer .
Borrower may borrow, rel"'Y and reboriow 'hereunder at any time undor11rls Note 'provide<l, however,
th.at the pr!no!pal balance outstanding under thls Note at any time shall not exceed Six Hundred
Thousand andNo/100.Pollars (S600,QOO.OO), Tho w\pa!d balani'C ofthla Noteahallinoreaso and
with each new advrutce or payment hereunder, as the case may. be, and although the entire
principal balance ofthls Note mY be paid in Ml :from iimo to time, this Note &ball not be deel)led
teun!nated or canceled as a result thereof, '
This credit facility was evaluated, analyzedand ultimately priced based upon the entlro
relationship between Borrower and 'Lender. 'l:llerofor, if there is(!) a material negative change in tho
de.poslt and/or other banking rejaeyonships berween Borrowe. and Lender, or (II) amaterial change in the
financial condition, ownership, management and/or control of the Borrower, which Lender reasonably
bellove.s increases tlta :dsk ofrepayrilent, then' Lender, In Its sole and absolute QlscretionJ may f11creasotho
Interest rate charged In ccaneot!ou with this oredit faolllty\>yup to l.OO%; asltmayfloatfro1n tlmo jtom
limo (I.e, Interest l!e V(ill to 1.25% abovei the New York Prima Rate),
' ' ' . . . ' ,., .... ,, . .. . ......... .
Executed thls __4._ day ofJuae, 2010.
BORROWER:
llelta Produce, Ltd.,
a lhnlred portners)lip
By: Delta Produce.Management, LLC,
n Texas Jlrulred liability ,;ompany,
qeneral PartnEn!
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l3ALLOON'lt)J)ER
THIS LOAN IS l' A Y ABLE XN FULL ON JUNE 5, :ZOll. YOU MUST REPAY THE ENTIRE
. .
TIJ:EllANKIS
\JNDBR NO OBLIGATION TO REFXNANGB TllE LOAN, YO'U WO'UL]), 111\lREFORJl, llB
REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS YOU M.AY OWN, OR YOU
WOUL])HAVETO Fn-jD A LENDER, WHICHM.AYBE THE BANK YOUHA VB.THIS.LOAN
WITHATMATUJUTY.
NORMAJ;,LY ASSOCIATED WITH A NEW LqAN EVEN IF YOU OBTAIN R.BFil-!ANCING .
FROM TilE SAME BANK.
this _!f_ day of June, 2010.
,
BORROWER:
Doltal'l'oduce, L.P ,, a Texns limited partnership
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A.
EXID.BI').' 'A"
Equipment. All equipment ofDebtor now or acquired by J?eb!or, ino!uding
without llmltatlon,' furnlturp, machinery, vehicles and trade f.Xtures, together wlth
any and all accoss!ons, attaolim,onts &nd o)her additions to, and
replacementS for 011d hnprovements of the equipment, whetheruowowue<l or at OJ1Y
time hereafter.acqulred or made, tpgetherwitll all tools, parfs,and appurtenances now
or at any thller hereaftet In and together wllh all proceeds of the
described or referred to abOve, including lnsw:ancc payable by l'eason of loss or
damage tliereto, and all proceeds ofp.ny policy oflnsuranccrequlredon the Collateral
by Secured Party, !noludlng any refunds or unoamed premiums hr connect! on with
any oancollaUoh, acijustrnent or tenminatlon of any sue!) pol!oy of insurance.
' '
B. Inventorv. All inventory,ofPebtor, wfienever aoquiredand or hereafter.
existing, lnclu9ing but not to all goons, wares rtnd merchandise Intended for
sale or lease by Debtor or to ?e furnlslted by Debtor, coniracfs of service 1\Ud
all raw materials, goods In process, finlshed goods iujd supplies ofeveryna!Uf!>Used
' or usable In CC)ll\COtion Wlfh tho.manufacturlng, paoklng, shipping,
advotlislng, lllng, leasing o'r furn.lshlng of 1\UQh services, goods; and
merohandlse; all i>enmcates of title, statomonts of origin and other
docmhents arising from or' related to Inventory; and11ll ai:cess!ons, attao!unents
and otheraddl!lqns to, Sllbstltutes for, replac;en\ents for, lmjirovementa to and returns
of such Inventory; and till proceeds ofimOh inventory.
C. Fixtures.
(I)
(2).
All of the property, personal or ofuerwise, whetllC; now hereafter
arising, existing oi created, now or hereafter attachoo.to or incorporated hlto
onised in oi about the Debtat's premises, Including all furnltur .. , appliances,
IUn)ls)llngs, gq.ods, equipment, and maphlnezy owned by Debtor other
tangible persona].propel;ly now or hereal)er affixed, attached' or related to
p.top(\rty oinoi.or hereafter llfr:!X<l\1, aitaohed or related to suCh property
or use4 \n coanecUon a,nd all substitutions and
add,itionsfur or to anyo{thoforogolng;
Ali attao!ufients nnd othe< additions to; substitutes and
andlmprovjlments of, the:propertj desoribed l,u (a)
whether now oWned or at any iimeheresfterw:qQired'ormade, together with
all tools; parts an.d appm:tenances now 'or at any thne u.sed in cqMec\ion .
therewith;
. '
(3) All products and proceeds, inoluding, without limitation, Insurance proceOds'
of, and'addltlonl!, andaooossiopsto, all. and any.ofthe property
described. above, exolucUTig proceeds usCll to replace worn-out or obsolete
equipment properjy.
D, M0unts Reeeivab)e. 'accOunts and chattel paper ofDebtQr, whe;tever luiquired
Md whether now or existing, inoll(ding, no1llrnlted to, acco)lllts Md
chattel paper whloh out of: (i), the or other dispOpition of goods; (il) the
fumlshing of serviCes; (ill) the 1\uWsblng of, lhe use of, or lhe lease of any of the
Collateral, and (iv) t)le agieemeni to provide any of the above; and all proceeds
relating to, resulting from ,or iu'lsing in ,cannection with any such accounts and/or
chattel . . . . . . .
B, Genera\ Intanilbles. All. futahgibles of Pebtor, . .whenever apqulred and
whether now or hereafter e)dst!tig, and !j}l thereof.
Together with all books, recoids, files, cprnputer software, documents and othe1 infonnaUon
to, and all contal,ners for, the Pfopeity descrlbedorrefurred to hi sUbse<;tious
A through E above, and the pro_ coeds of /lll foreg
0
ing.
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< : :-}
(,,,.. ,_,
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\1:'1\AOO' 1t
!>.779 aores of land situated :ln thaCity of San Antonio, Cou_nty, 'ro:x,.a,
baing Lot 4, t.ot s, ,Lot:. G,, X.Ob .,, nloqk NCB 369a't EdgewoOd Addition,
unreco:r:ded Plat filed. in Bexar County ?;ax l'Uisauaora BeXar County
1
'i'eXaa,' and a poxtion of Lot-63, Blooic :39
1
NCB SS98, .Vil:!M na n.s
:recol:ded in Volume 9555
1
P(l5(e '72, and Plat Raoo:rds oe Count;y, '
'l'exas1 said !J.-'779 acre tract of..land }XI:lng desoribed by
and bounds as follows!
mronnnNG, at a fOund l/2 inch ixon ;ad Ol} the .aoutherly right of war of
Moridq for tha txnar of naia S3, BlQ9k 39
1
aame
baing the UO'Xn'er of 41
;m,NQH
1
S 2511 .E, t:,he p:out:hal:ly right of' way 1!na of Medda
Street, a disl::anoe of '106,56 fe<'lt to a found 1/2 !ilgh il:on. rod,ori the
of way ilino o The
r.BENCB
1
along the aro of a ourvo to the a radius
ot 2966.00 feet,.a central angle of l4 22
1
an aro length Of 7lS,BO feat
and a chord headngt s 43 1B' 41
11
w,. 716.91 fc.et, to a found inoh iron .

'I'HBN'CE, s 36 02' s4w w, c-ontinuing.' along t!he northwesterly.' right of way :u.l\;;
of 'l'he, U"llion Paoifi9 .ttail):.io\1
1
a: of,l83.64 feat to l!. aet: 1/2 inch
iron rod on tho no*l::herly rigat Qf way lin$ of Ceralvo Strcat the'
uauthea.otel:'lY <!Orner Ot Lot S3J,
'l'Hi3.NCE
1
N 94c 10! N, tht/no:r;tHedy X"ight way Hue: of Cet:alyo
at::reet, a. distance of 3!l.06 feet: to .Ji. "''t 1/2 ihch h:on :rod,
':HEH<:S, CJrtJaeing nid 53
1
lll?ok 39
1
the foll.QWing QQ\U"aest
N OS 34' 47 t, a oe 9!),14 i;o l/2.inoh iron:rod1.
s .Sa' :e, a dbtanc;e ot 10,'75 feet t:o ll 1/2 :iti.ah iron xod
1
' '
N' OG' ll' 5lu B, ditlt.anbo. of al.,99 feat to u'et:. 1/2 inch :l.:ron >:odt
N 48
1
09
1
Ht a of to n set l/2 iron
U 06' 1t' 1 a of 230.44 foot to a uet 1/a!noh iron tod1
N B3q.48
1
09
11
W, a aiatanoe of 33.07 faet nee l/2
N Od' l:L' Slll l;, a of l;B.94 feot to a set l/2 iron r(,.d c:al\ tba 1;1.o"rlhGdy
l:M of uai.d, L:at; .53 1 Blook 391 , '
N w, a1ong lifia t-ot. !Sl, 'siook 39, tlistaAoa
of 1ao.o1 feet to a fowtd. 1/2 inoh rod an of &n.l.d
53, Block 39
1
same baiug tbe OQrner of said tot ''
'l'HEHCJ,I, Jl 06' U
1
3o'l E; 'along the Line of add tot S3t Block 39,' tij.et:ant;a
Jli3,96 feet to the J?Olll"r or l'I!WINNIRq of horaf.n 4eaadb$d and
6 779 aol:41J

mo:re or leo a. ' ' ' '
'l'AAO'r
ot; land .a!J;uat.:.d !n tha city f;J'f Sllll Ant:on!o
1
BpXal;" ,IZoWtty
1
'Xoxu, be!ug
the 6 . 31. feet of Lo!:P 1$'1 tbl;qugh 69
1
Bl.IX!k 40
1
NCS31i99, of LOt 1'1
1
lllook 40
1
lfCB 36"99, ao Xe(:o;(led itt 'vol\UII-(1163!5'
1
Page 311
1
Deed alld
l!.eQQ:rda of l!OJ(al:'Caunty, !l'exas, and p;ll of Lot:ll'1
1
Dloolo; ,0, NcB Jli99, U,A, Stauffol: &
R.<l, noviney Subdi'vj.flion l!-11 x-e(:a:rde4 itt VolUM Deed and !llat Reeorda
ot County, Texaa1 sald traot of land
as
, BEGINNIKGt at A 'J./2 inoh irotl. rod Jlet:l the norbb(ldy l;ight;. of way l;\t'l:E: <>f Hedda
Street, said 1/2 inoh !:ron :rod N 22' K, S.31 feeb from tha aoutheaat
tlQ"rnQ:t: of 11aid-f:9t 61$J ' ' '
'l'HEliCR, N 06' 14', 5311 ll, .()roadng add Lot1 57 t:hl'ough Gs', Blook 4"0
1
along tha
Q! traat of oonyayed t? Wont Coaet Oompwny, Ino. $$
nco;cded in.Vo1.\ltt'.q '1133
1
Pag9 s6a, Pi.tbUo Rey-o,rdq of CoWlty
1
a
distance of 364.13 fe'J: tQ a l/2.inoh rod sel:t:
':Jl{2l{Ci
1
s 21' SJ<f l':, olong no:r:l>het'ly.lino said tot 5'1, at a Qiatance of
pauing the northerult: OOl.TIG:t:" Q"t :4at B'11 tlatte. being the oe
Iftb l7, at a (!:istana.: Ot 127.92 'f(leb p{la.aing the of "Ltlb i?,
boiug the no:t:"thwut: of paid'Lot: 18, .in all a total dbt:anda of 24'1.lia to a
1/2 inoh .rod set. the COlmQl: of said Lot. 18
1
QI!.M lJeil"lg t:h&
northw11sl: t.:'Qrner of Lot 191
'.
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s Oli
0
14
1
,53" lf
1
along the co;M<.on boundaxy lilts Lot 18 e.n Lot lP
1
a
of 364.09 teet to a 1/,2 inoh iron dot on tbe notth6Xly right of'way lina
of for bb& soutboadb oorner of a4id Aot-18, tho
of lt1:. 191
'.l'HfrnCE, N S(O :1.2! :zsa- w, along the r/.ght of way lihe or \{t:rida ,street:, a.t:: 1\.
of 119.60 feet the C9xner of Lot aame being tbe
aoUthqast oorrie'l: of X:ot 1''1/ at a of 23$c
1
U feeb pauaing,the aou,tl)\o-e'Qt oorna:r:
of Lot 17, same beina tha southeast oo.rner of !:Ot 65
1
in all e. tot11l diseatloo of
to tbo OV of denoribed traot, 2,069
aoxes of lnnd
1
or lass.
,.
>rAAbT 3t
r.ot l.'t; Dl.ook 3, Rev City Blook .Mii, CJl.ll!s ltood, Unit 2
1
an c,dditioh to tho City o::
San Antonio, or

reeoxde4 ln,
Voluma 9S1a, Page 91, b:Bed. and af Colplty
1
SAVS l\ND
t:hat portion oonveyed 00 tho Clby of San Ani:.Qnio in Vol\Ule saoa; 1204
1
ot'doial
Puhl:l.o Iteaordll of Real P.rdparly of: COtpl-Cf,:L ltexas,.
:
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AGREEMJll'n'RlWARl>lNGLEGALFEES
lll11 S600,000.00'loan from JN'rERNAT!ONAL DANK OF COMM!lRCE ('Lerul") 1o
lJeHa Produee,L.P.
1
R 'texas limlied parine11h1p ("Borrower") seo\UeQ. byUen(s) On '!ho '
Propty.
DATE:
ll0RROW$R{S): Dolta.Produco, Y .. P.,a Texas llml!ed
l?.RO:PERTYz SB'a lOOt!Bn' "A AITACHEO llBRBTO AND lNCORPORA1ED liERIJIN,
STATUS OFFAJUtlMOND CASTILLo & PRESNAHAN, P,C.. Aftorneys at Law.
Legal {nshuruentt Involved Jn U'KJ above ret'eceuced loan and ml property
been. pNpared f'or l.(!nder by Fenlmond Castlllo & Dmnahan, P.O. (tho a Attorney").
Bntww-et(s)acknow1edge(s)thatthoAttotneyhuaconlyosootlnset1otholenderandha.ioot,ln
. 4nY Ill!LDll; undertaken to tender legal advJt:a'ti)Borrowet(s) with respeol:{l) this transaollonory,i:th
tl) any of tho dOQ->,l.ntents Ql' bolng executed In connection with the I pan,
Borrower(s) further aekn.owitdge(s) that BorroweJ(s) wuosot !or advice regarding this
UMsaotlon and thodocumwts beln$ c:<ec\1-ted.
2, RORROWER'SllESPQNslDlLn'YFOR PAThfENT OF EJ&S.
Borrower(s) tlgtee(s) to pay Jegal feS of tho Lendet 1n<mred In wllh'fhe
and loan doeumentatlon byma!dng, at tM loan dosin&j apayment ln
iho focthin pm.gcaph4.
3. n"eSCRJPTION OF LEGALS.ERyrcES PERFORl\fED.
ThonatUI'a e.nd extMt offhe leaalaetVIu.s Perro!med In connection wit:h thfs
ue as follows: ' '
wtth regarding loan; revlowoftltlo COitllnltmont, prepatatfOi\
d{)(ll.litlelltsincludlng:?z"oml.i,ocyNotobyBo\\Wfolendeq'I\vo(2)LLCReroiLil!ons;Coqrorare-
Resotmlon; Omissions; Agreement Reaatdlng Legs1 Feey, Busi&' Consumer Walvu;
Four (4) Gvm:nty Agreements; Notlco of No OralAgtecments and l-etter to Clo.ser.
4.
The fee in lnte:md to Provide fait compei'ISll:tfon i'ortOO above de.$crli>W: emioostaki!1B Into
toruidtulion. tM limo and labor tqll1rcd, -tho oomplo:dties of till! and tho akllt
requltt to perf'onn such Other considet11tion the ex_pertiso of-the Attorney 1n the
complexttl03 oflhc real estate .JKa.;;tke, tho necess-ary overhead a.ssoclated with (horenderlng of such
terviOO-$, and lho a.'ll!lmp!km of risk by tho lntendettng said mvlOM. Tho feo established
fot the services Is
. JJorrowet(s) h'ebyacknowledae(s) rcutvlng and read!11g a copy ofthls apeenwnt, 'tnd, by
si$J!atl.lro bclo""' affimt(s) th'o II.CCI.l!8C;'Oftbo statements oontald 1 2-he.teof'.
BORROWER:
Delta Pr\ldttce,'L.P,, a Texas limited
By
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I ,
TAACT 1: I
5,119 ecns or laOO l,J{tuated In tro City ot" Antonio, County, Texas,
being lot 4, l.ot 5, f.ot 6, l.ol: 11 Block 39, Nco 3600, E:dgllWOOd Addition,
unrecorded Plat. filed In County Assessors Ofi'Jctl Bexar Ccunty,
T&xas, a portion or lot 53, Block :;g, 3698, La!i VIllas De U11riM 43
reoord!d In Volwta 0$55, p..,ga 72, Oood end Plat Rooords of County,
Texas; eald 5.779 aCf"a tract of lend l:mlng 11ora by
lletes and bounds as 1\:1/IO>'i:Jt
BEGIIIJ!NG, at a.f'ound 1/2: incp lron rod on the.tOoutherly right; or way llna of'
Merida Street, for oornor of said lot 53
1
Bl0<1k 39
1
aal!l6
bofng tho northmlst;erly Cllrrwr tif said lot 4;
lllEUCE', s 22' E
1
alon!J tho sot.rtherly rloht or way line of A:erlda
Street, 'a distance or 706,56 feet to a fol#ld T/2 Inch Iron rod on 'tM
nort.hlrost,wly right or way filM of The Union ,PeCIIflo. Railroad;'
'(HENCE, alotl{J tM aro of a cu!Ve to tOO left havhlQ a r.tdlus
of' 2865,00 feal;, a C611tral or H 22.' 3Q", an an: ierlgth of 718,00 feet
mel a chord bearing: S 4Jq 18 41" 1'1
1
716.91 Feat, to a found 1/i! Inch tron ,
!"<ld:
TI/ENCE, S 36" 02' S4" W, continuing al011g tllQ right DFny fino
of 'rha Unlrm P,!lolflo RallraOd, a 'distance of' 183,t'Wt'oot t4 a s,et. 1/2 lhch
Iron red on tha northerly rl{#lt or way I lne of Ceralvo Street for tM
comer Or said lot 531
nu:.nCE,
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StNtt, or u.as rut to aNt vz lrd1 lrm rQd'
nruic, ('ro$$fng uh(LA:>t 53, Sleek 3:9', tho fc!IQ'C'{ng crunres;
" C?' 34
1
1!, e dlstmee. tq,. nt Inch lrt rod/
s &a E, or 10. 1& teet. to a sat 112 !nell trM r<;
N 06' 11' 61 e. a of '!1.$9 feet to II 61{t 1/! lndllrM rM:
N 83" 48' os U, a or 1.1,84 feat to 11 1/l ll'ldl lrm,rMJ
u o& 11' a1tt , .. rlie't.wca or no. r'"*t to a Jl)t: 1n lndl Iron r11
H E3" 'lfJ' os W, l of 23;07 ro,t to a sec 1/2 (t>eh lrot'l rod;
N ns 11' 51" E, B of 1&,tli (O!at to a sat 1/2. lrdllron rod .on tl!.t no.-tlwrly
/Ina or said Lot. 63,
THall:, u 64" 2.5' 13 if, alcng tM Hr.& or tlald lot< 11.1, Bl'k 3q, a dhJtMJ(.O
or HQ,01 feot to a fetnd 1/Z lnclt lf'o/1 rp4 for,.., lnt>!rlor wtmr or t:ald
63, 39, nu b<illlQ tM ll!ld Lert il
lHEK<E, U oo H' 30" E, ei<Q tho euutfy ltnc or :utd Lot 53, 39, a dhtmoo
or t<> POl liT OF BEGUlWi<l of tr.wt, anrJ
5.719 Mtn Pf !1nd, JYOrG or [ell$,
"/PACT 21
t.009 acres or hr:d sltulted In the City of Stn Mmoln, &l.:ar' County, Taxu,
tha E'a:;t a,aj fsl!t of lot11 61 thNlU11J 65, Btool<: .(O, liCa 3000, all .or let 17, .(O,
fiCO 3009, (dg<:wo<J M:lltlonf as ruoOrdtd Jn Voli-N 11115, .au, Duod Md Plat
of C:ulty, arid' all Df lqt 18',' atocl< NU 36$9, H'.A: Stwffev a
fl. G. Oli'II06,Y Sl.hdlvl111011 u t'$01'(fod In Voll!ll.a $J5, Pigll U3, Dud and Plat
of kJar nld 2;000 zCI'o ot 1/llld billr.g 11.oru ptrtloif.s.rly
(laSQ.rlbed' ts Foi[C'.Js:
SEG!tl(IOOJ t e 1/2 lr.:h lrm rvd t" M the rt)li-therly or ny of' !!vida
Street, Mid f!Z !nctt lf'1ll1 red baltl(l H IW 2Z
1
26 11, 8,31 feet ftl.i tho &OI.II:Iraut
' comer ol' uhf lot 651 '
7HOU, N na 14'S3w 1;
1
orosstng said lAtA 57 es, 81oek .(o, 11lcng tM
liM ol' tha<.l <K!f"taln tr't or Turl tonvaycd t;., lfu1: C'out; IM, Ill
In 71!3, Offlollll M\lo Ra>rd!! ot l!eJtAr Cnty, Te)lts, a'
dlee.snee or 344.13 to a 1/1 Indo lrtn nt: ,
1Hetc6, ' S [;, aiUIQ tl1l! north.!rly ll['la of said Lot lii, at a or
8,3\ putfi'I(J the nortlm?:!:: CQf"'Oal" or lot Mo bolng tfloll CM'\'11' Dr
l.ot: 17, at dlsta.nc;B of U1.92 rut pas$ I"'/ t1 oorthust comer or Lot U, tlll4
\he. tm"th11nt: ewnr qf ll-41d lot 10, N II a or 247.&2 feet to a
1/2 lra;:h Iron red sat I'IX"theut f;Clmar or :said lot 1a, m<l119 the
ll1U't'hi"Mt. llOfl'l;!l' of lot. 19J
TH.Eh'C, s oo H' SlQ 111; aloog tha llr.o betwen l,.ot 18 end lot 19,
S84,0!1 fellt toe 112 lw:tl ln:on rod we llO tha r.orther'ly of'tR.y llrn
Df' Merida StrMt, 1W ti'\Q 1>0I.Itl'l$( ton'l(lr or said t.ot 18, bllf/19 tM ll>thi'e$t;
CilfTloel' af lot 101
THa"", U 84" n '16" W, aloog tha north<irly rll#ft or way fiM ofi.!.lrf<fa St:.Nst, at a
of feet pa:r.slng tha swthntt or lot 1B, - b<llog tto11
11out:l-teMt; eormr of' lot n, at a of 139.11 feet p.'"Sll!ng tf sQIItlr.BMt. eomer
or 11, :nm bw!ng the :ioUI$,iat lJl.t 65, In .allo total dfstwoo of
Z-41.6t feet 1;<1 t,;h<l Nlllfr Uf' bf:!lltiHINol.of Mraln tr.,ct
1
an4 <:Cnt.Ginlflg Z.009
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'ANDioR:MOQl.FIC'ATJONAGBEEl\fEN'l'

.June !tOll

B.xrower: Jl'eltl.
'lk8 "Jilt ffwttt lillY be wtd!o>Jt D.1$ !<00
.
&"rnpt)tl:utM!huppt1-uof !tsWIOOJ!M@ dat. Jlld
d,WJ;Won P1
'W)'lr::dmolhltde:

6t M)' ihe&a tJr tc.:n!M lttedwiu, iWM It
itfl.l l;lptiW, kl
l!ll{l:ri:1)', wm Ql' ISJY ot.l\t
wp!d p!f:ldptl Mi!.flQO a t\1 u-:roN
klluw; Md lild u.pa!d Na/
lflts wt.((tt!f*!l 1M ms!l be: ll>i! !!S)'INt

.
Anymllur.<!bg
all \alt cbst_gu tJld/ llcr 111:$" tnwm-1 1o tbl,,

owlJ!i at M!Mff)'lhiHI"O paya&:e 0oa

lJMow!' mr.iuM ua w L>.d

.u pt>W!&d aU QW:r l=mt W oflha
Nof.ez .eel a!! ,('l.Cl(ty I>u-d.s or
'J'MU, Ya-olhe:--1111-cmW i!Mior 0\bq:
"" M""D"- 1 1 lOll Loin. if lAY, Wi:lln\ ks Ytrittt<>,. Mel 1<1 MJ
"'''<'"' ...,,.3 m .rc r hm::oa::ddtm.

Mt te!-.'.c.i to 1M
a f<l!

${{1.00 u.d ._mto.I'11111m
BOwct

A""'
2001 S-I.are&J
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p 6)U,t. Ad3ER4fgtfi:s
'rll!S WRn'1'!m r.OAN AGl\RtMW1'
li'fNAl. 'l!t;JW.QN TW: PARTIES' ANI)
AY' NOT liE CONTRAD!Cl'IID BY EVIDENCE OF
l'RIOR. CbNT)lMOORANEOlfS OR SUBSE(!tl!.'f'r ORAL
OF 711: PARTIES, 'I"m:RE AAE t/0
VNWRIT'l'EN OitAL AGRUblrN'r3 TJI&
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'DELTA. FRODUCE, 'L.P
(210) 226--9966
SECURITY
'
The undersigned Debtor, Owner of cOllateral, whether OM or more, and INTER.NATWNA.L fHUlK 0![ CONHERCR'
J30 B. TRAVIS SAN ANTONIO."TX ?8205 '
!hereinafter called enter lOto thls SecurfW and for onod 'end valuable cOnsldemtion, the rr.cClpt of wh!ch Is hereby
ackhowledged-;"and _agree as .. ._..,_., ' ... -;- .. ................. .. -:..:>,, ...... ...
SECTION 1: Croatlon of Security Interest: .
Debtor hereby grants to SaCUI'lad, Party a flref and exc!u.slve and securitY interest In all of the perronaJ of Debtor, wherever lOcatOd.-
antf ovmed or'henlaftiar licqutred; IMIUding' 'th8 'PfQp!lrty 1n' Of tl11' A'greefnent (the to Secofe"
payment and of thll Indebtedness' {daao'ribed In Section HI below). '
SECTION Ut tieserlptlon of
1. The. seoorlty Interest is gra('lted In th!l fofiowlng co!!ateral:
a. Oescdba the oollatera! and, as appllqa?te, cMck..boxes and provide: information ltxllcated beloW
... .. ............................... '
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D

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2
D
Trnl above on: {descn'be real estata; attech'addltlooat eMet, 'rt needed)
,.
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.: : ., :
The above the llke Oncluding on' aod gas) or aMounts w.HI be financed et the welt hea(.(pr mliie head 0alf:.
of ....... ....... .-...

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,:;iyf EXHIBIT
J .1/
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'
D
E
If bo1, b.2, otb,3 above Is this security agreement la to be fiktd for in the re&f estata rocord:e-. (The deserlptlOn of the
.real estate must.b; speolfla as \:o giVe OOMtnJntive-nolke.of . .' ..... : .,. .... ,, ... -" . : .... ..
0 The oaoior does not have an lnter8$t of record; the nama of a re'eordowner ot'the reallistat6 Je.
AU wbst!Mes and replacenwnts. for, accessfons, .attachments, other .additklns to, end tools, J>Mt!i, and equipment osOO tn
conne'ctl<>n wllh, the above property: and the lncr6l!Stl and the unborn young of animals poultry. '
..... , ..... .. :.....'._.__:.,_.,, .......... ::..,_, .......... ......
Alt proceeds, products, 6nd profits of- the aro lncludel:l. cOVerage of Products arid pfo-eaede for 'flnarlclng 'st'atemaRt .,..
purposes Is not to be construed as gMng Debtor ef!Y' additional rlghts \vith respect to the Co!latoml, and Debtor Is not authorized to
se!J, lease, or othetWbe transfer, furnish uhcfur contracts of menufaoture, procoss, or as-semble tha Collateral, except In
-accordance -whh thlt&ourlty Agreement. AllV additional eheete dG.sorlb!Rg the estate.,..or. othu
matters ere incorporate<! ln end made a Part of this Instrument.
2. C!asslfy the eol!ateral und-er one or more of the fotlowltlg Toxas Bvsiness And Commerce Code classifications:
Consumer Goods
Equipment lbVsfness vse)
D Farm Products
0
Uens OAGovemmant Assets ..
Sale$ Ot Payment ln_tanslbles a.nd Promlsliory Notea
.. ............. .. . ,. -.... '"'"""I'
And to the extent not listed abOve es orfginal conatersl ill pn>eeeds end products of tho loregolng.
XBC0004 03/0-i/O$

'
.,
Any term used In the Texas: Bu.."4nel!.!l And ComlllB;ce Code {the "Code") end not defined In this SeCurity has the mean!rrg given to the
ln. t!?e .... , . .. , ... , ...... . ... . :... .
3; D If this block is cheeked, thls h tt. purchase money seclllity Interest, anl Debtor wiU \.1$8 fund& to pti:rJJJl!!s.e qolla{!lral, or
.. SeWre(f Psrty maY dl&burS&'fUnd$ direct to thO sellor of the Collateral, and to''purchas& lilsuranct! On the Collateral. To the extent
oebtot'Clses tll(l ldan to purcha'Se Collateral, Debtor's repayment 'of the Loan shall a'ppty on a first-ln-firSt-,ol!f:" 'bas!s' so th8t the
...
C\'IUaterel, '
.4, If any of the Collateral ls awounts, glve tfleo location 'of the office. where the tBCQtd$ (;(ltl(1tt\lng them are kept (If other than Debtor's
etklresa.shown.abwe): '
5. "Comn'lerclal Tort Claims", a suboategory. of General lntanglblas, th& Debtor's claim for
against
Ill: INDEBTEDNESS , , '. . .
Thill ass!g'nment and grant Is made to Saeured !?arty to secufe 1he prompt and uncond'ltional payment of, ind the first tmd exclusive se.curity
,._. Secured Pluty tht!.fol!owifl9. "lndiHitedrr.ess"):
. ' ,' .
Any and atllndabtedness, l!ab!Utles and/or obUgatkms of or any of th& unders!gned If more than one, to Secured Party, jointly and/or
JIVBJ.illly, apd fn,any .capaqlty, \'lhethflr. j>orrower, gi.Jj'lrantor, or otherwls;e, now or owlng, cteated.Qnd/or end of
._. ....... . . . .. .. co!le[tlon cos-ts, irl'ld!tU: otUSJ __ ....
. owlrtg Dobtot, or any. of tOO If more tryan ono, ncludlng t not . m . to_
and further wlttjo'ut llrr}ltQt.Jon to:
A. 11nY arid Plfindebtednsu of:
DEUTA_PR9DUCE. L.P
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Of Indebtedness Js not solely of Debtor} or any of thorn If mo:e than OM, to A&slgnoe, jointly andfw and In anv capacity,
: whether as borrowar, guarantor, or otherwise, now or Mreafter wing, created and/or ar\.sfng, and regardless' of how evldono(l(( or
.. .. M"'''I- ., ...... .. '""-........ :. __ .. ,..; .....
Prom!sscry nOte dated Maran 24. 2006 m the arr.mjpt otQ_,soo,ooo.oo .
B.. any conim&rctalloan or lru:lebtednetls:
C, aft'( cre-dit .card or other COnsl!mer-type of loan;
0. zny 10 checking ot savings acCQunts (overdrz(ts, fees, oto,);
E. expenses lnourred In the protection or maintenance of the oo!tatt:iral eec.uting any of sueh llabUJtles, ioSns, 1intl obtfgatloM;
. . ... . . , .... , . . .... , ..
G. 'I"Y of credit andlor out of, or advanced to pay, letters of cr&d!t tr.'lnsactlons; .
H. any Jndebtetlnass, lloWeV1lt, eviOOJwed, whether by promiSsory note, bookkeeping antry, elactrork uansfar, drafts o.r otMr
Items, or by any other mMher or form; .
1. any other lndebtedocss of Debtor and/or of th(l. persons or entitles set forth In subparagraph A. ebove to any financial Institution
, ..,.,,.,.......,,,_.., ": ... Blirt'C$11ants'O:irplml.tlo:m jOII"Itll(bnU/dr as bJ, o" e, !Jaat a 1t01, 01 - ....
otherWise, nowor hereaft6f Owint!, created anQfor tegardlees of how evfdencsd or erls!ng:
J. any and atr exta!Wona, mod!fio:atlor\s, spbstitutlor.s.and/or t'ln&Wals of any of the above described Indebtedness;
K. eny and aU cost11 Incurred by Secured Party to obtain, preserve and i!nfotce this Security Agreffilent, 1he Indebtedness, and
maintain and preserve- the CoUoterel lnoludlng without limitation. ab taxes, assossments, attorneys' fees and !agel expenses, and
expenSes of sale; '
U the sale by beb101' and the purchBse by Seeured Party of Acooll!lts;
M. the sale by Debtor and the purohasa b)l Secured Patty of Chattel Paper;
_ the Olnd.tM Payqtent
0. the sale by D.ebtor and tho'purchase by Securod Patty of PromJsoory Nottis; t111d
P. any of the foregolng'that arises after th11 filing 'of a f)etitlon In bankruptcy by or against Dnbtor under the Bankruptcy Code, even If
tha.obH9atlons do not aQCfl.IEI boo11use of the 11utomatlc stay under Bankruptcy Code 362 or oth.ilrwl.se.
.... .... ,.. .. .. -- . ' . .... ... : .. .............. .... -.:.--.. -......... _ ........... __ ......... ___ ..
To the extant aDowed by taw, for purposes hereof It Is lnt(!nded that the lnde;btedness Include all !llasse11 of Indebtedness, whether evidenced
.bY notes, open acooums; overdrafts, or otherwise, end whether d!ract, 11\0irect or contingent. tegl!tdlass of class, fotm or pllrpOse atld
1nc11Jdlfl9 but not Umlted to, loans for comumer, agrlcultu:al, bl.lslnolls or pcli'OO{IOI pvrpo$0& .
The foragolog 'shall und(ll' no circumstances bo licnlt&d to the exlst&nce or non-existence bf ooUateral for S\leh lridebtadness, or the type of
.co!lstaral covered thereby, The Indebtedness does not lnolude amounts owed pursuant to a homestead equity loan.
and other commonloat!o'f\S'pertalrllog to this &hoi! be In wtlt!f\9 and shailbe eflec1Tvo only If do&verGd ln parson
or mailed U.S, cort\fle'd mail, return ric.eipt re<'jtH!Sted, pcis1&g.lpr&pald, to Secured Party Jf$ent to: ' .
and to 6ebtor'
.either lit th&.street address, the: first shown herelnaboV1l, or at the mal!ln!J address, If any, given by and/or for Deqtor et the beginning of th!a
llgfeement (or at sUGh other address es may have bean designated !Wilt recently In writing by Debtor to $eJ;:ured Party); proVided, however,
ectual notice to Debtor, however given or received, slla!l always be effective when given or received .. Except as otherwise reQuired by law,
,......,.....a.a.y, .Aoticc macfe. pUreuant .deeowd QlvM on .the. date..oLpotSPnal .....
, .. notice Is depoalted U.S. Mail, If rooclvGd by Secured Party,
SECTION IVi I'ERFECTION Of SECUAfnt !NTEI'l.ES'rS,
1. Ot FinBOOlng Statement.
!II . Debtor her<iby authortzos Sllourod P'otty to fRe. 'a Statement, an Amended Financing Staten1ent and a Financing
.. Statement (collectively referred to as the desoriblng Collateral.
-[II} Debtor hereby tiuthorlzes Secured Party to file a AnancJng Statement descrlblng any &gricultural nens Or Other ttatutory Uens. held by
....... <SetvrtidPerty. ' .. ,.. ...
6i1)'Seollt'Gd.Party sMll re.cntvo:prior to tOO Closfl\fl an official report from tho Secretary of State of eaJ;:h Conateral State, the Chief
ExacuUve OffJc(t State, and the Debtor State .{each' as OOHned below) {the sos Reports") JndiJ;:at!ng that Secured Party's IISJ;:Urity
Intere-st is prior to 11!1 other llllllrlty lnterel'ts or other lnteresu In t!W report. .
at Interest Is J!'rlor to
' .. a I other security lnteresu ((r other Interests reflocted In the roport,
2. Possesslon
. .
IBC0004 - 03/04/05
,Page 2 of 9
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OJ sha![.have possession of the Collateral, where otherwise provided ;;;' thl$ S.Scwity Agreafl"'(lflt or wMre Secured
Pill tr choose:suqmlfeorfts'seourlty h)tl!fest-by'JlOssessl.on onty;or In .addlti;on-to'1he-filing-of-a Floonclng-Stetement;--'-'-.--. .... .........
1!0 Where Co!lettlral Js in th6 of a third Debtor- Will jo!n with Secwad Party In notifying the third party of s&cured. Perty's
$-f)CUrlty end obtaining e Control Agrcomont from the thlrd patty that It Is l)oldlfl9 th& Colleteral tor the benefit of
. ,Wlii.990PE\tatll' .wJth .a.Co_!J-trQ\ i,:. ..... ... -
Sacuted Party yllth respect to consisting; of: , . .
{l} Accounts,
(i1) Investment Property,
lin! Letter-Of-Credit RJ.ghts, and
IM Electronic Chattel Paper.
4, Miirklng of Chitttel Paper. Debtor wl!l not anY a the to
Party lndloatlfl{l that Se<:ured Party has e security Interest In the Chattel Paper,
___ ---- ... ...... ""' --............... ... ...... , ........ ............ _ .... ........ . .--........... .......
SE?TI6N V: pebti's Beorescmtation, Wanant!!It..tM Agreements
A, General Represe'ntatlong tmd Wni'rant!ts
' ' , M. .... :-- ' ' .. .:. .. ..... ,_
111 .. Debtor haS full power end authority to lntO'th!s 'Asreiment; thlli SMw'lty .he9 bsen duly authorized,
executed and d:olivcr!XI by Dobtoi and cons-tltutee tM valid imd binding obllgatlon of Debtor enforceable In a<:cord'ance with Its
terms, No COM!!_nt of t[llrd patties, a Me, authoriiotlop or filing wtth any authority is required. to be obteined or
1n eonnec:tlon with the _Oe?very, end performince of th}s Security Agroomont .
(2) AU tnform"atlon supplied and statem-Snis made by Debtor In any finl!nolal, credit or ecoountlng o;. applloatlon for credit
prior to, .with or subs&qvMt to tho e.lUit-l.ition of thls'Seeuri_ty A9rej!roont are.end shall b9 true, con-00\-,
complete, va!kf, and gonLJ!ne. ' '
............... ... ,_,.,.,. _,_. - ... ,,. __ ... .,., ..... PI'
. (3) Pebtflr owni, or wnl use tho PfOCeads of ilflY,IoiiM by S&ured 'Paity to become the owner of the Collateral free fror} any &et-otf,
claim, restriotlon, Den, Interest nr thts security Interest and liens tot taxes not yet due,
(4) No t'!lnanc/M Statement the Collateral of its J?foeeflds 'Is file lrt snv nubile 'office and Debtor' wiU not P.ermlt anY
'' " .. .. OIDesto,;s me In 6S'"\ '.--
; :;;i. ""'V,. fllod ""'!'"" lhl s,.urlty """""'
. .; (6} O$btot shaD prOvide to Secured Party, Upon Party'a Ill, lnclud!f19 but not llrnlted to e balance

"
. : .. ' : . aneat,'Incoma statement, statement of cMh flow, end auc:h other financlallnformeVOn _as be ref!uested by Secured Party: [!I)
. an of the CQIIe.teral; OiO tax recalptG; llvl evidence of end (v} e.ny other Information required by Secuted Party In
'-: !: ','::; connection with ttte lr;?abtedne:s or !Jw Coltateral, ' " . ' , :
-: .::: _:_.:= -. (6} Debtor wl!l not use the Collateral permit t;he CoU111et!Jl. to be used ,ln violation of. any statute, brQinanoe or othllr laW or
d ............ ..........;n_.,...""MeAeist&J:Jt-ly-wW:'l .of eny .. polloy -of .. lnSU(SflCO ..Debtot-
., :_-.. \._ representatives, and employees to e'xamlne the at aU reasonable for.wcll purpo$0, Party may enter
;:. ' upon or lrito any Pfemlsas w!jen,t the Collateial'miy be,loeated without being guUty of, and/or hekl Hable tor, trespass,.l>abtor will
. [=
0
... furnlsh to Secured Party upon requeit 1111pertinent'1nfttrmation regarding the Collateral. ,
.
f1) The C0Hater8fshaO'fe'ffiaTn Jh 'beb\orts Or cOntioJ t5efifo't.srlin:t-lo&S'\u\lesil 'pattY 'has' :....
t- ::.:::. of tl'l1.Co!lateral, and be kept at Debtor's address aet forth above where- Secured Party'mey Inspect It at any time.,
e-xcept 1or fts temporary removal In ccnnectlon with Its ordl(lary' use or unt.ess Debtor Secured ferty In writing af'!_d Secured
{: Party consents In writing In 'ad>Jance of fts removal to anothor location. . .
;,.
:d ;::
. . '
. ._;,
:
.
_ ..
... : ,
. . ..
,. f.-: :
:
'"
Debtor shall pay F?rior to all taxes, charges, liens and assessmeflts against the Collateral, .and. upon Debtor's falure to
do so, SeCUred Pt.rty at lt5: option, m11y pey eny Of them afld shalt be tho sole tudge of the Jegalfty or varldlty thereof end ttm
, amount nect1$$8ry to dl$charge the eanw, Such pay(lient $lieU PM of 1M lndebted_nas's seoored by'ttUs Agreement
. and shall be pakl to Se-cured Perty'b_y p_e-bt<!r and without demand, Wlth thereon a! the maximum' 111te
...... ..... .... -. .. ............ .... . , .. ,._r" .......... -,-,......:..,--.:. ... -: -.-.-
(9) ,f-$azard lnsuranoe must be fumlst-.00: at aU 'for the fuO amount of. the lndOJhtedn&lls With respect to a!l (lncludlron
coverage for aH materials and eqtl!pment} against risks of Are, Windstorm, Hutrieenec {if the O:.llete:r<1ll9 writton.lOO. miles of th&
Gulf Coast), Han and Collal"e Oncluding ooat of d(lbtls removall and such otller as Secured Part>:r mav require, Including
s'hndefd "OO'WragG, -suC!i '!Miu7ehie 'pojfO!iS sh!b COOtU'trtiUc'!i ierms:b6 tn 't0irr4.lot 8. . .l-ahd 'lli 'Written-Hy" ......
companies seti$factory to Secuted Party. flOOd lnwranoe is also required In those geographlo ere&:> that &re subject to auoh
loos. The- polloy.shaU also contain a starnsard mortga.gee's endortement providing. for pa,ment of any-loss to Secured PartY. All
pobcleSo of Insurance shall provide for ten days w1ltten minimum eancalhrtlon notka to Secured Party.
coverage .must bo a copy of the origlnal polly end payabfe of Covera96 wul not
-
' . -Secured Party is avthOrlz&d to ect attorney-In-fact for- Debtor In obtaining, adjusting, settllng, end oarn:eH!iQ suph lnsuranw aM
.... ..
. . '
. '
,;
may be received by It, In payment of i.he Indebtedness so cured thereby, whothor suCh lndeb.tednes:s Is oorrentfy due of not. l?&Cunid
Palty reseryes thp right to purch;Jse single /.ntereet Insurance PI'Otect!On Pwty) end tho
premium for such Insurance to{J(Ither with at the loan Pfe-maturi'ly oonttact rate to the balanc'- of the )?an. lhts premlum Js
: ..
due upon demand, or may be paid In full tit any agreed ttm!l. Th11 single Interest premium Is WJitten by 8 company ,eutho(ized to
iM'Stetil Of teXes' filWfUI rates hot fhceii of ii'PPrOVW 6\' 1fiiSi6tEi'Boerd oflilsuranc'e:. : ," ' :
.!, &x:l.lf\ld PartY, In !ts sole discretion. and obligation on 'Party to do ;Q, may e.dvonce' el'ld !XIY on benalf for
:' . : ... .. the benofit of Debtor for coats necessary for the prot+'Jctlon anj:l prnseNatlon of the C1>nateral pnd other costs .that l)lay be
:: . -= ..:, .. ::.' ... .. :' approprlatn, lrf Secured Pariy's sole discretion. lnclvding bt.zt not nmlted ttt Insurance premlvms, ad Valorem and Jlttomey:s
.. , fees end legS! costs and expeMijs. Any Su_ms which may ba so peld by Seclli-&d Petty aod t9i i)ls'unmoa pr;mlvm!J(
aforesaid, Including; th$ costs, expenses, end_attomey's pa!d In any suit effebtlng sekl sheJl bear lnteros.t frwn the
.'. . ::.: .: :.:: aueh payments at the Joan oontra9t lnte,rest rate to'the u!Ul1atured prin'clp:al be!ende and ahon be 'pald by Debtor.'tCi
. Sacurod Party upon demand, and mAll be daamOO e part of the debt tmd recoverable as such ln eHespectS. Any sum to lie
:
. , .. _ipay, o/ .. a !Xi re_Qledles.creeted by, _prpvJd;ecf In ot emanating. frQ.Ot .
._i. =:+? .. ,:.: .. .. . . . " ......
, ..... ,., , , ::. . /. .... --, , . _,: . .. .... , . .: ..... - ,., .. . ... P
. .'. {11} Debtor shall no; lend, rent, lea$e or otharwlse of the Co!lataral or any lntar0$.i tharWn eVt!Wrh.$d In this ,
'"

\ I
8nd pay an Connected costs, to JlfOtilat the securitYIntarost under thlssacuritY A:Qreement .a9a!Mtthe r1ghts or lnteres!a
.. .. ,. . '"c"'thfra ContfnUation fMs, ahd fEi!s foi"
.. - .. - of tJdOd stllndlng'tfl}d"Oiherlnfotmation "requlred"bY SeCured f>atty, - " .... "" - '
! . : . .
Debtor. shall-at an times keep the Collateral and. separate' and distitlct from other property of Debtor and shall keep
.. ru:idOmpJeta:records.oUhe.Colle.tml.and..fts.prooeeda,.DQbtot,sb$11
(butnot llmltad.to) rant' storage ..cqsts, and of liPle.
tf41 If $o0Ut'ed PSrty should at any tfrrie be of tfie optriton that the has declln&d or may decline In veJu!l, or Ia otherviln
tnsuffiCieht to adequately secure the or shOuld Secured f'irtY deem ttaelf lnsecvro es to paytMnt of the lndebtedMeS,
then Secured Party may call for, addltional projXIrty to be p!edg_ed cove reO by this Ag(eement satl$fe.ctory Secured PartY:
{15) If any Collato(Ell or proCds.lnclude of third parties. to' Debtor, the transactions creating those obligations will conform In
en rospoets to e.pplklable state and fedarat qoosumar ctedlt laWs, :
... -. . .
.{1tl'f '.';ri'too'eWnl Debtof Ot'anyo'thef enjdJn 'Sec/Jttltl Party fi'Orl'l tllk.lrig shy tlctloo 111 connection with the
' Jndebti>dness or tM enforoemont of Soourcd Party's rights In tho CoUstereJ, Oobtor heriby agrees 'to give written nctlc9 to the
' of P&rtYi at the addres.s Of Seoi.Jred Party Set fotJ,h. In the first JJeragraph of this Security Agreement, or such
other l)(lrson.ot eddr$SS as Stlcured Party inay Jn to Debtor, prior-to seeking" aTV( such lrtjunetfve tOilet
.._,.,.......,:.- ... ,.. _..,_, p ........ ............ " "' ........ ,..._,_, .. ..... - .. ......... .. .. --.. --... ---....
1171 Debtor shall Indemnify and .hold Party from anQ sgafrn:t any and &11 claims, and llsbllhles growing oUt 'of or
re.wltlog from this (including, .without !lmitallon, enf<!rcementof thls Se-curity Agreement}, except claims,
!Ossea or tlab!Ut!es resulting from the gross negligence cir wll!rut misconduct of Secured Party. Debtor agrees, tspon dement$, to pay
to Secured f>ar\y the amount of MY Dnd en axpefloos, lno!ud!rrg, but not limited to, the teSs erxfdlobUrsemonta: pf he counsel end of
any experts end agents, vihlch SeoUled may ltlcur lrl with (a) the Pftlplirtltlcin, exEioutlon, delivery, flhng, recording
or admlnlstretiOn of this Security Agtesmel'!l or the obtalntng of tlltvlce from counsel with respe<:t to Its rights end remedies und&r
'this securitY Agreoment, (b) thtl cusi?dy, prosorvstloo, use Dr operation of, or the sale of, coll6otlon from, or other realization upon,
any of the Col!aterpj, {ol the exercise or enforcement of any ot'the.rlghts of Secured Party hereunder, {d) Jhe OOfenw by Secured
Pany of any'ln]unotion proceeding refated to tha /ndebtedneu ot the Col!ateflll, or (el tho tenure by Debtor to perform or obser.-e
., .. , '"(lflY'b1"ilii'pfWtslorW-hl!reof;ireb"tOf'lliDll'IUf1'0"PsY b1t'6tMt'l)h O'r dtl\er sU!OO due tO Secured PartY htlreunder'{s8v'e aild
except lnsurarn:e) that PIS not -paid wh&o duo ate nita per equal to the highest rate permitted by appUcabta law.
. . . . . ... . . .. .. . .
, US) As the pebtor,heraby assigns, pfedges end gratlts to $()corod PartY a uolltlty lntl!rest, e lien
...........
now In, or at f<nY time h"aaftet eorntnl! within, the custoay oi- .oonttol of Secured Party or any member Bank or branch Bank of
International Bancshares Corporation, 'whethe"c held In a genetal'or Special account ctlfeposlt, or for safokaoplng or otherwise, Eve!'(
SUCh seo\Jfity interest and right of Sitt-Qff rriey be exercised wltilout' Wmand or notice to Debtw. No security Interest Qr right of set-
off shan be deerried to he'/e lieen wefvedby any eot or OQI)duot on tha part of SaclJI'e<t Party, or any fa!lure to exercise sooh right of
aet-off or to !Jflforoe !pUch ucurlty lntcreei', Or by any delay ,lnso doing. Every tight of set-Ofl and soourity 00r1tlnue In
fii!J 1orce and effect until wch right of set-off or seCurlfy Interest Is speclflealJY walwd or released by an Instrument ln. writing
executed by &!cured Patty. The fo.regoing Is addition to of arr.; right$' of &<It-off allowed by lelw.
(19) Ciebtor shllll assist Secured !'ilrty ln:cowptyb;lg wtth thtl Federal AsSignment of Claims Act taild anY :;uceessor statutes) and
... ........ 'JaW$',61iiliibie'"SeoOrea :A:ct.aM oth!h'VIfsii''C"omply wl!tf ocbtor shan pre'serVe-
the liability of all nCcOunt .debtors, obligors, end _secornlary whOse ObBgatlons aro part'of the q<>Dateral. oebtor a hell notify
the Secured PartY of any change ocC1rln9 In or to tho'Colletorat, or Sn any faot or clr1.!rmtan<::aa_ warranted or represented by
Debtor In "this egreament or furnlshe,d to Secuted'Party, Or H any EvJnt of Dafauli occurs
.._......... ___ ... .. -w .. _,,' oo 0 ,., 0'> ..... ..... ,._, ... ,. ..... -H .. , __ ,_._._._......., ............... ,,..
(20) Debtor will oot al!owtne Collateral to btl lifflxoct to eetute, OXO\lpt goodS' Tdontlflad horoln es fixtures.
' . . . .. . . ..
(21) All extEinded or filM wed oote(e) wllf M considere"d executed on thq if ate of the original notels).
(221 Debtoi- shall comply whh all envlronmenta! laws and regulatiOns appllc&blo to the Collaterel and the premises In which tOO Cotlntersl
Is JOoateO and shan notify Secured Party, upOn receipt of'any notice or other Information .es to any envtroJT19nta! hazards or violation
Of laws. Secoted Party may Inspect ell prenilies In whk:h the Collateral Is lOcated afld the Collateral ns to' Its and their
with envlrot'lfl'l<lntal lew, tlebtor lndemnlfilis end holds harmless $(;cUred P-arty tot err-; brouoh of the foregoing nnd for ell
tosses, costs, fines, damages, lnc[udlng o6sts and attorney's fees, !riCUfled by Si!bured Party to defend Itself, or to protoot or
'iii'e'SeNe'tfiJ'Coll<lte'ial 'Bga!Mt i'lh\oilt)r\ll'lnfiU.lrM:II;'hM.ardstfTn&s:"aiid ti(liet f.:!lllUrtg to tlie-coll<1tera1:
(23). WJthout providing Seoured Party Wtth at least thirty (301 days prior written Mtioe of Debtor's Intention to do sO, Debtor, untll the
Jndebtedoeu b paid tn ful, agrees that ft Will not: - -
;... ....... ,.._ ..... ... ,,.. __ .. . .:............ . . .. ........... --: --- ..... . ---... ... ...
g, In OM ttense:ct!on oori&e of related transaction!, merge Into or CQMolldato with any other entity, sell all or substantlally ell
of lta or In any way }!opardlze !ls'corporateextstence,
b. change tha st'8te of Its Incorporation, '
a. change its corporafe -.lame,
:;
its Chief Executive CHloe;

f. file a UCC-1 Termination form.
''.!-
l! , _. , .. __ , , -:.,
{26) Seo"ttre.d Party has no dutv, to coflaoninY aocruiot(O!' the or !O preserve any rfghtS rolatlng to Collateral.
B._ RepresootatiotiS and
.. - . '' ,, .
{1) . If the Collatei'ellhc!Udas Inventory:
. Debtor wllllmrhedletely'notlfy SeCured PartY of the dlsposffion of ehy Inventory and at DebtOI'B &XJX!MO wJn either assign to
Secured Party a ffrst-pllorlfy security lntefest In any rewltlng account, chael p.11per, or lMtniment (lt to Sscvred Perty
oesh the omoUnt of the sale prlOfl, Debtor wilt nOt sell, Ieese: ot otherwise Q1$posa of any Conateral except lnthe ordinary
coUrSe of b1J$1nesa without the prior wdtten consent of SecUfed PartY.
!b! UnUI dofau.'t DebtOr may In the ordinary course of buslneas, sell, lease or 'tumlsh under contract of service any of the Inventory
nqrma.Uy tw:ld by Debtor for socii provided, howevet, that sUCh use ol the Jnvffitory shall net be !nconslstefl\ with eny
'' .... ... 'o"fffef'ptoVis1obs'bt thl$ Se'(;utlt)t'1t(l!!!em-e:!\t'Ot'W1th tM"ferrrfll' bf'coodltlom ot eny !kf!!Cfe.ti t>f li1swance lheteon. A M!ll'ln' thh
ordinary course of business dolls not lhofvd(l a transfer in partial or Wtal satlsfeotfon of a debt
. . . . , .
{2) tf tho Collatenillll$lludes fiCcoonts:
_. ... ._.,.._ ..... ... Eaph. ao,countJn.the. enfor.cea:ble,_.llgMlon _
any lnstrume:nt or chattel paper, .
ibl The offlc& where Dabtor keepshs rocords contlllm!ng accounts, If eny,ls the address of bebtor ut forth at the beginning of
this Secwity Agfeimilnt, ' '
'
(3) If the Collateral Inc Judas lostruments, paper or docurnAntA:
(a) By dellverlng e COP'( of this-Security Alireement tO the broker, sel!(lr,- or other person In possession of Collateral that Ia chattel
IBC0004 - OJ/04/05
Page 4 of 9
. .. _ ....
':: J .,
: ... -... '
... ":
...
,.
.... , . , ... . ........ :: .:: .. ' -::-- ............... _ ....... ________ _
.. :. ... ', :; .---'""---::---"-------............. - .. .... - ..
............ :.;,., ..
, .......
.:.' .:. ;l
' .. paper or document, Security Party will that person lnJ:he Col!atere!. Delivery of.the
::: . ; ... , . ,. ' .' .. =. t;: '_-_:: copy.. of -the.Secur.ity AgroomMt Will-.alsd' eonslitltt&- Debt0f'4 deliver -to SeCUl&d P.<lrty. oettlflcetea.JH. other.,
...
".' .
.
. ..
: }'
.. l' .
't c

. evidence of the Co!!etetal u soon will to SeC\ked Party e!! (:h!ltt&l peper.and
documents that ere Collateral In Oabtor'JI that ocqulred, Debtor wm dellver It to Secured.
Party ,lmmedlately following and ,either endorse It to Secured. Panye jlrder ()( give See1.1red Party epproprlat6
axecvtod-POWe(S. If ai)Y lnstruments,,ehattel paper, money 0( mon.let, or documenta are, at Sfri time In the
Collateral, whathllr as proceo-ds pr <lthorwJ.so, ,Ocbtor wm proniptly_ deliver the same to Secured Pany upoq tM recclpt thereof
by Debtor, and In any avant upon demand therMora by Saourad Party. If neceesary, all Collateral will elthar be
rmdol'l!ed to Secui'Od Party's order or accomp.erded by appropriate exeooted powers.
(b} By means satisfactory to Secvred f'artY, Debtor has perfected or WIII.perfoot a ae.cutlty lnter!St In goods c<iv!>red by ch<;tteJ
.
. lt any, In Cotlateral. . . , . , '
_.,._...,.,......, ... .........,... .--.-.-... - ................... .. .... ._., ............... ........ ,. .. "'-'"'"+"'"' ........ ....... --.............
;, ' 14}. If the CoRatoral lncfudes,proporty covered by a Certlflcat& of It any certificate of title or similar do-cumont Is. at.any tlmeand
;.--.!.; purwan$ to the Jaws of any jurlsd!o.tlon, Issued or oiJtstandlng with respeet to the Collateral or any part thereof, Debtor will
:. ' !'. :: : adviso Secuted Party thoreof, aM Debtor wm promPtly cause the Interest of Seou/'Eid Party to be properly noted thsreoil, afld If lillY
:.-. ':" . ' : ,., ,.; certlUcate of title ot .similar. document Is ..so issued ot outstendlng,at.the.. time .tbta.SScurlty; Agreement Is .exat::ut8d of .

.{-' .: ., . . c . :::Vr .. .. :;;:
/} : r:( : of good '' W<ot<d ocloW Jo tho ''"" ood to
..
:. : . : :.{ .. : (1) The feihrre bY Debtor or &Iff ot)ler party to pay when dve anY of.tM lrnk:btedness elther principal or Interest, or any other sum
.. :: ? : 1-!ndar the terms of sny Instrument evidencing Jhe lndebtednon.. . , .
? '! . . . .. .. . ' . '' . . . . .
,:.; ' . J2) Debtor In- t puootual .any of .the. p;rovl$1ons ,Of l{lfll.r@tt.to ...\!J Wii- ,, .
...... , {i &!c!ifityAgre!ment.
.. . . :-,:r .. ;. (3) Any warranty, representation, or atateiTMlnt CMtelmxi 1n thls SectHitv Agreement or m'ed; or tumlshed to SonUttld Party by or on
.. .:.'_i:;! . of Debtor or any otlwr,person nr party In whh tNs Secllllty Agreement Of ,to lndi.IOO secvred Party to make the lolina
, ,. _ . c.: .::: ::; . i {desonl>od In Section 110 proves to have baen false ln any cespect when me.de or fumlshf!d.
' :::
161
commancement of any proococlf.ng lltfur bankruptcy or ln.solveocy laws by or egeinst Debtor or tmy guarantor, -$utelY. or endorser
for Debtor; or tho occummce of DQ'i of such events described tn thl$ pert (5} as to any pe,oon or party nabft;; fot the payment of the
, ......... .. , ..... .....
Any statement of the c-ondition of Ot any maker, suretY or endorser 'or any of the. pr'Oves'fO
be-false. ' " ' '
{7) , The In the judgment of SeCUJad' PartY, unsatisfactory or In cha;aoter or
(B) Any {I'Uarantor, surety ot endorurlllldor or with respaot to dafaulta In any Qbll{Jatfon or Habll!ty to Secured
Party.
..
.,_, .. ,.. ,. ' ' : .. .. f.: .. ' . __ PARTY'S RIGHTS AND REMEDIES, .. . . .; ..... ,. , ...
:-? ...
1
;'; ' ;' .. :,(.;;' ; ..;
111
:::: ::: ::: ::::::: :7 bforn "' on EV'"t of O.fowu
..-.:: .. i... . . . . l . . . . . .. ' . . : ....... .
-': .-_:;=.. } '.: . : :f):,,. possssslon'fS"enrDebror;-ten!POfllrily--or-otherwifJY.:"' ...... -:-----
. ' . . . . . .
' : .. : ". . :. 1:, {3) Secured Party may take control of eny funds. generated by the eoilatoro/, auch as refunds from and proceeds pf Insurance, and reduce
;:::- ., .. c : .. , , , . , eccordlngfy or parm!t. to .. ,., oro.-
i :::-1.:..: (4} Se'cured Part.; may requellt. Debtor from tlple to tlmo, II} Secured Party'S t9 te'ke efw eJ<tJOn OOd to execute lnstr,urritfi't
:::" .. whk:h Secured Party may deem or aclvtsabla'to acoompns.h the ji1JrpOseS of'thls Security Agi"eer'nerit ii\Ckid1ng,'wftho1it'
:;:.;:-;: : .':r;. '; nmltation, Ia) to

demend, collect, aua tor, rncovar; compound, reeelvO" ,9ive aC:qulttimca and reca!pt6'fpr mbhln.s'tiue Mtt'to
; , '> _;:;;:::::. become ..dUe- unoa'r .or.ln-respoot of -$ny (9) to receive, endn.rse and eollootanY-<Itafts Or otherlnstrumants)documants and---' ,.._.
. papar In coooaotlon with the precedlng actfo1u; {cl to fl!e any clelm11 or tBke any action or lnstltvte any proceedings whlc!'l
::. :.t .:=j Scctxod f>any {nay deem neceuary or deslreblq eo!fectipn of any of. the Collet ora! or to enfprce Its rig_hts with to
.:. ' ,:f , . any of the Collateral, and (dJ tO complete &nd sign on behalf of Deb tot on-o or more ffnane!ng statements Pertaining to thQ Co&teral
. : :::: . , . .... ....
.-j
:]

. : ... 151 ..
...
bebtor't agent" is; with tm and Will wrvlve any disatillity of Debtor.
- ' . . . -
.
..

wfi9le. <!nd IT)

part from time to time, ano In any wen OBt rilrtV sM oe ful y dlscnarged uom a!l mpons1o ur wltn respect to the Collateral
sq assJ.Q.n!1 shd the &SSigr"18$ l!lha11 be entitled to all of tlie tights, privlfagae and remedies granted In thls Security Agreement t"li Securod
.,
Part)' to thll'extant tha 'ISanie are assigned, and Debtor win assert no claim or tlefernes he' may hiwe against Seoured Petty agillnst tM
uslgMe, eXC!!Pt' 1hose granted In this Security Agreern,ent. ln. addition, Debtor waives' rukl wm not assert agalnst any c!elms, defenses

-sec
11
red Patty may enter upon Debtor's premlsos at any reasonable time to Inspect the arnf l?ebtof'8 IX!oJo:e and recorda
psrtelning to tho oonetO!'al, ettd Debtor shall Secured Party In making any SUCh '
161
(n Se<:urad Patty may nOtify the ecoout\t debtOrs ot obligors of any aocovnts, chattel pape.r, negotlabte ln'stnur;,nts or other evidence of
Indebtedness Debtor to s:ct:ured f>artY ea pr0ooed$'to Pay Secured Party Seoufed'PBity- aC0Unt
debtOrs ditectly to verify InformatiOn furnished by DebtOr.
' . . . . . .
. P{lrt'i 9r pebtOr ps f;ollateral.
, ' J ; ' i . . . : . . . - . . ' ...
(9) Secured Part{ may designate, from time to tlma, a percentage of the Collateral tis the loon valUe arn:f reqWe Debtot to maintain
0
the a,t or b$klw such , . ,
....
.stiaU not have any duty to presenffor -convotslon any ln$trvment of COHeteielln Its posseSsion unless It shall have received from Debtor
detaUed wrftteli Instruction! to that effect at a time roaronably far In advance of the final converslon date to make eoch cOnversion
possJbte.
The foregoing rights end powenn)f SocUfed Petty will be In addition to, $nd not tt !!rilltatioo Upon; any rights and powers Of Secllftld
.given by lew, In thla Security Agreement, or otherwise,
(11) 'Secwod Party has no ob!loatlon to attempt to aetlaty ths Obllgetlons by coRactlog ttwin from ecny other !!able for them and
.. s.?Cl.!f.! !Ill w,\thoutf ...
affeotln9 Party's r%}ht& agaJMt Deotot welvaa any uant It may 1.1'1-Va to requife Party to pVI'Sve SI}Y th rd
for of the Obl!9etlol\s.
1121 Sa<:wed Party may comply wlth any applicable atata or fedarellaw roquSrementa In connection with a disposition' of the Collateral and

{13}
(16}
If Secured Party ao1fs any of-the Collateral upon oredlt, De.btor will becradfted oflly with actually made by the purchaser;
rccetved by SacfJ(ed Party and apPlied to the of the Purchasor. In the event the .Purchaser falls to pay for the conateret,
Secured Pa.rty resell and Debtor shall be wfth the of the sale. '
Secured Party have 1\0 obligation to mllf&hall any assets In favor of Debtor, or against In of:
. 'the Note,
..
1
,. JIQ..;.!l.'lV ... ;.\'<,. ... , ....... : .. - ... ........ .
(ilij any oth(l( obHgetlon owed to Secure a r-arty oy vebtor or any other perSQil,
. .. .. . . . . .. . . .
1161 'Thle' Securlty Agreement eh&li b!M and sheU Inure to th& beOeflt of the heirs. le9atees, executors, administrators, suocasS"Ors end
assigns of S&eured Party ond shall bind ellpersons who bacoma bound as a debtor-to this Security Agreement.
--- .. '"'"' ,.,, ,,,..,....,._,.._. ..... .___.,_w.__ _____ .._.......__. ............,.,.
.. {171 socurod Party does. not consent to any es-signmant by Debtor eXCJopt es &xpressly In this S&eutlty .
: .. B. Remedies In Event of Default
During the oxtstence of !r'rf Event of Default, or In the 'event Seowed Party deerne 1rweUI'e In the of the Indebtedness, &!cured
Party may declare the unjlald prlnctpal vnd unpaid end I!!;W\led lnter>nt of tha lndebtedooss lmrriediattlly due In whole or part,. enforce the
Indebtedness, and/ot exercls(l ally ri{Jhfs end remedies grahtfld by the raxas Business arxl Commercfal Co<k or by this SeCurity Agr.eement,
Including the' follovtlng:
., ..... '(1}. t .. recfub:ODabi:Or 'to 'datrver tO' SeCUrll(fPSrty'8d'0'66XnMreOOrd'S teiitflng to' the .. cotrate!lll; .
. ..... .
: 12h. requtre Deb tot to assembia l;ha Collateral end make It avelfable to Secured Party st a place rwsooebly oonyaniont to both Pllrtlea;
....-"
of the pe'ace and wlll not be guiltY of, alld/01' I'Mtld liable for, ttespass; '
.
seU, 'Jea$8, or dlspose of any of the oooortf Wlth the tfghts, rerr}Bdias, end tfuties of a SectKed Party under
Chapters .2 Btltf 9 of tOO Texas Business And Commerce Code e.ftet giving notice required by those chapters; unless the CoUeterel
threatens to decnne repkl!y.ln V6luo, l$ perishabJe, or would typic .illy be 'ookl oh a reco-gn!zed market; Secured Party wn! give Dab tot
reasonable notlca of ahy pl,lbfkl sale of the Collateral or of a time after which It may bv otherwise disposed of without further ttotlc:e to
Debtor.; In thtll event, notlte will be deemed If ft ts mailed, postago Pfi!PIIId, tti Debtor at the address specified In this
_ agreement pt laast ten dayS befonnny p;ubiiC sale Of .ten twfore the tlffie when the Collateral ma'y be otl)erwlse disposed of
.
.....
161
.: .wJtl;IQ,0 not!.Ce to modl{y an_Y and fotttJ In .
Old) and and agrees thit tuch a disclaimer andJor modification will not render tile safe coJllmerclefu' unreasonable
avrrendar any hlsurance pollclea coveting the- Collateral eod recelva the unearned premium;
!_.;...,...(t'l{_, npYiny 'PfO eellds tM-ebtletEi(el after--default l1l the mariner -sPecified .Jn-Ctwpter Bof 4-nd ... .._. - .
. Cominerce Code, Including paytnent of Secured,Party's reasonable attorney's to11s and court .
.{7f
IBl
If d!sp;OsJtlon-of lha Collateral leaves the lnd(!btcdn$$e colteot the deficiency from &WI!able partie's,' Expeiis-es'of retakln'g,
holding, PrB{}IIrlng for sale, se.mnQ or the ike shaD'Include Secured Party's reasonable attorneY's fees and !&gal costs and/or exJ)Einse.s,
end P.ebtor to pay such costs, fees , t.Mreon at t,he rete el_lowed by eppUci!ble
Sec{ued Party may retain ell or part of 1he Collateral in full end/or partl<iJ satlsfaotlon of the' indebtedness to SeCtion 9.620 of
tha Texas B\JS!ness And Code; '
'' ..... W1iNOai defuan<rornotJOO"\it'atiYkli:d; &p;;fOptfStii' i:inif'ai>P!Y:toWard thO piiffia'iii of any' Suffis than' owing
SOcvred Party and In such-order of application as the Secured Party may from tJma to elect,eny property, balaooes, credits,'
deposits, accounts ormontes cf D&btor tor eny purpose Is In the posseSsion Or control cif the SectJTad PartY or any member Bank,
branch Bank or other depository lnstltutlon Of International Corporation; ' . _ : ,
........,_, __ ., ____ ,,_.,_ J-"- . ' > "t .... .. ..
t10l Secured may teinedy any default without tiKI dafilult remotfled arn:f may waive any defeultwltlwut walviJis any other
prl or default.
; i '.
SECTION VIII: AODmDNAl. AQRa:MENTS.
::tBCOOO-l. - 03/0l/05
..
....... _ .. ................. ....... ........... - . .,- ... ., ... ....... _, .... ..
[1) AU aod other eommunloatlons to Secur4d PartY Mreunder .or in OOMectlon horewlth shell be deemed to have been {liven whe.n
reeelved by Secured Party In writing at the address first &h<Jwn hetelnabove. My ootlce cr demand or other oommurUcetlon to Ot'!bt9r
hereunder Of In connection herewith may 0$ given and, shaU conoiiJSively be deemed .and corw.kfered to- beon glvan end receiVed
121
.,. :
{5}
.. upon the posit them of .In writing In the United Sta!es Mall, duly stal}lped and addressed to Debtor either at the street add\ass. the
' first shoWn MrelnSOOVa: Oi 'St' thB'friilmhg B.dd"rSsi; If <in\i, 'gtvliO. bY .Biitl/of'-f0(t5e1it&' St l'fitll tordt wen
othtlr eddr8$$ as may have boon designated most recently tn wlitlng by D11btot to Secured Partyl; provided, however, actual notice to
Debtor, given or tecelved, flways 00 effective when given. or fec1!lved.
A copy of this Security Agraemant or any flnsnclng statemen't CXJVoring the Collateral .Is sufflck!nt and may b9 filed as e
CMCemfng th\$ seClJrity Interest be (lbtplned at th& ofseoured Perty above.
This Agreement,rilaY only be modlfled 'Or Jimlte<l" by en llgreemen't !11
Jl:tlr -tmtl<or aHected by.any .of
tile nor re!aases of any of the Collateral shan a !foot tho validity of this s.ooudty lntemt with reference to any thlrd party. .
AddltJonelly. fqrecjosure of this security lnt61'est by lawsuit dot!.$ not Iimlt Secllfed Perty'e remedies, Including the right tO; sell t}KI
Cofieterlil tinder the terms. of this Agreemant. $(!cured Party ahaD havfl' the. rlglrt to rAmedlas at the earM or
different times and no mme.dy shell ba a defense to ..any. other. Secured Party shan have aU rights e.nd remed!e$ granted by Jew Or
..... ,,., .. " .

1
' ,, ....... .
Soaured Party may rerm;dy any default without ft. NO "delay by Secured ln Its rights Of pacrt!alty exe.rclstn9
rights or remedies shell waive further exerc1u of those remedte$ or. tlghttr. The tothn('t o{ Secured Party to EIX!l!CISG MY w .
rights does I"IOt wolvo subsoquont oxorctsc of those remedies or rights. Any waiver by Secuced P(!rty of any default shah Mt y.tafva any .
funhef dt\f;JV!t, S8CUred Partv may remedy any default without walviO!J ft. Sooured Party'a waiver of eny right In this Sacurtty
Agreerrient or any default ls blrtdlng only If in writing. . . ; ' . ,
. .'.::K.: (6} Debt?r and Secvred P.arty Intend that Indebtedness shaH bs In strict compliance with applloabJe t.l$0fY !awe. If at any time Interest
.. : :: .: ::. :. .. ;; :::: "'":';.::: . .::, ... .or
.. transaotl?n wquld be usurious under appl!cab.Je law, then regardless of the proviskins of this Agreement or any other
: ..::.::::::..:=:: .. ..:::,; .:-.: documents or .Instruments evldenoing, securlng.or otherwise' exacvted In oonneotlon with any Indebtedness so cured by this Securi).y
(::- . : :.i: AgrOOment cir any. action or eveilt .QMludlng, wjthout Hmltatlon, prepayment of principal under the Note or' ooColeratJon of maturity bY
.. :.=:;: Sacufad Party) whlch may occur with respect to the Note, It I& agreed that ell St,Jms determined to 00 us.urloo's $hall be lromadlately
; crOi:lltad bY seeuroo J>liitV 'tO Dal'itoi' iib' a'PaYmiflt -orpifncfp.U"uhllir \he mra "Or1f '\fie'filotlr'haS'ettea(ly'tiedl'i
'refunded to All whlch consUMes Interest eppllceble Jew ln connection with lllJY lndnbtedoo &oovred by
:::: :.. .. : this SecuritY $hall ba amortized, prorated, allocated, end spread o.ver tha full period of tJrno any in<fobtednCM Js qwed by
Secured Petty may perform any ob!!Qatlon whloh Debtor falls to Debtor agrees on to ,O"Jmburao Party
lmmec:lletGly for any sums so paid by SeoUled Party, ltlcludlng attorneys' fees end otl""!At Jagel expGnses, lnter8$t Ol} those .sums
from the dates of payment at the r.ite stated In the Note for 1"1'!3tvrcd, amOunts. Any.eum to be reimbursed eh11U be by
tbls Sacurlty..Agreemeot .. tSea.Sec.tlon.nt. .. _,... __ , ... .. ..._ .......... ... .................... __._,.
(8} This Agnl!.lmetlt Js being execvted and.de.!lvered !!n<Hlllnten?ed to be In tho State of lo)IM ond.$halt be coMtrued
and enforced" 1rt wttp the laws of the State of Texas, except to the extent thet tho Code provides for tha application of the
taw of the Dab tor States, Y.Jhan the context requires, noun&-.arnt pronouns Include the plurel .. Thf rights of ScoUfe;d Party
.under thls -el:yrltY ihal!"lnU<$ to'"""tM "bafleflt' Of fts "suoCessohi 'zm{f8sSiiJiihiAAV !isSrgMier\tOf J)art bf tl18'1nVe15te"dne,5S.efia
1
'"
dafivery by Secured Party of any part of the CollaterDI will. fully discharge Secured Pelt)' ftom any atld ell responslblllty for that portiOn '
. of the Collateral, E>ebtor'e Indebtedness undef thls Security Agreement .man bind Debter'& porsotlSI -reprasontiltlvr, slJ"COOssors !!l-td
assigns. If !!ltn$:tre 1hun one, all their repr11-$Gntatlvos, we.rten.tle$ and agreement$ are joint end seVeral. If nny part of tilts
Seourity Agreement I$. ur.onfou:eablfl, the unenforceabllttY of suoh provision wlll not atfeat the enforce.abDJty of any ottwr
.- here9.f end ell other provisions will constitute valid provisions.
.,, .. > ;:;:;:}. : SECTION IX< ARBITRATION THE PARTIES FURTHER AGREE AS FOLtOWSo
.. :.' .:;. . ;,.. : :.: : . ............._,r.;r-"ANY'ANP ALL
,\'" : .. , COMMERCIAL ARBITRATION RULES o;:. THE AMERICAN ARBITMTION ASSPCIATION IN EFFECT AT THE TIME OF ,FILING, ,THE
. , , :. ; . , , (: ;::...
. ::; . .. '. ,, . ' : ! ! :::=> .., :: , : . ARBITRATORS ASSOCIA'H:Il :VJfl'H THE!. AM AIDAN ARBtTAATtON ,A.SSOQI_ImON "AN[? J}f.L-eTED'IN ACCOROA-NCEWR"trtj.l! -GOMMEflCIAL
. , , ,:. ARBITf\ATIOfl RULES OF THE AMERICAN ARBITRATION ASSOCIATION, FAILURE OF ANY ARBITRATOR DISCLOSS Alt. FACTS WHICH
. . . . ' .. MlaHT TO AN OBSERV..ER CREATE flo REASONABLE IMJ>RESSION OF THE ARBITRATOR:s AND/O,R MA.TEfl}AL
." .. :1-:' ' .. ';;.:;!{:' ERRORS OF LAW SHAtl BE GROUND$ liN A_ObiTI9N TO All QTHERSJ FOR YACATUR OF Af.i AWJ,I.RD TO.'TJll$"
:: g: .
.. . :: .;: :; , .. . l' ':::. SPECIFY THE FACTUAL AND LEGAL MSES FOR THE AWARD. UPON THE RE<l.UEST OF ANY PARTY, THE!: AWARD SHALL INCLUDE
.. ('. . . :::-.j( ,..,_....., 0!1 f'(?:CT ArJD . ,. ........
.:.:.:./;:. : .:: .. tt?l ARBITJlABLE DISPUTes IN.C.ll!DE A('!o.ALL Oij Cf..t'Jr.w 'nte .PA"TJES ,or' iYPe oR
::.:.,: . !.. :.; ..... .' ... ; "':-i .' .; INCU)OING LIMITATION, ANY Ct.WA ARIS1NG OUT OF OR .TO T{US AGREEMENT, FAS'f, FRSENT
. ',._,;.-: .... ;:_-,.:: .:.::f .. ' AND!On f'!JTURE CREDIT FACILITIES AND!OR AGREEMENTS INVOL.VING THE PARTIES, AflY TRANSACTIONS BETWEEN OR INVOLVING THE
.. ;.::t.-.: ;,. _.;_:",' ,:; -:, .... :-:{fl. :;; .. PARnes, AND!OR ANY ASPEC'f OF ANY PASTOR PRi;SENl' hE.LATJONSHJP THE )>AAllES, WHETHER

. . ;:,::.;:,.-. ,.: . . :: .:' .::.. ATTORNaY'S OR THE WRITTEN REQUEST OF ANY PARTY, 111 PRIOR. TO THE DISSEMINATU)N OF A LIST Of f>OTENTIAL
.. ARBITRATORS. "THE AMERICAN ARBITRATION ASSOCiATION SHALL CONDUCT AN 1r _PJffiSON APMINISTRATIVf! CONFER.ENCF ViJTH THE
.. :. ' ::_.:. . , :!.". PARTIES AND THEir, ATTORNEYS FOR THE FOLLOWING PURPOSES AND fOR ADDITIONAL PURPOSES AS :rHE PARTIES OR THE
.:;_ . .;."j : .,y :. ': .. I; 1 :. .AMERICAN AFIBITRATIONASSOCIATJON MAY llEEM APPROPRIATE. (A} TOOln'AlN ..
. . .'".::: .. ; MAGNinJDE OJ: lHii OISl>UTE AND THE ANTJciPATEO LENGTH OF fli!ARINGS AND..SCHEJ;>UlJNG; IB) TO DISCUSS THE VIEW OF .THE
. :::: .. PARTIES ABOUT ANY TECHNICAl ANO/OR pTHER SPECIAL QUALIFICATIONS OF THE ARBITRATORS; AND (CI_TO WHEl'-HI:R
: .. MEDIAT!Ofi OR .OTH_I!R MIITHO.PS. QF qJSPUTE RESOLUTION BaAPPRQPRIJ:\TE,.AND !21Ai.t>ROMP.ll.Y AS.rRAa:nCABLE AF.J.ER,IHE ..
; ::.:;:_: . ;,:. SELECTION OF THE ARBITRAJOR$, A PRELIMIN-!<RY HI;AR[Np SH,I\1.1. Hat> .AMQNG :WE_ PARTI.l;S, THEil;!. .ATJ.ORNEYS ANP,JJl:.E. .,.
.
1
.1": ARBITRATORS; WITH THE AGREEMENT OF THE ARBITRATORS AND THE .HSARI!'lQ MA'(, _ ,
.E:' .. :'), . .; : : :.:., :-,. - CA0."RAlHER THAN IN. PffiS"ON. AT niE PRE.t.IMIW..RY HEAfllNG THE MA'ttEHS T.HAT MAY BE CONSIDERED
.. ':_' .. ;' :; .:.>t:-/.:" SHAlliNCLUbE, WITHOUT UMITATION. A PREHEAFIING SCHEDUliNG ORDER ADDRESSING fA} EACH PARTY'S DUl'Y TO SUBMR' A
. .i:::. ::: :;:: .. .... .. - - .. ... 9,,_, ....... , .,. ....... ___ _..,. ........... , ..
..

........ .......... - ............ :... .... ........ :.,.,, .. , .....
.. ... ____ ........
,.,
.
.. , . .D.ETAllED STATEMEtaOF CLAIMS .. DEFENSES, A STATEMENt .OF THt iSSues ASSERUD BY EACHPART'Y AND ANY
Al!.THDRfTI.ES THE MAY WJS!t.TO BRING TO THE ATTENTION Of THE ARBITRA"fORS: IB} RESPO!;>!SES ANDJORRE?l..JES TO
THE PJ..EADJNGS fiLED IN.COMPLJJ).NCE.WITH SUBPART 21Al: .C) S71PU!;A_'fi9NS m;GARDINGA.N'{ UNCOJ'!TESTED FACTS;
'AND.PREMARKING OF All DOCUMENTS WHICH EACH PARTY BEt:l!iVES MAY bE OFA:RED AT 'n"{E ARBITRATION HEARING: (E} THE
JfiENTIFit:AnON' ANI1 AVAlLABiufv .OF WITNESsES, INctUb!NG EXPERTS, AND SUCH ADOITIONA[ MAiiERS REGARDING WITNESSES .
. tNCLUbJNGlfHEJh" BIOdRA'rHIES AND A' Slf{IR't Qf THEIR EXPECTED TESTIMONY, (F) WHETHER' A STENOGRAPHIC OR OTHER
. ., OFflCtAtftECORO"'OF''THE PR6CCE"DJNGSSffAl-tBEl-MA:fN1AIUEDi .I\ND1G) THE POSSIBtt.lTY OF -ut'JUl"ING Ma>IATION OR -oTHEQ
Al'rEfiNATIVEMETHODS .OF DISPUT-E-RESOLUTION. '
. '
... fgl TJ-I.E HJ\VE rm; Rll3Hf TO INVOKE HELP fiEMEDIE.S (Si.ICH AS SET .OFf, NOtiFICATION OF ACCOUNT PES.TORS,
SElZURE AND/OR FOREClOSURE OF COllATERAl, .t\ND NOthiUOICfAl SALE OF PERSONAL PROPfRTY AND ReAL.PROPERTY COllATERAl}
ifEFORI!,- DURING 'OR 'AF.TER ANY. ARBITRATION ANb/OR REQU"Sl" ANCillARY OR PROVISIONAL JUDtciAL RErw,EOIES {SUCH AS.
. dARNtSHMENT,'ATfACHMENT, S!'ECJFJt: PEMOM1ANC.E, RECEIVER, INJUNCTION' Ofi RESTRAINING OROER;AND SEQUESTRATIONT'
. BEFORE OR AFTER ANY ARBITAJ\.TION. THE PARTIES NEED AWArf THE OUTCOME OF "'(HE ARBITRAtiON USING SELFHELP
...... OFIA:Nclli::ARY AND/O!Tf!ROVISIONAL JUDICIAl REMEDIES SHALL NOT OPERA'TEAS A WAIVER OF EITHER
PARTY'S RIGHT TO COMP:El.ARBITMTJON-, ANY OR PROVJSJONAL "REMEDY WHICH WOULD AVAILA'eLE; FROM A COURT A'T
t..AW-5HAt.L'5E AVAILABLE FROM THE ARBITRATORS.
. ..
- . PARJl..i!.SJ:l!IU
.
ANY AND AU AcTioN IN A TRIAL COUAT, SAV'8. ANO A HEARING ON A MOTION TO COMPEL ARBITRATION AND/OR THE ENTRY
OF AN ORDER COMPELLING-ARBITRATION :AND STAYlNG AND/OR ABATING THE LITIGATION PENDING THE FILING O"F THE FINAl AWARD
OF THE ARBJ'J'hATORS.AllllEASONABlE ANb NECESSARY ATTORNEY'S FEE$ AND ALL TRAVEL COSTS SH.ALLBE AWARDED TO THE
PREVAiliNG PARTY ON ANY MO:l!ON TO COMPEl;. ARBITRATION AND MUST Bl:! PAID TO SUCH PARTY WitHiN lEN (10) DAYS OF THE
OF TfiE CONPEl.UNO AfilJITRATION. . . . ' .
... .. ,

PROCESS, INCLUDING-SERVICE OF A COUNTERCl..AfM, .fAILURE TO SERVE A WHITTEN NOTICE OF INTENT TO ARBITRATE WITHIN THE TIME
SPECIFIED ABOVE SHAll liE OEE:i,1EO A WAIVE1 OF THE AGGRIEVED PART'SRIGHT TO COMPEl ARBITRATION OF SUCH ClAIM, THE
ISSUE OF PURSUArjT TO THIS AGREEMENT IS AN" ARaiTRABlE DISPUTE
._,... m aaoDA-Y'NOfiCiiPERi'OO.'WHETAER'tS PCAINTifF'ORDmtrcr'ANr,
NOT A WAIVER OF tH RIGHT TO' COMPEL ARBITRATION, All DISCOVERY OBTAINED IN THE-PEN-DING LITlGAllON MAY BE USEQ IN Aff'f
SUBSEQUENT ARBITRATION PROCEEDING, . '
(kl iHE PARTIES fURTHER AGREE THAT {I} NO ARBITRATION PROCEEDING HEREUNDER SHAll BE CERTIAED AS A'CLASS ACTION OR
PROCEED AS A CLASS ACTION, OR ON A BASIS INVOLVING ClAIMS BROUGHT IN A PURPORTED REPRESENTATIVE CAPACITY ON
OF 'fHE GENERAl PUSLIC; OTHER CUSTOMERS OR PoTENTIAL CU:>T-DMERS OR P!;RSONS SJMflMLY SITUATED AND !h) NO ARBITRAIION
PROCEEDING HEREUNDER BE CONSOIJDATED WJt'H, OR IN ANY WAY WITH, ANY OIHER ARBl'rAA'I'ION PROCEEOINI3. .
-11} i\N-Y"A"RBil"'RATOR<SElECTED SHAI:I:-BE-KNGlWLEDGEABI:EINTHE SUBJECT Ft1A'R"IiR OF THE DISPlJTE. EACH OF THE PARTIESSHAI.t.
AN EQUAL SHARE OF THE ARBITRATION COSTS, FEES, E'XPENSES, AND OP THI:! ARBITMTORS' FEES, COSTS AND
' . . . . . .
{m} All STATUTES LIMITATIONS WHICH WOULD OTHERWISE BE APPUCABLE SHAll APPLY TO ANY AND All CLAIMS ASSERTED
SUCH SIATU'rJ:S....__,
OF liMITATIONS. '

WHICH ARE SUBSTANTIAllY SIMn..AR TO PRE-HEARING, MOTIONS TO AND FOR SUMMARY APJUOICATJON,
. 'iHE AGREEMEn:r IN WHIPH.
: '{;)'THE:.PAm--tES-AeKNOWlEDGE THA'TlHISAGREEMENT -EVIDENCES A -TRANSACl'ION INVOLVING INTERSTAtE .COMMERCE. THE
ClOVER-N 'THii lNTERPRTATfON, ENFORCEMENT, ANQ PROCEEDINGS PURSUANT TO THE ARBITRATION
TO PREVAILIN9.J>MID',._-.
lrl NEITHER THE PARTIES NOR THE ARBITRATORS MAY DISCLOSE THE I;XiSTENCE. coNtENT, OR RESULTS OF ANY ARBITRATION
HatruNDE!l.WITHOUT PRIOR CONSENT OF AU. PARTIES: AND/OR COURT ORDIOR.
bl . VENUE .OF ANY ARBI-TRATION PR0CEDING HEREUNDER SHALL as IN J!I':XU coumv. TEXAs.
SECTI9N X . Misel'lDanoou!l,
{a) Setjudtv tfuerest AhSQime.Ail rights SecW'ed Party and the sec:urlty lnterests hereunder shaD be absolute and ullcorrdltklnallrtes:pecilve
..... ... , .............. ' ,_ .. - .,,, ............ ....... ...... , ........... .
:m 11ny the n'larnwr, -or p!ac& of .payment of, or lo any oJhei t&fm Or, all or any Qf the Indebtedness, or other
amendment Of Waiver of'Ot 11ny CD0$()11t to .any from the Promissory Note or any other Loan Document:
(I!) any or relea.se or of aU or any part of the Collataral or any _other coUateral, or any release from, amendment to,
.........., A{JIW. ____ , .... _..............,=-........ .
ODJ to the fullest extent pennlttedby law, at1'i other which might constitute a deftlfi.Se avaUa!> to, or a discharge -pf
tM Debtor or n third party pledg<lr.
{l.iJ lndamnlfieatlon, Tha Pabtor to Indemnify the Secl!1ed Party and .hold' Secured Party harmless. ftom and any and o.H
liabilities, obUgatlons, losses, damages-, p&naftJes;actions,.judgments, s1.1its, costs, &Xpen$()$ or dl$buruments olany kind of nalura whatsoevor
\\'hlch may be 'imposed on. lncurrttd by, or auerted against tho sleured Party In any way relating, In any way nrlslng out of oi In connect ton with
(his $.u.uthY l011n Dooun'lt"nt& or th!l transactions contemplated hereby or thereby other than those arlslrig out of the Sec\Ifed
Party's .brneh.. defnuft. negySe'nce 'or wBiful rntsconduet In Its obngationt under thls Seourity Agreement or the Loan Do<:uments. WithoUt
limitation of 11\e foregoing, ttta Debt of will reiniburse the SciourGd Part)' for all expenSes- {lnoludlrlg GXptmns fo( legal swiic:es of evi>fy kind} of, br
Jnctdentar to:' '-tile' of., entering-into e:nd--enforcemenrof any otthr lind any actual ot
attemptod !.ease or othef db:po:!litlon. of,_ end exchange, colfeotlon. compromise or settlement of any of the Collateral and
defending or asnrtJng the rights and pf the Pan.y ln respect thei"eof, and for 1he oar a of the 'Collaterel and defending or asserting
. the rights and claims of .the" S&cumd Pan:y In respect by litigation or expense of .Insurance, en<ta!l such expefl.'IIIS shall
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IBCOOO( - 03/04/05
Page 8 of 9
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SECTION X!: NO ORA! AGREEMENTS
' .. ',_. ,..-,. .. .,,_ .. '""' ,,_, '' '' "' ,,.._, - I
THIS WB!ITFN AGREEMENT REPBESfNIS THE BNA! AGfjEJft.mrr tJIITWt!H"N If..!E PARTIES MAY NOT llfi CONTRAD!CTEDRV WfQENCE
OF 'pRIOR. CONTEMPORANEbUS. OR SUBSEQUENJ' ORAL AGREEMENT OF l'HE PAR'J'!ES .
THERE All!: NO UN)YR!UEN ORAL AGREEMENTS Bgt\'JEJN THE PABJ!ES.
Dated r.rarch 24. 2oos
By:
DEBTOR: DEETOR:
By: By
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By:
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DEBTOR:
By:
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SECURITY
AGREEMENT
"
The vndarslgned Oebtoi-, OwMtot'collmral, onv or more, erld l'NTglrnl\T10NAI aANt or C:C'IMERCE ,
130 s TWIS I Slill F!,NTQNIQ. 'T'EXM 7f!.2.05
!Mie!Mitet called "Saour.ed 1>arty'1 enter Into '\hi-s "Sel).l.lrhy Agreemem aild tot .soo.d and vahJablt

tM receipt of which te he ruby
. acknow!adgod, egre-;
1: Creation, of ln1trnt. .
Debtor herebv to S3ClJt&d Party 11 flt!lt and Cll{c!uslve.Jien er\d Interest In all of the Ptrionu! propartY of Debtor, whatever looeted,
11M Mw oylned or hernfter ec:qulred, lnckid!nr !he Property df)Soribad lp Seqtlon II of this Sec!JrltY Agreement !the "Collateu11 to 'Jeeul\t
payment and of th151ndsbtedrwu (dm:rlbed Ill Seotlon lU below), '
SECtiON lh Qe,crlptlon of coneteral,
f, Tha .securitY lnta18st Is grtnted In tht.fOltoWin9 ootlaterel:
e. Describe the c:o!!eteta! anli, epp!!oable, ehock boX&$ and provldelnfounatlon lndlcated.Jaklw,
b.
SEE, EXRlBIT "A" AUACHBD AND INCORPORATED HEREIN
0.
2
D
3
D
TM above goode to becomt fixtures ont roal ntMeJ auach additional 'Jheet, If peeded)
I
b
timber Is ttandlng on: {dewlbe ret\ II'Jt&tal attaoh sheet, If neede9>
Tha above rrtlMr2!e or1he HkiJ Vn.cfudlng on al'ld 111>51 9r aooount$ wm be ftnanced' at tho wall heed or mine he.ad of tM wen
or mine !ooated om (duOrfbt rel!l nttte; attach addhlonalllheet, If needed!
I'
c. If b.1,

or b.3 above Is t:hacked, this agreecnent Is to b$ fijsd for ret-ard In the real uttte records, CTM of the
real be lfffl<llentfy n to give oonstrot:Uva no.lkle of 1 mortgBQO on tho reahy},
0 ThO Dobtor doos.not hevu an lntere;t ot record; the IH!me of i' reGQrd owner of tho reel Utlllo Is
0 MsubstiMe for, er.d othet l!ddftlorw to, and toots, P"\s, Bnd aqulprneAt In
c;onnectlon with, the above ptoperty; end tho IMteHe tnd unborn,vovng of and poulw,
Alt prop.erty slmller\o the hereafter by Debtor,
F All proceeds, pr!XIuots, lind of the Coihteral 11re 11\{)Jvded. Coverage of pro'ducts and ptocseds tor llnenclr.g ltatemont
pl,llpOiU 1s not to be cOnwued u gtvlng OePw any eddlt\0(151 tlghn with re$peot tQ the CoUeteral, er.d Debtor 1s not authorhed to
seU, feue, or othtrwlse trensfe(, turnlsh under contrtct of mtrwfeoture, ot unmb!e tha Co\lat11ral, exeept In
aCoordanee with tha provh!ons of this Secwlt)' Agreement. Any eddillonal 4heeu deicrlblng the Coll&teul, the reel estate, or other
matter! ore Incorporated In end made a this Jnstrvnwnt, j 'J
2. Clau\ly tl'oe oonaterel under one or more of th'& fo!lowlng iexn Buslmm And Commeree Code cfeulflcetlonsl
D Consumer
Equipment (business \Jse)
, qvlpment Uum VH}
Jnvestmer.t Property
lnstrvn'lent'f
Ac=ounts
08poslt AccoUnts
Ton Clatros
AgrtpulturaJ Liane
Farm Product$
Gensrel
Inventory
Chattel
lett8rOfCredlt Rlghta
Support ObngatloN
Liens o>n Government An:ets
.
Seles Of PByment lntang!b!u and Promlsfory /'kites
ArVJ \o the extent not abovg original oo!latetel aft proce.od5 end' products of the
IBC0004 - 06/'Z'J/Ol
J"age 1 of 1
My term U$!1cf In the Texas Busltleu A ,'ommerce <tho an9 not .denned In
term in the Code.
a
4.
,6.
II thls'bloek is thb Is a money security Debtor wll(us,e funds to the CoUateral, or
Stl(:ured Party may dlebl.Hs& fundt. direct to the seller of the Colliuerel, end to plllchas.e lntur&n<HI on the Collateral. TQ. the extent
Debtor uses the lo&n to pwch&se C'oU&teral, Debtor's rapa.yment Of th& lMn $h&ll&pp!y on 6 wllrst.Jnflt.a.t-ouln basis so that th-e
portion of the Loan uud to purchBs& a psrtleular hem of Collateral thaH ln the ctvor.olog[cal ortfet the Debtor purohu6d the

If eny of the Collateral Is accounts, ntve the location of the whets the tacords concemlng them ue kept Uf othat than Debtor' a
addt&u shown above!:
commercial Tort C!aim.s, a eubcategory of General lnu.nglblss, mu.M the Debtor's claim for
agalnst _____
SECTION Ill!
Thl$ and grant Is to Seeuted Party to secure the prompt and Uflcond!l!onal payment or, &nd the f!r.u end seoutlty
lotef1Jst h?taby to Secured Petty tM payment and of, the l.c;otteotlv,ly, the "lf14ebtedneu")z
A, any and aU Indebte-dness of!
(if ind&btedness Js not soklly of Debtor) or eny of them fl more than ora, to Aulgnee, Jointly endlor SIW&rally, and In epeolty,
whether a$ bo((ower, gusrantot, or otherwise, now or hereafter owlr'lg, Cleated and/or arlslllg, and regardless of how tovldencad or
lf'lcludlng, whhout Hmltatlon:
'
B. e.rw comm&rclallodn or lndebtednesa:
C. any cledit card or oth&t o.onsumet type of Joan:
D. Any ltK!I!btedneu teletlng to checking or savlnga accounts loverdrllfu, leu, etc./;
E. any expenus \M:IJI'red In protectlO!i ot mernteM.nc& of the coJlater61 securing any of such llebHit!u, loans, and obl!gatklnt:
F. MY expenses lnourred In the oollectlon ol.any lll<lebtlldMU and/or
G. any letters of creo/t and/or lndebtodnen erlslng out of, or advanced to pay, latters of credit traMal)tlot\$;
H. any llidebte.<lness, hOwever, evidenced, whttther by proinluory note, boold::eeplng emn-. efectr9n\c trensfer,.ch.etks, dr&.fu or other
ltema, or by any other manner or form;
1. aroy other Indebtedness ol Oabtor and/or ol the persons or entitle nt forth In $\lbl)aregraph A. aboVe to any flnanciBI Institution
all!dated with tntarnatlonl\ Corporation, Jointly and/or aeverelly, and In MY capacity, whether u borrower, gv&r$fltOt, or
otherwise, now or haraaftet owing, &lid/or Arlalng, and tegatdlese of how evidenced or arislngl
J, IIOY and aU extensions, modifications, substitutions Md/or ranawal! of any of the above- detrlbiJd lnd$btedne$s;
J{, any and all oow.lneurred by Secwad Party to obtain, preserve end enforce thls Security Agreement, .coiJacttha ltldebtednus, ar'ld
maintain ant:l preserve th9 Collateral lncludl/19 without limitation, slltaxu, uuuments, attorneys feu end legal expenses, and
exp-enses of sale:
L. the nJe by Debtor end tM putChsn by Seeuted Pertv of Aoco.llflta/
M, the. sale by Debtor end the pUrchase by Secured Party.-otOhattel Pepe(j
N. tha sale bY Oebtor and the purohes& by Seourad Petty of Paym-ont Intangible.;
0, the. uk by DebtOt aM the purche&e by Secured Party of Promluory Not&tl and
p, any of tM that llrls-et tM fl!lng.of ! petition In bsnkrvptoy by or agali)St Oebtor IJI'Idet the Banktuptoy Code, evon If
tha obQgatlom- do not eoorue of the autor-ostlo stay under Bahkruptoy Codo 362 or otherwise,.
To the extent 811owed by 1.\w, for purposes hereof It If Intended that the ll'IC!uda a11 <:lauu of lr.debtadnus, whether
by nous-, open aoeounts, ovardrafu, or othttrw[s6, and whether d!leot, lr.dltect or contlngen(, regardless of olaee, form or purpose etld
lnchsdlng but not Jlmlted to, loans for coosvn'!Or, a.grtouttvral, bv$lnue or peraonsl Purpos&s,
The ioreaolng allall under l'lO clrcUfl'Jstences Um!ted to the existence of eonatetlll for auah lnd&btednau, or th& type of
eeHateral covered thereby. rne Indebtedness doas.not Include amGUnte owed pl,lfavant toe homestead equlw loan.
8nd other pertaining to thlt Agr&1ment thall be In writing and ths.U be offectlve: only It dellvered In peraon
or mal!&t:l U.S. certllted maD, tatum receipt raquutad, prepld, to S&Qlned Perty It sent to:
INTERNli.TIONAf. BI\NK OF CO!o'l1SRCIL 130 '. TRAVIS. SAN ANTQNXO. TEXAS 78205
Attentloh: THQMAS L, TRWTS , and 'ent vie Vnft&d States Mal! to Dabtot, duly nampad and addressed to Oabtor
either at the strt&t address, the flrst shown here!nebova, or et the me!llng ll"ddre!lt, 1f any, gNen by and/Or f6fDilbtor at tlla beginning ot Ws
8greement tor at a11th other eddtO$S u may heve been designated most reCently In wtltlng by Pebtor to'SacU!ed PetWll provided, however,
aotual notice to Oebtor, glvan or rec&Md, $h&U be. effective when given or r&celved,. Except a.s otherwlae r&qulrad Py law,
any notice given or made pursuant hereto shell be deemtd elfactlvely f!/Ven on the date of personal delivery or, If mailed, on the date tuch
notice I$ deposited In the U.S. Mall, lf'reoelved by S!cutad Party,
'
SECTION !VJ PERFECTION OF SECURITY INTERESTS,
1. Filing Of !=/hanclng StatGment.
iU Oabtor euthorbes Secur9d Party tO file e Flnenolng Statement, en Amended flneno\ng SUttment aM a Conllnuetlon Flnanclng
Stetemont tcollootivtl'i relerted to as the "Financing Stettment"J deerlblng the Colfaterel,
(II) Oebtor by Secured f>erty to file e Flnenell'lg Statement deacrfb!ngany ag-rlcuftwal or other statutory !lens Mid by
See'Jled Pany. ':
Ifill secured Peth' shall receive ptlor to the Closing en official report from the Seore.u.ry of StatG of each Col!atetei State, the Chlel
Executive Ol!Jce State, and tile Debtor State teecll a.t defined below) (the sos Rapom"J thet Secvred Psrty's nourity
!ntetestls prior to e!l other security lnteresu or other Interests retlected In the repon.
tivl Seourad Party shall receive tit any tlma foflowlntJ the CIOSII'\9 an SOS Repon Jndloellng- that Secured. Perry's sec1.11lt'y \nureat Is P"l'ior to
llll other security lnteresu or other !ntU&$b reflected In tha reJtt,
2.. Possession,
111 Debtor shall have posuH!On'of the C411&.terel, except when' axpre.ssly otherwlu provided -l/1 this SectJtity Agreement 01 wheto Secure>!
p
11
uy chooses to perfect Its security Interest by po6sesslon only, or In addition to the /Ding of a Financing Statement,
tBC0004 06/22/0l
Page 2 of
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'ftll Co!feterall$ fn the ponenlon ol i J pert)', Debtor wm JO!n wflh Secured Party. In no' l9 tho tiWd PtriY of Secured Pany';
s,ecllrfty lnwest and obtalnlt\a a ControJ Agr.11Bment from the third PartY !hat It holding the Coh,($rel for the beMflt of Secured Pany,
3, C4r\irol AGfilements, [!.!9tor will .VJith secvied P,ertv In obJalnfng a Control Agreiment In form 11nd &ubaunce &atlsraotory to
Saounid Party wiJh respect tci of; .
' '
OJ Aoeunta:,
Ufl lnvewnan\ Pro'perty,
tRfl LetttrOf-Credlt Rights, end
(lv) E.leotronlc Chane! Pll!lflf
4. Marking of Cbauel Peper, Debtor wm oo.t oreate any Chattel Paper wlthovt placing a I&QBnd on the Chane\ Paper acceptable to Secured
Parw lndloellfl9 tl;.et Par\Y 1 ncilrlij' In Vle Chene! P11W :
SI!CYlON V1 Ptbtm's RQprntntatJon Warzpntls!l. tnd Agt<)!ltMDtJ
A, Oentrlll Werrantln
Debtor tepf"esentS, warrants and agre&s that1 . , ,
l\} Debtor het.fuff power 11n<l 11VIh9rltv 10 enter Into tO!$ SecuritY Agreement; thli Agtnm1mt t'>u betn do.'y suthortze.cl,
Gxeovted and dilllveitd by constltutes.tM valid ami binding obUga!lon 'bf Oeb1or aM9rceable In e.ecordalioe with Ita
wms, No oonnnt of third partlee, 11 euthorlutfon or filing with any jjoyerrfmontal la iequlred'to be obtelned or
.perform&d In oonnsotion with tlw exseU,Ion; deiiVllr;v, end of thb Seourlty AgreetMnt
(2)
131
(4)
(61
(6)
171
(B)
(91
It OJ
All lnformatlon vpplled e(ld alnemenlt m11de by Det1t9r ln.llny nnanolal, credit or aocountlng ltllem,nl or'!!pp119atlon lor credit
Pllor to, contemporaneoutlY wlth' or iubsequent to the execution of thl$ Seoutlw Agreement .re and shsD be trve, oOfleot,
complete, velkl, and gerwlne.
Debtor owns, or-wJQ un the ptQceeds of lltW by SBcurad Perty to l>ecome the bwher Ql the frat from eny setoff,
claim, Ueo, feot,u:tty Interest. or except thb ncUrl.tV 1r.d lleM fottaxe& not yet .
No Financing Statement covering tM Co!!eterel or: Its ptocuds la' on file In eny publ!o olftea and De'btor will not permit eny
covering tny of Debtor'J COllateral or lM pfooeeds thereof to hernfW ba on llle hl eny ptlbl!o-offloe e:o:cept as
mey be .fll11d to thla Agreement. .
Oeb,or aha!! ptovldf. to .Secured Per1y, upon :3eoVfed Party'J fe(tuest, lU flna!'lelellnformetlon, Including bvt not limite<! to e balance
sheet, lnWme -&tetement, sf11tement of euh flow, end &uoh other f!nenclal fnformetlon n be requuted by Secured Perty: Ull
11\ eppralul of the Collaterah ftlll tax reo&lptsJ Uvl evldtnce of lnavrence, and M any other lnfotmeUon requited by Secured Party In
with the lrtdebtedneu or tht Contterfl,
Debtor will not uu tht Collateral or permit the to btt used. In violation of any siatute, or other IJW or
h'lconslltenlly with tht tsrrn; of IIA'/ policy of lrnwence thereon: and Debtor wl\l permit Sao\ll'ed Party and Its agents,
repreuntat!vea, a!'ld employeu to exemlne the Colleterel 111 tlll"les, end for auoh plllpose, Secured Perty may enler
upon or Into errr pramlaes where the CoiiBttrel rriay be loceted wlthwt b11-lng gvltty of, end/or hekf llablt for, trnpau, Debtor wm
furnish to Secured PartY upon request all pertinent Information regetdlng the Collateral,
The Co!llltetlll remain In Oebtoc'a pqssesslon or control at altlmu at Debtor'$ fuk of Jon Uf'lleu Secured Party has taken
poneulon of th.e Collateral, and bt kopt at Debtw'e eddreu ut lorth above where secured Party may Inspect it et eny ttme,
except for lte -tell"lpoury rimove! lo connoctloo with Ita ordlnarv vse or vnleu OabtOf notllln See\Jred Psnv In wrltlna Secured
Party consente In wrlt\09 In advancs ot lte removal to ar.Othtr location,
Debtor shell pey .prior to dellnqUDMY an taxssr charge$., liens end anessmente egell\$1 'the ancl.upon t>ebtor's feUvre to
ao, Seo\JI'ed Party'\ Its option, may pay any -of them and shall be -the sok!Judge of. thele_ga!lty or val!Qlly thervof end the
. 11movnt Tlecenery to dl,o;hlUge the ume, Such payment shall bacotM pat1 of thelndebtednns ucured by this SocurltV Agreement
and aheU be rrald to $oe;ur6d Pmv by Oebtor I!Timed!atety and without with Interest therfon etthe maxlmumrate a.!loweQ
'by liPPilcebla law,
H.nard Insurance mu1t be furnlfh,d a't ell for the amount ot tM lnOebtedr.ess whh respect to el! C'DIIatetal
cover11ge for all mattrla!; and eqvlpmenU ege!Mt rhkl of Flre, Windstorm, Hvnloane (If the Colletetall$ written 100 miles of the
Gulf Cout}, Hall and CoUapu {I!Wludlng oost of debris removaD ,np svch othtr rid;; n Sewrad P1rty may reqvlre, Including
1111ndMd extohded coverage. Such Jn.suranoa poUchiS shall eontaln such 1erms, be In a form, for a perlod and be written by
aatlafeotory to Seovred Party. Federal Insurance Ia elso required In those geO{Irephlo ueu that are subject to cuoh
lose. The policy ebo conteln a atendard monvagee'e endorsement providing for payment of any' lou (o Secured Pany. AU
poflcln of Insurance shall provide for ten deya written minimum cancellation notlc$ to Secured Pertv
of ooverege mV$t be 8 copy of the orlglnel po!lcy and loss payable clause, or letters of coverage Will not be
eccepted.
Saourad PattY Is ttuthorlzad to aot as for Debtor In obtelnlng, adjusting, nttllng, and canoellng such Insurance and
endottlng any drafts drawn by lMurert of the l>;illatml, Secvratl Party may appty any and/or ell proceeds of &UQh wh!oh
may be received by It In payment of the Indabtednen secured thereby, whether auch lndebtedneu due or n'ot. S&oured
Per1y rnarve& the tight 'to single Interest Jnaurance {Which provides orJy proteotlon for Secvret.i and &dd the
premium for Insurance together whh Interest at the loan Pfemauxity contraot rate to 1he ba!enoe of tM loan. Th!s premium Is
.Out vpon demand, or may bi paid m tun et enY time, The single Interest premium Is wrl-ttan by a companY to
ueMaot buslnen In the State of Texof_at lawful rates not fixed or approved by_ the Sme.Boerd of ll'lsurence. .
Seoured In Its sola discretion et]d without oh Seevfed Party to do &O, me.y advance and pay 011 behalf' end for
the benefit of Oebtor for oOJt& necusary fof the protection e!'ld prosorvetlon of the oohatenl end Qther cosu thtt may be
In Securod PartY'S aole dfsorelln, IMiud!ng but not limited to Insurance premiums, td- valorem wcu, arn:l enorney's
fen eoat and 8XP6Mot. Any surm: which may be so paid by SecUred P1111Y ani:l ell pakllor lnsut!lrwa pri!mlums, as
aforesaid, 1ha costs, experne,, aM attorney's pala ln eny su!t affaot\ns aeld Collateral $hal! Interest from the
data& of &U<:h paytnanta et tM loan lnternt r.ne to the unmatured pjlnclpal be!anco and shall be paid: by to
Secured Party upon '"0 deemod p;11t of the debt and recovelable as s:uoh In an e5pe:ots:, aum to be
re!mbursttd be neurad by this SecuritY Agreement.
Oebtof shatt, at Its own expense, do, mlrke, procvre, eXecute and deliver eO aots, th!l\il$, writings and auurahees n Secured Part'{
may at any time teque5t to proteot
1
usure or anfOrt1" Ita !Merests, rlghta and ramedlaa weatad by1 provided In or from
thls Security Agre'emvnt,
11 1) Debtor iihall not lend, rent, Ieese or otherwls'a dlspon ol the Collateral or any Jmarsst therein except u avthorlted 1n this Secvrlw
Agrhment or In writing by PartY, a!'ld Debtor thall keep the Collateral, IOOvdlng the procndt ther&af, free from unpaid
_charges, !II{)!Udlng texe&, from llern;
1
encumbraneo1 s:acurfty Interests other than that of Party.
{12) Debtor algn eM execute atone or with any financing Statement or other doovment or prooure docvmant,
and pay all eOMeotad costs, neoeuery to protect tha ;acurl\y Interest vnder this sewriW Aguement against the rJshts or Interests
of third pe".ont, Oabtor !ihall. the costi of De" end certificates &hd aU tiling lees, continuation fees, and fen fer
. certificates mndlng en<f other lnfJHrrtatlon by Satured Party, .
OIO/a2/01
fage ) of '.il

{141
(16)
{16)
!181
(19)
120)
1211
1221'
123)
shall at all times keen tht CoUattral ami Its separau and dlstlr"'t other ol Debtor and sraJ keeP,_
aoovrste and compltlte rect ::. o! tM CoNetml and DtJlt9t ehall Pf 11r.d pay -a[l oo.tJS Mcesu.rY to
do so, Including (but not toj leed, rent, storage costa, al'ld IIXpecbes of ta!r.- '
. .
If .SetUled Party should et any time of the oplrdon thbt t,M Coflatenl hu oUneQ ot may deollne In v&lue, or It otherwbe
lnsufllolent to od!lquatefy secwe Jndebtedneu-, or 1hovld Seclrred Party dtem'lh1111 llu&Outtl at to p&.ymeM of the lrKfebtednsu,
tMn saovred Pany may calt lot eddftlonal property to be pledged Bnd/or eoveretl by Agreement to Seoured Party.
11 any CoHateral or proceeds Include obligations of third parties to Qebtor, t.he ttans&ctkms oreatlng thou obtlgatlonl w!ll conform In
&!I respects to applicable state and federal con-sumer credlt laws..
In tho event Debtor or any other person ot pmons seeks to enjoin Sooured Party '1rom taktng eny ln conr'lllctlon with the
lndebtedneu or the entoroem!lnt of Secured Patty
1
e rights the Col/ater&l, Debtor hareby aaree; to give written M\lce the
President of Secured Party, 111 the addr8ss of Secured .Party set fonl}-ln the flrst'paregrepK of this Seovrl.tv Agr&ement, or SVh
or addreu as Secured Party may designate In wdtu\Q to Debtor, to euklng sny tllh ln]\ft10tlve relief,
shll!l Indemnify and hold harmlue Party from and. against t.ny t.nd t.ll elt.lms, JQun and growing out of or
ru lt!ng from this Seourfty Asre&J1ant l!neludlng, wlttiout 1\mltetton, enfO!cament of this Ssoudty Agreement}, exot.pt claim!,
loa os or Jlabllltlee resulting from gross or wllltul misconduct of Secured Party. CM.btor egrfu, upon demand, to pay
to ott.JI'$d Party the amount of eny au expenae.s, Including, bot not l!mlled the feu and dlsbuisementt of Its counu! snd ct
11ny &XJ)ert's and whloh Soevract Party may lntllf In conne-oJfon with (a} the ptaparatlon. dafrJ(Iry
1
Wlng, recording
or admlnlitratlon of this SecuritY Agreemant or the obtt.Jnlhg of edvte& from eounaet}Yith rt:sp!ct to Ita rights t.M remedies under
tl'!le Security Agraamant, tbl the custody, preseN&.tlon, usa c;r operatlon of, o{.1h6. ule of, co!leotion from, or oth&r reeUzetlon upcn,
any of the Cclfatotel, (c) tha exercise or enfotet'!n\ent. of any ofth& rlohta of. Saourl!d Petty hereunder, tdl the dalanst by Secured
f>Btty of any pre:eeedlng related to the lndabtl!ldn&u or tfie Col!tterM, or Ia) Debtor to p$tfO[m or b.UtVo
any of the provlsloos hereof. Debtor agrees to Interest tin any t)lpS/18& or ether i\.10\$ due tc Sacurad Pany htreul'tdar (u.va an-d
except lnsuranet'!} that ere 110t paid when due at a rate jM!r annum equal to the h]gMat l't'lt& p-armttted by eppllceb!e .law.
At. aadltlonsl ucurlty for the lnbtedrt&S!, Debtor Mreby U\lg/'1!
1
pledges t.nd grantS- to Party e secUritY interest, a Jl61'1
and conttaotual right of utOff In and to etl of th& Debtor's moMy, et6d!U, acooun.u, certlncstest.nd/6r other propeny
now In, or et any h!reefteJ coming within, the Mtody or nontrol of Secur&iJ Party or any member Bank ot branch Bank of
International Bencaharu Corporation, whether held In e geMral or epeole\ account or depos\1, or for e.efekespl,Qg or otherwise. Evtll'y
eueh lftterut anci tight o! setClff may be &Xotebod whhout d&h'tat\d or to No secUrity lntotett or tJ9ht
ott shan b& de&med to have by any act or eonduct on tM pan, ol Se-cured htW, or any f&\!ure to t.Xeto!se svoh 11!1ht
set-oft or to en.toroe such nourlty Interest. or by any dal&.y In ao doing, Every rfght of tatoff end se()Uf[t.y Interest ahall continue In
full force and effect until such of setolf or security l& waived, or relused by an. lnstnsmenl In writing
executed bY Secured Party. Tnt toreg01t19 Is In .sddlt!on to end I'IOt In neu of ero.y rlohu of Utoff allowed by law,
Debtor sha!l.esslst Secured Petty In complying \'11th th:a Fed& tal Aulgnrnent of .C!almt' Act (end any suctessor atatultl!) end similar
lawJ to eneble Socured Party to b!<:OO"oe fin e$,lgnea under such Act end otherw!!e comply whh such lawt. Debtor ehall pt&serve
\ha UabHIW of t1Jf a(leount debtors, obiiQora, end pattloe obUgotloM are part of the Colhatat11l. [nbtor shall notify
the Secured Party of arw change occurring In or 10 the toUt.teral, or In' IllY feet or clroumsrances warranted or reptesanted by
pebtor In thl.t agtl!ement or furnished to Perw, or II any Evant of Default occura,
Oebtor will not Bilow the Collet&tel to be affixed to real o,tato; oxctpt goodtldentltled her(llfl
AA extended or renewet! note\s) Will be consklered executed on th& date of the note\!1.,
1
Pebtor shall tomply with e.Jl envlronmanteJ JeWs lind reglllatlons epplloabJa to the' t.I'KI the praml&-os,ln which 1ha Conatctel
Is located end sl\8!1 notify Secuted PMtY recalpt of t.ny 1\t>tlce'()r other Information as to any envfronmentat hautd$ or vlohl\.lon
of such le.wa. Secured Party may ln1peot an pretrilses In whiCh t!\41. at Ia locatsd t.n.d the Collateral u to Ita and their
pompHanee with onvkcl'o/Mntlllaw, Debtor lndanmitlu t.n<l holds harmkss Secured Pt.tty for any breach of the fGtegolng el'ld lor ell
fossos, coats, floe.a, damsgu, ll'lh.uflllg e<>utt COS1a.and auorne.y'e fees, l:iurred by Secureil PArty to l:lel&nd Itself, or to proact or
preserve. the Col!eteral egaln$t environment&! rlskt, hezatd.8
1
tlnu, ind oth!rctelnu relating tO tM Colltl\l!rlll,
Wtthout,.ptovldtng'Seouttd Party with at lent thiny !30) deye prlor.Wfit,ten not!Oa of Debt;r's lntantlon to do 10, Debtor, until the
11 pold fn tuat agrn1 tM.t h win nou
r ln one transection or a sorl&s OJ ta!Ated trenaaotlone, merge tni0 or toNoddate with any other entity, aell 411 or eubstentlel[y all
of Its auate, or It\ lif'IY way j11opardld Its corporate exlatence, "
b. <:henge tM state of lte lncorporaUon,
o, Ita corporate Mrno,
b. CMngo the eddrou W/or loottiM of Itt Chlaf Office:
e. tire a UCC1 Ametld,ment form, and/or
1. llle .a UCC1 Torm!nfttion form.
(24) Debtor the rltl<. of lou of the Coh\8181,
,., 125) Secured Petty hu no _dUtY to coUect any tneorne aeorulng on the Cof,Jeterel or to prestNe any rtghta reletJng. tc the Collateral.
B, SpeolaJ
1
RopreaontMions rind \'larrorit!u;
Oebto! reprosentt, wenanta aro.d agren th!t:
IH
{2)

II the Collateral Includes Inventory! . .
(a) Debtor w1U lmmed!Bte\V notifY Secured Party of the disposition ot any lnve'ntory end at Debtor's axpanse will eltfttlr enJgn to
sec11red Pany a l!ntpr}orl!y security lntore.s-t In resultln" Mcount. chattel paper
1
or IMtrvment or deliver to Seeurecl Parw
ouh In tht. l!n'IOltnl of the sale price, will not eell,,leua, or olhllrWite pose oJ any Collateral except fn the ordll'ISIY'
course of bu!lnes.s without the p!lor written of Seeured P-arty, .
(b) Ur;tt11 delevlt Oeb(cr may In-the ordlnacy course of buJiness, lease or tu-m!sh undllr potwt.ct of servlce t.ny.of the Inventory
n11rmally hek:l by Debtor lor &uch,pvrpou, p(ovlded, .however, thet !IJh us&. of thO Inventory shall not be- lnoontlstent wllh any
other provisions !)I thla Security Agreement cr with the term$. or coi'ICiltlons of any policies oflnsuraMe thereon. A $81& In the
ordlmry course of business does not lne:!ude a transfer lh pattie/ or total of a debt,
. . . . . . . . .
If tiw Collateral Includes accounts:
{e) Each accovntlr"J the Collateral wUI tepruent the vel!d, legally anforcu.ble obligation of third part!u arut will not bo evldel"led by
eny tnauument or chattel paper. ,
lbl The oftlce where Oebtor keeps-lis records concerning accounts, If eny, Js the address of sat forth at the begiMlng of
thle Securlw Agreement.
If the Collateral lnc!udu Instruments, chattel paper or <lc-eumentSI
Jel By oenverlng a Ci?PY olthl& Security Aereement tome broker; seller, ot oth8f per.s-onln po.uuslon of Col!ewat that 1.1 chattel
paPf'r ot document, Secwity Party wi!lelfeotivaly notlly that person of Secured Party's Interest In tht! Collaterel. Delivery of the
copy of the Secllflty will also OMstltuto Oebtot'll lnmvctlon to deliver to Psrty certlflcietes or other
evidence ot tna CoUetetal e&. soon II$ lll!i\Willable, Debtor wllllmrnedlettl!y d&liver to Secured Pt.tty t.n ahettel paper and
documents that Collateral In Debtor's pouessicl'l. If that CQ!leterells hereafter eociulred, Debtor will dallver It to SeclHed
Pt.rty lrnmedletely following acquisition end either en-doue Jt to Secured Peny't ot give Secured Patty.epproprlete
exl!t:utea' powers. If eny lru:ltuments, chattel paper, money ormPnlu, ot documents are, at any tlma or tlmes,'lnClvded In !he
. . lBC0004 .. 06/22./0l.
Pag4 >4 of S
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14)
!;)
10)
(8)
; n prooead( Oebtor wm denver the same, -1aovred Party UROn receipt tharaof
by Debtor,' and tn eny event .. ,-,ptly upon demand ttwrefoie by Secured P&ny, ,, McenJry, all Co!!uoral wlW either be
endorsed to Secured Part' a-order Or accompanied. by ep-proprlate exteuted powers. . .
!b) By mUM utlsfao19ry I? Secured per:feoted a Interest In gocx:js covered by clune!
paper, tf In
II the Collato11i lM!I.XleJ- propertY llOVered by 11 Cert\f!cete of Tltle! If any ttrtlflaate of title or $lm11H dooumemls; at any time and
pursuant to the lawa of any jwlsdlotlon, Jnu-ed or ouutending with respeCt to lhe Collateral Of any pert thereof, Dabtpr wt! pcompt!y
advln Secured Pertv thereof, 11M Oebtor will promptly 08U"aa the lntereat of Sacu-red Perty to be ptope(IY noted thareon, and If 8!'1Y
oortlfleete of tltlu .or $ln1Har do.oumeftt " so !;sued or .ol.ltstendlf\9 at the time this Securfty Aginment ls exeGu-tad by or on of
Debtor, then Dobtor sheD heve oeuud tha interest of SeoUfed P.ortv so to have befn propertY noted at or the tlmt of such
exeoutlonJ and Debtor will further piomplly deliver to SecUied Party any such certificate of IItie or slrnlltr document 9r
outelendlng et erw wllh ew:h Co!!sterel, . . .
If the Co!Jeterells or may flxtutn 'On rul proPertY de,i:rlbed herein: Th!t Agreement, for record In
the resl propertY reoords of tht eounW whsraln such fixtures are sltueted, sheR op.srete ei&O na flmnoing shtement .flied u a fixture
tHing In accordance with Seotlon 9.4021el of the and Commerce Code upo!'l evth of the Coffatera! whleh Is or may
b!c9me fixtures, . . . ,
Dobto-r hn rlghte.ln 9r the power to traneffl!r the Collaterel snd It& title to tM CollaterallJ free of ell edvme cl!lms, !laM. securilv
l_nterutf and on trtnder 01 extept a& craatlld_ by this Stl<Vrity Agreement,
AU co!!aterel tONI$tlng of goods ts [Ocated $Olaly ln the &tataa end/or sttle& pre\osly and by t>ebtor to
seewed Party,
Debtor's:
chief execvtfve office Is t.oemQirt thil &tate prevloutly dnlgnated at"ld warrpnted by Debtor. to Secured"PifW!
on atete of lnc;:orpontlon b the stet-. designated and warranted by Debtor to Partv; and
nm exsct legs! name Is u ut forth In the f!rst" paragraph of thls SecuritY Agrnmen1 , .
f '
SECTION VII_ EVENTS . .
Debtor $hall be Jn default thl$ Security Ag(Uh1ent UpM the happening of any of tM following: events or cMdltions [Mrafn called &ri
of DefeuR"H
1\l The failure by Debtor Of cny other ll&ble "party to pay when due any of the lndebtedMu elthar pr!nolp!l or h:narest, or eum due
under the terms of li!'IY Jnauument evidencing tho lrrdebtll'dneu,
121 Default by Debtor_ In tha punotua/ of eny of the tibllgetloM, oovenante, terms or provl.s!ons contained or referred to In
. Seowlty Agreement, . . ' ' . . '
. 131
141
101
161
171
11ll
191
1101
Any wartlll"lty, ttpte$&rttatlon, or stetament eontalnad In thl$ Sccvr[ty Agrsament or rnade or fl.ffnlshed to StCUtfl!d PettY by or on behalf
of Debtor 01 anY pcreoo or party ln eoMactlon with this Secu-rity Ag.reement or to lndvco Seou-red Party make the loans-
tdnerlbad 1,-, SeQtlon I!!} provn to have bun talae In any respect when m11t!B or furrJthed.
Lon, theft, demage, dntnx\kln. ule !exotpt u authoriled In Security Agraementl or encumbranea tO or of any of tha
er the making of eny levy, or euachment _or thereon.
Debtor's tlae(h, dissollltlon, termination of exlsten;e, lnsolVe"rW-Y or buslneu tarure; the appolniment of a racelver of an or any part of
tM property of Debtor; en U$lgroment for the benellt"of ered\tors by t>ebtor, the oemng of a meeting of of Debtor; or thQ
of any proceeding Undtr anv bankNptcv or Insolvency laws by or against Debtor or any gu-arantor, iWEIIY or endorur
tor or thE! Of any of .weh. events de$erlbed In this per\ 161 n to or partY for the payment of the
obUgetlone. or any J?()nlon tMreof.
Any $letement of tM eon:altlon D1:lbtor of any mekar, gval&/\lor, svratv or endorser of any of thelndebtednen PIOVU to
be fain. :

lha Collateral In the Judgment of Secwed Par;y, unsatisfactory Of lm;vfflclant In ehtrracter or valve,
Any maker, gUarantot, or cndorsor vnder with resPect to the. ll'dtbte.dnen delavtu In any obl!vatlon or llabti!W t9 Secured
Perty,
ihe occvuence of any anvlronmentelly -huardow splJI, or othar alrr\!let evant edveruly aflttt!nq tM Collattl!til or the
pramlueln whloh tM IJ wtwther evoh ev_em 4ocurf oi\$voh p.romlses or on other premltu.
Debtor, Of of them, w eny fens to timely deliver any and ell ffnsnclal -statements, Income tax returns, eash flow
lnformetlon. belenoe sheets, accounts receivable reportt, or MY other bvstoou. hx or flnanciJ Information requested by Secured
j:!rt'(, ,
SECTION Vlh SEUREb PARTY'S RIOHTS ANO REMEDIES.
Oenoref.
Secured PettY msy the fol!owlng rights 11nd remedies eltMr before or after Evrmt of Defau-lt:
II) Soeurod PartY. e:ontrol ot-eny procndS" of the CoDat!rut.
121 Secvre.d Party mey relene eny Secwed P_erty'$ J>Osnsslo:n to ll!'l'r' Debtor, nmporuUy or otherwlse.
{31" Secured PartY take control of any funds venerated by the Conatml, such as from and prooaedc "of lnavunce; ond redwe
any pert of the lndtbtetfnee;s Oobtor to use" $Wh funds to or repleoe demeged or destroyed
coVered by lmUnfl<, '
{4J" .Partv may Debtor from tlme to time, In Secured Piiitv's, dlieretlon to BhY eotlooand to execUte lrutrument
whlah Sacu-red PtrW may deem neoesury or eO:vlul:lle to hCQOJ!Ip!ilh tho purj)OSU af th!s Securtty Aqreement wlthovt
llmhetlon, to nlc:, dem!llld, 10ol!ect, au_a for, recover. compoul'>d
1
reoetve and give end rocelpts for mo. dve 'rtd to
.beQOI'Jit due under orin respeot of anv bot!atera/J lb) to racetve, end-orse and O<lllect eny drafts or Qthedn.strumeniC, ocuments end
paper In connection with the eotlone; tel to file any or tGkt tny action or l!'15tl1vt.e any pro.eaadlngs wnlcn
Secured P.artY may deem M,OBSSBI'Y or tor collootlon of any ot tM Collateref or othen\IU:e to !'nforce Its right .:.un respeot to
any of the Co!latarel, el)d (d) to oomplate and sign on lx!half of Otl!Ptor one 01 more flnenolng stetements pertaining to the Co-lleterel
end f!!e 11w ume ln"sn epproi:>net Tha J>OWBr& c-onferred on secured Party hereUnder ere olely to protect Its Interest In the
Co!leteral and shell not lmpol& any dutY !upon Seol.ll'ed Party to exercise e.nv swh powers. Oebtor's.eppolntment of Secured Party as
Debtor's sgsntl& o.oupled with en.lnteresi and will su-rvlw Jny dlsBblll1y of Debtor, .
' . I .
{51 Th!' Secvrltv Asreer'nef1t, Secured Perty't lights Mreundu al\dfor the lrufabtedneu hsreby secured niey ba assigned In whoJ.e and In
pert from time to t!rM, and In any such oeae 1i'Hrll Mly discharged from an mporn!blllty with rup!i!gt ttl tht Co1!11tera1
so and the eu!gnee shall be enthlsd to all of the right&, prtvllegee snd ramedle;,granted In thl$ GeC'Jf\ty Agreement to Sacured
-Perw to the extent the "nm.e ere enlgneQ', and Qebtor wilt- essert np cta}rtl t# d'ftlrSt: he mJY ha\Ctl llQBim,t Secu-red Party egslnst the
e.ss111nee, except thou. granted In thb Se'eurltY In addition, Dll6W Walvu end w!l( not assert agalost sny clalrn&, tfefenus
or set-(llfs whltlh" Debtor could uurt 'egell\st Secured Party except dafinsn willoh canr.ot be we!ved.
06/2-'Z/Ol
' J
(6)
17)
.($)
(9)
(10)
{12)
11-:l)
(16)
(161
117)
Secured Party tnay inter up(,: ebtor'a at time to Colleutal Sf\d De\1tor't booka ,.:
pertaining to the eoo-... ebtor !haU assist th9. se:urll? Petty In any BCI-bh ,.
Seoutad Perty may notify the 'ac.oo\lnt debtora ot of MY BOC04f1Utohaite! papa;; got!abte buttumentt Or other evldenao of
lnc;lo.btedneu remitted by Dabtor to secured Party as proceeds to pay Secured Peny dlreo\fy, Secured Party may conte.ct account
debtors d!reotly to verily Information by Debtor,
S"e'cvred Patty may requke eddlt!ont! conMe_ral or reJebt ea any property hereafter olter&d by Debtor es c.o\leteref,
SeeureJ Party mey tfuiQnete, from to time, a oerteJn of\& nth& loan velua.l!r.d Debtor to maintain
the lndebtedr.usat or below sue!\ J);lret:ntege,
Secured May present foe conversion to euh ahy InstruMent or Investment security or a totnblnatlon ther11ol, Bvt Secured Party
thall nbt,h8ve any dutY to present for convauiM.tnY lnrtNm&nt of Collateral In Its pouau!on un!us It shan heve received from Oebtor
detailed written lnwuctlom to thal effect at a tkna reasonabs'y fer tt\ advance of tM final conversion date 'to make auch e-onveulon
posslbl" , '
I .
'rhn lo eQolng rights and powers of f>arw wt!t be In eddltlon to, and not a limitation upon, any ;lghts end powers of Secured
l'aiW g'lven by law, elcew!'ete In this S4eotfty Agreement, or otherwise.
Secured Party has no obllgetJ.on to attempt 10 utlsfy,the Obligations by collecting tMm from lny other l)llf$On Rabie for them end
SecUied Parw may release, modify or v/alve any collateral provided by any cthftr person lo saeure any of tM Obligations, all without
affeotln!) Secured Party'J rights against Debtor. Oabtor waives eny rlght It may h!VG to require Party to putsuo any third
pe11on lor any of tM ObllgetiOt'IS,
Secured Party may oompty with any appltcable state or flld&rellaw reQulremente In connection with a d!spoaltlon of the Collateral and
oompllanoe will not 00 coMldered to e.f!ect the of.el\y sale of tt\e Collateral,
It Seeured any of the Co\letera! upon.credh, Debtor will ba or.idhed only with paymen!S 110tuaRy by tM. purchaser,
received by Seouted Petty er.d appfled to the lndebted()SSS of the l>urchahr, In the event the: pvrchu.er fa.IU. pay for the. conatet.11!,
Secured mey resell the Collateral Btld Debtor sMn be credited with the the eale,
Seoured Patty have no obligation tO marshan any essetsln favor oi or ega!ns't or In payment of:
(II ' the Note,
tlil any of the other Obllgetlcnt, or"
{lli} any other obligation owed to Secured Party by Debtor or any other J>eteon.
ThiS Seourlty Agreemant shall and thah Inure to the benefit of the heln, klg11tUS, executors,
e9s!gM of Secured Pany end shell blrtd all per.sona beoome t>oumtu It debtor to $Is Secutlty Agreement,
seoured PettY doas not conlent tO ahy by Oel:!tor except u exPreuly provkled ln tN$ Saourlw Agreement,
successors anr;f
a. Ramedlu In vent ol Dahult
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Dvtlng tl'1e existence of any Event of Default, or Iii tM Avent Seeurad Pllrt'f' Itself Insecure In the payment of thll lndebte.dneas, Secvred ._ .:-'
Partv daelare tM prlnc!pel and unp.ak! and acC11Jed Interest of the lndabte.dMU Jmmedlatarv Hua tn whole. or pen, en.torce the :, ,
Jndebtedneu, and/or exeiclse any rlghu en<t romedles granted by the Tex.u l}vslnus end Commarclal Code or by this Agreement, :
1
' :.
ll't!:lud]og the. following!
111 tflqufre Debtor to deliver to Secured ell boQkt and re.c9rds relating to tM Co!laterel;
(21 require Debtot to saa&mb!e 'the Coflstaral and make It evsllable to Secured f>arty ate pleCil reuonably to both p11rtl6s;
t3) tel<;e pouenlon of any of the end fot thl! pvrpo!a enter any premises where It b II this can be done without breach
of tM peace and will not be guilty of, and/or hekltlabla for, uespassJ
,.,
17!
sell, !eau1, or otherwbo O!spou of eny of the CoUatatalln accord Wfth the rlghta, rem&dlet, end dvtlet of a SecUlOQ Pa.rty under
Chaptera 2 and 9 of the rexu 8ustn&n And Commerce Coda aft&J giving notice u by thou. chapters) untau the Collateral
threauos to deonne rapidly In value, Is perishable, or would typlceUy b-e sold on a m!rk.et, Saoured Party will give Debtor
tusonable notice of UIY public ae!a of the Collateral or of a tlma Mter WhiCh It IMY be otherwise disposed of wlthovt furthet rwllo& to
Debtor: In thls event, I\Otlti will be dumad reuonabhl If 111a mall!!d, postelia prepaid, to Debtor at the eddr&H apaoll!ad In th!s
agreement at lust tan day8 before any public sale or tan daya before the time WhOn the. Collater.!l may be otMrwlu disposed of
without further notlet to Debtor. Debtor AlrthOtltet Secured P811y to disclaim or modify aAy el'ld eli warrsntlu set forth In Section
9.0tOidJ end stlpulall!S el'ld agreea that s.uot. a Glselslmer snJ/or MOdift.catlon:wal not rend(lt the u!e oommerclally unrauonable,
sunander eny lnsutaMe policies covering the Co!lateral and re_calve the unearned premium;
eppty any proceeds from disposition of the Collateral after default In the ma.Mer apec!tled 1n Chapter 9 of the Texes Buslneu And
Commerce Code, payment of Secured Party's attorooy'a f(le& and coutt expsntes;
II dlsposttlon of the Colleteralleavu tM lndebtedneu collect the defloleMy from parties. Expenses Of retaking,
holding, prepatlng IN sale, aeltlng or the Oke thelllnc:lude SeouredPerty'a reasonable attorney's fees and lepal end/or
end Debtor agrees 10 pay $11Ch coste, expenses, and feu, p!UJ thereon at thll i'oax!mum rm py e.pplloeb\elaw;
. .
(8). Seeured Petty may rets.fn all or part ot the Collateral In full.l!rld/or_partlal settsfact!on of lhelnd&btadneu pursuant to Section 9,620 ol
tM Texu Buslnen AM Commeroe
(9) Secured Pati.y may, without demend or n:otk:e of any klnd, approprf.at& end t0wer4 the payment of any sums then oV{Ing to
Secured Party and In such order of app,qCEilien as tha Secure"d Party may from t!mt to tlma elect. any property, balances, credtta,
deposits, accounts or monies of Debtor whloh for any purpo-se ts In the poueulon or control of tM Secured Party et eny member Bank.
branch Bnnk or other depository lnetltulton of B&f'IOShetll! Corporation: and/or
110) Saourad Patty may reffierly any default without waiving tt:e default enci.mey waive any defAult without waiving eny other
prior or subsequent default,
SECTION VIlli ADDITIONAL
l1l All Mtleas and other communications to Secured Party he[eunder or ln comectlon herewith $hall ba deem&d to hava been given when
tocelved'by Secured Perty In wlltlog At the address first shown hllrolnebova, Any notlee or demand or otiler communloatlon to Debtor
hereunder or In c-orY\ect!-on herewith may be given and a hall oOnetus\vety Qe deemed end oonslderea to heve been given at'ld received
vpon the depo$]1 thereof In writing In tiN! Unltetl St&te! Mall, duly atempe.d eriii addt&ued to Debtor the street eddreu, the
flut thOwn hereinabove, or at the mallln; eddren, If any, given by endfor tor Debtor et me -beginning of thl.s egreemenl (or at such
otiW addren as m&y have been most re-cently In writing hy De"btot to Party);'provkied, however, actual fiOtiCe to
t>ebtot,'however given tecelved, shall alwey$ whM given or
. . - .
-:
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t.
(2) A of thl$ or any finenolng statement cove}"!Ag the Coftaura! I $Vfflcl!!nt end may hf e:flnanolng : ... :;'
&tatement.lnformat!on conoemlng this $tC1Jrky lnternt may be obtained at the office of.$e:CLJted Party shown ebove, _, ... . .. .. .: : .. .
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'rhle Agte$m$nt may onty be mo ..._ .. .td or Hmlted' by egreemant 1!'1 writing,
. : " .
Thl$,uovrlty IBWut shalf neither 111feot be affeJlteO.bv any other1acuilly for.11ny of tl1e Indebtedness. N,lthtr extensions of
the nOr of eny elf tt\e CoUQ1eral shellllffi3ot vetr4!ty of.! hi;' uourfty lnt11rast, wi!;IJ referenGe t(!jnY .th1rd party,
Add!Jioniliy, or tO! aeovrlfV.lnterut by lewellit dQ41f' not limit SeCured P&JtY'$'r$mtdles, JnofQdln{J thi rl;ht to nlf da
Cof!aWal under tM terms pt 'thJa securitY Agrunwnt $eQwod 1'11Jt'f 6h11!1 hive tht rigHt 1o aU remed1u Jt the nme or
tlmaallnd 09 &hoiiiJe a dtfensa: to any other. Secufed Party shan alt rlqhts end.remedles granted by lew ilr
.otherwlee (n &d<ntkm-to thOse \hit Seourlty ;t..gre,ment: : . .
Secured Pi!.rty remedy any defeuft wltho\ft W<alvlnglt. No delay by Secured Pmy In lti'rljihh or perth&t extJrolllng he
r!ghu or remedle.e eh.sft wetvt funhar.exe.reln of thou r.rrwdte$ or riQhts, The fe!h,ue of S9cured Pertv to ex\lrcln any .remedl&$ or
doet not welve of those nmadlas or rlghte, Any by Secured Party of erw default shell not we, Iva eny
further defauf(, Party mey tem&dy l!fiY default without waMng It, Secured" Pany'e waiver of lmy.right In Secvfity
Agrnment ore:ny def!Uit ta binding oo!y If ltfwrltlng,
. . . . . ... .
Debtor and Secured Party Intend thit tht shali be In etrlol eot-npllehee with appl!ctble laws, If at any time lnfere$1
. oontracted for, charged or received lndebtedneu secUred.by Security A11reement or o\herwl&e In oonnectlon with lh\s
trenucilon would btl under law, then rtgerdleu of the proVIilOru; of this Seovrltv Agrnment Ot any othet
<locumenu or lnstrvrnenu ev!Oenolne, or othorwlst \lXecvted lo with enY lndebtednu& secured by this Secvrlly
A9t6emont or i!.OY ecdon or evont IIM!vdlng, wlthoU"t nmltstlon, or principal under the Nate or aoceleratlon of maturity by
Secured PJrtY) which may OCCJJt with respect to the Note, If!.! th!t ell svms to bo usurious sh'aK be !rnmodlate!y
credited by Secured Perty. to Debfor il a peymeril 01 prlnolpal'vndar the Nota or ff the No(e has allndy been paW, Immediately
rthindod tQ Oebtor, 'A!I ilompehntlon cohstftutu lnwest undef tppflcable h!W rn with env ..ttovrad by
thb SecuritY Agrellmcmt ah1Q be en'lortlred, prorated, eUocated,' 6nd -&prud "OVU the 1u!l perld of tlme'.&ny frn:libtednns )$ owod by
Debtor, to the qreatest permln!blo without exceediflg the llpplloablo m&xlmi.RTI rate ollowed by appllceble In effect from time
to time during partod.
Perty meV perform any wh!eh Debtor hlls to lmlorm and OeOtor agree. on dems,nd to relrr;buru Sec.orsd
lrnmedllltely lor ,ny 11,nm .so paid by Seourad Patty, ln-olodlng attorney::' fees and other expensn, plus lnteres.t on sums
from the dstn of paymel\t at the rete tteted In the Note for matured; Ur>peld emountf, Any sum to be relrnbuned -&hall be secured by
. this Securlrt Agreement, (See IV, {9) fOf ltuwence relmbvrnmentsJ,
Agrumentl being and end 1$ :o ba. psrrormed If! the StPte of Te.xu end be consltved
end enforced In aerdence whh tht law; of lhe Stall of iexn, exeept to the utent lhlt the Code provldu for tho application of lhe
hw of the Oebtor States, YJhen the cOntext requlru, slfl1!ular nolJN end PfOMUns ln<:lude thephml!. TM rights of Secwed Party
vnder thli SecUrity Atireemuni ehelt lnwe to \Ia ben&fit of 115 &VOoeiJblt and buigns;'Aily of P"t of the lndebtednen end
delivery by Soeured Party of eny part of the Collateral wU1 fvlly Sec\lled Partv from JnY and 111! rupenslbtU\Y for that . .POt1lon
of the Collateral, Debtor' ln<febtedneu under thli SecuritY Agreement bind Debtor'& personal rapreser.t6tlves, sucaBssors and
esslgru, If Debtor !$"more th;an one, !II .their reprenntlltlves; Wl!rrantlop and egroement& ate joint and nvarel, II arw of lh!s
Sacllrlty Agreerl"IGnt b unenforceable, IM unenfofcnblntV or such p:ovl$10n wnl not affect the ehforee8blllty of any othur provhkln
heraof and 11!1 other provltlon.J wiD oomthr.rte provisioN.
SECTION IXr . ARBiTRATION T;HE PAR-TIES FURTH!R AGReE AS FOllOWS!
le} ANY AN.O .At.L CONTROVERSIES BE1WEEN THE PARTIES. SHA\.1. Q"!l" RESOLVE.O BY ARBITRAIION IN ACCORDANCE WITH THE
COMMERCIAL ARB1TRATION RUi.'ES Of. THE AtJERICAN ARBIIRA.'f.ION ASSOClATION IM EFFECT AT r-HE TIME OF FILING, UNLESS THE
COMMERCIAL AfiBITRATlON RULEs CONFLICT YllTH THIS PFIOVJSION, AND IN SUCHEVENT THE TERMS OF THIS PROVISION SHALL
CONTROL TO. THE EXTffiT OF THE CONFLICT, ANY ARBITRA\ION HEREUNDER .SHALL BE BEFORE AT lEAST THREE
AfiBITftA.TOfi& ASSOC!Afeo THE ASSOCIA'riOit AND IN A<:COAOANCE WITH THI! COMMEfiCIAL
ARBffMTION RULES OF THI! AMERICAN ARtJITRAT/ON ASSO:CIATION, FAILURE OF ANY ARBITRATOR TO DISCLOSE ALL FACTS WHICH
MIGHT TO AN OBJECTN:E OBSEfi.VER CREATE A REASONAULE IMPR!::SSION Of THE ARBITRATOR'S PAR'fiAtfrY, AND/OR M_ATERIAL
ERRQRS OP LAW SHALl. BE GRO\JND,S [IN ADDITION TO ALL OtHERS) FOR VACATUR OF AN Af{ARD RENDERED PURSUANT TO THIS
AGREI!MENT,
. I
(b) 'tHE A WARt> OF THE AR.BITRATORS, OR A MA,10RIYYOF SHALL BE FINAL, AND JUDGMENT UPON THE AWARD RENDERED
MAY BE ENTERED IN ANY CQURT, STAT OR FEDERAL, HAVlNG JURISOlQTION, 'fHE ARBITMTION AWARD SHALL BE IN WRffiNG AtlO
SPECIFY THE FACTUAL AND U:GAL .BASES FOR THE AWARD, UPON THE REQUEST OF ANY PARTY, THE AWARD SHALL INCLUDE
FINOINO$ OF FACT ANI? CONCLUSIONS OF LAW ..
(ol ARBITRABLE OISPU'f'ES INCLiJDE ANY AND AU. CONTROVERSIES OR CLAIMS BETWEEN THE PARTIES OF WHATEVER TYPE OR
MANNER, INCLUDING WJTHOQT liMrrATION, (\tfY CLAIM ARJSING OVT OF OR RElA'liNG TO THIS AOREEMENT, A\.L PAST, PRESeNT
AflD/bR FUTVRii CREDIT.FACILITIES ARO/Oil. AOREEMENTSJrivOLVINO THE PARTIES, ANY TRA"NSACTIONS BE'r'WEEN OR INVOLVING iHI!:
PARTIES, AND/OR ANY ASPECT OJf ANY PAsT Ori f'RESENT RELA'fiONSHIP OP THI: Ml'mBS, BANKINO OR O'fHtmWlSE,
SPECIFICALL 'i' INCLUDING ANY ALLEGED TORT 'COMMITtED D'( ANY PARTY,
ldl THE PARTIES SHALL ALLOW AND IN. DISCOVERY IN WITH THE FEDERAL f\ULES OF CfVIL PROCEDURE
FOR A PERIOD OF ONE HVNOREO TWE"NTY 11201 DAYS Al=TE/i TilE FILING OF THE ORIOlNAL RESPONSIVE PLEAOINCJ, DISCOVERY MAY
CONTINUE THEREAFTER AS AGREED BY THI! PARTII:S OR AS ALLOWED BY iHE AftBITAP.i'Q.RS, DtsCOVERY 0\SPU'res
SHALL BE BROUGHT TO THE ATTENTION OFTHE ARBITRATORS BY WRITTEN MOTION FOR PROPER iNCLUOINO RULING ON
ANY ASSERTED OBJECTIONS, PRIVILEGES, ANP PfiOTECTIVE ORDER REQUESTS AND AWARDING REASONABLE ATTOilNE\''8 FEES TO THE
. . . .
ltl IN THE EVWT rHe AGGREGAIE OF' ALt AfFIRMATIVE 'CLAIMS ASSEfliED EXCEED $1iOO,OOO,OO, EXCLU:;IVE OF lrfrEREST AND

PARTIES AND THEIR ATTORNEYS FOR THE FOLLOWING AND .fOR SUCfi AbDU'IONAl. PURPOSES AS iHE. PARTIES OR
ARBITRATION DEEM APPROPRI.ME", lA! TQ OBTAIN AOOITIONAt. INFORMATION ABOUT THE NATURE AND
MAGNITUDE OF JHE DISPUTE AND THE ANTlCIPATED LENGTH, 01'. HEARING,S AND {13) TO DISCUSS THE VIE.W OF THS
PARTIES ABOtir ANY TECHNICAL AND/OR OTHER SPECIAL. aUALIFICATJONS OF THE ANO ICI TOCONSJD!iR, WHETHER
MEDIATION OR.OTHiiR METHOPS.OF DISPVTE flSOi.UtJON M'tc3Hl' bE. APPROPRIAiE, 4ND 12t AS PROMPn'{ AS AFTER THE'
SELECTION OF THE ARBITAATORS, A PR.Et.lh.,ltlARY HEARING SHALL BE HELO AMONG !rHE PARTIES, THEIR ATTORt.YS AND THE
ARBITAATtiRS. WITH THE AGREEMENT OF THE ARBITRATORS ANO THE PAFIYIES, THE PRI!t.IMINAPiY HEARING MAY BE NDUCTED BY
TELEPHONE GONFERENCE CALL RATHER THAN IN THE PRELIMINARY HEARING THE MATTERS THAT MAY E CONSIDERED
SHAlL INCI.UDE, WITHOV'I' liMITATION, A PhEHEARING SCHEDUliNG ORDER IAl EACH PARTY'S DVTY TO S!,.IBMIT A
CI:TAILED STATEMENT OF CLAIMS, OAMAOES AND/OR DEFENSES, A STATEMENT OF THE ISSUES ASSERTED liY EACH PA"RlY AND ANY
LEGAL AUTHORITIES THE PARTIES MAY. WISH TO SR!NG TO THE ATlENTION OF THE ARBITRAiORS!IB} RESPONSES AND/OR REPliES TO
THE PLEADINGS FILEt> IN COMPLIANCE WlTH 2{AJ; (Cl STIPULATIONS ANY qNCONTI!STED FACl5l {01 EXCHANGE
AND OF All DOCUMENTS WHICH EACH PARTY BELIEVES MAY BE OFFERED AT THE FINAL ARBITRATION HEARING: lEI THE
IDENTIFICATION AND AVAILABILITY Of WITNESSES. INCLUDING EXPERTS, AND SUCH ADOlTJONAI. MAnERS REGMOING WITNESSES
INCLUDING lHElR BIOGRAPHIES AND A Sf;{ORT SUMMARY OF THEIR EXPEC\ED TeSTIMONY, (F) WHETHER A STENOGRAPHIC OR OTHER
OFFICIAL RECORD OP .THE PROCEEDINGS SHALL BE MAINTAINED; AND !Gl tliE POSSIBILITY OF UTILIZING MEDI4TION OR OTHER
AI.TERNATI'n METHODS OF DISPUTE RESOLIJ110N,
ltl F6R Of THIS PROVISION, THE MEANS DEBTOR AND SECURED' PARYY, AND EACH AND ALt PERSONS AND
ENTITIES SIGNING THIS AGREEMENT OR Arf'f OTHER AGREEMENTS. BETW!:Ul OR AMONG .ANY OF THE PARTIES AS PART OF THIS
PARTIES"" SHAU. ALSO INCLUDe IND!VIDUAL PAR:TNERS, AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENT&
:P\I.ge 7 ot .,
ANOJOR A:EPRESENTATJVI!S OF
0
.AATY TO SUCH DOCUMENTS, AND SHALL !Ne' ''1) ANY OTHER OWNER AND HOLDE$ Of, 1H,is
AGAEEMENT; ' : '
..
tg! THE MRTIES SHALL HAVE THE JUGHT TO INVOKE SEl.F HELP REMEOIESISUCH AS s1-.0FF, .NOTlFIC:ATION OF ACcoUNT OesTORS,
SEIZUR.! AND/OR FORE"Cl.OSURE 01' COLLATERAL, ANO NOI'j'.JUDictAt. $1\U. OF-PERSONAL RI!AI; PROPER-TY COLLA URAL)
lOURING OR 'Af'TER 'ANY.' :AND/OR. }lE\lU$1 AN.OILLAft'( OA .JUDIClAL !SUCH AS
ATTACHMEN.T;. SPtCIFIC INJUNCTiON OR RESTRAINING Ol!DER, AND sEQUESTRATIONJ
BEFORE OR AFT EEl Atf( THE PARTIES NEED NOTAWAIT THE OUTCOME .OF THEARBITRATION'UFO.RE USINQ SELFHELP
REMEDIES, U.SE OF S1.FHELPOR ANClLLARY ANO/ORPAO\(ISIONAL JUD!ptAt. REM!tD[Es SHALt. NOT Of>ERA'!'l AS A WAIVER OF EITHER
PARTY'S RIGHT 10 COMPJ!I. ARalTRATlON, ANY ANCILLAR'!' OR PfiOVIS)ONAL REMEOYWH!CH WOULD-BE AVAILASU: FROM A COURT AT
J.AW BE AVAILABLE THE ARBtTAA"fORS,
{hi '!'HE PARTIES A<lflE& THA'T ANY ACTION REOAROINO ANY CONfROVERS'f art:W.t;EN THe- PARTI.ES sHft.tl f!tTHER BE BROUGHT BY
ARBITAA'JjiON-, AS bESOf\IBEO HEREIN, OR BY JUDJC!ALPROCEEDINGS, atrt SHALL NOT a'E.PURSUED SIMULTANEOUSLY IN: DIFFERENT. OR.
A TIMELY WRin.EN NO'I'IbE OF INTENT TO ARBITRATE !'URSUAN'r 1'0 tHIS AOAEEMENT STAYS AND/OR ABATES
ANY ANDIALL ACTION IN A TfiiAl COURT, SAVE AND EXCEPT A HEARING MOTION TO <:OMP.EL ARBITAATION ANDIOR THE ENTRY
OF AN OROE_g_ COMPSLLING ARBITRATION AND STAYJNG AND!OR ABATING THE LtTIGATION.PENDINCJ THE FILING OF THE FINAL AWARD
OF THE A,RbiJ.RATORS, ALL fiEASONABLE /JND NECESSARY ATTORNEY'S FEES AND ALL TRAVL CoSTs SHALL PE AWAR,DEO TO THE
PREVAILING 'i.f'ARTV ON ANY MOTION TO dOMPEl ARBITAATION AND MUST BE 'PAIDTO SOCH PARTY WITHIN 'rfiN 110) CAYS OF THS.
SIGNING OF 'I'HE ORDER COMPE\.LINO ARBtTI\ATJON, ' , :
i . ' . . . . . . .
(l) ANY AOQRIEVEO PARTY SHALt. SERVE A WRITTtN .NOTICE OF' .INrnNf iO ARBITRATE TO ANY AND ALL OPPOSING PARi1ES WITHIN
380 DAYS DISPUTE HAS ARISEN, A DISPUTI! IS OEF.INEO TO HAVE ARISEN ONI.Y UPON RECEIPT OF SERVIO! OF JUOJCJAL
PROCESS, JNClUDlNQ SERVICE OF A COUNT.ER.CLAIM, FAILURE 'fG AWRtrrEN t{OTICE 10 ARBITRATli WITHIN THE TIME
SPEOiriED ABOVS: SHALL SE DEEMED 'A WAIVER OF THE, ,1\0QRU:V0 f'ARTY'S RIGH't '1"0 COMPEL A-RStTRA.TION OF SUCH CLAIM. THE
ISSUe OF WAIVf.R PURSUANT TO THIS AGREEMENT IS AN ARSJTRASLE DISPUTE, ,
ij) ACrtVE PARiiciiPAfiON IN PWDINO LITIOATJON DURING 'fHE 360 DAY NOTICE PERIOD, viHETHI::R As PL:AINTIF,F OR D,EFENDANT, IS
NOT A WAJVER OF THE RIGHT TO COMPEl. AF\BITRATIOtt ALl DISCOVERY OBTAINED IN THE PENDING UTIGAT!PN MAY BE US!D IN AN.Y
SUI!Sl!OUf.NT ARBITRATION PROCEEDING, ' ' '
I .
lkl THE PARTIES FURTHER AGREE THAT !II NO AABITRATIONPROCEfOING. HER!:.UNDER SHALL B CER-TIFIED AS A CLASS ACTION- OR
PROCEED CLASS ACTION, OR ON A BASIS INVOLVING C1.AIMS BROUGH'!' IN A PURPORTED REPRESENTATIVE ON BEHALF
OF THE G.fNERAL PUBLIC, OTHER CUSTOMERS OR POTeNTIAl. CUSTOMERS OR PERSONS SIMilARLY Sl'rUAT0 ANO (IIJ NO ARS!TRATION
PROCES.Oif'l!l HEJ\EVNDJ'A. SHAll eEOONS,OLfDATtiD WITH, OR.JO!NED IN ANY WAY WITH, ANY OTHER ARBlTRAiiON Pf\OCEEOINQ.
Ill ANY.AR,BITRAT.6R SHALL 'BE IN THI! SUB-JECT MATTEA OF THE DisPuTE. UQH OF THE PAR'fiES SHALL
PAY AN E!):UAL SHARI! OF THE ARBITRATION COSTS, FJ:ES, EXPENSES, AND pp THI! ARBITRATORS-' FEES,COSTS AND
. {ml STATUtES OF llMITATJONS WHICH W6uLD OTHERWISE BE APPLICABLE SHALL APPlY Tb ANYft.NO AlLCLAIM.S ASSERTED
IN ANY ARBITRATION PROCEEDING HEREUNDiiR AND THE COMMENCEMENT OF ANY ARBITRATION PROCEEOJNG TOllS SUCH STATUtE.$
OF LIMITATIONS, .
I .
fnl IN ANY AR81tflATJON PROCEEDING SUBJECT TO THIS PROVISION, THE. AAB!Til.ATORS, OR MAJORITY OF THEM, AR.e.
EMPOWER,EO TO' DECIDE (BY DOCUMEI-lTS ONLY, OR WITH A HEARING, AT THE AfiBlTAAi-<HIS' SOLE DIJlCAETION) f'REHEARING MOTIONS
WHICH AFtE SUBSTANTIALLY SIMILAR TO PREoHEARJNG MOTIONSTo-DJSMISS AND MOTIONS FOR SUMMARY ADJUDICATION,
(oJ THIS ARBiifU\TION PROVISION SHALL SURVNE ANY TERMINATION, AMENDMENT, 'OR THE IN WHICH
THIS PROVISION IS CONTAINEO,.UNLESS ALL' OF THE PARTIES-' OTHERWISE EXPRESSLY A0REi IN \VRifiNQ,
fp) THh THAT A lNfERSTATE COMMERCE. THE
FEDERAL ACt SHALL GOVERN 'rHE INTERPRETATION, ENFGRCEMEN'I', AND PROCE!D!NaS P\JI\SUANT 'tO THE ARBITRATION
THIS '
\q) 'fH,E ARBlTRATOftS, OR A MAJORITY OF THEM, SHALL ATTORNEY'S FEES AND CciSTS TO THii PR!iVAILINQ PARTY
PURSUANt TO THE TERMS OF 'tHIS AOnCEMENT,
{r} NEtl'HER THE PARTJ.ES NOR THE ARDITftA-TORS MAY DISCLOSE THi! pbNTfNT; OR' l\ESULTS OF ANY ARBITRATION
HEREUNDER WITHOUT PRIOR ()F Alt. PARTIES AND/OR COURT ORDER, '
. .
{sl verJuE OF ANY ARBITRATION J>ROOUOJNG HEREUNOfl. SHALL BE IN BHAP.
SECTION X, IMjtot!!Meov!, , ' ' ' ' ' ,
tel SSurfty !nWf!!l AhJohnt,All rtghls Ottha Seeured hrtY and the Interests absolute al\d urtOondltloriel llrupecllve
of: I . . - .
OJ chang&. 1r\ the tim&, menner, amount Ot place of paymenf okor In any other term of, all ornv of ttie lndebt&di'leu, or eny other
amendment or waiver of or lhY coM em to any departure from tho Nott or eny. othtr Loan Oocvmel'lt;
{Ill any. exchange or release or nonparfeetlon of a!l .or any pert of tM CoUueral ot Other eonateral, or eny from, amendment to,
.Waiver of or consent to from all or fny'of the ,. .
:'(Ill} fulleH extent petmfftod by law, en'{ 6.tMr clrcumstanoet which might otherwl!e constlluta a defenu lval!eble to, pr a discharge of
the Ollbtor or a'thlld piny Piedgor, . ... : . . .
tbl lndemnifinnnon, The Debtor agrees to lndem!'l!fy th& SMured Pl!rty and hold the Sac;uitd Party harmleu from and ttny and ell
liaba!tles, obllgatloru, louu, damagu, poneltlu, e.otlont, ludgmenu, tu!tt, coau, e;cperttet or dlaburumontt of erty ktnd of nature whauoever
whloh may h'fl lmpoud on, lncurrd by, or usrt6d aua.lrllt the Patiy ll\ any .wt.y ltlatittg, In MY way arltlng out of or 1{1 connection wkh
thfa tho LOIJI\ Dobum6nta or the IIAnuctlohl oonfMriPllifed.her!by or 'thereby oUJi.than arlalng out of lhe StoUto&.d
Perty'i clofault. nellllgoitCa_ or wtrlful ltc obllgr.tlona 'Seol}rhy or:.th Wfthout
llmllatlon of tht1ore{lolnll, th6 DebtWI!I re1mbvrsethe "SatUJtd Part-y for-ell expahset_.{lno!Jihng axp.aMU for JegaJ aervlou of evtry kind) of, or
lnofdenu.l to., the riM.otlatlon of, a"!ttttln; 11\to &mf of 1h11 Pr.cvlelol'lt h:mof Md !Jf th.e lndebtadrtut, a'nd or
sll):e, Juse or oth'lr dlspotltlon of, lind ooll6otlon. compr!urtlu or se{tlemant of any of thO Coflattrll1 and
or zuert!ng the rights and claim!' o{ the Secured Party in t.hereof, arid foi tht:care ot ilia CollmraJ and defending or
thti riatits a"J. clft1mnf the Secured;PaJty ln.rujaot th&raof, by Including' expenst of lnsuranca
1
all euch eXP.enm ohe!J
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SEQTION XI: N6 ORAL AOREEMENTS
'
rHeae ABE NO lltJWB!ireN oRAL AGasewsNIS IHS eAarres.
Dated, FEBRl!ARY 2008
DEBTOR:... . , -''- . __ --- , DEBTOR:.
&q,E A'ITACHED-Hl!R:&TO AND _____ ..;_ __ :._ __
DEBTOR: DEBTOR:
By: By
DEBTOR: DEBTOR:
By:
D,EBTOR:
.DEBTOR:
By: By:
Title:
-i

lBCOOOt 06/22/01
Page 9 ot !l
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SIGNATURE PAGE TO SECURITY AGREEMENT
DEBTOR;
Delta Produce, L.P.,
a Texas limited partnership
By: Delta Produce Management, LLC,
a Texas limited liability company,
General Partner
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B.
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EXHIBIT "A"
Eauipment. All equipment ofDebtor now or hereafter acquired by Debtor, including
without limitation, furniture, machinery, vehicles and trade fixtures, together with
any and all aooessions, attachments and other additions to, substitutes and
replacements for and Improvements equipment, whether now owned or at any
time hereafter acquired or made, together with all tools, parts and appurteriimces now
or at any timer hereafter used in and together with all proceeds of the equipment
described or referred to above, including insu.rance payable by reason of loss or
damage thereto, and all proceeds of any polioyofinsurance required on the Collateral
by Secured Party, including any refunds or unearned premiums in connection with
any cancellation, adjustment or termination of any such policy of insurance.
Inventory: AU inventory ofDebtor, whenever'acquired and whether now or hereafter
existing, including but not limited to ail goods, wares and merchandise intended for
.sale or lease by Debtor or to be furnished by Debtor, under contracts of service and
all raw materials, goods in process, finished goods Md supplies of every nature used
or usable in connection with the manufacturing, processing, packing, shipping,
advertising, selling, leasing or furnishing of such services, goods, wares and
merchandise; all certificates of title, manufacture's _statements of origin and other
documents arising from orrelated to such inventory; and all accessions, attachments
and other additions to, substitutes for, replacements for, improvements to and returns
of such inventory; and all pl'l1eeds of such inventory.
Fixtures.
(I) All of the property) personal or otherwise, whether now existing or hereafter
arising, existing or created, now or hereafter attached to or incorporated into
or used in or about the Debtor's premises, including all furniture, appliances,
furnishings, goods, equipment, and machinery owned by Debtor and other
tangible personal property now or hereafter affixed, attached or related to
such property or now or hereafter affixed, attached or related to such property
1
or used in connection therewith, and all replacements, substitutions and
additions for or to any of the foregoing;
(2) All accessories, attachments and other to, substitutes end
for, and improvements of, the property de$cribed in (a) above,
whether now owned or at any time hereafter acquired or made, together with
all tools, parts end appurtenances now or at any time used In connection
therewith;
(3) All pwducts and proceeds, including,.without limitation, insurance proceeds
of, and additions, improvements .and accessions to, all and any of the property
described above, excluding procee<ls used to replace worn-out or obsolete
equipment or other property,
Accounts Receivable. All accounts and chattel paper of Debtor, whenever acquired
and whether now or existing, including, but not limited to, accounts and
chattel paper which arise out of. (i) the sale or other disposition of goods; (ii) the
furnishing of services; (iii) the furnishing of, the use of, or the lease of any of the
Collateral, and (iv) the agreement to provide any of the above; and all proceeds
relating to, resulting from or arising in connection with any such accounts and/or
chattel paper. . I . 1
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General Intanoibies. Ali General Intangibles of Debtor, whenever acquired and
whether now or hereafter existing, and ail proceeds thereof. '
'Together with ali books, records, files, computer. software, documents and other information
pertaining to
1
and all containers and fori the property described or referred to in subsections
; A through E above, and tlw proceeds of ali of the foregoing.
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EXHIBIT
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SECURITY.
AGREEMENT
po E. TR;JI8 .. SAN rurromo. 'fRXAS ?BZQS
oa&d Prtv"l tntet !rtto thl$ 6teurity AgrumMt tn4 fer and valuable coruldat&tlon, tht of whkh Is hereby
acJ:.nowMg;ed, end 1!9fet e!' -
SECTION h Ctutlon Ot SacUI'Ity,lntamt.
Debtor he!eby ;rants to SeM&d P'env a fltst and exetuslva tian and $&UthY ltlterestln a! of 1M personal of Otbto!
1
whtraver Joeat!lt,
and oovi owr.ed Of hete'aftat acttult&d, CnclUa'itlg tht property In p of \his Sacu(ny AllfelllW\t (11\t to 1KUll
pawn ant ilKIJlwfOI'tn&nce Of tht Jndebt$dne,s.s 1<19sett00J 1o SUrlon Ill baklwl. \
SfiOTIQN Jl: of CohttrtJ,
1, 1M If 91111\tBd Itt tho fo!lowfng <lia WI!: ,
a. DHcr-lie the colateral and, appllcebtf, chtdk box" and J)rovid! fnfOfmatlon Indicated below,
SEE EXIII.BIT '
11
A
11
A'ITACHED HERETO .AND INC,ORPORATED IIEREIN
b 'Tha above goolls 111 to fb:;turM M: !dueriba rul estate: atteeh eational
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3 D The. abov mlr.mls oi tM IG(e o.'l and,gas) 01 aovnt1 wlltbo finarreed 11 tht wei Mad or m!rle Med.of the wen
or m1M kH:rlled on: reel Utete; attach atk!itlonal abe$to If ntWeOl
c, II b.1, b.:Z. or b.3 above Is ehecked, u:Wt st.Cirity to be for record 1n trn. rul ettdte r&eords. (The dt!erlptlott of thG
rut UIIIO be sllfftdently spetJifJo u to !llw COI'JSt!Wtivo nOtloe of a mort'iiG on til! lt19lly), .
GJ Tht De'btor not h!vtlan !ntetelt of the namt of $It cord of tM rul utat: Is
D Alt subsdllrtu and repJeoefl'.lll'olA for, .cee.ulons, 6ttethme.ntt, otMr J.dd!tlcns 'nd tooli, puu, U\d tqufptrient wed In
connaetlcn wllh, tho above Ploputy: aM lh' loett.aw al!d tM llflb<lrn.your.9 of a(l!mal; and p!!trV,
f! All propvrty rimh1 tO tht above hueafw IC\lulf8d by Debtor,
F All products, aod prollta of the Co!!atsral era Co<.'llreae Q! ptoQI.IQta tJIIl ptOCeed' .for flnooclng stetM\Si'!t
putpotes Ia not to bo CON We<! u Qlv!ng Deb\01 ony ed<!ltfonel Jigl)ts with to \h.!l CO!Imttlt!. and Deb!Df 1s not $Uihorited to
sd, laue, 01' otherwltq fwnlah Ullkr of malaetvto
1
or as.s.emb!, tha &;o:t-e.pt In ,
wlth tho ptovhfon af thb S8wrlty Agturnent. Arrl ttlditlorul $httU .the 1M roa! or otht.t
nutters are lncarpo;aud In ill'ld n\O.da .a of thh.insiiUmar.t.
2, Cluslty the collmttral undu OM or n10C1I of the foJ!4wlng Bualnus And Comrr.Nee Cfa clai!!lrieet!OM:
Goods
Equrpm.!nt (bU!Inou USB)
Equlpmar.t {ferm usd
lnvu.tment PtoptrtY
tnwuments

Fatm ProdUPi&

lmamorv
CMttelPapM
Letter.OI-Credlt Rl9hll
SuWon Ob!galion1
Liens on Government Assets Accou'tltt
Commerclsl Tort C!ekN
A.Qrlouhutal
Slllu Of Payment lntat19lblaS Md Ptomluory Notu
And to thfl &xtent nofllrted tiW at c;ohteral all UK! product& of tht fore{IO!M
l'age't of'
IBCOOM 06/22/01
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Arr, ierm 1n tha teXat lhn!nus Md tod4 M car er.d In -&M haJ 1M Jntln!fl(l tM
ltiJI\In\MCo-df. .
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TN1 U4.'iM'_.tlt and !ll'allt II I to SI{Wed .Puty t"' Ufil.fC tht 1'!\"l!ll'l od PJYiiiiM"Cif, Jnd the flnt W t:ffi"'NI neurliy
)n!i!tlil t.er&by to Ste\l'e4 P.any ueo.ns \hlli!l'ff!ltld of, tht tQ!IovMg
Arrl mf 11/!r.dtbttdmn, a!ld,.;r obllga;lom C'f Oeot, or ar.y It rnou Uutl oM, PM\'/, Jo*llly Mfot
f.fld In JY'Iltpeelty, whrothllt u bMowtt,IJII.Ifillllot, ot olhet,.Ue, now 01 hetnftlf9Wlng, mattd Mlw llld te;udl$u Ql
ovllfenwl ot u to wtsllM'r.J and ucrued lid wpJ!d attotM)'I' oohctloil cuu, end til othtt
''"" '\':.."!.,_ ., "!. Of '0. """'""" M """ """ "" - 1>'!1: "'' """'d " tna.t J!roa1sSory Noto UJ,. even bertm.th exeroted by L."P a Terna lirnit;ed
partimship and@ peyahla lp tlm order of Soorred Pgrf:y' in the qrjgjml princi-pal Sill of$@ Ql),OO,
wf !urlhlr wtthovt Jmltil9n tol
A. ffl'( 11'16 a!lln!Stb!&dMu oh
Of trmbt!Nn ts nottc-!e!y of Deli:tori at tilT of theM II tl\9fl1hWI ont,lo AI.Jlvao, )o!nt/y trdlot nvtnlly, 1/ld \-1 any
wMtlar u VUJflniOI, orotharwlu, now or 'htrnltuoM"Ig, ctuttd al\dhlt 1Nh;. iWI o1 how of
ads.lrlg, lnclvdhg, wllhWI
e. ltrf commmllllout or !Mebtedruui
t. ar.y eud or ot:Mt wm11met tvPt of ban;
0, any lndtbtld!IJ.u ''lttflog 10 or uvlflil aollni$\Mrdufn, fm, eto,JI .
E. 11\Y exparuu In tM p!'Otu11911 or of tM col tell/ UJY of auch ioanJ, tnd
F. II'i'/ ,xptnlu heu'r6d 1t1 tM of lrif hf1tlu!Mu aMkr ot.!laetblli
0. any lentu or ctt111t etldJor &11111\; O'Jt of, 01 141'11\;tll to Itt uta of cudlt lian;;ctlo!uJ
H. hOlVIVIf, rMtnud, whetllu by pcomlsrotr Mte. bookn!plrlg tnuy, ttandar, oheck1, ;'rdta 01 otlw
ltall'l$, otbylfriljllhttmlmtrorfotm:
tr.y other lt!debtsdntu of Debt tr.dlot Qf tht persON 01 erdltlu au JMh In A. abovt to nv &.!lruhl IMUM!on
tlll&td with Jointly trtJ!or end Ill Ill'( l)lpKhy, WhoiMr u bonowu, QWI'NIIor, or
olhatwlu, ruN or hitteltu owi'r;. fll'tattd eMTw 1tW11a, -."11! or how a'MiMtd 01
J, MY an oxunslcl'4, mod!ic&tkitli, cubstiNtloros Mht tM&walt of ,d, d tht abov hdtbtt&ouiJ
K. Ufi 1/ld dl by SnvrW Puty to prumo UK! cnfM't thiJ hcurity A;ll!tment. lr4tbtldl'out, 1M
mtltltaln tnd tlwl wttlloul IJ tu:e1, amnmentl, altomayt flu 'nd lee'd tXJm>'SS.. ond
expeMu ol u.lil:
L. 1M nk by Dtbtot and*' purc!un by S.CVItd kcoutus: '
M, tl'rt Ill! by Ollltof and the P\ll'oi'.wt by ol 1''111
H. 1&1t by and the putd'lut Stwn4Puryof lnttr>g!b!H;
0, 1M ult by Mto!tnd thl purchm by $110\l"&d P"IY of NO!tJ<IOd
p, any of \ha that trlm af11t fh1 1t11ns of ! pt\ltlo., Ill bJ/\lltu9tcy liv 01 Debt Cit' W'rtltt the BUJkr.tptcy Cc-&1, evan Jf
tl'.l Oblgt!IOM ICCI\It bfcawe of tl\t 3&2 or otht/witt,
To the tXlt<'ll by hw, 1*1 p.rtpoltl MnM II: Is 1hr1 1M !Mtlnedr.tn hclucle .n cbue of wMthtt e<;l<hncad
b'f notu. open eovllll, 01 ott>erwkt, and ,whether lliraet. lr.cfJect 01 ol elau, foun ct p.r1po11 lttd
but not tmi!W to'.. btna 101 19rittlt11tl1. M!r.m or
TM lortgohg shelll.ll'ld6(r.o h Jm<'lulto W tJ.Immt cr fiOII-llldstulee ol co!i.l!llaf lot tueh oi tht of
c.o.'>iltml tMteby, The tMttiteMut 10 1 e/j')itybn.
IV! f'ifi}'ECTlotf Imp!UTS:
1,
Ci Dabtor Mteby wthorttn SaCUiecl f'My to flit l en MIGMed Fk\.onc!n;-S!Uimtl)l. and a CM!In11altcn
Statement {t-o!leatlvtlv refetud 10 If 1ht
I1Q Debtor !lueby tutho!hu SWxed o FJrwo;/ng St6!tmtnt ny or olhu JUI\IIOI'f hns hsttl by
StCIIIItl Puty, : .
Jill suurt-j Pmy thiV nnM prior to !he d11 pfl!cial report lt0/11 th6 Seetuv of St1to of Co'htwtl State, \he Cli&l
Stuo, 1/ld the Dabtor smo 1eKh u btklwl ltht sos tlt l'utv' uclritY
h pMr to all oll'tel Jttufty lnttttm or otM1 Jnterulf rtll&etW In WI raPQ<1, .
M &cwad PJrty thl. tauhta lll!1Y tlrnt IeBoW:?: W Closing 11'1 SOS ftlrPOn lndloamg thtt Secvted Party' uMty lotef"tl' prior to
tB filtl',sr c,ud)) lha repcn.. ,
%, f'OHtiJiofl,
Drotor Ulsll havt of the Cchltlaf. e:<CfPI Whett txprU$Iy lrl.l[ls S.cud!y 0t
PIY to pitfiKit J\5 ,.rulw .,_.tetut by or In aMrtiO/i. to$ ll1i!g ot Sta!ti!Wit1
nCOOt . OG/a,/n
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flQ b In tha of a third partY, Dabtor w;B Join with S$cut&d Futy In r,otlfyin{! tha third pany of Secured
!sWmv Interest end obtlfnll'l9 11 Control Agr-ement from the tNrd ptrty that It b the Co!tatetal fDt the- beMflt of Sscured Parw.
3. Conttol Agrumtntr, wN u.ope-te_With PartY 11'1 obtafnlng' In form and 'ub5tenoo 'at!sfaotOfY to
Sectxod Party w\th l&$paot io Colatml tine of:
{Q
II)
OJiJ Lett&I'.Of-cf&dlt Rll'lh\S. end
(iv) 1eotronl>: Cha!Jel 1"8p{lr.
4. Marking of Chatto{ Papu. Debtor wm nat orsste any Chutlll PIPit ytlthout , lagend ori the Ch<.Uel Paper eeceptap19 to SeCIJred
. .
A, end WNtfindU
Debtor repr"eote' wauants en4 a,grees that: '
{1) Qe.btor hu Ml ptmer and Mhorlty to enter lnto UU. AQteem!Ot./ thla lt!ittoemGnt m' bun duly &l.!thoriied,
&Xfouted and by and oonslh\1\n thir vall<l i'r.d b!rld:ng of Dbtor enfor.:tab! Ill ecM!lilti with Its
t.'o ol third Ptrtlu, llictnn, tlllhorizltii or fUlog with '61'1'f, 90-\-efnll'l<!r.taf authority b raqlited be obtalr,ed ot
performed In eooMQilotl with thlt axeMtM. dd!V8ry, M pMohrunce of thlt ScorltY A;feQlll&nl
12)
13>
141
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All Information and s(tttmints m>io by l>e.blof In any tinanclal. or accounting etataln8nt or sppillatlol'l Jot edt
prklt to, V(tth or to th$ exeC\{Ilon ol thb Secullty AQreement ere end $hlll be We,
comp-'.ete, vdd, end Qei'IUk\t,
owna, or the proceeds of nv w by Seo11red Plrt'f to becorr.t the owner of the f11t frcm tny ut-oti,
claim, resulcllon., len, aG<r\ty'illterut ot enwmbfanee except WI ncllrlty and ian& lot taxes Ml yet due,
No Antncina Stltement eov&rlng thf CoXatml or tts Pfoeeeds b on Re In u.y of flea and Debtor Wi! not MY
flntMlnll Statem&nt <YQtlog .ny ot Dslbtor' Co!!tterl ot lhl ptoeeeda !hare of to heleaftet be on file In 8Nf pub'N Offlt ss
may lja fi!td"punuant to thls Secwlty Asrao:ment.
Deb1or sheD pro-Mo lo Secu'ad P&Jty, upon S&Mtd PartY's IQ !nOludlng but not limited to !1 balance
thut, Inc-oms ltat&mant, etatement of cl$h et'ld .such otflft fltiMW lnfOflllatlM u may U ttqliuted by Sewred Party;
an eppr$1sal of the Co!la!ttel; {Ill tu r&ctlpts: Gvl11vldenc<t of ln$ur.!ltle.!l, and M IllY ctMt lrtfonMtlon requ!rell by Sactlled Pmy kl
coon-ectlon wtt11 or tha Co!f"'l.
{Ell Debtot wiJ Mt 1M Co&feral pr. petmlt \tit Col!atara/ to b4 und In vJo.letton of MY $ltMe, Oldlnance ot othor lAw Of
wll?t tM tenns of e.n"f. RQtcy. ot irosU{'/'10& \lll!r&On; tnd !1\d Itt agentl,
repruantatlvaa, and empfoyau to OxWre the CoJataiBI a1 sD &'lu, and for Woh purpose, Sti.red'f'uty iilay'enter
Upofl ot Into sny premlse.s wh&te \ha Cokter.ll mtY bt' loc:liied whhout be!()Q OUt'lty of, erd/Or held fiabltl to}, trupau. D>ebtot wru
futrhh to Secured P1rty 1.1?011 &II tlformatlon tM Cokter!L.
111 Thl ahaU temtltlln pebtOJ's pc-&seuion or tontto! at &II tlmu at Dabtol'a rkk of lcH Uj'\leu SGcwfd Party has taken
possuslon of tha Collateral, 1rxf b1 kept at Oabtor's sddces$ set forth above whflt &rurtd Petty ll'olly lnsptt lt at time,
except lot 115 tM1pot'Af'l' removalln oonMOtlon with Its on!IMry Uil or unless Debtor ilvtltl$.t Party in wrlt!ng atJd Sec\red
Party consents In Wfitlng In adval'lfl ollts reri\IJWI to an!lther
IBJ Debtor sMII pay pri to aJ 'axes, lena Mil aeal/l1t the CoUateral, al\d upon falure to
do eo, sw.ond l'uty It ltt cptlort. ma.y pay ..-.y ,of tlllm\ 11nd shall be the &cla Judilc of the liga!lty or vaid'JW \hel'e11f end
&11\QUnt to di$oharPt tM ume, Such payment llhaD become Jrt of the Jndebtedness UCIKtd by tNa Agntmtnl
and shall ba pald to Seeund Putv by Debtotlmtr.edlately and without dllm!lnd, with Inter!! thereon at ths mt.Xlm\Jm tate a.l'.owed
by aw!lnbla.law.
{9) Haurd k'osLilu.et must be furrlshed at aft times 1M tM M amount of th5 lndebtedMn whh ll!p&Ot to tl Ccllatata! Uncfurfing
f)DVerege for el end ag&!nn rl*bl ol Rra, Vilndstorm, H\ll'rioano til til$ Co!ltttolal ts written 100 ml!ii ol the
Oulf Coull, Hell and CO\Ia;.se lindudlng C'01t ct debrb NmovaU and such .other risk$ n SUUred reny may require-, lncludll\g:
ateMetd exte!'ld< coverase. such ln$lllantt po!lolea sMJ ttri'Tl$, be In 1 form, for e end bG wrtttlln by
0mpsnlu utl!fsctoey to StWfed l'llt'f, Falkra! ftood hsuranee ls a!s\1 fequlted In tho" ua &Ub-)aet to auch
lou, polloy .sh&ll also a atendud mongagn's tndonement prOVWing for payment ol_ any Jon tQ Party. All
pol!dn of insl:lranoa 1-hllll prOYidR for tell days m!nlmum car.cehtkm to SQMed Partv,
Ev!lklnce or mi.IJI be e copy ol tM p<>l'1' and pay'aije cleuse, ol COV&rllg6 wJinot bo
IIOUpted,
1s s.f.lthorlud to act as fill' J?!btor In obU.in!ng, edJimJn9, totfUn9. and "nc-eJ!r,g such Insurance and
Nldoteirlg any Otalts d11wn by Insurers of the Cci!lanra!. SiCIKed Party mry appfy any ood!rx all pri)C.Uds cl whto!"t.
may be by It Jn peyment of the !tmbtl!llne!:S aewred Wrtby, whether auch lrtdtbtcdneS:t J.s aurrMtl'f dve or not: Stowad
Patty reserves thG -right \0 pu!'OhUG lntttnt lnsvri!OCe {wNch prov'.des only protetlon fot Secured Puty) e{ld add tl:ls
premium fill' tucll lMura06 togetne; whh lnttta.st at tht \can pr&m.eturlty CIOI'Itract rata tn the balal}ee of the ban. This premivm b
due demOl'\d,.or',mJy bt.pa!d.tn lull.at lfl't 1\-na, Tha single lnterut wt!tten by a company aW\Oriwl to
tr&ruact bos!nMs 1rt the of 'J'exas fl!IIS net fbced or apprq:vtd hy the State Qoard of
tis CUlM Panv, In tn sole and without on Secured Party to do !lOr m&Y advtnca and PaY wma Qn behalf !I'd tot
the benollt of Debtor for ttl necuury for tht p,roteotlon tnd prnvatf.on .ol \he Md othet CM.te th!lt may ba
1.pp:oprlllt11, In Sacund Pflrty'a sole d'l!lcmJon, bUt not 1.-nlt< to IMtitaMa prem)urM, ad V$loram tv:n, arod Jttomv't
41\d kgal costa Md' oXpenru. Any w/Wh mY be to p3ld by Party ar.d d for JNurence Pfemlumt, .,
efoce.se;ld, inclvdlng the eout, expenut, al'l<f ettomey'a fua pl}d lnall'f allec'tmg u!d shet bur lnter&5t fft'ffi tht
datu of W1'1 payments at Ult contra.ot lntest tate appted to the tr'rfflttured prindpal btl lane-& and 1M!t bQpald by Debtor to
Saetired' PartY uPoh ilemend, and b.e dnmed 1 put of tf l:lebt and suth In 611' U_PtOU Atri t\lll'l to be
telmbUrud th&IJ bl .SIH)Urtd by tills Stcurhy Agnsment .
1101 Dabtor shall, .at IU own expense, do, make, exeevte and d$1var d 11, lhln9s, wtltinQ! and as Secured Putv
may at any time to prolto:f. e$WI'e or ftS lr'tterestt, alld re/Tiar!W prov!&d In or tm!fH!tinQ hom
this SBCVlitY
{11) Dobtot shn not rent, or othttwl'e dl!pou of the eoiJataral ot tl'tf lntetast therein' except es tuthortr:ed In t.IW SeCI\Irity
AgreAA\ant Ill' In writing by Party, end Debmf $hill keep 1M thefeol, frteltom vnpald
,charS D), taxes-, and {I'M\ Uel'\!l, enoumbtanee and !nttrnto other thtn !hit Of Securid pmy,
and execute etooe Or with Pany any Af.enelo!l (!ocoflU(It Ill' any dOGIIment
W\0 pay .all wnnected co$\$, MlUiliY to prot"t the stOUtftV lntwttiUnd&r thiJ t.Qal!lst tho rights or lnterestt
of'th!rd JlerM:na. lhSQ pty th8 ONtt;ol hn aeerehes 11M catdflom; and ell tmn9 fe&S, cor.tirllnt!on fen, end feu for
certif10ates QOOd tfld othlllolormatlon rtqrhed by f'arty.
fJS/22/01
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lf3) :. l)e6{(ll' ah;rli at' eU tlmo.s 1M CollatB:DI 'eM Its procuds Mparate: iod c!htlrlet from property of Debtor a rod shaU keep
111tate and oomp!ste recOrds of tM Co!'leterat f.lld ftJ proen\li. D-e:b!or hall prmiVe the Colate:al e.rvJ pay aJ CO!!S MCUSery to
do so, h:kldlng tbut not limlted to) feed, II OJage 0?$18, .end UPMS of ule.
lt4) If &cvred Party. she !Ad at eny time be of the op!n!on tm.tIM Cobtettl hn d-:lcllned or mav 1o v.we, or 1$ o\hii./WI.Jo
lnautftcl6n! ttl OOOquatiy HOUft the lnd&bUdM'' or 1hotkl SeCI!fld Puty deem ltnlt lnucute u to of the lnd1btedn5u,
then Pllrty may e61l ftlr 11dd!tlotl.t to ba 11le:d9&d Mid/or toffled by thb AgraMJ11 ntl&foctory ta Sotur8d Porty,
(151 If fN1 C9htenl or pt000$!netude oMgatlons of Wrd par&s to Debtor,'tht transaetloM eraetlng thoee obligations will conform 1o
d to appllaable state and fader a! consumer
(16)
1171
1181
11Dl
(20)
(221
In the Oobtot ot 1ft'/ otMr puson per10ru web to e$111 PtV from taking arq totlotl in C:OMecJion wfth the
lndabtedneu ol ilia ti!I'IIOI'I:tmtnt of Secureif rlgh1; in the CoJaterd, Deb\ot hueby agru, to give Wfltten no&e to the
Pm.!dant of Seoorad Party, e't the t!ddtm of &cu'td Part)' ut fOrth lrt the fiot of tHs SeGW!ty Agraament, Of Mh
other person 01' ;Qdren u Secvred Party may dMJgr.ataln wrll!ng to Pobtor, prior 1o neidng &ny sooh l.iU'!Ctive reEof.
Debw shalllndemnlly and hokl Ntm!en from and any eM d claims, ks1i$ Mid 116bffiiM: groW(r,.g out of ot
rnv<tlng' from this Stctrtity Agteemont without fmltadon, enforc-tment of thb Secvrlty C:a!mt
1
or llaba'rtlts resultlnu from the woss neg!lgel"lt'e or wl>'lfut ITitsconduct of &o111ed Puty, Delxor &greu, 1,1p011 datMnd, to rw1
to Puty 1)\a"amDIInt of 1ny Qnd lll_e.xpansn, lneludlng, bitt nOt Urilit&d to," the feu and clilburlemtnts 113 COI.rls&l &nd ol
&ny axperts aM 'g8nl!, whl:h Sewr&d ?ittj may Jn<ur itl tonfltclloi'J with {e) .tht pttparatlon, execution. de &very, "lj;!ng, rtcord!ng
or adniDbttatlon of thlt Secwlty Apreatnunt or 1M olittl<llng of from toUP$t1l wfth raspeO\ to ftt tlgl\u. tnd remG{IJeJ l.mder
thls S11euritv AgJGement, tol tiM custGdy, prenrvl$on, use ot tlj!uatton of, or th! adfl of, ooll$otlor! from. or otfler rea!hatlon upon,
DllY of the Coliatetfll, exer(.lse or eniQl"Ctmant ol any of the rlahb of Secwed PrW heteltlldu, (dllhe defense by SC>Otlftd
Perty pf any lnlvnc*n' pr04!ed'.ng to tl lhdebteo'Mn or the Caletual. or lei the fenu,e by Debtor to per/(ll"m ot
&ny of the provfs!Ms haraof, DtbtOt 89fte110 pay Interest on any or other sm.s We to Sellurro PettY lnvfl md
e,xcaptlnsuf'llneel that atai'IDt paid wh&n due 11111a1t per Uf1fll.lm oQUalto tha fllphul rata pennlrt&d by law.
As Wditlcnal sewtlly lor tM MrabV u,!gnt, pl<ldge, $M to Party a ncwlty lnternt, ellen
and eontrac!Uill right of nt-oflln end lo all of the 09bto(a tr<M$Y, tredlta, certlflcotu W/01" olhu" property
now In, w at ony tlr'na hOfcefter 1rt\ll't9 within. tnt Cll$tOdy or OGiltrol or Seowtd Party or tny membu !lank Of brMCh Benk of
Bsn:;,hatu CO!pofatlon. whtlther held In a general or tptplal os dopolft, or for nftkuplng or olh&iwbo, Every
svoh stcurfty kltefe4\ and ii9hl of utoff may b-& without demand or natice to D'ebtot. No ttcalty lnterut:or right of S(lt
ofllh&ll be 6umed to' have waived by any act or on tho part 'of Party, or nv ftllutt to exaroJn1uch rlsht of
ut-off o:r to enfOfce Vltne$1, or by 1ny delay In 10 doing, Every right of nt-olf end lnter4at lha! connue In
flillorce and elfaot until au.:h right of aet-olf or .security !nterost b apaeiflollly walv&d or rtlused by an wtf1Al'lent In wrltrng
eKeeuted by SeCU!lld PrtY Thp Js ln eddJtloo to end ootlo llau of an.y dghl$ of allowed by law,
Debtorsh611 asil$t Eieeut6d Party in with the fe.derd As!lgnment of Act (lind tny suocmor atAhl!ts} Jnd tlrr&r
lsws to enabla SeCUt$d F'.n.y 111 bicome 1111 ui%o!ln under &uch Act end otherwhe comply ytlth tiJDh law$, DebtCif thell prMeNe
\he llbRltY of ife\tiOIC, obligore, 11M ntonduy pntka whou art part of lhll Collatant. Dblit 1hBR I"IOt[fy
th6 Peny of erw In otto tb:l C'f In fsGt . .or warranted or ropreunted by
Debtor ln this agreement or fu/1\lshod to Psrty, (It If en'( De feu{( :WSo.
Pebtor wll( 1'101 dow tlw Colle to b!J aff'.x!<' to real utete, eXeept gool!s ldentlflec! herm u fixtures,
bebtor th5ll comply with all envlrOIVMfltef !aWe end ragu!etlon; epp!iceb!o tl) Cbllatera! and the praMlsn In whle.h tha Colllltere!
Ia Joo1ted end ehatl nOUty Pimy upon of anY or othr lntorroatlq'l. fiS to &rt'J envltoi"!I"Mntll hmrds or vlo!Jiion
or Wh !owl. S:ltCWell PJrty msy Impact preml$u In whlch the I locoted end the Collateral 111 10 Its tnd thc1t
cotnpilanca With ti\WOI'Imtntof IJW. Deb tot and hok!t harmbu Secue.d Put'( ,fo1 any lmuch of ll;ot foregoing and' IO>t 1111
io'ut, CQlit, fln8a, inc!ucllng "court cbsts Md attorney'& fen, by Secured i>eny to dofer.Q I, 01' 10 protect ot
the CoUateral ega!nst envlrontMnt&l r!sb, hazards, and otlwr elalnif uhfln9 to tiN Co!lnvnl,
123) Without providing bcUf1d Party with at hast lhlny 130} priOI Writtfl'l no:tke pf Oibtw't to do"' Oabtor, until thiJ
lnd&btbd.Mu Js.pW:Jin Mt, agron I! v.il not:
a, 111 ono tral"l8ttlon qr e nrill$ of mtroe into or CM&Of'Jdate with any otM-r entity, nl!l!f oi ell
of liS cr ln ltlY way Ja.opardhe Ita oorpora1o eKbtenu,.
b. the alate ol ru tMorpotatlon,
o, ltc name,
d, cN.r.ga tl sd<lreu and/or toQ-IItlon of Jts Cblef exewUve
e. fk a UCC-1 Amtr.dm&nt form, end/Of
f. B8 a UCC;l Termlrntlon form.
1241 D.lbtor hn the risk of JOS-S of tho
{26) PJ:ty hes no duty t.o cotect any lnoorne on thll Coteteral or ttl any rlgl\t51elfot.ln; to thll Co!latttal.
S, Spclal fllprtunlat.lon.a Drnl Wa,111nUu."
wampts and tgree! thJU
!II

(3)
If
lal OebtOt' wm lmmPdlately notify Party of the.dlsposNon of any fflentory end 11t Debtor's e;q>IJme \'till as5lqo to
Saow!d Party a fntJ)l'lO!ity securltr kllarest In any rew!tlng atx:o1Jilt, eh.nel psper, o'r lnetmTwnt ot daiiVer to Stl01.ll'cd Party
Cl$h"ln the of tbG ule prlet. Debtor w!U not sell, lea$e, ot Ptherwlse d!s:PQ'$e 01ny Co!klteJal tJKOtJpt In thl!l ordlnary
covmj of without ll"le ptlor writun CON"ent of SeMed PJrty, ,
(bJ Untt default Oabtot may &I tM ord'.nuy OOW"iO or bwlr\81$, ull.. JuG"G u fuml'h Vl'ider contrae.t of Service any of the lnWJntory
Mid by bebtor for wyh p1.11pon, "Pf(l'o'idl!d, I, that 'uth 1.1$11 cf the kwentory shalf not be lricoMMant wlth eny
other prOY!s.'ont of this Saellrlty AgrtttMnt or wi\11'\M tertM or condtlotlll of any poUe[n of thweon. A sale In lilt
ord!Jwy coursa of buMa;_, den not It transfer In par!la! liT tctelutlsfactlon of a debt,
If tho Collateral fno:udes aceovntll . ,
lal E&elreoc.ount in til& wJJ tep!'lltnt the velld,le9llly enflnceeb{a ot>:'lgatl11 olthltd and wilt notbG evidenced by
rrv tnwvmentor cl"lalte! peper; '
lb) The olnce wlwe Debtor keeps Its rtedt COMun!ng eecovntt, tf eny, b the tddrm of Oebtor ut forth at tM begl:l\l'llng of
.thll. Agreement.
If the thaiteJ J)l!per ot dOeuinenut ,
Ia) By de!fverlng e eopy of thla Secw!ty A9feemat'lt to the brokar, sder, or ott)llr person In pom,don Of Cohterol that J; oNttel
paper or SeeiRIIy f'1rty will elfeotlvoly notJfy that ptlion o.f Seo\lfed Perty's lnl&l'$$t In tht Collttertl. OBlivery Of the
. copy of the:Securlty Agrtement will Debtol't W.u.oxtlon \o dt!i\le:f to SOC'.l'td Party eenifle.atu or ot/ur
tvkftncl of tla Cok\1111 11 tocm n h It 1v1hblt, Otbtor wllllrnrntdlltIY dtiiVti" to StOUft-cl PttY ..all chllttl pepu lnd
doournsnu thet ar Col!Bterat In Deb1ate If tNt 1cqulred, DabtOf w!U"dt!Ner It 19 Sacv.:11d
Peny Immediately following ,cqu!$f1lon end elthet endoru It 10 SeWtad arder ot glveS,cvred Pfily 'pptoprljlto
poW"ara, If erw lnWwntntt, cllattl P'"Ptt, rmney or or doe!.l!1'anU. art, at eny time 01 tlmn, lno!uded In 1M
Of/12/01
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Colaterat Whither as prQcud$ rx Dobtor YM pcomptty deliver tht s&me to Swxtd upon the ther&(lf
by 08btor, tnd Ill arry tVtllt promptly demand thersfOI't by. Ssourad 1'1tty. Jf NMSUI)', ll CO!klterel will IJhher bo
ernknnd to Party's Oldel or eccornpll'lkd frf e:<&ellted pow en.
fb} By fi'IUM ttdsfaotnv'to S&t!Ktd Party, Debtor hta'perfe-cted or will perfeot e,ucurfty lnwut In Q<ls r;overed by ch&ttel
paper, II any! In Co!ateral.
14) If the property covered by a Cettlfl(sta of Title: Jf any of title ot slmltlt.doeument at 1ny tfmt and
pc..rnuMit to ths llwa of l.tr( juii'li_otlon, ltSU&d or W\!;ltr.d'll'!g wf1h to th& or any plltt thmo.f, Debtor wll prompi!V
tMu Sewred Pmy -thvreof, tnd Dobtot Wll,pron1PtiV e&\l!t tht 1nt$reat of Sacur&d to be wop.ar!y ooted end If any
of title ot sl<niiN" dotlUmAnt b luued or bUUtan&g at the. .tlma thla Agn,a/'1'\Mt b'wcelivtelf by or on behalf of
Debtor, th4n Debtor hd.hsve u1.ned the of to to hev& properly noted et or Nlo1e1h$ tme of such
eX4cm!on; and Debtor wn1 further. pfpmptly d-eU\'ef to Secured Party any 5Ueh cwtifloate of title or e!miu docl.rmnnl lsJII!d or
oU1stondlnil at tny ttm whh to such Cobterel, ,
{6) If thf b or may b&tome tb:turu on real propmy ti'U(;rlbed S&OUrity AgturMnt. uPon fll!d for roco1d /t)
1M propany records of tht oount'fWhwiln wdl fb:t!Jies art sltueted, shd optrate lito u a fln&nctng statomant tl!.ed.u e fblt\ll"e
!lUng In aecordance wilh SGWPn9.402fel.ot tht Su!lr.a and Coda upon $1Klh.of tha CI)Jatetal vll*llls or ti\!V
bscna fixtures.
{6) DSbtor hu righte In or the power tQ trtn!lu tM Cotlttttal and Itt tb!t to tn; Cohtsr;! ls tree. Of &J adverse lmn1, aeourlty
lntero&ts ant! nstrktloM Oi'\ trantftr or .Pie<lge except ljS cuated bythb Secwlty A!lteel!ltflt,
171 AR eo!latttel o-aru\atlng of goods Is located solely In the ltatGS arid/or slttes &tid Wlfl"tltlted by to
P&ty,
{9) Dabtor'tl
(I} ch!tf executive oflk;t b Jotttd In th& state prEV\oo${y de.slgootod and warrented by Dabtor to S1cut&d PartY!
!Ill &tate of /Morporalk!n Is tht mt pravlously des!gnaud and warranted by 04bt0f to Secure<i
lilil extet ftgaf name Is u 'ot forth In tho: r.m paregrsph of ttis Saeurlty A9fnment ,
SW!'Iotl VII R.Vlfi'S OF DEFAULt. , .
O&ltot the!! ba In c!efau.'t U1Kiar lhlt Sewrtty Agceema{it I.!!)Ofl the ot UIY Clf the folloWklg events or conditions !Mreln Gelled an ,
"Event of '
til The feRurt bv DebtOr or 1!-ny othar hb!t party t6 paywne.n dug the lndebteess elther prlnclpal teres!, or any cthu &\ltll due
under lht tenm ot 1ny lnno.rnMt evid;w:.'ng the lndl!btedne.ss.
121 Default by Oebtot In the pur\ctOO puformanc-e of .MY Of the obSijedont. ltrms or provb!orls ,Or referred 10 In thlt
Security Agroemant.
. : . . ..
{31 Any wanMty, npmlll"lt,tlon, or 8\l\en\clflt In thb SWnlty AgrB!rMI'It or tumlshall to 8&CU'ed Party by .or on bGhslf
of Dbl)tpt Of lf"lo/ othet poraon 01 parw &I COOMctlon with thl; Securlty AQrnment 01" to hWvce Sw.lrtd Peny to tn11k& 1M losN
Ill Ill} fl!OWS to MY! bee.n !aiM In any re.$pt(ll when rM or fun\lahl)d,
!41 Loss, theft. tlult\.l::tlotl, ltXpt u IIVthorhsd In \hi.$ SocurltY AQ/Hm.ent) ot tl"l(IUfl\brlMI!: to or ohny of WI
Colfl!ltlllf, or tha making lsvy, sellure or thtttof tnefeon, ,
l51 Deb tot a da11th. dissolution. tatmfntlkln of exluenco. huolvaMy or"bus!M:safaivrtJ thG. appolntment of a reffivar of fll w any ptrt of
the of Debtor, en usJ.,1nment for 1M OOnefit of by Debtor, the c&tl!ng of 1 Df creditors O.f Debtor, or "1M
anv. prot:eJhla ur.dtr my bM!uuplcy or ins.oMIW/ laws by or agelmt or am 9\lllllntM
1
$VI&tf or endC>ri8f
lot Oibton or tM owurrema of trt of sUcli evtnts desctlbed In thl$ {!i/11!. to any pttton ot patty Kable for the paymant of tM
ob!!ge!Jom, or uny
{6} AAf ol tM flnlt!Oia! c-or\&llM DohtGI' Of ol11ny 11\!.br, gu!llanto.r, sUlety or erldoftlli' of eny of the !r.dabtOOr\6" ptoV6S to
bt
{7) Ttr& Co!latml Ucomos, '1n the Of Ssc\ll'ed Party, Or lnsvffieknt In chalactorot val\lll,
(eJ Any maker, gilarantor, svrew or \.11\dw or with to the ll'ldcbtedne$$ dltfwfU In tflY obltgatlon or bNI!ty to SecuroMI
Puty,
i&l The of MY nWOM\Bf\tally hnardous apijl, dlschuge or other sl.mi!ar event the Co;!leterel ar tM
pnmiJe$11\ whkh th& COIIetellll b located, whether weh event occwi on such premlns or on other PI"MI""'
(10} Debtor, 6f'env of them, or arq g\U1!81\tor, falls to tlmel.y dtllver any aM ell fln&ncW etatenantt, JocotM tax re.tums, cuh ftow
lnf0llli8Jion, b&!.&Ma sheeta, rectlvabta reports, or any othlr.r tax ot ftntMI$111\Iormtlon tt(!Uast&d by StM&d
Party.
SECTION VIJ1 SECURE.D PARTY'S RtCUtTS A.NO REMEDIES,
A, GtMr.l,
Ill
121
131
141
'"
P.arwm''1 u.etclu the rights and remedies elth!;rbe.fore Ev(lnt of Defodt:
Sacuted P.eny may tab. conttol of vrJ proUds of lh Coiateral.
&ewred Party may rt!oaae any Colltteld In Sewred Puty'a pos!esslon to eny Debtor, loln9-0rllfiv 01" othefwtat-.
f?tcvred Pmy rnay 1eke eG/Mll of &1\Y furuk generat!d by the Co!lateuJ, es rofundt from end proce&Os of lowtt!ICil, end rfd.OJOe
&IIY part of the lndebtednen aecordlnoly 61' permit Oebtor to Uit"E! ru:;h funds to repair tH tephc..darn&gtd or c!UttoyM Collatoral
by klwtance.
Sael.JT&d Pany mey req!Jilst !rom tlm to u-r.e, In Sewrid Parw'e to eotlon Md to eny Instrument
Which StO\Ited may deem t"lf.CfUJIY or 111 l-!loompish t.M: of thls. SecU!lty Agreemant lnelud'tll9, without
Pmltetlon. {e) to aelc, detnMid, eoll"t, 11.1e for, rec-eive and g!va tcquh.\el! end tece!ptt f monies due eM to
bsome dill IA'\'Jer ct olllr{ Co&ateret (b) to recelw, flfld c:olleet t.trt drafts: or othtr docume.n\1 &rod
'Chat161 paper ill comeotlon \\ith t1w pncedlng aettons: tel to file .any c!Bims oc tel< arr1 aoUon r.r !MtJMe eff( PIOQU:dlng whlch
Petty dum naee.uuy Or tfetlteb-le fot C!1ecdon of any of the or otherwlu to lU rl!ihU Wl\h rupect to
any ol tha and {d} to eomple11 and algo on behalf of Dtbtor 01U Ot mora pertWna to thll Collate.-61
and fileJM sama In en .e.pJ)I'opriat& The pqWera on Patty h&teUI"!def tra Ukll'l' to prottat tu lnteiestln t/\9
Collateral aM W!ll'tOt &npou rrt duty vpM SKUI"&d PartY to anv aucll poweu. Otbt!)t'a Df SeNed Pllr'f as
8$&nt It snlntetuc and Wll aii"Vfve atiY .. bl;lty of Debtor. '
This StewitY Agfumant, $fctlr&d PJ.rty'a r19hlt hereundar andlot in, lnd&bttdnMS hueby fM.Y I 1n Wt/'Jle "and 1n
J)!rt ffcm t1mt to ti.'J"It, Utd.ln 8ltf wct1 cue _8&0\Jfed Pettyshall be frpm d wlth lf.sptOt 1o.too Cc!atfrtl
so and the uslgMO Jhlll be tlltldr.d to .:1 of the rlght:e, pdvbg&$ .e.nd remetr;os j;fllllted ]TilliS SGC'JIIty A9rHmaot lQ s,w.-&d
Panv 10 tM extent tMume ara MS!gr.ed, End DabtGI' wll asnrt no claim or dtfe.Mes he. may hew tgafnst &eeurod Party agalruit the
.e.nignea,- exeept tho-s& In Ulb Securftr Ag1umtot. In addition, D&btor walve:o efld w!\loot l$'fl &gDut e.nv claims, dtlfonses
or set-offs whlch De biOI toW! men a11a!nst Swwed. Party exQept de{eo$U cii(II'IOt be ,
IBCOOOt OE/2'l/01
l'age S af '
'
I
1
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1''.
(6) SoC\IIOd Patti( may ente; upon Oabtor'a PtM'isas at snv I'U5on!itla 1lrrie. to kucoot th-:1 CollaWaiand Debtor's book4 md
pettGlnlnQ to the end Debtor shl!l 8SsfsrtM-sew6cl f'my In making any
....
(7J Sewted Peny may Mtlfy IM debtOJs or abllgors of at\'f at0Wltt, chute! p!W lnstnm'renta or othtf of
Jndebtednes:; remllted by Debtor to S&ow&d Peny u to piy SeVttd Party directly, SetvrW Pmv may aerount
debton dlt<!ctly to vsrlfy infortnatlOn by o:ebtor.
ISJ Secl.ml Party may raquft! adlf!tlone! CollateraJ ot n,lecl n 'LRUathfactory any propany herufter olfemt by O.bto-r u Collaten\,
191 Secured Partv fl\:!Y from tlmo to time. a certlin of tha Collateral at th.!J end require Debtor to malr!taln
tM lod'ebtedness at or avch perC:Ilntage, .
t10) may 'ptnent for QO!Wirslon to cash any lmwment Ql' or IXImblns.tlon thereof, But !>allY
ah&t! not have any tMy to prmnt lor QMVenlon.bfiY IMtn..mM;; ot Co!leteral.ln Its poM&Wpn liMn h've received ftom Debtor
6etded wrfttm ln6tnKtfons tCl that eff"t at a let In edvlinos ol thlf!n;1 conversion date to m$ke Gwh oonvars!on
.
Tha f>9hU pwor of $ecweii P.erty Yrld ba In and not a h"oltatlon upon, any rights an(! powers of
J'J!rtv law, dst!Whett In this Be.cur\ty Al!feement. or Otherwbe. '
1111 S&Wfad f>MtY hat no obfi9atn to anempt to tsatbty ths ObligaliMt by ookctlog Wm from Any other ptrnon !ltblt for tMM &nd
B!euttd PMty may rtle.aso,.modlty or waive mt by arty other "perSon to aaeure any of the Obllgfitforu, 11 wltllwt
flffeotln!l Saowad Perty's rlghtt lJIWISt Ovbtor. Dtbtot waives 'rr( right lt may have to requl.re SeOUJed Puty to WfC\It any third
padon for the Obligations.
1121 Puty may oorrtply with uw 'tato or feOOrallaw requtmmt;ntt n coonecllon with a ti1$PQ1don of the Collateral and
WDI110t be eonl{dered ed'o'&ruly to affect the nasonabl.MtSI of flr/i safe of tht COllaterel, '
'(13) . II qeoowed J>any ;.!& art( of the Coflatua\ Upon Dab tor wU be 0JW wit1! paytnMJC 1-Cltui'ly tudt by tho
by S&wrld PartY and tppiisd to tM lnde0te1h\ess of tha J'utthasat, In 1M event tha porchBSII fa& to for thO Collaterel,
Se-wtod. Party may the Detxor.JN.!f lit crEJdltad with the prouatb ol
(151 Sewred' J>o1r1Y.hwa no ob1J9:atl(m to a"m., laY<Ir of D&Nor, o_r oril\ paytnMt 01:
Ill th$"Note,
l!l anv of tM other or
PQ JKW other owed to Secl.lfed Pany by Dabtcr or any othu parson.
1161 Thls SecuriW Agrnment tM!I Plnd 1nd tl!t lroure to the of the heirs:, l1gatetw, exeMon. admlnbtlatort, $!J(Imson and
of Party end ahall bb:l peraons who become bo\JIId n- 11 btOrto thl$ saowJty AQJument.
1171 Securltd dae.s hot to any a's!gnm&nt by Debtor excilpt n axptOSSiy provided In thit Soeul:ty AQretJMnt.
)1, Hemtd!n 1n EVtnt of Dofaull
Dvrlng tho exl5tor.ca ol any event of Deteu)f, or In tM BV$nl Seetnd P.1tty dums ktelf lnsac-t.re In tha payment of 'stew-ed
Party may d&Oiara tha unp-aid pmc!plllrxf 11'111 tconmllnttrnt of the mdtb!tOM" !mmtdlttaly dut kl wtle or part, enfor lM
lndebmlnen, wd/or any righ\.8 and gtar.t&d by the lens Bus!Mu Cornmetll11.1 code Of by th!:! Sewr!ty Agr11ement,

111 "nquire Debtor to dtliver to S&CliX&d Party an boob nd reCCJds rmttrl910 tile Col!aterell
t2J reqUre Oebtcr to as$Mlblo the meke It to rartv tt a piau nasonath'y t:Onven!ent to both
131 tab posuS:$!on gf 1111V of th\ fw this pVtpou tnur eny prEm!Sils where Ills loc!!tsd ff this be done W{thc\lt breach
of thi- pe&e>e al!4_w11not be guilty o.r. andlot twld llab!a for, tr65p111J
(4) -n!J, J.oeu, -or of any of the Col\eurilln with \he rl!lhts, remsdlts, md dutle; ol 1 Sieurid
Chapttrs 2 ancl9 of 1m Te:<2s Sllslrmt?\1\d Codt ahar gtvhg nollca u raqlllrtd by those chaptm; wins the Collatarat
tlntens to dttllne rtpkl!y In velue, peritl'leblt. Of woUd bll- sold on e rooognfl:ed mert.e-1, S6euted p,t!Y W}lJ give
ootfes of nv p\Jbao nle of tht Cohtere! or of a tlmt eftu wh!oh It may b! olhotwl;t dt$postcf ol whho\n fLirthu notice to
Ocbtot'i In till' event, wlll ba dnmed reuol\abb If ft 11 mailed, to at tho ltklte.l,' .PG\llfl!!d ln this
at !$an ten daye tillY publlo ul!, 01 ten daVt before the tlmf. when lhd Cc6ataiilllliY be dllpoaod o_l
wtlfiout "furthet Mtl4 10 bebtot, avthortua Ssoured P8rty to dboWm Ot modify MY 1(\d al warrl!lltlu ut forth In SettlOII
9.010ldJ end tdpuJatn and 111/'Bes that&uch a fltld!or not tU!det thfl nfe eomrneroldy
(61 wneod"er any lnownce pol!ciu covering the Cola tent 111\d !11Ceh'a tha UMamod
161 apply any JlfOOOld$ from lfulpo;it!of'l of theCollaur.d 11fw default In the manner spuafliX!In Chaptu 9: of W lexas AM
Commerc-e Code, Jrn:Wil9 payment of Secured P.eny't reuonabkl lllom9f'6 feu Md COUll exptl"dtil
111 U 61spasf!lon flf the Collateralleaws the lri&btednrn VNaUsJie:tf, W !feffc!e.r.ey ftoln all 1\!lb!s p-artiea. of
hQW!ng, prep.allng fot u!a; aa!Kng or the 11\G &hill N!vde SeowW attwMt'l feu 1nd legil cos_ti ond/of
and Debtor a9fe" to pay web oosu, end fees, p/u$ tttemt thereon 11 tho maxYmm BUow\l'd by applioab!e law I
tBI . Se'ovred may retain au or of the Collateral ln. fvll and/o; partW &&ti5factlon. of the Jndebtedneu P>lfWUIIIO Stietkln 9.62{) of
tlw Toxn /wJ. Corr"o/Mrce Code:
19)
110)
Suured Party may, wllhov1 demand or 110tfce of 01/l"f kind', apptoPtf;lto end epp)v towetd tM payment of any ums t!Wn owing t.o
SeCUted P;rty and In such ordN of eppfeatlon u the S&Urd Party may. from _tmt to time e!tOt, any property, balance;,
doposlts, Beoounte or of 0-;btor foteny pV!P%t.b In tilt potseulon Ot of the Sto!Red Peny MY member eank,
b[eneh &n!c: or other WpoRtory Institution of lnterna.t!omt Colporetloi\J end/or '
. . .
Secured p,rty may rame'ay urt defaLilt without walvlng the daiault iui'MdfiHI and may wive arr{ w.hhout wa!vfng any other
prior Ot default,
SECTION Yl!!l ADDffiONAl AoRE.EMfNTS, . .
t1) At 110tka1 and other convmmlcetloni 10 Secwod PJt'( Mreundvt or In c:onoe<on hof6with mall bG lieemed to bno glvel1 wheo
reoelv&d by Party 1n writing bt the flrn ihown hmlnabovt, Any notice- or tlemsnd 01 ott-M tomm'Jnloatlon1o Dtbtot
hstwnder or In oonMctlon herewith msy be gfven 81\d &hill triclusN&ty be dol!med and oomlderN have ehd
1/j)Cn the depo$lt thertof In wr!thg In the Unltad SltiU Md. duly u.d .tcSdrtsnd to Debto< t}\h.et et tha 'trut addre.u, the
flm 1htlwn herelnaboV11, Of 11 the maU\o5r tddlau, It any, glven by Dnd!Of 111h1 ol thl tgroomtnl lot at such
othet address u mw hf;wjbaatt d.lslgMte-.::1 most 18centl'{ fn Wr\U\s by Debtor to &c!KGd Putyl) hoWI!VM', ootlc:a to
g.'v'n or le"C&!ved, shall tlwava bil etltcUve when give-n w ttef.llved
"'
. A mv of thlt Su.urlty .;grurnant or any fnanWlg at1tembnt w.ocrtr-.g.-iht Co!!,atar&f It rulfule-nt nd rMY be filed n a flnanctng:
.mlen-.ent. lnfD!matlon eoneemlng- this IMIIr\ty_lnleresl may t.9 obU!otd ofr)cfl cf Seeuttd J>erty ahown tbova,
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t3) This Sewdty Agi'unMttt m&y only be m<Xiill&d or lfmlted by 'Sfteme!\t Ill writJrli
141 lhb.Meurlty ll'ltarut thlll nalthet af{!'ct 1'10/' bt aff&et'cd by any othat 1aeurlty for aft/ of tM lnd$btedr!W, Ne/Wr axte!ISloM of any ot
the ln9al>!odriws na.t relus" ol env o( Co:lste.tol shil!.affet the vtlkfity of nCU(ftr. with rell!fanoa t6,M'I. thitd puty.
Addlt!Meiy, fot!clo!ure ot thlt ucuritv by fawJ\Ik r.ot IL-nlt S&CUJ!Xf Jlarty' remad'AI, lncludi!1Q fi9ht to ad. tM
Wider tha IHm.l fkiWrity Party than have the to in at tht seme ot
dllfal'Cint t!tpe!l Md no remedy Sl'ta!l be a defense to lilY other. Sesed Ppty thal havo B!l rights 61\d ttm&dfae ctal\\ed by law ot
'otherwl"", In tdditlon to _time prov!d&d ln1h!t S&cwity Agreement,
161 SGcured PMty may remedy any WithQut wtMtig ft. No delay by &cored Puty In hs rights or pertlel)y oxuoielng it$
1i9hts ot tuno<iu !half w'lve further IXetclu Gf those remrd!es or rights'> TN le!Me of Secqted Party to 'fXerels1J eny remsdles ot
Jlehta da&& not waive' $Obse-queflt liWctH otthota rorMdiat 01 t;ohu, Any wa.'vr by S.o!KO<I PettY of any d-efal.llt Wll r.ot w6f-
1
e any
fl.lrthof Ievit. Soctnd P:uty miy tfti dolat.4t w6lvln{l lt. Party'& waiver of arrt t%!-ht Ill th.l!. Seeudty
Agre&ml)m or Mff dela!Jtls blndin{J only If ln. writing.
lSI Ddbtor end S80I.KGcf Party Intend tMt th1 Indebtedness sMII be In $trlol 'Comp#GI)C(I with -appifl)!.bte uwry l5Ws. If at flil'/ time lntere,!t
contrsoted for, or received-Under nv lndebtedM.st setuted by this Sffiltlty A91'&erntnt Of othuwbe In coMGctlon with tNs
00 UsUrioLH under apP!loeb!o law, thtil regarotttlil of the provldons of.thls- Smlllty Asruroent or MY other
ot lnsUUrlWI)t;tvldmting', lrl wltl! any lnde-btedne.u ncwad by th!t Seo!Jiity
'Agreement or &frf ectlon w event w!thtAA limitation. pf1payment of'pr!nclpallK)C/er tM Note or of maMitv by
Se.outed whiCh may wfth to the Note, It Is ag1eed that aD $tim' dettrm!Md: to b& uMI{!oua shitbs tmrj.ad]&te!y
credited by Secured PartY;to Dibtot u a paymurt'of prlnclptl undaf the Note ot It the Note has be-en pakl, Immediately
refUI'Ided to Debtot. AI compennt!on whkh COM!ltut6$ Wetut IXlder applloata law In con/lietlon with any !Mebttdr.au neurad by
th!a Security 'AI!I'eemmt lhali be amartlled, a!!octted, end epraad ovet tlra full period of time any 1s ow&d by
Dabtor, to tha extent WithOUt tht mte dowed by eppllca!M law In effeot from tJme
10 tlma ,uch pil'.-od,
171 Smnd Party may perform ,ny Pabto:-r fill to perfDIITI end ObbtCir agree;CII1 demMd to rel-nblltte S&eur.&d Pty
lmmadll!tely for any tumt to p&ld by S&CUJI!;d r>uty, !Mludlng attOIMya' {ee5 &nd oth\1r txpomsu, plus lntareat on evms
from tht dtlet: of payment at the rate $UIU.d 11'1 the Nota for matured, L!!1pttd Atty !l.ltn to be rlllmhtlt$ed sf)d ba t&Wte_d by
thlt S.Ouritv SeotllmJV, htttraroc:llreifnbulu!Tli!ntt), .
181 Th!1-SeMty Agreemen\ lt be1na end dtliwred end k lnttndtd to bo Jn the Stete of To)(U and thai! be eon$XId
and In teQ(lldtnce with the taws ot ths St81& of e:4pt to ths extent the Codt ptO\oidia for tht Gf W
law of the l>ibtllf State,, , Whtn thll 1;01\ten Jequ!res. 1itlgu!ar !'\OVna ll'td lnclviH tho $rei, The fightS ol SWPe4 PA!ty
under tltl$ Sec\Kity Agt6Gment shallln\Jlato the bello!! fit of Its and autQr.s, Any as.s!Qnment of pall of the lrocSebtedne.u Uld
delivery by Seemed Party of erry p.a1t of the Col!atefof will My-d!Wultge Stlturt>d Party from 1ny tncl'a.ll rospoM!blllty for that ponlcn
of the Cohte!'lt. DEbtor'e Jndebte.dnass oocfer thk SI!C\Jrlty AgreetMnt sha\1 bind Debtor'$ r&prasentatfve.J, fUO"UOJa and
etll(IN. If Debtor It mora Wn ()tl(l, aU thtlt rep;neottt!vet. end agtUmtnta aM several. If toy part of t!\lf
Secwhy Agrumtnt I unei\IOJcuble, tll'i unenlotcubl'ty of liVd\ ptovblon wfl not aflett the enlotuablthy Of tny othtt prO\'W<I!\
htleof 8nd 8H Otlt4r PfOVlsiON W'fl OM$\h!J!;& YA.'ld prov!_t)Qr.f,
SEOTIOf! lXt . , . Af\BITRAnON THE.PARTIES AGREE AS FOLl9WS:
Ia) ANY AOO AU CONTI'I.OVERSJES SETYIE!N THE PARTIES SHALL BE REBOJ.V0 8Y ARBITRATION IN ACC.OROAnCE wiTH' THE
COMMERG!Al ARBITRATION RULeS OF 'THE AMERICAN ARBFTRATtOH A,SSOCJAt.JON IN EFfecT AT THE nME OP FILING,,Utli-ESS ,THE
COMMERCIAl. ARBITRATION RULES CONI'UCT WITH THIS PRCMS!Ort AfiD IN SUCH EVENT THE TERMS OF THlS PROVIStON SHAll
CONTROl TO TH!l EXTNT OF tHE eoNFUCT, ANY ARBITRATION HEREUm>ER SHAlt. BS llfil'ORE AT LEAST THRE'e NeyTRAL
AABIT8A'rORS ASSOC:IA'J'ED WiTH TH!l ARBITMTION AN!? SELFCTEO" IN WIT1j n. cpMMetl,CAAL
ARBITRATION RIJL8 Of: THE AM1UCANARBfl'AATIGN FAll.IJREi OI'ANY TO PtSCLOSI1 AU-FAOTS WHICH
MIGHT TO AN OBJECTtVf! OBSERVER CI'IEAlE.A JLEASONABUIIMPRS810N Of: 'JHEl AttaiTRAT6R'$ PARTIAUfV, /lNO/Ofi MATEIUAL
6MORS OF LAW SHALt BE GROUNDS ON ADDITION TO All OTHERS! FOR VACATUR OF AN AWARD f>Ufi.SUAHT lO THIS
AGREEMENT,
lb) THE AWARD OP THJ;_ARBITRATORS, DR A MAJORITY OF THEM, SHAll SE fiNAL, AND JUDGMENT UPON THE AWA.PJ> RENDERED
MAY BE EUT1\.ED IN AWf COURT, STATE OR HA\'J.'tO JURISOlCTION, THE AI\BITRATION'AWARO SHAlt. 61! IN
Sf>ECWY ,'rHil: FAO'rUAL ANO 9ASS FOR TH.II AWARD. UPON THE REP,UESl Ofl ANY PARTV, 1'HE AWARD Sf!A\.1. INQLUO&
FIUDJN(]S OF FACT . . , , . . ' ,
lol ARBITRABLE DISPUTES INCLUDE AflY P.No AlL CONTROVERSIES Ofl CLAI.MS BETWU:U THii PARTIE'S OP WHA'rE.VER TYPE OR
MANNER. IHCLUDif(G WITHOUT LIMITAilON, ANY CLAJM ARISING OUT OF OR RELATING TO THlS Ad!JEEMEUT, All PAST, PRESENT,
AND/OR FUTIJRE .CREPIT FACiliTIES: N;D/OR tHE PARTIES, ANY TRANSACTIONS BETWEffl OR INVOLVING THE
PAmlES,-AND/QR ANY ASPECT OP ANY PAST 01\ PRESENT RElATioNSHII" OF THii PARTIES, WHETHER BANKING OR OTHE11WlSii,
SPECiflCAl.LY INCJ.\lOiflG ANY toRT COMMmED BY ArtY PAJitY, '
A

'CONTINUS 'THEREAFTER AS AGREED. BY THE' PARTIES OR AS ALLOWFtJ J!.)' .THE ARBITRATORS, .PISCOVarY DlSI'LJTfS
SHAll J!.E BRO!JQHT TO THE AnEmiON OF. BY Mf)TI9N FQR PROPER DISPOSITIOU, Rl14NO ON
ANY ASSERTED OBJECTIONS, PRMLEGES, ANO PROTECTIVE ORDER RliQVESTS AND AWARDING REASONASli! ATtORNEY'S fEES TO THE
fRr;VAf4UO PAlm'. '
lal JN TH! E\IEHT THE AGGREGAtE OF Ali AfFUIIMTIVE CLAIMS ASSatTED EXCE0 5oo,o0o,oo, EXCWSriE OP INTEREST AND
ATTORNEY'S FEES, OR UPON THE WR/i1N REQUEST OF .ANY PARTY, 111 FlUOR tO THE DISSEMINATION OF A UST OJ'I'POT.EI'ITIAI.
AABITAATQllS, THE-AMERICAN AtiBITf!ATION ASSOC!AT10N SHAll CONOUOT AN lU PERSON ADMINISTRATIVE CONFE.REI\'CE WITH TH6
PARTIEB ANO THEIR ATTORNEYS FOR Till! FOLLOWING f'URPQSES AND fOR SUCH ADDITIOUAL PURPOSES AS THE PARTIES OR THE
AMEFIIOAN ARBITRAtiON rf<AY DEEM APffiOPR!ATE, [AJ TO OBTAIN AODJTJOUAL INFORMATJO.N ABOUT THE NA.TURI! ANO
MAON!'rUD.II OF THE DISPUTE f-,ND ll\li ANTIOIPATiiiO UNO:TH Of HEARINGS ANO SCHEDUIJNG; 181 TO 01SOUSS THE VlliW OF TH&
PARTIES Ati.OUT ANV YCHNI0Al ANO/Ofl. OTHER OF THI! NIBITRATORSJ ANb'ICI TO CONSIDER. WHfiTHffi
MEOlA. liON OR OTHER_METHOPS OF DISWTE R!::SO\.UnON fo\IGHl' liE APPJWPfliATE. AND {21 AS PROMPTLY AS AFTal THQ
SELECTION OP THE ARBITRATORS, A PREUMIHARY lU!AIUHG SHAlL H!::LD MIONG 1HE PARTIES, n!EIR ATTORNEYS AND THE
ARBITRATORS. WITH THE AGREEMiiNT OF THE ARBtrRATORS ANO THE PARl'U:S, IHE MEUMWARY HEARING MAY BE CONDUCTED 8Y
TE.I.EPl-!ONE CONFERENCE CALL RATHER THAN IN PERSON, AT THE PRELIMIUARY MEAAINO THE MATTERS THAT MAY BE CONSIOEAED
SHALL INCl.UDii, WITHOUT UMfTATION, A PREHEA.RING SCHSOUUNG ORDER AODRESSING (A} EACH PARTY'S DUTY TO SUBMIT A
PEl'AILlD'STATEMUil' OF Cf.AIMS, DAMAGES AND/OR DEFENSES, A STATfMENT OF THE ISSUES ASSSfrrED 6Y EACH PARTY AND ANY
I.EilAL AUTtlORmES 'rHI! PAlf'n!S MAY WISH TO SlUNG TO nlf ATTENTJOtl OF THE ARBITRATORSJ {8) R!SP.ONSES AtiD/OR REP00 TO
THE" PLEADINGS fii.ED IN COMPt.IANCE \VITH SUBPAA'r 2[Ah (Cl STIPULATIONS &(lAROING ANY Ut.ICONTESUO FACT$: IDJ liXCHANG:E
AND PREMARK!h'G O.F All DoCUMENTS WlliCH EACH PAR'fY BELIEVES MAY &e: OFFEI;ISO'AT FlNA.l. ARMTRATIDN HEAJ\IHG: (EJ 'i"HB
AVAI4\BIUTY OP: WITNESSES,_ INCt.yDirlO EXPEfiTS, AND $UCH ADDmONAL MA'J't!RS REGARDING WfTNES$ES
IUCLUDING THEIR SlotRAPHIE.S ANO A SHORT SUMMARY 01' 1H11'1 EXPECTED TfSTIMONY; tfl WHCTHEll. A STI!NOGRAJIHIC OR OTHER
OFFIC\.ltL RECORD OP THE PROCEEDINGS SHALl &E MAIHTAlNEO!' AND !G) THI! POSSIBILITY OF UTJLfZ!NO OR OTHER
AlTERNATIVE r.!ETHOOS OFQiiwr! RESOLIJTION, .
If) POR PURPOSES OF THIS PARTIES" MEANS o"EzTOR AND SECURED PARTY, AND EACH AND ALl. f'ERSONS AND
fmiTIE$ SIGNING THIS AGREEMI'UT OR ANY OTHER AG!tEEMENTS OR AF!IONCJ AUY OF lHE PARTIES AS PART OF THIS
'j'fiANSACnON. "THIH'.ARTIES" SHAlL ALSO jNCLUDE. lt:OMDUAl PARTNI!M, AfRUAiES, OffiCERS, DIRECTORS, EMPLOYE-ES, AOfiNTS
f)6/22/0l.
.l>ai&7ofJ
---
,,
ANO!Oti RE'l'AESENTAnvES 01' ANY PARTY TO SUCH DOCUMEfll'S, ANO SHAU rNCLUDE ANY OTHER.OWNER ANO THIS
AORE.EME.'IT, ' , ,
f'i!l THE MRTII:S SHAlL HAVE THE RIGHT TO ltNOKE SELF HElP REMEDIES {SUCH AS Noi'!RCAT!ON OF ACCOUI\'T OEBTORS,
SEIZURE AN'PIOR fORECLOSURE OF COUATERAl. AND NON.JUDictAl SALE OF PERSONAL PROPERTY ANO IlEAl. PROI>!I\TVCOLLATEAAL)
BI!PORE. DURING OR AFTER "ANY ARBITRAnOH ANOIOR REQUEST ANCIUARY OR_ PROVISIONAL JUDICIAL REMEDIES fSUCH AS
OARNISHMENT, ATTACHMENT, SPECIFIO "PERFORMANCE, RECENER, /NJlJNCTfON OR RESTRAtNtNQ ORDER, AND SEQUESlAATION}
BEFORE OR. AFTFJ\ ANY ARBITAA110N, THE.PART.IES NEED NOT AWAIT nt! OUTCOME OF.Tii:E ARBITRATION BEFORE USING SELP..HELP
REM EO!!;$, USE OF SEI.F.}!ELP OR AN CR. LAm' ANP/OR PflOVJS!ONAL JOPK:IAL IIEMEDIES SHALL NOT OPEl! ATE AS A WAIVER OF.mHEfl
PAATV'S RIOHTTO COMI'tl, ARBITAATION. AJlV ANCILlARY OR PROVlS.'ONAL Ka.1EOY WHICK WOULD BE AVAILABLE FROM A COURT AT
LAW SHAU be AVAII.ABL! FnOM THE! ARbiTRATORS, '
-.
!h) THE PARTIES AORE! THAT Atri AOTlON Jl.EOAROINQ AtfY COifTROVEMY BETWEEN THE PARTIES SHAU. EJTHER BE !!ROUGHT BY
AH!IITRATION, AS DESCRIBED HEREIN, OR liY JUOJ<:!Al' PROCEE:DlNGS, BUT SHAll NOT BE PUI\SUED SIMULTANEOl.ISLY lrl biFF.Ii.RENT OR
All'ERNATIVE FORMS. A TIMELY WRITTEN NOTICE OF llfTENT TO ARBITRATE PVRSUANfTO THIS AGREEMEN'I' STAY$ ANP/OR ABATES
ANY AfiD A1.l ACTION IN A TRIAL COURT, SAVE EXCEPT A HEARING ON A MOTION TO COMPS: ARBITRATION AND/OR THE ENTRY
OP AN ORDER. COMPElUNG ARBITRATION AND STAYiflQ AND/OR A9ATitiG THE UTIGATJON PEIIDING THE FlUNG OF THI! FINAL AWARD
OF THE ARBITRATORS, ALL"REASQNABU; AND NEC!:SSAAV ATTORNY'S F!:E!S AND All Tf!AVQ COST$ SHAll DE AWARDED JO THE
f'REVAA.ING PAhTV Ofl AlfY TO COMPU. ARBil'f!A'rJON-M'O MUST BE PAID 'TO SUCH l'AAlY WITHW rEH 1101 DAYS OF THE
SIGNING OF THE ORDER COMPRUNG AkDITilATIOH,
{!).ANY AGGRIEVED PARTY SHAll SERVE A WRITTEN NOTICE OF MEJIT TO ARBITRAl& TO AllY AND AlL OPPOSING PARTIES WfTHIN
360 DAYS AFTER DISPUTE HAS ARlSEN, A DISPUTE JS DEfiNED TO HAW Afi.ISEN ll!iCEIPT OP 8EH\'ICB OF JUOJClAL
PROCESS, INClUDING SERVICE OF A COUNTfRClAI1!1, FAJlVRe TO A WIUTTEU NOTICE OF INTENT TO ARBITRATE WITI-IIN 'J"He TIME
SPECIFltO ABOVE SHALl. ee' DEeMED 'A WANER OF THE" AGGRIEVED PARTY'.S n!GH'r TO COMPEL ARBITRATION OF SUCH lAtt.\, THB
ISSUE OP WAIVER PURSUANT TO THIS Mfla:MENT JS AN PISPUTE.
Ul AtmVE.PARTICIPATlON IN PENOfNG LITJGATION OORmG iHE DAY NOTICE PERIOD, WHETHER AS PLAINTIFf OR OEFErlDAJn',IS
NOT A WAIVER Ofl THE RIGHT TO <:OMPa.AflmTRATlOO. ALL tSCOVERY OBTAUIEO IN THE .PENDING UTIGAllON MAY BE USED 1H A'HY
SUBSEQUENT ARBfTRATION PROCEEDING.
{kl THE PARTIES FVRTHEH THA'I' ro NO ARBfTRAT1Dit1'ROCEEOfNG HEW.INPEI'i SHAll fiE AS A OI.A.SS ACTION OR
PROCEED AS A CLASS ACTION, OR ON A BAS}S lNVOLVING CLAIMS BROUGHt IN A PORPDRTW REPfi"ESEHTATJVE CAPACITY ON BEHALF
.OF Tm GENERAL PUBUe, OTHER CUSTOMI!RS OR POT!NnAL CUSTOMER& OR PERSONS SIMilARLY BITUAT"fO AND {DJ NO ARBITRATION
PI\OCIEI?Itro HliREUNDI!R SHAll ee CONSOUbATEO Wfl1i, OR J91NEO IN ANY WAY WrTH, AriY OTHER ARSffRATIOU
PI ARBITRATOR Sfl.l!CTI!D SHALL B!"KNOWUDGEABLE IN THE SUBJECT t.IAmR OF THE DJS?Ui-E. EAC!i OF THE SHAll.
PAY Atl EQUAL SHARE OF THE ARBITRATION COSTS, FEES, ExPENSES, AND OF THE Ak!liTJIATORS' FEES, COSTS ANI> EXP.'iS&S,
(mt , ALL StATUTES Of UMTTATIONS WH!CH WOULD OntfRWISE BE APPUCABU! SHALl. APPLY TO AN'f AND ALL CLAIMS ASSERTED
1N ANY ARSlTMTION PllOOEI!O!NG HEREUNDER ANO THE COMMENceMENT OF ANY Al'lBITAATION PROCEE&lNO TOLl.S SUCH STATUTES
OF UMITA'JlONS.
lnl IN' Aiiv AROITRAnOrl PRciCEtOIG SUBJECT TO THIS PROVlSION, THE Al\!lfTM'rORs, OR MAJORITY OF THEM, ARE SPE.CIFICALL Y
mlPOWEREO TO llECfOE (B'{ DOCUMENTS OM.Y, OR WITH A HIWUNO, AT THE AAWRA"ffM' SOLE lSCREJ'IONI PII.EHeAAING MOTIOUS
WHICH ARE SUSSTANTIAllYSIMILAR TO PIIEHI!ARIIIG MO'JlONS TO DISMISS AND M9TIONS FOR SUMMARY ADJUDICATION.
lol jH!S AR&TMTtOM.PR9VJSION SHAll SURVIVE ANY TERMINAnoN, AMENDMENT, OR !XPJ.RATION OF THE AGREEMENT IN WHICH
lHIS PROVJSION UNLESS AlL OF THE PAATtES OTHERVf!.SE IN Wf\ITWQ, '
(pl THE PARTIES ACKNOWlEDGE THAT 'rH!S MREEMENT EVIOE'NCES A Tf!ANSACTfON INVOLVIN!i INTERSTATE COMMERCE, THE
FEDERAl, ARBITRATION ACT GOVERif'THE! INTERPRaAi'totl, ENfORCEMENT, AtlO f>ROOEEtliNGS f'URSUANT TO THE ARBITRATION
ClAUf)E OF THIS
lql THE AllBfl'MTORS. OR A MAJORITY 0F THEM, Sl-tA.tt. AWARD ATTORNEY'S FEES AND COSTS TO THE PREVAII..WG PARTY
PURSUANT TO THE TERMS .OF. THIS AGRI!EMENT, '
{r1 uaritefl. THE PARTIES NOR THE ARBITRATORSlMY Ol!lCLOSE THE tXlS'l'ENOil. OONTWT, OR RESULTS or ANY ARBITMTION
Hal0ti'DER'WITHOUT PRIOR WRiTTEN COUSeff OP All AUO/OR OOUAT ORDER, ' '
{$) VENUE OF Ar AHBtrRA'nON J>JlOCEetNQ HEREUNOEll. SHAll 91! !u.Jt COUNTY, nxAS,
SECTJON x. M!m".onwn.
!e) Soovr!ryllJtarn! Abso!yta,AJt rigl!U of the Stollrtd PattY end lht &eouity lntuom eMU bG abaolvle ll'ld
' .. . .. . ..
W firf f;hangt 111 thfl *"- tnllllntt, 1rmttnt 01' of of, or In anY othar tenn of, all: or inY of tho lndebte<fness, or a11y oUw
vntndmollt or of 01' any com rot to eny dermUHe from the Piomblory Nqte or any otMr
Iii} any exoh!ngt or or l"i0nperle9tlon ol all Of trrf pert of the Collateral or erq' o!MJ ooluarllt o-r lilY rlllease I tom,
w&lvtr of or e-orn:ent to trcrh art( guuamy, lor all or any cf tM or ' ,
tllll to ti\G fullest extent ptrmltted by laW, eny other wl'<!h might cthelwlsa 0Mtltvte a dfeM avdabfao 11J, o.r a tll.schllgt: cf
the OabtOf or ll tllid puw
lbl loclemn}rteotfun, Tht to Indemnify tM Sotwed P41rty 111\d hold tl)& Samd.Ptrty harm!tn Jrom and &'ii'alrl.st tny ant{ 16
lllobll!dn, lonu, d-rnag.t, Jftnaltln, Jv&9rnultt, ctU11, ectU. expensn or cmbwnmtntl: of 11ny kind of nturo \.VhahOGVtr
whkh rnl)' bt !mpoud on, lnc!JI"ad In' 011!UtJ1td the SeGU!'d In any way u!!lt!n'ii', rn ooy my trblng out of o/ lo ?lMKtion v.ith
thlJ Sorority A;ntment, tht or tht ttansfllltlorU eontempbtod htrtby' 0t thtrebt odm tha11 thoJ trltlr!g out of \ht Seeuttd
hrt(s tirneh, default,. or In Its" thb Siewlty Agrtemtnt 01 tht Pocununtr, \'ltti\Qut
Rmltttlon of tl\s fotegulng, tht Debtor v.-!11 ralmbwa SeW! elf Part)' for ell tl<ponni ltlcllldtQ IXpensn for legal ;uvlcn ot ovary kind) of, or
lnPldintel to, the ll"f, cnteiing Into WlfOI'ellln,llt of tny of th4 ptovb!GrU llmof end of tha lndebt&dnus, Md 1!111f aQtUS'I 01
ath/Jlf'l.d Jilt, lun w (ltbtt dhposltiott of, ahd lilY uchM;t, e-olfectlon. c""omprortlf!'t. 01'" uttkmtnt of ury of tho and
deftndlng oi ..,,jh.VIg the 1!9hU 1nil ohil'tl$ of tho Par1y In thartof, .rtd for th9 CMa (II the 1nd d.fendin!J or 11nutlng
thiJ nd. cli!ffis of th6 StetB"td P.erty In re.sp-Ht thertOf, tiy ltl;atlon or othtrwlst, includln{l e:.rp-on.u of lruvrMCe, '11(\d II S\Klh &Xptnln ihllll
bt tht DeblottlndrbttdMu.
Pa9e J of '
lBCOQQol - Of/22/01
'.
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.. '
SECTION: XI: NO ORAL AGREeMEIJTS
'tHIS wameN-p,MEEM"ENt REPaesoos THE EiNAr MReeMmr Ttl!! PABt!i(ANP MAY uor '116 botnMDJcw BY EVIDENCE
Q;F fB!OB. CONm'POflANiPUS ,<?B SliSstQUfNI OMt MREFMEtli OF THE
THERE ARf NO IINWfltO'EN ORA! MBEMEN!S 91WgE!i THE PAR!J!?Sj
Dated June. J.\- . 2:0 I 0
DEBTOR:
B:
DEBTOR:
By
DEPTOR: DEBTOR:
B I By:
DEBtOR: DEBTOR:
B :
By:
. .

7
Signature "'
Name: :Z>tvc e /1 /U'itr
Tl1!e:
/lr.r-1, 0;?
Page 9 ol J
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EXHIBIT'A'
A. Equipment. All equipmentofDebtor now or hereafter acquire<! by Debtor, lnciuding
:without limitation, furniture, machinery, vehicles and trade fixtures, together with
any and all 'accessions, attaclnnents and other additions to, substitutes and
replacements for and improvements of the equipment, whether now ownad or at any
time hereafter acquired or made, together with all tools, partsandappurlenimces now
or at (illY timer hereafter used in and together with all proceeds of the equipment
described or referred to above, including insurance payable by reason of loss or
damage thereto, and all proceeds of any policy ofiilsurnncerequired on the Collateral
by Secured Party, Including any refunds or unearned premiums in connection witll
any cancellation, adjustment or termination of any such policy of insurancn.
B. Inventmy. All inventocy ofDebtor, whenever acquired and whether now or hereafter
existing, including but not limited to all goods; wares and merchandise intended for
sale or lease by Debtor or to 'be furolshed by Debtor; under contracts of service and
all rawmaterials, goods In process, finished goods and supplies of evecy nature used
or usable in connection with the manufacturing, processing, packing, shippirig,
advertising, selling, leasing or furnishing of such services, goods
1
wares and
merchandise; all certificates of title, manufacture's statements of origin and other
documents arising from or related to such inventozy; and all accessions, attachments
nftdother additions to, substitutes for, replacements for.-improvementsto and returns
of such inventory; and all proceeds of such inventory.
C. Fixtures.
(I)
(Z)
(3)
All of the properly, personal or otherwise, whether now existing or hereafter
!llising, existing ot: created, now or hereafter attached to or incorporated into
or used in or about the Debtor's premises, including all furniture, appliallces,
furnishings, goods, and machinecy owned by Deb.tor and other
tangible personal property now or hereafter affixed, attached or related to
such proparty or now or hereafter affixed, attached or related to such property
or used in connection there\\ith, and all replacements, substitutions and
additions for or to any of the foreioing;
All accessories, attachments and other additiOns to, substitutes and
replacements for, and improvemeills of, the pro party described in (a) above,
whether now owned or at anytime }).ereafter acquired or made, together with
all tools, parts and appurtenances now or at any time used in connection
therewith;
All products and proceeds, Including, without!imitation, insurance proceeds
o:t aird additioils, 'improvements and accessions to, all-and tiny of the property
described above, excluding prQceeds Used to replace worn-out or obsolete
equipment or other property.
D. Accounts Receivable. All accounts and chattel paperofDebtor, whenever acquired
and \Vhether now or hereafter existing, including, but not limited to, accowrts mid
chattel papar which arise out' 9f: (i) the sale or other disposition of goods; '(ii) the
furnishing of services; (lil) the furnishing of; the use of, or the lease of an)' of the
Collateral, and (iv) the agreement to provide auy of the above; aad all proceeds
relating to, resulting from or arising in connection with any such accounts and/or
chattel paper.
E. Genetal Intangibles. All General Intangibles of Debtor, whenever acquired and
whether now or hereafter existing, and ajl proCeeds thereof.
Together v.ith all books, records, files, computer software, documents and other' in.ro'nnation
partainlng to, and all containers and packages for, the pro party described orrefoiTed to in subsections
A tinough E above, and the proceeds of all of the foregoing.
I
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"
REALEST,\TE L)EN NOTE .
. .
-AmOU!lt; SJj._.soQ,oo"O,OO ____ :,__.; __
Fof value received, 'the receipt of whlyh Is hereby undersigned, jointly' and (hereinafter

whether one or more)" promise t<tpay to tlie order BANK OE COMMERCE {hereinafter
at uo:E.Travfs, San 'Antonio, County, :rexu
of . .
. ONE MILLION li.I\OL )lUNDRED. THOUSAND NO/WO DoLLARS . . .
Dollm {S :1 jSOO ,000, 00 . ), In leg;J and lawl\llJlloney .. ofthe United St;!les.of America, with lniore<t as it.
. on tho outstanding date oradV?-U-06 or such p.rlnqlpal UJl.tU paid. . . . ' . .
...
. Tho interest r.ite shall bo per annllill: or
XX Tho r3.to shaU lio 'floatbg . o. 25% percent per annwn f!boVe the NEW YORK
PR1HE RATE. (
11
Prime R.;Jte:') Pelow) as It fluctuates from limo to time: provided.
bowever .. that ln nQ event shall (plus hl thereof, ifauy) be paid th6 unpaid
principal of this Note be less than l(perc-ept annmn. nor more than lbe maxtmuru legal rate
allowed by applicable Jaw. 'l).e starting int'eJ:ost rate on tbls Note s\iaU be . 8.50% . perceoi per
annum, The ute of.lntorest due hereunder shall be re<;omputed as of the date of any change iri the Prime Rate.
. . . ' .
INTERNATIONAL BAN!{ OP COMMERCE PRJMR RATE shall m;au.the allJ1Ual\endillg"rate of!nJ.,esl .
announce-d from ftme to tlme by a' its priloo . .
XX The NEWYOiU< PRJB MTas4atl mepn thO annuallerlding from ti.me to tUne by
1P Morgan Chase & Ce!:, NfjW York, New York, as its prime rate. lftbe New YPrk Primo Rato tills been selected as
the P,.rlnlt> Rateana lfi ll.prlme rate ti not annouuce4 by lf.Morgao Chase & Co., York, York,
then tbe B1p1'k ofCommercOPrltne R*c, minuson,cpet'e>ant bethcrPrimc Rate..
Use dt either ofsald.Prlme Ratesb nq,t tp b!S as warranty or that are 'morp favorable th[Ul and thor
'rate or tn4e]'(, Plat rates on otqer lq-;;11$ or cre4itfacllitfes o.ot basect on,o!her indices- that raic.s tin toans to may not be
made below mch prime r<rte. . '. . . ,
. . ..
lbe it calculilted ona faetor. a 36S.day year, or :t 36tS:dayyear:in the that tbe year leap year, on
the unpaid prlnclpalto the datoa of each the paym.cnt.made first. to the discharge of the ln1erest acaued and'
the balanc:o to the reduction of the principal. ,'Provided; ho.wCyer, lbal in th:e inte!est rate reaches the rate aUovtid
by appUoable taw. said maximum legal Nlte be 90mpuled on a.full <ialendaryear 3651365 days b;asis or oua 360/366 days-basis, in .
. the even,t thae the year ls a l!'ap rear; chm:ged herein contracted for will not exceed maximum by law. :
will bear oomputed on. fJ raP O!J,ien&r yei:r days 'basis Or on a 366/366 basis, In !he event
that the ye'ar li a leap year, at the bistJestlogal rate of interest allowed by l'e}(I!Siaw, unless Federal law aUows a hJgher interest 1;3t,e, in
\\!hi* Case, Borrower agrees to pay tho. rate law .. If appllcable law does Pot set A Jl?.B:<InJum of for
- waturid unpaid theil Bonowengrees that the m!U<;fmum rilt9 for such amounts sbaU be elghte percent (18%) per ann\un
1
. . . . . . . . . . .
To extent qlldwed bylaW, as ib!)-late Play to its tO lnt:rease the lnttre.st
on tPe prlnolp:d ponlon any P.ayment t1:iat Is not by tht;t payment duo date lo tho maximum rate allowed b;,:law,
computed Qn a full cslmdar year b"ts.fs froll1 tQe 'Payment due date until paid, or (U), sl\ou14 any paxme.nt not be {\0}
days of the duo date, requtro Bonower to pay a ono time
11
la!e chaJgo" per late payment,cqua\ to. five percent (S%) of the amount oftbe .
past dUe prlnoipallUld Or tuch'payment, with a'mf$num of$1Q.OO and of p,et late-payment. ThQ "late
tn>\}' be assosse!l.wlthout nol{ce, ru1d shall be. imme-diately due and'pi!yabJe. Tb.ls prov!st,on lil'inappl!cable \f the outstaud!ng
the Note is No late charge wijl be asseHed on any paY!nep.t when ihc onl:/dellnqueqcy Is due. to late
eP,rUer the pa)'lllent 1..$ otherwise Jl . . . .
. . .
aud accrued
Bll!llllllllllllliiii!IIIIIIIIIII!I!IIIIII!\IIIIIJJ' REAL ESTATE Lirn NOTE ;IND. BALLOON RIDER "ATTACHED HERETO AND
.. ... ,. ':>., ,_ HEREIN. . . ----'---.,---
. . .. . . . :.< :-: :
.: .. . ...
.... ''!. . .

'. ,
Plnai.MaturltyDalo: APRil, 12: 20!&_: . . .
Leilder rpay, at its dl*critlon, {ldjust the describedaboye assu1e :pa;me,nts will fully
amortize the note on any lfBaQ.opn: or unbqual paymW.t. . .
. .. . ., . . . ...
. . . . . . . . ' . . . . . . . . :-' . ' . ' ..
M Jtn)' tiln'n AAd from lime to time;wliether or not prlor to a.ndlor d\ll'iQg said 4nder in Its sole and
'1\bs<!lutc discretion, rcscb:o-dulo, rearrange Mdlor in whole or in part, the and and aU
unpaid under iliis No J3otlowor agre-es and prom,bos tO pay Lender au:"aycclerat9d j\Dd pfi a9'f\led and
unpaid interest onsuch principaL No noticO of lrltent to:a9lerate.shall be required of Lender and Bonower expressly waives right
to notice intent to The.fOrogOing.rlght to make den?and for payment Note, . .b;t wboloor In part
may be exercised by iender any relison whatsoever, Whether or not :Sorrower,ls in defau{t bereun<ler and lo advance oflts scheduled
maturUy. . ,' , ' , . . :.
'
'
. . . . . .
The fa !lure of l3orrower \o pay any of ihe above..stated PaymeJlt(s) ofptlnclpal or any interest U;tereoni when th.e 11ame b due and
payable, -sbllll permit Lender at Its opdon
1
Co accelerate the maturity, whh.op.t notice to BorroWer,. of aU
1
or ,an'/ pOrtion, Of the remaiolng
unpaid ptinetpa[ balance oufste.nqill& and all accrued-and lUlp'ald 4lterest Of this Note
1
the Ull\0 shall be due and parable
immediately.
: . . .:.
Lender, at lt! dheretlon, may det)are.all kUlllS owing bx endorsers .an ell Or .gua.rantors) fmmedlatCly.due and' payable
upon itself to affected B:nd/or illsecure by reisott o/any tnatetl:al chAnge tit ruty ofBottoWer's (including 11ny
endorsers and/pr guaratttots) net worth, or by reason .()f any other materfal cbaflge of cqritlltionwb.eilier or not described herelll.
. . . . . . .
and Lender lnt.:nd the loan (the

shall be in eomplla'.nce With US\.11)' lfiWS,
lfat attYthntra.ny lhterest contracted fOr, charged or under thb Note or btherwise con.n.eetlo.n with tho I:.oan would be
usurious under applicable taw, then tegardless of the provisions. oftlib Note or the doeume.nts alld hilirum.cnts evldenelng, securing or
exe'cuted In _connection Wilh the !.<I au .orany action Or (inolildirlg, witliout l.iniltati0;1;1, prepayment ofprlndpal heretlllder
or acce!e'ratioh of maturity by th'e Lendef) Which m!!:y occur with respect to this Note br ,the Lollllt It ls agreed that aU ilUDlS determined
to be wdrlous shall be J.n1Q:l.ediately -credited the Lender as a pay;tnenf.' of.prlnclpal hereunder, or I this Note hM already paid,
!mmedl.ately refu.nded to the All coru.peb.saHon whtch Con1tltut&s Interest undet law tn. connection with the Loe.n
'shall be' protait4, allocated at1d spreadov'er the full period at.tY Indebtedness 4. oWing by Bortower; to the greatest
extent Uic lnaxlmum. tate by applicable law In..effect.ftom titne ro thne durl..n& such
period. : . ,
In no shaU the provision$ 346ofthe Texas FinliD;cecOfie, loan accounts .and
.r.evolvinfi trlparty acco.unis) to the Loah. ' . . .
IN THE EVllNT ANY ITEM, ITEMs, 'l'ERMS OR PROVISIONS Col!'i'AlN!lD IN THIS INSTRUMiiNT Aiul iN CONFLICT
WITH THE LAWS OFTHll STATE OFTilXAS, OR FEDERAL LAW, THIS INSTRUME!'IT S!!ALI:BEAFFECTED ONLY AS1'0
rrS APPL!CI,TiON to SUCH n'EM, miMS, PROVISIONS, AND SHA.U 1N A.t.L OTHilRRESPECTS REMAIN IN
FULl: AND. EFFEcT, IT IS UNDERSTOOD AND AGREED THAT IN NO EVENT AND UPON NO CONTINGENCY
SHALL THE EORROIVBR ORANYPARTY.LlABLE HEREON, 9R HERBFORB
1
BE REQUIRED TO PA'{JNTBRJiST IN
EXCESs' OF THllMTB ALLOWED BY.THE.LAWS OF. THE S'I'ATil OF 'l'EXAS OR FEDERAL J:A W,ll' SU.CHLAW PEltMirs .
A OREA;fER'MTE OF INTEREST, THE INTENTION OF 1flll PARTIES DBIN:G TO CONFORM S'I')UCTLY TO USURY
DR IIERBINAl'TER CONSJ:RUED BY TIJI1 COURTS HAVING ltJEJSPICTION, .
THE )lORROWBit. ENDORSBRS;SUl\llTIES, ClUAMNTORS AND ALL PERSONS To BECOME LIABJ;E ON. THIS NOTE
(THE "'!JBLIClORS") HEREBY, 10INTLX ANp WA!VB EXPRESSLY 'All NOTICES OF OVERDUE
"INSTALLMB)'I'l' PAYMENTS, AND DEMANDS FOR pAYMENT THEREOF, NOTICEs OF INTENTION TO ACCELERATE
MATURITY, NOTICES OF AC'J'1JA.t. ACCELERATION OF MATURITY, DEMAND FOR PAYMENT, NOTICES
oR. DisHoNOR, PROTEsT; NOTICES oF' PROTEST, AND PILIOENcliIN coLLECTioN llliREoF. EAcH oJJuoc:iR . ."
CONSEMTS THAT THE 'LiiNDER OR OTHER i!OLJ;>llR OF, THIS Jl"OTE MAY f>:TANY riME; AND FROM TJ;Mll TO T!M1l,
. UPON R)lQUEST OF OR BY AOREilMBNT WITH ANY OFTHEM,.RENilW THIS NOTE :AND/OR BXTENDTHE DATE OF
. MATURl'rY HEREOF OR C,HANGE THE 'J,'IM!l0R: METHOD OF PAYMENTS WITHOUT NOTICE TO ANY QF TilE OTHER
OBLIOQRS, MAKERS, SURETIES OF< ENDORSERS, .Wi!O SHALL RiJMAni.JlOUND .FORTHE PAYMENT HEREOF."
OBL!Oo'RS EXI'RESSLY.THllLATll FU.IN:Cl OR ANY sun: OR CAUSE OF ACTION JIEREoN, OR"ANY DELAY IN .
. nm HANDLING OF ANY COLLATERAL. OBLIGORS /l.OREE THAT HOLDER'S" ACCEPTANCE OF PARTIAL OF .
DELINQUENT PA YMBNTS OR FAlbi.JRE OJ<' HOLDER 'ro BXJiRCISE ANY IUCJIIT OR 1\EMllDY CONTAINED HEREIN OR
IN ANY JMSTRliMBNT OlyENAS SECURITY FOR THEPAYM!!N1'0F TillS NOTilcSHALL NOT BEA WAIVER OF ANY
OBL!OA'!'JON OF THE OR CONSTIT\)tp WAIVER OF ANYPIUORDRSUESEQUENTPJlllAtiLT,
MAY REMEDY ANY DEFAULT WITHOUT WAIVING THE DEFAULT REMEDIED ANJYf:MY WAIVE A"NY DEFAULT
WjTHOilT IVAIVIN:O i)l:!'i:'OTliER. PRIOR.OR St!BSEQUEljTPE:\'Ai.n.T, . : . . . . . . . .
,' ' ; I ' ' . , '
As security fot Uih No(llj and aU othet indebtMneu Which tp.ay, at any iirlle be owl.ng by BQrrdwer (lind atly ehdorsen and/or
guaranto(s her-to() Le.D.der.Or oth.cr Lellder hereof, BorroWer.(m:i.d. any endone.rs and/oi' guarantOu he.teoi), 'gives to Lender or 6thet
Holde; hereof, a. security l;nterest, a lien and cbl:l.thictual rlght of seto!fin'antl.'tO all oftho'Bci.ttower's.(and anY ehdbrseu and/or
her(!of) cred.Jis, dejlostt accouna, accounts a.hd/or bthetp.roperty n9w in, or at any tinl..e coming within, the
custody or control or Lendef or other Holder hereof, or any member <lJ branch bimk of international Bancshares Ccixporadon,
Whether in general or Special depoSit
1
or for SoJekc!eplng 'or otherwise, Bvet)' such security Interest and right of set off
O).(CJ'.'Clted without dematid or to Borrowei (nnd any ehdor9Crs .an.dlor No security or right of .
seHffto interest shall be deemed to have been waived by act or conduCt on the.Part of the Lender, or by auy
.' fa.Uure tofexercise such rlghf of sotoff or to erU<lrCe such peCurltX interest, or by any delay in so 'dol.ng, Ever)' rJght.of' setoff and
security bltcrest continue in full force and'. effect Until Su,chrlght of setoftnt sepurit)o interest Is speeUicatly !)t released by
an instnmi.ent in wrltlng executed by lender. The foregoing 1s inaddhion t<l and Ju Ueu ofanyrlghts of!etofi'allowed by .Jaw.
. . i . . . . . . . . . . . :. . .
In conneqdon with any transac.tlon between BortnWer 'and Lender at any .tf:ne in the }last
1
present or- futme, rri the event ':Borrower,
or jointly wltli. others, has granted or grants Lender a Uen o.n any real personal ptopeny, Borrower agrees that the
lien on sUch real and/or person\ll property to the extent ofB.oirower's lnte!est shall also secure th'e lddebtedness ofBCirrower to Lender
evidenced by this and all and modifications he reo
Ai Lendel''s.request I)ebior sliu other docuuient.s, slate.ments and
certifiCates oftltlej to perfect, protect
1
11,nd Lender's security interest in the Collateral at the.sOle cost of BorrOwer. Debtor
hereby au:thOrW.s to file a Fh:lanClng,StatCIJlent, an.Atnende.d Flnanch.1g, Statement an'4a Contln"ation fulanclng StateMent
refened t9 as tho "Financing Statement") describlhg ihC collateral, Whero Colle.tetal is In the of a third party,
Debtotwilljoin with Lender in 1lotff)ing:.tbe third ofterider'necurlty lnterest'B:Od obtalnlng a Cont!plAgreement froni the third
pa..rty that ids hOhling:the bbllli.feial for the . . . , :
. . . ' ' \ .
lrtp.is. Note, or .aiJ.Y part hereot is not paid .accordlttg to Its te.tn.ts
1
is placed In the hands of an att.omey fo.t collcctlon, or is
, tb.rough or otherjudicial or nO.n..jud{Clai proceedings, wheth'ef matured by expiration or py the exercise of
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tho optiou Under fo it, and now Uable no\v to IUld shaU
pay an additional amount to aHomey
1
e feos an 'd. usoclatW for Sili9 fer:S and
costs of liquidated tmd pMd by Lender or othenviso 11llowcd by taw, will inter Sf atthe Tate of lnteroit ppptled to
the matured imd pllst-due prlnoipal bal;alCG ofthls N:'ote as rate may ohangO: from to time from due wiUJ Tf;J!ilid,
ln ?n.; legal,aytion .or-prpceedfug, by. or otherwise, is eu.foreement of, or
de9luation of rights lll!der this ap.y.iostnunent 9rwritte11 a'gteetnent require<! or dellveted wider or putsuant to the terms of
this Note, an<flot any contrOversy or claim, whotlior sounding lil coq(ract, tort or statute, legal or equitable, 'involving in any way
fmancing oi the transactlo-p(s), the &ubjCct oftWs Nole, or aiiy other :or aCtual loan or extension of 'the prevailing pa.rl)"
sh.al! be- entitled to rce:soo,able and J?..ece.$'sary attorney's pahUega1 Co'$ts for ihQouse legal
seMce.s), costs, expenses, expert mtness (ees Ppd CQsf.!i, !Uld other neye.ssacy mlido in .connec;tion with any &uoh pctioll or
prooeeding, by lh' fact-finder. '
Lender, in i!s sole and without obUgatlon on dO so: may'adVIl.poe add pay oums Oil behalf and for the bone!H {Jf
!loiTower for costs for the Proto:tion.ap:dpreservation ofthq collateral securing this N.ote and costs that may be
in Lender's sole no.' llm.fted to. prem!Unls,.ed valo'rem taxe.s, and attom6y's fees, ,4y
$\ttnS which Play be so paid out by Len'der aud Jill paid for ,aS aforesaid, (n'oh;ding the' oxp'vnse.s and
attorney's fees paid In any suH affeetlng sR14 ptop&It)' Ucnher0f $haU bW interest &op1 tho dateS of such
pa}'I!lents 111 the applied io tho matuted a&d past-dUe principal ofthis'}'Jote and Shall be by Boriowcr ro Lender
upon deinand, afibe same wl:!ih lsv.aYabl9, and shall be deetp,Qd ll part of the debt tnid recoverable as sucb i.n all
aipccts, r ''
. . . . . . . . ' . .
rlghl to HU. or' any. pa.rt Of of penalty. 1Iiterc.st
. lmmedlately oeaso on any amount so prepaid, All prepa)'Dlents sball be applied to the last matunnginstallmenfs of prinCipal. without
intenuptlng tho ": . )
Any by by an; other persop, partitersq.Jp, Corpor.atlcm, org:mlzatfon. or any other wltbo!Jt tbe
. expr$!SS written CQnsent ofLeiJder, shall n9t releae tho UablUty of Borrower for.the bftl}ls Note. .
. . . .
In the event that the discribed ;e,al sold, conveyed, or otherwise disposed of without the prior. written consent of
the Lender, tho waturlty, of this l:fote m11y, optlonoftbeLeqder, be aCcelerated' and Lender may tnuneal:ltely demand of
tho then outstanding prinofpal sum together With all accrued Bn4 \lllpal,d Interest due thereon: .. . . .
. . . . ,
:SortOwer and Lender hereby expresslY a'clrnoWiedge and agree that Uie. eVent of a 'defa'!lt under this Note or under docum'ent
exocqted by Borrower 1n c:onnl)ption with, tosecure the paytnli!nt of, thls.Note (l).Lender sb'aU not -b.e requited tO comply wjth
Suj)scctlon'3.0.S(d)' Te;<'q8- R9vised Pruiner:;hip {Z) shaU n9t !>e to procd agaiosf or exhaust the assets
ofBorrower boforo an.r. t\}medy one moro of tho of}30JTower or tho of oS\!Ob.partners,
.irnJWR{ITioN,
BORROWER AND U!.NDl<R l<UR'fHll:RXGREE AS
(o)
(b)
(e) .
ANY AND ALL COl'fiROVl!:!iSIES "BEtwEEN 'lilE "PMTIES, EXCEfT SUCI{ CLAIMS .AND
WIDCH Al\1! CONSUMJ<R. RI\LA'fl\\'> AND mVOL-yE AN AGGRE(),\TE AMOUNT IN
'CONTROVJORSY OF "(,ESS TIJAN TEN XHOU$.AND DQLLAJ\S.($10,000,UO)i SHAL):. BE Rl\l!OLVllD BY.

Al\BlTRKflQI'( CONFLICT \VJTH THIS PROVIS!OI\, ANii IN SU<;H EVllNTTllE.TERMS OF J;ffiS
JIROVIS)O('!"SIULt: TO EXTENT pl' T!IE CQNFJ,!CT,. 1\0l'WlTI{Sl'Aljll!NGANYTIUNG
CONTAINED )!EREINTO 'l1IE <;:ONTRARY, SAVE: AND )!.XCJEP+ (k), (nl)i (o), (p)
1
AND (s).
lp;REIN, THOSE CONsm,!l\R RELATED CLAIMS A1iD CQNTRPVllRSl)lSINVOLYING AN i\GGREGATE
AMOUNT." OJ' LESs: tHAN TEN .THOUSAND DOLLAJ\S(SIO,OOQ,OO) SHJ,LL BE CONDUCTED IN"
AC0RnANCE WITH Tl!EAMEIUCAN ARBITRATION ASSOC!ATION FOR TRE RESOLUTION OF
.
Al\fi:RICAN AllBITRATlON ASSOCIATION AND SELECTED IN ACCORnANCE.WITll Till\ COMMERCIAL
AI!BITRATIONRULRS OFTHE.AMEI(ICAi'!Aiull.TRATION ASSOCIATION, FAILURE OF ANY ARBITRATOR
: 'fO Il!SCLOSll.ALL "f.}l'S WffiCH MIGHT TO .AN onmCTIVE OBSERYJIR q\EATE A REASONABLE
IMPRRSSION OFTllE ARBITR,.\TPR'S PARTI,ILITY, AND/OR MATER!A.L ERRORS OF LAW SHALL BE
GROUNDS [IN ADDITION TO AL):. OTilliRS] FOR YACNI'UR OF AN AWAJ\D R:I<N!>ERED fURSUA.NT TO .
THIS AGREEIJfl!NT,
. . .
THE AWARD Ol:" 1'HE OR A MAJORITY olr TliEM, Bi;

AND JUDGMENT
Ul'ON .THE AWARD RENDERIID MAY BE ENTERED IN ANY COURT, STATE OR FEDERAl;, HAVING
JURISDICT!Ol'!, THEARBITRA,TION AWARD SI!ALI,BE IN SPECIFY .TRE fACTUAL AND
FORTHEA\V,.\RD. Ul'ONTHE REQUEST Oli ANY.PARTy,_T!Il\ AWARD SIIAJ.,LINCLUDf,
FINDlNGS OF PACT AND CON'CLUS!ONS OF LAW, .
ARBITRAlltEniSPUTES INCLUDE .o\NY AND ALLCoNrn:oVE:RSP.!S Oil BETWEE!l TIUiPAI\TIES
OF WIIATIIVllR T},'PE" OR )IL.\NNEi\;lN<;:LUDING WITl!OUT LIM;!TATION, AI'!'{ CLAIM AJUSI!'l(f OUT Of
OR RELATlHG TO TillS NOTE, J\r,L FAST,.Pli.ESENT AND/OR F]IJ:URE Cl!ED!T Ff.CILITIES "AND/OR
AGREEMENTS lNVPLVING"THE PARTIESoANY TRANSACTIPNS DETWEEN OR INVOLVING THE
PARTIES, ANn/OR ANY ASPECT. OF ANY PAST OR PRESENT OF THE PARTIRS, WHETHER.
BANKI!'l\> OR OTHERWIS.E; .JNQLUJ>ING A,NY ALLEGEDTORT COMI\1l'I:TED DY ANY
j.'A!\TY. . . . , . .
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PARTIES.SllALLALLOW AND PARTICIPATE IN DisCoVJlRYINACCORD,u;CE wiTH THE FEDEEAL
RULJ1S OF CIVJL FOR A 'PERIOD OF ONE liiJ:NDru;:D t\\I:EI!TY DAYS .AFTER TilE
. FILING MAY COlfl'INUETliEREAF1'ERAS
AGREED JIY TilE PARTIE$ OR AS ALLQW:ED BY TliE.ARBlTRATOI\S, trni\ESOLVED D!SCOVEJ.\Y
'DISPUTES'SllAtJ,.l(& BROUG!l.'l'l'O TliE'ATTENTION OFTliE ARBl'l'RA'rORS BY W,li.rr'rEN MOtioN FOR
.. PROPER DiSPOSITION, 1NCLUJ>ING. RULING ON'ANY AS.SERTEI> PRIVILEGES,
PRO'l'J':tTtVE ORDER MQUESTS ANI> AWAJIDiNG RJ!ASONADLR . ATTORNEY'S FEES TO THE
P.llEVAILINGFARTY, : . . . . . . : . ' .
... . . . . . ,
(e)' IN M EVENT TliE CLAUd$ ASS);)RTED EXCEED SS00,000,00
1
.: EXCLIJiiiVE OF INTEMSTAND ATTORNEY'S FE!ES,OR Up()N THEW!l,I'M'EN REQUEST OF ANY PARTY,
. : (1) PRIOR tO TllE Dl$SB)IIJNATION OF A.LIST OF .POTEN'l'JAL ;\RJJlflUTORS, TliE AMERICAN
. A.RBITRATION ASsOCIATION SHALL CONDllcr AN ll'! PERSON'ADMINISTRATIVE CONFERENCE WITH
.<Q.
(g)
. (h)
(I)
. THll PARTIES AND 'tHEIR ATTORNEYS FOR THE FOri.OWING pU)U>OSE,'lA.ND FOR S1JCJIADDITIONAL
pURPOSS;AS Tlffi PARTIES OR TilE A!II:RICAN ARBI'rRATION ASSOCIATION. MAY. DEEM
. APP.ROPJU..\.t'E, (A)l'O ADOUTTiiE-NATUM.;<NIJ.MAGNITi:mE OF.
TllE DISPUTE AND M ANTICIPA'l'ED LENGTH OFlffiARINGSMro SCHEDU,LINGr(JJ) TO DISCUSS'TIIE.
viEW'OFTHE PARTIES AOOUT AN\! 'l'ECHNicALANii/OR OTliER SP:ECIAL QUALIFICATIONS OFTJm
:ARBITRATORS! o!.ND.(C) TO CONSIDJm, WIIETHllR OR'OTllER OF DISPUTE
' . RESOLUTION MIGHT 1JEA.PPROPRLll'E
1
AND (2) .
4
s PRO)\n'TLY AS PRAcriOADLE AFTER THE
SELECTION OF THE AR!liTRATO.RS, HE,ut!NG SHALL llE liELP AMONG THE PAltTIES,
' THEIR A'M'O:RNJiYS AND THE ARJJITRATO\!S. W!Tll'TliE AGREEMENr OF'l'liR ARBITRAToRS AND THE .
PARTIES, THE PRELIMINARY HEARING MAY BE CONDUcTED BY TELEPHONE CONFEMNCE CALL
RATliER THAN IN PERSON, AT Tli:E 1'RELlMrNARY liEARiNG TliE. MA'M'ERS TI1AT .MAY .BE'
;CONSIDERISD'SHALL;INCLUDE, WITHOUT LJ:Ml'J:ATIOJ:!, A SCHEDuLING ORDER
. JillDRESSING (A) P.AI(TX'.S. DUTY TO SUBMIT ADETAILJ;;D STATEMENT OF
AND/OR DEFENSES,. A STATEMENT OF TIIE ISSUES ASSERTED BY EACH PARTY AND ANY LEGAL
. AUTilORIT!ll$ TliE PARTIES BRIN.G TO TH ;\TTENTION OFTHE ARlllTRATO.RS; (ll)
: iU;:SPONS]!S AND/OR!\EPLIES'I'b ?:liE PLEADINGS FILED IN COMPLL\NCll \VITH SUDPARTl(A)I (C)
. stiPULATIONS REGARDING ANY FACTS! (D) EXCltANGE AND PREMARKING OF ALL
DOCUMENTS \VliiCH J;!ACH P.ARTY MAY JJE OFFERED AT'T:ll:E FiNAL ARBITRATION
JIE,ut!NG\ (E) THJi IDENTIFlCATlON AND AVAILABILITY OF WITNESSES, INCLUJ>ING EXPERTS; AND
'sU,CH ADDITIONAL MATTERS REGARDING WITNESSES INCLUDING TliEIR BI!JGRAPHIEs AND A
SJIORT SUMMARY. OFTiiEIR ExPECTED T]\STIMOmf, (F) WliETIIERASTENOGRA.PHIC OR OTliER
.OFFICIAL RE.CORI! Oil THE PROCEEDINGS SHALL BE MAlNTAIN:ED; AND (G) TliE POSSIDILITY OF
UTILIZING MEPI;\.T!:ON OR OTl'JER ALTERNA'tiVE M:ETHODS OF )liSP UTE RESOLliTION. . .
. . .. ', . , . . .
.ilOR PURPOStS OF THIS PROV\SION, PARTIES"- MEANS BORR(>WJ1R AND LENDER, AND EACH
AND ALL PERSONS AND ENTITIES SIGNll'tG THIS AGREEMENT OR AN'{ OTliEI\' AGREEMENTS
BETWEEN ANY.OFTHE PART.i:RsAS PART Ol'.THIS TRANSACTION, "THE PARTIES" SHALL
ALSO INChUDE INDIVIDUALPARTNim,8
1
AFFILIA'rESi OFFICERs, DIRECTORS, EMPLOYEES, 'AGENTS
A.NliiORREPllllSEI'o'TAT!VES OF ANY PARTY TO SUCII DOCUMENTS,AND SHALLINCLUJ>E ANY OTHER
OWNEROO:I!6LDER.Ol'TlUSAGMEME.NTo : .' " .
'THI1 PARTIES SliALL.llAVE THE RIG liT TO INVOKE SELF- 'IIELP REMEDIES (SUCH: AS SET-OFF,
NPTIFICATION OF ,AccoUNTD)!)lTORS
1
s.Mz!Jru! Ai'ID/OR FORECLOSUM OF ci>LLATEEAL, AND NON
.JlJDICIAL SALE OF ?ERSONALPROPERTY AND REALPROPAATY COLLATERAL) JJEFORE, DURING OR
:Ali'TER ANY ARBlTRAT.JON AND/OR REQUEST ANCILLARY OR PROV!S!ONALJUDIC!At Ml\tEDIES
{SUCH AS GARNISIIMENT, ATTACIIMENT, SPECIFIC. PERFORMANCE, RECEIVER, ll'!JiJNCTION OR
Rl!STRAININ<:; ORDER, ANi> SEQUESTRATtONjBEFORE OR tU"''ERANY ARJJITRAT!ON, 'I'Ji:EPARTIES
NOT AWAI'URE OUTCOME OFTHEARBITRA.TlONBEFoRi(USING REMEDIES. 1JSE
OF SELFHEP. OJ\ANCILt.ARY AND/Ol,t PROVISIO)'!AL'JiJDICIALREMEDIES SHALL.NOT.OPERATE A.S A
WA!VER OF EITHER PARTY'S RiGHT TO COMPELARBITRA'tl()N, .. ANY ANCIJ,.I.Ai\Y OR PROVISIONAL
RllMEDY WHICH )'10\ILIJ JJE AVAll,.AJ!LE FROM A C!>!IRT AT J.:A,W Sii:ALL DEAVAILAillJE l'ROM.l'HE
. . .. . . , . . . .. . . . : . . . .
. THE PARTIES AGJ,!RE THAT ANY ACTION ltEGARD:IN<.J"ANY CONTROVERsY BJi'J:WilliN THE PARTIES
flliALL 'EIT,BER BE BROUGHT .BY. .AS DESCRiJJ.Ei:r;HERElN/. 6R DY JUDICIAL
l,'ROC!i;EDINGS, llUTSHAL'L NOT Bt PuRSUED SlMuLTANJlOUSLY IN illi>FERENT OR ALTERNATrYE
FORMS,. A T)MELY. WIU'l:Tim NOTicE OF INTENT TO ARBITRAT:E P.URS1JANT 'tHIS AGMEMENT
STAl'S AND/OR ARATES ANY MID Att AcTIONJN A TRtAL co)JR'r, SAVE AND EXCEPT-A HEARiNG ON A
:MOTiON TO COMPEL ARBITRATION AND/OR TliE ENTRY OF AN ORDERCOMPEiliNGARBITRATION
AND STA.YING A.ND/OR ABATING T.iiE LlT!GA'l'IO.N I' :ENDING TliE IDuNG Ol!Tiril FINAL AWARD OF THE
AJ.\.BITRATO.ll,S, ALL REASONADL)I.A.ND'NECllSSARY ..1-'t.rORNEY'S :tiEES.A.ND .U.L TRAVEL COSTS
. SiiAr;Lllll AWARiiED TO TilE i'REVAmiNG. PAATY. ON ANY M'OTION r<i COMPELARJi!TRA'riON AND
. MUST'llE PAIDTO:SUcli PART.Y W!THIN.tful (lOj OF OFM ORDER COMPELLING
ARBITRATION, ' . . ,' ,
ANY PARTY SHALL SERVE A WRrriN NOTICE OF INTENT TO ARBITjlxr.E TO ANY AND .U.L OPPOSiNG
PARTIES \yiTIIIN 3QO. DAYS AFTER DISPUTE p:As AwSEN, AD!SPUTJl:JSlJEFINED TO HAVE ARISEN.
ONLY<lJ!'ON MCEII'T OF SERVICE OF JlJD!Ci.AL J!ROCESS; INCl.UDING SERVlCE OF A COUNTERCLAIM,
FAILiJRE TO SERVJI.A W!UTTEN NOTICE OF iNTENT TO ARBITRAT:E WITIIIN THE TIME SPECiFIED
;\,BO\'t $HALL.llE J)EEMED KWAIVER OF THE AGGRIEVED PARTY'S RIGHT TO COMPELAtlJJITRATION
OF SUC!LCLAiM, TilE ISSUE' OF \YAIVER .PURSUANT TO THIS AGREEMENT IS '>I.N ARBlTRAD/-E
DISPUTE.. . '
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Q) . PAimciPAl'roN lNPENolNG.LriTGATION .THE 360 PAY ('IOTicE .. WmTHER
AS PJ;iAlNTil'F OR DEl'ENDANT, IS NPT A Wi\Nl\1! OF THE MGHT TO CQMPELARDITRATION, ALL
DISCOVEI\Y OB'!'AINJ.iD. IN TltE i'ENDlNG,L!TIGAT!ONMAY BE USED IN AN)' SUBSEQUENT.
ARlliTRA:FJON.pROCEEDlNG. , ' , , , , . .' . .
(!<)
Q)
(m)
(n)
(p)
.(q)
.(r)
(s) .
THE FdariaR ..\'GREE THA'f SH:u_L BE
CERTIFIED ASA <;:LASS. ACTION Oll PROC)!lED M"A CLAS.S:ACTION, OR ON A BAStS JNifOLY!NG cr,,AIM&
BROUGHT J1l A P.URPQR'!'D REPRESjl/ITATIVE ON BEHALF OF THE GENERAL PUBLiC,
OTJl'ER cu?f{!MJi;RS OR POTENTIAL CUS'rOM:i;RS OR SITUATED AND (11) NO
ARlliTRATION'j'R<;lCEEPlNG HEREUNDE.R SHALL.BEC9N'SOI,IDATED wrt:ll'; .OR ifOINED IN ANY WAY
WITH,ANY OTHERAiUliTRAUOt;PROCEEDIN'G,'. ' ' '
ANY sllLEc'riD IN THE. oi!
DISPUTE. EACH oF THE PAI\TIES.SHALI,PAY'AN SIIA1U! Ol'THE' ARBITRATION COSTS, .FEES, ,
EXPENSES, AND OF'r.l!J; AII'DfFRATORW )'l!ES, AND EXPENSES. . , .
ALL STATUTES 01' 'i\'HlCH bTHERWISJ\.Bl\ APPLY TQ
AND A):.L. CLAIMS ASSERTED IN' ANY ARU!TJiATION 'PROCJil\DlNG HEREUNDER AND THE
COMMENC,EMENT OF ANY ARBffRATION Pl'\OCEEDJNQ TOI,LS SUCHSTATUTES OF J;i!MITAT!O!'!S.
IN' AN'Y ARBITRATION TIUS PROVISION; THE ARBITRATOI\s, OR IIL\,roRirY
{)PTHE!if, .AREsPECIPICALLY EMPOWERllD TO DECrnE (iiYDOCUMENTS ONLY, OR WITH A HEARING;
AT THE ARD!Tl\ATORS' SOI,E DISCRE'[!ON)J.'l\E,HE,I.li!J'IG JI{OT!OI.!S WHICH ARE SUBSTANTIAI,LY
SIMILAR TO PRE-HEARlNG,MQTIONS TO D!$MISS AND MOTIONS FOR SUMMARY ADJUDICAl'ION,
.. \ . .
TillS ARlJITRATION' Pl\OV!SION' TEaiinNAT!ON, QR l!XPmATION.
01' TH)! A,QREEJI{ENT lJ'I WHICH TillS IS CONTAINED, UNLESS ,I.I,L OF THE PARTIES
OTHERWisE E.XPRESSLY A: CREE .IN WRITING, , . . . ' ,
tHE .PARTIES AcKNoWl-EDGE rt4r Tills A<iriiMEN'T EVIDENcEs A rRANsAc;noNINYoLvmG
IN'fER,ST,U:E COMMJi;R(;E, 'filE fiiDERALARlliTRATION' Aqi' SliALL GOVE!lN THE jNTEJ\FRETATION,
FR<;JS::EEQINGS PURSUANT TO THE ARBITRATioN CLAT[SE AGREEMENT.
THEAABITR.\TORS, ORA MAJORrrY OF 'tHEM, ATTOi\NEY'S FEES AND CQSTS '(OTHE
PREVA,ILlNG THE TERMS OF THIS AGREEMENT,.
. . . . . . '
THE PAnTIES NO!! 'THE ARBITRATORS I'IIAY DISCLOSE THE EXISTENCE,' CONTENT, OR
RES!J.L!'S OF ANY All)liTRATION IIERimNDER WITHOUT PRIOR w'j\ITTEN CONSENT. Of ALJ;i PARTIES
.AND/01\ COURT ORDER,
VENUE OF'ANY AI\Bfnu.TioN.PROCEEDlNG HERE!JNJ?ER IN BliXAR COUNTY, TEXAS,
. . . . . ' .
. mE TllRM LENDER INCLIJPES AN)' OTHBR OWNBI\ AND HOLOI}R Of Tl!IS NOTE AND THEIR RESPECTIVE
SUCCESSORS AND THIS NOTB IS GQVE!\NBD BY APPLICABLE TBXAS LAW, EXCEPT TO THE EXTENT TijB
USURY LA \'IS <;lF TEXAS ARE PI\BJ?MPTBD IIY FEDERAL LAW, IN WHICH CA,SE, FEDERAL LA\Y SHALL APPLY.
VElMl OF ALL ACTIONS ON THIS NOTE, Sl!A!,LLIB IN jlBXAR COIJNTY, TEXAs, 1\lfD ALLOBbloATIONS REQUIRBD
HEREIN'ARE PJilU'OIU,!A))LillN Bl!XA.R COUN'TY
1
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lfloan pfocee$ to bo used prhi:larlly for or hoUllebold uso,"tho following notlco &hall apply:
j'!OTJCE TExAS LA \'I TF YOV ro'THis AGREEMENT YOU MJ.. Bl! SUBIECT TO A
PIJT!JRE RATBAS !UoH AS 24%ANNUALPERCENTI\GE RATE, OR TilE STATE USURY CBILINq, W11!Cl!BVER IS LESS.
If Note Is to be by a J.!en on a op. the described property, then the f'ollov&g- notice shall apply:
';.
THE MAX!MUMINTBRBST RATE SHALI;lfOT BXCDBD PERCENT (24%) PjlRANNOM, OR THE USORY
. CEILING, WHICIIBVBR IS;Ll!SS.. , .
I ' ' ,' ' ', ' ' ' ' ', '
'Payment hereof Is Seoltred bY. a vendor's Uen retained l.q De-y<J Qf even. qate lierew:Ith, to the Borrower, artd is additionally secured b>; .a.
beed of'fulst, Agreen1enf and Finanoing Statement of even herewith, executed by the Borrower and/pr .GrantorF thereof to .
. STEVE. E 1 EDLUND. , upon the following real prOperty:
CERTAIU REAL PROPERTY LOCATED' IN COUNTY, MORE PARTICULARLY
DESCRIBED. EXHIBit
11
Aii 'ATTACllED AND INCORPORATED.
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'NO op,,ALAGREEJUENTS
'l'HIB Wru'f'l'llN AGREEM:i:NT tilE BETWEEN T!JJ!.PARTIES AND MAY NOT.
BE CoNTRADICfEJ} Jly EVD?ENCE oF PRioR; CQNTEMPoRANEoUS, oil SYDSEQUENT oF
T!JJ! PARTIES, . .
'fl!:ERE ARl!"No WRi'fTI1N ORA:LAG.d.EEMENTS llETWimN 'rlD! PARTIES:
. . . .' .
. . Hy_! Delt;a Management,, Lpd, .
-.
:typed Nrunc: SCOTT Typid Name:
Title: .. 'MANAGER: ,. Title: .
Address:
...
"Bonowet'.'
. .
By:
"I}'Pd Nan1c:,
Title:
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Addt'es.s
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__'IYPCd
Title:
. .Addtess.
'.
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. ADDENDUM TO Sl,SOO,OOO,OO REAL ESTATE LIEN NOTE
. . ' . .
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Number of
PaymentS
(a)Thirty-five.(35)
(b) one(!)
...
: '
Frcquenqy
.,
Monthly
Final APRiL ti,.2Q!O .
...
Amount'of
Paynients
PilnclpE\1 h.tcluding
Interest In the
of.Twenty-
foilr Thousand and
00/100 Dollars
($24,000,00) each.'
'A-ll outstanding
principal and all
accrued, 'l!llP.ald
interest '.thereon
shall be due and
payable .
When
areDu$ ..
. c Commencing May
12,: 2007,. and
contlnuin.g
Jl1onthly Ol\ the.
twelfth (12") day
of each successive
calendar 'month
until and including .
March 12, 20 I 0.
0!1 Final Maturity
Date,
. This credii eyahiated, an;uy;;,d . .;;d
based upon the

relationship betWeen Borrower and Lender. Therefore, If there is (i) negative ln
the deposit banking ielat!onsblps between Borrower 'll\d Lender, or (ii) material
in the fintincial' oWnership, moo\agemcnt and/or yontrol Of the which.
reaspnably increases thp risk of theq Lencfer, in its sole 2nd abs.olute
may increase the interest rate: charg in cbnJ:!ectiori with this credit facility by up to
1
1
00%; as it may.floatfrpm tinie from tbrl.e (i.q. interest 111te \vill increase to lr25%' abOve the New
York Pri":'e R,ato). .
this day,of April, 2007,
.
BORROWER;
Della Produce, Ltd:; a limited partnership:
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:<: .: -:: .. r ; .. }f:\r
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BALLOON Rll)ER
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THIS LOAN IS. PAY ABI;B IN FuLL ON APEir/12, 2010. YOU MUST REF/\ THJi ENTIRE
BALANcE oF T!ffi LOAN Aim UNPAiD lNTEillisT Tfm.N DUE. THE !lANK
IS UNDERJ'olO OBJ.,IQATIONT() RBFINANCE'fl-1!3LOAN. YOU WOULD; T!ffiREFORE, Bll .
T0)1AI<;Jl .PA qur oF oriffiRASSBTS you MA v owN, OR you

.. WirtiAT:MA1'Ul\f!Y. you MJ-y HAVE ro-P"AY soi:.rn OR ALL THE tosTS
NORMALLY.ASSOCIArED .Wim. A NiiW !lVtlt-! iF.YOU OBTAJN
. .
:FROM,THE SAMJ:l BANK.
IlXECU'fBD ihis _. day of Al'ril, ;!Q07.". ." .
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BORROWER: . :
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Delta frodu.cc, Ltd., Ijnlitc<} partuers)lip
By;
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s), oa56\U 1-.r' . . :

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EXHIBIT"''
TRACT. 1: . . . . .
5.?J9 of
1
1and, In the. City of County, Texas,
Lot 4, Lot 5', Lot 6, Lot 7, Block 39, NCB 3698, EdgewoQd Addition,
Plat In Be)(ir Coqnty Office Bhxar County,
Texas, and a. portion of lot 53, Block 39; NCB 3698, las VI lias De Marl (fa as
recoi""decf 11,1 Volume 9555,, 72,,Deed ;ind of' CoLmty, .'
Texas; sa!Q 5. 779. !'tCre. tntct.of land bblng more particularly described by
metes boulids as fo II ows:
BEGINNING, at foi.mcf 1/Z"!nch. I r'on "r.od. on t[le.-southerly rlgl:it of way line of
Merida Street, for t:fle nort.he'aster'.ly of spld lot 53, 39, same
. beIng the: nort:J:wester I y oolper "f. sa Itt . Lot 4 (
THENCE/ S 04o 22' 25." E, along tha s'o'ut:her!Y.rlght qf way line of Mer'lpa
Streett a dlst&nce of 70S.56 feet to a found 1/2 Inch Iron rod on the
northW!Jsterly rl'ght or way I line. of' The Uni.on .Rai !road;
THENCE, along the arc .of 4 curve tO the left haVIng a radius
of angle of 14o 2t 30", an arc length of '118.80 feet'
. and a c)lqrd bearing: s.43 18' 41" W, 716
1
91 feet, to a found 1/2 lnch.jron
roQ;
THEN9E, 8'36 .02.' continuing alOng :the northwester'ly right 'of'waY !Ina
of The Rallraod, a distaf1ce of 183;64 feet tq a set 1/2 inch
iron on the northerly right of I ina of Ceratvo Street for th8
. southeasterly, of said L'ot q3; . .
THENCE, 84 :10' 44i' w,' northerly'rtg'ht ofway line. of Cera(vo
Street, a distancii of 3f?',BB feet ta ; 1/2 ln'ch iron rod;
THENCE, , s'aii::l l?t 53, Black 39; the followln9 course.s;,
N os 34' !t7" .1::; ll djst;ancp of 90.14 feet'to a set 112 inch lr9fl rodi
s 83 48' E, a of 10.76 feet toa set 1/2'Jnch Iran rod;
21.99 feet to a' 1/Z JnCh. Iron rod;
. . .
N 83. 48 o9
11
Ill, a of 13.64 feet to a set '1/1: inol} tron,rodi
N .oao 1'1' E, a dt!;ftanc6 of ?30:44. 'to It 1/2 Jnqh Iron rod:
.. .
N 83 48' OQ,. W, a diStanceOf 23.P7 foot to a sat 1i2 InCh fron rod;
N 0!\
0
11
1
51,; E, a of.18.Q4
'line 'of: sal!=l'lot Block 39;
feot 'to a< set 1/2 .Inch iroli rod on the
'THENCE, N 84" 26'" W, along tho.northerly line of salti Lot 63, Black 39, a distance
of 120,01 feet to 'a fou11d 1/2 trn:h lrori rod for ttn lhterior oqrner of said Lot
53," Block 39, _same beln9 southwesterly cor:ne.r 'of said lot 4i
THENCE
1
N'oao'14
1
30"E, .ft!cm9 the OI\SteriY lln.e of said Lot 5'3, Block 39, a 'distance
of 363 . 95 foet to the POINT Of 1JEGINNING of horeln describeQ tract, arxi cont.'llnlng,
5, 779. acres of land; .Ooro Qr"_letnl;,
. wei 2: . . . .
2.069 aCres of I arid situated 111 the City or' San 'Antonlq; Bexar Cm.lnty, 9alng
the 8.3,1 f'eet 9f lots.'67 through 65, flioCk 40, N.CB 3699,, all of 17, Block 40,
NCB 3699, .Edg"ewood.Addlt-lan, as recorded, In 18}5,,Page Dead and Plat .
Records of .Bexpr C9unty, Texas, and all' 1a.1 40, NCB 3699, H.A. Stauffer &
DevineY Subjilvlslon as recorPe'd Ill V6ll!11'18 223, Deed and Plat Racords
of nexar County, said 2.P89 sere tract or !llnd being roore particularly
descr I OeQ fo 1.1 ows: , '
at. a'1J2 rod set on. the ti'orth6rly' riQht Of V{ay line of Merida
Street, said 1/2 Inch Iron rod being N -84 26u W, 8,31 feet frOOJ the southeast
corner .. of LQt 65J '
lHENC:E, N os 14;' 53" E, crossing 'salq Lots 0? throu9h 65, Block 40, along the westerly
line of that certa'ln tra.ot of land to Qoast.Prodi-!Ce Compl\ny, 'lno, as ,
recorded In Volume 71S3, P,ge 980, Pub! !o Records of BexarCounty, Texas, a
dlstanpe of 364 .. 13 feet. tQ a 1/2 Inch Iron rod set;
THENCE, S .21153" !;,,'alOng the northetiY line ofsalcj.lot: 67, at! a dle:tance of
8.31 feet passfng the northeast of lot 07, satOO.balng thanor"thwest corner of
Lot 17, at a' distance of 127.92 feet pas$1119 the corner ofLot 17, saM'
bblng the northweSt of said 18, In alI ri total distance of 247 .52_ feet to lh.
1/2 Inch lrorl rod s13t, for th!l northeast cQrner of" sald,Lot 18
1
sa11e being the
northwest carper o'r lot 19; .
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lHENCE, S Q6 14
1
531' W, .<tlohg tha. i:O!IIlk'in bounOOry bfil.l'.'e'eq lot 18 and lot 19, a
dlstan90 of 3e4;os feet to a 1/.2 Inch Iron 1_3et on Morther[y riQht of .w.ay line
of Merida Street, 'For the Corner of.salcl LC!;t 18, same being the SOC!thyrost
fPfOS(of lot 19J
ntrncg; N 84"-.22'. 25"" Wr plong northorly' r.igllt-o"f way line or Merida Stre6t, at. a
. cUstarJce of 119,60 feet southWest cornor of Lot 18, Sa!ll6 being tpe
sout;l:tel\5\J comer qf lot 17, at a d!stapco of 239.?1-foet passing tho souttr.vest corner
of lot 17
1
sal!le.being the J>oUth"east corner' o'f Lot 65, In ai I n tptal i:llstence of
247.52 fe&t to the POINT OF BEGINNING or hersfp 2.069
o.f' land
1
111ore or less,
TMt:T 3
1
:
17, 'stock 3
1
New City BIPc!< A36,.GIIlls Hood, Unit 2, tQ the City of'
San Antonto, Bexar CQunt,Y, Texas accof-dlng t.c 'tha tmp or pl!'lt thQreof, iri,
VoltR!le

Page 91, Daed.and Plat Rec!lnis of Col.!nt::t, Texas, SAVE J\ND F.XCEPT
that portion. conveyed to the City of San Aptonlo In Volume 5202, 1204, OffiCial
'Public R'ecorQs ott R6a!.Proparty of Baxrw CoiXltYt .Texas,,
TI!ACT 4:
Cortdol!llll(UIJ lhilt 10:4t nUt I ding A, New alock 16957, PO!it Oi'ik Condomln'IU!Js, In the
City of San Arltonfo, BeXllt'. County, lexa.s
1
according Condorolnlurn Daoff!ratlon
ln.Vol'l{11e 8, Page 159., anQ VoiJ.tme o,:.Page 18$}t Records BeXBr
County;. TexaS, together with l'!n undiVIded 4,62.904519 percent Interest: In the CO!lU10fl
ale111ents. '
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EXHIBIT
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l!Jl:TENSlvN ,\ND/ORMODiFICATION AGREEMEN't
REAL ESTATE LIEN NOTE INDEBTEDNESS
Date: Matclt 15 201!:1!..-------------
AocountNo:
/ .
Borrower: Delta Pro"dnj!A Ud.
together with any and all accrued at!.d unpaid interest
and I or tate charges,,
&Qh pnyment !!hall bo a_pPUed as of lts scheduled due date in_
the of appllcaflon as the Lender ln its sole dlsretion may
from.1lme to time
Any outstanding and unpaid accrued and unpaid lllterest
and all fees, late cha.rges IU'ldlor othe-r charges itlcurt'< itt thls
ttansactton by, or benefit or, Bonower
1
Ifatty
1
Which refllalli
due and owing on the Final Maturity Date a.ro due and payable on
such date.
"the faUure to pay BQY psyment(s) ofp!lnclpal
or any thereon or accrued fato charge!, when the is
duo and payable shall permit Lender, at Its option, to.-acceierate the
maturity, without notice to Borrower, of all, or ahy of the
outsf$ndlng_nnpald principal bll;lanco and all acorned and unpaid
Interest. and all and unpald ohugeS under the Note I
tbls. whercupoo the shall be due 'attd payable
lrnmedliltcly. '
the .starting rate oflntcrestwUl be 4.75
per annum beiinnfng on l.S..Mar-10
NYPF+l/4%
Final Maturity Pato: April IS. 2011
o/o Borrower reh.ews ao.d extehds tho Note, lind any afld all
Agreements, security interests, Deed.s of and/or other Hens
created by l3orrowet ln fa-vor of: hiterbatl.o11al Battk of Com.n'lerce.
ExCept a.s provided herein, aU othel' md conditions of tho
Note, abd aU Securlfy Agreements, ffitetests, Oceds of
trus{$, attdlor other liens mated by Deed's of Ttllst.s and/or other
Loan Docutoetlts, if any, cootinuc as wHiten. M.d rernaltt iti. full
force Q.bd oJieOt.
BOtrower promtses. to _pay to the order of: International :Sank of
Commerce tho Outstanding Prlnclpat .Balartce on tho Note
according to the terms with. interest liS it aceroes.on
the outstanding unpaid prinolpal balance until paid. 1:tJ. ttO. event
. shall the rate of Interest patd on the unpald prlnolpal
balanc:O be less-than four and' three quarters (4.75%)
per not more than thetnaxlmunilogalrate allowed by
law.
To tho extent allowed by taw. 11' any payment duo Wlder the
Note/this agreetnentb more than teo. (tO) norrowerwill.
. bo charged a late charge of five percent (5%) of the late payment
.afnount, b$ prlb.cipal and interest. The "{ate chat.e:e" may be
accessed without end shall be lmtnedlately due and payable.
Bo.tro)-vet
Delta 'Prodtlec Ltd., a texalllmited pattnerslilp
.,
Addtess
2001 S, Laredo
Sab.Antol'tlo Texas 78207
TO tllllllXTENT ALLOWEJ) BY LAW, ALL MATURED
UNPAID .AMOU'NTS WilL JlEAR iNtllREsT AT THE
MAXlMUM LEGAL INTI!REst M1l! ALLOWl!D BY
APPUCABLE LAW, If applicable law does n()l; set a tnax.hnutit
rate of ln.tete$-t fbr tnal\l(ed unpaid afnou.b.ts
1
th.ch:Bor'i'o,Yet ag'tees
that dio maximum ratc.fot such amounts shall bo potclit
(18%) per annum. ' ' .
1
NO ORALAGRJlEM\INTs . ': ..
THIS WlU'ITEN LOAN AGREEMENT REPRESENTS T!IE
FINAL AGREEMENT n"tWEEN Til:& PARTJJ1S AND
!)fAY NOT BE CONTRADICTED BY EVIDENCE OF
P.RIOR, CONTEIIIPORANEOUS OR SUBSEQUENT ORAL
AGREEMEN'ts (Jfl "'riD') 1' ARTIES. THEIUl AIUl NO
miW!trrrEN ORAL AGREEMN'l'S BE'I'WEEN THE
PAR'i'mS .
Address
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EXTh ,ON ANDIORMf,lDlFrl:41'!oN AGREEM:i!NT
COMf.iERCUL .!Nllllli'l:EUNESS
Dille: ..
-lmmedlalely duOan4 p3J"o!blo.
Aoont No: __
Bcmower: Ddt. Produce LP ..
B(Jl'l'I]Vr'er ro-.pay-.to -the ordao of Baak of
c'kruncwo the. Qutstandfng Prindpal tlats.n.1' on -$d NotO.
aC0rdlng to:.theY:nns bereoCtogtiherwilh a.oJ it aecnles en
the.1lutstandlng: unpatd,prlio,clpal balance unt11 paid. tn no-event
otinferest1o lie paid" on
less than rooraod'tfuw qu,:ut,ers ;en::dlt 4.:75%
Wl'trfON thllll the maximum legal rata alkrwed"by
!!fplfci.'bte-l!iw.
To the cM11( aiJoWi;dby tho
NOlehhis Its &ole af;cret!_9J'I Q) fncicise
-tho lntettmothe prlnclpal portion 6tdny payment amounnhr<t Is
"not rc.h'ed by. ,!he \)a)nlll{i\ dato unm -P,atd.ll) tho ilwximum
by 6lf :s full ma!s !jom
dpe<4teuntll paiA or(U) thootdany paymt;nt
llij.n fate, l)OJ"ro;WershaU pay '1ata
tqual to five _j)erecnt (So/.;-) ofthhmpunt of the
\)SSt a'ue-prlnclpal tn4 h\torut-OfsuClip:!.yD:tent, With a mfn)'n;roD\ ot
$10.00 iad a inaxfnw:tb payidCDt.
. sba'll OO<tpPlled M 'of \l$ schedU1eddUe dite lllld
iiJ lli.o Ol}icr o,fapplicaUoo as tbo Lenrn; iQ ita sQie discretiOn
may-ltom time to time elect.
cbatge:t, when' the same is
ilue and p'ayaltle at It <:spllon, tO p,cee1erate.the
WitliWt notice t,O BQIT<!wet', at: a \I,. or 3-!l)'pottlon, o( the
IJU!StAttdlng- un{td batahC{!: <md all accwcd and oopaid
Inter#, and ill aq*Ued and unpaid tatO" chatge:> under the Not51/
lhJs Agteuerit. the san1o sliatl'be du and p.l.>,oabto
irntnedlately.
-Y and unpaJd ibt1'($1
all eli leu. iate. dii!(Se:s. an&at lneurred iil
.. b'y, or for the bmcfitOl; Bocrower,lf any, watCh reroald
liu!l Brld' oWing (1!1 the };'fnal 'Maturttfoa(c arc due and payable on.
'""""'" . . .
TO\_Tt!E EX'Tmtf ALLOWED .BY' !:.AWl ALL MATIJREP
UNMID. MIQUNTS WILl. PEAR rmERllST AT TIIB
IJ;\XU,t{jM. LEOAL RA:l1! ALLUWEll l1Y
AfP.L'ICAliL? tAW. If does not set -a. maltlmmn
of [plms.t"furmatur&! unpiild-a;rdoqnU,,Ilitn agre-es
that. tho ma:drot!llt ratd fot amoonU..sb'all bo
(JSr..)periUlbuc:i. '
.NO ORAJ(AGru;EM'J!:trqi'
Tiu& W\UmN LOAA A,GJ,UU;MEtft JUIPRI!SEM'S 'rnE
FiNM. AGR<EMI<lrt TilE PARTIEs A>!D
l'tfA}" .NOT. 'BE CO$'RAIJlC'fD" BY .EVIDENCE OF
CO!frlMl>PilAN.EOUS Oil SUDSEQ,UEfiT p'AA.L
AGIUIIlMENTS <)F Til& I'ARTD!S. TIIElUI. ARE !((}
1JNWiliTl'liN .MlREEMENrs iiETWJ<l!N 'fHB
l'AR'r!Es ,

NamC! ' {
'rltle: AMisb1nt'VtcC P.r!ldnt.
I
12-50073-a998 Doc#357-10 Filed 10/17/12 Entered 10/17/12 16:18:16 Exhibit 10 Pg 1 of
16
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NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU. ARE 'A NATURAL PERSON, YOU MAY
REMOVE OR STRIK:E ANY OF THE FOLLOWING INFORMATION FROM .THlS INSTRUMENT
BEFORE IT IS FILED FO!t RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY
NUMBER OR YOUR DRivER'S LICENSE NUMBER.
. DEED OFTRUST,ASSIGNMENT.OFRENTS, .
SECUWI'Y XGREEMENT AND FINANCING STATEMENT
THE STATE OF TEXAS
COUNTY C)F BEXAR.

KNOW ME!/ BY THESE PRESENTS:
. . . LT!-77-20070106604-1
THAT !, WE, or EJTH!ll'. OF US
STACI PROPERTIES. LTD, , e. Texas limited partnership of th'o
County of BEXAR . state. of TEXAS , sometimes hereinafter called Grantors
(whether one or more) for the of seeming thelndebtednes.s: heroinafte.r described, and in Conllhh:rat!on of the :rum ofTEN
(Sl 0,00) to us: In hand paid by the. Trustee hereinafter named, the:recipt and 5\lfficiency ofwhich is: hereby acknowlodged,
and forth.e. further consideration of the uses, P.u,rposes and the tmsts forth, have SOLD, AND CON\IEYED,
and by these presents do GRA.N'r, SELL and CONVEY. unto STEVE E. EDLUND Trustee, of
International Bank of Commerce., 130 E. Travis, San Antonio, Boxar Cunty, Texas 78205 and his substitutes or succe...o:.sors, all of the
following desoribed property situated in BEXAR County, Texas (hereinafter the "Property"), to.wit;
TEAT CERTAIN REAL PROPERTY LOCATED IN EEXAR COUNTY, TEXAS BEING MORE PARTICULARLY
DESCRIBED ON EXHIBIT "A" ATTACHED RERE!O. AND Ill CORPORA TEn. HEREIN,
.
.. TO HAVE AND. TO liOLD the.above' descn'bid. Pro}Xlfty, with the rights, privile-ge-s and .the-reto belonging
unto tho :;aid TI\lstee, and to llis. suOstitute.s or successors forever and Grantt1rs do hereby bind themselve.s, tmlr heirs, executors, a.OnUn
is'trators and assigns to warrant and forever deftm<l the riid premlses 'Unto the said Trustee, his substitutes or successors and assigns for
enr, agalnst the claim o'r claims, 'of Ill! persons Claiming or to dalm the same- any part thereof.
*This fs ffiadO In TRUST secure pa.yment ofone E.state Llen.Note/Promissorv Note.
df eyen date . in the principal S\!m of .!.'--,-,--,-'-e-cc-e-------
. : } DOLLAR$ ($. ) (the ''Note"), executed by the makers of said Note ____ _
---:-:-who together with tho above named Grantors, shall hereinafter collectively and interchangeably be referred to as
Grantors, payable to the Qrde-r of
INTEIDIATIONAL BANK OF C0l1MERCE . . .,
=----:-, hereinafter referred to u Beneficiary, in the City of SAN ANTONIO BEXAR County,
Texas and f?a)table as .therein provided. including late- charges; bearing intereSt as therei!l stipulated, providing for acceleration ofmatu
rlty @Ild and neces.sary attorney's fees; . .
* WDENDliM TO D'EED OF TRUST ASSIGNl!ENT OF RENTS, SECURITY AGREEMEN'.l:.JIND FI!!Al!CillGSTAT!lM!l
She 'im.Hfi& herein contained, and 11,1a.ke paxment of said indebtedness as the
same shall become due 11nd payablci, then thls conveyanco shall become null and void and of no further and effect. and shall be
released at the expense of Grantors, by the holder there-of, hereinafter called Beneficiary (whether one or more).
Grantors COVENANT and AGREE as follows:
. .
That they are la.wfully seized of said Proporty, in fee simple absolute, and have the right to convey the same: that said Property Is fre.e
from and extq)t as provided..
Pa,; I ofJJ POT12103. I.BC9004
16
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To protect the title and possesscior . stlid Property and to pay when due aU taxes t.. . messm.ents now ox.isting or hereatrer levied or
asse-"ed upon said Property, or tht 'lnterest therein created by this Deed Of'nust, ana to and maintain the Peteby creat-
ed as a fl.rst and prior lien' on said including My.lmprovemerits hereafter made a part of the realty. .
To keep the improvements on said Property. in good repair and condition, and. not to permit or thereofj to keep said
buildings occupied S(l as not to imppir the insurance carried thereon.
To insure and keep insured all jmprovements now or hereafter created upon said against Joss or damage by fl.re and wind-
stOinl; and any other h:Uard or hazards 1\S may be reasonably required from time io time by B'eno.ti.ciacy the tcnn oftlie indebt
edness hereby secured, to the extent of the total amount of the indebtedness hereby seCUI'edl'or to t_he extent of the full insurable value
of said improvements, whiehcver is the lesser, hl such fonn and with such i.nsurapce company ot companies 'as may be approved by
Beneficiary, nttd to deliver to Benefidaf)' the policies of such insurance having attached to said policies such indero.n.!ty
clause as Beneficiary shall direct; to deliver renewals of any Such policies- to Ben:eficiary at least ten (1 0) day.s before dny such insur-
ance policies shall any procuds which Beneficiary may ;ecelve under Policy or policies, may pe applied by Beneficiaryf
at its option, to reduce the indebtedness hereby secured, whether thtn matured to mature in the futute, and 1n such-manner as
Benefl.ctary mny elect, or Beneficiary may penn.it Grantors to use- said proceeds to repair or replace all improvements damaged or
destroyed and covered by sa1d p-olicy.
That Bcttefida.ry may employ counsel for advice or other leg31 servjce at Beneficiir:Y's discretion in conne<:tion with any dispute as to
the debt hereby secured or lien 5ecuring same or this

or any litigation or arbitration proceeding to. which the Beneficiary
may be made t1 party on account of this lien or whlch may affect title. to the on I'ICCOunt of this lien or which may affect
the title to the Property securing -the indebtedneS3 seeurcd or which may affect said debt of lien. &y reasonable and nece.ssalj'
attorney's fees so incurred shajl be added part debt hereby secured. '
In addition to the land and Jmprovements above described, the lien of this Deeq Of Trust covers and includes all abstraCts- and 'title
pnpers fumbhed or to be fumls!ted in connection: with the making of the Joan evidenced by said Note, the.payment of" which is secured

O!llntors agree to pay on demand for alt abstracts, title policies, appralsals,.recorfl!ng fees and attorney's fees incurred in connection
with dther the closing of the lo:m secured hereby orthe renewal, extenston, modification an.dlor rearrangement of any part of the-
Indebtedness secured hereby, or, in tho alternative, such amounts expended by Bc:nefichuy be added to and be a part of the debt
hereby secured, .
That in the event Orantora sh:dl fail to keep the Improvements on Property hereby conveyed in good repair and condition, or to pay
promptly when due all taxes and usessments, as aforesaid, otto preserve the prior lien of this Deed Of trust on said Property or to
keep the buildings aod improvements as aforesaid, or to deliver tbe.pollcy, or poHcii.s, of insurance or the renewal thereof to
Beneficial)', e.s aforesaid, then Beneficiary may, .at his option, but without being lo do so, make such pay such taxes
and purcbnse any tax title therton, remove any prior Uens, and prosecute or defend any suits lh relation to tha
tion of the prior lien of this Deed Of Trust on said Property, or insure and keep insured the Improvements thereon in any amount not
to exceed that above stipulated; that My sums which may he so _pajd out by including the costs, expenses ruip attomey's
fees paid in any suit affecting said Property when necessary to protect the lien hcrqof and all other expenses and costs agreed 10 be paid
by Grantors under the Deed Of Trust which are not paid when due shall bcear Interest from the dates of such pnyments at the prematu-
rity Jnterest rate stated in the Note hereby secured
1
and shall be deemed _a part of the debt Mreby secured and recoverable as such In
aU respects. ln addition. in the event Grantorp shall fail to keep the buildings and !mpr9Vetnents insured, aa aforesaid, or to deliver the
policy or pollcies;ofinsmance or the renewal thereof to the Beneflclary,IL'l the Beneficiary may, at his option, but w:lthout
being required to do so, insure and keep insured the improvements thereon in any amount not lo exceed that above stipulntecl (includ-
ing without limitation, to the extent allowed by law, the purcl\ase of Single Interest Insurance which ma.y provide coverage only for
Beneficiaty)i that all sums paid for insurance premiums by Beneficiary, os shatl bear Interest from the dates of such pay-
ments at the prematudty interest rate contracted for In the Note secured, and shall be paid by Grantors to Beneficiary upon
demand. at the same place at whlcb the above-descn'bed Note is payable, and be deemed a part of the debt hereby secured and
recoverable as such in all
Grantors expressly agree annually to furnish Beneficiary validated receipts payment of all UJ;xes assessed against, and
p.nce coveririg, the said Property, Such tax receipts shall be furnished on or before'fifteen (lS)'days prior to the date suqb taxes become
i:l!)llnquent. The insurance receipt shall be fum.ished on or before teft (10) days pri-9f10 tPe date the c;uiTent ii}JutanCC roverage expires.
JfOratitors should fail to furnish such recelpts, Beneficiary may require Grantors fo deposit monthly withBeneflciatj Qn the'payiW:nt
dates specified in the Note hereby s:ured in kddftion to' the moritbly pa)'Inent of principal and interest provided in the Note hereby
secured a sum equal to 1/12 of the estimated annual taxes and insurance premiumS covering such Property
1
such to be made
by Be'nefidazy. .mch deposits, without bond and without aCcrual oflnteri!sl 'to pa taxes and insurance
pretniums as they become until hereby is S!J.d.the balance delivered to Grantou.
Subject to applicable law and notwithstanding the at Beneficiary's option, and in its solediscretfon, Beneficiruy
may require Grantots to pay Beneficiary on thC da.y.rl\OnthiY payments are due under the Note, until the Note is paid in full, a sum
(''Funds'') for (tt) )'early taxes and as-s.essments which may attain priority over the lien of this Deed OfTrust as a lien on the Property;
(b) yearly leasehold payments or gc-ouod rents on the Property, if anyj (c).yearly hazard or propeny insurance (d) yearly
flood insurance premiums, If any; (e) yeatlyniongage ituUtMee premiUms, if any; and'(f) any swns payable by Grantors to
Beneficiaty, In accordance with the preceding paragraph, in lieu of the payment pf mortgage insurance premiwns. These items are
called "Escrow Items". BeneficiEII)' may, at any time, fO!Iect.and hold Fund$ in an amoUnt not to exceed the maximum amount a lender
for a federally related mortgage loan miy require f<ir-Grantor's esciow account under the Federal Real Procedure-s
Act of 1974 as amended from time tb time, 12 U.S.C, Section 2601. et seq, knother Jaw that applies lo .the Fwl<ls
sets a Jesser amount. 1f so, Beneficiary may, 'at any time, collecr md hold Funds m. any amount not tt;) exCeed the lesser amount.
Beneficiary may estimate the limciunt of Funds due on the 15asis 6f current data and reasonable estimates of expenditures of future
Escrow Items or otherwise in accordance with applicable law.
The FunQs shall be held in a.n institution whose are insured by a feral aEency, insinml-entallty, or (in.qluding
Beneficiiry, Jf Beneficillt)' is such an institution) or in anY Federal Home Loan Bank. Ben.eficlaty ahall hpply the Funds to pay the
Escrow Iterru. Beneficiary may not charge- Gmntors for holding $d Fui\ds-, analyzing the a'ceoun.t, or
'
PAJC2ofl3 1BC914
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verifying the lte--m;; unless Beneficiary Pays Borrower the FundS and Jaw JX!-rm[ts Benefieiluy to
such a charge, However, Beneficiary may requiw Grantors to p!i)' a one-timo charif.l an independent real estate- tax $0TV
leo used hi Beneficiary ill with 1his lean, app1icablo law provf_des otherwise, Ynless agreement_ls made or applica
ble law require-s interest iO be paid, Be-neficial}' shall not be required to pay Grantors any Interest or earnings on the Funds. Giantors
and :aeneflciary m11y agrw in writing, that interest shall be paid on the Funds, If by JaW, Beneficiary shall give to
without charge,, an amiual aooounting of the Funds, showing credits and debits to the FundS and the purpose for which eacl}
clebirto the Funds WJIS made. Funds additional secUrity all svms $CUred by this Deed onrust.
. . . . . .
If lhe Funds held by Beneficiary exceed Uie amoUnts permitted to be held by applicable Jaw, BenOficlarY tihall account to Grantol"ti" for
the excess Funds in accordance with requirements of law. If the amounl of the Funds held by Beneficiary at any time
Is not-sufficient to pay the &crow ItemS when due,. Beneficiary may so !lolify GrantorS in writing, In such case Grantors a hall pay
to Beneficiary the amount necessary to make up Grantors make up the deficiency in no more than twelve. (12)
m?nthly'piyments, at
Upon payment In full of all suins sWlred by this Deed"Of Trust, Beneficiary shall promptly refund to Gr.tntors any Funds held by
.Beneficiary. If, under fore-clOsure proceedings, shall acquire or sell the Property, Beneficiary upon the. acquisition or sale
cfthe Property, shall apply any FundS held by Bmeficiary at the time of the acquisition or sale as a cmllt against the sums secured by
this V..d Of Trost,
shtdl not Impose, or P.ennino be any restrictive covenants upon the Property herein described or execute or lite, or
pemlit to bo filed, any{lubdivJsion pld oi' comkmUnium declaration or other instrument affecting said Property without the prlor writ
oom:ent of '
All agreements between any of the parties hereto are hereby Umlted by these provision' which override Rll such Rgree
ments, whether now existing or thereafter Jffrom a coustructlon-or any document related to any transaction bctwOOn
Bank, Graritors a11dfor any Otl1er person or eritity" exec,utlng this Deed O!Trud, any tem(s) or pro'Vision(s} of any document b
in conOlct with applicable JaW, suCh be aUtomatic11lly reformed Rnd modified u to compQ' with applicable law,
without the necessity of execution o_f a"n)' or new document.
That in the event of defaul.t in thepayment of 11-n)' installment, principal or Intere-st, or of a late charge-, of the Note hereby or
in the payment, when due, of any other ,Indebtedness secured beceby, in accordance with tho terms !hereof, or of a breach of MY of the
covenants heieln contained to bo performed -by Gnmtors then and in wy of such events Beneficiary shall, at Beneficiary's option,
GRANTORS HEREliY EXPRESSLY WANE NOTICES OF NON.PAYMENT, PRESENTMENT FOR PAYMEIIT, PRESENT A
TIONSIDEMANDS FOR PAYMENT, NOTICES OF !NTBNTJON TO ACCEI;ERATE MXI1JRITY, NOTICES OF ACWAL
ACCELERATION OF MATURITY, PROTESTS, AND NOTICES OF PROTEST, accelerate th maturity of <be Note(s) her;by
secure-d and the entire o.utstanding and unpaid principal indebtednus hereby sewrOO with all accrued and unpaid interest
thereon, all accrued and unpaid late fees and other sums shall. thereby booomy immediately due and payable, ai,a In the event
of defaultin.the payment of said indebtednes-s when duo or .declwe-d Ouc,-it sM-lll.horeupon, or at any time thereafter, be !he duty of
the fustee, or his or substitute as Mreinllfter provided, at the request of Beneficiary (which request is hereby copcluslvely
pTNUmed), to enforce this trust: and after agvert.ising the time. place and tenns of the of tho .above describOO nnd conveyed
Property, subject to tho lien hereof, fot at twenty-one (21) days preceding the date of sale by posting written or printed notice
thereof at the County Courthouse $-lld by a copy of such notic Jn the office .of the County Clerk oft he county where said Pr9perty
ls situated, which notice may be posted by the Trustee acting, or by any person acting for hlm, and the :Beneficiary (the bolder of the
Jndebtedness sew red here]>y) h!l$, at le-ast twenty-one- (21) days preceding the dato of served writfen or printed notice of the pro-
poSed sale.b.y mail on each pen:ou and/Or ontity(s) obligalerllo pay !he indebtedness secured by this Deed OfTrust ac-cording
to the re-cords of Beneficiary by deposit of .su,Ch nett co-, enclosed in a postpaid wrapper. properly addtessed to such person(s) and/or
entity(s) at such peT60n's and/or most address as .'!hown by records of Be-neficiary, in a post office or official $1epos
itory '.lnder tho and C1.1st00y o[the- United States Postal Service, tbe shall sell the above described -ptopetty, then subject to
the lien be root; at, public auction in accordanc-e with such 11otice at the Col;l-rthouse of said county where such Property is situated (pro-
vided whci'C is situati in more than one county, the notice to be- posted as herein provided &hall be posted at -the
Courthouse of each of such counties, and file-d whh the County Clerk of each of such counties where nld Property-Is situated, and nid
above anti convoyed Property may be sold at the Courthouse of any one of such counties, and tho- notices so posted and tiled
the county where the Property will be sold), on the. first 1\Jesday In any month between tho hours often o'clock A.M.
and four o'clock P.M., to tho }llghest bidder f9r "lUng all of !he Property as an entirety or in such parcels as.the Trustee
may )et and make due. to the Purchaser or Purchasers, with general warranty binding Grantors, their heirs and assigns;
and of the money arising from suCh sale, the TruMe-c acting $hall pay ftrst, all the expenses of advertising the $ale and making tho COJ\o
veyance, including 11 commission to himself;. whiob commission shall be due and owing in !ldd!tion to the l!>ttcmey's fees
provided for in said and then to Beneficiary the full amount ofprinoipal, interest, charges duo 11nd unpaid
on said Note and aU other indebtedness secured horeby, rendering the balance of the sales if any, to their hell"$ ot
assigns; !lnd the rC<:itJils in the to tbe-l'"urcbaset or Purchasers .shalt! full and conclusive evidence of the truth of the
ters ther:eln staled, and ali prcrequisllos to Gaid sate shall be presumod to have been performed, and ruch &ale and conveyance shall be
conclusive their helrs and . ,
Beneficiary may remedy any defuult; without waiving same, or may waive- any defauH "Without ws.iving my prior or subsequent default.
"It is agreedi that in the event a foreclosure hereunder should be commenced by the Trustee, or his substitute or successor, Benotlciaty
may at any time before the sale of said- Propmy-_ the said Trustee to abandon the 'sale-, and may then instiMc suit for the collec-
tion of said Note, foreclosure ofthis Deed Of'nu_stlien; It is further agrwi that U' the-Boneficlary $hould Institute & snit for
the collection !he roof, and for a. foroolosure of this Deed Of Trust lien, that he may at any timo before tire entry of a final In
said suit dismiss same and require the Trustee.. his substitute or successor, to sell the Property in e.C0rd!lnce with the provisions of this
Dd OfT111st. . r

Beneficiary shall have the right to purchase at any sale of lM Property, being the bigh()St bidder, and to have" the amount for Which such
Property is .sold credited oo the debttiecured horeby.
Beneficiary, in any event, is hereby authorized ttl appoint a substitute trustee, or a successor trustee, to act instead of the Trustee named
herein without other fonnality than the designation in writing of a substitute or successor trustee; and the authority hereby -conferred
DOT-1210l-IBC9004
16
. ' . . .
shall extend to the appointment c. -her successor and substitute trustees suceesst-. until the indebtedness hereby secufed bns
paid in full, or until said Property 1S sold hereunder, and l'mbstitute and Successor mstee :;:ball :;:ucozeed to all_!he rigl;i.ts and pow-
ers of die trustee herein,
In the event an)' sale b made of the above described or any port!on thereo,f, Undertqe of ibis Deed Grantors,
their heirs and assigns, shall fonhwith upon making of such sale.sllltender and de1i"'er possen.ion of tho Property 59 sold to the
"Purchaser at $UC:h sale, and ln the event of.ttieir failure to do so they shall from the mal;ing of S\lch sale be and con
tinue as tenants at will of such Purchaser, and in the event failure to posseSsion of said Property upon_ demand, the
Purchaser, his heirs or assigns, shall be entitled to institute and maintain an. actioO. for forcible detainer of said Propeny in the Justice
ofthe Peace- Coun in the Justice Precinct in which such Property, or any"patt thereof, .situated.
Grantors agree that any resale by Beneficiary of the Property described in this Deed Of Trust ifter fo.r.e<:losur9 p\ay be made for !1 price
the fair market value (i.e. at and that Beneficiaey is not required to re-sell the Property for a price eqltat to or above
f8ir milrket value (i.e. retan). Grantors agree that the sates price obtdned by BeoC.iiCi!ry at any s\I.Ch reSile V(ill not be used in _deter-
mining the fair ma.rket value oft he Ptopert)' for the purposes ofdetennlniog under Section 51.00l' of the Texas Property Code,
'.
1"6 the greatest extent pe.rmltted by law, Ortmtors hereby_ waive rights and remedies-created under Section Sl.OOl of the Texas
Property Code iocludin& witltout l_irnitation, the right in.trod.uce of the amount of the sales prlce of the Property sold by
Beneficiary following any foreclosUte bfthe Uens pursuant to the terms of this Dre<l Of Trust.
It is agreed that the lien hereby created shall take ptcedence over tutd be a prlor.lien to any other Hen of any character whether ven-
dor's, _materiaJmeri's, or me,charti.c's lien hereafter created on thp Property, and in the event the prO<:teds of the indebt-
edneS$ seeured hereby as set forth helein. are used to pay off' and satisfY any liens hefetoforC existing on said Property, then Beneficiary
is, and shall be, subrogated to all of the rights, liens and remeWes: of the holders the indebtedness so paid.
It Js further agreed that if Oratltors, their heirs or a_sslgns, while the owner oft he hereiMbove described.propert)', should conunit an act
of bankruptcy, or authorize the tiling ot a voluntary petition in bankruptcy, or should an act of bankruptcy be com.mitted and involun-
tary proceedings instituted or or should the Pro petty _hereinabove descri'l>ed be taken over by a Rece1ver for Grantors, their
heirs or assigns, the Note hereinabove described may, at the option of Beneficiary
1
immediately becomo.due and payable. and the act
lng Trustee may then proceed to sdl Same undu the provisions of this Deed Of Trust,
Oicll'ltors hereby tl'll.JlSfer and assign unto Beneliclary,_ to be applied oJi the debt secUI'Cd hereby: (a) all eminent domain or
tion awnrd mopeys whlch may hereafter be s.watded or pald for the condemn&.tion of the hereinabove described ProJ)7rty, or any part
thereor or for nny portion of the premises which mny be appropriate for any public or quasi-public use, or by virwe of private sale In
lieu thereof and any sums whlch may be awarded or be.eome payablC to Grantors for caused by public works or construction
on (it nell! Pwperty; (b) all the bonuses, rents, royalties, damages and delay moneys that may be" due or th:at may hereafter bee<Jme
due and payable to the Gre.ntors or their usigns under any oH, gas, ruining or mineral lease or lea,es of any kind now exlsting, or which
may hereafter come. into existence (mcludiny agrlculture.l andlo.r ct'lntl'Scts of every kind) covering the aboVe-described
Propert)' or any part thereof; (.c) all proceeds from tlresaJe of crops grown on the Property, ss well as all pasturage and/or graztng or
hunting fees, Ornntors authorize ond direct payment of such money to said Beneficiary untll the debt secured hereby" is paid, .Such
money may, at the option of the Beneficiary, be applied on the debt whether dpe or not. The BeneficiSf)' shall not he obligated, in any
manner to collect said money$ or any part thereof, and sba\1 be responsible only for amounts received by the Beneficiary. Nothing
he.retn contained shall b oonstroed as a waiver or prejudice to the priority of this lien or the -options hereunder in favoi of said
Bene.fieiary.
It Is agreed an e1Ctenslon,-ot extensions, may be made to the time of payment of aU, orpan, ofthC seeurtd here-
by, and that anY p.an of the above described Property may be released from this llep. wlthout altering or _affeetlng the priority of the lien
created by this Deed 0fTrust in favor of any jllllior encumbrance, morigage.e or Purchaser, or any person ti.cqutring an intetest in tlie
Property hereby conveyed, or -any part thereof; lt being the intention of-the bertto to preserve lJen on the Property, he.reln
dtsct:ibed and all improvements thereon, and that may be Aereafter eolis.h"\J.eted first and sup en or to any liens that may be
placed thereon, or that fix.ed, gl.ven. or Imposed by law thereon afttif the eXecution of this ins1nlmnt .l)otwithstanding any such
extension of the tlmo or the release of a portion of said Property froll!- this Uen.
).n the. eventany ponion of the indebtedness hereinabove described cannot be lawfully secured by this Deed Of Trust lien on said
Property, Jt Is-agreed that the first payments tnade on-sa.ld indebtedne$5 shall be a_ppJ1ed to the dtscharge Of that portion bf said indebt-
edness, . <
'
Nothing contained herein or In the Note shall ever entitle BCncficJary
1
tipon the al'Jsing of any contingency whatsoever, to receive
or Jntel'est in excess o/the highest riae allowed by the_.le.\'.s of the Stati of Texas or.to the extent Fcde:ral Law permits a
gre.ater rate) thep such greaterrate. on tb.e prlndpalln.debteduesshereby or on Any money obligation hereunder and
in no e"ent !\hall Grantors l:!e Obligated to pay interest thereon Jn exceJs of rate.
lf this Deed OfTrust is exi!4;:Uted by only one persOn or by a cotpOration, the plurB.t reference to Oraritors-sbaU be"held to include the
singular and ap of the covenants and agreements herein. undertaken to be performed hy and rights conferred upon the respective
Grantors name hereln, shall be binding tlpon and in we to the benefit of not only said parties respectively but also their respective heirs,
executors, administrators, grantees, successors and as.signs.
ln the event that the hereinabove described Property ls sold, or othenvlse disposed of without the priOr written consent of
the Beneficiar)4 tht maturity of the outstanding and princip:d, -all accrued Bnd unpaid interest, aU accrued and unpaid liite
charges, and other fees and/or charges aflsing out of said Note or hereunder may, at the O"ption.of the ;Beneficiary, be accelerated and
the Beneficial)' may immediately demand payment of the then outstanding and unpaid pMclpal sum, together with all accrued and
unpaid interest due thereon, and all accrued and unpaid late charges, and other fees and/or charges then due and owing.
ln_the event Crantors should seek a temporary order injunction or other legal actton. be It temporary or ;pennanent, to
prevent, hinder or delny the exercise by Beneficiary of its rights and retnedies under this Deed OfTnss!, including, withou.t limitation.
it.s: foreclosure rlghls
1
upon the occun-ence of as rlefault, as hire in provided, then Grantors agree to pay -and/or reimburse Beneficiary
for all costs nnd expenses, including its reasonable and necessa.ty attorney's fees, Jocut:red by BenefiCiary in connection with its
4 of 13 DOT-12/03 .JBC9004 ,
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defense, appearance a.ndlor olher actlon'tilken b}' Benefiola.ryWJ.th re-s.Pect thereto, paynumt and/or reimbu'rseme!lt to be made
whether or not Beneficiary is the paity in any fiUgb injunotion or restraining Order or legal or arbitration Pro..
cecding, agree .to contact, 19 writing. Dennis E. Nixon, prior tO the institution of any such legal or arbilratiqn proceedings oo
as to pe-rmit BCneficiacy ibe opporfumty appear and defend itself.
,It shall be an event of defaUlt under this Deed Of Trust shOuld drMtors, Or any of them or any guatantor, fail to timely deliver any and
all financial statements, income tax returns, inventory reporUi, ca.sh flow information, acCounts n:ceivablo reports, or any other busi
ne$6, tax or flnan'cial infonnation requested \ly Beneficiary. ' ' . '
Gtat11ors hereby grant Beneficiary thb right to protest any and all ad valorem taxes and sp:ial assessments made against the Prop'rty
covered by this Deed Of Trust, In that regard, shall deliver to Beneficiary a tn1e and correct copy, when rvceivtXI, of all tax
assessmenli, valuations, re-appraisals and notices received. by Grantms from aU tax authorities, Beneficiary shall have the' right
to appear in all ta>< proceedings and file appeals concerning taxes affecting the Property or any portion thereof.
Grantors expres-sly represent that UUs: Del Of Trust and the NQte hueby sectlred a.re given for the following purposO, to-wit:
TO REFillANCE INDEBTEDNESS Of GRANTORS,
To the. extent allowedby law, this C<lnviyanco Is also m11do In trust to secure and enforce the payroont of any and all other lndebted-
neu of Grantors to Beneficiary presently existing or which-may in anymannet or means hereafter be incurred or created by Grantors,.
whlcb other or future GrBlltOlS fo bo contemplatod by-Grauton: and evidenood in any manner what ..
soever, withOut limitation:
A. anY commercial loon or inde-btedness;
B. any crtX!it <:ard or other consumer type ofloan:
C. any indebtedness relating to che,cking or savings accounts (overdnfts, fe.u, etc:.):
D. any expenSes incurred in the or of the collater<tl sWJring any ofSllch liabllitie,, loans, and
obligations: .
E. any expenses.lnourred In lhe collection of any IndebtedneSs and/or obligation oft he Grantors to Lendei whether aris-
ing out of this ae;rment or otherwise;
. F, any letters of credit a:ndlor indebtedness arising out of, or advanced to pay. letters of credit trahsactions:
G. any indebtednm, ho-wever whether by promissory note, bookkeeping entcy, electronic transfer or by any
other manner or fonn; . ' '
H, any other indebtedne$$ of Grantors to any financial institution affiliated with lntemational Ban;hares Corporation,
jointly and/or sevewlly
1
and-hi any capacity, whether as maker, guarantor, or otherwise, now or hereafter owing and
regardle-ss of how evidenced or arising; and
I: any all extensions, modifications, substitutions and/or renewals of any of. such indebtedness,
. .
To the extent allowOO by law
1
for purposes tiered( lt is intended that the indebtedness include all classes of Indebtedness, whether evi-
denced by note-s, 9pen- accounts, overdraft. or othenvise, and whether indirect or oontingerit, of class, fonn or
pose and Jncluding but 1.101 limited to, loans ror OOllcSUmer, agricultuml, business or penwnlll put:poses. The indebtedness doe-s not
include amounts a home-.st.eacl equity loan and/or horrie equity lineofcredlt. '
It being' expressly agreed and understood that .any anQ all now owed to or hereafter, advanced by l3enofioiary to Grantors shall be,
payable at the main of a,t 13'0 B. Travis, San Antonio, CQ\lnty, Texas 78205, and shall Intere-st as may
be provided iri suclt noto-s or other evidene$ given by Grantors to and this instrumeOt is also ext-Uied for
the purpose_ Qj securing ancl the paymetlt of any renev, extension and/or modification of any note or of any part of the said
indebtedoeas'ofGrantors and including any fuither loans llnd advancements made by Grantors. Repayment of all indebt
edness of Grantors. to Bl)neficiary not this Of Trust unless the same be so released by Beneficiary at the request
of Grantors; but other.wise it shall remain in full force- and effect-to secure all future adv{mces and indebtedne-ss, regardless of. any sddi.--
tiona! that may be taken as -to .any past or furore indebtednes-s, and shall unaft"ecW by any renowals, extension-s or poutial
teleases hereunder,
GRANTORS Wll.LNEITHER CREATE NOR PERMIT ANY JUNIOR OR SUBSEQUENT LIEN OR ENCUMBRANCE AGAINST
THE PROpERlY wrrHOUT PRIO]l. WRl'ITEN CONSENl' BENEFiC!<'oR'i: ..
Anplicable to Prior IJens If this Deed is or becomes' subordinateto any otlrer liens, security interests: assignments of !eases
orrents or any othei- encumbranCes (collectively, the Liens'') affectingany'ofthe Property, all documents creating tho Prior Liens
and evidenci11g and governing the indebtedness Secured shall be collectively called the
1
'Prlor Lien Documents" a.nd this seclion shall
l'age-Sofll DOTI2103 IBC9004
16
;
apply. Grantors shall not enter in' '/.Jy renewalJ mod!fieatlon, lncreast: .'. :efinanclng of any of the Prior Lien'r>ocume:nts"
or the indebtedness securtd thereli)i'without prior written consent Orant<>ra shall pay when due.aU evi-
denced and secured by the Prior Lien'Documents and shall timely pe-rform all otlier obligations of the GrantOrs under the Prior Lien
Documents. Beneficiary lMY. l,lut shall not be obligated to, pay .any such indebtedness or perform any such obligations for1he account
of 'Grnnto!$ and any sum so expended Shall be seCurt hereby. Gmntors shall pay to Beneficiary all emounts so expended by
Beneficiary wlJ:b. interest on' such amounts from the date and at the rnte set forth in.the Note, )]ut not in exceSs of the highest mte per-
nlltted by e.pplicable law. Beneficiary's cure of any default under any of the Prlcir.LienDocwnents shall constitute a cure of the
default UII.der this Deed OfTJ:u.st. Grantors shall send to Beneficiary a. copy of ti?Ch notice of default orn.Otlce of acceleration or other
notiee received by Grantors from the holder of any of the Prior Lien one (1) busine'ss'day after recdpt thereof by
Grantors. Notwithstanding the foregoing, Beneficiary does not consent to any Prij>r Lien unless othenv1se 1n this
Deet! OfTrust. .. '
Seeuritt Agreement!Ejnancing Statement Tbls Deed Of Trust lien shall cover all Property now orhcreafte;amxed or au!cied or in cor
porated into the Property, described herein and now <>r hereafter owned by Giantors ln which Grantors noW or hereafter h:ive .an
est whlcl4 to the fu]Jest extentpemtitted.by law, shall be deemed {tXture.s and parr .of the Property. In adtJ!tion, this Deed Of Trust lien
shall cover, and Grantors to the extent of any present or hereafter created riihts Of Grantors in such Property hmby srant to
Beneficiary, a securlty interest In (i) all building materials, fiXtures, equipme.at and other personal property, to be incorporated into any
improvements constrUcted on the premlses; (ii) all goods, materials, supplies, fixtures, equipment, machinecy, fumitute and funuShings
and other persona! property which ate now or may hereafte1 be appropriated for use on (whether such items are st<>re:d on the premis-
es or elsewhere), located on or used in connection with the premises: (iii} all rents, is-sues tmd profits, proceeds, profits, renewals,
lnC<lme or other bem:fit derived fror(lthe payments received for lodging from Interests and/or materials, and all inventory, accoonts,
accounts r<:ceivable, controct right.9, general intangibles, inteUecrual proPerty, chattel paper, instruments, docwnents, pennits, plans,
specifications, drawings, governmental approvals, notes, drafts, letters of credit, indebtedness arising from and/or to pay an advance
on letters of credit, accounts due from credit, debit and/or charge card companies, Insurance policies, insurance c.ondemnatl.on awards
.and pnx:ee:ds, trede names, trademarkS -and service rnarks arising from or related to the premises and any business conducted on the
premises by Oramorsj and (iv) nil replacements and substitutions for or additiOil.!l to, aU products and proceeds of, and all books, records
and files relating to any of the foregoing, To the ex.tc1ll any property covered by this Deed Of Trust lien consists of right! in action or
personal property covered by the Texas Business And Commerce Code, this Deed PfTrustlien constitutes a security ngcecment and Is
intended 1<> create a security interest in such property in favor of Beneficiary. ThiS: Deed OfTrust shall be self-operative with respect
to such property, and_in the event of default andlot nccelemtion of. the indebte$1noss hereby secured, Grantors expressly grant to
Beneficiaty the right to enter upon the Property where the collateral is located for the purpose of enforcing its right to such collateral,
and Ofantors agree to execute and deliver, on demand, such security ngre.ementsJ financing statements and other insttutnents as
Beneficl:uy may request io order to Impose the lien hereof made more speclficalt)t upon any o'f such property. lfthe lieD; of this Deed
Of Trust on any property shall be subject to prior security agreementet>vering such property, then in the event of nny &fault hereun-
der, all the rights, title and Interest of Grantors in and to any and all doJ)<lslts mae in with the transaction whereby such
prior security agreement wa:; made are hereby presently assigned to Beneficiary, tof!ether with the benefit of any payments now ot here-
after made in connection with sueh transaction. .
Financing' Stateinents. J.n addition to BenefiCiary's other rights set forth- in t1il's Deed Of Trust, BeneficiarY sbaU have allrights of a
secured party under the Texas Business And Code (the "Code'). At Beneficiary'$ requtst, -orantors sba:ll execute atid deliv-
er to Beneficiary all financing statements that may be. requited by Beneficiary to establish and ma.lntaln the valldity and priority of
Beneficiary's security iJUerest, and Orimtors shall bear all costs thereof, Jncludlng all searches tusonably requ,i.red by Beneficinry. lf
:Beneficiary sbuld dispose of any of the property covered by the sc<:urity interest created unde[ this Deed Of Trust pursuant to the
Code, ten (10) days by Beneficiary to Grantors shall be deemed to b$)uasonable notice; provided however, Beneficiary
$ay dispose of such ptoperty ln accordance with the pwcedures of this peed OfTnist [n lieu of proceeding the Code.
(1) Orantors hereby autho.Me :Seneflciary to file a Financing Statement, an Amended Financing Statement and a Con'\inuation
Financing Statement (collectively referred to p.s the ''Flnii.Dcing Statement!') de$C?blng the Coll.ateral.
(li) Grantors hereby authorlz.e Beneficiary to file a Financing Statement describing any agrleulturalliens or other statutory liens
held by Beneficial)', .
(Ui) Grantors shall receive prior to the Closing an.officialteport from the Secretary of State of each Collateral State, the Chief
Executive Office State, and the Debtor State (each as defined below) (the "SOS Reports") indicating that Beneficiary's secu-
.rlty Jnteres.t is priot to all other security interests .or other interests reflected in the report.
(iv) Beneficiary shall receive at any time followJng the Closing an SOS Report indicating tbat Beneficiary's se<:urity interest is
prior to all uther security interests or other interests reflected in the report.
Beneficiary may sell, least
1
or otherwise dtspose of any of the personal property in accord with the rights, remedies
1
and 'duties of a
BetJefic.iary under Chapters 2 and 9 oftheTexas.BusinessAnd Commerce Code after giving notice as required by those chapters; unless
the to decline rapidly in value, is perishable, or would typically be sold on a recognized market, Beneficiary will
glve Grantors reasonable ootice of any public sale of the Coll!iteial or of a lime nfter which it may be otherwise disposed of without
further notice to Grantors: in this evetn, notice will be deemed reasOnable !fit is mailed, postage prepaid, to Grantors at the address
speciJied.in this agreement at least ten days btfore any public saJe or ten ditys before tlme when the Collateial may be otherwise
disposed uf without further notice to Orantots, Grantors authorize Beneficiary to disclaimor modify any anG aU warranties set forth
in Section 9.610(<1) of the Texas BusinessAnd Commerce Code and stipulate and sueh a dbclaimer andl.ormodification will
not render the sale coiiUDetcially unreasonable. Beneficia.rymay retain all or part bfthe Collateral in full and! or partial satisfaction of
'the Indebtedness pUrsuant to section 9.620 of Texas Buslness And Commerce Code.
Without providing Beneficiary wlth at least thirty (30) prior written notice 'of Grantors' intention to do so
1
Grantors, until the
indebtedness is paid in ful1
1
agree that they will not:
a. 1n one transaction or a series of related transacttons
1
merge ilito (It colll!Olldate with any other entity, sell all or sub-
stantially aU of' its assets, or ill any way jeopardize its corporate existence,
b. changcrihc stato of its incorporation.
c, change its coipOrate name,
Page 6oft:\ DOT-12103 ... JBC9004 ,
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ch'ange tfie addressamVor loCo16Qri of'its ChiefEx(;outh;e Offico.
file i tJC'e .. t Amendment fomt, and/or
tHe a 1 Termination farrir,
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Grantors shall give advance notice in writlng to Beneficial')' of any pioposf chaoge ln Granlors'name, identity, or structUre arid shill
execute and,deliver to Beneficiary, prior to or COJ!CUnently with the occurrence of any such change, !Jll financing statements
that Beneficiary' may require to.establlsh and the validity and priority ofBeneficiai'}''S sewrity interest with respect to an). of
the property described or rererred to here.in. . :
Grantm expressly that the Property hereinabove mentioned and conveyed to tho Trustee" fonns no-part of any property
ownod, used or olalmed by Grantors fi.S ell:empted from forced sale under the law .of the State of Texas as either personal or business
homestead, and Grantors alf and overy claim theieto under any such law or laws and hereby express,ly Designate as iheir
home.ste;ad, personal Md business, and aS constituting all the property owned, U5ul or claimed by them as exempt either as peroOn!!l
-andfor business such Jao,y$ tho following describod property:
------:::---:-c:-c:-::--,.--::::---::-------------------County, Texas.
(Personal And Business Homestead)
A:mlpnmenfs of Rents Profits etc All of the rents, royalties,. bonuses, issu'Os, contracts for deed, proceeds, profits, inoomo.
and any other bt.nefit derived from tho Propoi;ty and improvements treto, or arising from the \lse or erljoyrrrent of any portion there
of or fromany lease or a.greenlont pertaining thereto and liquidated damages fo11owing default under such leases, flild all proceeds
payable Wtder any polioy of insurance covedhg Joss of rents or oaused by damagO tO any p'art of the Property,' together with any and
all rights that Grantors may have against any .f.enant with any and aU rights that Grantors may have against any tenant under leasM
e.s or any or of nny :part of the Property called tho are hereby absolutely wd unconditl(!n
ally assigned fo Beneficial)'. Prior to a default in paynwnt by Grantors of portioh of the indebtedness secured by thfs Oeed Qf
Trust (the or breach of any covenant, or warranty made hcre1n by Grantors (colleetively
1
an ''Event of
Default''), Grantors shall ha.ve a license to collei:t find receive all fu:nts as Trustee for the beoofit of acnefioiary end Grantors; a.nd
Grantors sbal! apply the funds so colle<ite<l first t<S tho payment of tho indebtedness in such manner a; Benefiel Ill)' elcwts and thereafter
to the acwunt Qf Grantors. The foregoing assignment Is inte-nded to be ab$olute, \lncondiUonal and presently effective, It shall nwor
be n_eoessary for Beheficlary to legalprbceedillgs any kind to enforce tl!lnns of this asslgnment.
Mslgruncnt ofL.eruies assign to. existing and furore teases.,' including subleaus. thereof, 11nd any and
aU ext;nsions, renewOI!s, modifications, and rephicements !bote-of, upon a.ny part of tha Property (the 'ILeasCf''), Grantors hereby fur-
ther assign to ail guaranties of tenants' performanpo under the Leases. Prior to an Event of Default, Gnntors shall have
. the without Joinder ofB.onofioiary
1
to enforce tho lM.su, Unless BonofiailU)' otherw!So.
Wam.n!IM ConMming:Leases and Rents Grantors represent 1md that: (a) GnmtOfl! have good title to the md Rents
hereby ass.lgned and-authority to assign them, and no olffir person or entity bus any right, IIUo 11r Interest therehi: (b) all existing Leases
arevalld, tmmodtfied and in full force and except as Indicated h.ereln, and no defalllt exists thereunder; (c) llnle.ss otherwiso pro-
vidl herein, no Rents have been or will be asslSJ!ed, ]llOrtgaged or pledged; (d) no he.ve b"n or will be antJoipated, waived,
released, discounted, setoff or compromised: and (c) GruLtors have not received any fund5 or deposits from wy tenant for which creel-
. it hos already been on ofarued Rtmts.
Grantor'$ Covenants of performance!! f() Leases Grantors covenant to: (a) pcrfonn all of their obllgatio.ns: under the Le'as-es and
give prompt notice to "Beneficiary of any failure to do .so; (b) give immediate notice to Bene-ficial)' of lillY notice Grantors received from
any tenant or subtenant tJnd'er any leases, specifying any claimed default by any party under sucb Leases, el!:cludtilg, however, notice
of defaults under residentialll!lases; (c) enforce uri.der the Leww. (d) defend', at Grantor's expense, any pro-
ceeding pertaining to the Leases, including, iflJtmeficiary so requesU;:, any such procee-ding to whtch Boneficlary iS a party; and (e)
neither create nor ponnit any encumbrance upon Its interest as lessor of the Leases, this Deed Of'frust and any other cncum
brances.pennittedby this OfTrost.
Prior Apnroval for Aetion Affecting f&ases Grantorsshall.not, without the prior written ofBenefioiilry, rtlivc or collect
Rents more than one month In adwmce, cncum'dcr or 1S$Igrt future !tent$, waive or release any -obligations of any uilder1he-
Lease.s, <:au eel, tenninate or modify any of Uast.s, CiUSe or penult any cancellation, termination or surrender of any Leases,
or commence any proCeedings for dhipossession of any tenant u11der any of.the Leases, except upon default by the tenant thereunder,
or permit any assigrunent of the Uases whereby a tenant Is relea.sed from its obligation.
Rejection of Leaes In Bankruptcy, Grantors that no settlement for damages for termination of any of the l&ases undl!ir tho
Federal Bankroptoy Code, or Uilder any otbccr federal, stale, or local statute, shall without the prloi written consent of
'Beneficiary, and any check In payment of such damages sh111J be made payable to both Grantors and Beneficiary. Grantoi-s hereby
assign any such payment to Beneficiary. to 00 applied to the Indebtedness as Beneficilny may elect, and agree to endorse any ehcck
foJ such paymenl to the order of Beneficiary.
Beneficlaey's Rlehts acceptance of this uslgnment shaH not, prior to, upon, or after entry upon and taking possession
of the Property by Beneficiary or any foreclosure of lhe lien hereuilder or conveyance of the Property herein described In lie\1 thereof,
be deemed oonstitute Beneficiary as a ''mortgagee in possession", nor olitigat9 BenefiCiary to appear in or defend any proceeding
relating to any of the Leases or to the Prope-rty, take any action bereund(:I', expen9 any. money, incur any expenses or perfonn any obll-
gatlon oi liability the bases, or assunW arty obligation or liability under the Leases, or assume any obligation includil}g seeuri
ty deposits. Bene"fic{a.Iy shall for any injwy or damage to any person .or property in or about the Ptopet1)'. Beneficiacy
shall not be obllgatl to saUsfy, or otherwise adhere to any tenns o.fanyofthe Leases.or.any covenant to any ten
ant unloss Beneficiary agrees to do .w, in Writin& exeooted by Bonefioiary, whloh tna.y elect not to do so, in its sole and
absolute discr{tion.
AnMinhnent ofAttornw-In-Fact Orw.1tonJ hereby appoint Beneficiary its coupled with an Inte-rest, empOwering
Beneficiary to subordinate any Leases to thl5 Deed OfT!U9t. .
Inilemn!Ocat1on. Grantors hereby Jndefiu_rlfy ilnd hold harmless rrom aU llsbflity, damage, or expense Incurred by
DOTIUOhiSG9004
16
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Beneficiary J'rom any ctalnu unr .the Lease$) ineludlng, 'wlthoutllm.liation, cl .. : by tenants for security deposits f;r
payments more than one (1) mOll.th in advance and dellve.red.to All amounts beretlJlder, lnc,ud-
Jng reasonable attorney's fees. If paid by Beneficiary shall bear Interest mruchnum lawful rate and shall be payable by
arantors"immedlately without demand and shall be secured hereby,
Records. Etc. request by Beneficiary, Grantors shall deUver to Beneficiaty executed origtna.Is of all Leases and copies of aU
rceords rClatlng thereto, Thetc. sha!.l be no merger of the leasehold estateS, crUted bY the Leases-, with the fee estate of the Mortgaged
without the prior written consent of neneficiary. Upon &:fault, Grantors hereby authorize ar\d direct the tenants under the
Lease! to pay Rents to Beneficiary upon written demand by Beneficiary, without furtherconsep.t of Grantors, and the tenants may rely
upon any written statement delivered by Beneficiary to the tenants; Any such payment to shall constitute payment to
Orsntors under the Leases.
Fixtures. Sonle of the Items on the Property are.. goods that are or to become fixtures re.laied to said Property, and it is intended
that
1
B9 to those goods, this Dei!d Of Trust shall be effective aS a tinanclngstatemenl filed as a fixture filing from the date of its filing
of record jn the real estate recOrds of the county in which the Property is situated .. lnfonnatiofi concemiOg the lnterest creat
ed by this in!tnunent may be obtained fromBeneficiary,as secured party, lit the address of Beneficiary set forth elsewhere in this Deed
Of'frust, The mailing address of the Grantors, as Debtor, is a.s stated herein.
Bnyironmenta:l Compliance. Grantors' use of the Property wm at alltlmes comply with all laws_ shl.t\lteg, ordlna.nces, I:Ules and regu-
latiOn$ ("Laws") ()f any governmental, quasf-goveouental or regub.tory authority wb.lch relate to the transportatloDt storige, place-
ment, handling, treatment, discharge, generation, production, remOVIi! or disposal (collectlvely, "Treatment") of any waste, petroleum
product (including, without limitation, gasoline and d1e3el fuel), waste poly-chlorinated bjphen}'l
1
-asbestos
rials, and/or an)' other substan, the Treatment of which is regul.ated by any laws (collectively, "Waste
11
), Orantors will with
rut U.ws undetground storugo tanks used to hold gaso1ine, diesel or any other petroleum products on tho Property.
To the best ofOraators' knowledge, no Waste is not loc.ated on the Property, arid neither Grantors nor, tO the best ofGtantOtll' knowl.*
edgo, any other person has eve.r caused or permitted any Treatment of my Waste on. under or at the Property or any pan- thereof; and
to the best of Grantors' knowfedge, no property adjoining the Property is being used, or ha!: ever been used at any-previous-time for
the Tteatment of Waste,
To the best of Grantors' knowledge, no investigation. administtative orde;, consent order and a{'eement, lltigation or .settlement, with
respect to Wi!.Ste or the Treatment of Waste is proposed, threatene<i, or in existence with respect to Property. The
Property i.s not currently on, and to Om.ntors' knowledgc, after dillgent investigation and inquiry, has on, any fed. era! or state
"SUperfuod" or

liM.
Grantors agree to (o.) give notict to Benefidary immediatel-}' upon acquiring knowledge Of any Waste on the Property with a
full description thereof; (b) promptly comply wfth any laws. applicable to Gtantol'S or the Propen:y requki.ng the

treatment or
d!sposal of Such Wa.ste and provide Beneficiary with sat[sfllctory'ovidence with such complianee; and (o) provide Beneficiary within
thirty days after dentM.d by Beneficiary with 11. bond, letter of credit or stmUSf financial assurance evidencing to .Beneficiary's. sat-
lsfactlon that the necessqcy funds are avallable to pay the cost of removing, treatlng and disposing of such Waste and.discharging of
any that may be established on the Property as a result thereof.
Any envirotirnental spill, discharge or event upon or adjacent to the Property which Beneficiary determines materially and
adversely affects the value and/or use of the Property, shalt be an Event of Default unde( this Deed Of Trust and the Note and all other
indebtedness secured bm:by,
Grantors agree to perform an a.sbestos StUVey and obtain a and to 1!. copy of said $\lt'Vty.to Beneficiary, prior to
mencing any renovation and/or demolition of o. public or commercial bull ding. Graators further agree 16 comply with allother at ate
and federal statutes and/or rglllations'fegardlng asbestos and asbestos removal. . . . .
Site A!.sessments, Beneficiary (by its officer$, employees and agents) at any time and from time to time, either prior to or after the
a<:currence of any may contrael for the servlce5 of any person or finn ("Site Reviewers") to perfonn environmental site .assess-
ments (''Site Assessments'
1
) on the Pro pert}' for the pUl]loses of determining whether ther exists on the- Property any envlrorunental
ponditlon which could reasonably be expected to result in any llablllty, cost or expense to the owner, occupier or operator of such
l'toperty arising under any Laws relating to Waste Or the.Treatment of Waste. The Site Assessments may be performed at any time or
tlnles, upon reasorul.bknotice, and under reasonable conditions established by Grantors which do not lmpede the performance of the
Site Assessments, Orantots that any She Assessment shalt be for the sole and exclusive use
1
benefit and rellanee of Beneficiary
1n assessing the value of its security interest in the Property and will not be relied on by Grantors: for any purpose. The Site Reviewers
are hereby authorized -to enter upon the P.topeny for such purposes. The Site Reviewers are further authorized to perfonn above and
below ground testing for environmental damage or the presence of on the Property and such otherte.sts on the Property as may
.be mcessaty to conduct the Site Assessments- in the reasonable opinion of the Slte Reviewers. Grantors will supply to the Site
Reviewers su.ch historiealand.opei:Btional infonnation regarding the Property as may be reasonably requested by the Site Reviewers to
facllit11te the Site 'Assessments and wlll be available for meetings with Site Reviewers if requested. The cost of performing such Site
Assessments shalt be paid by Oranto.rs upon dem.and of Beneficiary and such ex.pell$t;S borne by Beneficiary not immediately rclm
bursed by Orantotl shall be s-ecured by this Peed 9.fTntst.
Indemn!Oeatlgn, Whether or not any SlteAssi!s5ments are cnnducted
1
at>.d reg2rdlcss ofw.hfther or not a default<Jceun under
this Deed Of Trust or unper the Note or under any othei- indebtednes-s secured hereby and regardlf\SS of whether any remedies
In rupect of the tiroperty ar.e exercised by Beneficiary, Grantors and holdharm'le.u.Deneflclary and
Trustee from any and All Jl.sbllitles' (Including strict liablllty)
1
af:tions,

lone!, costs or (lnclucllng
1
-withoutHmitstlon, attorneys fees and e;tpenses, and remedtaleosts);-fluti: eosq of any setUemenrorjudgment and clAims of flny
and elfery kind whatsoever whlch maynow ot in tile future (whetl}.er or after the rdeAS.e or foreclosure .of this Deed or
Trust) be pll.id
1
incurred or suffered by or asserted agatnst Deneflclpry or by any person or entity or gOVerJ1D\etttal
-. ageitc.y for, wlth respect t0
1
or as a dJreet OJ' lndlrect result of, tbe.pre!en.ce on Qt under, or the eseap.e, seepage, leakage, splllage
1
discharge, emJsslon Or release from, on or sffectlng the :Property of any nny spffi, or whleh. arise Ollt of ot t:esW.tflotn
the environmental condition of the Property or the appllcablllty of nhy relating tq the waste wlthoc:t limitation,
the Comprehensive Environmental Response, COmpensation, smd Ltabllity A.et, -42 U,S.C. 9.601 et nq,
1
as from time to
' A
h.ge S ofll DOTlml lBC94
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or imy f'ederai, s,bte or local so-e-a.Ued u,Snperlui"ul" Or "SuptrUen*; taw, 1aW;'ordht"ance, 111\e, reliuJatitm,
order or decree), regardless of"'fhether or J.lOf used by o'i wl.thirt the control of Grantors, Beneficiary or TJ11ste-e., The
sentatfons,.covenants, Warranties an lndertinilication herein: eontall'letl-shalt survive tbe reloasC anilfor judlcruuy or
clal fortclosUre (or h'ansfer in lieu therec_f) ofthe lien of this Deed OC'frust, For the pufpose ortl)ls pangr.ap)lllUd nOtwJth
standing 11ny other provnfon contained here-In to the contrary, the term "Grantors" shaH i-efernotonly to the Grantors nett on1y
to the Grantors named herein, but also to fl.lf oth.er who may assume to the Note aod the obljgatlons of this
Deed Of Trust. . . ' .
.,
ARITRATION,
. r.
GRANTORS, BENEFICIARY AND TRUSTE)> FURI'HER AGREE AS FOLLOWS:
!, 'CONSUMER-RELATED CLAIMS OF $7$,000,00 OR LESS IN AcyuAL DAMAGES:
() WITH REG AWl TO ALL CONSUMER-RELATED CLA.IMS OF S75,000,00 OR LESS IN ACTUAL DAMAGES,
ANY AND ALL CONTROVEI\SIES OR Cl;i\IMS ARISING OUT OF Tl!IS CONTRACT, ITS NEGOT!AT!ON AND/OR
THE BREACH THEREOF, SHALL DE SETTLED BY. ARBITRATION ADMINISTERED BY TH.E AMERICAN ARDITRA
TIONASSOCIATION UNDER ITS .SUPPLEMENTAL PROCEDURES FOR REsOLUTION OF CONSUMER-RELATED
DISPUTES AND CONSUMER DUE PROCESS PROTOCOI.:(WH!CllArullNCO!U>ORATED HEREIN FOR ALLl'UR
POSES), AND JUDGMENT ON TilE AWAIID RENDERED BY THE ARBITRATOR(S) MAY DE ENTERED IN ANY
COURT HAVINcJURJSD!CTION THEREOf. IT IS INTENDED.J!Y ALL PARTIES 'mAT THIS ARBITRATION CLAUSE
MEET AND INCLUDE: ALL FAIRNESS.sTANDARBS AND PRINC!l'LES OF TilE AMERICAN ARBITRATION ASSOCI-
ATION'S CONSUMER DUE PROCESS PROTOCOLANDD'ti:&PROCESS IN PJ\EDISPUTE AABITRATION,
-(b) . INSTEAD OF PROCEEDING IN ;<Rr!ITRATION, ANY PARTY HERETO MAY PURSUE ITS CLAIM IN TiiE
CONSUMER'S LOCAL SMALL CLAIMS COURT, IF THE CONSUMER-RELATED CLAIM MEETS THE SMALL
CLAito1S COURT JURISDICTIONAL Lll\IITS, IF THE SMALL CLAIMS COURT OPTION IS CHOSEN, THE PARTY
MUST CONTACT THE SMALL COURT DIRECTLY.
(c) . TiiE PARTIES FURTHER AGREE THAT (Q NO,ARDITRATION PROCEEDING HEREUNDER SHALL BE CllR
TIFJED AS A CLASS ACTION OR PROOllEll AS A CLASS ACTION, OR ON A BASIS INVOLVING CLAIMS BROUGHT
IN A PURPORTED REPRESENTATIVE ON BEHALF OF THE GENERAL PUBLIC, OTHER CUSTOMERS
OR POTENTIAL CUSTOMERS OR PERSI;>NS SIMILARLY SITUATED AND (II) NO ARBITRATION PROCEEDING
-HEREUNDER SHALL BE CONSOLIDATED WITH, OR JOINED IN ANY WAY WITH, ANY OTHER ARBITRATION
PROCEEDING
(d) THIS ARBITRATION PROVISION SHALL SURVIVE ANY 'fERMINA'riON, AMENDMENT, OR EXI'ffiATION
OFT-HE AGREEMENT IN WHICHTIIIS PROVISION IS CONTAINED, UNLESS ALL OF THE PARTlES OTHERWISE
EXPRESSLY AGREE IN WRITING
(e) THE PARTIES ACKNOWLEDGE .THAT THIS AGREEMENT EVIDENCES A TRANSACTION INVOLVING
INTERSTATE COI\1MERCE . THE FJ>Di:RAL ARBITRATION ACT SHALL GOVERN THE INTERPRETATION,
ENFORCEMENT, AND PROCEEDINGSl'URSUANT TOTHE ARBITRATION CLAUSE OF THIS AGREEMENT,
Jl, CONSUJ\1ER-RELATED CLAiMS ABOVE $75,000,00 IN ACTUAL .DAMAGES AND/OR COMMERCIAL
CLAIMS: .
() ANY ARiliTRATION INVOLVINGCONsuMER-RELA:<ED CLAIMSABOVBS7S,OOO.OO IN
AND/OR COMMERCIAL CLAWS HEREUNDER SHALL BE BEFORE AT LEAST TIJREE NEUTRALARillTRATORS
ASSOCIATED WITH.TJ!E AMERICAN ARillTRATION ASSOCIATION AND SELECTED IN ACCORDANCE \VITHTHE
COMMERCIAL ARBiTRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION, FAILURE OF ANY ARBI-
TRATOR TO DISCLOSE ALL FACTS \'VH!CH MiGHT To' AN OBJECTIVE OBSERVER CREATE A REASONABLE
IMPRESSION OF THE ARBITRATOR'S PARTIALITY, AND/OR MATERIAL ERRORS OF LAW SHAlL BE: GROUNDS
ADDITION TO ALL.Ol'HERSJ FOR vACATUR OF AN AWARD RENDERED PURSUANT TO AGREEMENT,
(b) THE PARTIES FURTHERAQREE THAT. (I) NO ARiliTRATION PROCEEDING HEREUNDER SHALL Bl< CER
TIFIED AS A CLASS ACTION OR PROCEED AS A CLASS ACTION, OR ON A BASIS INVOLVING CLAIMS BROU(iHT
IN A PURPORTED REPRESENTATIVE CAPACITY ON BI<HALF OF THE GENI<RAL PUBLIC, OTHER CUSTOMERS
OR POTENTIAL CUSTOMERS OR PERSbNS SIMILARLY SITUATED AND (II) NO ARBITRATION P.ROGEEDING
HEREUNDER Sl!ALL Bll CONSOLIDATED WITli; OR JOINED IN ANY WAY WITH, ANY OTIJER ARBITRATION
PROCEEDJNG .
<> rius ARBITRATION.PROVISION sHALL SURVIVE ANY.TERI.i'INATION, AMENDMENT . oil EXPIRATioN.
OF THE AGREEMENT IN WHICH TBIS PROVISION IS CONTAINED, UNLESS ALL OF TilE PARTIES OTHERWISE
:EXPRESSLY AGREE IN WIUTING
' . .
(d) THE PARTIES ACKNOWLEDGE THAT THlS AGREEMENT EVIDENCES A TRANSACTION INVOLVING
INTERSTATE CO.Ml;IERCE, THE FEDERAL ARBITRATION ACT SHALL GOVERN T1f INl'ERPRETATlON;
ENFORCEMENT, AND FROCEEDINGS PURSUANT TO THE ARBITRATION CLAUSE OF THIS AGREEMENT,
. .
>
Ill. . ADDITIONAL COMMERCIAL CLAIMS PROVISIONS< .
() ANY AND ALL COMJI!ERCIAL CONTROVERSIES BETWEEN THE PARTIES, .SHALL BE RESOLVED BY
ARBITRATION.IN ACCORDANCE WITH THE COI\1MERCIAL ARDITRATION RULES OF THE AMERICAN'ARB!-
TRATION ASSOCIATION IN EFFEcr AT THE TIME OF FILIN(l UNLESS THE COIIIMERCIAL ARBITRATION
RULES CONFLicrWJTil TIDS PROVISION, AND IN SUCH EVENT THE TERMS OF THIS PROVISION SHALL CON
TROL TO TilE EXTENT OF TilE CONFLicr,
DOT-12103 lBC9004
16
<j
(b) THE AWARD OF THl . RBITRATORS, OR A MAJORITY OFT: ; .. If, SHALL BE FINAL, AND JJnGMEtiT.
UPON THE A WARp RENDEilliliMAY BE ENTEI\ED IN ANY COURT; STATE OR FEDJ!RAL, HAVING JURISDICTION,
THE ARBITRATION AWARD SHALL BE IN WRITING AND SPECIFY THE FACTUA):.AND LEGAL FOR THE
AWARD, UPON THE REQUEST OF ANY PARTY, THE AWARD SHALL INCLUDE FINDINGS OF FACT AND CON
CLUSIONS OF LAW. .
(<) ARlliTRAllLED!SPUTES INCLUDE ANY AND ALL CONTROVEI\SIES OR CLAIMS BETWEEN THE PARTIES
OF WHATEVER TYPE OR MANNER, INCLUDING WITHOUT LIMITATION, ANY CLAIM ARISING OUT OF OR
RELATING TO THIS DEED OF TRUST, ALL PAST, PRESENT AND/OR FUTURE CREDIT FACILITIES ANll/OR
AGREEMENTS INVOLVING TilE PARTIES, ANY TUNSACTIONS BETWEEN OR INVOLVING THE PARTIES,
ANll/OR ANY ASPECT OF ANY PAST OR PRESENT llELATIONSHJP OF THE PARTIES, WHEtHER BANKING OR
OTHERWISE, SPECIFICALLY INCLUD,INGANY ALLEGED TORT COMMITTED BY PA[\TY.
. , I
(d) THE PARTJES SHALL ALLOW AND PARTICIPATE IN DISCOVERY IN ACCORDANCE WITH THE FEDERAL
RULES OF CML PROCEllURE FOR A PERIOll OF ONE HUNDRED TlVENTY (120) llAYSAFTER 'f.HE FILING OF
THE ORIGINAL"RESPONSIVE P/--EADINQ DISCOVERY MAY CONTINiJE THEREAFTER-'1\sAGREED BY THE PAR
TIES OR AS ALLOWED BY THE ARlliTRATORS, UNRESOLVEll DISCOVERY DIS,l'UTES BE llROUGHT TO
'fHEATTENTION-OFTIIE ARll!TRATORS BY WRITTEN MOTION FOR PROPERDISPOS!lr!ON, INCLUDING RUL-
ING ON AN)' ASSERTE.D OBJECTIONS, PRJVILEGES, AND.PROTEcTIVE ORDER REQ\JEsTS AND AWARDING
REASONABI;E. ATTORNE)!'S"FEESTO THEPREVAILINGPARTY. . . :
(e) JN THE EVENT TilE AGGREGATE Ql' ALL AFFIRMATIVE CLAIMS ASSERTED EXCEED $500,000,00,
EXCLUSIVE OF !NTE!\EST A'ITORNEY'S FEES, OR. UPON THE WRITTEN REQUjlST OF ANY PARTY, (I)
P.RJOR TO THE DISSEMINATION OF- A LIST OF POTENTIAL ARJl!TRATORS, THE AMERICAN ARlllTRATION
ASSOCIATION SHALL CONDUCT AN IN PERSON ADMINISTRATIVE CONFERENCE wiTH THE PARTIES AND
THEIR ATTORNEYS FOR:I"HE FOLLOWING PURPOSES AND FOR SUC!I ADDITIONAL PURPOSES AS THE PAR
TIES OR THE AMERICAN ARlliTRATION ASSO.CIATION MA DEEM (A)"T.O OBTAIN ADDITION
AL INFORMA'l}ON ABOUT THE N,-I.TURE AND MAGNITUllE.OFTHE JJISPUTE AND TIIEANTJCIPA'I'ED LENGTH
OF HEARINGS AND SCHEDULING; (B) TO DISCUSS THE VIEW OF THE PARTIES ABOUT ANY TECHNICAL
AND/OR OTHER SPECIAL QUALIFICATIONS OF THE ARlliTRATORS; AND (C) TO CONSIDER, WHETIIER MEDI
AT!ONQR OTHER METHODS OF DISPUTE RESOLUTION MIGHT BE APPROP!UATE, ANll (l) AS PROMPTLY AS
PRACTICABLE AFTER TilE SELECTION OF TilE ARlliTRATORS, A PRELIMINARY HEARING sHALL BE IIELD
AMONG THE PARTIES, THEIR ATTORNEYS ANll THE ARlliTRATORs. WITH THE AGREEMllNT OF THE tffilli
TRATORS AND THE PARTIES, THE PRELIMINARY BEARING MAY BE CONDUCTED llY TELEPHONE CONFER
ENG$ CALL RATHER TIIAN IN PERSON, AT THE PRELIM!NARY HEARING THE MATTERS THAT MAY BE CON
SIDERED SHALL INCLUDE, WITHOUT LIMITATION, A PREHEARING SCHEDULING ORDER ADDI\!1SSING (A)
EACH PARTY'S DUTY TO SUBMIT A PETAlLED STATEMENT OF CLA!li1S, DAMAGES AND/OR. DEFENSES, A
STATEMENT OF THE ISSUES ASSERTED BY EACH PARTY AND ANY r;EGALAUTHOIUTIES.THE PARTlES"MAY
WiSH TO BRING TO THE A'I'TENTION OFTIIEARlliTRATORS; (B) RE$PONSES AND/OR REPLIES TO THE PLEAD
INGS FILED IN COMPLIANCE WITH SUBPART l(A)l {q STIPULI>TIONS IIEGARDING ANY UNCONTESTED
FACTS; (D) EXCHANGE AND PREMARKING OF ALL DOCUMENTS. WHICH EACH PARTY BELIEVES MAY BE
OFFERED AT THE F!NALARlliTRATION HEARING; (E)-THE IDENTIBICAT!ON AND AVAILABILITY OF)VITNESS
ES, INCLUDING EXPERTS, AND SUCH ADDITIONAL MATTERS REGARDING WITNESSES INCLUDING THEIR
lliOGRAPIIIES AND;;. SHORT SUMMAR\:' OF TliEIR EXPECTED TESTIMONY, (F) WHETHER A STENOGRAPffiC
OR OTHER OFFICIAL RECORD OF THE PROCEEDINGS SHALL BE l>jAINTAINED; AND (G) THE POSSIBILn'l' OF
UTILIZING MEDIATION OR OTHER ALTERNATIVE MllTHODS OF DISPUTE RESOLUTION.
(f) FOR PURP0Sg8 OF THIS PROVISION,
11
THE l'ART1ES
11
MEANS GRANTORS, Bi!NJFICIARY AND
TRUSTEE, AND EACH AND ALL PERSONS AND ENTITIES SIGNING THIS AGREEMENT OR ANY OTHER AGREE-
MENTS BETWEEN OR AMONG ANY OF THE PARTIES AS PART OF THIS TRANSACTION. "TiiE PARTIES" SHALL
ALSO INCLUDE INDIVIDUAL PARTNERS, AFFILIATES, OFFICERS; Di:RECTOM, EMPLOYEES, AGENTS AND/OR
REPRESENTATIVES OF ANY PARTY TO SUCH DOCUMENTS, AND S!f!d-L !NCJ;.UDE ANY OTIIER OWNER AND
HOLDEROFTHISAGREEMEN'f.,
(g) THE PARTI)lS SHALL HAVE THE RIGHT TO Th'VOKE SELF n!iLP REMEDiES (SUCH AS SETOFF, NOTIFI
CATION OF ACCOUNT DEilTORS, SEIZURE AND/OR FORECLOSURE OF COLLATERAL, AND NONJUDICIAL
SALE OF PERSON,U. PROPERTY AND REAL PROPERTY COLLATERAL) BEFORE, DURING ORAFIERANY ARB!
"TRATJON ;.\ND/OR REQUEST ANCILL.mY OR PROVISIONAL JUDICiAl> REMEJ)IES (SUCH AS GARNISHMENT,
. ATTAClL'>IENT, SPEC!FlC PERFOI!MANC!l, RECEIVER, JNJJJNCTI<Jlll OR RESTRAINING ORDER, AND SEQUES
. TRATION) BEFORE OR Al'TER ANY ARlliTRATION, THE PARTIES NEEll NOT AWAIT TilE OUTCOME OF THE
ARBITRATION BEFORE USING SELF-HELl' REMEDIES. USE OF SELF-HELP OR ANCILLARY AND)OR PROVI
S!ONAL JUDICIAL REMEDIES NOT oPERATE AS A WAJVER OF El:THER PARTY'S RIGHT TO COMPEL
WOULD_ BE AVAILABLE FROM.ACOTJRT
(h) . THE PARTIES AGREE" THAT ANY ACTION REGARDING ANY CONTROVERSY DETWEN THE PARTIES
SHALL EITHER BE DROUGHT BY ARlllTRATION, AS DESCRJBED HEREIN, OR l!Y JUDIC!ALPROCEEDINGS, DUT
SHALL"NOT BE PURSUED-SIMULTANEOUSLY IN DiFFERENT. OR ALTERNATIVE FORMS. A TIMEL-Y WRITTEN
NOTICE OF INTENT TO ARllfTRATE PURSUANT TO THIS AGREEMENT STAYS AND/OR ARATES ANY AND ALL
ACTION IN A TRIAL COURT, SAVE"AND EXCEPT A HEARING ON AMOTION TO COMPELARJliTRATION AND/OR
THE ENTRY OF AN ORDER COMPELLING ARJliTRAT!ON AND STAYING AND/OR ABATING THE LITIGAT10N
PENDING THE FILING OF THE FINAL AWARD OF THE ARBITRArt>RS.. ALL REASONABLE AND NECESSARY
ATTORNEY'S FEES AND ALL TRAVEL COSTS SIIALL BJi AWARD.i:ll TO THE PREVAILING PARTY ON ANY
MO'I'!ONTO COMPELARlliTRATION AND MUST BE PAIDTO"SUCH PARTYWITwN TEl< (10) DAYS OF THE SIGN
ING OFTHE.ORDER COMPELLING ARBITRATION. -
..
(I) ANY PARTY SEEKING TO ARBITRATE SHALL SERVE A WRITTEN NOTICE OFI!lTENT TO ARlliTRATE TO
\
Pa_gcl0ofl3 t>OTl1103-lBC9004,
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AN.Y OPPOSING PAR-;W 360 DAYS DISPUTE HAS A DISPUTE IS DEFINED TO
HAVE Al\ISEN ONLY UPON RECEIPT O}l SERVICE OF .riJDICIAL PROCESS, JNCWDING.SERVICE OF A COUN-
TERCLAIM, FAILURE TO SERVE A WRI'JiTEN NOTICE OF INTENT TO ARBITRATE WITHIN THE Tili1E SPECIFIED
A:BOVE SHALL llE Di'EMD A WAIVER OF THE AGGRIEVED PARTY'S RIGHT TO COMPEL ARBiffiATION OF
SUCH CLAIM, THE ISSUE OF WAIVER PURSUANT TO THIS AGREEMENT IS AN ARBITRABLE DISPUTE.
0> ACTIVE PARTICIPATION IN PENDING LIDGATION DURING THE 360 DAY NOTICE PERIOD, WHETHER
AS PLAINTIFF OR DEFENDANT, IS NOT A WAIVER OF THE RIGHT TO COMPEL ARBITRATION, ALL DISCOVERY
OBTAINED IN THE. PENDING LITIGATION MAYBE lN ANY SUBSEQUENT ARBITRA'flON PROCEEDING
. .
(k) THE PARTIEs FURTHER AGREE THAT (I) NO All)llTRATION PROCEEDING HEREUNDER SHALL BE CER-
TIPIED AS A CLASS ACTION OR PROCEED AS A CLASS ACTION, OR ON A BASIS INVOiNING CLAIMS BROUGHT
IN A PURPORTED REPRESENTATIVE .CAPACITY ON BEHALF OF THE GENERAL PUBLIC, OTHER CUSTOMERS
OR POTENTIAL CUSTOMERS OR PE,RSONS SiMILARLY SITUATED AND Ql) NO ARBITRATION PROCEEDING
HEREUNDER SHALL DE CONSOLIDATED WITH, OR JOINED IN ANY WAY WITH, ANY OTHER ARBITRATION
PROCEtDING
Q) ANY ARBITRATOR SELECTED SHALL BE KNOWLEDGEABLE IN THE SUDJECT MATTER OF THE DIS-
PUTE, EACH OF THE PARTIES Si!ALLPAY AN SHARE OFTHiHRBITRA'riON COSTS, FEES; EXPENSES;
AND. OF THE FEES, COSTS AND EXPENSES,
(m) ALL OF LIMITATIONS WHICH WOULD OTHERWISE DE APPLICABLE SHALLAPPLYTQ-ANY
AND ALL CLAIMS ASSERTED iN ANY.AJilliTRATION PROCEEDING HEREUNDER AND THE COMMENCEMENT
OF ANY ARBI'If'ATION PROCEEDING TOLLS SUCH STATUTES OF LIMITATIONS
(n) IN ANY ARBITRATION PROCEEDING S'UBJECT. TO TillS PROVISION, THE ARBITRATORS, OR MAJORITY
OF THEM, ARE SPECIFICALLYEI\IPOWERED TO I)ECIDE (BY DOCUMENTS ONLY, OR WITH A HEARING, AT THE
ARBITRATORS' SOLiDISCRETION) PRE-HEARJNG MOTIONS WHICH ARE SUJJSTANTIALLY SIMILAR TO PRE-
HEARING MOTIONS TO AND MOTIONS FOR SUMMARY ADJUDICATION.
(o) 'l'ms ARBITRATION PROVISiON .SHALL sURVIVE ANY TRMINATION, AMENDMENT, OR EXPIRATION
OF TJiEAG!<EEMENT IN' WHICH THIS PROVISION IS CONTAINED, UNLESS ALL-OF THE PARTIES 0Tll_ERWISE
(p) THE PARTI)IS ACJ(NOWLEI;>G)I '!'HAT THIS AGREEMENT EVIDENCES A TRANSACTION INVOLVING
INTERSTATE COMMERCE. THE FEDERAL ARBITRATION ACT SHALL GOVERN THE INTERPRETATION,
ENFORCEMENT; AND PROCEEDINGS PWSUANT TO THE ARBITRATION CLAUSE OF THIS AGREEMENT,
(q) .THE ARBITRATORS, OR A MAjoRITY OF THEM, SHALLA WARD ATTORNEY'S FEES AND coSTs TO nm
PREVAILING PARTY PURSUANT TO THE TERJ\tS OF THIS AGREEMENT,
(r) NEITHER THE PARTIES NOR THE ARBITRATORS MAY DISCLOSE THE EXISTENCE, CONTENT, OR
. RESULTS OF ANY ARBITRATION l!ERJ<UNDER WITHOUT PRIOR WRITTEN CONSENT OF ALL PARTIES AND/OR
COURT ORDER, '
() VENUE OF ANY ARBITRATION PROCEEDING HEREUNDER SHALL BE IN THE COUNTY WHERE BENEFI
ClARY IS LOCATED,
Notwithstanding the, provision rela-ting to conducting a foreclosure sale{s) p\lrSU;mt to the provisions of this Deed Of Trust, the
Trustee shall, and is hereby directed to, with the provisions of Chapter j 1 of the Texas Property Code (the ''Pro;x:rty Code'')
aslt may be amended and in effeot as of the dato or dates of any C9liducterl pursuji.J\t to this Deed Of Trust. In
particular, the locatiori and lime of salo shan be held in accordance with Section 51.002 of the COi:lo or 11ny amendments there
to or reenactmcnt or revisions: to suoh law,
Grantors stipulate and agree that for purposes of detennining the fair mliTket value as ruch
term is in Section .51.003 of th<1 Texas Pioperty Code, which is sold at a non-judicii\! foreclosure salt pursilant to tlie of this
Deed Of Trust (0!-nd in acvordance \'o'ith Section 51.002 of the Property Code), the following factors shall be- used to detennfne roch
Property's falr market value, fOr such purposo.s: (a) the Property shall be valued "AS IS" without any value being anticipated for any
improvements or refurbishing to be condUcted, Or after the date of the foreclosure sale, (b) the intention of the putc.hasM
to the :Property pro_mptly, without any extinsive hold!ngperiod, {c) any re-sale shall bo for only, without financing by the
seller, {d) all rc.Monablo costs of closlng a re-sale shall be deducted from the reasonable costs of closing a re-sale shall be deducted
from the estimate of fair market value, such as attQmeys' fees, title policy premhlms-, surveyor fees and expinses, the then prevailing
broker's or $!1lesman commission, Unpaid ad valorem tax amounts, and {e) the appliCiltlon of a discount to the value to be applied to
any future sales Price to arrlvo at its then current fair market value, Onmtors f\lrther stipulate that any value glvcn to such Property In
connection with Grantors' obtaining loan lrom Beneficiary to whkh this Deed Of Trust relates; or not any other rime or times,
shall not ba used and shall not be considered for guidance in deteim.!ning tho fP-ir markot value of such Property on the date of any sueh
foreclosure sale.
1
Leasehold lf the. interest of Grantors the'Prope.rty Is a leJSehold inte.rest and 110t a fu ownmhip, then the lien of this
Deed Of Trust upon tl)e leasehold rights lnefits ofG1'2ntors, but, in no'-tv.ent shall any of the burdens ot obligations under
said leasehold assumed by,or of, Bonetioiary an expre-ss writ1eli instroment, executed. by :Beneficiary
assuming such obligations. the solo dlseretion of Beneficiary.. . .. ... .
. . :. "" : .... : .. .,.s ;:.-,1 . . . . .
To the extent all or any portion of the Property, 1\P. follows:
l
(a) Grantors will at all times fully porform and comply with iill agreementsr covenants, aOd imposed upon or
assumed by it, es tenant Qr lessee., under aity e.nd all leases affecting_ the {collectively, ''J,..eas(!.;;; a.nn:correct;coplos of
... <;
11 oflJ
16
!
1
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whlch GrantOrs shall deliver to B.'. and that shall '. (but shall not be
anY action Benefictary deems necessary or desirable !G or to cure any tkfault by Grantors in the performance of or compliance
with any.of Grantor's covenanJs or obligations under the Leise, UpQh receipt by Beneficia.ey frbm.the landlord tease of any
written notice of default by Gmttors thereUnder, default o! any written 11otipe of default. or the-nat\1.1 thereof be questlohed or clen.led
by Gmntots or by any party on a..Q.d on behalf of Gmtors, Grantors. hereby expressly grant to .E:enefloiruy and agree that B.eneficjary
shall have the absolute immediate dght to enter in and upon the leased premlses or any nart tMreP.fthat Beneficlacy dee,ns nee
essary or desirable ln order to P.revent or to cure any default by Grantors under the ):.ease. rns.y pay and expend such sums:
of money f!S Beneficiary In Its sole cUseretion deenu necessal)'- for any such plllJ>O.Se, and Orantors hereby-agree to pay to Beneficiary,
immediately upon demand, all such sums so paid and expended by Beneficlazy. {Jl sums so paid and expended by Beneficiary shall
accrue intere-st at the rates set forth Jn the NOte and be added to and be secured by the lien of this Deed OfTJl.:!St.
(b} Orantora will not the leasehold estate and Jnterest heielnnbpve destribed, nor terminate or cancel the Lease: and it
\y.ill notj without the express written consent of Beneficiary, modify, Qb.inge, supplliment, alter ()r amend the Lease eiilier orally or in
writing. Any sueh tenninatlon; canceHation, modification, change, supplement, or amendment of the Lease without the prior
written consent the_reto \jy Beneficiary shall be void and of no fotce and effect, h security to Beneficiary, Grantors shalt depslt
with BeMfieiaey an otiglnal oft he Lease and aU amendments thereto or a certified copy thereof, to b retained by Beneficiary until the
indebtedness secured hereby is fully _paid,
(c) No release or forbearance of .any ofGtliptors' obligations-under the Lease, pursuant to the Lease or othenvise, shall release
Orantots from o.ny oflts obligations under this Dee-d Of Trost, including obligations with resptct to the payment of rent as provided
for In the the perfonrrance of all of the tetmS
1
ptovtsions, covenants, c-onditions and agreements contained in the Lease, to
be kept, performed and complied with by Orant.ors therein.
(d) Unless Beneficiary shaH otherwise expressly consent_in writing, the fee title' to the property demised by the Lease and the
leasehold estate shall not merge but shall always remain senamte and distinct, notwithstanding the union of said estates eithel' iri the
landlord or in the tenant, or in e. third party by purchase or otherwise.
(e) If there shrill be filed by or against Grantors a petition under the Bankruptcy Code, 11 U.S.C. 101 et seq, (the "Bnn.kntptcy
Code'?, and Grantors, as under the Lease, determine to reject the Lease pursuant to Section 365(a) ofthe Bankruptcy Code,
,Grantors shall Beneficlary not less than thirty (30) days prior notice of the date on.wbich Onntor12 shall apply to Ba.nkruptcy
Court for authority to reject the Lease. Beneficial}' shall have the right, but not the obligation,. to serve upon Grantors within such ten
daY period h J1-odce statlng__rh.at: (Q Beneficiary demands that Grantors assume and.i.ssign the Lease to Benefic!Y1P.ursUanJ: t(l Section
36S of the l;)ankruptoy Code and (ii) coveDAnts to curo or prQVide adequate assu'ranee and
provide 11-4equnte assurance perfonnance under the Lease. lf'Beneficlary serves u_pon the
_precedlng sentenc.e
1
.GratMt'B sJw.JI the Lease and shall coawly with deman.d .. of the
preceding sente!).ce, wJthhi 30 days after the notice shall have been giVen subject to the
provided fot in -clause (ll) of the preceding sentence.

effective Upon the entry orde[ for ...
Chapter 1 of the Bankruptcy Code, Grantors hereby ustgn and transfer to o non-e:<clus1ve
Court under Subsection 36S(d)(1) of the Bankruptcy Code for an order extending the period during !-ejected
or assumed. .
'"'",...,,..!r.J!I"!l>"
NO OBAJ,AGBERMEffiS
'CHIS WBJITEN AGRRRMRNT REPRF.$BN'f$ THE FINAL AGBEEMEN'f PETIYEEN TliE fARXIRS AND MAY NbT
BR CONTRADICTED nyEVIOENCR OF PRIOR. CONTEMpORANROJffl OR S!ffiSEOUENt i>RALA@REME-NT bF
THE )>A!\TrnS. '.: . .
THERE, ARE NO UNWRJITEN ORAL AGREEMENTS BETWEEN THP. P&R'rfF,S.
'200.2._. Dated this day .,. .,ApRU...
. STACI LTD.,
ORANTORl GRANTOR:
e e l Partner company,
By: __________________________ _

OF /i_.:('JS
Ad _dress

Addtess
(Acknowledgment) ,
Notazy Pu&lie,
My
Past 1:1 ot13
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STATE OF TEXAS
COUNTY OF __ _
I

(AcknOwledgment)
TbJs-instrument was aoknowtedged before me on -----------------------

STATE OF TEXAS
COUNTY OF Ti,c11S
i

Notary Public, of Texas
My conunission expires: _____________ __
(Partnership Acknowledgment)
This instrument was acknowledged before me on April . . 2007 i by Walter Scott Jensen. Member of
S!A Management. LLC. a 'renaa limited liability company. General parlner(s) on behalf of
Stat! P:roperties. Ltd.; a 'rexas limited partne'r'sbip. on behalf of add. partnership,
... : -
(Corporation 'Ackoowledgment)
STATEOFTEXAS
.
COUNTYOF
This was acknowledged before rrn On
by
"
'
corporation. on behalf of said corporation,
Notary Public, State of Texas
My commission.expires: _________ -;------
After recording, return to Beneficiary, at ifs maillng addrw.:, as follow:
AFTER RECORD mG. PLEASE RETURN TO:
OOERNA'f!ONALBANK OF COMMERCE
Credit Department
1)0 'E. Travis
San Anlton!o, Texas 78205
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16
ADDENDUM TO DEED OF TRUST, ASSIGNMENT OF RENTS, SECUJUTY
AGREEMENT AND FINANCING STATEMENT
(STACI PR,OPERTIES, LTD.)
This C<>nwyance, however, is made in TRUST to secure payment of: (i) that certain Real Estate Lien
Note of even date herewith, in the principal sum of One Million Five Hundred Thousand and 00/100
Dollars ($1,500,000.00); (ii) that certain Real Estate Lien Note of even date herewith, in the principal
sum ofOneMillionand 00/100 Dollars ($1,000,000.00) (collectively, the "Note"), executed by the
makers of sald Note, Delta Produce, L.P ., a Texas limited partnership who together with the above
named Grantors, shall hereinafter co!lectively and interchangeably be referred to as Grantors and
payable to the order of International Bank of Commerce, hereinafter referred to Beneficiary, in the
City of San Antonio, Bexar County, Texas and payable as therein provided, including late charges;
bearing interest as therein stipulated, providing for ae<:eleration of maturity and for.reasonable and
necessary attorney's fees.
16
EXIDBIT "A"
TRACT 1:
acres of land sltuatedtn the City of San AntOnio, Bexar County, Texas,
being lot 4, L'ot 5
1
Lot 6, Lot 7, Block 39, NCB 3698; Edgewood Addition,
unrecorded Plat filed In Bexar County Tax Assessors Office Bexar County,
Texas, and a portion of Lot 53, Block 39, NCB 3698, Las VI lias De Merida as
recorded In Volume 9555, Page 72, Deed and Plat Records of Bexar County,
Texasi said 5.779 acre tract of land being more particularly described by
ruates and bounds as fo II ows
BEGINNING, at a found 1/2 Inch Iron rod on the southerly right of way line of
Merida Street, for the northeast(1rly corner of said Lot 53, B{ock 39, same
being the northwesterly corner of said lot 4;
THENCE, S 84 22' 25" E, along the southerly right of way line of Merida
Stree.t, a distance of 706,56 feet to a found 1/2 Inch Iron rod on the
northY.<esterly right of way I I lne of The UnIon Pacl fl c Ra II road;
THENCE, along the arc of a curve to the left having a radius
of 2865.00 feet, a central angle of 14" 22' 30", an arc length of 718.80 feet
and a chord bearing: S 43 .. 18' 4'l" W,. 718.91 feet, to a found 112 inch iron
rod;
THENCE, S 36" 02' 54" W, continuing along tlie north\vesterly right of way line
of The Union Pacific RaiJraod, a distance of 183.64 feet to a set 1/2 Inch
Iron rod on the northerly 'right of way line of' Ceralvo Street for the
southeasterly corner of said Lot 53;
THENCE, N 84" 10' 44" W, along the northerly right of way line of Ceralvo
Street, a distance of 35.88 feet to a set 1/2 Inch rod!
THENCE:, crossing said lot 53, Block the following courses;
N os 34' E, a distance of 90.14 feet to a set 1/2 inch Iron rod:
s 83 48' oo E, a distance of 10.15 feet & set 1/2 Inch iron rod;
N 06' 11' 51" E, a distance of 21.99 feet to a set 1/2: Inch iron rod;
N 83
6
4S' 09" Yl,

di5tanco of 13,64 feet to a set 1/2: fnch Iron rod;
N oa 11 .. 51 E,
a of 230,44 feet to a set 1/l inch trori rod;
N 93 4B' og w, a distance of 23,07 foot to a set 1/2 Inch Iron rod!
N oao 11' E, a distance of 1D.94 feet to a set 1/2
line of said Lot 53, .Block 391
Inch Iron rod on the northerly
l
TIIENCE, N 64
9
25
1
13" 11, along the northerly line of said Lot 53, Block 39, a distance
of 120.01 feet to a found 1/2 Inch Iron rod for .an interior .angle corner of said Lot
53
1
Block 39
1
being the corner of Said Lot(;
THENCE, N oso 14' 30" E, alor19 the easterly line of said Lot 53, Block 39, a distance
of 36j,95 feet t:o the POINT OF BEGit.tllNG of herein described tract, and COI1Uilnlng
5,779 acreg of land, or less,
TRACT 2: .
2.069 acres of land situated In the City of San Antonio, Bexar County, Texas, being
the East 6.31 feet of lots 57 through 65, Block 40, NCB 3699, all of lot 17, Block 40,
NC8 3690, Addition, as recorded In 1625, Page 317, Deed and Plat
Records of Bexar County, lexas, all of Lot 18, Stock 40, NCB 3699, H.A. Stauffer &
H.G. Deviney Subdivision as recorded In 3975, Page 223, Deed and Plbt Records
of Bexar County, Texas: said 2.089 sore tract of Jand being particularly
described as follows:
BEGINNING, at a 1i2 inch Iron rod set on the northerly right of way line of Merida
Street, said 1/2 Inch Iron rod being N 84 22' 25ft W, 8.31 feet from the southeast
corner of said Lot 651
lMENCE, N 06 14' E:, crosstng said lots 57 through 65, BloCk 40, along the westerly
line of that certain tract of land conveyed to West Coast Produce lne. a$
recorded In 7133, Page 986, Official Public Records of Bexar County, Texas, a
distance of 364.13 feet to a 1/2 Inch Iron rod set;
THENCE, S 21' 53" E; along the. northerly line of said Lot 57, ttt a distance of
a,31 feet passing tha corner of Lot 57, sama being the northwest comer of
lot 17, at a distance of 127,92 feet passing the northeast corner of lot 17,
being the northwest oorn&r of t>ald Lot 16, In all a total dlstancQ of 247.52 feet to a
1/2 inch I roO rod set for the. northeast comer of said Lot 18, being the
northwest corner of Lot 19J
16
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THENCE, S 06'" 14' 53a W, along the cOIUIOfl boundary fine betv.'fJen Lot 18 and Lot 19, a
distance of' 364,09 feet a 1/2 Inch Iron rod set on the northerly right of way I ina
of lferida Street, for the sOUtheOJst corner of said Lot 18, saltle being the $outl"wrest
QOmer of Lot 19;
THENCE, N 84" 22' zs.w, along tM northerly right of way 1 lne of Merida Street, at a
distance of 119.60 feet passing the southwest corner of Lot 18, saMe being the
si>Utheast comer of Lot 11, at a distlln<Je of' 239,21 feet passing the soutffllest corner
of lot 1'1, belllS the southeast corner of lot 65, In all a total distance of.
247,52: feet to the POINT OF BEGINNING of herein dascrlbed tract, and containing 2.069
acres of land, or less,
MAY Io 2007
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ASSIGNMENT OF LEASES AND RENTS
THE STATE OF TEXAS
COUNTY OF BEXAR

Ill m1 I I IIIII nil!! II! 11111111111111111111 m
LT2-12B62-164-5
THIS ASSIGNMENT OF LEASES AND RENTS dated this_. day of
April, 2007, is executed and delivered by Stac! Propertjcs, Ltd., a Texas limited partnership,
whose address is 2001 S. Laredo Street, San Antonio, Texas 78207 in favor of
InternationalBanlt ofCommer<:e, a Texas banking association C'Lender
11
), whose address is 130
E. Travis, San Anionic, Texas 78205:
).tECITALS:
1. Assign oris the owner of the real property described in Exhibit "A" attached hereto
and hereby made a part hereof (the "Land") and, together with all improvements now or hereafter
constructed thereon or relating thereto (herein collectively called the "Mortgaged Premises").
2. Lender has requiredAssignor, and Assignor has agreed, to assign to Lender to provide
a source of future payment of the fndebtedness (as defined herein) certain rights in respect of all
present and future leases (hereinafter referred to individually as "Lease" and collectively as "Leases"}
of the Mortgaged Premises.
3, The term "Indebtedness" as used in this Assignment shall mean and include the
indebtedness, present and future, owing and to become owing to Lender, as follows:
a. All indebtedness now and hereafter. evidenced and to be evidenced by: (i) that
certain Real Estate Lien Note dated of oven date herewith, in the original principal sum of
One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00}, executed by
Delta Produce, L.P., a Texas limited partnership; and (ii) that certain Real Estate Lien
Note dated of even date herewith, in tho original principal sum of One Million and No/100
Dollars ($1,000,000.00), executed by Delta Produce, L.P., a Texas limited partnership
( CQ!lectively, the "Note") and payable to the order of Lender, and bearing interest at the rate
or rates therein stated, principal and interest payable to the order of I:ender on the dates
therein stated;
b. extensions, increaSes, modifications and rearringements of and
substitutions for the Note;
c. Any and all sums, together with interest accruing thereon as herein provided,
which may hereafter be advanced by Lender and/or owed to Lender under and pursuant to
Ote terms of this Assignment; and
d. All obligations and indebtedness of Assignor (the Note and. all such other
documents or instruments now or hereafter evidencing or securing payment or performance
of all or any part of the Note being herein collectively called the "Security Instruments") and
all modifications and amendments thereof; subject, however, to the tenus, provisions and
conditions herein set forth.
AO).tEEMENTS AND COVENANTS:
For and in consideration of the furegoing and the sum ofTen Dollars ($1 O.j)O) and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Assignor does hereby assign and covenant as follo:vs:
. .
1. Assignor does hereby TRANSFER, ASSIGN and CONVEY unto Lender all of
Assignor's title and interest in and to all Leases, in connection with the Mortgaged Premises.
Each thoe Assignor enters into a Lease any of the Mortgaged Premises, said Lease shall
automatically become subject to tlus Assignment without further action of either of the parties
thereto, Without limiting the effect of the prior sentence, Assignor agrees to deliver copies of all
Leases presently in force in connection with the Mortgaged Premises to Lender contemporaneously
with the execution of this Assignment and when futnre Leases are executed, copies thereof shall be
delivered to Lender forthwith. Each such copy shall contain a statement signed by Assignor that
such Lease is subject to this ASsignment. The assignment co'ntah1ed in this Assignment of Leases
and Rents is absolute, unconditional and presently effective.
2. Assignor will not, without the prior written consent of Lender, such consent not to
be unreasonably withheld, (i) substantially modify the terms tl1ereof in any way, either orally or in
writing, (ii) grant any substantial concession in connection with any such Lease, either orally or in
writing, (iii) consent to the assignment of the lessee's interesi In any such Lease to any entity or
individual not affiliated with, or controlled by, Assignor, or (lv) reduce the term of any Lease and
any of such acts, if done without the written consent of Lender, shall be null and void.
3. in no event shall tlus Assignment operate to.hopose any duty or obligation upon
Lender to demand, sue for or othenvise make collection of rents or other sums from time to time due
and owing by a lessee under any of the Leases.
4. This prior to en(ry upon the Mortgaged Premises by Lender, shall not
operate to make Lender a mortgagee in possession nor to place responsibility for the control, care,
management or repair oftheMortgaged Premises upon Lender, nor to place responsibility on Lender
for carrying out any of the terms and conditions of the Leases, nor shall it operate to make Lender
responsible or liable for any waste conunitted on the property. by any lessee or other party, or for any
negligence in the management, upkeep, repair or control of the Mortgaged Premises resulting in loss
or injury or death to any lessee, licensee, employee or stranger. No liability shall be asserted or
enforced against Lender, all such !lability being hereby expressly waived and released by Assignor,
and should any such action be brought against Lender by reason of this Assigrnnent, then Assignor
agrees to rehoburse Lender, immediately upon demand, for all costs, expenses and reasonable
attomeys' fees incurred,
5. Until receipt from Lender of notice oft he occurrence of a default specified in the Security
Instruments (hereinafter called a "Notice of Default"), each lessee under the Leases may pay rents
under the Leases directly to Assignor and Assignor shall have the right to receive S\tchrcnts provided
that Assignor shall hold such rents as a trust fund to be applied as required by Lender and Assignor
hereby covenants so to apply such rents, before using any part of the same for any other purposes,
first, to the payment of taxes and assessments upon the Mortgaged Premises before penalty or
interest is due thereon; second, to the cost of insurance, maintenance and repairs required by the
terins of the Loan Documents; third; to the satisfaction of all obligations specifically set forth in tho
Leases; and, fourth, to the payment ofinterestand principal bceoming due on the Note. Upon receipt
from Lender of a Notice ofDefuuit, each lessee under the Leases is hereby authorized and directed
to pay directly to Lender all rents thereafter accruing and the receipt of rents by Lender shall be a
release of such lessee to the extent of all amounts so paid. The receipt by a lessee under the Leases
of a Notice of Default shall be sufficient authorization for such lessee to make all future payments
of rents dirootly to Lender and each such lessee shall be entitled to rely on such Notice of Default
and shall have no liability to Assignor for any rents paid to Lender after receipt of such Notice of
Default. Rents so received by Lender for any period prior \o foreclosure under the Security
Instruments or acceptance of a deed in !leu of such foreclosure shall be applied by Lender to the
payment (in such order as Lender shall determine) of: (a) all expenses of managing the Mortgaged
Premises, including but not limited to the salaries, fees and wages of a managing agent and such
other employees as Lender may deem necessary or desirable; all expenses of operating and
maintaining tl1e Mortgaged Premises, including but not limited to all taxes, assessments, charges,
claims, utility costs and premiums for insurance, and the cost of all renovations, repairs
2
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or replacements; and all expenses incident to taking and retaining possession of the Mortgaged
Premises and/or collecting the rents due and payable under the Leases; and (b) the Note and other
indebtedness secured by the Security Instruments, principal, interest, attorneys' and collection fees
and other amounts, in such or4er as Lender in its sole discretiop. may determine. In no event will this
Asslgoment of Leases and Rents reduce the Indebtedness, except to tho exten4 if any, that rents are
actually received by Lender and applied upon or after said receipt to the Indebtedness in accordance
with the preceding sentence. Without hnpairing its lights hereunder, Lender may, at its option, at
any time and from iline to time, release to Assigeor rents so received by Lender or any part thereof.
All between Assigeor and Lender, and any person claiming through or under Assigeor, other than
any lessee under the Leases who has not received a Notice ofDefault pursuantto this Paragrsph 5,
this Assigoment of Leases and Rents is intended to be absolute, unconditional and presently effective
and the provisions of this Paragraph 5 for notification_ of lessees under the Leases upon the
occurrence of a default specified In the Security Instruments are intended solely for the benefit of
each such lessee and shall never inure to the benefit of Assigeor or any person claiming through or
under Assigeot, other than a lessee who has not received such notice. It shall never be necessary for
Asslgeee to institute legal proceedings of any kind whatsoever to enforce the provisions of this
Paragrsph 5,
.At any iline during which Assigeor is receiving rents directly from lessees under the Leases
and during any iline whichrents are past due, Assigeor shall, upon receipt of written direction from
Lender, make demand and/or sue for all rents due and payable under one
0
r more Leases, as dhected
by Lender, as it becomes due and payable. In the event Assignor fails to take such action, or at any
time during which Assigeor is not receiving rents directly from lessees under the Leases, Lender
shall have the light (but shall be under no duty) to demand, collect and sue for, in it< own name or
in the name of Assigeor, all rents due and payable under the Leases, as it becomes due and payable,
includhtg rents which are past due and unpaid.
6, Assigeor hereby covenants and warrants to LenderthatAssigeor has not executed any
prior assignment of the Leases or rentals therefrom nor has Assignor perfonned any act, or executed
any other instmments wlrlch might prevent Lender from operating under any of the terms and
conditions of this Assignment, or which limit Lender in su-ch operation.
7. None of the lights or remedies of Lender under the Note or any 9f the Security
Instruments or under any other instrument now or hereafter evidencing or securing payment of all
or any part of the Indebtedness shall be delayed or in any way prejudiced by virtue of this
Assigoment, and this Assigoment is intended to be cumulative of and in addition to all such rights
and remedies.
8. Upon satisfaction of the Indebtedness described herein and termination of the
obligation, if any, of the Lender to make any further advances under the Note, litis Assigoment shall
be deemed null and void and of no further force and effect.
9. All covenants and agreements hereinabove contained on the part of eitherparty shall
apply to and bind their, legal representatives, successors and assiges,
The absolute assigrunent of the rents 1lllder the Leases contained in tills Assignment is in
addition to and not in lieu of, the collateral oonveyance contained in the Security Instruments. lt is
the intent of Assigeor and Lender that no conflict exist between the absolute assigement contained
in this Assigmnent and the collateral conveyance contained in the Security Instruments.
.if and to the extent a conflict is perceived to exist as to the rents under the Leases, such conflict shall
be resolved in favor of the absolute assigoment contained in this Assigoment.
effective as of the date first above written.
3
::

l
._,
"ASSIGNOR"
Staci Properties, Ltd.,
a Texas limited pa1inersltip
THE STATE OF TEXAS
COUNTY OF WfiS

Before me, the undersigned authority, on this day personally appeared Walter Scott Jensen,
Member of STA Management, LLC, a Texas limited llabtllty company, General Partner of
Staci Properties, Ltd., a Texas Jhnited partnership, known to me to be the person whose name
is subscribed to the foregoing insuument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, in the capacity therein stated and as the act and deed
of said partnership.
Given under my hand and seal of office on this / L/'&,.y of April, 2007.
recording, return to Beneficiary,
mailing address, 1111 follows:
Mr. 1-.fichael K, Sohn
tntematiomll Bank ofCommerre
130E. Travis
San Antonio, Texas 7810.5
4
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EXHIBIT "A;'

TRACT 1:
S.779 acres or land situated In tho City of San Antonio, County, Texas,
being Lot 4, Lot 5, Lot 8, Lot 7,' Block 39, NCB 3698, Edgewood Addition,
unrecorded Plat In Bexar County Tax Assessors Bexar County,
Texas, and a portion or Lot 53, Block 39, NCB 3698, las Villa$" Oe Merida as
recorded In Volume 9555, Page 72, Oeod And Plat Records oF Bexar County,
Texas; said 5.779 acre traot land being more particularly described by
metes and boundo as 'Follows;
BEGINNING, at a round 1/2 Inch Iron rod on 'the southerly right of line of'
St:reet, f'or the northeasterly comer of" said Lot 53, Block 39, same
baing the northwesterly corner oF said. Lot 4;
THENCE, S 84 22' 25" E, olong -t.ha southerly right of' way line o'f Mlilrlda
Street:, a distance of' 706,56 feet 'to a f(lund 1/2 Inch Iron rod on tho
northwesterly right: of" way I line The Union PaciFic Railroad;
THENCE, Southwesterly, along the arc of' a curve to the \ef"t having a radius
or 286!3.00 -r-eet, a central angle or 14" 22' 30", an ore length of' 718,80 f'eet
and a chord be:c.r!ng: S 43 ... 18' 41" W, 716,91 reet, to a round 1/2 Jnoh tron
rod;
THENCE, S 36'" 02' 54" W, continuing along the northwozterly right of' way line
of' The Union Pac!Tio Rallraod, <!! distance of' 163,64 f"eat to a set 1/2. lnoh
Iron rod on the northerly riOht! of' Wily I Ina of' Cer-alvo Street 'For the
southeasterly corner oF lot 531
THENCE, N 84" 10' 44" W, nlong the northerlY right of" way line of' Cef.alvo
Street,

distance or 35,88 Feet to a sst 1/2 lnC"Jl I ron ro(l;
THENCE, oroaslng said Lot 53, Dlaok 39, the f"ollowlnff courses:
N OS" 34' 47" E, a distance of' 90,14 "feet to a se< 1/2 lnoh Iron rods
s 83" 48' 09" E, a distance of" 10,15 Tcot to 8 oet 1/2 Inch Iron rod:
N os
,.
51" E, a d I stano& of' 21.99 feet to a < 1/2 Inch Iron rod;
N 83" 48' 09" w. a dfatance oF 13,64 !""eat to a 1/2 inch Iron
N oa
,.
51" E, a dlstant::a oT 230.44 to a 1/2 Inch tnm rod;
N 53 48' 09" w, a distance 01'" 23.07 to
set 1/2 lnoh lr<lrt
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,.
51" r.. 8 dlstanee of' 18.94 fee't; to o set 1/2 Inch Iran rod on t;.he northerly
llnlil of' said Lot 53, 131ook .39:
THENCE, , N 04" 25' 13" W, along thu north&r!y I in& of'&" ld Lot 53, Dlook 39, a distance
of" 120,01 f'eet: to a round 1/2 inch Iron rod For an lntl'lrlor angle comer or !'laid Lot
53, BiaGI< 39, aa111a baing the ""outhwost:orly c<:>rner of' lot> 4J
THEJI.'CE, N osa 14' 30" e, 11!ong the ea.aturly line oF said lot 53, Block 39, a dlstanclil
of" 363s95 "feet to the POINT OF SEGIM-liNG of herein described tract, and containing
5.779 acrQs of' or llilss,
TRACT 2:
2.069 of' land situated In the City oF Antonio, BOXGI' County, Texas, being
the East 8,31 Foot of' le>ta-"51 thrOI.Jgh 65, Blook 40, NCB 3699, all e>"f lot 11, Blook. 40,
NCB 3699, Edgewood Addition, as reeordad lt1 Voluu.u 1625, Pagu 317, Deed and Plat
Rocordes o"F Bl'.lxllr Count.-y, and aft of' Lot 19, Blook 40, NCB 3699, H.A. Stl'luffer &
H,O, Deviney SubdiVIsion 11s reoorded In Volume $975, Pag"' 223, Deed and Plat: Reoords
of' Bex.sr C.tnty, Texas; said 2,069 aore tract o"F lnnd be-Ing II!Ore particularly
described as f"olloi'ISl
BEGINNING, at a 1/2 Inch Iron rod se-t on tho northerly right of' way line of" Mer! de
Street, eeld 1/2 fneh Iron rod being N a4m 22' W, 0.31 f"aet the .southeast
corner of said lot 661
lHENCE, N 05 14' 53" 1:0, orossing ssld lots 57 through 65, Black 40, along tha westerly
line of" thtlt certal11 treot of" lend c::onveyed t;o West Coast Produce Company, Ina. as
recorded In Vo!UIIIe 7133, 968, Of"f"lolal Pub! Jc Racordu of' Bexar County, lexas, a
dlsttlnoe of 364.13 f"eet toll 1/2 lnoh Iron rod setf
THENCE, S 84" 21' .S3" E, along tho northerly of 57, at a distance of"
8.31 f'"aot p<IS$Ing thlil oonwr of lot 57, saroe being th!il northwest: comer of'
Lot 17, at u dlatanoa of" 12'1.92 feet p.$salng the. northaaat comer of' Lot 17, sa111a
being "the northwest corner of" said lot 18, In all a I dlst:anoa of" 247,62 f"eet to a
112 tnoh Iron rod set -For th!il northeas:t com&r oF snld Lot 18, u-a111a baing the
northwest corner Lot 19;
THENCE, S 05 14' 53u W, along the line between Lot 18 and Lot 10, a
dlstanoe of' 364,09 feet to a 1/2 lneh Iron ;od set on tho northerly right of way line
of Street, for the southeast oF $aid Lot 18, same being the southwest
corner of Lot 19;
THENCE:, N 84" 22
1
25" W, along tha northerly right of way line of Nerld.!i. Street, Bt.a
dlstBnce of 119.60 feet passing the oorrtar of Lot 18, same being the
southeast corner of' Lot 17, tit a <ilst:ance of' 239,U feet passing tho southwest corner
Lot 11, bolng the southeast corner of 05, In all a "total distance of
247.52 feet to the POINT OF BEGINNING of herein dosbrlbed tract, snd containing 2,069
acres oF land, rwre or less,
2001010s6es Fees; $32,00
05/10/2007 Pagee U
Flled & in the OffloJal
Records of BEXAR COUNTY
GERRY RICKHOFF COUNTY CLERK
piJbUc
MAY 10 2007
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$ 2,000,0Q9.00. ' '2- , 2005
v,alue received, the'. receipt of wlilch :Is aokn,owledged,.th6. uridersigned, severally,
{hereinafter, neorrower"'-, whether QM Qr -promise tQ pay to order of . . .
(hereinafter, "Lender), at 130 E. Travis, San Aheonio, BexarGounty, Texas the .sum of
Two Million ana No/100 . . . . . . .
($ 2 000 QPf.l ob },'ln.legal .an? I of th9 United States qf Amerfp6, with Interest f4$. It
QO tpe ot.rtstanQing prlnclpel da f (ldvancQ; of s.uch,prlncfpal until pald.
. . The' interest 'shall be. floating at ?s . e New York (
11
Priine Rate") ..
(describetl'below) as it fluceuates from time'to time; Provided, that ip no event
shall the rate of intereSt: (plus s'aid iuoount 'in bxcess th,ereof, if anv) to be paid on
the unpaid principal of this Note. be less than .4, 75% per
more than the ma:dffiUm rate- allowed, by appl,icable. law . T'tie Start.-j.ng interest.
rate onthis Note shall ba 5.75%.pet annum. of interest due hereunder snall be
recomputed as .. of the date "of c\tiy in the Prime Rate .. , '
New York P.r-fme shall mean th.e annual .lending rate of interest announced from
time to time by 'JP Horgan Chase " Co., New York, New York, ,as -its rate. the
New Yotk Pr1ma Rate has been selected as .the Prime Rate and i:!!"r. thereafter, prime rate
is not announced by JP Morqan Chase & co., NE!w .York, York, then the Interriational Bank
Of Oommerce Prime Rate, minUs pne percent (1%) the.Prime.Rate. .
....
......!.:;:: ..... ., .. 1 :.::
. .E.;.:: ..
1
: :.( :.: .;.:.;.;:.
<
..
:_'? :: t. ..
..::/\ ,' .... :: ..
;! '. '
?:/.: :.:r :.:: , '. , .. ;:: if'}:::: To. secure payment :of .. to the .. allpwad b.y iaw, all :o;har'lndabtadness which may af any time be
.. 1:1.': ;t:: : ,.- owing by the or any of them, Borrower hereby gr8nts to Lender a security Interest and !len on the foltowlng
.. .. ;oaJ!ateral : .
.... .' :.:(
1
: :. . All assets of Bon:owei: described on the SecClrity Agreement in connection with
this Note. . . . . . . . . . .
:. . ,.;:.::.- . .' .: ,: : t/ a(Jreos to take adequate care. of the oollatei'al and tha cbnateral with a company.sattsfaciory to Lei1der, ,
.' . .. ;: ; .. .... ... : .. . suqh hazitrdS, .and In such amounts as directs.. If Borrower fails to furn1sh Lencter wlth proof of rectulred
: ;:-::.:' .. : : : ) . -: . ' .. !lneu!anoe Lender shell have the authority to -purchase lnsurahce UOcludlng single Interest InsuraNce, which maY

t.!: : .. -) .. ;provide protection only for Lender} ,and aQd the premium for such Insurance; with at the,loal)
: .:!. :: \. rate, balance of this Noi6. . . . . . : > . ..
:r- -.:;:: ... : :.:': .>. l",The Interest Is calCulated on a factorapPlled.on a yeat, or a 366day year, In the event tl)at the year Is
. ': ,. ; : : lef!p year, on the unppld prlnnlpill to the date of each lnsiallment pale{, Provided, .however;that;ln the event the lntE!reat
: :: .. ::; .: . : reaches the' maximum' rate allowed by applicable law, safd.maxlmum tegal rete shall be cOmputed on a f!-ill calendar
.:. :.:'.\.:J .:. .= : ) _.;year 36!S/366 days basis or on a day.s basis, In .the event .tllat the year Is a leap-year. The Interest charged and
.:. ::= :.f . ... :. . herein contracted for will nq,t exceed the ,m!lxlm\'m allo",Ved,by la'o'{. . . . . :
: .' ::: ;.:, . .-_:: rQ the extent all by u.npald will bear Interest' compt.it6d a full calanQar year 366/366 days
' . _. :: , ; :basis or on a 366/366 days basis, In the event that the year Is a leap xear, at the hfgh_e;st legal rfite of !i!llowec,f by
... Texas Law, unless Federal LaW allows a.h\gher rate, In whtchcase, Bqrrower agrees to pay the rate allowed by
EXHIBIT
'/::Federal Law.lf appllcici.ble law does not seta maximum rate for matured.unpald then Bo.rrower agrees
the maxlmum rete for sUch' amovnts 'shall ba. eighteen Percent {1 6%).per ant\i.rm..
/., the 6xtent alloWed as.th:e.late Under ihls may ;nIts discretiOn (I)
Interest on the principal -portlon.ofarw paymel'\t.amount th'at Is not received by' the payment dUe date to the
rate allowed by law, computed on a full calendar yepr basis from the paym,ent duo date until paid, or Ill), sho.uJQ ..
"'lll!!llllllll!llll!!lfi!!IIIIIIIIIIIJIIll!'f:, :.:.any payment not Qe made within ten {10) days from the' due date. require Sorro'-:{er'to pay_ a one time "late charge"
payment io"flvo percent (5%) of the amount of the past due p'rlnc!Pal and Interest of such payment, wlth a
._ .... .. ... ...... .. : f . . :"' ::-:::+::L of $10.60 and a maximum of. $1 ,6QO.OQ per' late paymont . The charge" may 'assessed notroe,
... : . '. ' shall be rrnmedlaiely dtJe and payable. : . . . . ' . . : . .
. . ..
I
;;
...
' . .,
' ' I'
The oLitstimdlng and unPaid Prlnclpa....:Jf this Nate' and all accruet;l and \fnpat Interest are payable Immediately upon
demand, or Js.m
1
ada,:han sums are paYable
Number of . . . . '. . Amount of Payments ' 'Wben are Due
Payments and a.part for .
.
Fh\al MatiJrfw. :oato: March 2010
each shall be apPlied of Its scheduled date andtn: th!il orde.t of as tha Its sola
discretion tTiay from time to elect. . . . . '
. .
All outstanding unpaid pt!nolpal, all accrued and UnP.aldJnterest, andan fees, late Qharges, ar{dJor other chatges Incurred
In this trans6ctlon by, or for thB Benefit of, aprrower which remain due.and (_)Wing on the Final Maturity_ ere due and
payable. date. ' '
t:ende
1 11 1ay, a(its adjust ,tbo' 61iiOtmt todle. abe've t? that the _remaiRIRg
, pay1 11e11ts fully OJilOi tizt: .tl.'?, pdnoipaJ of Nata eo tire stated-mettJrlt
1
voltRetit a.nr !JF
n!IS OBLICli<'fiOI; liM 9'1H! F<'lLLGWING BEMAND FEATU . ,
I . ' ' ' .
At any time. and from time _to time, whethor ot priOr to antf/or during sald a9hiduled date.s, lender r:nav, In
Its sole and absolute dlscretloh, resch , (aarrange and/or accelerate, In whole 9r In part, the. ciutatandlng end unpaid
prln61pal,ba1Bnce, and all ilocrue unjtald Interest all accrued .and unpaid late.charQes under Note. ,aorrowar
agrees and promises to ender all accelerated .Principal arid all accrUed and unpaid lnte'niat Ot) such prjnclpal, an<l all
accrued and unpal . e charges, No notlcO of Intent to acCelerate shall be required. of Lender and expressly
waives an . t to notice of (.ender's lntant to accelerate. Tha foregoing right tll makEi demand for Immediate payment
of t ote, In whole or In

may be exorcised by Lender for arty reason whatsoever, ,whether -or not Borrower Is In
THIS OBliGATION HAS A BALLOON PAYMENT PROV.ISION:
THIS LOAN IS PAYABLE IN FULL ON THE FINAL MATURITY DATE SIT FORTH HEREIN IF NO. PRIOR DEMAND HA.S BEEN MADE. ON
FINAL MATURITY DATE YOU MUST REPAY THE ENTIRE OUTSTANoiNG UNPAID PRINCIPAL BALANCE, ALL ACCRUED AND
UNPAID INTEREST, AND ALL FEES, LATE CHARGES, AND/OR OTH"ff CHARGES INCURRED IN THIS TRANsACTION BY, OR ON
BEHALF OF, BORROWER, WHICH REMAIN UNPAID. LEND<R IS UNDER NO OBLIGATION TQ REFINANCE THE LOAN, OR ANY
PllRTION THEREOF, AT THAT TIME. YOU WILL" THEREFORE BE TO MAKE PAYMENT OUT OF OTHER ASSETS YOU MAY
OWN, DR YOU WILL HAVE TO FiND A LENDER, WHICH MAY BE THIS LENDER, WHICH AGREES TO LENO YOU THE MONEY TO
REFINANCE. IF YOU "REFINANCE THIS LOAN AT MATURitY, YOU MAY HAVE TO PAY SOME" OR ALL OF THE CLOSING COSTS
NORMALLY ASSOCIATED WITH A NEW LOAN, EVEN IF YOU OBTAIN REFINANCING FROM THIS LENDER.
. . . . ' ' '
The fallure of Borrower to pay any of the payment(s) of principal' or' any lntf)rest thereon, and/or Jato charges when
the same IS due and payable, s.ha\1 permit Lender, at lte option: to accelerate the meturlty, without notice to Borrower, of
all, or any p,ortlort, of the unpaid principal balftnce outstal)dlng, all accrued and unpal$11nterest end ell accrUed
and unpaid late charges of this; Note, the same; shell be. due and payabte ln1medlately. .
at ItS dlse;etleti,'m'a, Jaelare ail 6'!oIR a,.Bem'Vt'ler ePod/-t:,'; eh:Je
HJ9eH deen.lflg ltl3t:lf te. be' fidvefseiJ affe.eted tmdler jRseettre bt rea sen ef euir ;natytlal elt610JB' fn Bl'lr ef
Berro er's any eAdeHIBI s ald/ar Warth, er l3 { reaseff ef BAJ ethec material eAeRB ef eaREfltlen
wketiLer er"Aet desefibeEl hef6in, '
Borrower and Intend f:he loan Nota tr{ strict, comp.ltanoe with
usury laws. If at any tlnle' anv Interest contracted for, or tecalved under this Nota Or otherwfse tn oonn&ctloh
v.(lth the Loan Would be UsurioUs under a.pplloabl6 Jaw, then re{Jardless of the ptovlslpns of this Note or the documents
( ' . . .. . . .
.
: ... :.
. and lnstrumerits or executed lh. connection With the or any8ctlon or event.(lilcludlng-,
W,lttlout llmltat!Pn; of prinotpal hereunder or aaC"e!eratlon of.maturlty by th.e Lender) Whfoh may occur with
"to this NOte or tlie loan, It is .ag_reed that all-sums detenntned to be usurious shall be lmm"a(lfately ctodlted by
Len'der as a payment of hereunder. 'or If this Note haS already. bee1i paid, ImmediatelY refunded to tha Borrower.
All ythlch ,pons;tltu.tes lntete!lt l.md.er applicable law In connectloia with. tho ioan shall ba amortized,
ptorated,
full per,lad of tlme,any la ()Wing by BOJ:l'OWor, to the greatest extent :;: :.; . . ,
"':'ithout, excee.dlng rata allowed by appHoabfe law In effe9t from tlfne to tlmo during .. ?'' 'i .. . ) . . :. ':::
such period. . : ' :-!." '")
Coda twhfch certain revolving loan :;:;;: .. ':;n;)':l ,< .
1N ANY TERMs ort c.otirAINEQ IN THIS INSTRUMENT ARE IN THE .LAws ,.'_ . .;:,': ... :
(J :\ ,., .. , :
UNDERSIOOD AND AGREED THAr fN NO EVENT ANa UPON NO C6NTINGEN.CY SHALL THE 130RROWER OR ANY PARTY LIABLE , ' . , . .
THEREON, OR THEReFORE, BE ABOUIRED TO PAY INTERES'f IN EXCESS OF RAIE ALLOWED SY iHE LAWS OF THE STATE OF :;;
1
.: '

To" :i'}\i? : f ' .' ' >;
THE BORROWER. SURETIES; G.UARAiHORS AND PERSONS [THE . ;t,:::.r,:: .... ; .,=' :. . ?(
HEREBY, JOIN}'LY AND SEVERALlY; WAIVE .ExPR.ESSLY ALL NOTICES oF OVERDUE INSTALLMENT . 'X:;.
;r B;

:i-: DISHoNoR; oF OlLIGE;.H:eIN,o.;_tecTioN HEREoF: eAcH oauGoR
. .' :,,.; .. .: eONSENTS 'f'HAc THE OR 0\ . -'a HOLDER OF THIS MAY AT TIME, ANO FROM TIME TO TIME,
. :F: ... :-;., .:.;,,;;., .. ',' UP.ON REQUEST OF OR BY A<,JREEMENT WITH ANY OF TJ.IEJo,j,. RENEW THI.S AND/OR.EXTE"'D THE DATE OF .
. :. ':.>,.'".;._,;.- .. ., , :,: .;:.:.MATURITY HEREOF DR'CHAN(iETHE TIME OR METHOD Of PAYMENTS WITHOUT NOTICE TO ANY oF THE OTHER
.,;; ;.}}.'':: . ::' . .. ,,.'.: .; ... '::: .. . OBLIGORS, MAKERS, . SURETIES OR . ENDOflSERS WHO SHALL. REMAIN. BOUND FOR THE. PAYM!ONT HEREQF,
... ,.-,._,. .... ; .. : . ....... , '''OBLIGORS WAIVE EXPRESSLY THE LATEFILING OF t>,NY SUIT OR CAUSE OF ACTION HEREON OR ANY'OELAY IN
/ .': .' : : .. f :::.',!THE HANDLING OF ANY COLLATERAL. . OBLIGOR$. AGREE THAT HpLDER'S ACCEPTANCE OF PARTIAL OR.
{; .:.'.:,: J:, ', ::;DELINQUENT PAYMENTS OR FAILURE OF HOLDER TO. EXEROISE ANY RIGHT OR REMEDY CONTAINED HEREIN QR IN
":. , . .. : ._. .' ; ,,-ANY .INSTRUMENT GIVEN AS SECURITY FQR PAYMENT OF THIS NOTE SHALL NOT BE A WAIVER QF ANY
. .', .._', .... .. ..... ... :: .. [,:;::

" \: Tq the extent allowed by Jaw, as se6utlty tor tht.s Nota, and a!l Qther Indebtedness which may-at any time be owing Oy
.' .. ; aorrower {ahd any endoraers and/or guarantors hereOf) to lanCer or other holder hereof, the Borrower (and any endor%1era
. : . ' . . , ij.Or)/or guarantQr{i hereof) gives ro Lender or other holcfer hereof, a securlw .a l!eri and cqnuactuel right of seH>ff
:: :.:.: :. ' . . . ':q, In and to all of the Borrower's (end any l)ndorsers Qnd/or guarantQra credits, accounts and/Qr other
. ".' .: :. , . j' ; . : property now In, or at any time hereafter coming the custody or control of Len<,!er or other holder, horeof, br any
.. . : .:,; :":.: ' .. ;; ... .: :; .... : :r member Bank or jlranoh Bank 'Qf International Banoshares CQfporatlon;whathar) held In a general or spec{al accOIJnt or
::.:: ".: .: .':.) : ..:}deposlt
1
or for safekeeping Qr otherwise. Every sucf\.securlty ltiterest and right of set-off may be Without
.;. ::: !, or notice t9 Borrower (tm9 any endorsers an<t/or gu(lrant6ra hereof). No Interest or .right of sat-off tq
. ' r: :::.: .. ";:"" f. . : ... -:::: $UCh t;;ecurlty Interest' Dedeemed to havtl bJen.walved by en.y conduct 'on, the pa'rt of Lander, or by
:. :'. . .. ::. ;f.: :,:; .. +; fa1lure to exerclso su,ch right of aet-off ,or toenforca _such s.ecurlty h;terest, o,r by any delay In ao c;lolng, Every right of
.. ... ... ::. . :: .... an<f Continue In full force and effect until such right of or lnterlJst la
:,, '.. : .. :::, t:;;':: .. : Waived or rell!lased by an Instrument 11'1 W(lting axecuted by Lender. Jf)a foregoing Is In ijddltlon tQ and not In
,: :., : :
1
\i , .. , ;;: ;-: lieu of any rights of set-Qtf allowe,d by law. .....
>. ::.::;;:>< .. { In connection w.tthan:y .transaction between BotiQWer and Lander at. any tfmo In the pest, present or' future, thri event
; ... :: . ' ,._..: . Borrower, or Jointly with othais, has granted or' gi'ants Leilde'r ia l!an on cmy reel 'and/or personal
:::
1
: .. t.._; .. ." -Borrower agrees tliat the !len orvsuoh real andto'r ,personal prop' arty aliall' also seoure the of Borrowar tp
... :. ,(:.-: : ! :; . .. . : r - Lender evidenced by thla Note 'and afl ren6wals, extensions and rn.odlflca'tlon's her8of .
... 0<'',;', .... f'} . . .
: ;; . .' ::: ) ; :\:' :f!. If this Note, or any part hereo'f, Is not paM according to Its terms Is pl13ried In the hm\Cl.s of an attorney for co!lectfon, or Iii
. '. .. :\ ; y . =: :.:collected throl!gh Probata, Bankruptcy or other Judfclal or nonJudlclal whether matured by expiration of time
: ,"
.' " " .... : or by the exercise of tl)e optlon given to the Lender to mature lt
1
the Borrower and afl parti(IS now or hereafter personally
:: : .. .:-:':.:: hereOn hereby now agree' to and shall pay an bddltlonal amouot equal to a reasonable and necessary attorney's foes
, :; .. J .. :.-.: and assoclatedcosts for col!eotlon. Said attorney's foes and of cQIJectlon, liquidated and paid by Lender or
< : : .. ; :-'
1
l : ... .:othfi1rwlsa allowed by law, will boar lntE)rest at the rBte of lntorost applied to the matured ani:l prino1pol'ba!anQe
::::: . .; _,f thiS N?te as such rate may change time to.tlme dot!) due re'p.a/d.'. ;_, . ,
. I .' ,,. :L ; : _ ; -; ;. In .the event any legal a'ctlon or J)rooeedfng, by arblttat\on or otherwlse-' Is commenced with the enfqrcemant of, or any
:: . : .: .. :. : :.: . -; .. ':.;:;: !_. :feclaratlon of rights under this Note and/or any InstrUment or written a_greement required or delivered under or purslJent
. ..: . .... ::- . .. :! :.to the terms of this. Note, anQ/or any controversy or claim, Whether sounding In contract, tort or statute, legal or
: 'i' ; .. "; '):: .. t:'1:-:.: equitable, Involving In any way the flmmclng or the transactlonls),'tlie svbjeot,_of this or sny other p'roposed or
r.-=..:-. ..:_;: " . .' .r . :..:-- : actual loan or extension of or-edit, tHe ptevalllng party shall be entitled to recover reasonable e'nd necessary attorney's
:;.f .' : -:: . . .: rees, para!egal costs (lnoluding Bllooated costs' for ser:vloes}, cost!:l, exPenses,. expert witness fees en<J
.,.-. .- ... ... :;J: ;. end other necessary disbUrsements made In' connection with any sucp:aotion or proceeding.
. .::. . . 13 f' : ;. : -.:.;' . .
" ,.. .' ::. ;. : :.end at, In lt$ sole dl!:>cretlon and without obligation on Lem:jer to do so; may advaric8 and pay sums on behalf and for they
: ... ', :. ';lenefit of Borrower tor costs necessary for the nrotection and preserv'atlon of the securing this .Note and other
: . .':-.... : ::: .. . ,:. :. -: )osts that m!3Y be appropriate, in lerider's .sofa discretion, not limited to Insurance premiums, ad valorem
. .. . .... :-: ::; ::axes, and attorney's feas. Any sums which may be sopafd out by Lender. ar\d all sums paid for Insurance premiums, as
. :{ .. ,,..:.': -: :-::::...: .. :: fJ: ;: ;. rncludlog .the costs, expenSes and attofney'.s fee.s pa\<1 In any suit. affecting ,safd property shall boar Interest
:::. .' ::.. .? =: r.:,; :];: :,. ,'rom the dates of such payments at the prematurity contraGt.rate eppllod to the prlnqlpaf b.alanoe of tbl& Note end shalf be
(::. '{t . / .. >-'\{' ;: ,Jald by Borrower to Lender upori demand, at the same place at Which this Notels payable, and shall ba deemed a part Qf
.. _ ... ,.,.,._:Y:::.}:-:. .. ... :he debt 1=1nd recoverable as sych h' all aspects, . . . .
:::. :);-::: ... .;- ':- . . . . . . .
::' ,'._:i::. =,:: ;; 3orrowerresorvas the right tq prapaytprlorto maturlty,all or--anypttrtof tha principal o{thlsNotewlthoutp,enelty, .. and
shall Immediately oeasa on a.nY amount so be applied tO" the last maturing
: -;- .. ::.;:. nstallments of principal, wldlOU\ Interrupting the regular payments. . . ' .
: : \. If Permitted by ,Landor, by efiy. other Person .or :'pers'onsi corporation, or any'
.: '' .{ -, _.... ,)ther entity wlthout'the express written consent of Lande(, shall hot release thellablllty of narrower for the peyment.of
.:{. . . ,. ; .,. . .
/ :::" :. ; n the event that the hereinafter described collateral, If any, Is sold, conveyed, or otherwise disposed of Without the prior
:: } :: .. consent of the the matyritv of this may, at of tho Lender, accelerated and Lender may
:-:! ;:.:; .. :::
de!Jland of the then outstanding principal sum together oil _ap.crued .a.nd unpaid Interest due
.::<::-::> . ;: .;:; .. : . .. : :t: .. /fdJ.hereon. . . . . . . , . .
3orrowet ond Lender hereby imd In the evant of a Note or any
:.:: .. : , f:.:.: ... executed by In, connection wtth, or to seoure the payment of
1
thls Note (IJ lender shall not be
:.::.:c;-.;.:, .. :: .. .. J :: ..... + ) ... equlred to comply with Subsection 3.06fd) of ihe Textts Revised Act and (2) aha!! not bo tequfred t9
.. agal11st or' exhaust the assets of pursuing eny directly against one oi more of the
:: .:-;: ... :. of Borrower or the.IJfoperty .o.f such .
AGRE .. AS. . . . . . . '
.. :. ::.. .. ANY AND All CONTROVERSIES BETWEEN THE PARTIES, EXCEPT SUCH CLAIMS A'No CONTRPVERSIES WHICH ARE
: ; , .

.' '!t' .. RULES OF THI: AMERICAN ARBIT-RATION ASSOCIATION: IN EFFECT 'J..T 'I'HE.J'IME bF FlUNG, UNLESS THI;i. COMME!RCIAL
.-. ' '
1
.;. ;. (I.RBITRATION CONRICT WITH THIS AND IN SUCH EVa,IT THE TERMS OF THIS NtOVISION SHALl
. . .:: . t ' CONTROL TO THE EXTENT OF THE CONFLtQT. NOTWil'.HSTANDING ANYIHING CONTAINED HEfJ.EIN TO THE C.ON.TRARY,
:\\::.-:y:(.' r:=: : ; .... :::"!..,; SAVE AND EXCEPT SUBPARAGRAPHS (k), (m), (o), (!)); AND .Js) HEREIN, TI;IO$E CONSUMER RELATED CJ.AtM$ AND
.-:;.: .. ' : .. .. : ... :: .. ..:: : > CONTROVERSIES AN AMOUN'r OF LESS THAN IJ-!QUSAND OOI,.LAFIS ($10,000.0Q} SHALL
.... ... :; .... ,.-_ .. : . .,.. BE CONDt)CTED IN ACCORDANCI:. WITH THE AMERICAN ARBITRATION ASSOCIATION RULES FOR THE OF
, .. .. .. ... .. .. -:. :/r:,. DISPUTES OF LESS THAN TEN THOUSAND l;l0Ll.ARS, ANY ARBITRA1'10N HEREUNDER SHALL BE
- ., ' .. ,:..! BEFOREAT LEAS! THR(:E NEUJRAl A,RBITRATORS ASSOCIATEO WITH THE ARBITnATION ASSOQIATION AND
:
... .,.,:,..:'.: .. .,.' .. , .. .. .. : ... :; .::; .. ','. . ' . ; .. ' r.,dol_'3 ' ' II!C'tOO). OMJJ,m
' -. : ..
toi
d)
1
lei
"J
(t)
'i
(g)

Ill
Ill
SELECTED -IN AcCoftDANp!; 'J'.';H . T-!J.E: coMMI'iRCIAL f : ES OF THE . AMERI9'AN
(\SSOCIATION. TO OISCI.OSE AlL MIGtJT. TO AN OBJECTIVE
CREATE A REASONABlE lHB ARSITRATOR'S PARTIALITY, AND/OR i'JIATE.RIAI.. ERROR$ OF,I:.AW SHAlt
. BE GROUNDS (IN APDITIO/'J Tq ALl.OTHERSJ VAC)\TUR OF AN AlvARO RENDERED THIS .
AWATio.'oF. THe A oF rHeM .. sHALL AND .
RENDERED MA'i' ENT ED IN ANYCOUf\T, i!R ARBITRATION AWARD
SHAL[ BE IN WRITING. D.SPEG!FY THI:: FACTUAl AND lEGAl: BASES FOK .TtJE AWARD. U.PON THE REQUEST 'Of. ANY
. ' PART'l, THE 'sfiA.LL INCLUDE ANbiNGS OF FACT ANI> OF LAW. .
'ANY AND ALl B;,.w'EEN
':fvpE.OR MANNER.-INClOOING WllJlOUY..liMITATJON, ANY CLAIM.l\RISING OuT OF. TO THIS NOTE, ALL
p'AST, AND/b.R .FUTLIRE cR.EDIT. . AND/OR' . INVOLVING PARTIES, ANY
TRANSACTIONS BETWEEN OR INVOLVING THE PARTIOS; AND/OR ANY ASPECT Of' ANY PAST OR !'RESENT
OR AlLEGI;D
. THE PARTIES. ALLOW AND PMTit:iPATJi.w DISCOVERY IN ACCORDANCE WITH THE FEDERAL .RULE$ OF
PR6qDtlRE F.QR A PEnfoD ONE. TWEf"TY AFTER THE FiliNG OF THE ORIGINAL RESPONSIVE
P'cEAbiNG.. MAi AS .AGREED 8Y.'TfiE PJ)RTIES. OR AS ALLOWED BY 'THE
ARBITRATORS. UNRESOLVED OISGOYERY.,DISPU):ES SHALl BE BRQUG)\T TO ATTEI<TION'OF THE ARBITRATORS BY
WfHTiTEt:J MOTION F-OR RROPER OfSP0$1T.ION, .INC.LUDING RULING ON ANY ASSERTJ:D OI'JJECTlONS, PlUVIlEGES, AND
PROlECTIVE bRPER REQUES1;8 ATTORNEY'S FEES \0 THE pRoyJIILING.PARrY.
IN. EVENT 01<' E)<CE.EO .<s.oo.oop.oo, EXCLUSIVE OF
INTEREST AND ATTORNEY'S FEES, ORUPON THE:WRITTEN REQUeST OF ANY PARTY, 111 PRIOR'TO THE
OF A LIST OF POTENTiAl ARBITRI\TORS, THE IIMEh!CAN ARBITRATION ASSOCIATION SHALL CONDUCT AN IN PERSON
ADMINISTRATIV,E CQNfERENCE WITH.'f1:ii;; AND :rHEJR ATTORNEYS fOR THE AND FOR
SU1;1 A'DOITION,l\.L puRPOSES' AS. THg .PARTIES OR THE' AMERICAN, ARll!TRATION -ASSOCIATION MAY DEEM
APPROPRII\TE; !MJO AND OF.THE DISPUTE AND
'THE ANTICIPAtED LENG1H Of= (B] TO DISCUSS THJ! VIEW PARTIES ABOUT AN'{
TECHNICAL AND/OR OTHER SPECIAL 0:UAliF1CATIONS Qfl i,HE AND. {C} :ro WHETHER
MEDIATION O_R "OTtlEf\ OF PI.SPUTE PE. APPRPPRlA1Ji, AND.; (2) AS t:'ROMPTLY AS
. PRACTICABLE AFTER :T.I-\E SELECTION Of TH(\ ARBITRATORS; A PRELIMINARY .HEARING SHALL BE. HElD AMONG 'THE
PARtiES, Tk; ARaltRAT0Rs. WITH THE OF THE AFI.BITAA1tlRS AND THE PARTIES,
'rHE PREUMINARY MAY CONFERENCE'CAlL RATHER THAN IN PERSON. AT .THE
PREUMINARY HEARING'THE MP,.TrERS::rHAT MAY. CONSIDERED SHAlL (t',ICI.:UCE WITHOUI,."UMITAIION, A
PRoHEARING" ;OROER ADDRESSI(IIQ IAJ .EACH PARTY'S DUTY TO SUBMIT A D!iTAiLEO STATEMENT 'OF
Cl-AIMS, DAMAGES AN0/0R DEFENS!ffi.; A STA'FEMENT .OF THE. ISSUES ASSERTED BY EACH PARTY AND ANY lEGAL
THE PAfl.T)ES.MAY WISH 'fOBRING TO THE ATTENTION OF :nHi ARBITRATORS; {B) RESPONSES AND/OR
TO 'iHl:. filED. IN COMPlJANcli' WITH , SU13PART 2IA); (C} . STIPULAtiONS REGAI'lDING ANY
UNCONTESTEI) FACTS;' Ar;o PREMARI<ING OF illL bOCUMENTS WHIPH El\CH PARTY BEUEVI'S MAY BE
AT THE (E) fDENTif=ICATION'AND OF INClUril.[iG
SUCH' AJ?Oil:!qNAL MAT-TERS 1HEIR BIOGRAPHIES SHORT
SUMMARY. OF WEIR E*'PEC'f0 (fl A OTH\\R OFFICIAL RECORD Of THE
PROPEEDING$ !\IAINT(<INI'pl AND (G) THE POSSIBI'ITY OF UTILIZING MEDIATION OR ALTERNATIVE
PISP\JT" REsOLUTION. .. ' . .. , . .. . . .
oF rHis PRoVIsioN. rHii'J>ARTIEs MEANs tENom AND BORRowER. AND EAcH ANo ALL PERsoNs
AND EN'J'ITIS:S SIGNINGTHIS.AGRfii;MENT OR Ar.J.Y OTHER AGREEMENTS BETwEEN OR AMON:o ANY. OF THe PARTIES As
PART or THIS TRANtft..bl'IOJ". "THE-.PARTIE.$"' 1NCU..iDE INDIVIDUAl. PA'RTNERs; .OFFICERS,.
DIRECTORS, AGENTS ANP/OR REPRE$EN1ATIVES or ANY PARTY TO SUCH DOCUMENTS, AND SHALL
INClUDE Af!1'0THm!.bWNER AND ' . . ,
' PARTIES' THE .lUGHT HELP, (S,UCi-f .AS. 'SETQFF, 'NOTIFICATION O}:
ACCOUNT DEBTORS, SEIZURE J\Nri/OR FORECLOSURE Of AND N'ON.JUDICIAI.., SALE OF PERSONAL
PROlJERTY AND R!:Al PROPERTY COi.t...4TERAL) bEFORE, OURINil OR AFTER ANY ARBITRATION AND/OR REQUEST
ANCitLAtW.On PROVISlONAL JJi:MEb!;:S (SUGH As GARNISHMJ=NT; A'TTACHM.EN't, SPECIFIC PERFORMANCE,
RECEIVER, INJUNCTION'OR AND BEFOiiE OR AFTER ANY ARBITRATION, THE
PARTiE'< NEeD NOT AWAIT THE OUTCOME THE ARaiTRATION DEFOREUSING SElFffElP .REMEDIES: USE OF SELF
HELP<IR ANCILLARY .AN.D/M PROVISIONAl JUQICIAL REMEDIES SHALL NOT OP.ERATE J;S.A WAIVER OF EITHER PARTY'S
RIGHT TO COMPEL ARBlTRATiqN, ANY ANCILI.ARY OR PROVISIONAL WHICH.WOULO SE AVAilABLE FROM A
COURT AT LAW sHAll FROM THE ARBITRATORS. . . '
,' ' '' ': ' ': ' ' '' ' ' I '
. THE PARTIES AGREE THA.T ANY. f!CTION CONTROVERSY BETWEEN THE PARTIES SHAll EITHER BE
B.RdUGHi BY Afi.BITFtAtJON, .AS OESCRrBEO HERElN; OR. BY JLitJIPIAL P.ROCEEDJNGS, BUT SHALL. NOT BE PURSUED
SIMULTANEOUSLY IN 0)FFERENT OR Al.TERNATIVE FOJ\MS. A TIMELY' .WlUtfE:N NQl1CE OF INTENT TO ARBITRATE
PURSUANT TO l'J-IIS STAYS AND/O.R .(\BATES ANY AND. ALL AcTION: IN A 'l'RIAL COURT, SA VI; AND EXCEPi
A HEARING ON A (.IO.TION.TO.COMPEl ARBITRATION.ANDiOR.THE ENTR\' OF. AN ORI>Ert COMPELLING ARBITRATION AND
STAYING .AND{OR ABAJING THE LITJGP.,TIOiit PENDING. THE FiliNG 'OF THE FINAL AWARD' OF THE ARBITRAT.ORS, ALL
1\EASONAilLE NECESSARY FEE$ AND ALL TRAYEL.COSTS.SHAll BH AWARDED, TO THE PRoVAIUNG
PARTY ON ANY MOiiOf'l.iO ARBITRATIONA.ND MUSJ BE PAID TO SUGH PARTY WtTHIN {10) DAYS OF THE
SIGNING OF THE ORDER-COMPELLING ARBITRATION. . : . '
.. ' . . . . . . .
ANY AGGRIEveD PARTY sHALl. A WFunEN NOTICE op INtENT TO AR.arTAATE ro ANo ALL OPPOSING:
PARTIES WITHIN 360 I.>AYS Al'fERDISPUTE ARISEN. A DISPUTEIS PEANEP TO HAVE ONLY UPON RECEIPT
OF SEf\VlCE OF JUDICIAl SERVI9E OF .. CqUNTERCL.AIM, TO SERVE A WRITIEN NOTICE
OF TO \\'!THIN. TIME SfECIFIED.)IB()VE $HAll BEQEEMED .A .WAIVEij OF. THE AGGRIEVED
PARTY S RIGHT TOCOr,>IPEL OF ClA!M. \.HE ISSUE. OF WAIVER.PURSUANT TO THIS AGREEMENT IS
AN DISPUT"f.. .... ... . .. . . , . . ..
puntNa aao wHETHeR
08
DEFENDANTi 1S NOT A OF RIG_H.T Q9MP.EL f\RBITflATION .. ALL OJSCOVERY'OBTAINED IN THE PENDING
UTiiJATIONMAY BE lJSEO IN ANY'SUBSEb.U.E:NT ARBITRATION Pl\OC!:EDJNG . .. .,
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. (k_l Tij. PARTIES .FURTHER: AGREE Tf'' . ., ill NO PROCEDING HER(. 'OER SRALL' BE. CERTiFJ"D AS A ClASS
ACTION "OR ,AS A Ci.. ... ACTION, OR ON A bASIS INVQLVII'Ilv.
1
CLAIMS BROUGHr IN A "PURPORTED
nEPRJ:_SENTATjVE CAPACilY ON BEHAlF OF THE GENERAL PUBLIC, OTHER CUSTOMERS OR POTENTIAL CUSTOMERS OR
PERSONS SJMI'-ARLY SITUJ.I.TED AND (Ill Nci ARBITMTION PROCEEDING Hlm'eUNDER SHALt.' BE CoNSOLIDATE!O WITH, OR
JQINEO IN ANY WAY WITH, ANY OTHER ARbf(RATION PlfOC,EE,DING. . ., . . . .
. . ' ' .
ANY ARDtmATOR SHALt.. bE KNoWteOGI:AaLE rN THE 'SusJ'ecT MATTER OF THg otsPurE.- eAcH Or THE
PARTIES $HAU PAY AN EQUAL, SHARf! OF THE AFiarrRATJON COSTs, FEES, EXPENSES; AND OF THE ARBITRATORS'
FEES, COSTS AND ' .
ALL STATUTES OF LIMITATIONS WHICH WOULD OTHERWISE BE.APPUGABLE SHALL 'APPLY TO ANY AND ALL CLAIMS
ASSERTED IN A,NV' ARaiTRATION PROCEEDING' HEREUNDER, AND THE COMMENCEMJ;NT OF ANY ARBITRATION
PftOC.EEDING TOllS. SUCM STATUTES OF.LIMITA'J'IONS. .
. .
IN ANY ARBITRATION PROCEEDING susjEcr 19 THIS PROVISION, THI:'AnntTRATORs, OR MAJORITY oP THEM, ARg
SPECIFICALLY'Ef>IPOWEREO TO DECIDE (BY DOCUMENTS ONLY, OR WITH A HEARING, AT !HE ARBITRATORS' SOLE
DISCRETION) PRE-HEAFiiNG MOTIONS WHICH ARE, SIMILAR TO PREHEAAING TO DISMISS
AND FOR SUMMARY ADJUDIC(\TION. .. .
THIS ARBITRATION SHALL OR EXPIRATION OF THE AGREEMENT
IN WHICH THIS PROVISION IS CONTAINED, UNLESS.AI.l Of THE PARTIES f:XPRES$1.Y f\GREE IN WRil'ING,
. TME .PARTIE; THAT A TRANSACTii>N INVOLVING INTERSTATJ;
CQMMERCC, THE FEDERAL ARBITRATION ACT SHAl.l. GOVERN THE INTERPRETATION, ENFORCEMENT, AND
' PURSUANT TO lH_E CLAUSE OF TI-llS AGREEMENT.. ' . ,
. THE ARBITRATORS, OR A MAJORITY ,OF. -fHEI\1, SHALL AWARD ATTORNEY'S fEES AND COSTS TO THS: PREVAiliNG
PARTY PURSUANT TO THE TERMS OF THIS AGREEMENT,. '
. NEITHER THE PARTIES NOR THE Anan-ftAl'ORS MAY D!SCtOSE EXISTENCE, CONlSNT, OR RESULTS OF ANY
HEREUNDER WITHOU,T PijiOR WRITTEN CONSJ:NT OF ALl. PARTIES AND/OR COURT ORDER.
. ' . . ' ' . '
VENUE OF. ANY ARB.ITRATION PRoCEEDING HEREUNDER StiALL BE IN Bexar COUNTY, TEXAs.'
. . ' . . '
Address1 2001 Srnltb Street

Cif.y/State:
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ALLONGE! TO PROMISSORY NOT!':
This Allonge Is made a part of that certain promissory note In the original principal of
TWO MILLION AND N0/1 00 DOLLARS ($2,900,000.00) ('Note') dated on even date
herewith executed by STACI PRODUCE, LTD., A TEXAS LIMITED PARTNERSHIP
("Borrower', whether one or more) and' being <;1ue and payable to International Bank of
Commerce ('Lender").
The Note Is payable as follows:
(a) Tile principal of the Note, together with accrued and unpaid interest on the
unpaid principal balance of the Note, shall be due and payable (il In monthly
lnslallments, mltially in an amount equal to Twenty-Nine Thousand lwo Hundred
and No/1 oo Dollars ($29,200.00) each, the first such Installment to be due and
payable on April ....1:.__, 2005, and the remaining such Installments to be due and
payable on the (.1,J day of each succeeding calendar month thereafter prior to
March _1,___, 2010 (the "Maturity Date'). Payments shall be based on a seven
(7) year arnortizatiol) schedule and shall be subject to change to refle.ct changes
In the interest rate as set forth In the Note.
(b) On the Maturity Date the entire unpaid principal balance of this Note and all
accrued and unpaid Interest on the unpaid principal balance of this Note shall be
finally due and payable.
THIS LOAN IS PAYABLE IN FULL ON MARCH 1- , 2010. YOU MUST REPAY
THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN
DUE. THE BANK IS UNDER NO OBLIGATION TO REFINANCE THE LOAN. YOU
WOULP, THEREF.ORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER
ASSETS YOI,J MAY OWN, OR YOU WOULD HAVE TO FIND A LENDER, WHICH
MAY BE THE BANK YOU HAVE THIS LOAN WITH-AT MATURITY. YOU MAY HAVE
TO PAY SOME OR ALL THE CLOSING COSTS NORMALLY ASSOCIATED WITH A
NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME BANK.
Notwithstanding anything contained nareln tp the Contrary or In any other loan
document evidencing or securing the Loan, In the event of any nonmonetary default,
Lender shall deliver to Borrower written notice of such default and Borrower shall h!!ve
thirty (30) days alter receipt of said notice to cure such default before Lender may
proceed with acceleration and/or foreclosure or pursue any other remedies. If Borrower
timely cures such default, then no event of default shall be deemed to have occurred.
All notices required hereunder shall be delivered to Borrower by Certified Mail, Return
Receipt Requested, and shall be deemed delivered three (3) days after deposit with the
United States Mall by Lender, with proper postage affixed.
EXECUTED this ...2:::_ day of March, 2005,
BORROWER:
STACI PRODUCE, LTD., .
A TEXAS LIMITED PARTNERSHIP
BY:
OMPANY
l02326_1.DOC 1
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.. AND/ORMODIFicArtON AGiiEEM:ENr
COMMERCIAL IND)mnlD!ffiSS
, Date f
Borrower: Stad Pi'odil.ce.. LTD.
'l'ha-"late withoutneticx; a:nd shall be
imntj3tely due
tell Jt.ncbeduted due date and
In the.[otd Of application$.$ the, Leoder fn
may rrr tJnie.IQ t\mr!
'J'ho rJnure any of the
lh.ereon or att,rued 11110 when wrio
du:e Jnd r:'ya!lle shaJlperrn.lt4tJ.def, .at its: option; to eccoltratc:tbO
matb'rliy, na"uce !68onowa; of eft. an!{ portiO!\ df the
UOpa14 and afJ amued and unpaid
and all !lCcrued' arnf.uv:pald to llndec the 'Note I
thfs Agreement, wht!ri:upon. the nma. aJuill 'be due- and
illfnediately.
outstand"wg and unpaid' principal. ictuedai!d UiJP,ald.lnterest

au all rees. .laie chru;ge( antVot other cliaigcs tncurred in thts.
hy, <K' (or the btnefit of; any. Wbleh tem.'li!n
;i:lue and owing un !hi) Final Maturity due aruf:ttayable oo
t.ogetherwl.th'inyal'rd all accnted a.pd"_uopaldlnteteSt a.ndlor fsuCh
latec;barges..

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lJOrtdl.vtr-.renews and' (!Xthld$ the aJ1d tmy .an:q ell

pci"AJlm1irl begll:Jiting on.. Agrtt:mcdtr,_ -IOOUrlty ifiterest;, J?wliJ 1if. Trw;lJ and/01' o!hef Uent
treated by'BQ!t?Wer-'111 favor. of IQtcmatiq11al Bank ut''CoromerP'o
Exoept aa provld lierelll..ill CJ:IP;.ternts 'ltd t'lf die
NAtO, an,d.4)1 :Security Agreemnts, $eCuni}" lnler#tS, "ot
NYPFH Tru.slS; MI!IOr !lent by Deed!'df'TmSti' -and/oc othei-
. . 'IAan if any: as and til fult

BarroWet-. proplises to p:ly to ibe b'r9et of lntefuatiQQil of
Commerce tho Outstanillog Balance 00 th!J Note
acc<:Q-ding'fu the teril.ls hertht' .togttlfer with iriterest ils It accruJ 011.
!he batanea Untif _paid: 1D na C.Vent
shall i:.htJt:ate to bG pald on.thcUhphld prlnclpst :
btJineebe less tllan fout and tbree
pet itnmhn, nOMnlXo ct}ah. Uu:i mailmwn lega.l111tc a11oWea Oy.'.
apptle,.blo law.
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Tl!l\ BXJ!n' AU.OWED BY LAW; AI,L" MA'f(lRBll-
ON.I'ND ,\MOUNTS WILL DBAR INTEREST A'< Tlli!
UlGAL !N'rERESt RATB ALLOviJID BY
lfllm:?IIcaf>lo
rM6 loteru:t fi.XmWJtcll.tnfpllid limO}Ults,
t:ili&rna.xllp.vm race for such sbalJ ):Jo"eJgbteen

Borrower
A"ntoolo 181.01
EXHIBIT
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SECl,JRIT.Y
AGR.EEMENT
Tha tJndetE!gnad Oabtor, Owrwr of Co)lateral, whetlw one or more, and :rpternati onal Bank of CCmmerQe
130 R "Travis. Slin Antonio Texas. 78iOS ' . . '
{llere!naft!'lf called "Se<:Vt6d Party"! enter Into this Secllrfw.Ag:teef"t'l(lnt and fOr good and valuabhl e-nslderatlon. the receipt of which Is hereby
ecknowledged, and agree as follows:
SECTION 1: Croiatlon of Sawrlty Interest, , , . .
Debtor hereby grantv to Sliourad Party a first end eXclusion rftln and In all of the pefiional propertY. of Debtor, wherever located,
el"ld now owned or lne!udlng. the propehy described In S8otlon ll"ol this tv ft:groe.mant {thS "Coltateral"l to secure
payment liM llOrfOrmance Of the Indebtedness (deSC(ibed In Sectlo!1 I!J belt]W), , .
SEtTION lh Oeswlptlon of
1. The security tntiuest is gr3nted In the tollateral: , ,
o. Oes\'ltlbe the collater!ll and, as applicable, eheol<: boxu and provide lnform!!tlon lndlo11ted below,
That describeQ on I atJ:,S.ched hereto. and inade
hereof fov all pUrpos'es.
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b, 0 The obove goods are to be Corne flxtut.eS _on:'ld&scrlbe raal sheet, lf
'3
D
nw above minerals Pf tho like Onclud!ng o!l aM o8sJ or accounts wiD be financed at tha head or mine haad of the well
or mlne located on: ldescrtbe real estate: a\tat;h add1tlon.al.sheet, If naadedl
. .
If b. I, b.2, ot b.3 ebova b checkS<!; this aecurltv agreaine?.t Is to be flied for 'record In the ruT estate records. (1M da.scrlptkln of the
estate. mu.st"be ufflclent!y specific as to gil/It notice of a mOrtgage on the. realty).
O Debtor does ndt haya an Interest of iecord: the name of a record of the real estate Is
0 All suMt!wtas and replacements for, atiechments; and other addltlol\s to, ar.d'too'rs, parts, and equipment used 1n
connactlon with, 100 above property; 81"\d tn:reue a.nd the unborn yoimg Of anlmats end poultry, .
E All prOperty slfrdlar to the above hereafter acquired by DebtOr.
F All proceeds, and of tM Collateral ere 11\cluded. COve)';)ge of JNoducta and proceeO$ for flllancll'l_g state:mant
purposes 13 not construed a9 giving Oabtor.any add!tlon"al rlght8 with l'llSpect the Conaterel, and Oflbtor ls riot authorll{ld to
sell, lease, or otharwls& traMfer, furntsh under contracts of sarvlce, manufaature, or assemble the Col!et9rel, except tn
eceordll!lCIJ with the provisions of thls Securlty Agreement, Any eddftlanal sheets descrfbll'lg the Collateral, the reat estate, or other
matters ere Incorporated In and made a part of thJslnstrument.
2. Ch:csslfy the collateral under one Or the follo.,.rlng Texas 6-llsff'less And
.[ij
Consumer Goods
EquiPJ:nant lbuslnass use;)
Equlpme;nt !farm usei
lovestmallt Property,
lnstruments
Acbounu
[j Farm Produts
fZJ lntanglbkl.:l
Inventory
tJ Rtghts
tlens on
m
D
Deposit Accounts
Commercial Tori Claims
A9rloultursl Uona :
E3
Support Obligations
0: s.alas Ot Payment a!ld Promissory Notes'
the a>:tent not list?d as ell p;Oceeds endproduct'
. '
IBdooo4 OQ/2')/01
Page of 9
10
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Any t
1
ecmh"''',ln ,the :exa_s (the aM not deOI\tld In this SOcurJty has lhe.m
11
enlng glvorl to the
termnteCoej . ..
3. Q If th.l
1
bloc)( ts c 6cked, ts 11 purc.hasa 'security Interest, :od wtn use to Pllfchas; the Collateral, or
Secwr,o Party_ rn Y disburse funds tlrreot to the se!ler of tile Collateral, Bnd to pu[chase lnsll!'a'nce on the Collateral To the extent
uses the loan to purchase COllateral, Debtor's repaymel'\\ of tha Loan shen apply on e trrstlnlfrst-out' so that the
"'"$of the l n used. to wrchlise e particular item cf Co!/!,lt&t"el shsiT be paid In _the chrono}oglceJ order the Debtor pWchased tho
Colla rei.
If en of the Coil tara! is accounts, give location of the oiflce where thll rec:ords concerning them ere kept !It other than Debtor's
. . .
To a rubcatego!Y of Genernl1ntang!b!es, means the Debtor's for---'"'-------,----
4.
6.
agafnst ,
SECTION Ill:
Th!s assl9nme t and gran Is made to Secured PartY to secure the prompt and unconditional payment of, and the first and exclusive secorlty
Interest grllnhl flt;reby to secure5 the and of, the following the "lndebtednessJ:
Any and all DaiAiitles andJoc obljgatlons .of or sny ot the undfl!rs;gned If thm one, to Party, Jointly snd!or
severally, end any'tlapa ltY, whether as houower, guarantor, or otherwls:o, now or owing, cruted 8r'ld/ur arlslng, and legerdloss Ot
how or prblrtg, outstll{ldlng and .unPaid Ptinclpa.l, accrued and unpaid interest, 8Uoroeys'.tees, collection costs, and ali other
owing ,bY ..:'D ... Of. :_arry- of_ the If .,than !ncludlf!. not' nmlted to
MnrA or ve Nate or,a1na1 amount of
S7.000, M T\ohi _and'.nav_atile to the order. of Secured Part:y
and furt.tier wlut lhnha fM' to:
A. any a all edness of:
.ACI P.KI-. DUCBt LTD.
B.
{If not solely of Debtor! or any of iliem If mwe than to Asstgnee, }Qintty and/or severolly, and In MY capacl;y,.'
whJer as burr rar, QU.l!rantot, or now or hereafter OWI01J, Cfeated aM/or arising, end regardless of hoW" eviden-ced or
l!tlsl , wlt001Jllimltetlon: , ,
tha Rea Estate L1en Note of even data herewith 1n the or1g1nal
arooUnt6f 400,000.00 exeCuted b Staci pr rties
1
Ltd. and paya e to e.or er
of secured artv
any c mmetciel en or
C. any c etl!t 011rd o other consumer IYPtl of loam
D, any I reledng to chaokln9 or savings accounts loverdrafls,.fees, etc.]; .
E.
F.
any e penses In [urro(! In the protection or malntenan.=a of tho collateral sccwfng any of such loan.s, and obligations;
any e pBn:lil.l' ln wred In lJw of any and/or obligation;
G. any. ltera of cr dit Md/oi- arising out of, or to pay, letters of credit trarnactfons; .
H. sny llpdebtedne , howevor, oyldencedowOOther by promissory nQto, bookk,eep!ng entry., electronfo transfer, che"cks, drafts or other
f.
Items} or by afl othllf m8nner or form: .
MY qther lndsb Pne$$ of Debtor and/or of the per11orn or enlit,les set forth In subparagraph A. JiboY(! to any fiMookll )11$tiWtlon
with In Barwshetes Corporation, Jointly tmdJor severally, and In any capacity, whether as bofiowar, guarentor, or
now r hereafter owing, cr.oated arid/or _arising, 11nd rog8rdlt<S3 of hOW IIVidenced Of ads\ng;
J. any all exte mtklif!Cutlons, substitutions end/or renewals of any of the sbove desCtQ..ed lndebtcdnaos;
K. :;u:t:!
L.
M.
N.
exper,ee Of aa1e .
th& eale by r tM purchase by Secured Party of Accounts;
1M s le by Oebt rand purChaSe by Secured Party of Payment lntanglbies; ,
tho 'l'a by Debt and the purchase by Secured Party of Chettel Paper;
0, the eflo by Debt rand the purchasec by Sec\Ked Party of and
P.
11
oy qt the foreg rn9 that arlsos the'flllnq of a petition In bankruptcy by or agalnst.Dehtor under \he Code, even If
tho obligations 1"101 accl\la bGcause of th& automatic stay under Bankruptcy Code 36.2 or othorwhto.
by aw, purposes henlof it Is lnt$1"1dod Indebtedness Include ell classes of lodebtednes!i, whether evldel)(:(ld
by ope eccoUflts overdrafts, or otMrwlso, 'and whothot pb'ect, lod""neot or contingent, regardles.s of class, fOrm or purpose and
Including but t limited t , loans for consumer, sgrlouftlHal, business or parsonel putposes.
1be foregolngfell ulldor no clt<:umstuooes be l!m.lted to -the e.dstence or non:ell.;stence of CQ!lateral tot lndebt.;do;sa: or the type of
collateral CQVB ed thereby Tho does not lnc!u.de. emoullts pursuant to a homostoad equitY lo8n.
Not! oth r c-ommunications petta!nlng to this tJhOII bo ln writing and .shall bG effecttve only If detlvered If\ person
or mei!ed 11, receipt roqvest':_d.! postage _p1epsld, to secured Party If $MI ' __ _ __
TT t tibna:t ,-r {', rce 1::10 E. Travis san 1\ntoni: rexlis "7H2u5
Attention; T a and sen\ via United States Mall to Dabtor, du{y swnped ar.d' addf\1UOd to Debtor
either at the sddres!s, the shown herelilabove, or at the mult!f19 address, If any, given by and/or for Oebtor at the bog!nnlng of this
agreement {or t $UCh ot1r eQdreu as. may have be on de.sig:natsd most recently In writing" by Debtor to SeC1Jred Paftyl: provkfed, however,
actual nodes 1 Debtor, wever given or received, shall alway$ be when or received .. Except'as otherwise required by law,
any notice glv!o or made pursuant hvreto shall be deemed"ilffectlve!y.glven on the date of deUvary or, If mllll,vd, on the d&te such
notice Is In the ,S, II received b:y SecurOO Party,
1. filing 01 F anclng St temant.
SECllON IVt tRFECTIO OF SECURITY INTERESTS.
ill Debtor reby Secured Pa.r(y to tile a FIM"ncm.;; an Amonded flnllllk,g Statement and a Fljlane!ng
{collect! ely r11ferred to as the "F"Nlanclw Statement") descn'bing the Co!laterel.
!iij Oebtor"hereby aut Se0011X1 Party to flkt a FiMnPI"9 Staterilent de&erlblng any dens or other'statutory Jlens held by
. . . . ..
. tHIJ Party shill receive prior to the Closlng an official repon. from the Secretary of Stele of t;ach CQ!Ij:ltera{ State, the
ExocU11 e Office ate, end the Debtor State {each u defined below) flho "SOS .ReJ>Ilrhi") indicating that Secur&d Part('s.ncurlty
Interest Is priurto]tt Other securitY Interests or other interests reflected ln th-e. report. . ,
\IV) Securierty s}1al tlleelvc at llrlY lime. following th1.1 Cklslng an SOS Report that SecUlad Party's se-;:wlty lnt&cre.st Is. prior to
a)! othe setxlty h f;ltests or ot.twrlnletests reflectod Jn ti")f;l report. . . . .
2. Possess-!. : . .
. . .
Ill Debtors U have sseulon of lho Co!laterel, e"Kcept where eXpressly otherwise provlded In this: SecuritY or whete Secwed
PortY .'" to "' f"t fto """'" lntotoot by.p'""'"'" only, '' In od .. tfon to th< ruJng of o """'''"" Stotomont, .

Pa9e 2 of 9
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SECTlON vi Pebior$ Rmf>SIIntntJnn Wsrrantltu; i!nd Aorat!MAnh
. .
A. and W.anantle&
Debtor represents, warrants and agrees that: .
!H has MJ power and authority to enter Into lhhr Security Agreeme,nt; thls SecUrity Agreemanl ha
5
duty
executed delivered by Debtor thll Vlllld al\d blnd!rlg obfl{lation of Debtor enforonable In tiCi::otdence with Its
tflrmt, No consent of thltd partles, a Jtcal'l$e, etJthorlzatiM or h1fng wlt.h Biw governriu1nial authority Is reqUired to bo obtl!fned or
performed Jn with the executfon, def!V(lry, and perfOtmance of this A_greemant .
131
141
151
.(6)
,.,
191
(10}
(111

Information suPPlied e!'ld byDebtor In anyf!nanclal, Credit or sCCpuntlng statement or applk:a.tlon for credit
prior to, contompora!\(!OI.lSIY whh o.r-aubseqlHlnt to til$ exooutlon of thb Secttrlty 1\grumol'lt aro B!ld shall be true, t:orrect,
valid, ,end genc,doa. .
Deb lor owrn, o; wm use thO proCeeds of any loans by Secured Party to t>e!l"Ofne the of the Collateral free from any setoff,
c!abn,,restrlctroh. Utln, reevrlty or encumb(ance except this. tlli:u.!IIY lote!nt arid liens for ttiXCS yet dua.
No FinanCing Statement cov.erlng the Co!faterat or Its proceeds. It on fils: In aiw public 'office and "oebtot' will not any
Fln&ot:lng Statement covering sny of Debtor'& or the proceeds thereof'to hereafter be on fife lit any public office except as
may be llle;d pursuant to tills seourtty Agteemont,
- .
OebtO-I;&.han provkle to Party; upon S,curad Periy's re{!uest, {!} flnanclallnformatlon, Including Dmited to a balance
she&t; lneome statement, statement of cash flow, sod such othef financlallnfotmatfon a$. may be requested by Secured PartY; (H)
en appro]eal of the Co!l.aterel; fdl} tax (lvl evldenc-e of lnsuraneG, Gl'ld M .Goy other lnlormatlon requli-ad by Seoured Party In
!Xlmitlot!on with the Indebtedness of the COllateral. :.,, .
Debtor wllf not U<>e Co!lateti!l or pvrmit the CoUateral to be, used" In vlollitfon of any sta.tute, br othe,r Jaw or
lnconsJste{"ltiV with thi terms of "trny of fn&utenee thcroon; and 0!!-btor wrn permh: Secured PartY al"ld its
repreMotatlves, and.emp!o'yeas to a'xainlrle the Colfilt11fal at all times, and fo; such purpose,.Saoured Party may entOJr
upon or Into any prein!ses where the"Cohateral rrlay ba loceied wltOOut.belng gulltV'of," end/Or l\11kf for.yeepass. Dtlbtor y.'iU
fumlsh to Party l1J)On tllq\JG.S: all partllwnt if1formatlon regardlnQ the
Thq. CoUateral ihan remeln In Debtor'& possetSion or oontroi' et eiJ tlmel! l!.t Debtor's risk of !OJ liS unless Secured Party 'hau t11kon
possession of .the. Colleterel,and ba kept at Debtor's eddret set forth ebovo whero Secured Party me.y lrupe.ct It tt
except for Its temporary reft)OVIIIIn <:onnectkln with Its ordlnary'use or unless Debt& notJne.s Secured Party 10 writing and Secured
P11rty com;enls. ln wrltlng In of Its to ar.othet '
Debtor shall pay prlor to dellnquancy all taxes, charge!, IH!ns ahd the. CoHatersl, and upon Dabtor's fal/ure to
do so, Secur11d Party 111 Its optlon, may pay any of tMm. and $hall be IM oole Jutkle. of tha legality or valldfty thereof end tM
amount to dlschuf1}9 the seme. Such shall become part Of tha lndebtOOmss secured by this &!turlty Agreemaflt
aild shall be pald to Secured Party by Dabtor Immediately erod withOut deniand, thereon at the maximum Tille allowed
by applicable law
H11zu"rd lnsvnmce must be futnlshed at an times for the full amount'of the Indebtedness w!lh respect to an Collateral {lnludlnQ
coverag& for 311 m'terlals and equlpmt:nl) risks of Fke, Windstorm, Hurricane (lf the Is written 100 r'n!Jes of the
Gulf Hall and Collapse Jlncludlr.g cost (!f dGbr\!removaiJ !l.rJd such ottwr rlsi<S er SecUfed Party maY reQuJra, InCluding
standard extended cov&tage. Swh Insurance pol!clea thaU contalri such- terms, be 11'1- &. form, for a period end be writt11n b'(
c-ompanies setlsfaotory to Secured Psrty. Feda(af.flood Insurance Is also raqu!red lo those geograPhfc that er8 aub)ect t6 such
lost. 'rhCI shalf else contain a standard moitgagee'a endor&emant providing for payment of any loss to Se<:ured Party, AU
poll Of Insurance shall provkle fcil ten days wrhten minimum cencellatlon nbticG to Secured P?rty,
Evidence of cowrage must be a copy of the pQQoyand loss peyab!C ctausa. Certlflcatl!s or lllttars of covaragl:l.wl!l not be
socepted.
Secwad party authorized to act e.a attGlfltiV-ln-fll<lt fof Debtor Jn obtalo!Og, adJusting, aM canceling such lnswenee ami
endorsing any drefls drawn by lnsurilrli of the Collateral. SectJred Party may $pply l!lny ai"ld/or all proceeds of .s;;uch lnsuunCG: which
may be received by It In l]aymeht of tha IndebtedneSs secured thereby, whether sunh lndebtednus b cummtly due 6t 1"101. Secutad
Party resarv&$ thll rlglit to pvrch11,se lnterestlnstrrence' fwhlCh pt"ovfdes only protection fO( Secured Party} end aifd the
premium for Sllh lnsutence togethet wllh Interest at the Wan premetu.rtty contract rate to the balance of the loan. This premlurn Ia
d!JO lipon demand, or may be P.ald In lu!l at anY agreed time, The slnglo Interest premlum by a authori<:ed to
trans11ct btn!ness In the Sta!e of Texas rates not fiXed or approved by the Board of INurenoe.
Secured In Its w!a and wlthl.XIt obllgatkm on SectKed Party to. do ao, tnay advancO and. pa'{ sums on behalf and for
the benof!t of Debtor for <sis ne.cessary for the proteetlo!l 1md cf tM collateral and othtlr costs that may Qe
appropriate, In SecUred Parw's wle dJSeretlon:. ln<:!udlng bvt not lfmltad to lnstksnle pramlvms, ad valorem taxos, 11nd attorney's
fees legal costs and expenses. Any sum's which inay be ao paid by Secured Party end all sum.t pn!d for Insurance pJemlum$, as
, aforesaid, lnclu<nng tho cost6,.expensss, 11mf attom.ey's feet; paid In eny suft afjactlng said Collateral sheU.beer lnter11st from tho-
datos df such payments 'at the loan c.Qntrect flllerllSt r11te applied to tM unmatured prlnc!pel ba!anco and sh11ll ba pald by Debtor to
Sactlred Party upon demantf, al\d "shall be 11 part of tl)e debt, end reoovereble as S\Klh In all llspaots, Any sum tO be
reimbursed be secured by this Se.ciurltY Agra'V!'ent. ,
Debtor shall, et Its own do, make, end deliver all tlVngs, writings and es5urances &s Secured Psrty
inay at any tiMe request to ptOtect, assure or lt11 rfghia end remedies created by, PfO\Il#&d tn or from
this Security
Debtor shan lend, rent. or dispose of the Co!!aier11l or any Interest ttiarell"l except as authorized In this Security
Agfeilment or In wtltl"r.g by SeciJfed.Party, Dabtor shall l<lleP tile Collateral, Including the pfoceeds thereof, free frorn unpaid
charges, lndudlng aod from \lefl:S, and seeuilw InterestS Otl\Gr i:hecn that of Socmed ferw.
. .
.shall slgn.and execute alone Secured Party any Ananclilg Stateinent or olher dOcument Ot procure 11ny' document,
end Pev aU conneclac;t costs
1
necessary to prCIIeot the security ll)terest urnlil{"thls Security Agreement" againSt the Jlghts or interests
of tllltd f:lGJ$01\$, Oebtot shaH pay tha CQsts of lien searches and certliiCIItSS and all filing .fees, continuation 1111'6, end fees fof
oartlfloatas ot goo<{ standlngo e.nd other lnformatlori roqv!red bY Sccvr&dPerty. ' '
liiCQ004
Page 3, of '
06/22/0l.
10
.j
.
(13)
{141
116)
(16)
{17)
(16)
1191
(20}
.121}
,122)
(23)
{241'
(25}
,.
; se 0110 8 0) S6CU<C tebte WSS, Ci s/:ocld Se&tHCd Pllr.treet t Itself fusee c' as te JlB) . eat ol the J; &d:teJ' ees,
t Sfca et e d Par\r. Ma, ee.fl h BEIB!UeJ'Ial pre peR, te l? ple ilge d B ;!fie e ere a: br !his l !l eemeri s tlsfeete i ta Sccu:pd Pwl
1
1
If any Collateral or fWoceitds lrrclude obflg!itlons of thlrd to ttw transantlon,' creating. tho-is obliaatkms will conform In
all respects to appliCable stste and fcderel consumer crelflt laws. '
In tho event Debtor O{ eny. other }>creon' or persons Stlek.s to enJoin SectKed Party hom taking any action In. COOMctlon with the
lndet.Jtedmln or the enforcemeht of SeetHed Party's rlght$ In tOO Collatl;!l'el, Debtor 1\ereby agrees to gtve written to the
President of. Secured PtiftY, at tOO address of Sect.p'ed Party set fofth Jn lhe first paragraph of this Sacvffty Agreement, o'r
per.son or address as Secured Party may in writing to Debtor, prior to S!!eklng ony such InJunctive reflef,
Oabtor 6chaU lrrd&m_nlfy and hold harm!a::-, Securec! f'any from and against any end all claim&, lo&see end llabHitlee growing out 'of or
resulting from thls Security Agreement \lnc!udJ..ig, without UmltatJon, enforcement of this Security Agri:teniant), except claims,
losses or llab!Utles ra)!ultlf!9 from the gro!s,Mgllgerice or y1i!lfuf misconduct of SecUied Part)o, 'Debtor fii.Jrees, upon demmd, tO pay
.to Sooured Party 'tt\e amolll'tt of any and all e>:penself, Including, but not Mtnhod to, the fees end of Its couhsaf efw of
entexpurllil &gents, which Secwad ferty may Incur In with fa) the execution, donverY, filing, rooqrdlng
or administration of Ul11J Stlcyrlty Agreement or the obtelnlng ol<edvlce (rom.counS;el with respect to rights and temedles IJnder
this Securtty Agreem&nt, (b) theouswdy, preservation, Use or onemtlon of, or th& siJe ot, co!kfotlon from, or other realiza'tlon upon,
Qny of the Col_laterttl, I c) the. exerolse or enlofcemeni. of any of rights of Seowed- Party hereunder, ]d) the defense by Sebut&d
Party of any Injunction proceeding related to the lndebte'dnen or the or le) the f11ilute by D$btot to perform ot observe
Soy of thG .Pfovis!OM hereof. Debtor eg"re.as to pay Interest an ariy a);pens6' or other SUI'l'l$ dUo to Seo\JI"ed Party hereunder !save and
except ln$urao_ce} that not pald wn due at a Per anourp equal to highest ret.e permitted t;Jy applicable law.
A& addltlohlil "for the 'ciabtor aulgos, pledges end grerns io' Secured. Party a &tiout!T.v lnl{ltest, 'lien
and right of Utolf In tmd t<t all (If -the debtor's rrn:may, credits, 5ecvritie&, and/or othor property
nowln, or at any \!me eorntng, within, tho: custody ot control of Secured PAtty or a'ny membet Dank or branch Benk of
lnternstll'nal Bi'lncsh.eres COrporation. whether held-It} e general or speolalacoount (If deposit. 01 forsaf!lkeep\ng or oth8Nilse.
such securlty Interest and right of setQfl may lxl exercised without demand.Q.r notice to Dsbtor .No security Interest or right ttf set
off be deerMd to hava been waived by eoy ec) or conduct em part of socwed PartY, or any tonure 1o exercise such flQht of
setolf or to enloree $Vh tnterest, or.bY any delay lo so Evary right of and security shall cont!rlU$ In
full force and ellaot untJ!&IICh right of sato{lff or security Interest Is. speclfkelly waived 01 released Dy an Instrument In wrltlng
by:Seccred Party. The foregoing Is In addition to end npt ln'Reu uf any rights otlfetoft allowed by law,
Debtor Secwed Party In Complying with the Federai'Asslg!'lm<lnt 'at Cfslms Aot'/and.any sUccessor atetutes} end slrnllaf
laws to Patty to OOcome en under sUft Act twJ otherwise: comply with such lliWJ>. Dnbtor Shan pre'servQ
the liapinty of all aCcoynt debtors, obligors, and sa,condary parties whose obng&tlons ere part of tOO Collateral. Debtor. shall {K)tlfy
ihe SeC\Jred Party of any chango ocouiring In or to the CoUatetal, or tn Bny'faot or olrcumstanoes wananted or by
Debtor In uifs egre&rMnt or furnished 10 Secured Pany, or If tillY Event of be fault occurs,
Debtor wDI root sllow the CoUatElrai to be to real estate, except goods Identified herefn as fixtures.
Allaxi&nded'or fDM't/ed wHi W coriskhued exacvted on ihe ,date of the notll]$}.
l
Debtor Sha!l.comp!Y wlili an and regulatloO$ to eoitaterel and th_e premises In which' the Collateral
Js located and 5hall notlfy Party upon receipt of any notice or otMr lnformetkm as to any envilonmantal haza!ds or vloletlon
of'l;uch Jsws. SeCured. Par;ty mey.,lnspe<rt ell premises In which the Co/laWai Is located and the Collateral as 10 Its and their
oompUence wl!h lndemnllles and holdlf ha!mless &!cuted Party bruch of tht! fol"tlgolng end for all
toSses, fines, damages, lneludlng court exists and feell, lncut"red by SecUtiW.PMtv to or t,o protect or
Pfeservethe' Coftate;e( against enylronmental risks, fioo;;, end other cl6lms 'ralet/ng to the Collateral..
without Pllr\y with afloart thirty {30} thlYll pr191' wr;en notice .ct Debtor's Intention 10 dO so, Debtor, un.tllthe
Is lo fulL eQrees th.at.lt wUI not! . . .
11
, lrr .tronsac.ilon a ser}es 01' related, t[llll5PCtlons, merge Into or any oth,er. entity, sell,ell or all
ot Its essetl3
1
or In anY way )eopardlze Its corporate existence,
b, chan9e the: atptO of Its {ncorporl!tkm, .
c. chut gaits e,o p te IAI.:oa,
d. cheng!l'the addreSs and/or location uf lts.Chlef Executive 9ffiC(IJ
e, file a UCC1 Amendment form, end/or
f, file a UCC1 Termination form.
Deb!or the fisk of loss of the CoUeterel.
secur;d has no.duty conoct ony lncorna accruing on tho. f;(IOate;al or to llnyfights relatl119 to the collateral.
s: Spoclai Re:p;ueniotlons and Warranties.
Oeb!or warrants and agrees that:
{1}
{2)
131
It !he Inventory:
JD/ CX!btor w!IJ lmmadlatell( notify Peny of the of any loventory 11nd at Debtor's -expense wlli either. assign to
Secvred Party a lirstprlo;lty secutlty.lnturest In any resuttlng account, chattel paper, or lmwment or dollvec to Pany
cash In the amount of the sale prlce. Debtor will not sell, leoSO:, or Otherwise dispose of any Collateral axcePt 1n the ordlnery
course of bu.Stmss without the prior written consent of S11cured Party . . ' . , .
. {b) \Jnllt Oe!eult Debtor may In the ordinary cOO rae- of business, &!I'll, lease or furnish. under oonlfoct of any 91 the Inventory
normaUy Mid by Debtor for such purpose, provided, howbvor;that .suoh Vl!e of ttw loventOJY shall not be Inconsistent wl!h any
othar provisions of this Secttrlty AgroGment 01 with the {arms or condltlo-M of lillY pollol1ls' of Insurance. thereon. A aide in the
course of business does not e.uansler ln partl11! or total of 8 debt. '
If tha Collateral foo11Kles accounts;
{u/ Each eccour'it In wiK represent the val!d, legally onfcirceable obligatlofl of third parties end will not be evidenced by
11nY or chattul .
{b) The olfice Debtor keeps Its records concerning accounts, lf:a.ny, Is the ad9resa of Osbtor sat forth at th!l beginning of
thls Security ,Agreement.
If the Co!lat(lrel Includes lilstrumanoo, chana! paper or documents! .
lei By dellverio9 11 copy of thi$ Secyrity Agreement to the broker, 6eller, or other peuon In of Colloterol th11t chllttel
paper or document, Security Party will effectively ootlfy tiM I person of Secured Interest In the Collateral. D11Hvery of ilia
copy ol lhe Sewritv Agreement will also constitute Debtor's lnstruotk:on to dallver to. Secured Party cenifloetes .Of other
evld!ince of thtl Collaterel 'as. soon es It Is ;avenable. wnr!mmedlstely deliver to Sec1,1reQ P-arty all chattel paper end
docuinerns tllat ere Collatere/.ln D6btgr's posses,kJn, If that Collateral is hereafter 11cqu!red, wl!l deliver It to Seemed
Party lrnmodiately followrng ecqulsltlon ar.d ehh&r endorse It to secured Party"s order or, give Secured Party ep:propcta'te
.executed p!;iW1lta.lf {lny kls"tn.rmonts, ohstte/ or monleli, .Qr doeumMIS ere, at any t!ma or tlmoa, lhcll.ldod In tho
hgo4of9
.IBC0004
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whether prOt Dabtoc wl!J prOmptly dalivot tha ' .t1 to Party upon the tocelpt thereuf
by arn:r In any_ pr?mptiy. upon demand therefore by Secured Pert'/. If n.e_cassacy, all Coll11tersl will either be
erufocud to Party' a order or qccompanled by appropri11te executed powers. .
fh) Bv means satisfactory to secured Party, Debtor has perfected or will perfect a security Interest In goods covered by chattel
If any, Jn G0atera:J. .. .
If the oover b). e'Certlflcate Qf Tlt!e: If any' certificate of title ot.stmnar docu:nent ls;, tit any time tmd
to the law& f any jvrisdlotlon., or outstanding with respeCt to the Collateral or III)Y part thereof, Dabtor wm promptly
advise: Secured Party thereof, OebJor Wi1ll11Dmptfy us use the Interest of .Party'to be properly noted thereon, 'and If afly
certlfloate of title.or slm1!11r document Is so Issued. or outstal)dlng .at the tlmll thls SeCIJtity Agreement Is executed by or on beha!f.Of
then DebtOf sha.n have the Interest of &lcUted Party so to have been prope:t1y twted at 01 before tlw time of sU!lh
execution; and Detitor wl!J further promptly deUver to Seci.Hod P&r;ty llny a:uch C-ertificate of thJ.e orstmnor document Issued or
outstanding at any tlma with. respect to such Co!tater11l. . :
(5i If the Col!eteralls or may btCOI'J"le rllltUros en rnl propew;, described herein: This "security Agreement. upon betn9 flied for record Jh
reel property record$ of f!to eovnty wherein such fixtures ere situated, shaft operate aJso as a financing stetement'fi!ed as
8
fil!tura
filing In whh Section 9,402/e) of the Toxas Boslnus Commerce Code upon such of the Collateral which Is cr may
_become fixtures.
(6) :Debtor hes tights in or the power to transfer the Co!l2ter<il and Its title to 'the Collata.r.a! ta' of an claims, liens, seourltv.
Interests and on transfer or pledge except es oreated by this Se.curlty Agree.ment,
r7l All eoltetera/ conslst!rtg of goods Is located soJily In \he shtes and/or pr6vlo"wty delii.QnataQ" and warranted "by Debtor to
Pstty, '
18} Deblor'e:
!0 chief axocuf!ve office Is located In the state ptevklusly designated an-d wlimmted by Debtor to Secured Party;
lliJ ,state of lneorporatfon is the previOusly designated end wammtid by Debtor to SeeuieQ P11rty; and
Jml exact legal name l.s a.s a.et fcrtl11n the nrsl para-graph of this Security Agreement ,
SECTtbN Vi: EVEtlTS OF DEFAULT.' .
DebtOr shan be .In dJlfuult vnder thts Security Agreement upoq'the happening of any of tho fo&wlng avent& or C()nd!tlof\S !herein called en
of . ,
Ill
(21 i

1,4)
!r5J
'"
171
{8)
{9)
{tO)
T1"IEI fei!Ufe by Debtor or any other nabla party when due any of -tOG either principal or lflterest, or any otller .sum due
under ,terms Of any the Indebtedness, , .
Default by Debtor In the pui"\Otual of any of tho ob!lgatlolls, covenants, terme o; provisloN."eontalned or. referred to 1rt thle
SecUrity Agreen\e.nt, .
Any or statSil)ent contained in this 'Stlcurlty Asreenient or made or to Secured Party bVor. on behalf
of Debtot or any. other peison 'or part'{ In conMction With this' Secllflty Agreement or to Induce Secufed Party to make the loans
. {described hi Seotlon Itt} pr?ves' to havo be lin false l.n anY respect when JTlado or furnlshe;!f.
Lou. theft, substantial dema9e, destructiOn, sale (exceRt as ovthorlted In this SecuritY AgraaMcmt) ot to or ol any of th-
or tiw. making Ot MY levy, n!nne or atuchment thereof or thereon, .
O'ebtor-"s dtll:lth, termination of exlstef"l(), or buslhess fellure;' the appointment of 11 recelver of all.or i.ny part of
the property of Debtor; 'en assignment for the benefrt of creditors Dabtor, the calling of e ot creditors of Debtor, or .the
of aN( lltoeaedlng under any huotvancv laws by or against Debtor 6t MY sunltY. or
for Debtor; or the oecurreMo- of any of suoh.evente dascrii>OO In this part 16) as to any person or partY liable- for the p&yment of tho
or any portion thereof,
Any s'latement Of tha flneMlal ofDebtOf or of maker, guarantor, svroty or erntofsat of any of the proves to
be false.
The CoUaterai becomes, In the Ju'dgment of Secured Party, unsatisfactory o;fNufnclent In cnarSCter or yetue.
. . . ' . .
Any maker, guarantor,. surety or andorsai under or with respect to the defalllta In any-obligation or Uabll!tV to Sec\lfed
Party. '
TM occurreMe of any envlroi1rflenta\ly .hazardous splll, dtscl\f!r!]a or otlwr slrhDar ovent adversely affecting or the
pr6mlsM In y;hlch lhe locat!:d, whelhef suCh evept otx:uur on such pramlse: or Of) other premises.
Debtor, or any them; or guarantor. fahs to timely dellvar any and all f!nanclal statementS, lncomo tax rOturns, Oll$h flow
lnform6tlon., belance. ;sheets, accooots recelveble reports, or any other bl!_51ne.ss, tax cir 11nanGial lnfonnatlon reqtJBste<l .bY S!loured
,Party.
SECTION VII: 'sECURED PARTY'S RIC3HTS AND REh1EDIES,
A. .Qeneral.
{1)
li)
{3)
{4)
se'cured Party fl"ltiY exeroJSti the fol!owlng rights and remedies elther bafor$ Of eJuir an Event of Default:
SecUTed Party m11y take ContrOl of any proceeds of tho Colletersl.
Secured. Party-m&y release any Collateral in Secured Party's possession to any b!btot, teffiporarlly or otlierwlse.
Stlcured Party may"take coOtfol of any fur;9$: generated by'lha Co!leteral, soch as refunds ffom end proCeeds of lnsuranca, end reduce
any part Of the-Indebtedness accordingly or perffilt Debtot tl.r un st.>ch funds to repair or replace damaged or destroyed Collateral
eov1.1red by IMuranM.,
Secured Party maY request Debtor frolfl time to tlms: m Secured Party's discretion lo taka any and to execute eny Instrument
whlcn.secured may deem necessary or advJ.sebla to eccompHsh the. purposes of this Sacurlty lncfudlng, without
Hmltetlon, fal to ask, demand, collect, sue {Of, rlicovor, eornpoun.d, racelve and glvo acquittance and 'receipts for monJ.es due end to
become dUG un<le.r or ln respect of any CoUateral; lbl to feceive, and collect MY drafts or other InstrUments, .documenta end
chattel paper tn connection with the pracedlng actiONJ {cj to I&! any claims or take any action or_ Institute e.ny proco&dtngs which
may deem necessary or deslra.b'.l.l for CQlleetlon of any of the Conoteral or otherwise to enforoe.1ts rights wtth respect to
any of 'the CoUatetill,. end fdl to 'C<lmplete end slgfl on bet"lalf of Debtor one or more f!Mnclrig statwtllnts Jl-$rtaln.lr9 to the Collateral
end file tM same In an appropriate location. The powert tfOnferred on Secured Peny herelK!Jior ere solely to protect Its Interest In the
Collatenl! and sNif not fmpose dutY upon Secuted Parw to exerels"e eny.such power&, appointment of SecUfed Party as
Debt.oJ'S I"IQI.Int Is coupled w_lth ill\ Jntemst al\d win wrYJve any dlsaQI!,Ity o;l Debtor. .
This SeOUt"ftY Agreement, Secured Party's' rlghtt; herdum!er and/o'r the heretiy secured be In wbole and In
part fr6tf) tlr'ne to lima, end 11\ anY !Uch CMe Sacuted Party sheU ba ful!y c.fl!iehllrged tiom 1111 Jeppons[bl!ltv with respect to the
&0 asslgne:d and the aulgMe: sl111ll be entitled to an of the rfghta, prlv!logos and gr<111ted in-this Stlevrlty Agreement to Secured
Party tO the stJma &S-$Igrwd, and Debtor win assert no Clelm or defensas he have .eg3!nst secured Party egelt1$t tha
asslgnea, except tho.$e gronte61n thls Sewrity"Agreement.ln edd!tlon, Debtor'waNli..e end will not es.;art ilgalnst e.ny clslme, dafeMas
or set-offs whlllh Dabtor alisert agslnst secured P1rty except defenses which be walvad.
l'age 5 of, '
10
(61
m
Secured ;arty may entl!lr'upon'r .i$;r'.s ,DJemlses.at 'any reasonable lime to inspect :Collateral ilnd Debtor's records
pertaining to the cl.llloteral, and 0.. , . ..Jr Eha!l assln the Par1y In makfs}g any stK:h fnspectlo(l,
Sewred Party' moy ootiiv 1.1-.!!'e<:couht eny nligotlo.bkllnsr..roments or othe; e,-.?dence of
Indebtedness u:mrttBtl by Debtor to Secured PartY es proceeds to pay Sflcured Party directly. Secvred Patty may ac&>unt
direcUy to verify lnlormatlor\. fum!shed by Debtor. : . . -
1
(8) Secure{{ Party may re9uke ,additional Col!aturl!l or reJect a; any prOporty htireafter offend by,Oebtor a's Collateral,
. . . . . .
19) Secured P-arty may designate, from time to time, ll certalrfpeicenteije of the 'Co!latet\11 as the loan vel1.10 arid require oebtor to maintain
tha Jndabtednasa at ot below such percentage. , .
' . . -.
110) SMurod Party may present lor cohverslon tu anY lw!trume:nt or InvestMent saourfry or a combinatiOn tlwreof. But S;oured Party
. shall not have eny duty to present fctt C<lllvorelon Instrument of po!!allira! ln Ita JX!UBsSJon Un!en have faceived from DfJbtor
detaUed written lnstruotlohs to that effect at- 11 tlf!18 reasonabty far: In advance of the final CQnvarslon date to. make such convOrslon
(111.
(121
(131
t15)
(17)
possible.
Tim foregoing alld of Secured p(lrty wm ba h1 additlo'n to, and oot a tlmltet!On upon, any rlyhts and powers of: Seburad
Pe:ny given by law, elsewlwt$"{0 th!s or othenylse. . '
Secvrad Party hBs no obtlgation.to attempf to satisfy the Obligations by them from any other person' liable lor and
S&eured Patty may rela!lse, 'modify or waive any C1J!/atera1 provlded
1
by any ot!Wr p-erso'n tO secure any .ot' the Obligations, all without
affecting Secured Party's rlehts against Debtor . Debtcr waives any right It may have to require Seouted Party to pursue eny third
for any of the Ob!igatlollS. ,
Secured Party may compty with anY applicable state' ot In cQMectlon with a dlsposhlon ol the Co11aterel 8nd
will not be consldor:xt to. affect thi reeSonab!enen of of tl)e Collateral:
If 'secured Pilrty any of the Collateral upon'credlt, Debtor wln ba credlt&d only with payments 'aCivally made by the
received by Sl!'cured Party and applied to the lndebtedfl\\ss of the In the event the purchaser falls to pay for the eonateral,
Patty may roae11 the Co1tetellll atld DobtOr shaD be' credited wlth tho proceods of the seltt.
'secured Party have no to marshaU any assets In favor oi or or In payment of:
!11 th<l Note,
tm. any of other Obligations, Of
{til) tmy oth'er obl!gailon owed to Sacurpd Party bY Df:btor or any other person ..
Thl.$ Secutlty Agreement shaV bind and shall lrnrre to the benetlt of the MUs, legatees, executors, edmlr\[strators, nK::ceswre end
assl{ins of Pafty snd bind Mcornct .11$ e debt'ot to
SCCUfed Pi.tty does oot consent to asstgnmont by Debtor as exprilss!y In this Seourlty Agreement.
B. Remedies In l:.venf of Dohtult
0\JrlflQ the &xlsumce o( !lilY of u i;t U;:;: e ICI!I SecoteJ Po;tz I; tl a pcf<Othl of #;s u;Jebt&diieos, Secur!ld
Party mav deefarc the 'unPaid principal and oop.eid and accrUed intarest of the h;debtednan lmmed[atelY dLH:I In whole or PJ!rl, enfaroe the
Indebtedness, e.nd/or exercl$tlany right$ afl(( romedies by the Teio11 Bvdnass Commercial Code or by this Seaurity Agreement,
lriclu?Jng the . , . ' , '
(31
!41
!51
!61
191
l1,0)
reqv!re Dabtot to dt!Uver to SoCurod Party all books end records relating to the Collateral;
. . . .
require Debtor to essamblG tl.e CoUateral end make It available 'to 111 P,lece .wnvanlent to both
tHke possession of eny qf the j:ollaterel efK! lOf' thl; plJflXIS& enter jmy pdmtses where lt Is locate.d If this can-be doM Without breach
of the pe11ce end wftl.not be guflwol, held liabkl .
seU, or othel'\'llse of' any ot the CoUateral 1n ace old wtt.h the fights, romedlos, and Jutles of Secured Party. under
Chuptors 2 and 9 of the Texas Buslnes11 And Commerce "Coda after gMilg notloe ell required by those thapters; unless the CoDaterol
to deCitne rap!91y In nlve, Is perishable, or would typlodlly be sold on a recognized market'. Secl.lfed Party will giye Oobtor
reasonable not! co of any pubtlo ssl!l. of the CpUaterol Of of 11 timet of tot whfcll It may be otherWise dis pend of without further notice to
Debtor: In eVe.nt, notice will be deemed reasOnable If !t Is nlalled, pos!age propald, to Debtor at \n thla
at least ten days bef01e .any public sale or ten days b&tore time When th$ Copatera1 may be disposed of
without fotther Jiotlco to Oabtpr Detitor authOrizes Pijrty to disclaim or modify any mnd all "':'arrentles set ln Section
9.01 Gldf and'stlpul.ele$ sncl e.grees that such a d!sclahmt end/or m?dlllcatlon oat render the
1
unreasoneble,
1
aurron<'ler any Insurance poficles covering the CoUateraland recelvethe unearned premium;
apply MY p.rpceeds tM daf11ul',t In .the manoor spe.clfied In Chapter 9 of the Texas Busffius And
Comrryerce Code, Jnclt.tdlng payment of ?neurad Party's reasonable pttorney's fees end cowt expanses; .
If disposition ot the Collateral leaves tf\e Indebtedness Unsatisfied; collect the detlclency ell liable. parties. Expenses of retaking,
holding, preparing for sale, uOJng or thalike shell lncluda reasonable attorney's and laaal arid/or
and Debtor agrees to pay SI.Klh costs, expei}Ses, and.loe' plus at the maximum (B\S altowed by appllceblG law;.
' .
Secured Party may reteln all or pan ot the CQUeteralln tun el'td/or parllal satisfaction of the Indebtedness pursuant to SectJ.on 9.620 of
the jaxes Bvslnass Cominerca Code; , . ' .
Sec-ured Party may, whhovt demand or nodce of .any kind, epproprlato and apply toward the P&Ym\lnt ol any thon owing to
Secured Puny and In such Ol'der of appncatlon a3 the Secuiad Pany maY from time to tlma elect. any property, be/an<:es, Credlts,
deposits, accounts or monks of Dsbtor which lor any purpose Is ln'tM posses:Jion or c;ontrql of the Sl!oured Part:;: or any membar Q.ank,
branch or other de-pository lnstltl_ltion of lnterrwtlonal 6anoshttres Corpuratlon;
Party may lemedy any default waiving the remediad and may waive any default wlttwut waiving any othw
priOr or def11ult. , . [
SECTION VIti: ADDITIONAL . .
(1) AJI nodces and other to Patty hereunde'r Pr In t:oMaotioti shell be deemed to have bean given When
received by Sooured Party In writing at the address: first shOwn he,le/nabov{!. notice or demand or other communication to Debtot
hereunder or In coMectlon herewith may be given end shall concluslvely-be deemed and cons!dertrd to h&ve been. given and recelvati
upon the deposit th9reof In writing In e United States Man, duly stamped and addressed to Debtor eltlwr at the street address, the
first showil h<ireinaOOve, or at the maillng a'ddruS, 1f any, given by and/or for Debtor .at tha b-eg!nhlng of thla agreoment {or at such
other address as may haw been desfgnated mdllt recently In writing by Debtor to :Se'curad Party); provided, however, I!Ctwl notice to
Debtor, however Glvenor recelvBd, al\nys be efl6ctlvo wh!in; given or .received,. .
12} A copy of thls silcurlty Agreemiml: or. any llrisnclng statement Covering !he Collateral Is 11rfd may be f!led as a llnanclrig
statement. Information concerJlir'ijthls security ln!erest may be obte!ned at tha offlca of Secured Party' shown above.
. . ,l:BC0004 06/22/0l.
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13) This Asreement may or by .an In wrftlng,
14) This seeVIity Interest Shall neltller 11ffect oor be aff_()(lted by any other secwlty for of ihe lndebtedlll;!n. extension$ of any Of
the lndebt!!dne,s Mr of any _of the Collateral .shall affect tha validity of tht& lnl&rMt with reforenctl to any third party
Add!Honally, foteclosure bf this seeOrity lawsuit does not 1imlt SeciNed Party's remsdte.s, Including tha rJghtto -$tl!l
{:QIIi:lteral .under the .terms of thls.Securlt'{ Patty h&ve tM right to exercf.se all remedle$ at the
8
ame or
dll1.erent !lmes end no fBIJlBdV .shall be. a dafense to bny Oilier. $(.-t:un!I;I_Perty e.hall have ell rights and remedies granted by lew or
oth&rwl$e In edp!tlon 19 provided In _this Se.curlty Agree_ment.
(5) SecUted Party maY any default Without waNing lt. No by Party "In Ita rights or oxerclslng Its
rights JJr rernec!lea shall furth&r eJ<erebe of remedies or rights. The foUure of Secvred Party to exercise any remedies or
right$ does not waive subaeqvent of those fJ!mGd[es or 11ghts. AnY .waiver bySeoured Party Ot any default n<lt wajve any
Nrther Secured Party may remedy eny without welvlr.o it. Secured Party's waiVer of anv right 1n thh; Securltv
Agr&emeht_or tiny Is binding only If In writing.. .
-{6) t?ahtor end Party th!lt the JndebtedMss be In st[lct oomplta.Me with eppllaeble ustny lews. If at eny limo lntenut
cOntlilete.d for, charsed or ret:elvGd ul'l<klr en')t lndebtedrnas secured by this Security Agreement or otherwise In connection with this
transaction would be usutlo.us under appllcJJble thon reQtltdless of the 'provisions of this SeCurity Agreement
01
any othar
documents or lnenuments evidencing, sec.uring or otherwbe executed. in connoot!On With My Indebtedne-ss secured by thle Seour!r;y
or any action or event Hneluding, without Dmltetlon, prepayment of prlnclpallXlder thG 01 aeceleretloo of maturity by
Secured Party) which rt111y ocoU( with respect to t!}e /'late, It Is agreed that etl sums detelmlMd to bo usurlaUll shell bo Immediately
credited by P..erty to Debtor ea a P!J}'menl of princiPal tm<ler the Note or if the Note has alrpady been paid, "lmmedletelv
to Debtor. AU oompensatlon which lntetciSt under.applloable law lo oonnactlon with any lndebtedoou s.Wured by
this Security Agreement s.llaH itmortlzad, PtOfi!l&d, aUocated, and spreed ovi!r the fliD period of tln}e any Indebtedness IS owed by
06btor, to the greatest extent permlsslbfe vllthout exceeding the appllce.b!e maximum iate !!!)oWed by law In effect from time
to time during such period, .
f71. Secured PartY msy perform llflY obli9at!On whtch Debtor fiiUs to perfllrm t>ebtOfBQIIie.s (Jri demand to reimburse Party
Immediately for any sums ao paJd by SectKed Party, Including attorn&ys' fees ar.d other Jegcd expenses pJuslt'lterest on those sums
frCim the dates of payrrHmt at the rite stateJ In the Note for matured, unpa'kl amounts. Any sum to be ,..;lmbursed s"he!f 6Q so-cured by
this Securttr Agreert)&rlt. SeCtion IV, (9) fot lnsiJ(ance reimbursements), .
"18) Thts Security Agreement Js'belng ei.::ewted and de!Nered llild Is to }le performed- In the Stale' of Teires and
enforced In ecoordanca with ttw lewa of the Sme of TexaS, except tO.the exfent that tho Code provides for ttw of the
law of Oeb(or States, When Ute context re.qu!re.s, sb'lg!Jiar nouf\S an-d prOnouns Include the plural, "rhe tlghts of _sacuted Party
uoder this Security AgreemeiJ.t sMn Inure JO th& beooflt of lis succese.ors a!KiassJgns.Anv. asslgnmt"nt of part of the lndebtadnese end
delfve.ry by SeetHed Party pf any part of the Collateral w!ll fully dtschargo SM;Uied Party from eny Md responsibility for that portion
of the Conateral, Debtor's under thb Security Agreemeflt shaU bind Debtor's PBTS<Ifl81 roPicsontotlvea, suceeuars and
If Debtor I& mora than one, all \helr representetfves, warranties end 11greernents are Joint and MvaraJ. If any pert of this
Security A'graemant is unenforcellble,.lhe unenfor.::eabll/ty of provlsloh will not affeot the of anv other prOvision
hereof snd all .other prov'lslotis w1!1 constitute velld provis_lons.
SECTION IX: 4-RBIJRA'TlON THE PARTIES FUR'fHER AGREE AS FO(lO'Si
Ia! ANY .AND ALL CONTROVERSfES sEfwfEN THE PAI\TIES SHAll liE RESOLVED BY ARBITRATION IN ACCORDANCE WITH THE
COMMERCIAL 'ARBITRATION RUlES OF THE AMERICAN ARBITRAT!Ot-.1 ASSOCIATION ltJ EFFECT Ar THE TIME OF FILING, UNLESS THE
COMMERCIAL ARBITRATION RUL"ES CON,FUCT WitH THIS PROVISION, AND IN SUCH EVENT THE ii!RMS OF TitiS PROVISION SHAI.L
CONTROl TO THE EXTENT 'OF i'"HE tONFUC'r, .ANY. ARBITRATlON HEREUNDER SHALL BE BEFORE AT LEAST NEUTRAL
ARBITRATORS ASSOCIATED WITH :THE AMERICAN ARBITRATION ASSOCIA'r!DN ANO SELECTED IN ACCORDANCE WitH THE COMMERCIAL
ARBITRATION RULE$ bF THE AM.EF\ICAN ARBITRATION ASSOCIATION. FAILURE OF ANY ARillTRA'rOR lO DISCLOSE ALL FACTS WHICH
MIGHT TO AN OBJECTIVE CREATE A REASONABLE IMPRESSION. OF 'tHE ARaiTRATOR'S PARTIALITY, ANO/OR MATERIAl
ERRORS OF. LAW SHAll BE GROUNDS (IH ADDITION TO All OTHERS] FOR VACATUR OF AN AWARD RENDERED PURSUANT YO THIS
AGREEMENT, .
lbl 'rHE AWAfiD'Qf THE Al11llTRATORS, OR A MAJORITY Of THEM, SHAll IJE FINAL, AND ;,JUDGMENT UPON THE AWARD RENDERED
MAY BE EtlTERfO IN ANY COURY, STATE OR FED!i>RAL, HAVING JURISDICTION, YHE ARBITRATION AWARD SHALL BE IN WRITING ANO
SPECIFY THE FACTUAL AND LEGAL BASES THE AWARD, \.JPON tHE REQUEST OF ANY PARTY_. THE AWARD SHALL INCLUDE!
FINDINGS OF MOT AND CONCLUSIONS OF LAW, . '
!ol AREII1AABLE DISPUTES INCLUDE ANY /\NO All CONTROVERSIES OR ClAIMS BETWEEN lHii PARTIES OF viHATEVER TYPE OR
MANNER, INCI,.UOJNG WllHOUT LIMITATION, ANY ClAIM 'ARISING OUT OF OR RELATING TO THIS AGREEMENT, All PAST, PRESENT
AND/OR FUTURE CREDIT FACILITIES AND{OR"'A<HU!EMENTS INVOlVING THE !>ARTIES, ANY TRANSACTIONS BE\WE:EN OR INVOLVING THE
PAfHIES . ANO/OR ANY ASPECT OF ANY PAST OR PRESENT. RELATIONSHIP OF THE MRTIES, WHETHER BA.NK!Nd OR OTHERWISE,
SPECIFICALLY INCLUDING ANY AlLEGED TORT COMMITIEO BY ANY
ldl ."THE PARTIES SHALL P,LLOW AND PARtiCIPATe IN DISCOVERY IN ACCORpANCE WITH" THE FEDEML RULES OF (:ML .PROCEI:lURE
F0}1 A PERIOD OF ONE HUNDRED TIVENTY {120) DAYS AFT.fR 'fHE FlliNO OF THE ORIGINAL RESPONSIVE PLEADING. DISCOVERY MAY
CONTINUE THEREAFTER AS AGtiEEO tW THE PARTIES O.R AS ALLOWED BY THE Ahnl'rllATtiRS. UNReSOI.VED DISCOVERY DISPUTES
SHALL BE BROUGHT TO THE ArTENTION OF THE ARBITRATORS BY WRJ\TtN MOTION FOR PROPEn DtSPOSIT!OU,lNCLUDING RULING ON
ANY ASSERTED OBJECTIONS, PfiiVILEGES. AND PROTI:CTr.'E ORDEO REQUESTS AND.AWARDING REASONABLE ATTORNEY'S FE"ES TO THE;
Pnt:VAIUNG PARTY,
fe} ltl THE EVENT 'THE AGGREGATE bF All AFFIRMATiVE CLAIMS ASSERTED EXCEEt> $500,000,00, tlXClUSJVE OF INTEREST AND
ATTORNEY'S FEES, OR UPON THE WRITrEN RE;OUEST OF ANY PARTY, 111 PRIOR TO THE DISSEMINATION Of.A LIST.OF POTENTIAL
ARBITRATORS, THE AMERICAN ARBITRATION ASSOCIA'flON SHAlt CONDUCT AN IN PEJ\SON ADMIN!STRATNE CONfERENCE WITH TH!:
PAnTIES ANP THEIF1 ATTORNEYS FOR THE FOLLOWING PURPOSES AND FOR SUCH AOOIT!ONAL PURPOSES AS THE PARTIES OR THE
AMERICAN ARBITRATION ASSOCiATION MAY DEEM APPROPRIATE, lA] TO 0UTA1N ADDITIONAL INFORMATION Af>OUT THE NATURE AND
MAGNITUDE OF THE DISPUTE AND !HE ANT{CIPA'f'ED LENGTH OF HEARINGS AND SCHEDULING; /B] TO DISCUS$ THE VIEW. OF THE.
PARTIES ABOUT ANY TECHNICAl AND!OR iJT-HER SPECIAL QUALIFICATIONS OF THE ARBITRATORS: AND !C) rQ CONSIDER, WHETHER
MEDIATION OR OTHER MI;THODS bF DISPUTE RE:SOLUTION tiJJGH'T BE APPROPRIATE, AND 121 AS PROMPTLY AS PRACTICABLE AfTER THE
SELECTION OF rHE Afiii!TRATORS, A PRELiMINARY HEARING SHALL liE HElD AMONG rHE PARTIES, THEIR ATTORNEYS AND THE
ARBITRATORS. WtrH 'rHE AGREEMENT OF THE ARBITRATORS AND THE PARTIES, THE PRELIMINARY HEARING MAY BE CONDUCTED BY
TELEPHONE CONFE.RENCE CAll RATHER !HAN m PERSON. At JHE PREliMlNAAY HEARING YHE MATTERS THA'r MAY. BE CONS!DERI'O
SHAl_L INC:LUDE, WITHOUT llffHTATION, A PREHEMING SCHEDUliNG ORDER ADDRESSING fA! EACH PARTY'S DUTY ro SUBMIT A.
STATEMENT OF ClAIMS, DAMAGES AND/OR DEFENSES, A STATI!MENT o,: THE ISSUES ASSERTED BY EACH PARTY ANO ANY
LEGAL AUTii6RitJES THI!. PARTIES MAY WISH TO BRING TO TI"IE ATTENTION THE ARBITRATORS: IBI RESPONSES AND/OR REPLIES TO
THE PLEADINGS FILED IN COMPLIANCE WITH SUBPART 2\AJI ICI STIPULATIONS REGARDING ANY UNCONTESTED fACTS: 101 EXCHANGE
AND PREMARKING OF All OOCUMENTS WHICH EACH .PARTY BELIEVES MAY BE.OFFERED AT THE FINAL ARBITRATWrl HEARING: !EllHE
IDENTII'ICATION AND AVAILABILITY OF WITNESSES, IUCLUDING EXPERTS, MID SUCH ADDITIONAL MATTERS REGARDING WITMOSSES
INClUDINGTHEIR BIOGRAPHIES AND ASHOAT.SUMMARY OF EXPECTED TESTIMONY,IFI WHETHER A STEtWGRA.PHIC OR OiHER
BE.MA!NTA!Nm; ANO (Gl 'rHE POSSIBILIT.Y OF U'J."ILIZING MEDIATION. OR OTHER
HI FOR'PURPOSES OF THIS. PROviSION, THE PAATIES" MEANS DEBTOR ANri SECURED PARTY, AND EACH AND All PERSONS ANt>
EtffiTIES SIGNING THIS AGREEMENT OR ANY OTHER AGREEMENYS BETWEEN Ort AMONG ANY OF THE" PARTIES AS PART OF THIS
TRANSACTION. -niE PARTies SHALL ALSO INCLUDE INDNIDUAL PARTNERS, AFFlliA"rE;S, OFFICERS, DIRECTORS, "EMPlOYEES, AGENTS
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OF A.rN PA;.;j.ro AND SHALL :mv OTHI;R AND .THI;

!gl THE PAflTles SHALL HAYJi THE RIGHT TO INVoKE SELF HELP REMEDIES !SUCH "AS sET OfF NOTIFICATION oF Accoum DEDTons
SEIZURE. .AND/OR OF "COllATERAL. AND NONJUDIClAL SALE OF rRoreRrv AND REAl PROPEnTY COLlA fERAL)
BEFORE, DUft!NG OR ,AFJER ANY f>JIBJTRATJON AND/OR REQUEST ANCILI,AAY OR 'PROVISIONAL JUDICIAL REMEDIES (SUCH AS
SPECIFICPERFORMANCE, JiECEIVER, INJUNCTION OR Rf:StRAININ!l onDER.. AND SEQUESTRATION!
. BEFORE' OR AfH:R AN!{ ARBITRATION. TfiE Pfl.R.TIES NEED NOT AWAIT THE OUTCOME OF THii. ARDITRI\TION BEFORE USING
REMEDIES. USE OF SELFHELP OR ANCillARY AND/OR PROVISION-Al JUDICIAL REMEDIES SHALL NOT OPERATE AS A WAIVER OF EITHER
PARTY'S RIGHT TO COMPEl ARBITRATION. ANY ANCILLARY OR PR6VJSjoNAl REMF.DY WHICH WOULD BE AVAILABLE FROM A COtlRT AT
LAW SHAl.L BE TH AI.\B!"fRAtOAS, ,
THE PARTIES THAT Ai'lY AC'l'JON REGARDING ANY CONTRo_vERSY I}ETWfEN THE PARTIES SHALl EITHER Be BRoudHT ay
ARBITRATION, A$ DI::SCRIBED HEflEIN, OR BY JUDICIAL PROCEEDINGS, f!UT SHALt NOT BE PURSUft> SIMULTANEOUSLY IN DlFf"flRENT OR
AlTEANATJVE'FORMS. A TIMElY WRITTEN NOTICE OF INtENT TO ARBITRATE pURSUANT TO THIS' AGREEMENT STAYS AND!OA ABATf!:S
ANY AND ALL ACtiON IN A TRIAL COURT. SAVE ANb EXCEPT A HEARING ON A MOTION Tti COMPEL ARB!TRATION=AND/OR THE ENTRY
OF AN ORD!:R COMPElliNG ARBITRATION AND STAYING AND/OR ABAiiNG THE UTIGATION PENDING THE fiLING OF THE ANAL PiwARD
OF THE ARBITRATORS! ALl REASONABLE-AND NECESsARY ATTORNEY'S FEES AND ALL TRAVEL COSTS SHALL BE AWARDED io THE
PREVAILING PARTY ON ANY MOTION TO ARfliTRATIOtl AND 'MUST BE PAib TO SUCH' PARTY WITHIN.IEN (10) DAYS Of' THE
SIGNING OF T,HE ARUITRATION. , ' ,
. . .
. til, ANY AGGRIEVED PARTY,SHA.(l SERVE A WRitTEN NOTICE. OF ltiTENT TO AfUIITRATE TO ANY AND. :All OPP0$1NG PARTIES WITHIN
360 DAYS AFTER DISPUTE _HAS ARISEN; A DISPUTE IS DEFINED TQ: Ht\VEARISEN ONLY UPON m:C&IP'r OF SSRVICE OF JU'otCIAl
PROCESS, INCLUDING- SERVICE OF A GOUNURCL.AIM, fAILURE Tci SERVj::: A WRmEN NOJICE OF INTENT TO ARBITRATE 'WITHIN TH,E; TIME
SPECIFIED ABOVE SHAll BE DEEMED A'WAIVR Of' THE! MGRIIOVED P'f'RTY'S RIGHT TO COMPEL ARBITRATION OF SUCH ClAJI,( THE
ISSUE OF WAIVER PURSUANT TO THIS AGREEMENT IS AN ARBITRABLE DISPUT&,
!j) ACTIVE PARTICIPATION IN PEND)N() l.J'fiGAJION DURING THE 360 DAY NOTICE PERIOD, WHETHER AS f>t.AitiTIFF OR OEFENbANT, IS
A WAIVER OF THE RIGHT TO COMI'ELARBfTRATION, All DIS.COVERV OBTAINED IU THE PENDING lJTIGATION MAY BE U$0 IN ANY
SUBs'f:QUENT '
lkl THE PARTIES .tuATHER AGREE THAT ltl NO ARBITRATION i>RdCEEDJNG HEREUNDER SHALL F.IG: CER'rlFIEp AS A cUss ACTION OR
PROCEED AS A ClASS ACTION, OR ON A MS!S INVOlVIf'IG CLAIMS BROUGHT IN A PURPORTED REPRESENTATIVE CAPACITY ON flEHALF
OF' THE GENERAL pUfJI:IC, OTHER CUSTOMI!RS .OR POTENTIAL CUSTOMi!:RS OR PERSONS SIMILARLY SITUATED AND IIIJ NO
PROCEEDING HEREUNDER SHALL BE WITH. OR JOINED J.N AN_Y WAY ANY OTHER ARBITRATION PROCEEDING.
{I) ft.NY ARBITRATOR SELECTED SHALL BE Kf'iOWLEDGfAB.U;" lll THJ:.SUB.JEcj MATTER of TH.E DISPUTE, i'ACH Of THE PARTIE:S,SHALL
f'AY Afo! EQUAL SHARE OF THE ARBITRATION COaTS, FEES, Qf THE fEES. COSTS. AND EXPENSES,
!m) ALi. STATUTES. Of LIMITATIONS WHICH WOULD OTHERWISE BE' APPLICABLE SHA.LL APPLY_ ANY AND All ClAII'o1S ASSERTED
IN ANY AREiiTMTION.PROCEEDJNG HEflEUNDER"AND THE COMMENCEMENT OF ANY ARBITRATION PROCEEDING TOLLS SUCH STATUTES
OF LIMITATIONS. . '
{n) IN ANY AAfi.ITRATJON PROCEEDING SUBJECT TO THIS THE OR rfiA.}OR.rfY OF THEr.1, ARE SPEOIF)CAllY
EMPOWERED TO DECIDE (BY DOCUMENTS ONLY, OR WITH A HEARING, AT THE ARBITRATORS' SOLE DISCRETION! PIU1-HEARING MOTIONS
.. WHICH ARE SUBSTANTIALLY SIMILAR TO PREHEARJNG MOTIONS to DlfMISS .AND MOTIONS fOR SUMMARY AOJUOICAT!ON.
!ol. THIS ARBITRATU)N-PROVISION SHALL SURVIVE ANY TER/'.11NATION; AMENDMENT. O.R OF THE AGREEMENT IN
1
WHICH
THIS PROVISION IS CONTA!NEQ, UNLESS ALL OF THE AGR.EE IN WRITING, ! '
IPI nte PNml;s ACKNow'J.EO.GE THAT THIS AGREEMErrr' EVJcieNcies A TMNSACTJON INVOLVING trirERsTAJE coMMEnce. tHe
FEDERAL ARBITRATION ACT SHAL( GOVERN INTERPRETATIOrl, AND PROCEEDINGS PURSUANT TO THE ARBITttATION
CLAUSE OF THIS AGREEMENt..
I
(q} .THE ARBITRATORS, OR A MAJORITY THEM, AWARDATrORNEY'S fEES AND COSTS TO'THE PREVAILING!PARTY'
TH,E THIS , , . ': : . :' I
{r) NEITHER THE PARTIES NOR THE ARBITRATORS Mf\Y PISCLOSE Tt-jE C!)NTENT. OR RESUI;.TSQF ANY ARBITRATtoN
HEREUNDER WITHOUT PRIOR WRmEN, CONSENT OF PARTIES AtlD/OR COURT ORDER.
. (s} VENUE OF ANY ARB!TftATION PROGEED!NG HEREUNDER-SHALL BE IN l!u:.ar COUNTY, TEXAS.
SECTION X. Mlscel!a.nM"f,' . :
(e) SftcurftY !n1tirest AbSo!uta,AJI rlghlt: of the Secured P:ariy .and the security lnterens hereunder sh:a!J be absolute .and. Ure!pt!ctlve
.. of: . I
{!} ony cfiange'ln the time, menn&r, amount or p{aco of payment of, or in any otMf term of, an or any of the or tiny ott!er
amendrpent or welvor of or Sny 0-onsent to eny dl!parture flom the Promissory t>te or eny other loan f
(li) ariy !!Xcherrge or or flOflperfectlon of all or any part Of the Collateul or any othw or any releas-e f(om, -amlindrflent to,
watver ot'orcos;unml t(! depanure from any for eu or any of the Indebtedness; or . ,
.{llij tO the fuHest -extent permitted by Jaw, any other eltcurrl$111ntts whk:h might otherwise COnstitute a defense avallable to, ore discharge of
the Debtw or a thlld pany pled<;Jor. '
lndemn[fia;!ofl. The Debtor ag.reu to ln'mnJfy the Seouted Party and hold 'the SeCured. Party hatmloss tronl and any and all .
. 11abllftles, obngetlons, k>lr.les, damages, pctJons,JUdgme_nt$, sults. oosu, oxponsGll or disbursoments of MY ldrnl of nature
whklh may be lmposed on, Jnouu'ed by, or asserted)'lgtllnst the secured Pnrty ln env way ralatlng,ln any way out of or In connecllon whh
thl$ Seeurlty Agreement, the 1-olln. Dooumenta or the tlll[lSIUitloos contemplate.d hereby or Other tl)M arblfig Of the Sa elUted
Party's breach, defn.ult, negligence.(>( .WUJfut misconduct in obligations undor thl$. Sacvtlty A9rumt!nt or tho t..otr.n DGoumenU;, Without
limito.lkm of tho foregolnl,J, the Debtor wh! relmbws8 the Party for eJI a,..penses (lfloluding for ltQII! sorvlc&ll of tv(lry klndl of, or
Incidental to, tho negottatlon of, onterfng Into and Pnloreement of flny of the provi!lons hereof Pnd Of the (pdebtedn&Ss, and 11ny a'oh.!al or
ettemPted sal!! laaso or other di$poslik!n oi, and Pny exohaflge, enforcement, collectfon, or Settlement of any of the Cotlatbrel and
defending or asserting th11 1lgtits and elblmt of the Satured Party In respect thereof, afu}_ lor lh& care of the 11nd dafsndlhy or 11ssertlng
the rights and claims of the. Party In rupeot thoroot, by litlgatlort or otherwise, including el!ponse of lnsurapce. and all suoh oxponsas shell
ba thll Debtor'h;ldebledrws!,
Page 8 of 9
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SECTrON XI: NO ORA) AGREEMENTS
0
THERE ARE NO UNWritTTFN tlRAI AGI'!EEi.1ENTS PARTIES
z.. . 2oos
DEBTOR:
By:
DEBTOR: BX DEBTOR:
By
OEBTOR: DEBTOR:
By: B :
DEBTOR: DEBTPR:
By: 8:
SECURED IN'l'ERNATIOOAL BANK OF C01'.MBR<:;E
By:
Signature
N.ame:
r.Uke Sohn
Title:
J:!age 9 of 9
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SCHEDULE I
All of the right, title and Interest of Debtor In and to the followlng types or Items of properly
now or hereafter acquired by Debtor and all accessions or substitutions therefor and all
products or proceeds thereof utilized by Debtor In connection with its business conducted
at the property descril:ied In Exhibit "A" atlached hereto and made a part hereof (the
'Property');
1. All equipment, fixtures, furnishings, Inventory, and articles of personal property
leased or owned by Debtor (the 'Personal Property") now or hereafter atlached to or used
In or about the Property or that are necessary or useful for the complete and comfortable
use and occupancy of the Property for the purposes for which they were or are to be
attached, placed, erected, construct.ed or developed, or which personal property Is or may
be used in or related to the planning, development, financing or operation the Property,
and all renewals of or replacements or substitutions for any of the foregoing, whether ornot
the same are or shall be atlached to the Property;
2. All accounts, accounts receivable, general Intangibles (Including, without limitation,
trademarks, trade names and symbols) and instruments, notes or chattel paper arising
from or by_ virtue of any transaction related to the Property or the Personal Property;
3. All proceeds{includlng premium refunds) of each policy of to the
Personal Property;
4. All rights, Interests, and appurtenances pertaining to the foregoing; and
5. All other Interests of every kind and character that Debtor now has or at any time
hereafter acquires In and to the Personal Property described herein
102328 .1'
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STACI PRODUCE, LTD.,
a.Texas
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SECURITY
AGREEMENT

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The tmdarsfgned Debtor, Owner of Collateral, whether one 'or mora, and INTERNATIONAl. RANRj OF 001-iMl!:'RC'fj
130 E 'J'RAVJiS SAN ANTONIP. TRW 7B205 I
{hereinafter called errtar Into this Security Agreement and fl)( good and yaluable consideration, the of wh!eh Is hereby
I!Cknowle\fgad, and a-gree asiollows:
SECnON It Croatian of Security Interest,
DebtO! hereby grants to Secure.d PartY a flrat and exclusive lien end lnterest In all of the persona! property of Debtor, wheravar located,
and now Owned' or hereafter lnciiXilng the property d"cribed In Section U of this SecuritY Agre11ment {the eonateral"l to eeoure
payment and of thil Indebtedness In &lotion HI OO!ow),
SECTION lit Description of Col!atotal.
1. The securitY lnterett ls granted In the foJiowfng collateral:
a, Desedbe the col!ataral and, os applicable, eheck boxes and provk!'e Information Indicated below,
b.
SEE EXHIBIT
11
A" ATTA.C-Fllil HERETO AllD INCORPORATED HEREIN.
D
D
3
D
The above-goods are to b-eC(ImtJ on: {dascrlbe reel estate; addlt/on;d sheet, tf 1'166dedl
The above timber l$ standing on: (dncrlbe estate; attach addttlona! sheet, If ooaded)
The above mlnetals Of the Hke- !Including on and gas! or e.ocounte will bs 1lnanced at the well head or mine he&d of the well
or mlmdocatad. on: [describe re11.l O$!Bte; attach additional sheet, If needed}
If b, 1, b.2, or b,3 above Is checked, th1s security agreement b to be filed for th& real estate records. {Tha dascrlptlon of the
real estate mll$t ba eufflolontJy speolflo liS to give Mtlce of a mortgage on tha realty}.
0 The Debtor dooe not have an Interest of record: the name of a record owner of the reel estate Is
0 AI! subStl!utea ancT replacements for, accessions, attachmenb, 11nd other additions to,. and tco!v, parts, ar;d equ!pffient used In
connection with, the above property; end the Increase end ttl& unbom.young of animals and pouftly,
E AI! property s!mlklr to the abov6 hv Debtor,
F All proeeeds,products, and profits of the Collateral are lnn!uded, Coverage of produots and proceeds for flMnclng statement
not to be construed as giving DebtGI' .any rights with respect to the Collaterel, and Debtor Is not.11uthorlzed to
soli, tease, or otherwise ttansfer, furnish \.lOder of service, manufacture, process, or assemble the Cohtera!, except In
eccordMce with the provisions of this Security Agreement. Any addltlomtl sheets tlescr!blng tha Collateral, the real estate, or other
matter$ are Incorporated in medtl a part of thla lnstrvrnor.t.
2. ClassifY the collateral under ona or of the fotto'wing Business And t;ommerce Code c!asslfkatlons:
fi}l
Consumer Goods
D
Farm Prodvcte
Equlpm11nt {business U$e)
Ull
General Intangibles
E3
fqufpment (farrn use)
El
Inventory
Investment Property
Chijttel Pep!.!t

Instrument!
E3
LetterOfCredlt Rights
coUnts
'Support Obl)gatloM
D
Deposit
D
on Government Assets
D
Commercia! Tort Claims
D
Sale.a. Of Payment lntang!blaa end Note,
D
Agrlcultutal Uem
And to the extent not listed above as original conateral 90 P,oCQeds snd products of the- foregoing,
. . .
l:SCOOO.f. - 06/22/01
10
Any term used In the Texas Bustness And Co .. Jrce Cod<! (the code'} and not defined 1n thl.s S..
1
.ltv Agreement has the tO the
term In the Code.
a. D If this block Is checked, thl$ Is a pu:chase money seourlty and Debtot will use fUndi adVanced to Purohaso thv Colletvral, or
Se<:u:&d Party may disburs.e funds direct to tha senor of the Collateral. and to purchase lnsurenca on the CollatO;ltal, To tM extent
Debtor uses the l<1an to purchase Collateral, Debtor's repayment of the Loan shalf aj>pfy on.a basis so that-the
portioil of the Loan useCI to purohase a particular Item of Coll,steral shall be paid In the chronological otder the Oebtor pu:ehased th9
CQ!Jaterel.

If MY of the (;<)!latera! 1s give the location of the office where the records concem!ng them era kept Of other than Debtor's
address shown above):
commerclal Tort ClaJms, a subcategory of General Intangibles, means the Debtor's olalm for--'-----------
. against
SECTION llr: INOEBTf.ONESS
This end grant 1$ m.ade.to Secured-Party tQ seo,ure the prompt end unconditional paymentof,and the. fltst and exc!ustve se<:urity
lntet!'St herebY. to Secured Petty B&CUJGS the payment and performaryoe, of, the following {coUootively, the' lnbtedness)l
Any and all k\delitedMss, !labilities ahdlor obllgatlont" of Debtor, or any of the underelgried If more than one, to Secured Party, Jointly and/or
severally, and In any bapaolty, wMther u borrower, guarantor, or otherwise, now Of hereafter owing, oteatedand/or arls!ng, ar.d of
how evklonood or arising, as to outstanding and unpekl. principal, ac<:rued and unpaid Interest, attorneys'. fees, collection c_osts, and all other
sums owing by Dabtor, or any of the unrs!gntld If more than one, Including but not limh!W to
that oertain Real Lien of eyen date herewith by.Atled. Ltd a Texas
partnergbip and made payable to the order of Secured Party in the original principal
and furt1,1er without !Imitation to: sum of $1,300,000.00
A. any And all Indebtedness of:
{lt lndebtedna&s IS not solely of Dabtor) or any of thom H mora than one, to Assignee, Jointly and/or severally, and In any capacity,
whether as< borrower, guarantor, or otherwise, now or hereafter owtng, o:eated and/or arising, end regardless of hoW evidenced or
arising, lrx:todlng, w!lhOut
B. any commercial loan or lndebt<ne.ss;
C. tiny oredlt card or other consumer typs of loan;
D. any lndobtednou relating to checking or savings accounts {ovardrefis, foes, ate,);
E. any Incurred in the wotectlon or maintenance of the collateral securing arw of tueh llab!Gtlea, loans, and
F, any 0;1xpenses lncurwJ In the CQUeaUon of any Indebtedness and/or obUgetfon;
a. e['iy letters of credit andfor indebtedness elisln.g out of, or adv:nrced to paoj, letters. of credit ttensectf9ns:
H. ahy tndebtedn&$S, however, evidenced, y1hether by proml$sory nota, bookkeeping entry, electronic transfer, oheoks, drafts or other
Items, or by any other manner or fonn;
&;fly other lndebted!W.ss of Debtor Md/or of tM po.rsons or Mtltlo.s set forth In aubpa:&{JI"aph A. above to any flnaooltll ln&tltutlon
aH!\Jated with lnternatlonal Sanoshares Corport.tlon, jo!ntly and/or severally, end In B(ly wMther as borrower, guarantor, or
otherwise, now or hereafter owing, created end!or and regardless of how evklenood or erbing;
J, any and all &xtanslon.s, modlflct.tlons, substitutions and/or renewals of any of the above lnOObtedness;
K, a(ly and all costs Incurred by Secured 'Pany to obtain, preserve and enforce tt-ls Security Agreement, col!o-ct tho Indebtedness, end
maintain and presetVe the Collateral JncJU<i'lng without limitation, aD taxes, assessments, attornt.ya' fees and legal expenses, end
expenses of sale;
L. the by Debtor and the Pmohese by Seaured Party of Accounts)
M. the sale by Debtor and th& purchase by Sectrred Party of Chattel Paper;
N. 11io by Debtor and the purchase by Saaurad Party of P6yment lnlaoglbles;
a. the sale by Debtor end thll purchase by Secuted Party of Promissory Notes; and
p, aMY of the foregoing that arises after the filing of a potftlon In bankruptcy by or against Debtor under the Bankruptcy Code, tlven lf
tho obllgetlom do not aCr1Je bacause of the eutom&tlo stay under Bankruptcy Code 362 or otherwise.
To the extent allowed b-i lew, lor purposes hereof It ls Intended that the ltxrebte<ln-ess Include an cla.9&&S of Jndebtodooss, whether llVIdeoced
by note-3, open aacounts, overdrafts, or otl}erwlse, and whether direct, Indirect or contingent, regardless of class, form or purpose end
Including bvt not limited to; loans for cOnsumer, agricultural; bU$Ine.ss of personal purpos;'' . . .
Th& foregoing shall ullder roo Clrcumstrmcesc be limited to the existence or nciMlxlstence of oollateral for such Indebtedness, or the"typa of
collateral covered The Indebtedness does not lnaluda amounts owed pwsuant to a homestetd &qtllty kla'n, ,
and shaft be effacUve only If livered In per$On
either at
agreement Other I most
aotual no.tlce to Debtor, however given or received, shall always be effective given or received".. Except
any notlcti given or made hereto shall be doomed'Sffeotl'la!y given on the date of personal defrvery or, If maned, on
notice Ja deposited In the U.S. I( by Secl)(ed Prirty, .
P.ERFEGTION OF SECURITY INTERESTS.
1. Filing Of Firmnelng S1atement.
(!} t>ebtor hereby author'.z.es St!cured Party to file a Flnanolng Statemtmt an Amended Flnanclng Sta.tement and e ContinUation Ansncln9
Statement {co!leotlvely referred to e.s the Statement"! descrlblng the Conateral.
Oebior hereby Secured Party to file a Financing Statement describing any agricultural othet statutory liens held by
Secured Party,
{ilij Secured .Party shall receive prlor'to the Closrng an official repOrt from the Secretary of Stil.te of eeeh Co!latO;lral State, the Chief
Ex{lcutlve Office State, and the Debtor siate !eacnu defiMd below) !the sos ReportsJJndleatlng that Secured Party's securitY
Interest Is prior to al! other security lnteres'ts or other .Interests reflected ln the report. . .
l!vl Party shall tO;lcatw at Bny time folloWlf19 the Closing an SOS Report lndlc1!tlng that SecUfed Party's security Interest Is prior to
all otlwr :!O;!CI.Ifity lntell!sts or other reflected' In tiN report,
2. Possession.
10 Dabtqr shell have possession of the Collateral, except where expressly otherwise provided In thls Security Agreement or where Se<:u!&d
Petty chooses to perfect Its security Interest by poss(lssfon only, or In addition to the fl!ing of a Financing Statement.
OS/22/01
Page 2 o :'1
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{10 CoUaterel Is In the ponesstonf, , !hlrd party; Debtor wJil }Dill with Secured Partv '- ]tffytng the third partY of S11CU)'(ld Party's
seoutfty Interest lind a Con_tro. Agreement from the third party that It b hokllng til,. .. onateral for the: boiWflt of Partv.
3. Cpntrol Ag.reaments,. wiU cooperate whh Secured PartY In oblalnlng a Control !n form and substance satisfactory to
Secured Party consisting of: _
jl) Deposit Accounu
1
!Ill Investment Property,
(11!) Letter.OfCredlt RJghts, and
(lv) Electronic Chattel Paper.
;4. Marking of Chattel Paper. pebt?r wtll flO! oleAte any cteattel Papet Without piMing ll legend on tha Chettel to Secured
Party lndWat1119 that Secuf!Ui Party has o. S?OIRity llltefestln tffl Chattel Paper., _
SEcnON Rem&.untatlon. Wl!frant!n. aodAgmarmnts.
A. Gen&rlll Representations and Warntntles
. Dobtor r&Pf&aents, warrants and agrees that1 .
(11 Oebtorhas toll power and authority to enter Into this ittlfl Security Agreement has been duly.euthorlzed,
executed and deUvered by Oebtorand constitutes the valid and binding obligation of Debtor In accordahce wflh Its
te/TlW, No oonsent of third patties, a lloonso, avthOrizatlon Of filing Withany govemmental authority IS reqUired to be obtolned or
perfonned In with th& execution, dr;livl.lry, and of thl!l Sewrity Agreement .
I> I
(31
(4)
(51
(51
(71
101
(91
AU lnformaUon:Supp!lod end statemenls made by Debtor in any financial, credit or statement or epplk:atlon for credit
prlor to, contemporaMOusly Wllh or subsequent to thoa execution of this Se-curity Agreement. are and shall be true, correct,
completo, valid, end gonu\ne,
Debtor OWJ\!1
1
or wnl us.e the. proceeds of any loans by Secured Party to become the owner of the free from any set--off,
cla!m, ris_trictlon, lien, aeouilty Interest or encumbrance except thls .security Interest and lleM for taxes not yet due,
No Ananclf,g Stetemeht coveting the Co!!atersl Of fts proc&eds Is Qn file lfl eny public offioe alld Debtor wl!l not permit any
FlMnclng covering any of D.1b_tor'S Collateral or the proceeds thereof to be on file In any public office except as
may be .filed pursuant tq this Security Agreement. '
Debtor shaU provide to Secuced Party, upon Sacuted PartY's requo.st, {!} financial k'Jformetlon, IM!ud!ng but not limited 10 a balance
shaet, Income statement, -Statement of cash flow, end such other flnancla! Information as may be requested by Secured Party; [II)
an appraisal of the Collatereh nm tax recslpts; fl\1) evidence of lnsurarn:e, and M any other lnformatf.ort raqutred by Sacvrad P;)rty In
conMctiQn with the or1ha Cl:l!latijfal.
Debtor will nOt usa the Collateral or permit the Collateral to be us-ed 111 violation of any statute; ordinance or other law or
Inconsistently wlth tht terms of any policy of insurance the-reon;. and Debtor wll! permit Secured Perty and hs ag&ntlJ,
repre.sentatlves, and to examine the Collateral at all reesonabla tlmas, anQ for such purposs, Secured PaTty may enter
upon or Into any premises where the Coh11ter111 may 00 located Wllhout being guilty of, and/or Mid !Jable for, trespBSS. Debtor wm
furnish 10 Secured Party upon reque.st en pertinent Information regarding the COI!atual
The Collateral ShaH remain ln. DebtOf'a. possession or control at an times at Debtor's rJsk of f.oss unleu Secured Party has takan
po$$esslon of ,the Collateral, and be kept at Debtor's address sot forth ebove wMr!' Sw.sred Pany may Inspect It at 8T\Y time,
except for Its temporary removal In connection with lt11 ordinary use or unless Debtor notifies Secured Party 1n writing and Secwed
Pany consents In In advance of ttsremoval to enotherlocatkln,
Debtor shall pay prior to delinquency a.!l taxes-, chargesJ liens and assesSments a\ja!Mt tl)e Collateral, and upon Debtor's falh.Ke to
do so, Secured Party at Its option, may pay eny of them and shsJlbe the sole of the legality 01" valldl!y thereof and the
!!mount n.ecessary to di-scharge the same, Such p11yment &haD become part of the Indebtedness seoured by this Security Agreement
and sheQ be paid to Secured Party by Debtor lmmedl&tely and without. demand, with Interest thareon at the maximum rate allowed
by epplfoablelaw.
Hazard Insurance must be furnished at all times for the fuU amount of the Indebtedness with respect to ell Collateral (including
coverage for all matarleb and a.qulpmant) against rls\s of fire, Windstorm, Hurrie&oe rrt the Collateral b written 100 miles of
Gvlf Collost), Han and Co!la.p-se Ooolvdlng rx>5t of debrb removaO and such other rtska as Seovred P.my may tequlre. loofudlng
standard extended coverage. Such lruurance policies shall contain such tenns, be In a form, for a period and be written by
companies .satbfactory to Secured Party, Federel flood Insurance ts also required !n a geographic areas that are to tuch
toss, The policy shaH also contain e standard mortgagee's endorsement proViding for payment of any f.oss to secured Party, All
poflcm of IMur11nce shall provide for ten deya: written minimum o11nceUatton notice to SllCI.II"l!d PartY.
Evidence of coverage must be a copy of the orlglnal poDoy and loss payable ctapSfl, Certlffoate.s or letters of coverage w\U not ba
accepted,
Seourod Party ts euthorl.ted to eot as sttomay..Jn.faot for Dobtor ln obtaining, adjusting, settling, and osooollng wch Insurance and
tmdorslng any drafts drawn by Insurers ot the Collateral. Secured Party may appty any andfor an j:l:roceads of s\1Ch insurance, whkh
may be received by It !n payment of the Indebtedness sooured thereby, whether such 1.$ cutlantly or not, Secured
Party reserves the right l<r purohasa Insurance !whloh provldu only protection tor Party) end add the
premium tot auoh tnsuraMe together with Interest et the loan pre-maturity contract rate to the balance of the loan, This ptemlum Is
due upon demand, or may be paid In full at any 891eed time. 'i'ho lnte1est premium ts written by a company authorized to
transact business In the State of Texas at lawful rates not fixed or approved by the St{lte Board of lmuraooe,
. . . . .
Se-Qured In hs able discretiOn and withe vi o!>Xgatlon on Se'Gured Pe'rty 'to do so, may adva'nco end pay eums on behdf and fer
the benefit of Debtor tor costs necassary fQr the protection and preservation of the cotlateral and other costs that may be
appropriate, In Secuted Party's sole discretion, Including Put not limited to Insurance premiums, ad valorem taxes, end attorney's
'fees and legal costs end oXP.anses. Arry sums wwon may be s-o pah:l by Secured Pilrty end all sums paid tor lnsuranoe premium-a-, M
Including the cosh; and tlttl)fney's tees pe;kt In any evit effectfng nkf Collaterelahal! bosr lntoreat from the
dqtes of such payments at the loan contract rata app!led to the unmatured principal balanc-e end shall be paid by Debtor to
Seol.ll'od Party UPOn demand, and shall be emed a pan of the debt end recoverable liS suoh In ell especte .Ar.y sum to be
relmburnd shall be by this Security Agreement.
110! Debtor shaH, at lts own exPense, do, make, procure, exeoute end dellvor aot$, things, writings aM esswan<:et as Secured Party
may at any time raquut to protect, assure or enforea ltt> Interests, rights and remedle,s me.ated by, provlded In or emanating from
thls Security AgraerOOnf.
111) Debtor shall not lend, rent, !e11se or oth&twlse clspo.se of the Collateral or eny Interest thii!raln except as authorh;ed ln this Sewrlty
Agreement or In WTftJog by Sooured Pany, and Debtor shaU kocp the Colletetal, Including the proceeds thueof, free from unpafd
eharges;lnoludlng taxes, end from encumbrances an<! security ln.tere$tS oth!ir than that of Secured Party,
f12J Debtor shaH sigh and exetute alone or wfth Seour&d Pany any Financing Statement or other document or procure eny document,
and pay aP costs, neces5BI"f to protect the security lntere5t vnde[ th.Js Securhy Agreement the rights or lnterastll"
th!td persons, Debtor shall pay the of Uen eesrth!is certificates and all fU!ng fees., continuation fees, and fees for
tertifloates of good standing and other Information required by Secured Party.
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10
1131
{14)
(16]
(16}
(171
1181
{19)
{20)
Debtor shill! et off times keep tM; Co!lat&!'al and hs separate and distinct. -. 11 other property of Debtor and sha!l ke"ep
aocul'!!lte and complete records' ,c: .e Collateral and Its proceeds. Debtor shall pte sen:_ !\e Collateral aM p'ay all costs necessary to
do so, \ncfud!og (but not Umlted teed, rent, storage eO$tS, and eXpenses of sale.
If Secured Party should at anY time be of the oplnton that the Ct!Uaterir has declined or may decline In value, or Ill otherwise
1Moffic1ent to 8dE!quately "cure the lndebtedooss, or should &lcuted Pllrty d.eern Itself Insecure as to payment of the Indebtedness,
then S(lcured Patty may cell for additional property to be pledged and/or (:overed by thts: Agreement satisfactory to Secured Party.
If any Collateral or proceeds lrn:ludEI obUgatlol'l$ of third pert!as to Debtor, the wmsaotlons 0/&Stli\g those obllgatlons will conform Jn
all respects to appllcabte state and federel consumer credit
In tOO event Debtor or any other person or pureons .seeks to- enJoin &outed Peny from taking eny antlon In connection whh the
JMebtedness ot the $fllotcement of Secuted Party'$ lights In the Co!!ateral, Debtor hflreby eg!eMto give written notice to the
President of Se<:ured Party, at the address of secured F>any set forth In the first patagrepti of this Security Agrl!ement, {)r aueh
other person or address as Seoured Party may designate Ill writltlg to Debtor, priot to seeking any suoh lnjunotlve relief,
Debtor shall lrtdemOify end hold harmless Seoured Party from and against any and an claims, !ossa's emt llabltltles growing out of or
resulting from th!$ Secvrlty Agreement !Including, without limitation, enforcement of this Sacurlty Agreement), except claims,
tosses or RablUtles resulting from the gros& nogllgenc:e or wlUfu! misconduct of Secured Party. Oabtof'agrees, upon demand, to pay
Secured Party the .amount of any and all expanses, Including, but not ltrnltcd to, the fees of Its counsel and of
any er.d ag<Jnta, which Secured Party may lnour !n connii:ctlon with (e) the: prepAration, exeGlrt'ton, filing, recording
or of tfile 5(lovrity "Agreement or the obtaining of advice from counsel with to Its tights end remedies unOOr
th!s A9r&ement, (b) tM custody, preservatiOn, uie: o/ operation of, or the seta of, co!!ectkln from, or othu roaHzetlon
eny of tha CoUatere1, (ol the exerolsa or of any of the tights of Secuted Party heteunder, {d) tOO dafense by Securad
Party of any lnJuflGtlon Proceediflg to the lndebtedneaa or tho eonatttral, or [a) fa lime by Debtor to !Hlrform or observe
imy of tho ptovlSIOI'\S heroof. agrees to pay Interest on any expanse 01 othllr sums dve to Secured Party hereunder (seva and
lnsuraMel dvu are not paid when due at a rat.e Per annum to the highest ret\'1 permitted by apf11cable lew.
As. eQditlonel security for the lndilbtedll(lsS, Debtor hereby IIS$.lgns, pledgee and grants to Secured Party a securitY Interest. a Hen
ond oontractuat right of set-olf In ar.d to ell of the Debtor's money, cred!ts, a(;Counu, wcvritle.s, and/or other properly
now In, or at ll!lY hereafter com1ttg within, the custody or control of Secuftld Party or any trtemoor Bank 01' braMh _Benk'of
Bane!heres Corporation, whe_ther held In a generbl or special account or deposit, or for or otheNIIsd, Every
auoh secUtlty Interest lind right of satoft may ba exerobad whhovt defnand or notice to Debtor, No security Interest or right of set
oft shell bo <Warned to have been walvad by any act or conduot on the part 61 Seeured Pelty, or any fal!ure tQ exercise sooh right of
set-off or to ttnforce security Interest, or by any delay In ao doing. Every right of eet-oH i!nd lnterut shall cont1ooo In
full force and effect until such right of setoff or eeovrlty Interest Is speoiflcally waived or released by an lnswmant ln writing.
executed by Secured Party. The forbgotng Is In addition to and nOt ln ]leu of any rights of set-off alloweil taw.
Debtor shaH assist Scoured PartY In oomplylng with the Federal Assignment of Clelins Act (end any successor statutes) and similar
laws to enable S&eured Party to beoonle: en assignee under such Act end otherwise compty with such laws. Debtor pressrve
the liability of all account debtors, obligors, end secondary psrlkls Whose obligations eta part of the Collateral. Dabtor shaH notify
tha Seo\li'ed Party of any change ooourrlng In or to the Col!ateral, or In any fact,or droumstances warrented or represented by
Debtor In this egreament or fumlshed to Sacurad Party, or If SfiY Event of Default. occurs.
D6btor wUJ Mt a !low the Collateral to be effiKed to reo! estate:, except goods klentlfJad herein as fixtures,
(21} AU extended or renewed note(s) wl11 be executed on the date of ttl! otlglnel note(s).
122r D<!btor shalt comply with all environmental taws emt to the Co!!a!erel end tlv.l prsmlses In wh.loh the Co!!aterat
Is locatad shall nollfy Secured Party upon receipt of any notke or other Jnf{lrmatiOn as to MY environmental hazards or- violation
of auch !e's. Secured Petty may Inspect all premls6s In which the Col!aterol Is located and the cOnatural u to hs and their
compliance with Indemnifies and holds harmless Secured Peny for any bfl!ech of the_ foregoing et.d for all
tosses, costs, fines, damages, Including court costa end e.ttorooy's fees, lneuried by Secured Party to O.efend Itself, or to protect or
.preseiVS the CoJMeral agalnst env!roiVTlentel risks, huerds, fines, end othtlr ctaJms relating to the Collateral.
(23) Wtthout prOvkftng Secured }'arty with at lttast thirty (30) days prior written notJce of Debtor'e Intention to d& so, Debtor, until the
indebtedness Is pakllh fuU, agreu th11t it wlll nou
fl, In one transection !X 11 series of related transactions, merge Into or consoDdeto. with any other entity, sell ell or substantially ell
of Its IISSats, or In sny way Jaopl!lrdtza Its corporate ax!sten<:e,
b, ohenge the state of Its lrn:orporetlon,
c, change Its corporate name,
d. oh!lnga the addro.ss end/or location of Its Chklf ExecutiVe
e. file a UCC1 Amendment torrn, Bnd/or
t, fils a UCC1 Terffilnetion form.
(24) Dabtor has ttle riak of Joss of the: Collateral,
{25) Srioured Party has M dutY to c:otteot any lnoome aoorulog on tho Col!ateral or to preserve any rights relating to tha
B. Special Representations and WerrMUea;
Debtor warrants and agrees that:
Ill
(2}
131
If tM Colf&teral lnc!UOOs lovontory:
(a) Debtor wlH Immediately notify Socurod Party of the disposition of eny Inventory and at Debtor's expensa wiU eltMr assJgn to
Secured Party a first-priority security Interest' In any resulting account, chattel paper, or ln.strunent or dellvor to Secured Party
oash In th& t!mount of the sale price.- Debtor w!U not S(ll!, lt16t9, or othorwhe :dispose. of any CoDateraJ eKcept In the ordln.ary
couf'l;& of without the prior written consent of Secured P11rty .
lbl Untl! default Debtor may In the ordltta.ry courss of busineSs, sa!!, leMa or furnlah under contract ofsl'lwlcaeny of the Inventory
normally held by Debtor for suoh purpose, P{OV!Oed, however, that such use of -the lnv.entory shall oot be. lrn:lonslstent with any
other provts!ons of thla Secuifty Agrtiament or With the terms or oooditlons of any policies of lnsurenpe th6roon. A sale In the
ord'U\t!ry course of business does not Include a tran.!(er-ln partial or total satfsfa.ctlon of a Oebt,
If the Co!!aterallnoludes accounts:
!e) Each aooouni In the Co!laierat wlll repreaont the V(likf, loga!ly enforOfJab!e obllgatlon of third parties and wlll not he by
eny lrlstrumant or chattel paper,
(b) lhe office where Cobtot keeps Its re-cords concerning accounts, If eny, ls thll address of o.>btor set forth at the beginning of
this Sectnity Agreement.
If the Cotla!eral lnclude5" Instruments, chattel paper or documents:
{a) By &ellvarlng a copy" of this: security Agreement to the btoker, sel!er, or other person In possession of Collateral that ls chattel
paper or document, Security Party wll! effectively notify that person of-Seout$4 Perty'slntl!fost In the Collateral. Delivery of the
oopy of the wU! abo romthuta Debtor'S lnstruotkm to. denver to Party or other
evk!Mce of the Collateral as soon e.s It Is evel:leble, Dfftrtor wmtmrriediately deliver to &cured Party &U chattel find
documents that are Co!lateref in Debtor's If that 'Collateral Is hereafter acqulrsd, Debtor wlfi dellvGr It to Sactned
Pertv Imme-diately folloWing acquisition and either efl4otse 1t to Secvfed Party's order o; glve Secur)XI Party appropriate
executed powers, If any ln!tronwnts, chattel paper, .money or monies, or. dowments ere, at any tlma or times, Included In the
IBCOOO& 06/22/01
Page 4 of 9
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141
Cateral;whether as prt{ or otherwise, Debtor will promptly deliver the .... e to Secured PIJrty upon the rec11ipt thereof
by Debtor; end In fiOY event promptly upon demand therefore by Seeured It nocessaty, aU Collateral wl!f either be
endorsed to Se'cured order or ac.comppr'!kld by appropriate exeo\.lted poworl!i,
(b) By means satisfactory to Secured Party, DebtM has perfected or will perfect a securltY fnterest In goods cOvered by Chattel
paper, If In Collateral,
If the propilrtv covered. by 11 Certificate of lltkl: If any ocrtlflcate Ct tltkl ot slmJiar docurMnt 1s', at any tfme and
pursuant to the Jaws of any jurlsdk:tlon, Issued or outstanding with. respect to the Collateral or any part thereof, Debtor wilt promptly
advise Secured Party thereOf, and Oebtor wll! promptly <rause the Interest of Seourod Party to be property noted therepn, and If any
certffloate of title or slmJ!ar document Is so Of outstanding at the time this Security Agreement Is executect by or orr ot
Debtor, then Oebtor sM!I have caused the loterest of Secured Party so to have been properlY noted at or before the time of such
oxecutton; and Debtor wl!l promptly deliver to Seoured Patty SfiY &Uch .e&rtifloata. of tltlp Pf similar tlocpmflnt Issued or
any time respect to $UOh. Co!!aterat.
(5) If Collater11l is or may b!:l-come fixtures on property OOscrfu.ed herein: This Security Agreement, upon for recotd In
tha real property records Gf the county whO rein such fixti.R"es ara altu11tad, shell a! so aa fl!9d as a fixture
(!ling In with section 9.4021e) of llw 'J'exes a!J.Sln&u: end Commtlroe C<lda upon such of the Co11ater111 whlch Is or may
become rtxturas,
(6) Debtor has rigJ:!ts or the power lo transfer tha Cl;)!leterel end ite title to the Conataral Is tree of an adver$.'e clsim11, !!ens, securitY
Interests end resirictloM on transfer or pledge except as oraated by this Seourfty Agreement.
(7) AU coltetertll COl'IS!stlng of goods Is located solely In the states end/or states previously desfgn8ted imd warranted by OebiOf to
SecUJlld Party,
181 Debtor's:
(I) chief executive offlte Js located In the previously dsslgted and warr{l[ltBd by Debtor to Seo!Red Party;
UO state of Incorporation Is the state previously designated and wartanted by Debtor to Secured Party; and
(til) exact. legal name Is as eet forth In the flret paragraph of this Security Agreement ; .
SECTION VI: EVENTS OF.OEFAULT,
Oabtor shell be In default under this Secwlty Agreement upon the happening of any of the following events or C(fn<fltlons lflereln cm?ed an
of Default"):
111
(2J
131
{4(
{61
(81
171
181
191
!101
The ftllture by Debtor or any other liable pi!rty to pay whan duo any of the lndebtednen either principal ot Interest, or any Other l!Um due
undsr the terms of any Instrument l!vldenclng the Indebtedness,
Default by Oabtor In the punr;tual perfMmance of any of the obligaUon!i, oovenents, tilm\s or ptovlslohs co"ntained or referred to In thla
Agreement. '
Any warranty, representation, or statement corltalned In this SecuritY Agreement or made or furnished to Secured Peny by or on behalf
of Debtor or eny oth!lf pa(sort or pert'{ In CO/WICtlon with thls Secwity Agtl(lemerH ot to Induce Sec tired Party !O make tM
[descrlbad In S!!cllon ll!)provos 10 have been fa!$e In any r6$pect made or fvmlshed,
loss, lheft, substantial de-strucUon, sale (except as authorized In th!a Seovrlty Agraament) or encumbraooe to or of BflY of tM
CoUsteral, or the mBklng of any levy, selwre or attachment theroof or thereon,
Oebtor's death, dissolution, termJrtatlon of existence, Insolvency or bUl!lness tenure; the appolotmenf of a r&ealvei of all or any part ol
the prOperty of Debtor; ail assignment tor tJ:l-e benefit o( creditOrs Qy Debtor, the cslllng of a meetln{l of crodltots of Debtor, or the
commencement of any proceeding undef any or Insolvency by or Pebtur or llnY guarantor, surety'" endorser
for Dtlbtor; IX the Ol<currenoe of eny of such evtJnta dtulcribed In this part {51 as to a.ny or paity l!able for tOO payment of the
ob!lge.t!ons, or eny portion thereof. . . '
Any statement of the flnanoJal con<lltlon of Dobtor or of any guetantot, Surety or e!'ldorse.r'f any of the /ndebtedm proves to
be fSI$tl,
'rhe CoUataral beCQmes, In the IOOgment of Secured Party, lNlsatlsfaotory or Insufficient Hl cherecter or velue.
AhY maker, guarantor, surety or endorur uodet or with respeet to tt;e lndebt$dness defaulte In arty obllgatlol) or lfabl!lty to SaCI.I1Gd
Party,
ilia occurreno8 of any enviroMlOOta!ly hazardous .spJU, dk!chllfge or other slml!ar event the Collateral or the
premises In which the Collateral is Joceted,.Wherher euoh OQCVTS on suoh preri'tlus cr on othe(
.Debtor, oc any of them, or any {IUllr&ntor, fells to timely deliver BJ1Y. 11nd aR flnenclal 'statements, Income tax retuma, cash flow
lhformatlon, belam:e sheets, accounts ricefvabla reports, or any other business, tax or flnenclal information requested by Seoured
Party,
SECTION VII: SECURED PARTY'S RIGHTS AND tu:MEOII!S,
A. General,
111
121
{31
{41
!51
Secured may exercise Jhil fofiowl119 rights an<.f rerMdle& either baforo or aher an Event of Dofault:
Saoured Party may take contfol of eny proceeds of the Collateral:
Se<lurad Party ml!y any Collateral In Seovred Party's pouasskm to any Debtor, temporarily or otherwise.
Secured Party may control of any fund's generated by the Collateral, such as refunds from and prO! ads of in.siJTanco, and reduce
part o.f the Indebtedness 80C(Ifdlngly or permit Debtor to use such funds to repelr or dam&ged or destroy!XJ Collateral
coveted by lnsure.nc.a, -
S9cured Party mayreque.st Debtor from tlrtte lo tlme, In $e()uted Party's d!scretfon to taka 110Uon and to execute any Instrument
which Secured Perry may deem necessary or advisable to accomplish the purposes of this Security Agreement lndud!hg, without
limitation, (e) to ask, coD&ct, we for, recover, ampol.lfld, receive and give eoqu!ttance and receipts for monies due and to
, .beoomo due undet or In respect of a.ny Cottateral; (bl to recclve, endorse aod collect any dr11fte oc other Instruments, documwts and
ehettel paper In conneotl9n with the precadlng sot!ons: Co) tc. file eny claims or tak.e any action Institute any proceedings which
Secured PartY may deem necessary or desirable for oollectlon of eny of the Collateral orotherwlse to enforce 11s rights with respect to
any of the Collateral, and (d) to Ollmplete aod sign on behalf of Debtor one or more flMilC!ng 1tetements penalnlog to the Coll!teral
and file thll same In an appropriate klcat\on, 'TM powers eonferrad on Secured Party !w(eunOOr era solely to protect Its lnlerest In the
Cc!laterel and sheD not Impose arw dvty upon Slleured Petty to exerotse env powers. Oobtor'e appointment of Secured PartY as
Oilbtor's egent Is coypled with an lowest and will svrvlve eny d!silbrutv of Debtor.
This Security Agreement, Secured Party's rights hereunder end/or the Indebtedness hereby SSCIJilld may be es.slgned In whole end in
part from tlnw to time, and In any such case SecvredParty shall be fully dlscherged from all vilth respect to the Conateral
so assigned and the assignee shaH be entitled to ell of the rlghta, .privileges and remed!.es granted It\ thls Seci.Hity Agreement to Secured
Party 1o the extent tha same are assigned, end Debtor wiD ae.sert no claim or he may heve against Secured Party against the
assignee, except those granted In this Security Agreement. In edditJ.on, Debtor wafves and will not assert against any cJolms, defenses
ot set-offs whlch Debtor could eoolnst Secwed Party except defenSes which c!inoot be W11lved.
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;
I
'
10
(6)
(7)
(8)
(91
Secured Perty may enter upon De:,::-:,.s premises at any reaSOntlbltl llfTNI to Inspect tl,: end books and records
pertelnlng to the collateral, al\d Oebtqt'shall assist ttwl Secured Party in making any touch /n,pectlon. ,
Secured Party may notify the account debtors or obligors of any 8ewuf\ts, cliattel paper, negotiable lnstn.Jments or other evidence of
Jn(hlbiedness remitted by Debtor to SecUred. Party as proceeds to pay Seevted Party directly. Secured P8rty may CQntact account
debtol'$ directly to verlry Information furolthed by Debtor.
Secured .Party may require &dditlon!ll Collateral or rejeot 88 unsatisfactory any property hereafter offered by Debtor ea Co!!eteral.
secured Party may deslgnpte, fl'om time to tlme
1
a oertelrt percentage of the Coltatetal as tha loan value end requlre Debtor to ma!ntaJn
the lrtdebt(K!Mss at or below such pert:entage,
(10) Secured Party may pre:sent for conversion to cash anY Instrument or Investment security or a combination thereof. But senured Party
shaft not have any duty to present 'for converelon.any lMtrument of eonateral In Its urOOss It shs!l have received from Debtor
detaHed wrftten lnstruatlons to that eHeet at a tlme roasoMbly fer In advance of the finfll conversion date to make suoh conversion
posslli(e. '
The foregoing rlghts and powers of Se<:ured PartY will be In &ddftlon to, and not a limitation upon, any rights and powers ot Secure-d
Party 9Jrl!n by.law1 elsewhefo<J In thls Security Agreement,. or otherwise.
(11) Seou.red Party has .no ob!lg!itlon to attempt to satisfy the O_b!lgadons by ool!eotfng them from liMY other person nnbkl for them end
Sectit6d Party m"ey modify or any ooUateral provided by any other person to s_ecure any ot the ObllgatloM, ell without
alfeotlng Secured Party's rJ.ghts against Debtor. Debtor waives any right lt me.y have to Secured Party tO pursue any third
pe(GOn for any of the Obligations.
{12) Seollfed Party may comply with any eppUoable or fodeullew.tequlremerusln conMotlon with a'Cit$posldon of tM CoDeteral and
oompllanoe wlll not be cor.skkred adversely to effeot the com,merclal reasonableness of any sale of tt! Collateral.
{13) If Sncure<l Party 'sells any of the Collateral upon cred'rt, Debtor villi be credited only with payments actually me de by the purohaser,
reaeived by Secur_ed Party end applt&d to tM lodebtedoess of the Purchaser. In tha event tM purchaser. to pay forth& Collateral,
Secured Party may rasa!! the Collateral and Debtor !heU bG credited with tt;-e prooeeds of th!l safe.
(15} Seovted \'>arty have no obrtQatJon to marshall assets In favor of Debtor, or against or In payment of:
(II' the'Note,
{lij .a'ny of the other Ob!lgatJons, or
(Ill) any other owed to Seewed Party' b'([)(lbtor or any other person.
(16) This Security Agreement bll\d and shatl Inure to the baneftt of the heirs, legatees, axecutors,-adrnlrtlsuators, suecessot! end
assigns of Secured and shall bind att persons who become bound as a debtor to this Security Agreement.
{17) Seaur-ed Part'( does not to any assignment by D!lbtor oxeept es oxpre!Sly provided In this Agreement.
B. Remedies In Event of Default
During the exl$tence of any EV$nt of DefauJt, or tn the event Secured F>arty deems ltsa/1 lntecure In the payment of tM lrnfehtedneu, Socuted
PartY may deci,are the tmpald prlnolpal and unpakl end accrued Interest of the lndebtednets Immediately dua ln whole or !)alrt, the
Indebtedness, an<l/ot exetc!!(l any rights and re{Jledlos grant&d by tha Texas Business end Commert:lal Code or by'thls Security Agreement,
Including the fo!Jowlflg:
(11
(21
(31
require Debtor to deliver to Secured- Party ell books end records relating tO the Co!leteral;
require o6btor to asllemble the CoUatereJ and meke It avaDeble to Secuted Party at a place reasonably convenient to bo.th parties:
teko poasosslon of any of the Colleterel and for this purpos& ontor any promlses whllf& It Is looat&d If thls ctm be dono without braaoh
of the peace and wlll fljlt b& gU!Ity of, end/or held llshle for, trespass;
{4) seu: lease, or otherwise dlspos& of eny of the CoU&teral m accord with th& rights, remedies, end duties of a Secured Party under
2 end a of the Texu Buslooss And Commerco Code ettar glvlfl9 nodce u required by those chapters; unless tha Collateral
threatens to decUoo rapldly In value, ls perishable, or would typlcaRy be sold on a recognized market, Sor:ured PartY whl glva Debtor
reasonable .of any pubic sale of the Collateral or of a time attar whklh It may be otherwise Ellsposed of without further notk:a to
Debtor; In thl$ notice wth be deemed reasonable if \J. b ma!led, postage prepaid, to Oab'lor at the arl<lress specified In thlt
agreement et Jeut ten days before any P'JbiiO sale or .ton daYJ; b<tfore tOO time when the Co!Ja(oraf may be dlsposed of
without ftuthnr notlco to Debtor. Debtor authorizes Seoured Party to dtsclelm or modify eny end ell Wa!'l'antles set forth In Section
9.01 Otd) and stipulates and agrees a d!s<:lalmer end(or modltlcatlon. wm not render the sale commercially unreasonable.
(6) sucrender any lnsuraooo policies coverlng Col!atl'!rel end racelve the premium:
(6) apply any proceeds from d'JSpOritlon of the Collateral after default In .the manner specified In 9 of the 'Texas Business And
Commerce Coda, InCluding payment of Soourcd Party's reasonable attorM!y's fe11s end ooort exponsee;
!7) It disposition of the Collateral leaves the lndebtedne.u unsatisfied, oollect tM deflcleMY from all fleb!e pef1le$. Expenses of reteldng,
bokllng, preparing for sale, seUing or the Uk.e shaliiMlude SeoUflld Party's reasonable attomey'e fees and legaJ coste and/or expenses,
11nd Debtor Bgtef!S to pay suoh costs, expgns&s, and feee , plus Jnter8$t at the moxlmum rete allowed by app!loab\e law:
IBI Secured Party may retain ell or part of the "Collateral In full Mtd/o; satlsfaotlon of the lndabtednes6 pwsuant \0 Saotlon 9.620 of
the Texa.s Business And Commerce Code;
(91 Secured Party may: without demand or notice of any kind, eppropthlte end epply toward the payment o-f MY sums then owing to
Secured f>arty end In such order of application as the Secured Party may !rom to tlms elect. l!lny I:Jt6pert'(, halanclls, cradlts,
deposits, acool1f1ts or of Debtor which for any purpose ls In tt1e possession or control of the S!!oured Party or any member Sank,
branch Bank or depository klstltutlon of fntetnatlonal Bancs.hares CorporatJon; and/or
(101 Secured may'remody any.dafsu\t without walvlr.g the default remedied and. may waive any dehmlt without waiving any other
priOr or def11utt, .
SECTION VII!: ADDITIONAi. .
(11 All notices end other oomrnunloetlons to Secured Party hereunder or In henmlth shall be to have been given when
by Secured Party In writing at the address flre-t shown hereinabove. Any notice ot demand or other eommuo!oetlon to Debtor
hereunder or Jn conneotlon herewith may be given and shall conOJusively be deemed and considered to have been given an<! recetved
upon the deposit thereof In writing kl tha United States Men, duly stamped aoo addre-ssed to Debtor either at tlw street address, the
shown hereinabove, or at the me1llng address, It any, glven by 11nd/or fur P&btor at the beginning of this agraemenJ tor at such
other ad<lfess as may have lx!en designated most t(lcantly In wrlth\g by Debtor to Seouted PartY): provided, however, aPI!,lal notlc(l to
Debtor, however given or received, shell always be effeotlve when given or rece!ve<l.
. . .
{21 A copy Of thls Saourlty Agreement or any nnanolng statement covering the Collateral Is sufflolent end may be flied as a flnencl09
steteroont. lnformatlon concerning this Interest may ba obtained at tiW officii of SsC(Jred Party shown ebov11.
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{3) '11Ys securitY Agreomont ,;;ay only or limited by an agreement-In wrltlf'l9.
{4} This security Interest shall neither nor be afflicted by any otherourlty for.eny of- the Indebtedness, t..\11ther exteJ\Sions of 11nv.of
the ln<le}ltedneu nor.releeses of any of the Co!laterel sha.ll the valkll_ty seotJrfty Interest wit-h reference to any third party.
Addltlonsfly, forec!oture of thh secUrity Interest by lawsuit dq.$s not Omit Seovrod Potty's remedies, the right to sell the
Collateral under the- terrm of thl!i Seotyity A9fe&fm!nt, &cured Pl!rty shan have the fiilht 'to exercise -elf raffiedles at the same or
dlff!Uent -times and M remedy shall bo e defense to eny other. SeoUfed Party a hall have a!! rights and remedies granted by Jaw or
othsrw!se fn addltl?n to thOs.e provide<! ,In thl$ Seourlty Aarooment:
161 Sel.lured P11rty n'IIIY remedy any default wltlut waiving It: No delay by Secured Pl!rty In exertl!slng Its rights or partiany exertlls!ng
rights or remedies shall waive further exercise of those remedies or rights. The fallute of S&Wt&d Party to exercise any remedies or
. rights doeS not waive subsequent exerctse of 1h<l$e tell'l(!Oies or rights. Any waiver by Secured. Party of any default .shall not wBivo any
further defaull. Seoured P.arty may reffiQ<iy eny dofeult withoLrt waMn<i! it, Secured Psrty'; walver of arw-rlght In tills Sacurl{
Agre&ment or any default Is bfndlng only ff In writing. , . .
. . . .
16) Debtor end Socursd Party intend thrt the kK!ebtedness ahaU be in with USI.IfY law&. If at a fly time. Interest
contraoted for, charged or received lllld6r any .seclmd by thi-s Security Agreement or otherwise ln cOMactlon with th:s
transection would be usuriou; undr.r appl!ct!bla Jaw; ihen regardle$!1' of 1he provisions of thl; Security Ag1eament or any Other
do<:umems or ln&truments evidencing, securing or otherwlsa execvted In connectiOn with any Indebtedness secured by this Sec-urity
or any 11otlon or 11vtmt Qnchxling, without nmltatlon, prep11yment of prlndpal under the Note or of matUrity by
Secured Pa"rty).whk:h rMY occur With respaot to the Note, It ls agreed that all sums_ determined to b$ usurious shall be Immediately
crcdlt&d by SeC\Irad Party. to Debtor u.o pi'lyment of principal under the Note or ff the Note hall already been.pa_!d, lmmid!etely
refyode<;l to Debtor. Afl compemaHon which consll!utu fntere$t un4er applicable lew Jo connectlo'n with any lndabtadnass> saourad by
this Agreement shall be amortized, prorated, .allocated, and .spread over til$ full of time any Indebtedness Is owed by
Debtor, to tho greatest oxtent perm!ulble Without exceeding the appllcab!e maximum rate allowed by applloabkl Jaw In effect from tim&
tlmedutlng stJch parlod,
. .
(71 Secured Party may perform tnY obligatiOn which DebtOf taU& to perform and Debtor agran on demand (o reimburse Secured Party
Immediately for tnY "urns so paid by Secured Party, Including attomeys' fee; and other ltgel ex_penses, plus Interest on those sums
from the dates of payment at tl"ra rate stated irt the Notefor-matured, unpt!d amouilts. Any wm to be reimbursed .shall be sacuted by
this Security Agreement. (See Seotton.IV, t9) for Insurance reimbUrsements},
j8) Thls-SeciRity Agreome.nt ls belng executed and deivereP aM Is Intended to be parformed In thb state of and shaiJ be
and enforced In eccordence with the lewd of the State of Texas, to tOO extent that the Code provides for application of the
law of the Debtor States. When th& oontext require-s, llOWlS anq pronouns the plural. The rights of PartY
under this Security Ag1eement shaH Inure to the benefit of Its s\1\lcessors eod eS-S!gns, Any aS-Signment of part of the.fndebtedness and
delivery by Secured Partv of any p6rt of the Cotlateral wm fully lfuoluuge S&owed Party from any &M aD l'tlSponslbilltY for that portion
ot the. Col!atera!. Debtor's lndebtedMSs under thJs Security Agrnment shall b!nd Debtor's perS011el representatives, auccassora end
ess!gM. If Debtor Is more than one, e!l their ftlpresentatlves, Wsmmtlos end agreements are )oint and several. If any part of thf.;
Security Agreement Ia unenforceable, the of suoh pro11lslon will not affect the enforceablllty of any other Pf'oviston
hereof and al! other provlsloi\S wl!l tHJnstltute valld provlsloM
SECTION IX: ARBITRATIOU- iHI! PARTIES FURTHER AGREE As fQLLOWS;
(a} ANY AND AU .. CONYROVERSIES BETWEEN THE PARTIES SHALL BE RESOLVED bY AFIBlTAAiiON IN ACCQRDANCE WJTn THE
COMMERCIAL ARBil'RAT10N RULES OF THe AMERICAI'f ARBITAA1l9N ASSOC\ATION)N EFFJ;CT AT THE TIME OF }'/Lif.!O; THE.
COMMERCIAL ARBITRATION RULES CONFLICT Wl:rH THIS PROVISION, AND IN- SUCH EVENT THE TERMS OF THIS J>hbWSION SH(U.l
CONTROL TO THE EXTENT' OF THE CONFUCT. ANY ARBITRATION HEI1B.INDER SHALL BE SEFORE.AT LEAST THREE NEUTRAL
ARBITRATORS ASSOCIA:tED \YITH.:rHE AMERICAN ARBITRATION ASSOCIATION AND IN' ACCORDANCE WITH THE COMMERCIAL
ARBITRATION RULa; .OP TH!lAMERICANARBITRATION ASSOCIATION. FAILURE OP ANY ARBJTAATOfl TO DlSCLOSI! All FACTS WHICH
MIGHT TO AN OBJECTIVE OlJSERVER CREATE A REASONAJII.e IMPRESSION OF THE ARBITRATOR'S PARTIAUTY, ANDJOR MAtaiiAl
ERRORS OF LAW SHALL B5 GROUNDS (IN ADDJTION TO All. OTHEnSl FOR VACATUR OF AN AWARD RENDERED PURSUANT TO THIS
AGRIDI.ENT.
!b) THE AWARD Of THE ARBITRATORS, OR A MAJORITY OF THEM, SHAU.. BE FINAl, AND VUDGMENT UPON THE AwARD
MAY B5 ENTERED IN ANY COURT, STATE" OR FroEAAI.. HAVING THE ARBITRATION AWARD SHAlt. BE IN WRmNG AND
SPJ::CIFY THE FACTUAL AND LEGAl BASES FOR THE AWARD. UPON THE REQUEST OF MlY PARTY, THE AWARD SHAlL INCLUDE
fiNDINGS OF FACT AND CONCLUSIONS Of LAW,
lo} ARBITRABlE DISPUTES INCLUDE ANY AND AJ.L CONrROVeRSIES OR CLAIMS BEnYEEN THE PARTIES OF WHATEVER TYPE OJ\

PARTIES, AND/0}{ ANY ASPI;Ci OF ANY PAST OR PRESENT RELATIONSHIP OF THE PAR'I'IES, WHETHER bANKING OR OTHERWISE,
SPECIFICAllY INCLUDING ANY AlLEGED TORT COMMITIED BY ANY PARTY, .
{di THE PAJ\TII:S SHAt.L ALl.OW AND PAJinciPATE lN DISCOVERY IN ACCOJ\DANCE YllTH 'rHE FEDERAl. ROLES OF CIVIL PROCEDURE
FOR A PERIOD OF ONE HUNDRED TWENTY 1120) DAYS AFTER THE FlUNG OF THE ORIGINAL RESPONSIVE Pt.EAt>JNO. DISCOVERY MAY

ANY ASSERTED OBJECTIONS, PRMLEGES,.AND PROTECTIVE ORDER REQUESTS AND AWAitD!NG REASONASLE ATIORNEY'S FEES TO THE
PREVAILJNG
(e) IN THE EVENT THE AGOREOATE OF AFFIRMATJVE CLAIMS ASS!;JtiED l:XCEED $500,000.00, EXClUSfVE OF INTEREST AND
ATTORNI!Y'S FEES, OR UPON THI! WR!TTEfl REQUEST OF ANY PARTY, {1) Pft!OR )'0 'THE DISSEMINATION OF A Us'r OF POTENTlAL
ARBil'AATORS, THE AMEfllCAN ARBITRATION ASSOCIATION SHAll CONDUCT AN IN l>aiSON ADMINISTRATIVE CONFERENCE WITH THE
PARTIES AND THEIR AliORNEYS FOil '!'HE FOLLOWING PURPOSES AtlD FOR SUCfl ADDITIONAL PURPOSES. AS THE PAR'I'IES OR THE
AMERICAN ARBITJl;T19N ASSOCIATION MAY DEEM APPROPRIATE, (Al TQ OBT.AIN ADt>ITIONAl.INFORMATJON ABOUT THE NATURE AND

MEDIATION OR OTHER METHODS OF DISPUTE RESOLUTION MIGHT BE APPROPRIATE, AND {2) AS PROMPTLY AS PRACTICABLE AFTER '!'HI!
SELECTION OF THE ARBITRATORS, A PRELIMINARY HEARING SHAll llE HELD AMONG THE PARTIES, THEIR ATTORNEYS AND 'THE:
ARBil'RATORS, WITH THE AGREEMENT OF THE ARBITRATORS ANt> THE PAI\TlES, THE PREUMINARY HEARING MAY BE CONDUCTED BY
TELEPHONI! CONFERENCE CALL RATHER THAN IN PERSON, AT THE PREUMIHARY HEARING THE MATTERS THAT MAY BE CONSIDERED
SHAll INCLUDE, WITHOUT LIMITATION, A PREHEARING SCHEDULING ORDER ADDRESSING lA) EACH PARTY'S DUTY TO SUBMIT A
DETAilED STATEMENT OF CLAIMS, DAMAGES ANDfOR DEFENSE$, A STATEMENT OF THE ISSUES ASSERTED BY EACH PARTY AND ANY
LEGAL AUTHORITIES THE PARTIE"S MAY YnSH YO BRING TO THE ATTENTION OF THE ARBITRATORSJ {B) RESPONSES AND/OR REPLIES TO
THE PLEAbmGs FilED IN COMPliANCE WITH SUBPART 21All ICI snPUL.AT10US REGARDING ANY UNCONTESTED FACTS; (OJ EXCHANGE
AND PREMARKING OF AU DOCUMENTS V'IHICH EACH PARTY BELIEVES MAY BE OFFau!D A't THE fiNAL ARBITRATION HEARING: lEI THE
IDENTIFICATION AND AVAILABILITY OF Wi\"NESSES, INClUDING EXPERTS, AND SUCH ADOlTlONAL MATTERS flEOARDING WITNESSES
INCLUDING THEIR BIOGRAPHIES AND A SHORT SUMMARY OF THEIR ExPECTED TESTIMONY, IF) WHETHER A STENOGRAPHIC OR OTHER
OFFICIAL.RECORO OF THE PROCEEDINGS SHALL BE MAINTAINED; AND IG! 1HE POSSIBILITY OF UTil\ZINO MEDIATiciN OR OTHat
Al1ERNATIVE Mm'HODS Of OJSPUTE RESOlUTION.
(f) FOR PURf>OSES OF "flHS PROVISION, "THE PARnES MEANS DEBTOR AND SECURED PARTY, AND I:ACH AND AL\. PERSONS AND
ENTITIES SION!NG THIS AGREEMENT OR ANY OTHER AGREEMENTS OR AMONG ANY OF THE PARTIE$ AS PART OF THIS
TRANSACTION. 1'HE PARTIES" SHALL ALSO INClUDE INt>MoUAl PARTNERS, AFFILIATES, OFFICERS, DIRECTORS, EMPlOYEES, AGENTS
IBCOOO' - 06/22/0l
Page 7 of 9
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ANDfOR REP/'lESENTATNi;S OF ANY PAP'"'Y TO SUCH DOCUMENTS, AND SHALL INCtuD'" 'lY OYHER OWNER AND HOlDER OF tHI-S
AGREEMENT. . '.:
tg} THE PARTIES SHALL HAVE TliE. RIGHT TO INVOKE SElF HELP RE.UIEOIES {SUCH AS SET .OFf, NOTIFICATION OF ACCOUNT DEBTORS,
SEIZURI!: AND/OR FORECLOSURE OF COLLATERAL, AND NON-JUDICIAL SALE OF PERSONAL PfiOPSnY AND REtAl f>ROPERTY COLlAtiORAt}
BEFORE. DURING OR AFTER ANY ARBITRATION AND/OR REQUEST ANCILlARY OR PROVISIONAL JUDICIAL REMEDIES !SUCH AS
GARNISHMENT, ATTACHMENT, SPECIFIC PERFORf.'lANCE; RECEIVER,. INJUNCTION OR RESTRAINING ORDER, AND SEQUESTRATION}
BEFORE OR AfTER ANY ARBITRATION. THS: PAR'TIE$ NESO NOT AWAIT THE OUTCOME OF THE. ARBITRATION BEFORE USING SElFHELP
AEMEOIES. USE OF SELFHELP OR ANCillARY AND/OR PROVISIONAL JUDiCIAl REMEDIES SHALL NOt OPERATE .AS A WAIVER OF EITHER
PARTY'S RIGHT ro COMPEL ARBil'RATJON. ANY ANCilLARY OR PROVIS-IONAl REMEDY WHICH WOULD BE AVAilABLE FROM A COURT AT
LAW SHAlt BE AVAft.APLE FROM THE ARBITRATORS.
(hl iHE PARTIES AGREE THAT AN_y ACTION REGARDING ANY CONTROVERSY BETWEEN THE PARTI.ES SHALL I':ITHER BE BR9UGHT BY
ARBITRATION, AS,IJESCRIBED HEREIN, OR BY JUDICIAL J'ROCE.EDINGS, nUT SHAll NOT BE PURSUED SIMULTAN!;OUSt.Y IN DIFFERENT OR
ALTERNATIVE FORMS, A TIMELY WAJTIEN NOTICE OF INTENT TO ARBITRATE PURSUANT '1'0 THIS AGREEMENT STAYS AND/OR ABATES
ANY AND ALL ACfiON IN A TRfAl COURT, SAVE AND EXCEPT A HEARING ON A MOTION TO COMPI!L ARBITRATION AND/OR THE EN1RY
OF AN ORDER CriMPElUNG ARBITRATiON AND STAYING AND/OR ABATING nre LITlGATlON PENDING THE FILING OF 'fHE FINAl AWARD
OF THE ARBITRATORS. All REASONASLE AND. NECESSAAY AT10RNEY'S FEts AND All TRAVEL COSTS SHALL BE AWARDED TO THE
PREVAILING PARTY ON ANY MOTION TO COMPEl ARBITRATION AND MUST SE PAID 10 SUCH PARTY WITHIN TEN (101 DAYS OF THE
SIGNING OF lHE ORDER COMPElLING ARBITRATION. ' ' .
(I) ANY AGGRIE.VfO PAR1Y SHAll. SERVe A WRITTEN NO'tiCE OF ,INTENT TO ARBITRATE TO Arf'f AND All OPPOSING PARTIES WITHIN
360 DAYS AFTER DISPUTE HAS ARISEN. A DISPUTE IS DEF.fNED TO .HAVE ARISEN ONLY UPON RECEIPT OF SERVICE OFJUOICIAL
PROCESS, INCLUDING SERVICE Of: A CO.UNTEACLAIM, FAfltiRE TO Sl:RVEA WRITTEN NOTICE OF INTENT 1'0 ARBfTRATn WITHIN THE TIME
SPECIFIEP' ABOVE SHALl. BE DEEMED A WAIVER O"F THE AGGRI5VED PARTY'S RIGHT TO COMPEl ARBITRAliON: OF SUCH CLAJM. THE:
ISSUE OF WAIVER PURSUANT tO tHIS AGREEMENT IS AN ARBITflABJ..E DISPUTE.
(JJ ACTIVE PARTICIPATION IN PENDING LtTIGATION DURING '!'HE 360 DAY NOTICe WHETHER AS PLAINTIFF OR DEFENDANT, IS
NOT A WANER OF THE RIGHT TO COMPa ARBITRATION. All DJSCOVEIW OBTAINED IN THE PENDING llTIGATION MAY Bl:: OStD IN ANY
SUBSEQUENT ARBITRATION PROCEEDING. . .
lkl THE PARTIES FURTHER: AGREE. THAT Ill NO ARBITRATION PltOCEEDJNG HEREUNDER SHAU..BE CERTIFIED AS A CLASS ACTION OR
PROCEED AS A-CLASS ACnON., OR ON A BASIS INVOLVING CLAIMS BROUGHT IN A PtlRPORT!:;D WRESENTATIVE CAPACITY ON MHALF
OF THE GS\!EAAL PUBLIC, OTHER CUSTOMERS OR POTENTIAl. CUSTOMERS OR PERSONS SIMilARLY SITUATED AND (n) NO ARBITRATION
PROCEEDING HEREUNDER SHALL BG WITH, OR JOINED IN ANY WA,Y WITH, Atf't' OTHER ARBITRATION PROCEEDING.
Ill ANY ARBITRATOR SELECTED SHAll BE. KNOWLEDGEABLE IN THE SUBJI!CT MATTER OF THE DISPUTE. EACH OF THE PARTiES SHAll
PAY AN EQUAl SHARE OF !HE COSTS, FEES, AND OF FEES, COST$ AND EXPENSES,
{m} All STATUTES OF LIMiiATIONS WHICH WbULD OTHERWISE. BE APPt.ICABLE SHAll APPLY TO ANY AND All ClAIMS ASSERTED
IN ANY AR!JITRATION PAO!;EEDJNG HEREUNDER AND THE COMMENCEMENT OF ANY ARBITRATION P80CEfDJNG TOlLS SUCH STATUtEs
OF'LIMITATlONS.
tnl JN AN'f ARBITRATION PROCEEDING SUaJEC'I' TO THIS PROVISION, tHE ARSITMTORS, OR MAJORITY OF iHEM, ARE SPECIFICALLY
EMPOWERED TO DECIDE tRY DOCUMENTS ONLY, OR WITH A HEARING, AT THE ARBlTRATORS' SOLE DISCRETION) PREHEARIWl MOTIONS
WHICH ARE SUBS1ANTIAlLY SIMilAR TO PREHEARING MOTIONS TO DISMISS AND MOTIONS FOR SUMMARY ADJUDICATION.
{o) THIS ARBITRAT:ION PROVISION SHAll SURVIVE ANY. TERMINATION, AMENDMENT, OR EXPIRATION OF THI! AGREEMENTIN WHICH
THIS PROVISION I$ CONTAINED, UNLESS All OF THE PARTIES EXPRESSLY AGREE. IN WRI:ING.
{p} THE PARTIES ACKNOWLEDGE tHAT THIS EVIDENCES A TRANSACTION l!lVOLVING INTERSTATS COMMERCE, THE
fEDERAl ARBITRATION ACT SHALL GOVERN THE JNTERPRErAliON, ENFORCEMENT, AND PURSUANT TO THE ARBITRATION
ClAUSE OF THIS AGREEfdENT,
(q) THE ARBITRATORS, OR A MAJORITY OF THEM, SHAlL: AWARD ATTORNEY'S FEES AND COSTS TO THE PREVAILING PARTY
PURSUANT TO THE TERMS OF THIS AGREEMENT,
(r} NEITHER. THE PARTIES NOR THE ARBITRATORS MAY DISCLOSE lHE EXISTENCE, CONTENT, OR RESULTS OF ANY ARBITRATION
HERWNDER WITHOUt PIUOR CONSENT OF All PARtiES AND/o'R COURT ORDER,- .
Is} VENUE OF .ANY ARBITRATION PROCEEDING HEREUNDER SHALL BE IN JlnM!. COUNTY, TEXAS,
SECi{ON X, M!ssn!laneoll$,
{a) Srn:uo'ty !tJtercst Abkru!!.AII rlghte of the Secured .P,arty 81ldlho security lntorosts hereunder Shalt boabsoluto end unuQnclh\onal frrespBotlve
. . . .
[II any change In the time, muMet, amount or pleoe of payment of,' or In any other term of, an or any of the Indebtedness, or any other
11mendment or waiver Df or any consent to any departure from the PromlssDry Note. or any other loan Document!
!AI an.y exchange or release or nbnperfectlon of all or any part of the or any other collateral, or any release from, to,
waiver Ot or consont to departure from any guaranty, for all ,or any of the of .. .
(iii) to tl\0 fuHeSt extont petm1t1ed by Jaw, any other circumstances which mlght constitute 11 defense 8veHehle to, or a discharge of
the DtlbtOf or a third party p]edgo(, , ' . : :
fbi JndemnlfloatJon. 1M DBbtor agre!'s to indemruty the Seoure'd Party anti hold the Secured Patty ham1less frOm and ngalnst eny and ell
llabi!itles, obl'igatloos, louos, pomlt!e$, actions, judgmWIU, sults, costs, expemos or of any kind of nature whatsoever
which may iinpoud on, Incurred by, or euerted ageln.H the Portytn ally way relatblg, ln any way f!riSing out of or In conneotron wltb
thl:s. SeC:utlty Agreement. the l,oen DOi::uments 91 the transairtlons con.t"limplate<l herebY or th&reby otlle:r 1hl'ln tho$0c arlsblg out of \he Secwed
breaoh . &lfautt, negQgence or winful mlseomhJot in hs obligations und&r thb Security Agteenl(!nt or the' l_oan Oooumollts: Wlttlovt
Umltellon of.t!Je foreg?lng, tlW Debtor will rOJmbmn th6 Secured. Party for rill expenses {tneludlng el!p&nse:f for legal 3e1Vlces of ovary kind) Qf, or
lncldental to, "the negotlat{on of. entering Into ond (lnfOroomcnt of 11ny of the provls!OO$'hereof end Of th& Indebtedness, end MY ftOtual or
attomptOcd sale, ltase other disposition of, and MY exohang'e, cnforaenient. eoDeation, eor'nproffils& or sottlomont Of ru;y OJ th'e Col!tltl!ral and
defenif!ng or assin1fng tho rights and claims of tti!i Secured Pany In iespeOt thereof, Md for the cer-0 _of tho Coll!\ietilland defending or asserUng
the end olalms of.the Party In rospeot thero'Ot, b'y lltlgalion or 'otherwJ!e; lnclud'mp expense 'of &Jl tuoh e'X)iliNos shan
bo Jho
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SECTION XI: NO ORAl
THJS Yffl!TTEN REPRESENTS THE FINAl AGREEMENT BTWE'ffi THE PARTIES AND MAY NOT BE CON!AAOICTEO BY E)(JDENCE
OF PRIOR CONTEMPORANEOUS. OR SUBSEQUENT ORAl AGREEMENT 0): 1-Hf ly\RJ!ES.
':
JliEBE M'IE NO UNWfUi'TEN ORAt AGREEMgNTS Bffi'{EEN THE PABI!f$
DEBTOR:
By:
DEBTOR:
By:
DEBTOR:
.By:
By:
Name:
Title:
DEBTOR:
company, General Partner
By:
DEBTOR:
By
DEBTOR:
By:
DEBTOR:
By:
IBC0004 - 06/22/01.
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EXHIBIT "A"
Equipment. All equipmentofDebtor now or hereafter acquired by Debtor, including
without limitation, fumlture, machinery, veliicles and trade fixtures, together with
any and all accessions, attachments and--other additions to, substitutes and
replacements for and hnprovements of the equipment, whether now owned or at any
thne hereafter acquired or made, together with all tools, parts and appurtenances now
or at any timer hereafter used in and togeiher with all prooeeds of the equipment
descnoed or referred to above, including insurance payable by reason of!oss or
damage thereto, and all proceeds of any policy ofinsuraneerequired on the Collateral
by Secured Party, including any refunds or unearned premiums in connection with
any cancellation, adjustment or terminatiOn of any such policy of insurance.
Inventorx- All inventory ofDebtor, whenever acquired and whether now or hereafter
existing, including but not lhnited to all goods, wares and merchandise intended for
sale or lease by Debtor or to be fUrnished by Debtor, under oontraets of service and
all raw materials, goods in process, finished goods and supplies of every nature used
or usable in connection with 'the manufacturing, processing, packing, shipping,
advertising, .selling, leasing or furniShing of such services, goods, wares and
merchandise; all certificates of title, manufacture's statements of origin and other
arising from or related to such inventory; and all accessiom, attachinents
and othe.I:additions to, substitutes for, replacements for, improvements to and returnS
of such inventory; and all proceeds of such inventory.

(1) All of the property, personal or otherwise, whether now existing or hereafter
arising, existing or created, now or hereafter attached to or incorporated into
or used in or about the Debtor's premises, including all furniture, appliances,
furnishings, goods, equipment, and macb.i.llery owned by Debtor and other
tangible personal property now or he1eafter affixed, attached or related to
such property or now or hereafter affixed, attached orrelated to such property
or used in connection therewith, and all replacements, substitutions and
additions for or to any of the foregoing;
(2) All accessories, attachments and other additions to, substitutes and
replacements for, and improvements of, the property described in (a) above,
whether now owned or.at any time hereafter aCquired or made, together with
all tools, parts and appurtenances now or at any time used in connection
therewith;
(3) All products and proceeds, including, without lhnitation, insurance proceeds
of, and additions, improvements and accessions to
1
all and any of the property
described above, excluding proceeds used to replace wom-out or obsolete
equipment or other property.
D. Accounts Receivable. All accounts and chattel paper ofDebtor, whenever acquired
and whether now or hereafter existing, including, but not limited to, accounts and
chattel paper which arise out of: (i) the sale or other disposition of goods; (ii) the
fumishblg of services; (ili) the fumlshing of, the use of, or the lease of any of the
Collateral, and (iv) the agreement to provide any of the above; and all proceeds
relating _to, resulting from or arising in connection with any such accounts and/or
chattel paper.
E. Genera) Intangibles. All General Intangibles of Debtor
1
whenever acquired and
whether now or hereafter existing, and all proceeds thereof .
Together with all books, records, files, computer software
1
documents and other infonnation
pertaining to, and all containers and packages for, the property described or referred to in subsections
A throughE above, and the proceeds of all of the foregoing.
13
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REAL J:S!ATE LIEN NOTE
Amount: $ 2,400
1
000.00
Date: March. z., 200$
I
For value received, thf) receipt of wbicJl is hereby aclmowledged. the undersigned, jointly and (hereina.fter
"Borrower", whether one or more) promise to pay to .the order 'of INTERNATIONAL BANK OF COMMERCE (hereinafter
"Lender',,._ at 130 E. Travis, San Antonio, J3exar County, Texas 18205, thliSUitl of TWo Hill iOn Four Hundred
Thousand and No/100 ' . .
DoJLsrs (S 2,400,000.00 ), in legal and lawful money of the United States of America, with interest as it
accrues on the principal bdance from date of advaaoo of until paid.
X
The interest rate shall be . wnt per aunuru; or
The interest rate shall be floating at . :25% percent per annum above the New York
Prime Eate ("Prime RaW') (descrlbedbelow) as it fluctuates from furie to time; provided.
4.75%
however, thatfuno event shall the rate of interest (plus said amol.Dlt in excess thBIOOf, Umiy) to paid oli the wipaid
---1 pnncipal of thiS Note betws Uiaiil-pei'annUJll, normmo tb:w. legalr.ate
X
allowed by laW. Th.el starting iuterest rate on tills Note shall be 5 7516 - percent :Per
The rate ofinterest due hereunder shall be recom.puted as of the date of any oh.ange in the Prlme Rate. .
. '
The rnTERNATIONAL BANK OF COMMERCE PlUMB RA'l'B shall mean thb arinuallending rate of interest
aunmutqed ftom time to _time by Lender, as its prime rate.
The NEW YORK PlUME RATE shall mean .the annuallendlug rate of intertist annOunced from time to time by
1PMorgan Chase & Co., Ne.wYork, New York, as itspdm.erate. If the New York Prime Rate.ba& been selected as
the Prime Rate 'and if. thereafter, a prime rate is, not aunounced bY JP Morgan Chase & Co., NewYorl;
then the Intematiouat Bauk of Coounerce minus one percent (1%) shall be the Prlme Rate,
Use of either of said Prlme Rates is not to be c:onstrhed as a wrunnty orrepresentatioll. that sUch rates are more favorable than another
ratO or index.. that rates on other loans or credit :facilities may not be,bas:'ed on otber indices Or that uies O!lloans to may not be
ro.ade below such prime rate. ( .
The interest is calculated on a 360-day factor applied on. a 365--dayyear, m-a 366-dayyear, in the event that the year is a leap year, on
the unpai4 principal to the date of eaCb. installi.nent paid ail.d the pa)'nlentmade credited first to the discharge of the intere;st and
the: to the reduction of the principaL P.[Ovided, however, that 1n the eve at the interest rate teaches the maximum rate alll?wed
. by appllcablelaw, said maximUm legal rate shall Do computed on a full calendar year 363136-s t!aYs basis or on a 3661366 days basis, in
the event that the year iS a leap year, Th<i-httetest charged and herein contracted for will not exceed the maximUID allowed by Jaw,
. . . . . . . . . . ' .. I . .. .
Matured tw_paid amounts will bear interest com-puted on a full caleudaryear 3651365 .days-liasis or nn a 3661366 daxs basts
1
m: the event
that the year is a leap year, at the highest legal rate ofinter{ISt allowed by Texas law, unless Federal law allows a blglieriuterestrate; in
which oase. Borrower agree,s to pay the rate allowed by .Federal law, lfilpplicable laW does not set a maxln\Um.rate of interest for
iuatw:'Cd unpaid amounts, then Borrower agrees that the maximUlll rate for such amounts s.ball be eighteen i'rc:ent (18%) per annum.
. . . . . . .
To extent allowed by law, 1iS tlie late pilyment chatge under Bank mayh\ its Sole (i)fJllcrease the mierest
on the principal portion of anY payment runouut that-is not received by th-e _payroetit due date tO the maxhuumrate allowe,d by law.
on a full calendar year basis from the payment due date unt!1 paid. or (U'), sb.olild any-payment not be n1ade withhi ten (lQ)
due date, require BorroWer to pay a one time "late charge" per late payment equal to five (.5%) of the amount of the
principal and :interest of S\lch pay.menl, with a min..iQlum of $1Q.OO 'and a maximlim of$1,500.00 per late payment. The
11
lnte ,
"''"'"" mav,; aSsessed without notice, and shall be immediately due and payable. This provision is inapplicable if the outstanding
lndebtodo<es'""'d" the Note is accelernted. No late charge wlll'be assessed on BI1Y paYment when the o.nly delinquency is due folate
assessed on earlier pay_ment aud thePaynteot iS otherwise a full payment.'
Number ofPaymCllts Amount ofPaxnioJnts Wheu.Paym.euts are Due
see Allonge'attached heretn'and made a part hereof fat aJJ
Final Mturlly Date: March '2.. 2()10
amottlzo th; principal oflhi; note on tha stated maturity Wilhotlt any"l3alloon ortmequal payment .
. THIS OBLIGATION HAS fOLLOWING DJ!MAND
At any time, and froril time to time, Whether or not prior to andlo , said schedule payment Len_denmay, 1u Its sole and
absolute discretion, reschedule, temange and/or , 'Whole or in part. the a11d unpaid principal balance. and; all
accrued and iw.paid intefest under this Note ower agrees and promises lo pp.y fender all accelerated prin9ipal aud all ae;crued and _
uupaid interest on such prin otice of intent to accelerate shaU be r..equired ofLe!ld"er altd :BOrrower exprbs:sly waives any right
to notice ofLende ' to accelerate. The fotegoingrlght to make demand for inmfediate payment of this in whole or In part,
b_ sed by Lender for any reason whatsOever, or not :Bottower is in in of its Scheduled
I
13
...
'I11e failurp of Borrower to pay any of the abovtHtated paY.IQent(s) of principal or 1111)' htterest thereon, when the same is due and
payable, sh:ill penni\ Lender at Its option, to acee!enite the maturity, without notice to Borrower, or any portion, oftlte remaining
unpaid prlp.cipal balance outstanding. and all accrued and unpaid interest of this Note, wbereupoJ:L the sable shall be due and payable
imtUediately, \ , :.
. .
lm:tier, 11t ils diseretioft;; ftlft) deehtte 6\lsuWJ eittt h) Bono,;el ettdOJJttil flfttlkt. gttfl:lltl:tets)immediatel) dae atttl:pfiY,tlhle
upOn deeming. i!selflto be ntl etsel). attah;x i:d!eewe .cason of M) :matedaJ chan kl-M) of.;lou o Mt 'a Ei:JelttOiug any
' i . J tcason eftwy olhw mutedal ebaugoofeotl:dition uhetbet oz.not dwct:ibedhetcln,
Borrowct intend that the loan evickncea by this Note (the shall strict compliance w:lth uSury Jaws.
lfat tmy time any in erest contracted for, charged or received under this Note or otherwise in connection with th11 Lollil would be
usurious under appliCable Jaw, then regardless oftheprovisions of this Note or the documents and instruments securing or
othenvise in comtection with tho loan or ruiy action Ot event (including, without linillatirm, prepayment ofprln.cipal here\mdet
of accelenition ofmaturity by the Lender) wlilch may ocrwitb respect to this Note or the Loan, it is.agreed that all sums determined
to be usurious sbaU be immediately credited by ihe Lender.'ss a payment ofprincipal heteunder, or if this Note has already beeu paid,
immediately refunded to the Borrow9f, All co01pensat:.ion wblch constitutes interest applicable law in connection with tbe Loan
be OOtorttted, p?orated, allocate.d and .spread over the full of time any indebtedness is owing by Boirower, t) the greatest
extent petlpissible.Without exceeding the apptfcable maxbnum rate allowed by applicable law in effect fr-om time to time during such
1 ' . . . .
In no event ,shall the prov11!ions of. the Texas Finance (which regulates certain revolving loan accounts and
!evolVing ackounts) apply to the l.oan.
'JN TilE ITllM. ITEMS, TERMS OR PROVISIONS CONTAINED lN THIS INSTRUMENT ARE IN CONFLICT
WITHTH)l LAWS 6F'!'HB STATEOF'I'EXAS, ORFIIDERALLAW, TillS JNSTRUMElrr SHAL.LBEA,FFECTED ONLY ASTO
ITS APPLiCATION TO SUCH ITEM, ITEMS, TERMS OR PROVISIONS, AND SHALL IN ALLOl'HERRESPECfS REMAIN IN

EXCESS 6FTHE Rlrn!ALI.O\VEDBYTHELAWS OF THE STA'TilOFTEXAS OR FEDERAL LAW, IF SUCHLAWPBRMITS
A GRBJJilRMTE(oF INTEREST. 'I'HB .INTJlN'Ii:ON OF TilE PARTIES BEING TO CoNFORM STRICTI.YTO THE USURY
LAWS A& NOW OR HEREINAFTER CONSTRUED BY !HE COURTS HAVING )URlSDICTION,
!HE BO$-OWBR. ENDO)tliEI\S, SURETIES, GUARANTORS AND ALL PERSONS TO BECOME LIABLE ON 'l'H:rs. NOTE
('I'HB "OBLIGORS"). IJEREBY, rGINTLY AND SEVERALLY, WANE. EXPRESSLY ALL NOTICES OF OVERDUB
. INSTAiiMENT PAYMENTS, AND DEMANDS FOR PAYMENT nffiREOF, NOTICES OF INTENTION TO ACCELERATE
MA'I'lJRIT'{; NOTICES OFACTUALACCELERATION OF MATURITY, PRESENTMENT, DEMAND FOR PAYMENT, NOTICES
OF DISHONOR, PROTEST, NOTICES OF. PROTEs:r, AND DJLIGENCE IN COLLECTION HEREOF. EACH OBLIGOR
CONSENTS. THAT 'I'HB LENDER OR OTIIER HOLDER OF TinS NOTE MAY AT ANY TIME, AND FROM TIME TO TIME.
UPON REQUEST OF OR BY AGREEMENT WIT!! ANY OF TIJEM, RENEW THJS NOTE AND/OR EXTEND TilE DATE OF
MATilRI'\'YHERE\)F OR CHANGBT!IB TIME OR METHOD OF PAY,MENTS WITHOUT NOTICE TO ANY OF'I'HB OTI!JiR
OBLIGOJ,Ul, MAKERS, SURETJES OR ENDORSERS, WHO SHALL REMAIN BOUND FOR TilE PAYMENT HEREOF.
OBLIGORs wAIVJl EXPRESSLY TilE LATE FUJNG OR ANY SUIT OR CAUSE OF ACTION HEREON, ORANYDBLAYIN
Tl!B JIANDLING OF ANY COLLATERAL. OBLIGORS AGREE THAT HOLDER'S ACCEPTANCE OF PARTIAL OF
DBIJNQUENTPAYMENTs. OR FAlL PRE OF HOLDER TO EXERCISE ANY RIGHT OR RilMBDY CONTiilNED HEREIN OR
IN ANY INSTRUMfNT GIVEN AS SECOR!TY FOR T)mPAYMENT OF T!llS NOTE SHALhNOTBEA WMVBR OF ANY
O!lLIGAT,ION. OF 'filE O!JLIGORS ORCONSTITU'I'B WAIVER OF ANY PRIOR OR SUBSEQUENT DEPAUL'!: TilE HOLDER
MAY REM.IlDY DEFAULT WITHOUT WANING THE DEFAULT REMEDJED AND MAY WANE ANY DEFAULT
WITHOU',I'\VAIVING ANY O'I'HEI<PRIOI\ OR SUBSEQUENT. DEFAULT.
.As sec'!lrii_v this\ Note, and all olh,cr which may .at any time bo owing by Bortowef (and any endorsers
gnarantotShereof) to Lender or other Leo.der hereof, Borrower (and any endorsers imdlor guarantors hereoQ, gives. to Lender or other
l:lolder hereof, a security interest, a lien and contractual right of set-off in and to aU of the Borrower's (and any endorsers and/or
_guarautors.hereof) nioney, cn:dif5, dopoolt accounts, acco\lllts and/or-other property now in, or at any time hereafter coming within, the
qtstody ot tontrol of Lender Or 'other Holder hereof, or any member bank Or bran'ch bank ot'Interuatlonal Bancs.hares Cotporation.
whether htld in or special account or deposit, or for safekeeping or otherwiso. Every such security interest f!udr:ight of set-off
inay be wifuout demand or n9tice to Borrower (and miy endOrsers and! or guarantors hereof). No secuiity interest or right qf
set-offto such security interest shall be,deemed to have. been waived by any act or conduct on 1be part of the Lender, or by any
failure to rlght of seto:-Off or to enfol'(le spch.:;:ectuity or by any delay in so doingh Every rlght of set-off and
S?terest shntl co.n!fn\le in full an.d f!t!ch right of set-off .orseeltOty interest js specifically waived Or released by
mi in writing exeeu:ted by Lender, The foregoing is in adclition to and not in lieu of any rights of set-off allowed by law.
'Jn. With and at any time in the past, present or future. in ovent
iodividu.a1!y or jointly with others, bas granted or grants Lender a lien on any real audlot personal property, Borrower agtees that tho
lien on such real and! or property to the extent o(Borrower's interest shall also secure the indebtedness pfBorrawer to.Lender
evidenced 'by thl.s N6te and aU Teuewals, exte'nsions and 'modifications hereof. . .
Financing At Lender's request Debtor will promptly sign all otber documenls, including financing statemeb aitd.
certifiClltes of title, to perfect. protect. ru1d continue Lender's security interest in the Collate:ral at the sole cost of Borrower. Debtor .
hereby authorizes to file a Financing Statement, an Amended Financing Statement and a Continuation financing Statement
{collectivelY referrOO to as tho statement") describing the 'CollatC(al. Where .Collateral is ln the possession of a third pa.Fty.
DebtOr Will Join Leuder Jnnotifying the third party ofien.der's futerest and a Con.trol Agreement from the third
Eluty that it is holding the collatetal the benefit ofLendCr. . .
If. this Noie; or any hereof, js notpald according to its p;acedin th;.hruids of an attorney for or Js Conecioo.
lh{ough PrObate. Ballkruptcy or other judicial ornon.jud.iclal proceedingt, whether matured by expiration oftim.e or by the exerci11e of

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the option given to the Lender to mature.l4 the Borrower lllld all now or hereafterpentonally liablehereonllow agree to aud shall
pay an equal to ind attom.o)"s fees and associated cos.ts for collection. Said attorney's fees and
of 90Uectlon, ooce liquidated anjl p,ajd b;YLender or (ltherwisi Jillowed by law, will bear intere.st at the rate ofintetest applied to
matured ao.d 'Of this s\_lch rate nl:ty cha!lgo fr_oin t4ue tO tin].e from-the date until repaid. .
In the event any legal or proceeding, by arbitration or otherwi.se, is conunenced ,in with the enfocyemeot of, or
declaration of rights under this Note and/or any instrument or written agreement required or delivered under or pursuant to the terms of
this Note, and/or any controversy or q}ain1, whether soundiDg in contract, tort or statute, legal or involving in any way the
fillancing or the subjecl ofthiB Note, or any or or extension the prevailing party
shall entitled to reCOJ.;e( reasonable imd necessary attorney'$ f9es . costs a '!located cos)ts fodn-house legal
services), costs, expenses, expert witness fees and c.osts, and otherneoessafY dis'bv.rsementsmade in connection Wlth any sucl:J. action CJr
proceeding, lu the am.ount detemrl.ued b)' the fact.:fi?.der.. . I
Lender, in its sole discreUo.n and wi'uHJut obligatiOn On Lender to do may on behalf for the benefit of
Borrower for <.:Osfs necessary for the prot,ction and preservation Of the CoUa!Critl:;6cufin$ W.s'Noje ruid Q\her .costs .that may
apptopriate, in Lender'& sole discretion. but not to insurance premiums; 'ad valorem taxes, and ;ttoroey's fees. Any
sums whiCh may be l!O paid out by tend;r Md all Sinus paid for'insuranee premlum.s, lis costs, expenses and
attorney's fees paid in any sUit affecting said property.\vhen necessary to protect the her60( s'hall bear intereSt ftom the dates ofsnch
payments at 'the 'interest r11te applied to' the mRtitred.and past-due principal and $hall be piid hY Borrower to Lender
upon the same place at whicll Note Js payable, aD.d shall Pe p;a.q ofth.e and as such in nll
.... "'\'OCfu. . . : . . . . I . .
Borrower merveS tho right to prepay, ptlor to maturity, all or any pari ?.r the ;rlncipal ofJ&.is Noie and interest shall
hnruediatety cease on any aJllO\l.Ot so prepaid. Allp:repayments sh3Ube applied 1&st maturing installplents of principal. without
intenupting tho regula,r . . .
.. Jmy if perntltted by i..endet, Or any btber person, 'or 'any. eutitywithout the
express consent of Lender, shall not release.the Jjablllty ofl3(!rrOWet qr the payment o!thls Note. ; .
Ill eveQ.t that the real property is 11old, conveyed_ or othenvfse of without the pri!)r written conseut of
the Lender, the maturity of this Note may. pt option of thO Lend.er, be nccelemted and Leuder may ip.lmediately. demanP. payuteot of
. the tltcn outst\lndplg principal sum together wlthall accruetf;and ttnpald Ciue thereon. \
. . ..
Borrower and Lender hereby and agree that iQ. the event of a.def;:ollt 'lll!der this Note or under !Wy document
executed by Borrower in connection with,.pr to seCun; the.payinent Qf; this Note (1) Len_der $ball not ba required to comply with
Subseclion 3,05(d) of the TeXas Revised Partnership Act and'(2) Lender sball not be nXtu!rid to proceed 'against o-f exhaust tho assets
before any remedy di:tcc!ly ono rfsuch
_' AltlitQtATION
ROMOWERAND LENDERF(JRTHERAGREEMJ FOLLOWS: .
(a)
(b)
(<)
Am' AND ALL CONTROVERSrES BETWEEN T.llli . PARTIES, EXCEPT SUCH CLAIMS AND
CONTROVERSrES W.lllCH ARE CONSUMER RELATED AND Im'OI.Vl! AN AGGREGATE AMOUNT IN
CONTROVERSY OF LESS Tl!AN. TEN THOUSAND DOLLARS ($10,000.00), SHALL BE RESOLVED BY
AR.BlTRATION IN ACCOllDANCE WITH THE PF:THE AMERICAN
ARBITRATION MJSOQATIO.N IN EFFECT AT TID: TIME. 01' l'JLJ.NG, .UNLI\8& THE COl\fllfERCLI.L
ARBITRATIOI:f RULES CQJ:IF.LICT \ylTJI. TlllS PROVISip.N, AljD )N THE
1
,TJ\RllfS Ol' THIS .
PROVISION SHALL C()NTROLTO "!;liE EXTEN'.f OJ' THE COl'giUCT, NOTo,yrrnsTANDING ANYTHING
CONTAINji!D HEREIN TO THE CONTRARY, SA\',ANln>!XCEPT suBPAflAGRAJ!HS (k), (m), (o), (p), AND(')
JIEREIN, T!lOSE CO,NSUMEJj. RELA':\'ED GLAMS ANI! CON'.fROVERSlJIS Jm'QLYING\AN AG_GREGATE
AMOUNT' OF LESS THAN l'EN '!'HOUSAND .D.OLLARS. (810,000.90) SHALL BE IN
ACCORDANCE WITH THE Al\lERICAN ARl!ITRATWN A/!SOCIA');ION RULJ<S FOJj. THE Jj.ESOLUTION OF
CONSUMER-RELATED DISPUTES OF LI\SS THAN TEN THOUSAND DOLLARS, ANY ARBITRATION
HEREUNDER SHALL DE BEFORE AT LEAST TlffiEE NEUTRALARlllTRATORS A1JSOCIATEP wrm THE
AMElUCAN ARBITRATIO.N SELE<;TED II'{ ACCO.RI)ANcJ?;w:tTH 'I11E COMMERCIAL
ARBITRATION ARnlTRATJ,ON ASSOCIATIOJ:l.;FA)'LURE OF ki"f ARBITRATOR
TO ALL.FACTS W.lllCH lliiGHT.TO AN. OBJECTIVE
Il\fPRESSlON OF THE ARBITRATOR'S PARTIALITY, AND/OR l\1:ATERIALoERRORS OF LAW SHALL BE
GROU}'IDS [IN Al>JJITIOJ'TO OTHEJiSJ FOR VACA'\'UR OJ! AN AWARD REND!lrum PuRsuANt 1'0
TlllSAGRllEMENT: . . . . , . . .. . . . . . .. . . .
THE AWARD OF THE AlUllTRATORS, OR A MAJORITY OF THI)M
1
SHALL BE FINAL, l'ffii.JlJDG!I'IENT
UPON THE AWARD MAY DE ENTERED ,IN; .ANY cOURT, Sl,'ATE OR FEDERAL, HAVING
JURISDICTION, THE ARB!T:Ri\TION AWARD SHA.LLBE IN WRITII'{G AND SPECIFY THJ>FACTUALAND
LEGAL BMJES FOR THE A\VARD. UPON THE REQUEST OF ANY PARTY, TID! AWARD SHALL INCLUDE
FINDINGS OF FACT AND CONCLUSIONS OF LAW .
ARBITRABLE DISPUTS INCLUDE Alfi AND ALL CONTROVERSIES OR CLAIM,S DETWEENTHE PARTIES
OF WHATEVER TYPE OR MANNER, INCLUDING WITHOUT Llll1iTATION, ANY CLAIM OUT OF
OR RELATING TO THIS NOTE, ALL PAST, l'RESENT.AND/PR FUT.URE CREDIT FACILITIES AND/OR
AGREE!I'IENTS INVOLVING THE pARTIES, Am; TRA.NSAc;r.IONS BETWEEN OR INVOLVING THE
PARTIES, AND/ORA!!Y ASl'EC1' OF ANY PAST OR PRESEm' R)U.ATIONSH.IP OFTHR PARTIES, WHETHER
BANKING OR OTHERWISE, SPECIFICALLY INCLUDING ANY ALLEGED TORT COMMITTED BY ANY
PARTY.
13
(d)
(e)
(Q
(g)
(h)
(I)
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THE PARTIES SHALLALLOW AND PAIITICIPATE IN DISCOVERY IN ACCORDANCE WITJITBE FEDERAL
RULES OF CIVIL PROCEDURE FOR A PERIOD OF ONE HUNDRED TWENTY (120) DAYS AFTER TilE
F:!LING OFTJIE ORIGINAL RESPONSIVE PLEADING. DISCOVERY MAY CO!\'TINUE TliEREAFTERAS
AGRE __ THE PARTiES OR AS AJ;.LOWED BY TBE ARBITRATORS. UNRESOLy:>:D DIScOVERY
DlSPUTJ<>;SJIALL:HllBROUGJITTOTIIEATttNTION OFTIIEARBITJUXORSBYWIUTI'ENMOTION.FOR
PROPERjDISPOSITION, INCLUDING RULING ON ANY ASSERTED OJIJECTIONS, PR!VILEGES, AND
PROTECTIVE ORDER REQUESTS AND AWARDING REASONAllLE ATI'ORNEY'S FEES TO TliE .
P:REVAILING PARTY. . . .
IN THE EVENT TilE A,GGREGATE OF CLAmS ASSERTED EXCEED SSOO,OOO:oo,
EXCLUSIVE OF INTERJ1ST AND ATTORNEY'S FEES, OR uPON TliE WRITTEN REQUEST OF ANY PARTY,
(i) PRIOR TO Tl DISSEMINATION OF A LIST OF POTENTIAL ARBITRATORS, THE AMERICAN
ARBITRA;TION'ASSOCIATION SHALL.CONDUCT AN IN PERSON ADMINISTJiATIVE CONFERENCE WITH
THE PARTlES AND TIIEffi ATTORNEYS FOR THE FOLLOWING PURPOSES AND FOR SUCH ADDITIONAL
PURPOSES AS 'i:m: PARTlES OR THE AMERICAN ARBITRATION ASSOCIATION MAY
(A) TO OBTAIN ADDmONAL I)'IFORI\1AT!ON All OUT TIIE NATURE AND !11AGNITUDE OF
TilE DISPUTE AND ;rHE LENGTH OF liEARlNGS AND SCIIEDPLlNG; (B) TO DISCUSS Tim
VIEW OJ.\ THE PAR).'IES All OUT ANY TECHNICAL AND/OR OTHER SPECIAL QUALIFICATIONS OF THE
i.RBITRATOl<.S; AND (C) TO CONSIDER, WHETliER'MEDIATIDN OR OTliER l\11':TliODS OF DISPUTE
RESOLuTION M!GIIT BE APPROPRIATE; AND (2) AS PRO!I1PTLY AS PRACTICABLE AFTER TliE
SELECTION OJITBiARBITRATORS; APRELIMmARYHEARING SJIALL BE IIELD Al\10NGTIIE PARTIES,
1,'BEffiATroRNEYSAND TliEARBl'I'RATORS. Wl'l'l!TliE AGREEI\1ENT OF TilE ARBITRATORS AND TliE
PARTIES, THE PR)ILIII1INARY nEARING MAY BE CONDUCTED BY TELEPJIONE CONFERENCE CALL
'RATHER THAN IN. l'ERSON. AT TliE PRli:LlMlNARY liEARING TilE MATTERS TJIAT !11AY BE
C{)NSIDERED SliALL INCLUDE, wri'noUT LI!I1ITATION, A PREliEARiNG si:Ii:EDULING oRDER
-\DDRESSING (A) EACH PARTY'S DUTY TO SUB!11IT A DETAILED STATEMENT OF CLAWS, DAMAGES
AND/OR DEFENSES, A STATEMENT OF TliE ISSUES ASSERTED BY EACJI PARTY AND ANY LEGAL
AtiTIIORITIES TJI1t PARTIES MAY WISJI TO illliNG T'q TI'm ATTENTION OFTJI1t ARBITRATORS; (ll)
. .dESPONSESANDI<IRREPLIES 'i'O TilE PLE'ADINGS FILED IN'CO!I1PLIANCE WITJI SUBPART 2(A); (C)
&'l'IPULATIONS REGARDING ANY UN<;ONTESI'ED FACTS; (B).EXCIIANGE AND PREMARKlNG OF ALL
W1IICJI EACH l'ARTY 'BELIEVES MAY BE OFFERED AT TliE !'INAL ARiliTRA'I'ION
l)XARING; (E) TliE IDENTIFICA'I'ION AND AVAILABILITY OF WITNESSES, INCL'PJ)ING EXPERTS, AND
. SUCH ADDITIONAL MATTERS REGARDING WITNESSES INCLUDING TliEI!l. BIOGRAPI1IES ;tND A
Sl!ORT SUMMARY OFTHEill EXPECTED TESTI!I10NY, (F) WHETIIER A STENPGRAPIDC OR OTHER
OFFICIAl. RECOR:(> OF. THE pROCEEDINGS SHALL BE MAINTAINED; AND (G) TliE POSSIBITJTY OF
'UTILIZING !111\DIA'J'ION OR 0'1_'HERA1;rERNATIVE !11ETHODS OFDISPUTERESOLlJTION. . '
F,OR PmtiOSES o:FTHIS PROVISION, "THE PARTIES" r.f&ANs BORROWER AND LENDER, AND 'EACH
AND ALL PERSONS AND ENTITlES SIGNING THIS AGREEMENT OR ANY OTIIER AGREEMENTS
liET\'I!EEN ORAI\10NGANY OFTJIE }'ARTIESAS PART OF TillS TRANSACTION. ''TliE PARTlES" SliALL
ALSO INCLUDE iNDIVIDUAL PARTNERS, Al?FILIATES, OFFICERS, DIRECTORS, :t:MPLOYEES, AGENTS
AND/OR REPRESENTATIVES OF ANY PARTY TO SUCH DOCUI\1ENTS, AND SliALL INCLUDE ANY OTHER
OWNER AND liOLDER OFTB1S AGREEMENT.
'l;liE PARTIES SJIALL RAVE .TilE RIGHT TO !NVOiot SELF- liELP REl\11':IiiES (?UCH AS SET-OFF,
NOTIFICATION OFA.CCOlJNT DEBTORS, SEIZURE,\Np/ORFORECLOSURE OF COLLATERAL, AND NON-
.iuDICIAL SALE OF PEESOl'!AL PROPERTY AND REAL PROPERTY 'COLLATERAL) BEFORE, DURING OR
ARBrJ:RATION AND/OR REQUEST ANCILLARY OR PROVISIOI'{AL ,JUDICIAL REMEDIES
(SUCH AS GARNISiiJIJENT, ATTACJIMENT, SPECIFICPERFORMANCE, RECEIVER, INJUNCITON OR
RESTiw:N:iNG ORDER, AND SEQUESTRATION) DEFORE OR AFTER ANY ARB!Tfui'I'!Ol'!. TilE PARTIES
.
V,.'Al_VER OFE!TliER PARTY'SRlGIITTO C0111PELAlOJ!TlUTION. ANY ANCILLARY OR PROVISIONAL
WOULD llE AVAILABLE FROMA.COURT AT LAW.SliALL llE AVAILAllLJ!: FROM TliE
f . .
TliE PARTIES AGREE THAT ANY ACTION REGARDING ANY CONTROVERSY llETWJ!EN TliE PARTIES
SHALL EITHER llE DROUGHT DY 'ARBITRATION, AS. DESCRIBED HEREIN, OR BY JUDICIAL
PROCEEDiNGS, lluT SIIALL NOT BE PURSUED SI!I1ULTANEOUSLY IN DIFFERENT OR ALTERNATIVE
FoR!I1S., A 'I'Th1ELY wRi'ITENNOTiCE OF'iJ'it!lN:r '1'6 .ARiliTRATi PuRSUAm TO TJIIS AGREE1\11':NT
STAYS AND!ORABATES ANY AND ALL ACI'ION lN A TRIAL COUll.T, SAVE AND E:XCE.Pl' A BEARING ON A
MOTION TO COII1I'ELARBl'I'RATION AND/OR THE ENTRY OF AN ORDER C0111PELLING ARBITRATION
AND STAYING AND/OR ABATING '1'IIE LITIGATION FENDING 'I'IIE FILING OF THE FINAiAWARD OF THE
-.+RBITRA1'0RS. AJ\L REASONABLE AND NECESSARY ATTORNEY'S FEES .AND ALL TRAVEL COSTS
SliALLDE AWARDJ!:D TO TliE PREVAILING PARTY ON ANY MOTION TO COMPELARBITRA'I'ION AND
MuSTDEjJ!AID TO SUCJIPARTY\VITJIINTEN (10) DAYS.OF'I'IiE STGNJNG OF TilE ORD!'R C0111PELLING
ARBITRATION.
'
ANY PARTY SliALLSERVEA WRJTIEN NOTICE OFINTENTTOJ,Rllri'RATE TO ANY AND ALL OPPOSING
.
DAYS AFTER DJS'f.UTE liAS ARISEN. A DISPUTE IS DEFINED TO HAVE ARISEN

ONLY uPpN R)lCE!f'T OJ< SEIWICE QF JUij)CJAL PROCESS, INCLUDING SERVICE OF/>. COUNTERCLAIM,
FAILUR)!)TO SERVE A \VRITI'EN NOTICE OF INTENT TO ARBITRATE WITIIIN THE Tll\11': SPECIFIED
. 4o\-x'sjur.LBE J. wAIVER OF THE AGGRIEVED PARTY'S RI9HTTo co!I1PELARBITRATroN
. _::r__AII\1, .THE JSSUE OF TO IS :.:::E
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;': '' . . ' 0) ACTIVE PARTICIPATION JN PENDING 360 DAY NOTICE PERIOD, WHETHER
. . ::.,; AS PLAINTIFF OR DEFENDANT, IS NOT AWAlVER OF THE RIGHT TO COMl'ELARDlTRATION. ALL
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. '. . . DISCOVERY OBT.AINEJ) JN THE PENDl)m LITIGATION MAY BE USED IN .ANY SUBSEQUENt'
(k)
(I)
(m)
(n)
(o)
(p)
(q)
(r)
(s)
ARBITRATION l'lWCEEDJNG. .
THE PARTIES FURTHER AGREE THAT (1/No ARBITRATIOJ:'!.PROCEEDING HEREuNnER SHALL JlE
CERTIFnw AS A CLASS ACTION OR PROC)\ED AS A CLASS A ciT ON, OR ON A llASJS xmfOLVJNG CLAI!I!S
llROUGHT IN A PURPORTED REPRESE!'TJI.TIVE ON llEHALF OF THE GJ\NERALPUBL!C, .
CUSTOMERS OR POTNTIAL CU'i'f0M:RS OR l'ERSO!'S SIJI!lLAllLY SITUATED AND (II) NO
ARBITRATION PROCEEDJNG HEREUNDER SHALL BE CONSOLIDATED WITH, OR JOTh'ED IN ANYWAY
WITH, ANY OTHER ARBITRATION PROCEJ!!DlNG. . . '
ANY ARBITRATOR SELECTED SHALL BE KNOWLEDGEABLE IN THE SUBJECT MA'ITER. OF THE
DISPUTE, EACH OF THE PARTIES.SHALLPAY ANEQUALSHARE OFTHEARB!'rRATION COSTS, FEES,
FE.ES. COS'}.:S.o\ND .
ALL STATUTEs OF LIMITATIONS WHICH'I\'OULD OTHERWISE BE APPLICABLE SHALL APPLY TO ANY
AND .ALL CLAIMS ASSERTED IN. ANY ARBITRATION PROCEEDll'!G HEREUNDER AND THE
COMMENCEMENT OF ANY ARBITI<ATIONrROCEEDINGTOLLS SUCJlSTATUTES OFLIMI.'l'ATIONS.
IN ANY ARBITRATION PROCEEDING SUBJJ(CT TO THIS PROVISION, THE IDITRATORS, OR MAJORITY
OF THEM, ARE SPECIFICALLY EMPOWERED TO DECIDE Q!Y DOCUMENTS ONLY, OR WITiiA I'IEARING,
AT TJIE ARBITRATORS' SOLE DISCRETio,N) PRE-JlEARJNG MOTIONS WBICRAR SUBSTANTIALLY
SIMILAR TO PRE-HRARING MOTIONS TO DISMISS AND MOTIONS FOR SUMMARY ADJUDICATION,
. I .
THIS ARBITRATION .PROVISION SllA.LL su,RVIVE ANY TElU\1JNA'tiON, AMENDMENT, OR EXPIRATION
OF .THE.AGREMENT IN WHICJl TBIS 1'\'0VISION IS CONTAINED, UNLESS ALLOF THE PARTIES
OTHERWISE EXPRESSLY AGREE IN WRITING. . .
TllE PARTIES ACKNOWLEDG TIIAT TJ$ AGREEMENTEVIDENCES A TRANSACTION INVOLVING
INTERSTATE COMMERCE. TilE FEDERALiffilllTRA:riON ACT SIIALLGOVERN THE HjTERPRETATION,
ENFQRCEMENT, AND PROCEtDJNGS PURSUANT 'l'O THE ARBITRATION CLAUSE OF THIS AGREEMENT,
I
THE ARBITRA:rORS, OR A MAJORITY Ol!Timl\t:, SHALL AWARD ATTORNEY'S FEltS AND COSTS TO TliE
PllEVAILINGPARTYPDRSUANTTOTHETERMSOFTBlS.AGllEEMENT. .
' . i
NEITHER THE PARTIES NOR Till ARBIThATORS MAY DISCLOSE TllE EXISTENCE, CONTENT, OR
RESULTS OF ANY ARBITRATION HEREUNI)ER WITHOUT PRIOR WIUTTEN CONSEi'oF ALL PARTIES
AND/OR COURT ORDER, ' '
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VENUE OF ANY ARJIITRATION PROCEEDll'(G HEREUNDER SHALL BE lN BEXAR COUNTY, TEXAS.
'
.THE TERM.LENDER INCLUDES ANY OTHER OwNER AND HOLDER OF THIS NOTE AND THEIR RESPECTIVE
SUCCESSORS AND ASSIGNS. TliJS NOTE IS GOVERN)ID BY APPLICABLE TEXAS LAW. EXCEPTTOinm EXTENr THE
USURY LAWS OF TEXAS ME PRE-EMPTED BY FEDERAL LAW, INWIDCH CASE, SUCH FEDERAL LAW SHALL APPLY.
VENUE OF ALL ACTIONS ON TillS NOTE, SHALL L)B jN BEXAR COUNTY, TBXAS,AND ALL OBUOATIONS REQUJRED
HEREIN ARE PERFORMADLE IN llEXAR COUNTY, TJll[AS.
I
If loan proooeds are to be- used primarily for personal, famlly[ot household use, the following not!. co shall apply:
NOTICE TO CONSUMERS: UNDER TEXAS LAW lF vdu CONSENT TO TillS AGREEMENT YOU MAY DE SUBJECT TO A
FUfURE RATE AS HIGH AS 24% ANNUAL PERCENTAGE RATE, OR THE STATE USURY CEILlNO, WIDCHEVER IS LESS.
'
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. lfthis Note is to be secured by a lienon a dwelllng located mi the hereinafter dest:rlbed prop!:rty, then the following notice shall apply:
. f . 1
THE MAXIMUM lNT!lREST RATE SHALL NOT EXCEED TWENTY-FOUR PERCENT (24%) PER ANNUM, OR THE USURY
CEILING, LESS... . ' ; . . ' . . . I
Payment hereof is seclJted 'by.a vendor's lletl retained in Deep. o[ even date .herewith, to tp_e Boqower,anQ is additiooaUy secured by a
Deed of Trust, S:urity AgreeQJ.eot aodFinaucing qf eveu date herewith, executed by the Borrower and/or Grantors thereof to
teve Edlund , Trustee, the following described property:
See Exhibit "A
11
attached hereto and made a' nart hereof for all purposes.
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THIS WRITTEN AGREEMENT REPRESENTS THE FINALAGREEMENTB.ETWEENTHE PARTIES AND MAY NOT
DE CON';I'RADlCl'ED :BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR ORALAGREEl\1ENT OF
THE PAitTIES.

"l3orrower" STJiCI PROPERTIES1 LTD. , ''Borrowcf'
By:
Title:
Address:

Jly:
'JYpcdNamo:
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. 'fitle:
Address:
I
A TEXAS LnttTED PARTNERSHIP
S'FA f:rLe,
By:
i A TExAS
TIUo:
WALTER JENSEN
1
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SOLE !tiBER
2001 Souttl Laredo street
&\n Antonio, Texas 78207
''Bottower"
By:
Typed Name:
Title:
Address
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ALLONGE TO REAL ESTATE LIEN NOTE
This Allonge is made a parr of that certain real estate lien note In the original principal amount
of TWO MILLION FOUR HUNDRED THOUSAND AND N0/1 00 DOLLARS ($2,400,000.00)
("Note') dated of even date herewith and executed by STACI PROPERTIES, LTD.
("Borrower') and being due and payable to International Bank of Commerce ("Lender').
The Note Is payable as follows: . I
(a) The principal of the Note, together with accrued and unpaid Interest on the
unpaid principal balance of the Note, shall be due and payable (I) In mdpthly
. installments, in an amount equal to Twenty Thousand Three Hundred! and
No/1 00 ($20,300.00) each, the first such Installment to be due and payab e on
_Aprti..:1:__, 2005, and the remaining such Installments to be due and payable on
the G."'"'" (212l>) day of each succeeding calendar month thereafter prior to .
March _2:._., 2010 (the 'Maturity Date'). Payments are based on a fifteen (15)
year amortization schedule and sha)l be subject to change to reflect changes In
the Interest rate as set forth In the Note.
(b) On the Maturity Date the entire unpaid principal balance of this Note and all
accrued and unpaid Interest on the unpald principal balance of this Note shall be finally
due and payable. . \
Notwithstanding anything contained herein to the contrary or .In any other loan document
evidencing or the Loan, in the event of any nonmonetary default, Lender shall deliver
to Borrower written notice of such default and Borrower shall have thirty (!?0) days after
receipt of said notice to cure such default before Lender may proceed with acceleration
and/or foreclosure or pursue any other remedies. If Borrower timely cures such default, then
no event of default shall be deemed to have occurred.
All notices required hereunder shall be delivered to Borrower by Certified Mail, Receipt
requested, and shall be deemed delivered three (3} days after deposit with the United States
Mall by Lender, with proper postage affixed.
. . . I
THIS LOAN IS PAYABLE IN FULL ON MARCH_._, 2010. YOU MUST REPAY THE
ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THENiLJUE. THE
BANK IS UNDER NO OBLIGATION TO REFINANCE THE LOAN. YOlJ WOULD,
THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS: YOU MAY
OWN, OR YOU WOULD HAVE TO FIND A LENDER, WHICH MAY BE THE BANK YOU
HAVE THIS LOAN WITH AT MATURITY. YOU MAY HAVE TO PAY SOME OR ALL THE
CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN
REFINANCING FROM THE.SAME BANK. i
EXECUTED this Z day of March, 2005.
LENDER:
COMMERCE
BORROWER:
STACI PROPERTIES, LTD.,
BY:
f'IIPANY
10236?.,1
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EXHIBIT "A"
LEGAL DESCRIPTION
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Tract 1: .
5.779 acres of land situated In the City of San Antonio, Bexar Texas,
being Lot 4, Lot 5, Lot 6, Lot 7, Block 39, NCB 3698, Edgewood
unrecorded Plat flied In Bexar County Tax Assessors Office Bexar County,
Texas, and a portion of Lot 53, Block 39, NCB 3696, Las Villas De as
recorded In Volume 9555, Page 72, Deed and Plat Rooords of Bexar County,
Texas; said 5.779 acre tract of land being more particularly described by
metes and bounds as fo II ows:
BEGINNING, at a found 1/2 Inch Iron rod on the soutnerly right of line of
Merida Street, for the northeasterly of said Lot 53, Block 39,
being the'northwesterly corner of said LOt 4;
THENCE, s 84' 22' 25" E, along tho southerly right of way line of Mor)c!a
Street, a distance of 706.56 feet to a found 1/2 Inch Iron rod on the !
northwesterly right of way lllne of The Pacific Railroad: j
THENCE, along the arc of a. curve to the left having a radius
of 2865,00 feet, a central angle of 14' 22' 30", an arc length of 718.80 feet
and a chord bearing: s 43' 18' 41" W, 716.91 feet, to a found 112 lnchi iron
rod:
THENCE, s 35 02' 54" W, continuing along the northwostor.ly right of way line
of' The Union Pacific a distance of 183.64 'feet to a set 1/2)nch
Iron rod on t.ha northerly right oTway line of Ceralvo Street for the
southeasterly corner oF said Lot 53; \
'rt!ENCE, N 84 10' 44""W, along the right of way line of
Street, a distance of 35 .. 88 feet to a set 1/2 Inch Iron rod;_
THENCE, crossln9 said Lot 53, Block 39, the rollowlng courses;
N os '34' '47" E, a distance of 90.14 reet to a set 1/2 lneh Iron rod;
S 83 48' 09" E, a distance of 10.'75 reet to a set 112 Inch Iron rod; I
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N 06' 11' 51" -E, a distance or feet to a set 1/2 Inch Iron rod;
N 48' 09" w, a distance of' 13.64 feet toa set 1/2 Inch
Iron rod;
N os 1-1 51_, E,
a distance of_ 230.44 f'eet t.o-a set 1/2 ltlch Iron rod:
N ea. 48' 09" w,. a distance or 23.07 reet to a set1/2.
N os 11' 511f E, a distance of 18.94 feet to a set 1/2
line of". said l,.ot 53, Block 39;
Inch ,Iron rod; '
inch Iron rod on\ the northerly
i
THENCE! N 84' 25' 13" W, along the tine of sa Itt Lot' 53, Block 39, a distance
of 120;01 f'eot to a round 1/2 Inch Iron rod 'for an Interior angle corner of' said Lot
53, Block 39, same being. the southwesterly corner of said Lot 4;
THENCE, U OS" 14' 30" E, along tile easterly line of said Lot 53, Block lag, a distance
of 363.95 feet to the POINT OF BEGINNING or herein described tract, and containing
5. 779 acres of land, more or Jess.
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lract 2:
EXHIBIT "fJ:'
(continued}
the East 8.31 Feet or Lots 57 through 65, Block 40, NCB 3699, all or Loi 17, Block 40,
NCB 3699; Edgewood Addition, as recorded In Volume 1625, 'Page 317, Deed and Plat
Records of Bexar County, Texas, and all of lot. 16_, Block 40, NCB 3699, .A. Stauffer &
H . G, Deviney Subdivision as recorded In Volume 3975, Page 223, Deed and1Piat Records.
of aaxar county, Texas; said 2.069 acre tract of land being more particUlarly
described as fof lows: . \
BEGINNING, at a 1/2 Inch Iron rod set on-the northerly right of way of Merida
Street, said 1/2 .Inch Iron rod-being N 94 22' 25" W, 8.31 feet from the southeast
corOer of saId lot 65 i j
!HENCE, N 06' 14' 53" E, 'crossing said tOts 57 ,through as, a lock 40, westerly
line of that certain tract of land conveyed to West Coast ProdUce Inc. as
recorded In VolUme 7133, Page 968, Official Pub I Jo Records of" aexar Cou11ty, Texas, a
'distance of 364.13 feet to :a 1/2 Inch Iron rod setj 1
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THENCE, S 64
9
21' 53" E, along the northerly line of' said Lot 57, at a
1
dlstonce of'
8,31 feet passing the northeast corner of lot 57, same being the northwest corner of
Lot 17, at a distance of 127.92 feet passing the northeast corner of Lot 17. same
being the northwest corner of said Lot 18, In all a total distance of 247.52 feet to a
1/2 Inch Iron rod set for the northeast corner of said lot 18, same being the
northwest corner of Lot 19;
. I
THE:fJCE, S os 14' 53" W, along the common boundary line between Lot 18 and lot 19, a
distanCe of 364,09 f"cet to a 1/2 Inch Iron rod set on the northerly right of way line
of Merida Street, for the southeast corner of said Lot 18, same being th8 southwest
corner of Lot 1,9; . { .
THENCE, N 54 22' 25
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W, s.Jong the northerly right of way I I no of Uerlda Street, at a
distance of.119.60 feat passing the 'corner of tot 18, same being the
southeast corner of Lot 17, at a distance of 239,21 feet passing the southwest corner
of lot. 17, same being the southeast corner of Lot 65, In all a total distance of
247.52 feSt to the POINT OF BEGINNING of herein described tract, and conialnlng 2.069
acres of land, more or less. . I
Tract 3: . J
lot 17, Block 3, flew City Block A36, GJ II Is Hood, Llnlt 2, an addition to tthe City of
San Antonio, Bexar qounty, Texas according to the map or plat thereof, reCorded In,
Volume 9512, Page 91, Dead and Plat Records of County, Texas, SAVE EXCEPT
that portion conveyed to the City of San Antonio In Volume 5202, Page 1204, OFficial
Public Records of Reel Property of Bexar County, 'fexas, ' . \.
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ALLONGE TO REAL ESTATE LIEN NOTE
This Allonge Is made a part of that certain real estate Ben note In the original prhjplpal amount
of TWO MILLION FOUR HUNDRED THOUSAND AND N0/100 DOLLARS ($2,400,000.00)
("Note') dated of even date herewith and executed by STACI PROPERTIES, LTD.
('Borrower') and being due and payable to International Bank of Commerce rLender").
The Note Is payable as follows:
(a) The principal of the Note, together wllh accrued and unpaid Interest on the
unpaid principal balance of the Note, shall be due and payable (I) In monthly
Installments, in an amount equal tci Twenty Thousand Three Hundre(l and
No/1 00 ($20,300.00) each, the first such installment to be due and payaple on
Apnl..1:_, 2005, and the remaining such Installments to be due and payable on
the .,- day of each succeeding calendar month thereafter prtor to
March ..2::_, 2010 (the "Maturity Dale'). Payments are based on a fifteen (15)
year amortization schedule and shall be subject to change to reflect changes In
the Interest rate as set forth In the Note. ;
due and payable. . .
(b) On the Maturity Date the entire unpaid balance of this and an
accrued and unpaid Interest on the unpaid principal balance of this Note rail be finally
Notwithstanding anything contained herein io the contrary or In any other loan document
evidencing or securing the Loan, in the event of any nonmonetary default, Lender shall deliver
to Borrower written notice of such default and Borrower shall have thirty (30) days after
receipt of said notiCe to cure such default before Lender may proceed with 'acceleration
and/or foreclosure or pursue any other If Borrower timely cures such default, then . ,
no event of default shall be deemed to have occurred.
All notices required hereunder shall be delivered to Borrower by Certified Mall, Return Receipt
requested, and shall be deemed delivered three (3) days after deposit with the United States
fylail by Lender, with proper postage affixed .
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THIS LOAN IS PAYABLE IN FULL ON"MARCH 2010. YOU MUST l;lEPAY THE
ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE. THE
BANK IS UNDER NO OBLIGATION TO REFINANCE THE LOAN. YO.U WOULD,
THEREFORE, BE REQUIRED TO.MAKE PAYMENT OUT OF OTHER ASSETS YOU MAY
OWN, OR YOU WOULD HAVE TO FIND A LENDER, WHICH MAY BE THE"BANK YOU
HAVE THIS LOAN WITH AT MATURITY. YOU MAY HAVE TO PAY SOME OR ALL THE
CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN
REFINANCING FROM THE SAME BANK.
EXECUTED this .2:_ day of March, 2005.
LENDER:
BORROWER:
BY:
OMPANY
102362.1
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Tract 1:
EXHIBIT "A"
LEGAL DESCRIPTION
:- ..
5.779 acres of land situated In the City of San Antonio, Bexar lexas,
being Lot 4f Lot 5, Lot 6f Lot 7, Block 39, NCB 3698, Addition,
unrecorded Plat fl led In Bexar County Tax Assessors Office Bexar County,
Jexas, and a portion Of Lot 53, Block 39, NCB 3698, Las Villas De M'er.lda as
recorded In Volub& 9555, Page 72, Deed and Plat Records of Bexar County,
Texas;' said 5.779 acre tract of land being more particularly described by
metes and bounds as fo I I ows:
BEGINNING, at a found 1/2 Inch Iron rod on the southerly right way line of
Merida Street, for the northeasterly corner of sald Lot S3, Block 39,, same
being the'northwesterly corner of said Lot 4;
THENCE, 5 64'22' 25" E, along the southerly right of way line of Merida
Street, a distance of 706.06 'feet to a found 1/2 Inch iron rod on the
north\'Jesterly right of way I line of' The Union Pacific Railroad;
THENCE., Southwostorly, a IonS the arc of a curve to the left having a;
of' 2865,00 feet, a central angle of 14 22' 30", an arc length of 718.80 feet
and a chord bearing: 'S 43 18' 41" W, 716.91 feet, to a found 1/2 Inc!' Iron
rod;
WENCE, S 36' 02' 54" W, continuing along the northwesterly right of. way line
oF The Union Pacific tr-aod, a distance of' 183.64 "feet to a set 1/2; Ttlch
Iron rod On the northerly right oF way line of' Ceralvo Street f'or the
southeasterly corner of said Lot 53;
THENCE, N 84 10' 44" W, along the northerly right of way llne of Ceralvo
Street, a distance of 35,68 feet to a set 1/2 Inch Iron rod;
THENCE, crosslnQ said Lot 53, Block 39, the following courses;
N 05' 34' '47" E,
a dIstance of 90.14 Teet to a set 1/2 Inch Iron rod;
s 63' 48' 09" E, a
distance of 10.75 feet to a set 1/2
Inch Iron rod;
H 06' 11' 51" E,
a distance of 21,99 feet to a set 1/2 Inch Iron rod;
N 83' 48,' 09" w,

distance of 13.64 feet toa 1/2
Inch iron rod;
N 06' 11'
51Q E,
a distance or 230.44 foot to a set 1(2 Inch Iron rod;
N ea 46' W'W, a distance oF 23,07 reot to n sot 1/2 Inch .Iron rod;
N 06' 11' 51" E, a distance of' 18.94
line of said Lot 53, Block 39;
f'eet to o set 1/2 Inch Iron rod on the northerly
1tlENCE,. N 84" 25' 13" W, along tile northerly 1 Jne or Lot' 53, Block 39, a distance
of 120:01 f'c;tet to a found 1/2 Jnch Iron r-od for an Interior angle corner of' said Lot
. 53, Block 39, same being the southwesterly conner of said lot 4;
THENCE, N 06' 14' 30" E, along the easterly t lne of said Lot 53, Block 39, a distance
of 363,95 feet to the POINT OF BEGINNING of herein described tract, and containing
5.779 acre5 of land, more or Jess.
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EXHIBIT "A"
(continued)
Tract 2: .
2.069 acres of land situated in the City oF San Antonio, aexar County, Texas, being
the East 8.31 feet of Lots 67 65, Block 40, NCB 3699, a! I of lot 11, Block 40,
NCa 3699, Ed{Jewood Addition, as recorded In Volume 1625, 'Page 317, Deed and Plat
Records of Bexar County, Texas, and all of Lot 18, Block-40, NCB 3699, H.A. Stauffer &
H.G. Deviney Subdivision as recorded In Volume 3975, Page 223, Deed and Plat Records
of Bexar County, Texas; said 2,069 acre tract land befog more particularly
described as follows:
BEGINNlNG, at a 1/2 Inch Iron rod set on-the northerly right Of way line of Uerlda
Street, said 1/2. Inch Iron rod baing tl 84* 2Z' 25" W, 8.31 feet from tho southeast
corner of said lot 65;
THENCE, N os 14' 53" E, crossing said LOts 57.through 65, Block 40, along the westerly
line oF that certain tract of land conveyed to West Coast Produce Company, lne, as
recorded In Volume 7133, Page 9_68, Official Pub I Jc Records of Bexar County, Texas, a
distance of 364.13 feet to .a 1/2 Inch Iron rod set; :
THENCE, s 84 21
1
53" E; along the northerly line of' said Lot 57, at a dtstance o"F
8.31 feet passing the northeast cornerof Lot 57, same being the northwest corner of
Lot 11, at a distance of 127.92 feet passing the northeast corner of lot 17, same
being the riorthwest corner of said lot 18, in all a total distance of 247,52 feet to a
1/2 Inch l ron rod set f'or the northeast corner or said Lot 18, same being the
northwest corner of Lot 19:
THENCE, 5 Os 14
1
53u W, along the eommon boundary I ine Lot 16 and Lot 19, a
distanCe of' 364.09 f"eet to. a 1/2 Inch iron rod set on the northerly right of way line
or Merida Street, for southeast corner of said lot 18, same being the southwest
corner of Lbt 19;
THENCE, N 84" 22' 25" W, along the northerly right of way line of Merida Street, at a
distance of.119.60 feet passing the southwest corner of Lot 18, sana baing thO
southeast corner of Lot.17, at a distance of 239,21 passing the southwest corner
of lot 17, same being the southeast corner of Lot 65, In all a total distance of
247,52 feet to the POINT OF BEGINNING of herein described tract, and containing 2.069
acres of land, or le5s.
Tract 3:
Lot 17, Block 3, New City Block A36, Glflfs Hood, Unft 2, an addition to the City of
San Antonio, Bexar County, Texas according map or plat thereof, recorded In,
Volume 9512, Page 91, Dead and Plat Records of Bexar County, Texas, SAVE AND EXCEPT
that portion convoyed to the Cfty of San in 5202, Page 1204, Official
Public Records o"f Real Property of" Bexar County, Texas.
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togetlw w!th any and alla\lCtUed and llllj>a!d lntorest
and I or lato obJUges .
The failuto of:Borrowcrto pay any of the ofprlncipal
or any interest thereon or accrued lato charges. when tho samo
duo and payablo shsll petrnit Lender, at its to accelerate
the maturity, without notico to Borrower, of all, or any portion, of
tbo outstM.ding unpiltd balaneo and all aooNed e.nd
unpaid interes4 and aU accrued and unpaid late under the
Note I tbts Agreertient, whereupon the same shall be d!J.o and
payab!clrnrn<diatcly.
The starting tato of interest wl.li bo 4.75
pet anilum l)eginning on
l'h!PF+V4%
FinalMatwityDote: A priUS, :1011
% l3orrowet :renews arld extends the Note. and any and atl'Seoorlty
Agreements, seoorlty lnlercots, !leeds of Trust, i.;,lv<>< otlw< llao
created by Borrower in favor oflntem.attonal BMk of Commerce.
Except as provided herein. all other tertn$ and oopdllions of the
Note, and all Be=lty Agre=en<s, se<llrlty Jnterests, Deeds of
'J)usts, and/or other lions c:red by Deed$ ofTJ\tsts nndlor-other
Loan lJocumonts, if any; CQlllittue P IUld tomain In full
force and effect.
ll<>rr<iwer promlse:s to pay to the order of lntemational )lank of
Commet 1M on .tho Noio
tc<:otding to the tenus hereof together with \\$ lt r.eeroes
on tho outsttmding unpaid prlncWBl balance until paid. In no
event sball t:b:on.tc be paid on tb uupaid
balanco bo 10$Sth1!n Four and thr .. quortu pc<nt (4.15%)
pdt-allltUlU, nor tnruO than 1helll.!Wrnwn legal rate. a Uowed by
applicable law.
To tho extent allowed by law, U' any.pa}1nttlt duo llndet tho
Notelthl:s agreement is moto 1han ten (10) days lato, BGll'OWet
wlll be charged a latts charge of :five percent (5%) of tho lato
payment amount:. both principal and tnttiest:. Tho RJatc charge
maybe without notico, and shall bc inunodi.atcly dUo and
payablo. -
B.Otrower
Stacl Produ!, Ltd., fl. Tt:XAS Limited Pe.ttnmhip
Adi!ress
750Merida
San Antonio. Texas 78207
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TO niB I!X't!lNT ALLOWllD llY LAW, AJ:L MATURBll
UNPAID AMOUN'IS 'W)IL llEAR lN'l'ERES'r Nr TffB
t!AlqMUM LE<lAL lNTBRES'I: RATB JJLOWfiD BY
.APlUCABI.B LAW, It llpPlicablo law docs not set -a ma:drou.m
rate of intetest for matured. uupaid fuc:o_ Borrower agrees
that tho maximWl'J. rate for e.mollnls shall bo eighteen percent
. (18ll))lCI'""''""'
NO O!WiAGREJW:EN!S
rmB-'Wl!rl'r.!<NLOANAG!lEEMllNTREPRESENTS'tBE
li!NAL AGREEMENT- BFf.I'WE!<N THE PARTIES ANI>
MAY NOT BE CONTRADIC'l'ED llY EviDENCE OF
PlUOR, CONti!1>fi'ORANEOUS OR SUilS!!:QUEN't ORAL
A<JREEMEN'rS OF :rtiE PAR'rtES. TltERE ARE NO
.tiNwRtn:EN ORAL AGREEMENTS llll'l:iv'EEN 'l'Bi1.
PAllnES
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NAME: ebaol K. o
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.. LOAN AGREEMENT. ..
. This "Loan is as of . 2.. .day
(the "Effective Date") made by'and among INTERNATIONAL BANK OF COMMERCE
:. (the "Lender"), STACI PRODUCE, LTD., A JEXAS LIMITED PARTNERSHip ("Staci
... Produce"), STACI PROPERITES, LTD., ATEXAS LIMITED PARTNERSHIP. ("Staci =.
. Properties"), ATLED; LTD., A'TEXAS LIMITED PARTNE;RSHIP ("Ailed"), DELTA
.. . PRODI:JCE, l.P., A TEXAS LIMITED PARTNER.SHI.P ("Delta Proctuce"), and WALTER .. .
. . . . SCOTT JENSEN,AN INDIVIDUAL and JAMIE JENSEN; AN 1[\JDIVIDUAL ("Guarantor", .
/ < . .. .whether one or inore),:with respectio:.. , , . .' ,. ...... : . : . ..
. . . : . . . . . ' ' (i) loan of date in the priri'cipal . . '
:
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1!.\9q .. : (9. TWO MILLION.ANDN0/1 00 DOLLARS ($2,000,000.00) to StaciProduce
from Lender (the "Staci Produce Loari");. . : . '. . ' . ..
. (ii) . . tftat certain loan of even daie herewith in ihe principal amou'nt of .
TWO MILLION F.OUR HUNDRED THOUSAND AND N0/100 DOlLARS ..
(j)'($2,400,000.00) .to Staci Properties from Lender'(the "Staci Properties :
Loan'j).: . . . . :- . . .'
(iii) that certain loan dated March 23, 2Q01 in the original principal amount of .
TWO.MILLIONEIGHT HUNDRED EIGHTYTHOUSAND AND N0/100 .
@.DOLLARS {$2,8?0,000;00) to Atled from Lender {the "Ailed Loan'); and .
that certain line of c:redit established May 1, 200:3 in the original principa)
amount' of SEVEN HUNDRED FIFTY THOUSAND AND N0/100
L\ -:t-1-0.
. . ; (iv)
c;\C\ TO .DOLLARS ($750,ooo.oo) to Delta Produce from .Lender :(the ."Delta
. produce Loan") ... l oc. . , . . . . . . . :. . . .' . . :
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ARTICLE I
. .

For this .. the. :have {he ..
. meanings assigned to them.' . .. .
. /o'1 . by .. '
. . proceeds of the Loan.. . . ..
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1,02 Affiliate. : Theterm "Affiliate" shalf any Person thai;. directly or ..
controls, or Is controlled by or undei-common control with, another P.erson. For the. .
. .. :purposes of this deffnitiori; "control" (including the terms "controlled by''. and.''under ..
common control with"); as used with respect to any means th!'l.power to direct or
cause the direction of the management andpolicies of such Person, directly or indirectly, :
.' .:. w)1ether through the ownership of voting securities orGY contract br otherwise ....
. . . . . .. . .. . .. ... : .. ' . .. .. . . . . '
1.03 Aimual Fin.ancial The term "Annual Financial shall
the annual Certified financial statements of a Person, asof the end of.such Person's fiscal
year (qeing the Fiscal Year unless otherwise designated by such Person for fedenillncome
tax purposes), including all notes. thereto, which statements shall a balance sheet.
1 02322.5 .. . '1 .
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LOAN AGREEMENT
This Loan Agreement (the "Loan Agreemenf') is dated as of the ..1::__ day of March,
2005 (the "Effective Date") made by and among INTERNATIONAL BANK OF COMMERCE
{the 'Lender"), STACI PRODUCE, L TO., A TEXAS LIMITED PARTNERSHIP {"Staci
Produce"), STACI PROPERITES, LTD., A TEXAS LIMITED PARTNERSHIP ("Staci
Properties"), ATLED, LTD., A TEXAS LIMITED PARTNERSHIP ("Atled"), DELTA
PRODUCE, L.P., A TEXAS LIMITED PARTNERSHIP {"Delta Produce"), and WALTER
SCOTI JENSEN, AN INDIVIDUAL and JAMIE JENSEN, AN INDIVIDUAL {"Guarantor",
whether one or more), with respect to:
(i)
(ii)
{iii)
(iv)
that certain loan of even date herewith in the original principal amount of
TWO MILLION AND N0/1 00 DOLLARS {$2,000,000.00) to Staci Produce
from Lender (the "Staci Produce Loan");
that certain loan of even date herewith in the original principal amount of
TWO MILLION FOUR HUNDRED THOUSAND AND N0/100 DOLLARS.
($2,400,000.00) to Staci Properties from Lender; (the "Staci Properties
Loan");
that certain loan dated March 23, 2001 in the original principal amount of
TWO MILLION EIGHT HUNDRED EIGHTY THOUSAND AND N0/100
DOLLARS ($2,880,000.00) to Ailed from Lender (the "Atled Loan''); and
that certain line of credit established May 1 , 2003 in the original principal
amount of SEVEN HUNDRED FIFTY THOUSAND AND N0/1 00
DOLLARS ($750,000.00) to Delta Produce from Lender (the "Delta ~ ~ ' ~ ' )
Produce Loan"),
ARTICLE I
DEFINITIONS
For purposes of this Loan Agreement, the following terms shall have the respective
meanings assigned to them.
1.01 Advance. The term "Advance" shall mean a disbursement by Lender of any of the
proceeds of the Loan.
1.02 Affiliate. The term "Affiliate" shall mean any Person that, directly or indirectly,
controls, or is controlled by or under common control with, ariother Person. For the
purposes of this definition, "control" (including the terms "controlled by'' ani:! "under
common control with"), as used with respect to any Person, rrieans the power to direct or
cause the direction of the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities or bY contract or otherwise.
1.03 Annual Financial Statements. The term "Annual Financial Statement" shall mean
the annual Certified financial statements of a Person, as of the end of such Person's fiscal
year (being the Fiscal Year unless otherwise designated by such Person for federal income
tax purposes),.including all notes thereto, which statements shall include a balance sheet
102322.5 1
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as of the end of such fiscal year, and an income statement, all setting forth in comparative
form where applicable the corresponding figures from the previous fiscal year, all prepared
in conformity with GAAP consistently applied, except that Annual Financial Statements of
individuals do not have to be in conformity with GAAP so long as they are in a form
otherwise acceptable to Lender.
1.04 Borrower. The term "Borrower shall mean (i) Stacl Produce, (ii) S"taci Properties,
(iii) Ailed, and (iv) Delta Produce, collectively.
1.05 Borrowing Base: The term "Borrowing Base" means the sum of (i) eighty percent
(80%) of all Eligible Accounts Receivable and (ii) fifty percent (50%) of all Inventory ot
Borrower.
1.06 Business Day. The term "Business Day" shall mean a day when the main office of
Lender open for business in San Antonio, Texas.
1.07 Capital Expenditures. The term "Capital Expenditures" shall mean all expenditures
deemed capital expenditures as evidenced by Borrower's financial statements for any
given period during the term of the Loan.
1.08 Cash Flow Coverage Ratio. The term "Cash Flow Coverage Ratio" shall mean, with
respect to any period, the ratio of: (a) the sum (i) the Net Income of Borrower for such
period, (ii) interest expense deducted in determining such Net Income, (iii) depreciation and
deferred taxes deducted in determining such Net Income, and (iv) other noncash items
deducted from revenue in determining such Net Income, to (b) the sum of (I) Current
Maturities of Long Term Debt during such period, (ii) total interest expense of Borrower
(including capitalized interest) for such period, (Ill) dividends paid to Borrower's partners
during such period, and (iv) advances to Borrower's, partners or employees during such
period and capital expenditures during such period.
1.09 Cash Flow Recapture Amount. The term "Cash Flow Recapture Amount" shall
me.an fifty percent (50%) for the first three Loan Years and seventy-five percent (75%) for
the last two Loan Years of (a) the sum of (i) all Net Income of Borrower for such period, (ii)
depreciation and deferred taxed deducted in determining such Net Income and (iii) interest
expense deducted in determining such Net Income less (b) the sum of (i) Current
Ma.turities of Long Term Debt made during such period and (ii) total interest expense of
Borrower (including capitalized Interest) for such period.
1.1 0 Certified. The term "Certified" shall mean certified as true and correct by the Person
or a duly authorized officer or representative of the Person providing the Financial
Statements or other financial information to Lender.
1.11 Chapter One. The term "Chapter One" shall mean Chapter One of the Texas Credit
Code, as in effect on the date the document using such term was executed.
102322.5 2
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1.12 Collateral. The term "Collateral" shall mean all property of Borrower, tangible or
intangible, real, personal or mixed, whether now owned or hereafter acquired, and now or
hereafter subject to or Intended to be subject to the Security Instruments.
1.13 Consolidated. The term "Consolidated" shall, with respect to any period, mean the
consolidation of financial information of Borrower and Affiliate(s).
1.14 Corporation. The term "Corporation" shall mean corporations, partnerships, joint
ventures, joint stock associations, business trusts and other business entities.
1.15 Current Maturities of Long Term Debt. The term "Current Maturities of Long Term
Debt" shall mean all principal sums owed during the next twelve (12) month period on
Borrower's long term debt (including capital lease obligations) as reflected in Borrower's
Certified Annual Financial Statements or monthly interim Financial Statements, consistently
applied,_ and in every event In accordance with GAAP.
1.16 Current Assets. The term "Current Assets" shall mean to the extent permitted by
and as determined In accordance with GAAP, shall include all (1) cash on hand or In transit
or on deposit in any bank or trust company which has not suspended business; (2)
accounts receivable; and (3) such other assets as, In accordance with GAAP, would be
included in " c u r r ~ n t assets"; all after deduction of adequate reserves in each case where a
reserve is proper under GAAP; provided, however, that, notwithstanding the foregoing, in
computing Current Assets there shall be excluded (a) all Investments; (b) all franchises,
licenses, permits, patents, patent applications, copyrights, trademarks, trade names, good
will, experimental or organizational expense and other like intangibles; (c) any assets which
are pledged or encumbered as security for or for the purpose of paying any obligation
(other thari the Notes) which is not included in Current Liabilities; and (d) all loans,
advances and other receivables from officers, stockholders, directors or employees.
1.17 Current Liabilities. The term "Current Liabilities" shall mean all (a) Indebtedness
maturing on demand or within one year after the date as of which such determination Is
made; (b) final maturities and prepayments of Indebtedness and sinking fund payments
required to be made in respect of any Indebtedness within one year after said date; (c)
taxes payable or accrued as estimated and deferred income taxes due for the fiscal year in
which such determination is made arising from differences in reporting depreciation and
other non-cash charges for tax purposes and for corporate financial purposes; (d) accrued
liabilities; (e) payments required to be made with respect to capitalized leases within one
year of said date, and (f) all other items which in accordance with GAAP would be included
as Current Liabilities.
1.18 Debt. The term "Debt" shall mean Borrower's total liabilities, determined in
accordance with GA.A.P.
1.19 Debtor Relief Laws. The term "Debtor Relief Laws' shall mean any applicable
liquidation, conservatorship, bankruptcy, moratorium, insolvency, reorganization, or similar
Jaws affecting the rights or remedies of creditors generally, as in effect from time to lime.
102322.5 3
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1.20 Eligible Accounts Receivable. The term "Eligible Accounts Receivable" shall mean
accounts receivable owed to Borrower, which are no more than sixty (60) days delinquent.
1.21 Event of Default. The term "Event of Default' shall mean:
(a) A failure by Borrower to make any payment of principal or interest on the
Note when due, whether matured by acceleration or otherwise;
(b) A failure by Borrower or Guarantor to comply with any of the other terms or
conditions specified herein or in any other Security Instrument;
(c) The incorreciness of any material representation or warranty made by.
Borrower or Guarantor to Lender in any of the Security Instruments;
(d) The appointment of a receiver, trustee, custodian, conservator, or liquidator,
or other similar official for Borrower or Guarantor, any of the Property, or any other property
of Borrower or Guarantor;
(e) Borrower or Guarantor shall generally not pay their debts as they become
due or shall admit in writing thefr inability to pay their debts, or shall make a general
assignment for the benefit of creditors;
(f) . Borrower or Guarantor shall commence any case, proceeding or other action
seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of
Borrower or Guarantor of their debts under any Debtor Relief Laws;
(g) Any case, proceeding or other action commenced against Borrower or
Guarantor seeking to have an order for relief entered against Borrower or Guarantor, as
the case may be, as debtor, or seeking a reorganization, arrangement, adjustment,
liquidation, dissolution or composition of Borrower or Guarantor of their debts under Debtor
Relief Laws, or seeking an appointment of a receiver, trustee, custodian or other similar
official for Borrower or Guarantor for all or any of the Collateral, or any other property of
Borrower or Guarantor, and such case, proceeding or other action results In the entry of an
order for relief.
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(h) Borrower or Guarantor shall have concealed, removed, or permitted to be
concealed or removed, any part of its property, with intent to hinder, delay or defraud its
creditors or any of them, or made or suffered a transfer of any of its property which may be
fraudulent under any bankruptcy, fraudulent conveyance or similar law; or shall have made
any transfer of its property to or for the benefit of a creditor at a time when other creditors
similarly situated have not been paid; or shall have suffered or permitted, while Insolvent,
any creditor to obtain a lien upon any of its property through legal proceedings which is not
vacated within sixty (60) days from the date thereof;
102322.5 4
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(i) An occurrence of any other event or condition described in the Note, this
Loan Agreement or any other security instrument that would result in an acceleration of the
Note or constitute an event of default thereunder; -
0). The liquidation, termination, dissolution, or death of Borrower or Guarantor;
(k) If Borrower or Guarantor is a partnership, a default by any general partner
under Its partnership agreement; or
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(I) An occurrence of any event or condition described in the loan documents
evidencing any other indebtedness of Borrower or Guarantor to Lender that would
constitute an event of default thereunder.
Notwithstanding anything set forth herein to the contrary, the occurrence of any
event set forth in items (b), (c), (i) or (I) above shall not constitute an event of default unless
Borrower fails to remedy such matter within thirty (30) days after Borrower's receipt of
written notice from Lender advising Borrower of its failure to comply with such provision or
the occurrence of any event described in such subparagraph.
1.22 Financial Statements. The term "Financial Statements" shall mean such balance
sheets, profit and loss statements, reconciliations of capital and surplus, changes In
financial condition, schedules of sources and applications of funds, and other financial
information of Borrower and of Guarantor, as shall be required by Lender, from time to
time, which statements of the Borrower shall be prepared in conformity with GAAP for the
stated period.
1 .23 Fiscal Year. The term "Fiscal Year' of the Borrower means the period .commencing
January 1 of each calendar year th(ough and including December 31 of such calendar
year.
1.24 Generally Accepted Accounting Principles. The term "GAAP" shall mean, as to a
particular Person, such accounting practice as, conforms at the time to generally accepted
accounting principles, consistently applied. GAAP means those principles and practices
(a) which are recognized as such by the Financial Accounting Standards Board, (b) which
are applied for all periods after the date hereof in a manner consistent with the manner In
which such principles and practices were applied to the most recent financial statements of
the relevant Person furnished to Lender, and (c) which are consistently applied for all
periods after the date hereof so as to reflect properly the financial condition; and results of
operations and .changes in financial position, of such Person. If a change In any
accounting principle or practiceis implemented by the Financial Accounting Standards
Board, then all reports and financial statements required hereunder may be prepared in
accordance with such change only after written notice of such change is given to Lender.
1.25 Governmental Authority. The term "GovernmentaJ.Authority" shall mean the United
States, the State, the County, the City, or any other political subdivision in which the
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Collateral is located, and any other political subdivision, agency, or instrumentality 1
102322.5 5
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exercising jurisdiction over Borrower, Affiliate, or the Collateral.
1.26 Governmental Requirements. The term "Governmental Requirements" shall mean
all laws, ordinances, rules, and regulations of a Governmental Authority applicable to
Borrower, Affiliate, or the Property.
1 .27 Guarantor. The term "Guarantor" shall mean all parties named Guarantor in the first
paragraph of the Loan Agreement.
1.28 Guaranty. The term "Guaranty" shall mean each Guaranty, in Proper Form, to be
executed by Guarantor in favor of Lender.
1.29 Indebtedness. The term "indebtedness" shall mean and include (1) all items which
in accordance with GAAP would be included on the liability side of a balance sheet on the
date as of which Indebtedness is to be determined (excluding capital stock, surplus,
surplus reserves and deferred credits), (2) all guaranties, endorsements and other
contingent obligations in respect of, or any obligations to purchase or otherwjse acquire,
indebtedness of others, and (3) all indebtedness secured by any Lien existing on any
interest in Collateral owned subject to such Lien whether or not the indebtedness secured
thereby shall have been assumed by Borrower; provided that such term shall not mean or
include any Indebtedness in respect of which monies sufficient to pay and discharge the
same in full (either on the expressed date of maturity thereof or on such earlier date as
such indebtedness may be duly called for redemption and payment) shall be deposited
with a depository, agency or trustee acceptable to Lender in trust for the payment thereof
and which monies are not reflected as Current Assets of Borrower on its Financial
Statements.
1.30 Insurance Policies. The term "Insurance Policies" shall mean:
(a) All risk insurance in Proper Form, as determined by Lender, in the amount of
at least equal to the Loan amount or in such additional amounts as Lender may require,
providing all risk coverage on the premises in which Borrower conducts its business, and, if
reasonably requested by Lender, to Include the perils of flood, earthquake, business
interruption (in the amount of $250,000.00 or more) and other risks;
(b) Liability insurance in an amount of not less than $1,000,000.00 and otherwise
in Proper Form and providing its coverage is related to its operation of the Collateral.
(c) . That certain life insurance policy issued by Jackson National Life Insurance
Company with a fact value of $2,000,000.00 Issued upon the life of WalterS. Jensen.
All insurance Policies shall be issued on forms and by companies satisfactory to
Lender and shall have a provision giving Lender thirty (30) days prior writiEm notice of
cancellation or material change of the coverage and otherwise be in Proper Form.
102322.5 6
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1.31 Lender. The term "Lender" shall mean the Lender named in the first paragraph of ,-:,-:-;)
this Loan Agreement.
1.32 Lien. The term 'Lien" shall mean any mortgage, pledge, charge, encumbrance,
security-interest, collateral assignment or other lien or restriction of any kind, whether
based on common law, constitutional provision, statute or contract, and shall include
reservations, exceptions, encroachments, easements, rights of way, covenants, conditions,
restrictions, leases and other title exceptions.
1.33 Loan. The term "Loan" shall mean the Staci Produce Loan, the Staci Properties
Loan, the A tied Loan and the Delta Produce Loan, collectively, in an amount not to exceed
the principal sum set forth in the first paragraph of this Loan Agreement
1.34 Loan Year: The term "Loan Year" shall mean each of the successive twelve (12)
month periods commencing as of the date of this Loan Agreement.
1.35 Net Income. The term "Net Income" shall have the meaning determined in
accordance with GAAP.
1.36 Net Worth. The term "Net Worth" shall mean Borrower's total assets minus total
liabilities, each to be determined in accordance with GMP.
1.37 Note. The term "Note shall mean , (i) that certain promissory note dated of even
date herewith In the original principal amount of $2,000,000.00 from Lender to Staci
Produce (the "Staci Produce Note"), (ii) that certain promissory note dated of even date
herewith in the original principal amount of $2,400,000.00 from Lender to Staci Properties
(the "Staci Properties Note"), (iii) that certain promissory note dated March 23, 2001 in th!l
original principal amount of $2,880,000.00 from Lender to Ailed (the "Ailed Note"), and .(iv)
that certain line of credit dated May 1, 20031n an amount up. to $750,000.00 from Lender
to Delta Produce (the "Delta Produce Note"), collectively, which evidences the Loan.
1.38 Person. The term 'Person" shall mean any individual, corporation; trust,
unincorporated organization, Governmental Authority or any other form of entity.
1.39 Proper Form. The term "Proper Form" shall mean In a form and substance
satisfactory to Lender.
1.40 Security Instruments. The term "Security Instruments' shall mean this Loan
Agreement, the Note, each Guaranty executed in connection with the Note, and such other
instruments or documents evidencing, securing, or pertaining to the Loan as shall, from
time to time be executed and delivered by Borrower, Guarantor, or any other party to
Lender pursuant to this Loan Agreement or otherwise.
102322.5 7
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ARTICLE II
AGREEMENTS OF LENDER
2.01 The Loan.
(a) Loan. Subject to the terms and condilions set forth herein prior to closing,
Lender hereby agrees to lend (i) TWO MILLION AND NO /100 DOLLARS ($2,000,000.00)
and Staci Produce hereby agrees to borrow TWO MILLION AND N0/1 00 DOLLARS
($2,000,000.00) in connectionwith the Staci Produce Loan; and (ii) TWO MILLION FOUR .
HUNDRED THOUSAND AND N0/100 DOLLARS ($2,400,000.00) and Staci Properties
hereby agrees to borrower TWO MILLION FOUR HUNDRED THOUSAND AND N0/100
DOLLARS in connection with the Staci Properties Loan-. Prior to the date hereof, Lender
has agreed to lend (i) TWO MILLION EIGHT HUNDRED EIGHTY THOUSAND AND
N0/100 DOLLARS ($2,880,000.00) and Atled agreed to borrow TWO MILLION EIGHT
HUNDRED EIGHTY THOUSAND AND N0/100 DOLLARS ($2,880,000.00), and (ii)
SEVEN HUNDRED FIFTY THOUSAND AND N0/1 00 DOLLARS ($750,000.00) and Della
Produce agreed to borrow up to SEVEN HUNDRED FIFTY THOUSAND AND N0/100
DOLLARS ($750,000.00).
(b) Terms. The Staci Produce Note and the Staci Properties Note shall bear
interest at the rate of the New York Prime Rate, floating, as defined in such Notes, plus
one-quarter of one percent and otherwise as set forth in such Notes.
(c) Loan Fees. .
(i) One Half of one percent of the Staci Produce Loan or $10,000.00
payable upon closing of the Loan. Legal fees paid by Borrower.
(ii) One Half of one percent of the Staci Properties Loan or $12,000.00
payable upon closing of the Loan. Legal fees paid by Borrower.
2.02 Conditions to the Loan. The obliga'tions of Lender to make the Loan are subject to
the satisfaction of the following conditions:
(a) The Borrower and Guarantor shall have delivered to Lender such certificates
and other documents relating to the transaction herein contemplated and such other
information relating to the Borrower or Guarantor, as the case may be, as the Lender may
~ ~ ~ .
(b) Lender shall have received the Security lnstr4ments, each of which shall be
in Proper Form and duly executed.
(c) Lender shall have received the Staci Produce Note and the Staci Properties
Note, which shall be in Proper Form and been duly executed by Borrower.
(d) Borrower shall have paid all Lender's expenses, including Its legal fees .
102322.5 8
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(e) Except where expressly authorized to the contrary and except as s ~ t forth on
the Schedule attached hereto as Exhibit "A", Lender shall have received satisfactory
evidence to the Lender that the Security Instruments create first, prior and enforceable
liens against the Collateral owned by Staci Produce, Ltd.; provided, however, that the real
property owned by Staci Properties, Ltd. shall be pledged, subject to the permitted
encumbrances described on Exhibit "B".
(f) Lender shall have received the Security Instruments, each of which shall be
in Proper Form and duly executed.
(g) Lender shall have received an executed copy of each consent, if any, of any
Governmental Authority or other person which, in the opinion of the Lender, is required in
connection with the transactions contemplated hereby.
(h) At the time of the Loan, all legal matters incident to the transactions herein
contemplated shall be satisfactory to Lender.
(I) . Such other items as Lender may require.
ARTICLE Ill
REPRESENTATIONS AND WARRANTIES OF BORROWER AND GUARANTOR
Borrower and Guarantor hereby represent and warrant the following to be true, as
the case may be as of the date of the execution hereof:
3.01 The Financial Statements. The Financial Statements are trua, correct, and
complete in all material respects as of the dates specified therein and fully and accurately
present the financial condition of Borrower and, if required, of Guarantor as of the dates
specified. No material adverse change has occurred in the financial condition of Borrower
or Guarantor since the dates of the Financial Statements.
3.02 Suits, Actions, Etc. There are no material actions, suits, or proceedings pending or,
to the knowledge of Borrower and Guarantor, threatened in any court or before or by any
Governmental Authority against or affecting Borrower, Guarantor, or the Property, except
as described in writing to Lender, or involving the validity, enforceability, or priority of any of
the Security Instruments, at law or in equity. The consummation of the transactions
contemplated hereby, and the performance of any of the terms and conditions hereof and
of the other Security Instruments, will not result in a breach of, or constitute a default in,
any mortgage, deed of trust, lease, promissory note, loan agreements, credit agreement,
partnership agreement, or other agreement to which Borrower or Guarantor is a party or by
which Borrower may be bound or affected.
3.03 Valid and Binding Obligation, All of the Security Instruments, and all other
documents referred to herein to which Borrower is a party, upon execution and delivery will
constitute valid and binding obligation of Borrower, and Guarantor, enforceable in
accordance with their terms except as limited by Debtor Relief Laws.
102322.5 9
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3.04 Title to the Property. Borrower holds full legal and equitable title to the Collateral.
3.05 Loan Purpose. Borrower has requested the extension of credit to be represented by
the Loan fpr business, commercial, investment or other similar purpose and not primarily
for personal, family, household or agricultural use.
3.06 Disclosure. To the knowledge of Borrower and Guarantor, there is no fact that
Borrower has not disclosed to Lender in writing that could materially adversely affect the
property, business or financial condition of Borrower or the Collateral. .
3.07 Inducement to Lender. The representations and warranties contained in the
Security Instruments are made by Borrower as an Inducement to Lender to make the Loan
and Borrower understands that Lender is relying on such representations and warranties
and that such representations and warranties shall survive any bankruptcy proceedings
involving Borrower, Guarantor, or the Collateral.
'
3.08 Organization and Power (Applicable to Corporation Borrower).
(a) is a corporation duly organized, validly existing under the laws of the state of
its incorporation and in good standing under the laws of the state of its incorporation and
the laws of the State of Texas; and
(b) has complied with all conditions prerequisite tq its lawfully doing business in
the state where the Collateral is situated; and
(c) has all requisite corporate power and all governmental certificates of
authority, licenses, permits, qualifications, and documentation to own, lease, and operate
its properties and to carry on its business as now being, and a.s proposed to be, conducted.
3.09 Organization and Power (Applicable to Partnership or Joint Venture Borrower).
Borrower is duly organized and validly existing under applicable State laws, and all Security
Instruments and other loan documents are within Borrower's powers, have been duly
authorized by all requisite action and are not in contravention of law or the power of
Borrower's partnership or joint venture agreement, as the case may be.
3.1 0 Existence of Borrower. Borrower shall preserve and keep in full force and effect
Borrower's existence, rights, franchises, and trade names.
3.11 Compliance with Laws. Borrower, the Collateral, and the use thereof by Borrower
shall comply with all laws, rules, ordinances, regulations, covenants, conditions,
restrictions, orders and decrees of any governmental authority or court applicable to
Borrower or the Collateral and its use, and Borrower shall pay all fees or charges of any
kind in connection therewith.
102322.5 10
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3.12 Financial Information.
1.
2.
3.
Borrower shall deliver to Lender, within one hundred twenty (120) days after
the end of each calendar year the income and expense statements, in
Proper Form, itemizing the income and expenses of the Borrower. Within
one hundred twenty (120) days of the filing of Borrower's tax return, Borrower
shall deliver to Lender its annual financial statement, together with a copy of
its tax return. Borrower.agrees that it shall "file its tax return in a timely
manner provided, however, the filing of such tax return shall be subject to
extensions that are filed timely.
Additionally, Borrower shall forward to Lender monthly financial statements in
Proper Form which may be unaudited, such statements tobe delivered to
Lender within fifteen (15) days after the end of each month during the term of
this Note.
Guarantor shall at least annually submit copies of its financial statement and
tax returns to Lender, which Information shall also be furnished to Lender
within one hundred twenty (120) days of the filing ofBorrower's tax return. In
the event that Borrower is in default, Lender reserves the right to from lime to
time request additional financial information of either Borrower or Guarantor .
. All financial statements of the Borrower shall be prepared in accordance
with GAAP, certified to be true and correct by the person delivering them and
otherwise be in Proper Form.
3.13 Hold Harmless. Borrower shall defend, at Borrower's own cost and expense, and
hold Lender harmless from any proceeding or claim affecting the Collateral or the Security
Instruments and other loan documents. All costs and expenses incurred by Lender in
protecting its Interests hereunder, including all court costs and reasonable attorneys' fees,
shall be borne by Borrower.
3.14 Further Assurances. Borrower, upon the request of Lender, shall execute,
acknowledge, deliver, and record such further instruments and do such further acts as may
be necessary, desirable or proper to carry out the purposes of the Security Instruments and
other loan documents and to subject the liens and security interests created thereby and
property intended by the terms thereof to be covered thereby, including specifically, but
without limitation, any renewals, additions, substitutions, replacements, Improvements, or
appurtenances to the Collateral.
ARTICLE IV
GUARANTY
The Ailed Loan and the Delta Produce Loan have been guaranteed by Walter Scott
Jensen, and evidenced by a Guaranty in Proper Form. The Staci Produce Loan and the
Staci Properties Loan shall be guaranteed by WALTER SCOTT JENSEN AND JAMIE
JENSEN and evidenced by a Guaranty in Proper Form. .::;;;}
102322.5 11
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ARTICLEV
COVENANTS AND AGREEMENTS OF BORROWER
Borrower hereby covenants and agrees as follows:
5.01 Compliance with Governmental Requirements. Borrower shall, comply with all
Governmental Requirements and deliver to Lender evidence thereof. Borrower assumes
full responsibility for the compliance ofthe Collateral with all Governmental Requirements,
notwithstanding any approvals by Lender.
5.02 Notices by Governmental Authority. Fire and Casualty Loss. Etc. Borrower shall
timely comply with and promptly furnish to Lender true and complete copies of any official
notice or claim by any Governmental Authority pertaining to the Collateral. Borrower shall
promptly notify Lender of any fire or other casualty or any notice of taking or eminent
domain action or proceeding affecting the Collateral.
5.03 Other Liens and Indebtedness. Except as otherwise provided for in this Loan
Agreement or in any of the other Security Documents, Borrower shall not suffer or permit to
exist, or permit any lien upon the Collateral, except those liens securing the Loan;
provided, however, that the Borrower may create or suffer to exist liens for taxes, but only
to the extent that payment thereof shall not at the time be due.
5.04 Costs and Expenses. Borrower shall pay when due all costs and expenses required
by this Loan Agreement, including, without limitation,
(a) all taxes and assessments applicable to the Collateral;
(b) all fees for filing or recording the Security Instruments;
(c) all fees and commissions lawfully due to brokers, salesmen, and agents of
Borrower in connection with the Loan, or the Collateral; and
(d) all reasonable fees and expenses of counsel of Lender.
5.05 Additional Documents. Borrower and Guarantor shall execute and deliver to
Lender, from time to time as requested by Lender, such other documents as Lender may
.deem to be necessary to provide the rights and remedies to Lender granted ot provided for
by the Security Instruments; provided, however, such additional documents shall not
increase or create new rights or remedies or otherwise expand the rights and remedies of
Lender under the original documents.
5.06 Inspection of Books and Records. Borrower shall permit Lender, at all reasonable
times, to examine and copy the books and records of Borrower pertaining to the Loan, in
particular related to the inventory, receivables and payables of B o r r o w ~ r .
102322.5 12
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5.07 Defense of Actions. Lender may (but shall not be obligated to) commence, appear
in, or defend any action or proceeding purporting to affect the Loan, the Collateral, or the
respective rights and obligations of Lender and Borrower pursuant to this Loan Agreement.
Lender may (but shall not be obligated to) pay all necessary expenses, including
reasonable attorney's fees and expenses Incurred in connection with such proceedings or
actions, which Borrower agrees to repay to Lender upon demand.
5.08 Payment of Claims. Borrower shall promptly pay or cause to be paid when due all
costs and expenses incurred in connection with the Collateral. Notwithstanding anything to
the contrary contained in this Loan Agreement, Borrower
(a) may contest any tax or special assessments levied by any Governmental
Authority; and
(b) may contest the enforcement of or compliance with any Governmental
Requirements, and such contest on the part of Borrower shall not be a default hereunder
and shall not release Lender from its obligations to make any Advance hereunder;
provided, however, that during the pendency of any such contest, Borrower shall furnish to
Lender an indemnity bond with corporate surety satisfactory to Lender or other security
acceptable to them in an amount equal to the amount being contested plus a reasonable
additional sum to cover possible costs, interest, and penalties, and provided further that
Borrower shall pay any amount adjudged by a court of competent jurisdiction to be due,
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with all costs, interest, and pen allies thereon, before such judgment becomes a lien on the ..
Collateral. >:<J
5.09 Liens. Except as permitted herein, Borrower sh_all not impose any other liens or
encumbrances upon the Collateral, without the prior written consent of Lender.
5.10 Cash Flow Coverage.
(a) So long as any part of the principal of or interest on the Loan or any other
indebtedness of Borrower to Lender or any Affiliate shall remain unpaid, the Borrower shall
maintain a ratio of Cash Flow Coverage Ratio for the immediately preceding twelve (12)
month period of not less than 1. 75 (the "Minimum cash Flow Coverage Ratio"), which ratio
shall be calculated on an annual basis, but shall.be tested on a rolling quarterly basis as
described below.
(b) The Cash Flow Coverage Ratio shall be determined within thirty (30) days
after the last day of each September, December, March and June during the term of the
Loan with respect to the immediately preceding twelve (12) month period (each period
referred to as a "Cash Flow Coverage Ratio Period"). Tha.__ Borrower shall provide a -
certificate, along with all necessary back-up information supporting such certificate (each
such certificate referred to as a "Cash Flow Ratio Coverage Certificate") in form and
substance satisfactory to Lender which Cash Flow Ratio Coverage Certificate shall certifY
as to the Cash Flow Coverage Ratio during the Cash Flow Coverage Ratio Period. The
Borrower covenants and agrees that the Cash Flow Coverage Ratio may not be less than
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the Minimum Cash Flow Coverage Ratio for any Cash Flow Coverage Ratio Period during
the term of the Loan.
(c) Notwithstanding anything set forth above to the contrary, the first Cash Flow
Coverage Ratio shall be determined for the nine (9) month period commencing on April1,
2005 through and including December 31, 2005 (the "Initial Period"). The Cash Flow Ratio
Coverage Certificate for the Initial Period shall be provided to Lender on or before January
30, 2006. The Borrower covenants and agrees that the Cash Flow Coverage Ratio for the
Initial Period may not be less than the Minimum Cash flow Coverage Ratio.
(d) Subsequent to the determination made for the Initial Period, the Cash Flow
Coverage Ratio shall be calculated on !lie basis of twelve month periods as set forth in
Section 5.1 0 (b) above.
5.11 Additional Payment Obligations.
(a) Borrower agrees that in addition to the regularly scheduled installments of
principal and Interest which are due and.payable as described in the Note, Borrower shall
make annual principal reductions in an amount equal to the Cash Flow Recapture Amount.
Each annual payment of Cash Flow Recapture Amount, if applicable, shall be paid to
Lender on or before the date which is ninety (90) days after the end of each Fiscal Year
during the term of the Note, commencing with the Fiscal Year ending December 31, 2005.
Each payment of Cash Flow Recapture Amount shall be accompanied by financial
statements describing, among other things, the Cash Flow Recapture Amourit.
(b) Any payment of Cash Flow Recapture Amount shall be utilized first to release
the outstanding balance under the Staci Produce Lot:J.n. At such time as the Staci Produce
Loan has been repaid in its entirety, any payment of Cash Flow Recapture Amount shall be
utilized to reduce the outstanding balance owed in the following order: Staci Properties
Loan, Atled Loan, Delta Produce Loan.
5.12 Borrowing Base. Borrower agrees that the outstanding principal balance of the
Loan at any time during the term of the Loan may not exceed the Borrowing Base.
Borrower shall provide to Lender, within fifteen ( 15) days after each calendar month during
the term of the Loan, a Certificate, along with all necessary back-up information supporting
such certificate (each such certificate referred to as a "Borrowing Base Certificate") In form
and substance satisfactory to the Lender which shall indicate that the then outstanding
balance of the Loan (the "Existing Balance") is less than or equal to the Borrowing Base.
If, at any time during the term of the Loan, the Existing Balance exceeds the Borrowing
Base, then the Borrower agrees to immediately reduce the Existing Balance so that the
Existing Balance is either equal to or less than the Borrowing Base.
5.13 Lockbox. Borrower shall ensure that, during the term of the Loan, all receivables
owed to Borrower shall be paid by all customers to a lockbox ("Lockbox'') established by
Borrower and maintained with the Lender. Prior to an Event of Default (as defined herein),
and subject to the terms of this Loan Agreement and the other Security Instruments,
102322.5 14
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Borrower shall be entitled to utilize the funds deposited in the Lockbox; provided, however,
that upon an Event of Default (as defined herein), and subject to any notice and
opportunity to cure granted to the Borrower, the Lender shall be entitled to apply funds
then maintained in the Lockbox to reduce the then outstanding delinquency or otherwise to
cure such Event of Default or, in the event of an acceleration of the Note, to reduce all or a
part of the outstanding principal balance of the Note.
. ARTICLEVI
RIGHTS AND REMEDIES OF LENDER
6.01 Rights of Lender .. Upon the occurrence of a monetary Event of Default, Lender shall
have the right, in addition to any other right or remedy of Lender, but not the obligation, to
exercise any remedy set forth in any of the Security Instruments or any right authorized by
the Uniform Commercial Code of the State of Texas. Borrower hereby appoints Lender as
the attorney-in-fact of Borrower, with full power of substitution, and in the name of
Borrower, if Lender elects to do so, upon the occurrence of an Event of Default, to
(a) endorse the name of Borrower on any checks or drafts representing proceeds
of the Insurance Policies, or other checks or instruments payable to Borrower with respect
to the Collateral for the sole purpose of payment of the Notes;
(b) prosecute or defend any action or proceeding incident to the Collateral; and
(c) te.rminate the license granted to Borrower to collect the funds from the :?})
Lockbox, give receipts and releases therefore, and after deducting all expenses of
collection, including reasonable attorneys' fees, apply the net proceeds thereof to. any
Indebtedness as Lender may elect;
The power-of-attorney granted hereby is a power coupled.with an interest and
irrevocable. Lender shall have no obligation to undertake any of the foregoing actions, and
if Lender should do so, it shall have no liability to Borrower for the sufficiency or adequacy
of any such actions taken by Lender.
6.02 Acceleration. Upon the occurrence of an Event of Default Lender may, at Its option,
declare the Loan Immediately due and payable without notice of any kind.
6.03 Funds of Lender. Any funds of Lender used to cure any default hereunder shall be
secured by the Security Instruments and shall bear interest at the rate specified in the Note
or to applicable after default thereunder.
6.04 No Waiver or Exhaustion. No waiver by Lender of any of its rights or remedies
hereunder, in the other Security Instruments, or otherwise, shall be considered a waiver of
any other or subsequent right or remedy of Lender, no delay or omi.ssion in the exercise or
enforcement by Lender of any rights or remedy of Lender; and, no exercise or enforcement
of any such rights or remedies shall ever be held to exhaust any right or remedy of Lender.
102322.5 15
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6.05 Rights and Remedies of Sureties. Borrower Waives any right or remedy which
Borrower may have or be able to assert pursuant to Chapter 34 of the Business and
Commerce Code of the State of Texas pertaining to the rights and remedi,es of sureties.
ARTICLE VII
GENERAL TERMS AND CONDITIONS
7.01 Notices. All notices, demands; requests, and other communications required or
permitted hereunder shall be in writing and shall be deemed to have been given when
presented personally or deposited In a regularly maintained receptacle for the United
States Postal Service, postage prepaid, registered or certified, return receipt requested
addressed to Borrower or.Guarantor or Lender, as the case may be as follows:
(a) If to Borrower to:
(b)
STACI PRODUCE, LTD.
STACI PROPERTIES, LTD.
ATLED, LTD. and
DELTA PRODUCE, L.P.
2001 South Laredo Street
If to. Lender, to:
International Bank of Commerce
Attn: Mike Sohn
130 E. Travis
(c) If to Guarantor, to:
Walter Scott Jensen and
Jamie Jensen
2001 South Laredo Street
7.02 Entire Agreement and Modifications. The Security Instruments constitute the entire
understanding and agreement between the undersigned with respect to the transaction
arising in connection with the.Loan and supersedes all prior written or oral understandings
and agreements between the undersigned in connection therewith. No provision of this
Loan Agreement or the other Security Instruments may be modified, waived, or terminated
except by instrument i.n writing executed by the party against whom a modification, waiver,
or termination is sought to be enforced.
7.03 No Waiver. No waiver of any default on the part of Borrower or any other party
hereto or breach of any of the provisions of this Loan Agreement or of any other instrument
executed in connection with the Loan shall be considered a waiver of any other or
subsequent default or breach, and no delay or omission in exercising subsequent default or
- . breach, and no delay or omission in exercising or enforcing the rights and powers herein
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102322.5 16
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granted shall be construed as a waiver of such rights and powers, and likewise no exercise /---
or enforcement of any rights or powers hereunder shall be held to exhaust such rights and ' T :)
powers, and every such right and power may be exercised from time to time. Acceptance
by Lender of partial payments shall not constitute a waiver of the default by failure to make
full payments.
7.04 Severability. If any provision of this Loan Agreement is held to be illegal, invalid, or
unenforceable under present, or future laws effective while this Loan Agreement is in
effect, the legality, validity, and enforceability of the remaining provisions of this Loan
Agreement shall not be affected thereby and In lieu of each such illegal, invalid, or
unenforceable provision there shall be a(Jded automatically as a part of this Loan
Agreement a provision that is legal, valid and enforceable and as similar in terms to such
illegal, invalid, or unenforceable provisions as may be possible. If any of the Indebtedness
shalf be u11secured, the unsecured portion of the Indebtedness shall be completely paid
prior to the payment of the secured portion of such Indebtedness, and all payments made
on account of the Indebtedness shall be considered to have been paid on and applied first
to the complete payment of the unsecured portion of the Indebtedness.
7.05 Modification or Termination. The Security Instruments and other loan documents
may only be modified or terminated by a written Instrument or instruments executed by the
party against which enforcement of the modification or termination is asserted. Any alleged
modification or termination that is not so documented shall not be effective as to any party.
7.06 No Partnership. Nothing contained in the Security Instruments or other loan ;,,:.:::,i
documents is intended to create any partnership, joint venture or association between
Borrower and Lender, or in any way make Lender a co-principal with Borrower with
reference to the Collateral, and any Inferences to the contrary are hereby expressly
negated.
7.07 Election of Remedies. Lender shall have all of the rights and remedies granted in
the Security Instruments and available at law or in equity, and these same rights and
remedies shall be cumulative and may be pursued separately, successively, or
concurrently against Borrower, Guarantor, or any property covered under the Security
Instruments at the sole discretion of Lender. The exercise or failure to exercise any of the
same shall not constitute a waiver or release thereof or of any other right or remedy, and
the same shalf be non-exclusive.
7.08 Form and Substance. All documents, certificates, insurance policies, and other
items required under this Loan Agreement to be executed and/or delivered to Lender shall
be in form and substance satisfactory to Lender.
7.09 Limitation on Interest. All agreements between Borrower and Lender, whether now
existing or hereafter arising and whether written or oral, are hereby limited so that in no
contingency, whether by reason of demand or acceleration of the maturity of the Note or
otherwise, shall the interest paid, or agreed to be paid to Lender exceed the maximum
permissible under applicable law. If from any circumstances whatsoever, interest would
102322.5 17
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otherwise be payable to Lender at a rate inexcess of that permitted under applicable law,
then, the interest payable to the Lender shall be reduced to the maximum amount
permitted under applicable law, and if from any circumstance Lender shall ever receive
anything of value deemed interest by applicable law which would exceed interest at the
highest lawful rate, an amount equal to any excessive interest shall be applied to the
reduction of the principal amount owing under the Note and not the payment of interest, or
if such excessive interest exceeds the unpaid balance of principal of the Note, such excess
shall be refunded to the Borrower. All interest paid or agreed to be paid to Lender shall, to
the extent permitted by applicable law, be amortized, prorated, allocated, an'd spread
throughout the full period until payment in full of the principal of the Loan (including the
period of any renewal or extension thereof) so that interest thereon for such full period shall
not exceed the maximum amount permitted by applicable law. This paragraph shall control
all agreements between the Borrower and the Lender.
7.10 No Third Party Beneficiarv. This Loaf) Agreement Is for the sole benefit of Lender,
Borrower and Guarantor and is not for the benefit of any third party, except for any
successor or assign of Lender.
7.11 Number. and Gender. Whenever used herein, the singular number shall include the
plural and the singular, and the use of any gender shall be applicable to all genders. The
duties, covenants, obligations, and warranties of Borrower In this Loan Agreement shall be
joint and several obligations of Borrower, and of each Borrower if more than one.
7.12 Captions. The captions, headings, and arrangements used in this Loan Agreement
are for convenience only and do not in any way affect, limit, amplify, or modify the terms
and provisions hereof.
7.13 Applicable Law. This Loan Agreement and the Security Instruments shall be
governed by and construed in accordance with the laws of the State of Texas and the laws
of the United States applicable to transactions within such State.
7 .. 14 Conflicts Between Security Instruments. In the event of a conflict between the
provisions of this Loan Agreement and those of any other Security Instrument, the terms
and conditions of this Loan Agreement shall control, except that nothing herein shall be
construed to limit or preclude any of the Lender's rights or remedies contained in the Note.
7.15 NOTICE TO LENDER UPON BREACH. BORROWER AND GUARANTOR AGREE
TO GIVE LENDER WRITTEN NOTICE OF ANY ACTION OR INACTION BY LENDER OR
ANY AGENT OR ATTORNEY OF LENDER IN CONNECTION WITH THIS AGREEMENT
OR THE LOAN THAT MAY BE ACTIONABLE AGAINST LENDER OR ANY AGENT OR
ATTORNEY OF LENDER OF A DEFENSE TO PAYMENT OF THE LOAN FOR ANY
REASON, INCLUDING, BUT NOT LIMITED. TO, COMMISSION OF A TORT OR
VIOLATION OF ANY CONTRACTUAL DUTY OR.DUTY IMPLIED BY LAW. BORROWER
AND GUARANTOR AGREE THAT UNLESS SUCH NOTICE IS DULY GIVEN AS
PROMPTLY ~ S POSSIBLE (AND IN ANY EVENT WITHIN NINETY (90) CALENDAR
DAYS OR IF A LONGER PERIOD IS REQUIRED BY LAW IN ORDER FOR THIS
102322.5 18
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WAIVER TO BE EFFECTIVE SUCH LONGER PERIOD) AFTER BORROWER OR
GUARANTOR HAS KNOWLEDGE OR WITH THE EXERCISE OF REASONABLE
DILIGENCE SHOULD HAVE HAD KNOWLEDGE OF ANY SUCH ACTION OR INACTION,
. BORROWER AND GUARANTOR SHALL NOT ASSERT, AND BORROWER AND
. GUARANTOR SHALL BE DEEMED TO HAVE WAIVED, ANY CLAIM OR DEFENSE
ARISING THEREFROM.
7.16 Multiple Counterpart Originals. This Agreement may be executed in a number of
identical counterparts which, taken together, shall constitute collectively one (1) agreement;
but in making proof of this Agreement, it shall not be necessary to produce or account for
more than one such counterpart.
7.17 No Oral Agreements. If the amount Involved in your loan agreements exceeds
$50,000.00 in value, then Texas law requires that you be notified of the following: THE
WRITTEN LOAN AGREEMENT REPRESENT THE FINALAGREEMENTBETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
7.18 Successors and Assigns. This Agreement is binding on the parties hereto and their
respective heirs, successors and assigns; however, neither Borrower nor Guarantor may
assign their rights hereunder withoutthe prior written consent of Lender, which Lender may
withhold in its absolute discretion and there are no third party beneficiaries to this
agreement.
7.19 Loan Agreement Superceded. This Loan Agreement supercedes any loan
agreement(s) previously executed by any of the entities comprising the Borrower, in favor
of Lender in connection with any Loan, which prior loan agreement(s) is/are no longer in
force or effect.
IN WITNESS WHEREOF, the Borrower or any Guarantor and Lender have caused
this Agreement to be quiy executed by their respective officers thereunto duly authorized
as of the '2- day of March, 2005.
102322.5 19
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BORROWER:
STACI PRODUCE, LTD.,
BY:
BY: STA MANAGEMENT, LLC,
A TEXAS LIMITED LIABILITY
COMPANY, .
GENE L PARTNE
B """.
DELTA PRODUCE, LP.,
BY: WSJ PRODUCE, L.L.C.,
A NEVADA LIMITED LIABILITY
COMPANY
BY:
ATLED, LTD., .
BY;
102322.5
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LENDER;
INTERNATIONAL BANK OF COMMERCE
BY:

TITLE:. _______________ __
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102322.5
EXHIBIT "A"
"Staci Produce Debt"
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EXHIBIT "8"
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Stacl Properties Permitted Exceptions
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uccl Liens:
1.
2.
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. . 'Exhibit "A" . .
. ' Permitted. Encumbrances to STACI Produce, Ltd.
UCCl File No: 00-63284{ filed by NMHG Financial Services; Inc. (as Secured
Party) with the Texas Secretary of State
. . .
.UCCl File No. 02-0025297421 filed by DeLage Landen Financial Services, Inc.
(as SecuredParty) with the Texas Secretary_ of State
3: UCCl File No. 02-0036333323 filed by US Bancorp (as Secured Party) with the
Texas Secretary of Sta'te . .
.-
Page 1 ofl
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Exhibit "B". .
Permitted Encumbrances to Real Property
A.: Reserirations and Exceptions to Conveyarice and Warranty.ofReal Property set
forth in that certain Special Waminty Deed With Vendor's Lien dated March 2, 2005 conveying
title to STACI Properties. Ltd.:
.. .
1. . Restrictive covenants recorded in Volume 340, Page1Sl5, 340,' .
.. Page 76, volume 356, Page 67, Volume 362, Page 274, Volume 340, Page ..
197, Vo!Um.e 353, Page 362, Volume _353, Page 375, Volume 390, Page
52, volume 332, Page 508, and Volume 11112, Page .333, Official Public
Records of Real Properly ofBexarCounty, Texas.
2. . Taxes for 2005, which . Grantee assumes and agrees to pay, but not
'subsequent assessments for that and prior years due to' change_ in land
usage, ownership, or both, the payment of which Grantor assumes.
3.
4.
5.
30 foot building setback line along the front of subject property, as shown
. on fue plat recorded in Volume 3975, Page.223, Deed and Plat Records of
Bexar County; Texas. And as shown on Survey dated 2/24/05, by Bury & .
. Partners, Job# 50501-01.92. (Tract 2)
.Hi foot building as shown on plat reoorded in Vofume. 9555,
Page. 72, oeed and Plat Records of Bexar County, Texas.' 'And as shoWn
on SurVey dated 2/24/05, by Bury & Partners, Job_# (Tract
1) . .: . .. . . . . .
. . . . . . . . . : .
;28 foot gas; electric, telephone and cable T;V. .as on piat
recorded in- Volume 9555, Page 72, Deed and Plat Records of Bexar
County, Texas. And as shown on Survey.dat.,d 2/24/05, by Bury &
Partners, Job# 5050.1-01.92. (Tract.l)
6. Waterline eMement recorded in 4719, Page 74, Deed Records,
. Bexar County, 'rexas.-And as shown on Survey dated 2/24/05, by 'Bury &
Parttiers, Job# 50501-01.92. (Tract 1) :
., .
. 7. Memorandum 'of lease recorded in Volume 9254, 'f575, Volume
8.
. 10242, Page. 1571, Volume 9184, Page 556 1111d Vo'rume 10234, Page
1297, Official.Public Records of Real Property of Bexar County, Texas.
And as shown on 'Survey dated 2/24/05, by Bury &_Partners, Job# 50501-
01.92. (Tract 1) . . , . .
20 foot building setback shown on plat recorde4 in Volume 95.5.5,
. Page 72, Deed and Plat Records of.Bexar County, Texas, And as showi!
Page 1 of2
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.on SurVey dated 2/24/05, by Bury & Job# 50501-01.92. (Tract
. 1) . . . . . . . .
.9. . 14 foot elecfric, gas, telephone and .Cable T.V. easement along
Street recorded in Volume 9555, Page 72, Deed and Plat Records of Bexar
. County, Texas. And as shown on Survey. dated 2/24/05, by "Bury & ..
Partners, Job #50501-01.92. (Tract 1)
. B. . Items set forfu certain Agreements March 2,
2005 and executed by Frank T, Sepulveda and Superior Tomato-Avocado Co .. Inc., a Texas
corporation.
. Page2of2
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THAT. 1, WB, or BITHER

County of 'Bexar State of Taxas sometlnies hereinafter cal fed 0111.ntors
(whether one or more) for the purposes of securing the Indebtedness hereinafter described, and in coi\Srderation of the s.um ofTEN
DOJ.LARS ($10.00) 1o _us In hand paid by tl1eTrustee l!ere[nafter named, the receipt and sufficiency hereby .
f01: tho further consideration ofthC uses, purPoses and the ttusts het(linafter set haVe GRANTED; SOLD, mo CONVEYED,
and by these do GRANT, SELL an'd CONVEY \Into Steve Edlund ' Trustee, of
lnternatjo11nl Bank of'cornmeroe, 130 E. Sail Antonio, Bexar County, Texas 78205 and his substitutes or successors. a\1 of the
following described property situated.ln Bexar O:lunty, Texas (hereinafter the to-wit:'
. . .
See Exhibit ''A" hereto and made a hereof _for all purpoees.
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(i) one PrOmissory Note dated of"even date herewith in the principal sum of Million and
No/100 Dollars ($2,00cr,OOO.OO). (the Pr?<3uce Not;e")
1
executed by St!aci Produce1 Ltd.,
and (ii) one Real EState Lien Note dated of even date herewith in the principal slllll of Tllo
Hillion Fout; Hundred Thousai>d and No/100 Dollars ($2,400,000.00) (the Properties, Ltd.

exesuted by Staci Prqperties, Ltd. (the"St:adi Produce Note atld the.:S\laci Properties
Note. collectively J;eferred "to as. the

'
HAVE AND TO HOLD the above ProPerty, together with tho rights, privileges and appurtenances theretc> belonging
the sOld and to his substitUtes orsuccessc>rs forever and G.tantors do hereby bind themselves, tbeit heirs, executors, ad
to warrant nnd defend the said Premises unto tho"saidTrustee, his-substitutes or successors and assigns forv
against the clhlm or claims, of all petsonS cl:liming or tCf claim the same imy part thereof
. . ' .
hoWever, is'made in TRUST to securepayment

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XJCXXxxxxxxkxx who together with the above muned GrantOrs, shall hereinnfter collectively 9.nd interchan&eably be referred to as
Orontors, payable to the order of International Bank of Cort"!IOOrc.e
liereinil.fter referred to as Beneficiary, In the <:;ity of San Antonio Bexar County,
o.nd payable as thereln pro vi qed, including charges; bearing as thCtein stlpulo.ted, providing "for acceleratioli. of matu-
rity and for reasonnblc and altomey's . '
.. Shc>uld Grantors do and ped'onn aU of the cOvenants nnd.agreements.herein coJ1talqcd, nnd paxment of said indebtedness ns the
same shall duonnd paya_ble, th.en thi_s conveyonco shall becoJ"}lo nuU void and of no furthe[ force and effect, and shatl be
released at the.cxpense ofGrnntors, by the hereinafter ccl.led Beneficincy (wheth;r onO or more).
Grontois COVENANT and AGREE as fotJows:
That they are lnwfu.Uy of said Property, tdree simple absoh1te: and have the right to convey the samej that said Property is
from all and except as herein provided,
Poge 1 ofll DOT- ruro -1Bd'Ml4
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To pmtect the title and possession of said Property to pay when due all taxes and a.s,<:essments now existing or hereafter levied or
assessed upon said Property, or the intere5! tbereiq cctated by this Deed pfTnlSI, and to prCserve and mnintaln the uen hereby crent
alirsfMd prior lien on s.aid P'roperty includinJ! nny improvements hereafter made a of the realty.
To' lmprovcmeuts on snid Property in good repair snd condition, and not to permit or commit any thereof; to said
buildings occupied sons nOt to impair theJnsurance CnrrieP thereon. ,.:-
, . . . . '
To insure and ke.ep insured all now pr crenteq upon said Piop,erty against loss or damage hi:' fi-re and wind-
stom\ nnd any other hazard or 1iazards as may bo reasonably required from time to timcby Beneficiary during the team ofHte indebt
edl\ess hereby secured, to the Cxtent of the total amount of the hetCby secured, or fo' the extent of the full insurable value
of said improvements, whichever is the lesser, Jn' such fonn f\nd witli such insurance compnny or companies as Jllay beapproved by
Beneficiary, nnd to deliver to Beneficinry the policies of insurance having attached to suid policies such tUortgage indemnity
clause as Detieficiruy shalt to d6liVer such policies. Beneficial)' at least ten (10) daYs befOre nt1y in.sur-
nnce policies shall expire: any proceeds which may receive UJ!der such policy or policies, may be appUed by Beneficiary,
at it.:f option, to reduce the indebtedness sC9ured, Wbeilier !hen or to mature In the fUture, nnd in such manner as
Beneflciaiy may elect, or Beneficiary may permit Grnntonrto use said proceeds.to repair or replace all improvements domaged or
destroyed and by said policy.
. . ' .
T1mt Bencficiary'm.ay employ co.unsel for tldvice or other legal service nt Doneticlruy's discretion in connoclion with any dispute as to
. tho debt hereby secured or lien securing sitme or t.bis or nnY l!liSatlon or nrbitratfon proceeding to which th6 Beneficiary
.may be made n partY on of this Hen or which may afflict the t(tle to. the Property on aocouut of this lien or which mny affect
the title to tho Property S(curing the indebtedness herobysecured'oiwhlch:may affect safd debt or lien. Any reasonable and necessary
uttomey's f-ees so incurred :;hall be aCided nnd be Part of thO hereby secured. , '
Tn nddiilon to the. land nnd improvements above described, :the liei\ of this Deed Of Trost covers nnd Jncludes nil abstracts and. tit1e
, pnpers furnished or to be furnished in connection \vith the making of the Joan evidenced by said Note, the paytbent ofwhich is sect! red
hereby.
Granton; agree to pay on demand for nH title policies, approisals. recording fee.s ari.d a.llorueys fees incurred in connection
with either the closing ofthe Joan secured herebY, or tpe repewal, extensfou, modification nndlor renrrangeinent of any part of the
Indebtedness secured hereby, or, in the nltematlve, suCh amounts by Beneficiary be 11dded to and bo a part of the debt
hereby stcured.
That in tho everit shall fail to keep the on the Property hereby in good repnlr and colldition, or to pay
promptly wht.'ll due all taxos nnd assessments, aforcsaiQ, o:r to preservl? the' prior lien Deed OfTrusl on Snid Property or to
keep buildings and improvements insured, ns aforesaid, or deliver tfte policy, or policies, of insuronce or the renewal thereof to
Beneflcimy, as oforosnid, then Beneficiary may, at hiS O.P.tjon, bu! -.yithout btii1,1g required to do so, make such rev.nlrs, pny such taxes
nnd assessments, purchns,c n.ny tax title thereon, remove any prior liens, aOd prosecute or defend any suits In relatiOn to the preserva
tlon prior lien of this Deed Of Trust-on snld Propcrt)\ or insure and keep Insured the improvements thereon In any amount not
to exceed thnt above stipulated; thnt nny sums which may lieS? pait.i ou! bY, Beneflclnry, Including the costs, expenses and nttomey's
fees paid in ony suit affecting said Property when to pr'!tect the lie!t beteofand all other expenses and agreed to be paid
by Orontors 11ndcr the Deed Ofirost ate not paid when-d!fe shall beitr'interest from the-do.tes of such pnyrl)ents .at the prematu
rlty interest rote stilted in tho Note hereby secured, a'nd $hall be deemed a p'art of the debt hereby secuied and recoverable as such in
all In addiliOil; in Lhe event Oronto'rs shall fail to and ttnprovenlllntsinsufc:d, as aforesaid, or to deliver the .
. policy or pallcles; of lnsUr2ncc or the !enewnl thereof to the .Benefici:iry, as aforesaid, the Beneficiary ntay, at bis.option, but without
being required to do so, insure nnd keep the lnip'rpvments thereon iil any o.niount not to exceedthill above stipulated (inelud-
ini without to the ex.tent allowed by Jaw, the purchase'qf Insurance which tnay provide "coverage only foi
Beneflchuy}; sums paid for insurance premiums by BeuOfic]nry, afoJ:esald, slrJII bc!lr Interest from the dates of b'Uch pay
.ments nt the prt;maturity Interest rate controcted for In the Note hereby secured, and shall be paid by Grantors to Beneficiary upon
demOnd, nt'tho some. place at which the abovedescrlbed Note is payable, ahd shall be deemed a part of1he <leht hereby secured and
recoverable as foUclt hi all respects.
Orantors expressly ngree aunually to furnish Be11efigiar:,: e'Vl4enC!og payment of all taxes n'ssessed against, and insur-
(U')Ce the :;nid Property, Such tax receiptS shal\ be fumi$ed on or befOre fifteen (l.S) days pri.or to date such lal'es becOme
delinquent '!he Insurance receipt shall be fumishcd'ori or before ten (10) days prior to the date the current insurance covemge expires.
[f Grantors should fail to furnish such receipts, may require to deposit monthly with Benefi.ciary on tho payment
dates specified In tho Note hereby secured in additioll' io the monthly payment- Of principal and provided hl the Note hereby
sectired a suoregual to 1/12 of the estimated Bl!ilunl'iax'eS bnd insUrance preritfunlS Property, 'such estimntis to be made
by .Bencfieial)l. Bencticinry shalt hold $uch deposits; wi!hout bond aniJ.wlthout ttccJlHll offulorest thereon, to taxes and lnsumnce
prcm.iullls as they becomi doe, tu;ltll the indeble<{J)ess seCUrid hereby p9id and the balanCe delivered
. . . . ' . .
Subject to law and notwitltstandlng thb oplion, and in its sole discretion, Beneficiary
may require Gmotors to pay on thedRy mo'ntbty puyiUents 1m: due under the Note, until the Note is paid in full, a sum
C'Fimds'j for {a) yearly taxes. and assessments v.1tich may 'attaIn priority the lien of this Of Trust .as a lien on the Property;
(b) yearly leasehold payments ot 'ground rents op. the; Propertyt 'If any: (c) yearly hazard or property insuruncec prem1ums; (d) yearty
flood Insurance premiums, if nny: (e) yearly instimnce premfiuns; 'Jf any; and (f) any sums: p11yablo by Grontors to
))eneficinry. in accordance with the preceding p:p-agraph_, in lieu of the of mortgage insuronce premiums. These ite1us ore
cnlled"Escrow Hems", Beneficiary may, li-t any time, and hOld Funds In an amount notta exceed the mox.imum am<lunt a lender
for a related rftortgage loan maY require .for Grjmtor's C.ScroW account under the Federol Real Eslate SeHlementProcedures
Act of 1974 as amended front time to time, 12 U.S.C. Soction 2601,=et seq. ("lU!SPA"), unless another lnw that applies to the Funds
sets n amounL If so, Beneficiary mny, at nny tfmi, oo:liept and hotd F.unds in sny amo).ml not to exceed the lesser amount,
Beneficiary may estimate the amount of Funds due on !he basiS of. current data nnd rensonabJe estiffi.ates of expenditures of future
Escrow ltem.s or .otherwlso in with applicable Jaw, .
. . .. .
The FundS shall be held in nn institution whose ntc insured by a federel agency, instrumentality, or en'tity (including
Beneficiary, ifBeneficil'U'Y Is aucb an institution) or in nny Fedet11l.Home Loan Bonk. Beneficiary shaH apply to pay the
Escrow Items. Beneficiary may not charge Grnntors for holding and applying the Funds, annually analyzing U1e escrow account, or
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verifying tbe Th}cr0w Items, unless Bene:fichuy pays Borrower on thB Funds and Applicable law permits Beneficial}' to m,ake
such a charge. H9.we-ve.r, Benefir;:iary may Gran tom t-o pay-ayne-:.tirne ebarge for an independent real tax :reporting serv-
ice-used by Beneficiary in connection with this. loan, applicable law provides otbenv!se, Unless agreement .is m.ade or appllca-
ble law requires interest to be paiCI, Beneficiary shall not be required to pay Grantors any interest or earnings on the Funds. Grantors
and Beneficiary may agrtX: in_ writing, however, that inie:e-st be paid on the Funds. If required by law, Benefidaryshall give to
Grantors, without cparge, an annua1 accounting of the Funlls,showing credits and debits to the Funds and the purpose for which each
deblt to the Funds was made. The Funds are pledged as !idditional security for all sum.!! scwred by this Deed Of Trust.
If the Funds held b}r Beneficlary exceed the amoUnts permitted to be held by applicable law, Bendiciary shall account to G:tantors for
the excess Funds in accordance with the requirements of applicable law, If the amountpftho Fundsheld by Deneficiary at any time
not sufficient tl) pay the Escrow Items when due, Beneficiary may so notify Grantors in wtiting, and, in &UCh case Grantors shali pay
to Beneficfary the amount necessaxy to make up the deficiency. Grantor$ Ahall make up the deiieiency in no more than twelve (12)
nionthly at sole discretion.
payment in full of all secured by tru's Of Trust, shan promptly refund to Grantors anY, Funds held by
Beneficiary. lf. under foreclosure proceedings, Bencficiacy shall acquiro or sell the Pro}lerty,l3eneficiary upon the acquisition or salo
oftho'Property, shall apply any Funds held by Beneficiary at the time of the acquisitiOn or sale as a. cre<lit against-the sums secured by
this Dood OfTrust.
Grantors shaH not impose, or permit to be imposed, any covenants upon the Property herein describe4 or or file, or
pemllt to be flled, any subdivision plat or condominium dedarntion or other instrunl<:nt affecting said Property without the prior wrlt-
'ten consent
All agreements between nny of the parties hereto are hereby limUed by these provl5Jous w1tlch shall override aU such agree--
ment!!, whether now e:dstiug or thereafter arblng, If from a constructiOn of any document rclated to any transaction between
Bankt Grantors and/or any other person or entity executing this Deed Of Trust, any term(s) or provblon(s) Qr. any document b
ln conflict with appJfcable law, suclt document shall be automaHcaUy reformed and modified as to comply with applicable Jaw,
without tl1e necessity of execution of any amendntentor new doc.ument.
That in the event of default ln tho payment of any installment, principal or Qt of a late charge, of. the Note hereby secured, or
in the payment, when dtie, of any other indebtedness secured hereby, in accordance with the terms thereof; or of a breach of a:D.y of the
covenants herein contained io be perfotmed by Grantors then and in any of such events Beneficiary shall, at Beneficiary's option.
GRANTORS HEREBY EXPRESSLY. WAIVE NOTICES OF NON-PAYMENT, PRES!Wl'MENT FOR PAYMENT, PRllSENTA-
TIONSIDEMANDS FOR PAYMENT, NOTICES OF JNTENI'ION TO ACCELERATE MA'l'URlTY, NOTICES OF ACfUAL
ACCBLBRAT0N OF MATURITY, PROTESTS
1
AND NOTICES OF PROp!ST
1
accelerate tho maturity of the .Note(s) hereby
and the entire outstanding and unpaid princlpal indebtedness hereby secured together with all accrued an<f.\Jnpald interest
thereon, all accrued and uupa!d late charges, fees and othe,r sums shall thereby become immedjately due and payable, and In the event
of default in the payment of said inde.btedness when due or declared due
1
it shall thel'.eupon, or at any 1itne thereafter, be the duty of
the Ttustee. or hts suco:essor or substitute as hereinafter provided, at the request of'Beneficlaey (which request i.s herebY conclusively
prcslllUed), to enforce this ttust; and after advertising the time, placa and torl'lls of the sale of the abovo described and convoyed
PropJ:rtY1 then the Uenheroof, fQrat least twentyone (21) days preceding tho dato.of sale by posting written or printed notice
thereof at the County Courthouse and by filing a copy of such notice in the office of the Coooty Clerk of tho county where said Ptoperty
is situated. which. notice may be posted by the, Trustee acting. or by any person for him, and the Beneficiary (the holder. of tho
indebtedness Eecu.red hereby) has, at least twentyone (21) days preceding the date of sale, f:e.cved written or printed notice of the pro-
posed sale by ce'rtified mail on each person andlorentity(s) obligated to pay the indebtednesS secured by this Do.ed.OfTrustaccordi.ng
1o the records of Beneficiary by deposit of such. notice, enclosed in a postpaid Wll!pper, properly addressed to such peiS{ln(s) and/or
entity(s) at $Uch person's ancl/or.enttty(s) most recent address as shown by the records ofBenoficiary,ln a pol>\: office or official dopos
itory under tho and custody of the United States Postal Se;rvlr:e
1
the shall sell the above described proprty, then subject to
th61ien hcroof
1
at publio auction in accordance with such notioG at the Courthouse of said couuty where s\J.ch Property is situated (pra.
vided whore said Property is situated in moro than one county, the.notice to be posted as herein' provided shall be posted at the
Courthouse of each of such counties, and filed with the County Clerk.of each of such counties where said Property is situated, and said
above described and conveyedP.ropert}!may be sold at the Courthouse of any one of such counties, and the noticessopostedand fLied
shall designate' the county wher6 tho Property will be sold), on the first Tuesday in any month between the hours often o'lock A.M.
and four o'clock P.M., to the highest blddet for cash, selling aU of the :Property as an entirety or in such parcels as the Tru.steo acting
may elect and make due conveyance to the Purchaser or Purchasers, with general wananty bindlng Grantors, their heirs and assignsi
and of the money arbing from such sale, the Trustee acting shall pay fust, all the expenses of advertising the sale and making the con
veyanco, including a reasonable commission to himself, which commission ahall be due and owing in addition to the attomey's fees
provided for in said Note, and then to Beneficiary tha full amount ofprincipal
1
interest, attorney's fees and late charges due-and unpaid
on said Note and all other indebtedness secured hereby, rendering the balance of the sales. price, if any, to Grantors
1
their heirs Qt
.assigns; and the recitals in the CQnveyancc to the .Purchaser or Purchasers shall be full and conclusive evidence of the truth of tho. mat-
ters therein state<), and all prerequisites to said sale shall be presumed to have been and such sale and conveyance shall be
conclusive against Grantors, their heirs and assigns,
-
Benoficlary may remedy any default, without waiving same., or may waive any default without waiving any prior or subsequent default.
It Js agreed the.t in event a foreclosure hereunder should be CQmmenced by the Trusl:e; o; his substitute or successor, Beneficiar:{ .
may nt any time before the sale of said Property direct the said Trustee to abandon the- iale, and may then institute suit for the collW.. . .
tion of said Note, and for the foreclosure otthis Deed Of Trust llen; it is furlhor agreed that if the BenJ:flciary ahould institute a suit for
the collection thereof
1
andfor a foredosu.re of this Deed Of Trust lien., that be. may at any. time before the entry of a final judgment in
said suit dismis.s and require the Trustee, his substitutC. or successor, to sell the Property in accorda.nco with the provisions of this
Deed OfTrust. .
Beneficiary shall have the right to purchase at any sale of the Property; being the highest bidder, and to have the amount for which such
ProPerty is sold credited on the debt secured
in any even4 is hereby authorized to appoint a substitute ttustee, ora to act instead Qfthe Truste named
. herein other fonnallty than the designation in writing of a substitutB or successor and the authority hereby conferred
Page 3 of13 DOT12103 IBC9004
i
15
'
'
'
sball extend to the appointment of oth;; and su Le trusteos successively indebtedoess hero by searr:d bas b,;,.
paid in full, or until said Property is sold hereunder, and eac substitute and successor 1IuSteo shall succeed toall the rights and pow-
ers of the original tn1stee named herein.
In the event any sale is made of the above described.Prope
1
or llllY portion therOOf, under the terms of this Deed OfTrust, Grantors,
theft heirs and assigns, shall forthwith upon making of su h sale liurrender and deUwr possession of the. Property so sold to the
Purchaser at such sale, indin the event of their failure to do. o they shall thereupon from and after the making of such be and con-
tinue as tenants at will of such Purchaser, and in the event o their failure to surrender possession of said Properly upon demand, the .
Purchase.G his heirs or assigns, shall be entitled to ll_tstitute d tn!lintain an action for forcible detainer of said Property in the Justice
of the Peace Court in tho Justlco Precinct in which such Pro orty, oi any part is s!tu.ated,
Gra:ntors agree that any resale by BeneficiMy of the Property escribed in this Deed OCl'rost after foreclosut'e may be made for a price
below the fair market value (i.e. at wholesale) and that Benepoiary ia not required to re-.sQ]l the Property for a price equal to or above
fair market value (i.e. retail). Orantol1) agree that the sales prico obtained by Beneficiary at any such resale wilt not bo used in
miningth.e fa!rmad<et value of tho Property for the purpo's.ri"J-of determining vatue under Section 51.003 of the Texas Property Code,
. . . I . .
Td the greatest extent pennitted by law, Grantors hereb)> ulltive all righu and remedies created under Section 51,003 of the Texas
Property COde including, without limitation. the right intrJfu.ee evidence of the amotmt of the sales price of the Property sold by
Beneficiary followiug any foreclos:ru:e of the liens punruanttp the terms ofthls Deed OfTrust,
It agreed thkt the lien hereby created .shall take precedenJ over and bG. a prlpr 1ICJ1 to any, other lien of any character whether ven-
dor's, materialmen's, or mechanic's lien hereafter above described Property, and in the event the pzoceeds
edness sewtod hereby as set forth heroin ace used to pay off (\Ild Satisj:}r any liens heretofore existing on sald then Beneficiazy
is,'and shall be
1
subrogated to all Of the rights, Hens and remWles of the holders'ofthe indebtedness S<l paid.
'
It is further agreed that if Grantors., their heirs or assigns, while the owner of tho hereinabove described property, shouldconuuit an act
.ofbmkmptcy, or authorize tho filing of a voluntary petition l.n banktuptcy, or should nn act of bankruptcy 00 conunitted Md involunR
tary proceedings instituted or threatened, or should the hereinalxtve described be taken over by-a Receiver for Gnmtors, their
heirs or the Note hereinabove described may, at tho bption ofBenefieiary, immediately become due and payable. and the act
ing Trustee may then proceed to sell same under the provisidns of this Deed Of Trust .
!
Grantors hereby transfer and assignunto Beneficlazy, to be applied on the debt seeured hereby: (a) all eminent domain or eondemnar
tion award moneys wllich may hereafter he awarded or paidlfor the condemnation of the hereinabove described Property, or any part
thereof or for any portion of the premises Vthich rllay be app):opriate for any public or quasi-public 03e, or by v.irtuo of private sale in
lieu thereof and any sums whicli may be awarded or become.\payabto to Onu'l.tors for dai:rulges caused by public works or construction
on or near the Property; (b) all the bonuses, rents, royalties, damages and delay moneys-that rna>' be duo or that may heJ:eat'ter become
due and payablo to The Grantors or their under any oil! gas. mining o:r mine[311ease or le!lses of any kind now otwhlch
may be(eafter come iJltO existence (including agricultural and/or bunting contracts of every kind) covering the abovede.scribed
P.roperty or any part thereof;( c) all proceeds from the sale dfcrops grown on the Ptoperty, as well M-all pasturnge and/or grazing or
hunting fees, Grantors authorize and di.:reet payment of such money to said Beneficlary:until the debt secured hereby is paid, Such
money may, at the option of tho Beneficiary, be appliyd on tlil} debt whether due. or not. The Beneficiary shall itot be obligated. in any
manner to collect sai,d moneys or any part thereof, nnQ. sbaij. -be .only for amounts received by the Beneficiary .. Nothing
herein contained shall be construed as a waiver or prejudiCe to the priority of this lien or the options herewtdor. in favor of said
Beneficiaty.
It is agreed that au extension, or oxtensions
1
may be made as to the time of payment ofnllj or part, of the indebtedness secured here--
. by, and that any part of the above described Property may be i:eleased fu:lm tltis lien without altering or affecting the priority of the lien
<:rea ted by this Deed Of Trust in of llDY junlor cncuh:lbrance, mortga&eo or purchaser, or any person acquiring an interest in the
Property hereby conveyed,.or anY part thereofj it being the intention of the partles heJ;eto to this lien on the Property herein
described. and $ll improvements thereon, and thnt be hereafter consiructed treo:n, first and superior to any Hens that may be
placed thereon,nr that may be fixed, given or imposed by laW thereon after tho executiOn of this instrument notwithstanding any such
extension- of the time or the rele<JSe of a portion of said Property from this lien,
'
In the evOnt any portion of the indebtedness described cannot be lawfully secured by this Deed Of Trust lieu' on 'said
PtoQCrty, it,is agreed that the first payments made Qn $a{d indebtedness shall to the discharge of that portion of said indebtR
Wness.
-Nothing contained herein or Jn the Note shall ever eut:ttle :qeneficl:ny, upon the arising of any to receiVe
or Collect interest in excus of the highest rrtte alloWed by the laws of tho State <JfTe:tas or to the extent Federal Law permits a
grflaterrate
1
then such greater rate) on tho prlndpalindebtedness hereby secured or on nny money obligation hereunder and
in no event sl1all Grantors be obligs.ted to pay tlierenn In of such rate.
If this Deed Of Trust is executed by only one person or by a C!l.rporation, the plural reference to Grantors shall bi:l held to include the
singular and all of the covenants and agreements undertaken.to be performed. by and the rights UpOn the respective
Grantors name herein, shalt be binding upon and inure to the benefit ofllot only said parties respectively but a\so their respective heirs.
executors, administrators, grantees, successors and
In the event that the hereinabove described Property !s sold, conveye<\ or otherwise disposed of without the prior written consent of
the Beneficiary, tbe matfuity of the otitsta.nding and llllpaid principal, aU aoorued and unpaid interest, all acgued and uupaid late
charges, and other f-ees andlo.r clwges arising out' of said Note_ or hereunder may. at the option of the Beneficiazy, be accelerated and
the Beneficiary m_ay immediately demand payment of the then outstaudin8 principal S\1111, together with alls.CCI\ted and
unpaid interest due thereon, and all accroed and uD.paid late Vhatges, and otbei fees and/or charges then due and owing.
In the event Grantora. f;bould seek a temporary restraining order or ah injunction or other legal action, be it temporruy or permanent, io
prevent, binder or delay the exerolse by Beneficiary of ita rights andremedios under this Deed OfTnt9t, including, without limitation,
its forooloso.re rights, upon the occtf:trence of as default, as herein provided, tlien Grantortl ngree to pay and/or reJmburse Beneficlacy
for all costs and expenses, including its reasonable and ne'ce.ssary attomey'sfees, incurred by }3eneficiruy in cOnneolion with its
. . . . ' '
i Pago4ofll D01'.1'2103 1BCS004
. '
:
. . .: : .. ::
...
15
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,: ... .:
' .
,'i
.
. ..
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;r:(,t\.: ... ., ,r,!l'.:' :,,.,l,IH t-: 'l,; . , .;;i:h \h.:lnt, j'l::)mt:t:l <mi:\-t I\' '1.'

\',i,..:liit.r, ''' 1!1\l I =' Jll1 )'l'i'' :i/11) fl:l',
1
'It ,ln\ : r.,'/[,:JL!tap tl!-1\', :w.(<!l' lr nr ;.r(li,H!t/)IJ\ p!<l
I ol'fi:IUI:t r .. I),:Ui!l F ' 1),, 1'1,1\! /:m.!; 'I' :th;:;-.!<;11\ ""
" "' !""':.! l::>Grantoi.express!y.;op'*'entSJlhat. this Dee<! of Trust and the Note heteby secured
are given for and reoresent the sum .of $2,400,000.00 advanced and paid in cash
,. -".:: .'< ". '''b' ' ittrln"edid'Jiilii.iit&>' ":.., ''') '""'
., :':r;.:ti ., 1 :1 J ;.1 j)_ R"' ,:!f'lt. : .:1.
':k1t'2t:l"< . . '1 .nor. . . .
. 1:\ 'l'':": ;.:,.. .!.- "
"'}' !" .: .,,, :,;; ., h.r .. nJ <Jm: 'lfCl'll\l ;:-..:!!hutlt :'{:1i:1 r, < .
.:1 t'.,;i: ::-:; f, ...... \',, :r:111. f'i:l(,nJ. t'lm t
1
.1 :t llt: ;r.:th:urv n l.vr m,, ,wr ht:il 1't ,,hr.'
,. ! ,}:u:'!t!-. ._. rt' fl'''h 1ni r.tl:cr .. .. '\
1
i" .'o.. lt.!Jn :n;n, .1\lll:n. !l,l '"'-' , .. In
{}' ,,,._., ,, .. t .t;, ,:: ,-..-. r.r-d
1
iJt .:., ,:J:,n-; ..... .h, 1\\\f:Jo:JI> ' :h.r-:,,;: "
ext8nt aUOwed bY 1aw, flils JKatso 1'o lt'l.l!t of
to llinefi'Cihy 'preterttl:i may in 'man'tleMt::means nerelfter. .be lnclined '0[1' t>y:etahtt>'ts-,
Wb1Cb'Otll'efbi: futufe. indcbttdil.MS'-dmnt<ifs'lltMnoW1CUg6 to- b\li cmteh'tly dOntetnpllited b;{GmntOrhh d 'evidetl(:e{l il:i
Without'liniltalioii-:1 :
1
.'- ; : c 1:,: , ,.,
. . .
'. :','1
1
' i ]i; . '!'arlY or II J , ,. .... u( l::,n. ,,,. 'h,'' i,!l ., ,l:t(t'. J: ' :
1
l '")1
. ! .
1
' :, B: I' ::any .. . 'I .'.:;t,,.; . : :.; u,: .... : ..:. ', ,',' ., : t,, ...
t., : J. C
1
;"any'iddebYc'dtiOO:tehifiHg tooh.'tCliliig'Or savings accounts etc.);
D. any expenses incurred in ilia proteCtion or inalntenanco of the colla.teral any of such liabilities, loans, and
)y: bbl!Satimif"'"''' ...... !' ::: :. ;i i . .: ::. :. :,;d :-;,;: :: :. :::.: .. ,, .. :. :li: :t ..... : :,,: .
. .. .. B. . .. Fa'l'ly eXt*nses Jucditt!d i:ntli6co'tle0tion'of any maeM6drie&S Autd!or ofth6-Gta:ritotS'i'o
,. .... .:- :. :.i:.-ilig-10uf _.. :., ...... ," 1:.;: ;;.'' 1:.: :.. :J:;. : ... c":\-t i. . : .... ' :. fu:
:r 'F;' : ::any letterS- ef Of ei:e"'dit transactions;
G. any indebtedness, however evidenced, whether by promissocy note, bookkeeping entry, electronic transfer or by any
'' ,'j, '';lotlrbrn\aiinef<.6t:fb'm'iv i ! ': l' 't' ,:, : : ., a:l tl ,':(
1
J;r, !)\ '
1
H! 'I : (rhl ',\ : ,., i,
H. any other of Grantors to any financial institution with International Bancshares Colporation,
joiptly and/or severally, aud in any capacity, whether 8S makm-, guanmtor, or otherwis:6, now or hete.-'lftec owing and
regardless of how evidenced or arising; and
l! ll li: = .,1: :-any._ ;plodlficilf(uns; :11.: .:\
'1-.,i.\!
"u .... \ w; ' :. :1,
tiih'll .. ,: :1:.' -:::

11
\"t,

'dCrrCM '-or otliei'wise, arid Wlfether dlreet; lnd4'e<:t or contingent, regardless ot class, fonn or
and ibcluding but not limited to, loans f01: consumer, agricult\lral
1
business or personal pwposes . The indebtedness does not
at'iibuD.ts equt'tyioan:and!Gr Uno Of credit' ': ' ' ..
':' .- .. ,-:: ... t :;. . ,.; I, : .. ,. i.'\ ., .. ,, . ; . ,, I .(, ,. 1..:\ . '"I: . .... . ... . ...
It belrig e:xpresSlY t\dv'an-eed:by Beneficiary to shall be
payable af the at-.U1t-B.-'l"tavis, San'Mtanio; an'tlshill;biar fu'terest.\\s nl'.\1
b'e Pi6videQ Or :Other eVldiriCeS'OflridCtlteaUeiS given by GfuritOfS to 'B'eneactaty; Snd thiS msu\tnient ii'als'O Jxedltea for
the. purpOse ofS&iuiitig'11.nit tlie. renewa.I) eiden'siOtlniidrot rllblii.H'eUJon a.n.jtparfufithW;<iid
indebtedness OfGtdnt6rs advaticeineD.'rS mfi:ae all indebt: .
of GriintorSlo Oflfuillt So!tcliiaOOdtUj\B-e:fict!iry-"tlt the request
of Grantors, but lt $d'effet tQI;stn:C'-allfu.tute la'dV'dds.'lD,td ip.dcl>tWnessJte"illl'.dllM ohn)>
tional s-eclirity'-iliat may PaSt!b'r:future indCbte&Cs.<#;ana shall;tre \uihffcdeally in)rr'en'OWaiS;.Qxterull:o:M' oc partial
releases bereundet't'' . i.:;ll.:t! ,,;(,;',;'if,rb ': ., ' ., , ,,; :;r:l tu:i ,-11 1'01!!.\t._.! I c n: ...
1" .. :\ :U .;, ;; 1'c' .:: 11 :.r:;.: ,,:t. :,\; ,:. ;t .'l. :tm',.r, -.. t:t!'ltr.-irr::._l'" l''f o.'t: -t ,:lit
GRANTORS JUN!ORORSUBSEQUENTLlllN 01\ENCUMBRANCBAGAINST
T!m-J?ROPtlR'i"Y'WJ;'i1IoUt(Ptu'01t'iWJUif.'l"EW.'ciDNSI'lli'T 'II : ..
I" '.,',> ;'I '"''"/' ,'',!1. '; 1,:"1< :r.'.,ilf: : :,,;.;; .. ;I,'' f 1\ ',
;t;,'l,;j(:\ ': ..... I ,;:,1 ! :. ',';<i, 1 1:: I f,

(tOUicti'vetilh'e "Prlor lhlotunrehts ci(itihg.'the Prior Liens
J3e'cured shall}>;6;tollecth.rety the-
and'-thiS:osecti:on shl111
"l ; ::. \.1:.'. ',' ,' .. ;,I ': ',\: ." ',,'. ;" ., '
!. ; .. , \"' r. t : -:. ;.: :.: . l\'r 11'.!\ tjj;;' ,;' ! ;:: ::: . . . (\\' f;\'U.'
1
, ... '' i:'t t'il:l;' \.<C\.\i-1 : ...... : 'n , ........... ,. !'. )) : ;.
15
1
1
i
apply, Grantors shall not enter into "allY fenewal, extension, modification, increase or of any of the Prior Lien
or the indebtedness secured thereby without prior written oousent o[Benefici!IY, Grantors .shall pay. when due all indebtedness cvi
denced and secured by the Prior Lien Documents and sha11 tbnely perform H1l other obligations of the. Grantors tmdQr tho Prior Lien
Documents. Beneficiary may, bp.t Wall not be obligated to, pay any such indebtedness or perform any such obligations for tho account
of Grantors and any sum. so expende(J shall be secured hereby. Grantors shall pay to Beneficial")' all amounts so expended by
Beneficiary with interest on such IUllOIIntsfi:om tho <Je and at the rate set forth in Note, but not in excess of the highest rote peC..
mltted by applicable law. Beneficiary's cure of any &fault un<k:r any of the Prior Lien Documents shall not constituta a cure of the
default under this Deed Ofl'!ust. Gnmtors shall send to Beneficiaty a copy of each notice of default or notice of acceleration or other
notice received by Gtantorn from the holder o.f any of the Prior Lion Documents within one (1) day after receipt thereof by
Grantors: NotwithstMding the foregoing, Beneficiary does not COn.'\ent to any Prior-Lien unless otherwise ex.pressly permitted in this
Deed OfTro:<t.
SecurityAgrAAITlcntfFinancing Statement 'Ibis Deed OfTfust lien shall gover all property now or hereafter affixed o.rattached or
porated Into the Property, descnOed herein and now or owned by Grantots in which Grantors now or hereafter have an
est which, to the fullest extentpenuitted by law, shall be dee91ed fixtures part ofthG Property. In addition, this Deed Of Trust lien
shall and Grantors to the extent of any present or hereafter created rights of Grantors in such Property hereby grent to
Beneficiary, a security interest in (i) all building materials, fixtures, equipment and other personal property, to be incorporated i?to any
improvements consttucted on the premisesj (ii) all goods, materi!!ls, supplies, fixtures, equipment, machinery, furniture and furnishings
and other petsonnl property which are now or may hereafter be s.pproprlated for use on (whether such items nro stored on the prcmis
es or elsewhere), located on or used in connection with the premises; (ill) all rents, issues and profits, proceeds, renewa1s,
income o.r other benefit derived from the payments recelVed for lodging from. interests materials, and all aCC(lunts., .
accounts recelvablo, contra rights, general ,intangibles, intellectual property, chattel paper, instruments, documents, permits, plans,
specificaUons, drawipgs, governmental approvals, notes, drafts, letters of credit, indebtedness arising from and/or to pay an advance
on letters of credit, accounts due from cred[t; debit and! of oharge card companies, insurance policies, insurance.condcmnation awards
and proceeds
1
trado names, trademarks and service marks arising from or related to the pr-omises. and any buslne.ss conducted on the
premises by Grantors; and (iv) aU replacementS and suOstitulions for or additions: to, a.ll products and proceeds' of, and all books, records
and files re1atfng to any of the foregoing. To the extent any property covered by this Deed OfTntst lieu consists of rights in action or
personal property covered by the Texas Business And Commerte C()do, this Of Trost lien constitutes a security agreement and is
intended to create.a security Interest in such property in favor ofBeneficiary. This Deed Of'flllSt shall be self..opera.ttve with respect
to tuch and in the event of default and/or acceleration of tho indebtedness hereby secured. Grantors expressly grant to
Beneficiary the right to enter upon the Property where the collateral is located for the purpose of enforcing its rfght to such collateral,
and Grantors agree to eXecute 81ld delher, on demand, such security agreements, financing statements and other instruments as
Beneficiary may request in order to impose the !len he.J;Wfmade rtlote specifically upon any such property. lf the lien of this Deed
Of Trust on any property shall be :rubject to prior securlty agreement covering such Property, thea in the event of any default
der, all the rights, title and in1erest of G.rantots in and to any and all deposits made'in conoection with the tnmsacti.on whereby such
prior security aw:ement was Jll.ade nre hereby presently assigned to Beneficiary, together with the benefitofan.ypayDJent$ now or here-
after made in connection with such transaction.
Fjnancing In addition to Beneficiary's other rights set forth in this Deed Of Trust, Beneficiary shall have aU rights of a
secured partyuodertheTcxas Business And Commerce Code (the ''Codo'), At Beneficiary's request, Grantors shall execute and
er to Beneficiary ntl financing statements that way be required by. Beneficiary to establish and maintain tho validity and priority of
Beneficiary's security interest, aqd Grantors.s"hall bear all costs thereof, lt!cludlng all searches reasonably required by lleneficiuty. If
Beneficiary should dispose of any of the property covered by the security interest created under this Deed Of Trust pursuant to tho
Code, ten (10) days written notice by Beneficiaty to GrantorS shall be de<!med to be reasonable notice; provided however, Beneficiary
may dispooeofsuch proPerty in accordance with the procedntes ofthls Deed Of Trust in Ueu ofprocee&ng under th Code.
(i) Grantors .hereby authorize Beneficillt)' to file a Fina.licing Stateruent, an Amended Financing Statement nnd a Continuation
Financing Statement (collectively referred to as the ''Financing St:\temcnt'? describing the Collateral.
(ii) Grantors hereby authorize Beneficiary to ftle. a Financing Statement describing any ttgricu1tura1liens. or other statutory liens
held by Beneficiary.
(ill) Grantors shall receive prior to the Closing an official roport from the Secfetary of State of each Collateral State, the Chief
Bxewtive Offico State, and the Debtor StatG (each as defined betow) (the
11
SOS indicating' that Beneficiary's secu-
rity interest is prior to all other security interosts or other interests reflected in the report.
(lv) Beneficiary shaH receive at any time following the Closing an SOS Report indicating that Beneficiary's secUrity interest is
. prior to all other se-curity interests or other interests reflected in the report.
. .
Beneficiary may sell, lease, nr ctherwise dispO-se of any of the personat,property in. accord with the rights, remedies, and duties of a
:Beneficiary under ChapterS 2 and 9 of the Texas Business And Corrurterce Codo after giving notice as required by those. chapters; unless
the Collateral threatens to decline rapidly in valuo. is perishable, Qt would typically be oold on a rccogolzcd market, Beneficiazy will
give GrantorS reasonable notice of any public sale of the Collateral or of a time after which it-may be othetwisc disposed of without
further notice to Grruttors; in thls 6Vent, notice wlll be deemed rUsonable ifJt is roailed, postage prepilid. to .Grantors-at tho address
in this agieement at least ten days before. iny public sale or ten days before tho time when the Collateral may be othenvise
disposed of without further notice to .Grantors. Grantors authorize Beneficiary to disclaim or modify any and all set forth
in Section 9.610(d) of tho Texas Business And Commerce Code and stipulate and agree that suCh a disclaimer and/or modtfication will
not tender the sale commorctally UI\ftMOO.able, Beneficiary .niay retain all or part ortbe Collateral in full and/or partial satisfaction of
the Indebtedness pursuant to Section 9.620 of Texas Business And Commerce Code,
\Vithout providing Beneficiary with at least thirty (30) d"ays prior written notice of intention to do so, Grantors
1
until the
indebtedness is patd in full, agree that they will not: . . .
a. in one transaction or a lleries of related transactions, merge Into or consolidate with any other entity, seU all or sub
stc.ntially all of its assets, or in any way jeopa;rdl..ze its cotpornte ex.istence
1
b. change tho state of its incorporation.
c. change its corporate name,
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change the addtess and/or location of its CWefBxecutive Office
filo'a uCc-t Amendment form. and/or . . "
file a UCc-1 Termination form.. :. ;.: ' ': .. ; . ..- , '\ \
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'
Grantors shall give advanee notice in writing to Beneficiary of any proposed chango iu Grantors' naltle, i4entity, or structure and 4hall
execute and deliver to Beneficlaty, prior to or concurrently with the ocoutrence of any such change, all additional financing statenfnts
that Beneficiary may require to establish and maintain tho validity and priority of Beneficiary's se<:urlty interest with respect to aqy of
tho described orrefeued to herein. . . . {
, I
Grantors expressly represent that the Property hereinabove mentioned and conveyed to the Trustee forms no part of any prO'perty
owned, used or claimed by Grantors as exempted from forced sale under the law of the State of Texas as eithor personal or bu$iness
homestead, and Grantors renounce all and every claim thereto under any such law or laws and hereby expressly designate ;'ai; their
homestead, pers6nal_and busluess, and as constituting 0-ll the property owned, used or claimed by them as exempt either as pCrsonal'
and/or business under such Jaws the following described property: /
(Personal And Businessllomestcad) County, 1m.
l
Assignments ofRepts Profits etc. All of tho ronta, royalties, bonuses, issues, contracts for deed, proceeds, profits,.reven9.e, income
. Wd any ether benefit dedved frorn the Pzoporty and improvements thereto, or arising from the use or e!ijoyment of any poftion there-
of Qf from. any lease or agreoment pertaining thereto and)iquldated damage-s following default under such leases, and 4ll proceeds
payable under any poliay of insure.nce covering loss of rents or caused by damage to any part of Property, together V:ith_ any and
aU rights that Gnmtors may have against any tenant witli any and all righta that Gran tots may have against any tenant und,br such leas
es or auy subtenants: or occupants of any part of the Property (hereinafter called the ''Rents"), are hereby absGintely and/uncondition
ally assigned to Beneficiary, Prior to a. default in payment by Grantors of any portion <lf tho indebtedness secured by/this Deed Of
Trost (the "Indebtedness'') or breach of any covenant, representation or' warranty made herein by Grantors (collectively/ an ''Event of
Default''), Grantors shall have a Iioouse to collect tmd wceive all Rents 9.$ Trustee fQr the ?enefit ofBene.ficlary andfGrantors, and
Grantors shall apply the funds so collected first to the payment of the lndhtedness in such manner as Benefichuy elects and thereafter
to the account of Grantors. The forogoJng assignment is intended to bo absolute, unconditional and presently effcctivb. It shall never
be necesSary for Beneficiary to institute legal proceedings of any kind to enforce the tenns of this assignment, !
I
As.slgnment ofLea.sas hereby assign to Beneficiary all existing afid future leases, including llubleases tbi:t{:of, and any and
all exteruions, renewals; modificatioris, and replaecmtmts thereo,t upon any part of the Property (tho
1
'Leases'? Grahtors hereby fur-
ther assign tO Beneficiary all guaranties of tenants' performance under the Leases, Prior to an Event of Default, shall have
the right, without joinder of Beneficiary, to enforce the Leases, unless Beneficiary directs otherwise.
Warranties Crmcemitlg Le.11sM and Renbt Grantors represent and warrant that: (-a) Grantors have good title to and Rents
hereby assigned and authority to assign them, and no other person or entity has any right, title or iutere.st (\i) all existing Leases
are valid, unmodified and in full force and effect, except a.s indicated herein, and no default exists thereunder; (c) firuess otherwise pro
vided herein, no Rents have l>Qen or will be assigned, mortgaged or pledged; (d) no Rents havd been or will anticipated, waived,
released, discotmted, setoff or compromised; and (e) Grantors have not received any funds or deposits from any fenant for which cred-
it hBll oot already been made on acrount of accrued Rents. f
. . t
Grantor's Covenants of Petformanca as to Leases Gtantors covenant to: (a) perform all of their undet tb6 Leases and
prompt notice to Beneficiary of any failure. to do so; (b) give immediate to Beneficiary of any notice Prantors from
any te.Qant or subtenant,under any leases, specifying nny claimed default by any party under such Uases, excfuding, howevcr
1
notico
of CWfuults under residential leases; (c) enforce tho teJ\llllt's obligations-under tho Leases; (d) defood, at Gran'tor's- expense, any pro-
ceeding pertolning to the Leases, including, if Beneficiary so requests, any such prOceeding to which 13enef(ciary is a party; and (e)
neither cre-ate nor permit any encurnbnmco upon its interest as lessor of tho Leases. except this Deed OfTIU/;t and any other encum
permitted by this Deed OfTrust. , f
Prior Approval for ActiOn Affecting Leases, sball no4 without the prior written consent ofBene
1
ficiary, or collect
Rents more than one month in. a:dvance, encumber or assign future Rents, 'Waive or re101L'le any obligationS of any tenant under the
Leases, cancel, terminate or moilify any Leases, cause or pennit any termination or su_n:ender of any-oftho
or commence any proceedings for dlsposse...qgion of any tet13lltunder any of the Leases, exceptppon default by the tenant thereunder,
or permit any assignment of the Leases whereby a tenant is released from its obllgatloo.
i
Rejection ofT .eases in Brm!guotey Grantors agree that no settlement for damages for tennination of ani of the Leases under the
Federal Bankrup1cy Code, or under any other federal, state, or local statute, shall be made without!the;prior written consent of
Beneficiary, and any check In payment of such. damages shaU bo made payable to both Grantors and Beneficiary. Grantors hereby
assign any .such paynient to Beneficiary, to bo applied to the Indebtedness a:s Beneficiazy may elect, add agree to endo!lle any check
for such payment to the order ofBoneficia.ry. ; '
Beneficiarv'a Rights. Beneficiary's acceptance .of this assignment shall not, prior to, upon, or afteren,hy upon nnd taking possession
of the ProJXITIY by Beneficiaty or any foreclosure of the lien hereunder or conveyance of the Property lJ.erein in lieu thereof,
bo deemed to constltute.Bcncficiary as a in nor obligate Bcnoficiacy to apar in or defend any proceeding
relating to any of the Lea-ses or to the Property, take any action hereunder, expend any money
1
incur &Ii-Y expenses or perfonn any obll
gation or liability under the Leases, or assume any obligation or .liabillty pnder the Leases, or assumo;any obligation including seeuri
ty deJ;fQsits. Beneficiary shall not be.liab.le for any in jilt)' or damage to any person or property in o.t; about the Property. Beneficiary
ahall not be obligated to perfonn, satisfy, or otherwise, adhere to any tc.nn.sof any <lftho Lease-s or anY covenant of Grantors to any ten
ant lijll.ess Beneficiary agrees to do so, in writing, executed by Beneficiary, which Beneficiary may elect not to do so, in its sole and
absolute discretion.
Anpoin.tment ofAttomey.Tn-Fs.ct. Grantors hereby appolnt Beneficiary its attameyinfact, with an interest, empoWering
Beneficiary to subordina.te any Leases to this Deed OfTru.<>t.
Iudem"niflcatinn. 9rantors hereby indemnify and hold llenefi.clary fi'Om a.ll damage, or expense incurred by
Page7of13 DOT-12/0l.JBC9004
15
__,:
',1' '
Benefida.ry any clatms under claims b)'ienants for security deposlts or for renilll
payments more than one (1) month_in advanCe and not to Be11e!!clary. All aniount! indemnified. hereunder, Includ-
ing reasonable attorneyls fees, if paid by Beneficiary shall Interest at the maximum lawful rate and.shall be payabJe by
Grantors Jmmediately without demand and shall be
)\ecords Etc. Upon by Beneficiary, Orantors shall deliver to Beneficiary executed originals of all Leases and copies of all
tecords relating thereto. There shall be no merger of tho leasehold _created.by the Leases, with 1he fee estate of the Mortgaged
Property without 1he- prior written consent of:SeneficiyY; p-pon dol'ault, Gf<Wtors hereby authorize and direct the tenants under the
Leases to pay Rents to Beneficiary upon written BCneficliUy, without further .consent of Grantors, and 'the tenants may rely
upon any wriffen statruncnt delivered by Beneficiary io the All1 such payment to Beneficiary shall constitute payment to
Grantors under the Leases. .:'
Some of the Hems on the ?roperiy are goods aro or lire to become fixtures related to sald Property, and it ia intended
that as to those goods, this Deed Of Trost shall be effedfiv.e as a. shtemcnt filed'IIS a fixture -filing from the date of its filing
in estai:Q of the county in wh1ch thO 'Pfoperty is' siwated. Information concem.ing the security creat-
ed by thisinstnltnent may be obtained from :Soneficiary, as. SCC\lred party, at the aMress ofB.eneficfazy set forth elsewhere in this Qeed
Of Trust. The mailing address Grantors, as is':ustafed
Enylronmenta1 <;ompllance Grantors use of the Properh' Wit! '1111 times cOmply with all: laws, 5tatutes, ordinances, rules and regu-
Iatio.ns (''Laws'') of any quasigovemrpeptaJ. or regulat9ry authority which relate to the transportation, storage, place
mcnt
1
handling, treatment, discharge, generation, production, removal or diSPosal (colledivcly, "Treatment") of any waste, peftoleum
product (including, without limitation, gasollue and dieel t\iil), \y9.st'e products, poly-chlorinated biphenyl, l\$bcsto& hazatdolL'! mate
rials, and/or any other substane, the Treatment of which is regulated by.a.ny laws (collectively, "Waste"). Grantors will comply with
all Laws regarding Uhderground storage tanks used to ho1d glis.olinC, diesel .fuel, or any other petroleum products on the Property.
. . . : . . . ' .
To the Grantors' no Waste. is no1located on the Property, Rlld neither Grantors nor, to the best of Grantors' lmowl
. edge, any other person has ever caused or ponnitted any Treatment .of anY Oflt under or at the Property or lilly part thereof, and
to tho best of Grantors' knowledge, no property adjoilqng the Pro_perty is used, or has ever been used a.t any previous time for
the Treatment ofWaste. '
To the best of Grantors? knowledge, no order, consent order and agreement, litigation or settlement, with
respect to Waste or the Treatment of Waste is proposed, threatened, antiCipated or in existence with to tho Property, The
Property is not currently on, 8nd to Grantors' knowledge, after diligent inveStigation and inquiry, has never been on. any federal or state
"SUperfund" or
14
Supetlien''list. '
Grantoro agree to (a) give notice to Beneficiary- immed.iarol). upon acquiring knowledge. of any Waste ori the Property with a
full description thereof; (b}promptly comply with any laws appllcable 10 Gran to !'<'I or the Property requhing1be removal, treatment or
disposal of such Waste and provide Beneficiary with satisfactory evJdence-'withsuch compliancej and (e) provide Beneficiary within
thirty (30} days nfter demand by Beneficiary with a bond, letter of credit or:sirpllar financial assuranqe evidencing to Beneficiary's sat
isfaction that the necessar)' funds are available to pay tho cost of removing, f(eating and disposing of such Waste and discharging of
any assessments that may be established on the Propert;,; as' a:_result f.
Any environmental spill, discharge or other event upon oi adjacent to !he Property which Beneficiary determines and
adversely affects the value andloruse of tho PrOperty, be an EventofDcfauJtundet" this Deed OfTl\lst and the'Npto and all other
. indebtedness secured hereby. ' '
Grantoroagrco to perfonn an asbestos survey and obtain a permit, aqd tO provide a copy of said sutvey to Beneficiary, prior to com-
mencing any r-enovation -and/or demolition of a 'or C9mmercial building. Grantors .further agrcc.-to comply with- all other state
and federat statutes and/or regarding it'>bestos :.
'.
Slte Assmments. Beneficiary (by its officers, employees and agents) at any time and from time to time, either prior to or after the
occurrence of any default, may contract for the services ofan,Y person or fiffli ("Site R.eviewe!i') to pctfcnn environmental site assess-
ments ("Site on the. Property for the pwposas Of deteriulnhig \yhetber there exists on the Property any
condition which could reasonably be expected to result in any cOst or expense t() the -owncr
1
occupier or operator of such
Property arising under any Laws telating to or the Treatment The Site .Assessments may be perfonned at any time or
times, upon reasonable and under reasonable coD.ditiOns cistablishe<l'by Granton> which do not impede the perfonnance of the
Site Assessments. Grantors thit any Site A.ssessU!ent' shJl-ll f9i"tbe' s'9le and exclusi-ve use
1
benefit lltld reliance of:Benefioiary
in assessing the value of.its security interest in th)) wiU. hqt OereHcd on by Grantors for any putpOse. The Site Reviewms
a..re hereby authbrized to enter upon the Property for suCli purposes, The SitO Reviewers Pie further authorized to perfonn above and
below ground testing for environmental damage or tbl( Of onthe Property and such other testa on the Property .as may
be necessary to conduct the Site Assessments ln the opiriton of the SitQ Reviewers. Grantors will supply to the Site
Reviewers such historical and ()_perational PrOportf as may be reasonably requested by tho Site Reviewers tO
fa cUi tate the Site Assessments and will be available fot meetings with Site Revlbwera if requested. The cost ofperl'omrlng such Site
Assess1uents shall be paid by Grantors upon demand suCh expenses borne by Beneficiary ,not immediately reim-
. bursed by Grantors shall be-secu.red by tfiis Deed Of'trtist.
Indetnnlflcatlon, \Vbethe.r or not any Site Assessment3 are conducted
1
and regardless ofwhether or not a default occurs \tnder
this llecd Of Trust or under the Note or under any se<::nrell hereby and regardless of any remedies
in resped of the Property are exercised by Benefig!ary
1
Grantors will defeltd
1
lndemnlfy and hold )!armless Beneflclal'Y and
Trpstee from any and nllllabllities (lndUding strietllilbll!ty), actions, penalties, losses, costs or expenses (lnchlding,
without linrltat:lon, attorneys fees and expenses, -cosis), suit costs of any settlement or judgment and clabns of Rny
and every Jdnd whatsoever wblcb way now or in thO future before or after the release or foreclosure of this Deed Of
Trust) be paid, Jnc:urred or suffered by or asserted qr 'frustee by any person or entity 9r governmental
agency for, with respect to, or as a direct or 1ndkce't result or; the presence (lD or nnder, or the escape, seepage, leAkage, spillage,
emission or .release from, on or affecting tfie Property of a.ny WAstC or any spill, or whlch.arhe out of or result from
the en\'ftOJlmoO.tal C(lndltlon of the Property or the S.ppllcabutty of any Jaws relating to the W!aste (lnctuding, without llrrtit:ltion,
the Ccmprel1cnslve Environmental Response, Conipensatio'n;and Lialiillty Aet, 42 u.s.c. 9601 et seq., as arises from time to
Pagt-8ofl3
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'time,. any federal
1
state or local so--clUed statute, law, ordinance, code, rule, regulation,
order or decree), regardless of whether or not tau sed by or wlthht:t'h-e:eontrol of Grantors, Beneficb.cy Qt Trustee. The rep re-o
sentatlons, covenants, warranties anlndenmlilcadon herein cont:rlned shall survive the release and/or Judicially or
dal foreclosure (or transfer in lieu fbet'COf) of the Hen o( this Deed Of 'JJ:"ust. For the purpose of thh pa'ragraph and notwith
standing any other provision confalned hereln to the contrary, the term "Grantors" shallrefernotonly to the GrS.ntors notoJtly
,to the Grantors natned hercln, but also to all assume to the Note and tbe obligations of this
Deed Of Trust. ..
@UITRATION.
GRANTORS, BENEFICIARY AND TRUSTEE FURTHER AGREE AS FOLLOWS:
I, CONSUMER-RELATED CLAIMS OF $75,000.00 OR LESS JN AC'l'UAL DAMAGES:
(a) Wl'l'H REGABD TO ALL CONSIJJ\1ER-RELATED CLAIMS OF S75,000,00 OR LESS JN ACJ'UAL DAMAGES,
ANY AND ALL CONTROVERSr'ES OR CLAIMS ARISING'OUT OF TIDS CONTRACJ', ITS NEGO:i'IATION AND/OR
TJIE BREACH THEREOF, SHALT. BE SETTLED BY ARBITRATION ADMINlSTERED BY THE AMERlCAN ARBITRA
TION ASSOCIATION UNDER ITS SUl'PLEMl':NTAL PROCEDURES FOR RESOLUTION OF CONSUMER-RELATED
DISPUTES AND CONSIJJ\1ER DUE PROCESS PROTOCOL (WHICH ARE INCORPORATED HEREIN FOR ALL PUR-
POSES), AND JUDGMENT ON THE AWABD RENDERED BY THll ARBITRAT.OR(S) MAY BE ENTERED IN ANY
COURT HAVING JURISDICTION THEREOF. IT IS INTENDED BY ALLPARTlES THAT THIS ARBITRATION CLAUSE
MEET AND INCLUDEALLFA!RNF-SS STANDARDS AND PRINCIPLES OFTHEAMERlCAN ARBITRATION ASSOCI
ATION'S CONSUMER pUE PROCESS PROTOCOL AND DUE PROCESS INPREDISPUTEAREITRATION,
(h) INSTEAD OF PROCEEDING IN ARBITRATION, ANY PARrY HERETO MAY PURSUE ITS CLAIM IN THE
CONSUMER'S LOCAL SMALL CLAIMS COURT, JJ! TJIE CONSUMER-RELATED CLAlM MEETS THE SMALL
CLAIMS COURT.JURISDICJ'IONAL LIMITS. JJ! THE SMALL CLAIMS COURT -OPTION IS CHOSEN, THE pAJITY
MUS' CONTA<;T TJIE SMALL CLAIMS COURT DIRECJ'LY. .
(c) THE PARTlES FURTHER AGREE Tl!AT (I) NO ARBITRATION PROCEEDING HEREUNDER SHALL BE CER
TIFIEll AS A CLASS ACTION OR PROCEED AS A CLASS ACTION, OR ON A BASIS INVOLVING CLAIMS BROUGHT
IN A PURPORTED REPRESENTATIVE CAPACITY ON BEHALF OF THE GENEI\AL PUBLIC, OTHER cUSTOMERS
OR POTENTIAL CUSTOMERS OR PERSONS SIMILARLY SITUATE)) AND (ll) NO ARBITRATION PROCEElliNG
HEREUNllER SHALL BE CONSOLIDATED Wl'l'II, OR JOINEll IN ANY WAY'Wl'l'H, ANY OTHER ARBITRATION
PROCEElliNG.
(d) THIS ARBITRATION PROVISION SHALL SURVIVE ANY TERMINA:riON, AMENDMENT, OR EXPIRATION
OF THE AGREEMENT IN WHICH THIS PROVISION IS CONTAINEll, UNLESS ALL OF THE PARTlES OTHERWISE
(e) ' THE l'ARTIES AC:KNOWLEDGE TRAT TIDS AGREEMENT EVIDENCES A TRANSACTION INVOLVING
INTERSTATE COMMERCE, 'HE FEDERAL ARDITRATION ACJ' SHALL GOVERN THE INTERPRETATION,
ENFORCEMENT, AND PROCEEDINGS PURSUANT TO THE-ARBITRATION CJ,AUSE OF THIS AGREEMEN1:
II. CONSU?.IER-RELATED CLAIMS ABOVE. $75,000.00 IN ACJ'UAL 'DAMAGES. AND/OR COMMERCIAL
CLAIMSt
. (a) ANY ARBITRATION INVOLVING CONSUMER-RELATED CLAIMS ABOVE $75,000.00 JN ACJ'UALDAMAGES
AND/OR COMMERCIAL CI.ATh!S JIEREUNiiER SHALL BE BEFORE AT LEAST THREE NEUTRAL ARBITRATORS
,ASSOCIATED Wl'l'H THEAMERlCAN ARBITRATION ASSOCIATiON.AND SELECJ'ED IN ACCORDANCE WITH THE
COMMERCIALARBITRATIONRULES OFTJIEAMERlCAN ARBITRATIONASSOCIATION,FAILUREOFANYARBI
TRATOR TO DISCLOSE ALL FACTS WlliCH MlGHT TO AN OllJECTIVE OBSERVER CREATE A REASONABLE
IMPRESSION OF THE ARBITRATOR'S PARTIALITY, AND/OR MATERIAL ERRORS OF LAW SHALL BE GROUNDS
[IN ADDITION TO ALL OTHERS! FOR VACATUR OF AN AWARD RENDERED PURSUANT TO THIS AGREEMENT.
(b) TJIE PARTIES FURTHER AGREE THAT (l) NO ARBITRATION PROCEEDING HEREUNDER SHALL BE CER-
TJJ!IED AS A CLASS ACJ'ION OR PROCEED AS A CLASS ACTION, OR ON A BASIS INVOLVING CLAIMS BROUGHT
IN A PURPORI'Ell REPRESENTATIVE CAPACITY ON BEHALF OF THE GENERAL PUBLIC, OTHER CUSTOMERS
OR POTENTIAL CUSTOJ\mRS OR P&RSONS SIMILARLY SITUATllD AND (ll) NO ARBITMTION PROCEEDJNG
HEREUNDER SHALL BE CONSOLIDATED Wl'l'H, OR JOINEll IN ANY WAY Wl'l'H, ANY OTHER ARBITRATION
PROCEEDING ,
(c) TillS ARB!'I'RATION PROVISION SHALL SURVIVE ANY TERMINATION, AMENDMENT, OR EXl'IRATION
OF THE AGREEMENT IN WBICH TIDS PROVISION IS CONTAINED, UNLESS ALL OF THE PARTlES OTHERWISE
EXPRESSLY AGREE IN WRITING . .
{d) THE PARTIES ACI<NOWLEDGE.THAT TIDS AGREEMENT EVIDENCES A TRANSACJ'ION INVOLVING
INTERSTATE COMMERCE, THE JiEDERAL ARBITRATION ACJ' SHALL GOVERN THE INTllRPRETATION,
AND PROCEEDINGS PURSUANT TO THE ARBITRATION CLAUSE OF TillS AGREEMENT.
ffi,. ADDITIONAL COMMERCIAL CLAIMS PROVISIONS:
(a) ANY AND ALL COMMERCIAL CONTROVERSlES BETWEEN TJIE PARTIES, SHALL BE RESOLVED BY
ARBITRATION IN ACCORDANCE Wl'l'H TJIE COMMERCIAL ARBITRATION RULES. OF THE AMERICAN ARBI
TRATION ASSOCIATION IN EFFECJ' AT THE TIM.E OF FILING, UNLESS THE COMMERCIAL ARBITRATION
RULES CONFL!CJ' Wl'l'H THIS PROVISION, AND IN SUCH EVENT THE TEIIMS OF THIS PROVISION SHALL CON-
TROL 'TO THE EXTENT OF THE CONFLICJ',

15
(b) THE AWARD OF THE ARllTRATORS, OR A MAJORITY OJ! THEM, SHALL DE FINAL, >4ND JUDGMENT
Ul'ON THE AWARD RENDERFD MAY DE ENTERED IN ANY COURT,_STATE OR FEDERAL, HAVJNGJURlSDICITON.
THE ARBITRATION AWARD SHALL Dl'{ IN WRITING AND SPECIFY THE FACTUAL AND LEGAL BASIS FOR THE
AWARD. Ul'.ON THE REQUEST OJ! ANY PARTY, THE AWARD SHALL INCLUDE FINDINGS OF FACT AND CON-
. CLUSIO/'IS OF LA\V.
. - -
(c) ARBITRADLEDISP.U'l'ES INCLUDE ANY AND ALL CONTROVERSIES OR CLAIMS BETWEEN TI!EPARTIES
OF WHATEVER TYPE OR MANNER, INCLUDING WITIJOUT LIMITATION, ANY CLAil\i ARISING OUT OF OR
RELATING TO THIS DEED OF TRUST, ALL PAST, PRESENT AND/OR FUTURE ,CREDIT FACILITIES AND/OR
AGREEMENTS INVOLVING TJIE PARTIES, ANY BETWEEN OR INVOJNING .'f!Dl PARTIES,
AND/OR. ANY ASPECT OF ANY PAST OR J?RE(;ENT RELATIONSirrP OF TBE PARTIES, WHETHER BANKING OR
OTHERWISE, SPECIFICALLY INCLUDING ANY ALLEGED TOJ1.T COMMITI'Ell llY ANY PARTY.
(d) TiiEPARTIES SHALL ALLOW AND PARTICIPATE.INDrSCOVERYIN ACCO)IDANCE \\TIH lm FEDERAL
RULES OF CIVIL PROCEDURE FOR A PERIOD OF ONE HUNilRED TWENTY (120) DAYS AFTER THE FILING OF
THE ORIGINAL REsPONSIVE PLEADING .DISCOVERY MAY CONTJNUETHEREAFTERAS AGREED BY THE PAR-
TIES ORAS ALLOWED BY THE ARBITRATORS. UNRESOLVED DISCOVERY DISPUTES SHALLBE BROUGHT :ro
THEA'ITENTION OF:rHE ARBITRATORS llYWRri'fEN MOTioN ,FOR PROPER DISPOSITION, INCLUDING RUL-
ING ON ANY ASSERTF.Il OBJECTIONS, PRIVILEGES, AND PROTECITVE ORilER REQUESTS AND AWARDING
REASONABLE ATTORN'EY'S FEES :ro THE PREVAILING PARTY
. '
(o) IN TI!E EVENT THE AGGREGATE OF ALL :4FF.IRMA:riVE CLAIMS ASSERTED EXCEED $500,000.00,
EXCLlJSIVE OF INTEREST AND Al'TORNEY'S 'FEF-8, OR Ul'ON :rHE WRITTEN l<EQUEST OF ANY PARTY, (1)
PRIOR TO :rHE OF A LIST OF POTENTIAL ARBITRA'I'ORS, THE AMERICAN ARDl'l'ful:l10N
ASSOCIATION SHALL CONDUCT AN IN PERS,ON ADllllN:rSTMTJVJ? CONFERENCE wiTH THE PARTIES AND
:riJEm ATTORNEYS FOR :rHE FOLLOWING PURPOSES AND FOR SUCH ADDITIONAL PURPOSES AS THE PAR
TIES OR THE AMERICAN ARBITRATION ASSOCIATION MAY DEEM APPROPRIATE, (A) TO OBTAIN ADDITION-
AL!NFORMATION ABOUT THE NATURE ANDMAGNITUDE OF THE DISPUTE AND THE ANTICIPATED LENGTH
OF HllARINGS AND SCHEDULING; ,(D) TO DISCUSS THE VIEW OF THE PARTIES ABOU:r ANY TECHNICAL
ANDIOR.OTHEJl SPECIAL QUALIFICATIONS OF THE.ARDITRATOIIS; AND (C) TO CONSIDER, WIIETHER MEDI-
ATION OR OTHER METIIODS OF DISPUTE RESOLUTION MIGIIT liE :APPROPRIATE, AND (2) AS PROMPTLY AS
r pRACTlCAHLE AFTER THE SELECITON OF :rHJ<; ARBITRATORS, A PRELIMINARY HEAJli:NG SHALL BE HELD
AMONG THE PARTIES, THEIR ATTORNEYS AND TilE ARjll'J'RA:IORS. WITH THE AGREEMEN'l; OF THE ARBI
TRATORS AND THE P.ARTIES, THE PRELIMINARY HEARING MAY Ill!- CONDUCTED BY TELEPHONE CONFER
ENCE CALL RATHER :rHAN IN PERSON. AT THil. PRELJMiN,my HEARING THE MATTERS THAT MAY BE CON
SJDERED SHALL INCLUDE, wiTHOliT LIMITATIOJ'!, A PREllEARJNG SCHEDULING ORilER ADDRESSING (A)
EACH 1'ARTY'S DUI'Y :ro SUBMIT A DETAILED STA:rEMENT OF CLAIMS, DAMAGES AND/OR DEFENSES, A
STATEMENT OF THE ISSUES ASSER:rED llY EACH PARTY o?-ND ANY LEGAL AUTHORITIES THE PARTIES MAY
WISH TO II RING TO TI!E ATTENTION OF THE ARBITRATORS; (D) RESPONSES AND/OR REPLIES TO THE PLEAD
JNGS FJLEil IN COMPLIANCE WITH SUBP4RT 2(A); (C) STII?ULATIONS REGARDING ANY UNCONTESTED
FACTS;' (D) EXC!UNGE AND ,PREMARKING OF ALL DOGmfN',I'S WBJCH'EACH PARTY BELIEVES MAY BE
OFFERED A:r THE FINALARBITRATION HEAJUNG; @ T,BElllENTIDCATION AND AVAILABILITY OF WITNESS-
ES, INCLUDING EXPERTS, AND SUCH MA,TTERS REGARDING \\TINESSES INCLUDING THEm
AND A SJIORT SUMMARY OF EXPECTED TESTIMONY, (F) WIIETHER A STENOGRAPlliC
OR OTHER OFFICIAL RECORil OF THE PROCEEDINGS SHALL BE MAJN:rAINED;AND (G) THE POSSmiLITY OF
UTILIZING MEDIATION OR OTHER ALTERNATIVil. METIIODS OF DISPUTE RESOLuTION.
(f) FOR PURPOSES OF TillS PROVISION, "TilE PARTIES" MEANS GRANTORS, BENEFICIARY AND
TRUS:rEE, AND EACH AND ALL PERSONS AND ENTITIES SIGNING TillS AGREEMENT OR ANY' OTHER AGREE-
MENTS DET\VEEN OR AMONG ANY OF Till! PARTIES AS PART OF THIS TSANSACITON, "THE PARTIES" SHALL
'ALSO INCLUDE INDIVIDUAL PARTNERS, A17FILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS ANDiOR
REPRESENTATIVES OF ANYPARTY TO SUCH DOCUMENTS, AND SHALL INCLUDE ANY OTHER OWNER AND
HOLDER OF TillS AGREEMENT. . , .'
...
(g) THE PARTIES SHALL IIAVE THE RIG TIT TO INVOKE SELF HELP REMEDIES (SUCH AS SE:r-OFF, NOTlFI
CATION OF ACCOUNT DEBTORS, SEIZURE' AND/OR FORECLOSURE OF COLLATERAL, AND NON-JUDICIAL
SALE OF PERSONALl'ROPERTY AND l<EALPROPER:rY COLLATEEAL) llEFORE, DURINGORAFTERANY ARBI
TRATION AND/OR REQUEST ANCILLARY OR PROVJSIQNAL JUDICIAL REMEDIES (SUCH AS GARNISHMENT,
ATTACHMENT, SPECIFIC PERFORMANCE, REQsrVJW, INJUNP'IQN OR RESTRAINING ORilER, AND SEQUES
TRATION) BEFORE OR AFTER ANY ARBITRATION. THE PARTIES NEED NOT AWAIT THE OliTCOME OF THE
ARBITRATION DEFORE USING SELF-HELP REMEDIES. 'USE OF SELF-HllLP OR ANciLLARY AND/OR PROVI
SIONAL JUDICIAL REMEDIES SHALL NOT OpERATE ,j.S 'A WAIVER OF EITHllR PARTY'S RIGH:r TO COMPEL
ARBITRATION. ANY ANCILLARY OR-PROVISIONAL REMEDYWHICII WOULD llE AVAILABLE FROM A COURT
AT LAW SHALL liE AVAILABLE FROM TilE
Q1) THE PARTIES AGREE THAT ANY ACTION REGARDING ANY CONTROVERSY DET\VEEN THJl PARTIES
SJIALLEITBERilE BROUGHT BY ARBITRATION, AS D1'1!CRIDED HEREIN, ORBY JUDICIAL PROCE&DINGS, BUT
SHALL NOT DE PURSUED SIMULTANEOUSLY IN DIFFERENT OR ALTERNATIVE F.ORMS. A TIMELY WIIITTEN
NOTICE OF INTENT TO ARBITRATE PURSUAl'fl' TO THJS AGREEMENT STAYS AND/OR ABATES ANY AND ALL
ACTION IN A Tl!lAL COURT, SAVE AND EXCEPT A HEARING ON AMOTION TO COMPELARDI'fRATION AND/OR
THE ENTRY OF AN ORilER COMPELLING ARBITRATION.AND 'STAYING AND/OR ABATING THE LITIGATION
PENDING :riiE FTLING OF THE FINAL AWARD' OF THE ARBITRATORS. ALL REASONABLE AND NECESSARY
ATTORNEY'S. FEES AND ALL TRAVEL COSTS SHALL DE /I. WARDED TO THE PREVAILING PARTY ON ANY
MO:riONT.O COMPEL ARBITRATION AND MUSTllEPAID TO st!CHPARTYWITHIN TEN\10) DAYS OF THE SIGN-
ING OF THE ORilER COMPELLING ARBITRATION; - -
(I) ANY'!'ARTYSEEKINGT.oARDITRATESHALLSERVEA'iVRITTENNO:riCEOFINTENTTOARDITRATETO
Pa&elOofll OOT-1:2103 -IBC9004"
15
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ANY AND ALL OPPOSING PARTIES Wl'f1IIN HAS ARISEN, A DISPUTE IS DEFINED TO
!lAVE ARISEN ONLY. UPON RECEIPT OF SERVICE Oli PROCESS, INCLUDING SERVICE OF A COUN
TERCLAJM, FAILURE TO SERVE A WRITI'ENNOTICE OF INTENT TO ARBITRATE WITIIIN TilE TIME SPECIFIED
ABOVE SHALL BE DEEMED A WAIVER OF THE AGGRIEVED PARTY'S RIGHT TO COMPEL ARBITRATION OF
SUCH CLAIM,. THE ISSUE OF WAIVER PURSUANr TO TillS AGREEMENT JS AN ARBITRABLE DISPUTE.
. . .{\!.!
G) ACTIVE PARTICIPATION IN PENDING LITIGATION DURING THE 360 DAY NOTICE PERIOD, WHETIIER
AS PLAINTIFF OR DEFENDANT, IS NOT A WAIVER OF THE lUG liT TO COMPEL ARBITRATION. ALL DISCOVERY
OBUINED IN THE PENDING LITIGATION MAY BE USED IN ANY SUBSEQUENT ARBITR4TION PROCEEDING
(k) THE PARTIES FURTHER AGREE TJiAT (I) NO ARBITRATION PROCEEDING I!EREUNDER SIIALL BE CER
TIFIED AS A CLAllS ACTION OR PROCEED AS A CLASS ACTION, OR ON A BASIS INVOLVING CLAIMS BROUGIIT
IN A PURPORTED REPRP.SENTATIVE CAPACITY ON BEIIALF OF THEGENERAL PUBLIC, OTHER CUSTOMERS
OR POTENTIAL CUSTOMERS OR PERSONS SThDLARLY SITUATED AND (II) NO ARBITRA'\'ION PROCEEDING
REREUNDERSIIALL BE CONSOLIDATED W!TII; OR JOINED IN ANY WAY WITII, ANY OTHER ARBITRATION
PROCEEDING
(I) ANY ARBITRATOR SELECTEU SIIALL DE KNOWLEDGEABLE IN THE SUBJECT MATTER OF THE DIS-
PUTE. EACH OF TilE PARTIES SIIALL PAY AN EQUAL SHARE OF THE ARBITRATION COSTS, FEES, EXPENSES,
AND OF TilE ARBITRATORS' FEES; COSTS AND EXl'ENSES.
(m) ALL SUTUTES OF LIMn'ATIONS WIDCII WOULD OTHERWISE BE APPLICABLE SHALL APPLY TO ANY
AND ALL CLAIMS ASSERTED IN ANY ARBITRATION I!ROCEEDING IIEREUNDER AND TilE COW.ffiNCEMENT
OF ANY ARBITRATION PROCEEDING TOLLS SUCH STATUTES OF LIMITATIONS. .
(n) IN ANY ARBITRATION PROCEEDING SUBJECT TO THIS PROVISION, TilE ARBITRATORS, OR MAJOlUTY
OF THEM, ARE SPECIFICALLY EMPOWERED TO DECIDE (BY DOCUMENTS ONLY, OR WITIIAIIEARING;A'fTHE
ARBITRATORS' SOLE DJSCIIETION) PRE-IIEABING MOTIONS WIDCH ARE SThl!LAR TO PRE-
HEARING MOTIONS TO DISMISS AND MOTIONS FOR SuMMARY ADJUDICATION.
(o) .'ffils ARBITRATION PROVISiON.SIIALLSURVIVE ANY TERM!NATION,M!ENDMENT, OR EXPIRATION
OF TilE AGREEMENT INWl!ICII TIIJS PROVISION IS CONTAINED, UNLESS ALL OF THE P;ffiTIES OTIIERWJSE
(p) THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT EVIDENCES A TRANSACTION INVOLVING
INTERSTATE COMMERCE. T!JE FEDERAL ARBITRATION ACT SIIALL GOVERN THE INTERPRETATION,
ENFORCEMENT, AND PROCEEDINGS PURSUANT TO TilE ARBITRATION CLJ).USE OF :rJIJS AGREEMENT.
(q) TilE ARBITRATORS, ORA MAJORITY OF THEM, SHALLA WARD ATTORNEY'S FEES AND COSTS TO rHE
PREVAlLINGPARTYPURSUANTTOTHETERMSOJ!TIDSAGREEMENT.
(r) NEITIIER THE PARTIES NOR THE AB)l!TRATORS !)lAY DISCLOSE THE EE!STENCE, CONTENT, OR
RESULTS OF ANY ARBITRATION I!EREUNDER WITHOUT PlUOR WRITTEN CONSENT OF ALL PARTIES AND/OR
COURT ORDER.
(s) VENUE OF ANY ARBITRATION PROCEEDING HEREUNDER SIIALL BE IN THE COUNTy WHERE BENEFI
ClARY IS LOCATED.
Notwithstanding the provision above relating to coud\Icting a foreclosure sal(s) pursuant to the provisions of this Deed Of Trust, the
Trustee sball
1
and is hereby directed to, comply with the provisions of Chapter Sl of the Texas Property Code (the
11
Property Code")
as it may be anwnded and in as oft:M date or dates of any proceedings conducted pursuimt to this Deed OfTrust. Jn
particular, the location and time of sale shall be held in accordance with Section 51.002 of the P.roperty CoM or any mnendments there-
to or re-enactment or revisions to such law,
Grantors t>flpulate and )!gree that for pUiposes of det-eoninlng the fair mtuket value of tho :Property (or any.portioO thereof), as such
term is used in Seclion. 51,0.03 of tho TexaSPropyrly Code, Is. sold. at anon-judicial fored!)Sure sale pursuant to the tenus of this
Deed Of Trost (and in accordance with Section 51.002 of the Properly Code), faotoxs shall be used to detemllno such
Property's fatrmarket value, for such purpOses: (a) the Property shall be Vlilued
11
AS IS" without any value being anticipated for any
improvements or rofutbisbing to be conducted, or conducted, after tbe date of tho foreclosure sale, (b) the intention of the purchaser
to re-selllhe Property promptl)', wilhout any extensive holding period._ (c) any re-sale shall be for cash without financing by the
seller, (d) all reasonable costs Of closing a re-sale sball be deducted from the reasonable costs of closing a re-sale shall be deducted
from the estimate of fair market value, such as attorneys' fees, title policy premiums, surveYor fees and expenses, the then prevailing
broker's or salesman coillmission, uripald ad valorem tax amoUnts, and (e) the application of a iliScounHo the value to applied to
any future sales prlco to anive at its 1hen current fair market value. Grantors fi1rther stipulate that any value given to such Property in
connection with Grantors.' obt:ainfng of the loan from Beneficiary to which this Deed Of Trust relates, or not any other thne or times,
shall not be used and shall not be considered for guidance in determining the fair market value of such Property on the date of any such.
foreclosure sale..
Leasehqld Covenents If the interest of Grantora in the Property is a leasehold interest and not a ownership, then tho lien of this
Deed Of trust shall be up<m the leasehold rights wd bono fits of Grantors, but, in no event shall any of the burdens or obligations under
said leasehold be assumed by, or be the Beneficial}' absent 8Jl. expre,s.s written instnnnent, executed by B.eneficiary
assuming such obligations, which shall be within. the sole disct\')tion of Beneficiary.
To the extent Gr.mtors-<lwn a leasehold interest in all ;r any portiqn of the Property, Grantors hereby covenant and agree as follows:
(a) GrMtors will at all times fully perfonn fltld comply with all agreements. covenantS, tenm apd CQnd.itions imposed upon or
assuro.ed by i}. as tenant or undl)t any andoill.leases a_ffecting the Property (collectively
1
1he true and correct: cOpies of
11 ofl3
15
;!
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which Grantors shnll deliver to Beneficl;iy, and that if Grantors shall fail to do ro, BeneftCiary may (but shall not be obligated to)'tnke
any action Bencfici;uy deems necessaty or desirable to prevent or to cure any default by Grantors in thcperfo'nnsnc6 Of or
with any of Grantor's covenants orobUgation.s Upon receipt byBe'neficiary from the landlord under the Lease of any
written notice of default by .Grantors thereunder, defa\t1t r any written nOtice of default
1
or the nature thereof be questioned or denied
by Grantors or by any party on aud'on behalf of Grantors,. Grantors hereby expressly gtant to Beneficiat)' alld agree that Beneficiacy
shall have the and immediate right to enter in and upon the leased' premises or any pait thereof that Beneficiary deems nee.
, essary or desirable in order" to prevent or to cure any default by Gnmtors under the Lease. Beneficiary may pay and expend such sums
of money as Benofi9iary in its sole dlsctotion deems necessary for any such pmpose, and Grantors hereby to pay to Beneficiary,
immediately upon demand, such sums so paid and expended by Beneficiary. All swns so paid and expended by Beneficlacy shal!-
accrue at the rates set forth in the Note added -to and be sec\lf'ed by thb lien ofthis Deed OfTrust.
..
(b) Grantors will not surrender the leasehold eState and interest hereinabove nortenninate or oanciel the Lease; and it
will not: without the express wrlttenc6nsent ofBeneficiary. modifY, change, supplement, alter or amend the Lease eithet orally or in
Writing. Any su'Ch ternrlnatiorr, caocellatiollt modification, change, supplement. alteration or amendn,.-ent of the ieaso without the prior
written consent the.(eto by Beneficlazy shall be void and of :no force and effect. As further security to Benefioia.ry, Gmntom shall deposit
with Deneflciary an original oftbe Lease and aU amendments thei-eto'or a certified copy thereof. to be tetained by BenofiClaryuntt1 thQ
indebtedness secured hereby is fully paid.
(c) No release orforbearanee of any Of Grantors obligations under the Lease, pursuant to the Lease or otherwise, shall release
Grantors from any of its obligations under this Dcxd Of Trust, including obligations with to the payment of rent as provided
for in the Lease and tho performance of all of the tenns
1
provisions, conditions and contained in \he Lease, to
be perfotmed and complied with by Grantors therein. .
(d) Unless Beneficiary shall .otherwise expressly coJlHcnt in writing, the foe title to the propert)r demised by the Lease a.'nd th6
shall not merge but shall always remain separate and distinct. notwithstanding the unfon of said estates either in the
.. landlord or in th6 tena.nt or in a third party by or otherwise:
(e) If. there shall be filed by or against Grantors a petition under the Bankruptcy Code, J 1 U;S.C. 101 et seq. (the ''l3at1krupteY.
Codej, and Gill.Dtors, as lessee under the tease; shall determine to reject the Lease pursuant to Section 365(a) oftlte Bankruptcy Code,
Grantors shall give Beneficiary not less than thirty (30) days prior notice of the date on w,hich Grantors shall apply to the Bankruptcy'
Court for authority to reject tho Lease. Beneficiary shall have tbe right, but not the obligatiori, to Grantors within. such ten
day period a notice stating that (i) Beneficiary demands th!lt c;Jrhntors assume and assi&n thO Lease to Beneficiary purs.llant tO Section
365 Bankl11Ptor. Codo p.nd (ii) Beneficinty covenants to cure or provide adequate assunmCe ofphimpt CUI'd'ofilldefaults ttnd
provide adequate a.ssU!ance of futuro perfo:ro1mice under the Ji Eenefictary .seiyes upon the. in the
preceding sentence,. Gninto:rs shall not seek to reject the Lease and &ball oomply wfth fbe demand provided the: elapse (i) of the
preceding sentence. within 30 days after' the notice shall have been given 1o the perfoiJllanco by'Beneficllify 'Of the coVenant
provided for in clause (il) of the preceding sentence. Further, effective uponthe entry of au ordet' for relief in respect of Grantors
Chapter 7 of the Bankruptcy Code, Grantors hereby assign and transfer to Beneficiary a nonexcl\l!Jlve apply to the Barikiuptcy
Court under Subsebtion 36S(d)(l) of the Bankruptcy Code for an ordeJ:' extending the peri<ld during which the :Uase may be reJected
or assumed,
NO OR AI. AGREEMENTS
TillS WRITTEN AGREEMENT REPRESENTS THE FJN'Al. AGJlliEMEN'f llETWEEN THE PARTIES AND MAY NOT
BE CONTRADTC1'.]ill BY EVIDENCE OF PRIOR. OR SliDSEOilEN'f ORAL AGREEMENT OF
THE PARTif...S.
THERE ARE No tlNWRlT'rEN ORAL AGREEMENTs RETWERN THE PARTIJi'E .
Datod this -------,--2.."=-_ ______ _;_;__day 200.2__.
STATE OF micAs
COUNTY

GRANTOR:
.,.
2001 South Laredo streat
Address
&In 'Antonia, Texa.."3

Tills .instrmnent was' acknowledged before moon---------"--------'-----------

Notary Public, State of Texas
My commission <xplros:: ____________ _
Pa.gc 12ofl3
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STATE OF TEXAS
COUNIYOF __ _

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. This instrUment was acknowl8dgcd before me on
by __ I
STATil OF TEXAS
COUNIY OF ' aEXAR

I
Notary Public, State of TeXas
My conunlssion expires:..,/c.' -------------
/
(Partnorship Aeknowledgmenl) '
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Tlilil acknowledged before me on 2, by Walter SCott Jensen, Sole
Merrbet: of Sta Management, LLC, a Texas limited ccmoany, general,partner(s)onbehalfof
-Stac:i 'Properties I Ltd a Texas , imi ted partnt?rshi p. b""!Jnl f of SSli d partnership.
. . t;&.&
STATil OF 11lXAS
. COUNIYOF __ _

Notazy Public, o Texas
My commission ______________ _
(Col}lotatlon Acknowlediruent):
This instrument Was acknowledged before me
ey __________________ as __

cotpOrntion, on behalf of said corporation
Notary State ofTexas
!
My expires:------------,.----
i
t.
After .recording, retum to Beneficiary, at !ts n1ailing address, as:
AF'J'ER l<ECORDINO, PLEASE RllTURN TO:
m:rJlRNATIONAL BANK OF COMMERCE
Credit Department
130 B. Travis
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l>as;o 13 ofll OOT-12J(ll. mC9004
15

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Tract 1:
EXHIBIT "A"
LEGAL. DESCRIPTION
5.779 acres of land situated In the City of San Antonio, Bexar County, Texas,
being Lot 4, Lot 5, Lot 6, Lot 7, Block 39, NCB 3698, Edgewood Addition,
unrecorded Plat flied. In Bexar County Tax Assessors Office Bexar County,
Texas, and a portion of lot 53, Block 39, NCB 3698, las Villas Oe as
Texas; said 5.779 aero tract of land being partfcularly described by
metes and bounds as follows:
BEGINNING, at a found 1/2 lncth Iron rOd on the southerly right of" way line
Merida Street, for the northeasterly corner of said Lot 53, Block 39, same
being the northwesterly corner of said Lot 4;
THENCE, S 84' 22' 25" E, along the southerly' right of way line of Merida
Street, a distance of 706.66 feet to a found 1/2 Inch Iron rod on the
northwesterly right of way I line of The Union Pacific Raf I road;
THENCE, Southwesterly, along the arc of a curve to the. left having a radius
of 2865,00 feet, a central angle of 14' 22' 30", .an arc l.ength of 718.80 feet
and a chord bearing: s 43co 18' 41" W, 716.91 feet, to .o f'ound 1/2 Inch fran
rod;
THENCE, s 36' 02' 64" W, continuing tile northwesterly right of way line
of The Union Paoi'flc Ra:llraod, a distance of' 163,64 f'eet to a set 1/2 Inch
fron.rod on the northerly right of way line of" Ceralvo for the
southeasterly corner of saJd Lot 53; ,
THENCE,
Street,
N 84, 10' 44" W, along the norther-ly right of' way line of Ceralvo
a d-fstanco of' 35.88 feet to a set 1/2 Inch Iron rod;
THENCE,
crossing said Lot53, Bfock 39, the following courses;
N osco 34' 47" E, a distanCe Or 90.14 'Feot to a set 1/2 Inch Iron rod;
s 83' 48' 09" E, a distance of 10,75 feat to a set 1/2
Inch Iron rod;
N os 11' 51" E, a .distance of 21.99 feet to a set 1/2
Inch Iron rod;
N s3 48'
09" .w: a distance of' 13;64 feet to a set 1/2
Inch irOn rod;
N os 11'

a distance of 230.44 feet to a set 1(2 InCh Iron rod;
u a3 48' 09" w, a dlsiance.of 23.07 'Feet to a
set 1/2 Inch Iron rod;
N oa 11' 51" E, a distance of' 18.94 feat to a set 1/2 Inch Iron rod on tho northerly
line of" saiO Lot 53
1
Block 39;
THENCE, N 84 25' 13" W, along the northerly line of said Lot 53, Block 39, 'a distance
of' 120;01 f'eet to a 'Fo(Jnd 1/2 Inch Iron rod for an lnterl'or angle corner of said Lot
53, Block 39, same being the southwesterly corner of said Lot 4;
THENCE, N '14' 30" E, along tfie easterly line of said Lot '53, Bfock 39, a dfstance
of 363,95 feet to the POINT OF of herein described tract, and containing
5. 779 acres of land, moro or loss,
15

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EXHIBIT "A"
(continued)
Tract 2: .
tho East 8,31 feet of Lots 57 66, Block 40, NCB 3699, a.ll of Lot 17, Block 40,
NCB 3699, Edgewood Addition, as recorded In Volume 1625, Page 317, Deed and Plat
Records of Bexar County, Texas, and all of Lot 18, Block 40, NCB 3699, H.A. Stauffer &
H. G. Deviney Subdivision as recorded In Volume 3975, Page 223, Ooed and Plat Records
of Bexar County, Toxas; said 2,069 acr& tract of ,land being more particularly
descrIbed as 'fo II ows:
BEGINNING, at a 1/2 Inch Iron rod set on the northerly right of way line of Merida
Street, said 1/2 Inch Iron rod being N 94 22' 25" W, 8,31 "Feet from tho southeast
corner of" said Lot 65;
THENCE, N o6 14' 53" E, crossing said lots 57 through 65, Block 40, along the westerly
. line of that certain tr.act of land conveyed to West Coast Produce Company, Inc: as
recorged In Volijme 7133, Page 968, Official Pobllc Records of" Bexar CQunty, Texas, a
distance of feet to .a 1/2 Inch' Iron rod set;
THENCE, S 64 21' 53" E, along the northerly line of said lot 57, at a distance of
8,31 feet passing the northeast corner of" Lot 67, same being the northwest corner of
Lot 17, at a distance of 127.92 feet passing the nOrtheast corner of Lot 17, same
Ualng the northwest corner of said Lot 18, In all a total distance of 247.52 reet ton
1/2 Inch Iron rod set for the northeast corner of said Lot 18, same being the
nQrthwest corner of Lot 19;
THENCE,, S os 14' 53" W, along the convnon bOundary, line between Lot 16 and lot 1.9, a
distance of 364,09 Teet to a 1/2 Inch Iron rod set on the northerly right of .way line
Uerlda Street, for the southeast corner of said Lot 18, same being the southwest
.comer or Lot 19: . .
THENCE, N 22' 25" W, along the northerly right of way line of Morlda Street, at a
distance of 119.60 feet passing the southwest corner of Lot 18, some bolng the
southeast corner or Lot 17, at a distance of 239.21 feet passing the southwest Corner
of Lot 11, same being the southeast corner oF lot 65, In all a total distance of
247.52 feet to tho POINT OF BEGINNING of herein described tract, and containing 2.069
acres .of' I and, more or I ess,
Tract 3: .
Lot 17, Block 3, New City Block A36; Gillis Hood, Unit 2, anaddltlon to tho City of
San Antonio, Bexar County, Texas according to the map or plat thereof, recorded Jn,
Volumo,9512, Page 91, Deed and Plat Rocords or Bexar County, Texas, SAVE AND EXCEPT
that portion conveyed to the City of San Antonio In Voluma 6202, Page 1204, Official
Public Records of Real Property of Texas.
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... o,..QII Fees: $42 ' ' 1
03/03/2005 . 2:SBPN II Pi\gtls 15
Flied &. Fieoordod in the Of(lcial Public
Records of BEXAR COUNTY
COUNTY CLERK
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JlE,U.ESTATELIENNOTE
Amount: $1,300,000.00
Date: DECEM!iER Cf , 2Q05
For value received, the receipt of which is hereby acknowledged, the undersigned, jointly and severally, (hereinafter
''Bortower", whether one or more) promise to pay to the order of INTERNATION,AL BANK OF CO:r.fMERCE (horeinafter
''Lendern), at 130 E. Travis, San Antonio, 'Bexm' County, Texas 78205-, the sUm of
. ONE MILLION THREE HONDRED'THOUSAWD AND N0/100 DOLLARS
Dollars{$ 1,300.000. 00 ), in legal and lawful money- of the United States of' America, with interest as it
acmuos on the principal balance from. date cf advance of such principal until paJd. .
The interest rate shall be per annum; or
XX TheinterestratesluUbefloating-at 0.25%' NEW YORK
_FRIME 'RA.TE (''Prinle.Rate") (descn"bed below) is It fluctuates .from time to provided.
ho.':"eyer, nti event shall the rate (plus in excess thereo, if any) to be paid on the unpald
pnnctpal of this Not!'- be less percp1t nor more than the maximum legal rate
allmyed by applicable iaw. The starting interest rnte on this Note shall be 7 25% percent per
annum, The rate of interest due hereunder shall be recomputed as_ of the date of any change in. the Prime }.\ate,
The nrrERNATIONAL "BANK OF PRlMBRATE shall mean the omnuallendlng rate of interest
announced !rom time to time by lender, as its prime rate.
XX The NEW YORK PR.Jl,1B RATE shall mean theannuallending .rate of interest announced from time to time by
1P Morgan Chase & Co., 'New Yolk, New York, as i.ts rate, lfthe New .York Prlme'Rate has been ;elected as
the Prlme Rate and if; thereaftU, a prime rate is not announced by JP Morg:m Chase & Co,, New York, New York,
then the: Bank Prime minw: one percent (.1%) shall be the Prltne
Use of either of said PrimO Rates is not to be construod'as a or representation that.iuch rates are favorable. than .en other
iate or index, that rates on other loau.s or cmlit fs.cillties may not be based on other indices or: that .rates on loans to others may not be
. . .. .
lhe intetest is calculate<! Oil"a 360-day factor 1q1plied on a 365-&y year, or a 366-dayyesr, in !he event that the year is a leap year, on
the UJ;tpaid principal to the date of each installment paid and the payment made credited first to the discharge of the interest acciued and-
the balance to lhe reduction of th'e principal. Provided, however, thilt in the event the lnterest rate reaches the ro.uimum rate allowed
by applicable law, said maximum legal .rate sbalibe computed on a full calertdai year 3651365 tlays basis or on a 3661366 days basis, in
the. event that the year 1s a leap year. The interest cbatzed and fOr.will not exceed the ma>tWum all9wed by law.
Matured Unpaid amounts will be"ar interest compuied on a full calrodar)ear 3651365 days 3661366 days basi:i, in the event
that the year ls a year, at the highest legal rate ofinterest allowed by Texas law, Federal laW allows a bJgher interestnrte, .in
which oase, Borrower agrees to pay the rate allowed Qy Federal1aw. If applicable law does not set a maxhnUm. rate of for
matured unpaid amountS, then.Barrowetag:rus that lhe.maximwnrate fQr such.am?unts shall \>e.eighteell petWlt (18%)perannum,
. . . . . ! . . .
To the extent allowed by law, as the Jato charge thls{\greement,lJank may fn its sole discretion. (i)-increase
on the principal pOrtion of an)' payment amount that is not Tecetved by tho payment due date to the maximum rate allowed bY law,
C{)mputed on a full calendar yeru' ba'Sis from tQe payment due date tin til paid, or (U), sho'uld not be I!lade within teri (10)
days of tho due date, require 'Borrower fo pay a one time "late chatge" per late poiyment equal to five pei'cent (5%) oftbe ampunt ofthe
past due prinoipa1 and interest of such payment, with a minimum of$10.00 and a of $1,500.00 per late payment The ''late
cbaige" may be assessed without notice, -and sball be imm.ediately due and payable. This provision is inapplicable if the" outstanding
EdebtWnes.s under the is accelen.ted. No late charge will be _on any when the only delinquency is due to late
tcaarges assessed on earlier payment and the is olhmJ!.se payment. ' ;
frn.e and unpaid orlnoipai oftbis arid an accnied and'unpaid interest aCe payable as follows:
Number ofPavments Amount When Pavments are Duo
SEE ADDENDUM TO REAL ESTATE. LIEN NOTEAND BALLOON RIDER ATIACHED tt&RETO AND INCORPORATED
HEREIN.
FinalMaturityDate: DECEMBER St 2010
Lender may, at its discretion, adjust the amount of periodic payments. described above to assure that the will fully
amortize the principal oftbls note (ln tlie stated maturity any "Balloon" or unequal payment.
TillS HAS TBE FOLLOWI\'lG DEMAJ:l!'
At any time, and fromtixn9 to time, whether o; not prior to and/or during payment dates, Le.ndel' may, in its sole and
absolute discretion, reschedule, reanange and/Qr accelerate, in whole or in part
1
the outstanding and unpaid principal bala.D.ce, and all
\uzpaid interest Under this Note. BoWWer agree.s tmd promises to pay tinder aU.aeelerated principal and all accrued ;md'
unpiidinterest on such principal. No .i:J.Qtiw of intent to shall, be :reqnired of Lender and Borroy,;er expressly waives any right
to notice ofLender's intent to acrelero.te, The foregoing right to ma).::e demand for immediate payment of this Note, in whole .or in part,
tn.aY be exercised by I&niler for an)i:reason\vhntsoevtl', whether or not Borrower is ill defauh hereunder and in advance. ofits.schedlded
maturity. .
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The failure to .paY any of the abovestaied payme.nt(s) of principal or rut)' interest thereon, when.the same is due and
payable, shallpeJ;ID.it Lender at its option. to accelerate the maturity, wi$outnotice to Borrower, of all. or any portion, of the remaining
Unpaid principal balance outstanding and all accrued and unpaid intetest of this Note, whereupon the same shall be due and payable
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immediately,
t.cnder, at its discretioD.t mar, declare ail owiug by :Borrower (ID.cludlng endors;ers and/or iuanw.tors) lwmedlateiy due and payable : .
upon deeming itself to bo affected and/or insecure by reason of any material change in any of Borrower's (including any . . ..'
.
endorsers and/or guarantors) p.et worth, or by reason of any otl!-erm.ate.{jal change of condition whether or not descdbedhere!n : ;: .:
:) ... . . . .
Borrower and Lender intend that the loan by this Nofe (the "ioan") bo in strict compliance with appllcabie usury laws. . .:.i; . .=
If at anytime any interest for, t:;:JJ.arged or re-ceived under this Note or otherwise in connection vlith the Loan would be = :-
usurious-under applicable law, then regardless of the provisions of this Note or the and instruments evidoncin& securing or , . '
otheiWise executed in ccmnecti.on with the loan or lillY action or event (including, without prepayment ofprlncjpalhereunder
or aCCleration occur to this Note Loan. it is agree& that allswns detennined ',,
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to be usurious shall be iri:unediatelyCredite<fby the Lender as a payme.t\f of principal Ill' it this Note h8.3 aheady been pai_d. -/:: j:,
iru.m'ediatclyrofunded to the'Borrower. All compensation Which constitutes interest muler applicable law in connection with_ the Loan : : . . : ,: . ..
sbllll );le amortized, allocated and spread over the full period of time' any indebtedness is owing by Botrower, to the grl!:atest .- '. i :
without exceoding the allowed by appllceble law in effect from time to time during such ;: .. . - ..
Jnno event shall the ofChapte! 346 of the Texas Flnanee cdde, (which regulates certain revolving loan accounts. Ond .::: ' :.=! ... ::!;:::!.'
revolving trl-party {ICCotults)'applyto the Loan. !, ' . ,. .. , :.
IN THE EVENT ANY ITEM; ITEMS, TERMS OR PROVlsiONS CONTAINED IN TillS J1'!STRUMENT ARE IN CONFLJcr
WITH THE LAWS OF Tim STATE OF 'fllX,\S; OR FEDERAL LAW, TillS INSTRUMENT SHALL BE AFFECTED ONLY AS TO
ITS APPLICATION TO SUCH ITEM, ITEMS, TERMS ORPROVls!ONS,AND SHALL IN ALL OTHER RESPECTS REMAIN IN
FULLFORCE l\Nn EFFEcr. IT lS UNDERSTOOD AND AGREiiD THAT IN NO EVENT AND uPON NO CONTINGENCY
Sl!ALL THE BORROWER OR ANY PARTY LIABLE HEREON, OR HEREFORE, BE REQU!RED. TO PAY INTERllST IN
EXCESS OFTim 1\ATEALLOWED:BYTHELAWS OF THE S'DITE OF TEXAS OR FEDERAL LAW, IF SUCHLAWPERMITS
A GREATllRRATE'OF INi:EllJJST. THE lliTENTION OF Tilli PARTIES BEING TO CONFORM STR!CILYTO TiiE USURY
LAWSASNOWORHEREiNAFTERCONSTRUBDBYTHECOURTSl!AVJNGJOR!SDlCTION.
THE BORROWER, ENDORSERS, SURETJES, GUARANTORS AND AlL PERSONS TO BECOME LiABLE ON TinS NOTE
(THE "OBLIGORS") HEREBY, JOINTLY AND SEV.EI\ALLY, WANE llXPRESSLY ALL NOTICES OF OVERDUE
INSTALLMENT PA\'Mm\TS, AND DEMANDS FOR PAYMENT THEREOF, NOTICES OF INTENTION TO ACCELERATE
MATURITY, NOTICES OF AcruALACCELEPv\TION OF MATURITY, PRESEN!'MENT, DEMAND FOKPAYMENT, NOTICES
.OF DJSHONOR, PROTE&f, NOTICES OF PROTEST, AND DILIGENCE IN COLLECTION HEREOF. EACH OBLIGOR
CONSENTS THAT THE LENDER OR OIJJER HOLDER OF TR!S NOTE MAY KI ANY TIME, AND FROM TIME TO TIME,
UPONl,UlQUEST OF OR BY AGREEMENT .WITH ANY OF THEM, RENEW TinS NOTE liND/OR EXTEND THE DATE OF
MAlYRITYIIEREOF OR CHANGE THE TIMli OR METHOD OF PAYMENTS WITHOUT<!OTICE TO ANY OF THE 0T11ER
OBLIGORS, MAKERS, SURETlES OR ENDORSERS, WHO SHALL REMAIN BOUND FOR THE PAYMENT HEREOF.
OBLIGORS WA!Vli' EXPRESSLY THE );ATE FILING OR ANY SUIT OR CAUSE OF AcriON HEREON,. OR ANY DELAY IN
THE HANDLING OF ANY COLLATERAL. OBLIGORS AGREE THAT. HOLDER?$ ACCEPTANCE OF PARTIAL OF
DELINQUENT PAYMENTS OR FAIL\JlOl'OF HOLDER TO EXllR.CISEANY R!GIIT OR REMEDY CONJ'AiNED llERElN OR
IN ANY INSTRUMENT GivEN AS SECUJUTY FOR THE PAYMENT OF T.H!S NOTE SHALL NOT BE A WAIVER OF ANY
OBLHJKIION \)F THE OBLIGORS OR CONSJ'ITUTE WAIVER OF ANY PR!Ojl. OR SUBSEQUENT DEFAULT, THE HOLDER
MAY REMEDY ANY DEFAULT' WITHOUT WAIVING THE DEFAULT :REMEDIED ANP MAY WAM ANY DEFAULT
WITHOUT WAIVING ANY' OTHER PllJOR OR SUBSEQVliNT DEFAULT.
'. . . . ' . . . ,. ' . .
As for this Note. in.debtcdness which may at aby 1lme be owing by Borrower any endorsers and/or
guarantors hereof) to Lender or other Lender hereof. Borrower (and any endorsers and/or guarantors hereof), gives to Lender or other
Holder hereof, a security interest, a lien and C:Qntractual tight of and to all cfthe :Son-ower's (and any endorsers and/or
guarantt!IS here.oi) money, crydl_ts, depos.it accoUllts
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accouitts and! or other property now in. or at any time hereafter CQmfugwithin, the
custody or control or other Holder hereof, or ruiy member bank or branch bank ofinte.tnationalBancsharcs Corporation,
vAt ether heldfn. genersl (It special or deposi4.or.forufekeeping or otherwise. Every, such sceurlty IDterest and right of set-off
:may b1: exerdsed without demand or notice to Borrower (and any and/or guarantors hereof). No secuiity interest or right of
set:offto sw:b. seUiiiyinterest shall be_ been waived by any act otconduct on t"I\epart oftheLender, or by any
exercise such rlgbt of set-off or to enforce such Se.curlty interest, or by any delay in so doing. Every right ofset-offand
security interest shall continue force nnd Cffect until such right ofsetoff or seourlty in.tcre.st is speci:tically waived or released by
an instrument in writing exe<!Uted b}r Leb.der. The foregoing is in additiO.D. to lmd not in lieu of any rights of set-off allowed by law.
In eonnection \Vi.tb. any transaction between Borrowcr'and Lender at any time in the past. or future, in the Borrower,
individually or jointly with others, bas granted cr grants Lender a lien (m anY real personal prOpertY., :Sorrower.agtees that the
lieq on such real md/or pefsonat prOperty to the extent'ofBorrower's interest shall also secure the. indebtedness ofBorroWer to Lender
by this Note and aU extensionS ahd modifications ' '
. Financing Sfatements: At Lender's request DebtOr wlit sign all Other doc.unlents, including f"mancing and
certificates of title, to perfect, protect, and continue Len.der's securlty interest in the Collateral at the sole cost of Borrower. Debtor
hereby authorizes Lender to 'file a Financing Statement, an Amended Financing Statement anq. a Continuation financing Statement
(collectively tcfecred to s:s the St!ltement'') deScribJ:ng the Collatedtl. Where Collatl!.ral is iu the posseSsion af a third party,
Debtor\villjoin with Lender in notifying the third party ofLender's security Wteresrand obtaining a ControlAgreem'ent from the third
. party that'it is lioldi.ng the collatetal for the benefit of tinder. '
Ifthls Note, o't any part hereof, is not paid aceording to its tenns,is placed in. the hands of an attoiney or is collected
througl:t Poobate, Bankruptcy or other judkial or non-judicial proceedin&s, whethei- matured by expiration of time or by the exercise of
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the option given _to the Lender to inature it, the Borrower and all or hereafter personally liable hereon nOw agree to and shall
pay an additional_amount equal to reasonable and necessary attomey's fees and associated costs for'pollection. Said attorney's fees and
costs of C()De<ffion, once liquidated and paid b.y Under or otherwise, allowed by law, will boar interes-t at the rate of interest applied tO
the matured and past-dqe ofthi.
1
fNote as_ ouch rete may bhange from to the date due until repaid.
. .
In the event any'tegal action'orproctedlng, by <U"bitratiC!lf Ol' otherwJseJ is Oommep.ced witb.,the enforceD,leut of, or
declaration oftjghts under this Note. and/or any instrument or written agreement reqqired or delivered under .or pursuant to tbe terms of
this Note, any controversy Of clainl. Whether soUnding in contract, tort or statute, legal or equitable; involving in any way the
. firumcing or the transaction(s), tbe subject ofthls Note, or any other proposed or actual loan_ or extension of credit, the prevailing party
to recover reasonable and necessary attorney's fees, J.>ar;jlegal costs (including alJ.ocated costs for in-house legal
sen::ces), costs, expenses, expert witness fees and. eo:st:s. anli otb.ernecessary disbun;ements' made in on with any,such action or
proceeding, in the .by the f11et-ftnder,
Leader, fn its sole discretion and obligation on Lender to do so, may advance pay sums .on bebalf and for the ben.efit of
Borrower fo! costs fot,t_he protection and preservation of tho collataial s'eouring this Note and other- costs that may be
appropriate, b1 sole discretion. _inclUding but not limited to ins:uraD.ce preroimfu;, ad Va1orell1 and attorney's fees. Any
wlrlcb may be so paid out by Lender and all sums paid fqr premiums, as aforesaid, including the costs, expenses aud
attoniey's teas paid Uuny suit affecting said propcrtywlumne<:essaryto the hereof shall interest from the tes of such
payments at-the interest .rate applied to the ma.tured and piipcipa,l balaD.ce of this Note and shall bOp aid by :Borrower to Lender
upon demand, at the same p1ace at which this Note is payable, andShaU be. deemed a part of the Bebt and recoverable as such in all
aspects.
Bon-Ower rc.serves the right to prepay, prior to inaturity, all pr m'l.ypart of the of.thls Note without penalty, aud interest shall
immediately ceaSe on any amount so prepaid. Ali prepaYmeuts shall Pe applied to, the 1.2st matuiing installineots of principal, without
interrupting the installment payntents,
. . .
Any assumption, if pennitted by Lender, by any other porson, partnO!:'ship, oor:por11tfon, organi1.<1tlon or any other without the
express written consent of Lender, shall not the liability ofBorrpwer for the payinent of. this
. . ...
. In tho evont thattb hereinafter described real propertY is sold, conveyed, o.r disposed ofwithoot the prior Written Consf:nt of
the Lender, the maturitY of this Note may, at the option. of the Lender, be acceler.ated afid.L!1dCitllay innnediately demand payment of
the then outstanr;li;ng SUlll tqgetherwith all acc:rited an!l unpaid lnteiest thereon.
. . . . . . .. .
:Son ower and U.udor agree that in,tb.EJ evf.ni qerault tbis Note or under any document
executed'by Borrower Iu connection with, or to secure the payment of, this Note (l)'Londer sball nQt required to comply with
Subsection 3;05(d) Texas Revised Partnership A.ct and (2) Lendet shall nQt be reqnired to or exhaust th.e assets
of Borrower before pl111iuing any J9nledy against one or more of the partners of:Sorrower or the proPerty of such partners,
. ARlUTRATION,
BORROWER AI\'D LENDER FURTHER AGREE AS FOLWWS:
(a) ANY AND ALL CONTROVERSIS BETWEEN 'BE PARTIES; EXC'EPT SUCH CLAIMS AND
CPNTROVERSIES WHICH ARE CONSUJ.\1ER lULATE:i> AND INvOLVE AN AGGREGATE AMOUNT IN
COl\'TROVERSY OF LESS TEN THOUSANJ? :PPLLARS SHALL BE 'R.ESOLVED BY
ARBITRATION IN ACCORDANCE WITH THE COMMERCIAL ARlliTRATION RULES OF THE AMERICAN
ARlliTRATION ASSOCIATION IN EFFECT AT im: TIME OF FILING, UNLESS THE COMMERCIAL
ARBITRATlON RULES CONFLict WITH TlllifPROVISION, AND IN sucH EVENT THE TERMS OF THIS
PROVISION SHALL CONTROL TO THE EXTENT OF THE CONFLICT. NOT\VITRSTANDING ANYTHING
CONTAINED HEREIN TO THE CO!\'TRARY, SAVE AND ID<qiPT SUBPARAGRA)?HS'(k), (m), (o), (p), AND(')
HEREIN, THOSE CONSlm1ERREL.4,TED CLAIMS AND CONTI!OVERSIES INVOLVING AN AGGREGATE
AMOUNT OF LESS THAN TEN DOLLAAS (S10,000:oO) SHALL BE CONDUCTED IN
ACCORDANCEWITH THE AMERICA!< ARlllTRATION FOR THE RESOLUTION OF
CONSUMER-JtELATED DISPU'I'ES OF LESS THAN TEN THOUSAND DOLLARS. ANY AABITRAT!ON
HEREUNDER SHALL BE BEFORE AT LEAST THREE NllUTRAL ARBITRATORS ASSOCIATED WITH THE
AMERICAN ARBlTRATlON ASSOCIATION AND SELECTED IN ACCORDANCE WITH THE COMMERCIAL
AllBfffiATION RULES Ol'TH;E AMERICAN ARBITRATl<)N Ass_OpATION . FAlL\llJ.E P,FANY ARlliTRATOR
TO DISCLOSE ALL FACJ:S WHICH MIGHT. TO AN OBJECTIVE OBSERVER.CREAT A REASONABLE
. IMPRESSION OF THE >IRBITRATOR'S F ARTIALITY, AND/OR MATERIAL ERRORS OF LAW SHALL BE
GROUNDS [IN ADDmON.TO ALL OTHERS] FOR VACATUR. OF AN AWARD RENDERED .PuRSUANT TO
THISAGREEMENT, . . . . . . . . . '
(b) THE AWARD OF THE ARBITRATORS, OR A MAJORITY OF THEM, SHALL RE FINAL, AND JUDGMENT
Ul'ON THE AWARD RENDERED MAY BE ENTE]!ED IN ANY COURT, STATE OR F:EDERAL, HAVING
JURISDICTION. THE ARBITRATION AWARD SHALL BE IN WRITING AND SPECIFY THE FACTUAL AND
LEGAL BASES FOR Tim AWARD; Ul'ON TltE REQUEST OF ANY PARTY, THE AWARD SHALL INCLUDE
FINDINGS OF FACf AND CONCLUSIONS OF LAW. . .
(c) ARlliTRAllLE DlSPUTES INCLUDE ANY AND ALL CONTROVERSIES OR CLAIMS BETWEEN THE PARTIES
OF WHATEVER TYPE OR MANNER, INCLUDING WlTHOUTLIMITATION,ANY CLA)M ARISING OUT OF
OR RELATING TO TillS NOTE, ALL PAST, PREsENT AND/OR FliTURE: CREDIT FACILITIES AND/OR
AGREEMENTS INVOLVING THE PARTIES, ANY TR,ANSACTIONS BETWEEN. OR INVOLVING THE
. FARTIES,AND/ORANY ASPECT OF ANY PAST OR PRESENT RELATIONSHIP OF.THE PARTIES, WHETHER
BANKING OR OTHERWISE, SPECIFICALLY INCLUDING Al\'Y ALLEGED TORT COMMITTED RY ANY
PARTY. .
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(d)
(e).
THE PARTIEs SHALL ALLOW AND PARTICIPATE JNDlSCOVERYlN ACCORDANCE\vtrHrHX FEDERAL.
RULES OF ClV1L'PROCEDURE FOR A PERIOD OF ONE HUNJ)Rllil TWENTY (120)'DAYS AFTER TH.
FJLJNG OFTJIE!ORIG!NALRESPONSIVE PLEADJNG. DISCOVERY MAY CONTINUE THEREAFTER AS
AGREED JlY TIJ:E PARTIES Olt AS ALLOWED JlY THE ARJllT:RATORS. min:ESOLVED DISCOVERY
D!SPUTESSHAtiLBEBROUGRTTOTHEATTENT!ONOFTHEARB!T.RATORSBYWRITTENMOT!ONFOR
PROPER DJSPoSIT!ON, INC!iUDJNG RULING ON ANY ASSERTED OBJECTIONS, PRIVILEGES, AND
PROTECTIVE i>RDER REQUESTS Aim' AWARDING REASONABLE ATTORNEY'S. FEES TO THE
PREVA!LING'j'MIT, . . '
lN THE EVENT TilE' AGGREGATE OF' ALL AFFlRMAT!VE CLA.!MS ASSERTED EXCEED SSOO,OOO.OO,
EXCLUSIVE OF iNTEREST AND ATTORNEY'S FEES, OR UpON THE WRITT.ERJ:r&QUEST OF ANY PARTY,
(1) PRIOR TO filE DISSEMINATION OF A LIST OJ! pOTENTIAL ARBITRATORS, Tl!E Al\ffi!HCAN
ARBITRATION 4SSOCIAT!ON SHALL CONDUCT AN IN PERSON CONFERENC.E WITH
THE PARTIES >4ID TIIEi& ATTORNEYS :fOR TIJ:E PURP9.SES AND FOR SUCH ADDITIONAL
PURN>SES ''AS THE PARTIES OR 'hi:E AMERICAN. AlllltrRA.TION ASSOC.IJ\l'ION MAY DEEM
APPROPRIATE, (A) TO OD'tAIN ADDri'IONAL INF011MATJ:ON ABOUT THE NA;fURE AND. MAGNITUDE OF
T1IE DlSPUTE Al'!D'ri!E ANT.iCil'ATED LENGTH OF HEARINGS AND SCHEDULING: (B).'.I:(> DISCUSS THE

RESOLUTION BE APPROPRIATE, AND (2) AS PROMPTLY AS PRA.q'ICABLE AFTER THE
SELECTION OF 'filE ARll!T:RATORS, APRELIII!INARY HEARING SIIALLDE HELD AMONG T!J.E PARTIES.
TI!EIRAT!'OllNEYSANDTHEA!UliTRATORS. WITIITBEAGREEMENTOF:rn;E.)RBITRATORSANDTBE
PARTIEs; BEARING MAY DJi!'CONDUCTED BY Tl!;LEPHONE cONFERENCE CALL
RA.THER THAI'! IN PEkSON. AT TilE PRELIMINARY HEARJNG TilE MA.TT!mS' TnAT MAY Bll
CONSIDERED lNCLUDE, WITHOUT LIM;I.TATION, A PREHEARING SCHEDULING .ORDER
ADDRESSING.(A) EACH PARTY'S DUTY TO SUBMIT A DETAILED STATEMENT OF CLA.lMS,DAMAGES
AND/OR DEFE!!SES;A: sTATEMENT OF Tim ISSUES ASSERTED DY EACH.P.\.ltT-Y AND ANY LEGAL
AUTHORITIES 'filE PARTIES MAY wisH TO BRING TO THE ATTENTION OFTl!E ARBITRATORS; (B)
I!ESPONSES AND/OR REPLIES TO l'IQ!! PLEADINGS FILED IN COMPLIANCE WITH SUD? ART 2(A); (C)
STI!'ULATIONS :REGARDING FACTS; (D) EXCHANGE AND PR)UdARKlN(l OF ALL
DOCUMENTS .\VmCH E>I.CH PARTY. BELIEVES MAY DE OFFERED AT THE FINAL ARDIT:RATION
HEARING; (E) Tim IDENTI:FICATION AND AVAILA.iliLITY OF WITNESSES, INCLUDri!G EXPERTS, ANil
SUCH ADPI'I'IONAL M,).TTE!<S WITNESSES lNCLUDING TIIEIR lllOGRAPII!ES AND A
. SHORT SUMMABY OFTI!EIR EXPECTED TESTIMONY, (F) Wl!ETHERASTENOGRAPHIC OR OTHER
Oi1FICIALRECGRD OF TID( PROCEEDiNGS SHALL DE MAINTAINED; AND (G) THE POSSIBILITY OF
UTILIZING MEl>IATiON.OR o'TimR ALTERNATIVE METIIODS OFDlSPUTERESOLiJTION.
. ' ... _ .
(f) FOR PURPOSES OF THIS PROVISION, "Tl!E PARTIES" MEANS BORROWER AND LENDER, AND EACH
AND ALL PERS'oNS AND ENTITIES siGNING THIS AGREEMENT OR ANY OTHER AGREEMENTS
BETWE)':N OF THE PARTIES AS PAiiT OF TinS TRA.NS>\.CTJ:ON. "TilE PARTIES" SHALL
ALSO .AFF.ILIATES, OFFICERS, DIRECTORS, EMPLQYEES,AGENTS
. SUCiiDOCUMEIITS,A,l'ID SHALLIN<;LUD:E ANY OTBER
' . . . .
(g) :THE PARTIES S':HALL IIAVE THE RIGJIT 'rO.INVO:KE SELF HELP REMEDIES (SUCH. AS SET-OFF,
NP11}1lCAflQ!j' OF AtCOTINT DRIJ;i'OliS, SErZuRE AND/OR FORECLOSURE OF COLLATERAL, AND NON-
: JUD!CIAL'SALE,OF PERS6NA,l P.I\_OP.ERTY ANI) ltEAL COLLA:):ERAL) DEFORE, DURING OR
AFTER AJ{Y.Al!l/ITRA.TION _tq;!QUEST ANCILLARY (}R
(SUCH AS GARNISHMENT, A'['TA,CHMENT, SP;ECIFIC PERFORli!ANCE,.RECE).VER, INJUNCTION OR
; . RESTRA.INlli\) />iU?xR, IlEFQRE .OR AFTER ANY A!Ul!TR.ATION, THE .PARTIES
NEJ(D NOT AWAJ,T TilE' O.uTCO.l\l;E OF. THE ARBITRATION llEFOREUSINGSELFHELl':REMED!ES. USE

.WAIVER,OFE)Tl!ERPARTY'S RIGHT TO COMPEL ARBITRATION. ANY ANCILLARY OR PROVISIONAL
BE AVAILhllLE,FROMA COlJRT AT LAW SHALL BE AVAILABLE FROM THE
(h) THE AGREE TrrAT ANY ACri(>N REGARDING ANY CONkROVERSY BETWEEN THE PARTIES
. .sHA.LL Er'rlltR. DE sRouqHT nv ARDITRA.TIUN, AS DE$CRIBED HEREIN, -OR DY JUDiciAL
... ;

STJiY.S AND/OR A:BATES ANY AND ALL ACTION IN A TRIAL SAVE AND J>XCEPT A HEARING ON A
MOTION TO COMPEL ARDlT:RATION AND/OR TilE ENTRY OF AN ORDER COMPELLJNG ARD!T:RATION
.
AWARDED TO THE'l.'REVAILING: PARTY ON ANY MOTION TO COMPELAlllliT:RATION AND
MUST BE PAID TO SUtltl'ARTYW!THINTEN (10) DAYS OFTHESIG]!IING OF THE ORDER COMPELLING

(l) ; ANY PARTY. si:!Au, SERVE A WRITTEN NOTICE OF INTENT TO ARlllTRA.l'E ro ANY ANih\LL OPPOSING
. ' PARTiES)Vl'fllij'f 360 J,iAYS'AJJrERDrSPU'I:\l;RAS ARISEN ..j.DISPUTE IS DEFINED TO HAVE ARISEN
. ONLY OF OF A COUNTERCLAIM,
' FA.!LURE TO SEkVE A WEITTEN NOTICE .OF INTENT TO ARBITRATE THE TIME SPECIFIED
.OvE SHALL.B,E A \VAIVEi<,.OFTBEAGGRmVED PARTY'S RIGIITTO COMPELA!Ul!T:RATION
OF SUCH CLAl!>L THE lSSUE ori WAIVER PURSUANT TO THIS AGREEMENT IS AN Allll!TEADLE
DISPUTE. . .
::; ....
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(I) ACTIVE :l'ARTICIPATIONJN LITIGATION DURING THE 360 DAYNOTlCE PERIOD, WHETHER
AS PLAINTIFF OR DEFENDANT, IS NOT A WAIVJ;;R OF THE RIGHT TO COMPEL ARBITRATION, ALL
DISCOVERY. OBTAINED IN THE PENDING LITIGATION' MAY BE USED IN ANY SUBSEQUENT
ARBITRATION PROCEEDING, .
(I<) Tim PARnES FURTRER AGREE THAT Q) NO ARBITRATION PROCEEDING HEREUNDER SHALL BE
A CLASS ACTION ORPROC;EED ASA CL,I.SS ACTION, OR ON A BASIS INVOLVING cLAn\ IS
lfROl1GHT lN APURPOlll'.ED REPRESENTATIVE CAPACITY ON BEHALF OF THE Gl!:NElU.L PUBLiC,
OTHER CUSTOMERS OR POTENTIAL CUSTOMERS OR PERSONS SIMILARLY SITUATED AND (I!) NO
ARBITRATION PROcEEDING B:EREUNDER SHALL BE CONSOLIDATED WITH, OR JOINED IN ANY WAY
Q)
(m)
(n)
(o)
(p)
(q)
WITH, ANY OTHER ARBITEATION PROCEEDING, '
ANY ARD:riRATOR SELECTED SHALL BE KNOWLEDGEABLE IN THE SUBJECT MATTER OF THE
DISPUTE. EACH OF THE PARTIES SHALL PJ,Y AN EQUAL SHARE OF THE .ARBITRATION COSTS, FEES,
AND OF THE ARBITRATORS' :FEES, COSTS AND x:PENSES, .
ALL STATUTES OF LIMITATIONS WHICH WOULD OTHERWISE BE APPLICABLE SHALL APPLY TO ANY
AND ALL CLAIMS ASSERTED IN ANY ARBITRATION PROCJU:DING HEREUNDER AND THE
COMMENCEMENT OF ANY ARBITRATION PROCEEDING TOLLs SUCH ST-\.TUTES OF LIMITATIONS,
lN ANY ARBlTRATION PROCEEDJNG SUBJECfTO T:fiiS PROVISION, 'fHE AR'Bfrn.ATO:RS, OR M.A.JOR.rrY
OF THEM, .ARE SPECIFICALLY El\IPOWERED TO DECIDE.(llY DOCUMENTS ONLY, OR WITH A HEARING,
AT TREARlliTRATORS' SOLE D!SCRJtTION) PRE-HEARrNG MOTIONS WHICH ARE SUBSTANTIALLY.
SIMILAR TO P!lE-HEARING MOTIONS TO DISMISS AND MOTIONS FOR SUMMARY ADJUDICATION,
THIS ARBITRATION PROVISION SHALL SURVIVE ANY TERMINATION; AMENDMlll"f, OR lDCPIRATION
OF THE AGREJtMENT IN WHICH THIS PROVISION IS CONTAINltD, UNLESS ALL OF THE PARTIES
OTHERWISE EXPRESSLY AGREE IN WRITING, . .
Tlm PARTIES ACKNOWL:&DGE THAT TlilS AGREE1\1ENT EVIDENCES A TRANSA;CTION INVOLVING
INTERSTATE COMMERCE. THE FEDERAL ARBITRATION ACT SHALL,GOVEIU(TBE INTERPRETATION,
ENFORCEMENT, AND :PROCEEDINGS PURSUANT TO THE ARBITRATION CLAUSE OF THIS AGREEMENT.
THE OR A MAJORITY OF THEM, SJi:ALLAWARD ATTORNEY'S FEES AND COSTS TO TEE
PREVAILINGPARTYPURSUANTTOTHETERMS OFTHISAGREEMENT. ,
(r) NEITHER THE PARTIES NOR"fHEARBITRATORS :MAY DISCLOSE THE EXISTENCE,coNTENT,'oR
RESULTS OF ANY ARBITRATlONHEREUNDER WITHOUT PRIOR WIU'rtEN CONSENT OF ALL PARTIES
AND/OR COURT ORDER,
(s) VENUE OF ANY ARBITRATION PROCEEDING HEREUNDER SHA:(.LBE IN BEXAR COUNTY, TE)CAS.
THE TERM LENDER INCLUDES ANY OTHER OWNER AND HOLDER OF THIS NOTE AND THEIR RESPECTIVE
SUCCESSO:RS AND ASSIGNS. TillS NOTE IS GOVERNED BY API'UCABLE THXAS LAW, EXCEPT TO UJB EXTENT THB
USURY LAWS PF TEXAS ARE PRB-EMPTED l!Y FEDIIRAL LAW, IN WHICH CASE, SUCH FEDERAL LAW
VENUE OF ALL ACTIONS ON TillS NOTE, SHALL Lffi IN BEXAR COUNTY, TEXAS, AND ALL OBLIGATIONS REQUJRED
HEREIN ARB PERFoRMABLE IN llEXAR COUNTY; T)ll(AS,
If loan proceeds are to be. used primarily forpusonal, Cn' household use, the follqwing notice shall apply.
NOTICBTOCONSUMERS: UNDERTEXASLAWIFYOUCONSllNTTOT!llSAORBEMENTYOUMAYBESUBJECTTOA
FUTURE RATil AS f!IGHAS 24% ANNUAL PERCENTAGE RATE, OR THE STATE USURY CBU.ING, WHICHEVER IS LEsS.
Ifthls Note is to 00 secured by a lien on a dwOlling locatl'!d on the hereinafter descdbed property, then th; following notice shall apply.
. .
THE MAXIMUM INTEREST RATE SHALL NOT EXCEED TWENTY FOUR PERCENT (24%) PER ANNUM, OR THE USURY
C!l!LING, WHICHEVER IS LESS.
l'ayment hereof is secured by a vcndot's lien retained 1n Deed of even date herewith. to the :Borrower, aud Is additionally secured by .a
beed of Trust, Security Agreement and?in;wcing Statement of even date herCwitb.. executed by the Borrowet' and/or Qrantors thereof to
' . STEVE E . EDLUND ' , Trustee, upo:p. the following described real property:
hga 5 ot6
10
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NO.ORALAGREF;)\.rENTS
T)IIS WRITTEN AGMEMENT REPRESENTS THE FINAL AGREEMENT BET'YEJ'N THE PARTIES AND MAY NOT
BE CONTRADicrED BY RVJl?ENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUE!'."l' ORAL AGREEMENT OF

THEREARE.NOWRITTENORALAGMEMENTSBETWEENTHEPARTXES.
ATLliD, LTD. ' . '
a limited
:By: 'Delta 'Produce Marketing, tnc.,
''Borr<M<f' a. .''Borrower'
B)< By.
TypedName: . WALTER .SCOTT JENSEl! Typed Name:
Title: Title:
Address:
Addr""
, "Borrowa('
B)< By:
'JYpedName: Typed N'ame:
Title: Title:
,Address: Address
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ADDENDUM TO REAL ESTATE LIEN NOTE
Number of
Payments
(a) Fifty-nine (59)
(b) One (1)
Frequency
Monthly
Final Maturity Date:DECEMBER 5,2010
Amount of
P<ivments
Principal including
interest in the
amount of Eleven
Thousand Eight
Hundred Sixty-
seven and 22/100
Dollars
($11,867.22) each.
All outstanding
principal and all
accrued
1
unpaid
interest thereon
shall be due and
payable .
When Payments

Commencing
January 5, 2006,
and continuing
monthly on the
fiftll (5") day of
each successive
calendar month
until and including
November 5, 2010.
6n Final Maturity
Date.'
This credit facility was analyzed and ultimately priced based upon the
relationship between Borrower and Lender. Therefore, jf there is (i) a material negative change in the
deppsit and/or other banking relationships between Borrower and Lender, or (ii) a material change in the
fmancial cond{tion, ownership
1
management and/or control of the Borrower, which Lender reasonably
believes increases the risk ofrepa.yment, then Lender
1
in its sole and absolute discretion, may increase the
interest rate charged in connection withthls credltfacllity by up to 1.00%; as itmay.{loatfrom time from
1ime (i.e. interest rate will increase to 1.251)/o above the Nev{ York Prime Rate), .
Executed this _1_ day of December, 2005.
BORROWER:
Atled, Ltd., a Texas limited partnership
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BALLOON RIDER
THIS LOAN IS PAY ABLE IN FULL ON DECEMBER 5, 2010. YOU MUST Iq3P AY THE
ENTillEPRINCIPALBALANCBOFTIIELOANANDuNPAIDlNTBRBSTTiffiNDUE.
TilEBANKJSUNDERNOOBLIGATIONTOREFJNANCETIIELOAN. YOUWOULD,
TBERBFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTIJER ASSETS YOU
MAY OWN, OR YOU WOULD HAVE TO FIND A LENDER; WIDCHMAYBB TilE
BANK YOU HAVE TinS LOAN WITH AT MATURITY. YOU MAY HAVE TO PAY
SOMEORALL TilE CLOSING COSTS NORMALLY ASSOCIATED WlTHANBWLOAN
BVENJFYOUOBTAINRBFINANCINGFROMTIIESAMEBANK.
EXECUTED this !1_ day of December,
BORROWER:
Ailed, Ltd., a Texas limited partnership
By:
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EXliTBIT "A"
TRACT 1:
5,779 acres land situated In the City of San Antonio, Bexar County, Texas,
being Lot 4, Lot 5, Lot 6, Lot 7, Block 39, NCB3690, Edgewood Addition,
Texas, and a portion of' Lot 53, Block 39, NCB. 3698, Las Villas De Merida as
Texas; said 5.119 acre tract of land being more particularly described by
metes .and bounds as follows:
'BEG1NNING, at "a found 1/2 inCh Iron rod on the southerlY right of way 1 ine of
.Merida:Street, !for the northeasterly comer sa.id Lot 53, Block 39i sa111e
qeing the ,northwesterly corner of said Lot 4;
lllENCE;. S 84'" ?l' 25" E. along the southerly right of way I ina of Merida
Street, .a distance of 706.56 feat to a found 1/2 Inch iron rod on the
northwesterly right of way Jline of The Union Pacific Railroad;
THENCE, Southwesterly, along tha arc of a curve to the'left having a radius
of 2865,00 feet, a central angle of 14"' 22' 30", an arc length of 718.80 feet
and a chord bearing: S 43 16' 41 W, 716,91 feet, to a foond 1/2 inch iron
rod;
THENCE, S 36"' 02' 54" W, continuing along the northwesterly right of way line
of The Union Pacific Rai Jraod, a distanca of 183.64' feet to a set 1/2 inch
Iron rod on the northerly right of way I Jne of Ceralvo Street for the
I y comer of said lot 53 i.
:rHENCE
1
N 84"' .10' 44" W, along the northerly right of way line of.Ceralvo
Streett, a distance of 35,88 -Feet to a set 112 Inch lr'l.m rod';
THENCE, crossing said lot 53, Block 39, the following courses;
N os 3'4' 47" E, a distance of 90.14 feet to a set 1/2 Inch Iron rod;
s 83Q
48' 09" t,

distance of 10,75 feet to a 1/2 lhch iron rod;
N 06" 11' 51" E, a dlsi:anca o'f 21.99 feet to a set 1/2 Inch Iron rod;
N 83" 48' 09" w. a distance of 13.64 feet to a set 1/2 inch Iron rotf;
N 06'" 11' 51" E, a dlstarn:e o-r feet to a set 1/2 !11Ch Iron rod;
N 03"

09" w. a distance of' 23.07 fetit to a se't: 1/2 Inch Iron rod;
N 06" 11' 51" E, a distance of 18,94 feet: to a set 1/2
line' of said 53, Block 39;
Inch l ron rod on the northerly
THENCE, N 84" 25' 13" W, along the northerly line of said Lot 53, Block 39, a distance
of 120.<11 feet to a found 112 Inch Iron rod for an Interior lingle corner of said lot .
53, Block 39, salll(t. being thi:! southNesterly corner Of said lot 4;
THENCE, N 06'" 14' 30" E, along the easterly-line of said Lot 53, B-lock 39
1
a distance
of 363.95 feet to thB POINT OF BEGINNING oF herein described tract, and containing
5.779 acres of land
1
1110re or less,
TRACT 2: .
2.069 acr:es o-r land situated In the City of San Antonio, Bexar County, rexas, being
tho East B,31 feet of lots 57 throug. 65, Block 40, NCB 3699, all of Lot 11, Biook40,
NCB 3699,.Edgewood Addition, as recorded In Volume 1625, Page 317, Deed and Plat
Records of Bexar County, Texas, and all of lot 18, Block 40, NCB 3699, H.A. Stauffer &
J(.G, Deviney Subdivision as recorded In VolUJle 3975, Page 223, Deed and Plat Records
of Bexar County, rexasi said 2.069 acre tract of land bol11g particularly
described as 'follows:
BEGINNING, at a 1/2 Inch Iron rod set on the northerly right of way line of
Street, said 1/2 inch Iron rod being N 04-'" 22' 2-5 W, 8.31 feet froQ the southeast
comer of said Lot 65;
THENCE, N 06 14' 53 E, crossing said lots 57 through 65, Block 40, along the wsterly
l Ina of that certain tract of land conveyed to West Coast Produce Inc, as
recordeCi in Volcyne 7133, Page SB8, Official Public Records o-r Bexar County, Texas, a
distance of 364.13 feet to a 1/2 inch Iron rod set;
THENCE, S 84" it 53" E, along tha northerly lfne of said lot 57, at a distance of
8.31 feet passing the northeast corrler of lot 57, same thG northwes:t comer of
lot 17, at <l distance of 127.92 feet passing th6 northeast comer of lot 17, same
being the nortlwest corner of said Lot 18, In all a total dlstBnce of 247.52 feet to a
112 inch Iron rod set f"or the northeast comer of said lot 1S, same being the
nortfrNBSt .corner of 19;
10
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lHENCE, S 08'" 14' 53" W, .along the com110n boundary I ina between lot 18 and lot 19_. a
distance of 364.09 fiet to a 1/2 inch Iron rod set on the northerly right line
of Merida Street, "for the southeast corner of said Lot 18, same bslng the southwast
corner of lot 19;
THENCE, N 84" 22' 25" W, along the northerly right of way line of Merida Street, at a
distancE} of 119.60 feet passing the south;.Yast comer of lot 18, same being the
southeast corner of Lot 17, at a distance of 239.21 feet passing the soirthwst comer
of lot 17, same being the southeast comer of' lot 65, In all a total distance of
247.52 feat to the POINT OF BEGINNING of herein described tract, and Cl.lrltalnlng 2.069
acres of land, 1110re or less,
TRACT 3:
lot 17, Block 3, New City Block A38, Gillis Hood, Unit 2, an addition to the City of
San Antonio, Bexar County, Texas according to the map or plat thereof, recorded in,
Volume 9512, Page 91, Dead and Plat Records of Bexar County, Texas, SAVE MID EXCEPT
that portion conveyed to the City of San Antonio in Volume 5202, Pag 1204, Official
Public ReCords of" Real o: Bexar County,
'TRACT 4:
Condominium Unit 104, Building A; New City Block 16957, Post Oak Condominiums, In the
City of San Antonio, Bexar County, Texas, according to Declaration
fecorded In Volume 8, Page 159, and 8, Page 1B9, Recprds Bexar
County, .Texas, tQgether with an undivided 4.5290i519 percent Interest In the conron
eleaents,
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EXHIBIT
2/J
,QN

Apn11!i,2011 ------------<
A"""'t:N"o:
Borrowen AtledLTD
Thb iitd dtaw ... ma.yQ.e withwt notice, andsball be
immediately dup
.Eacll payment shall b<: ;tpplied ali or Its scheduled due d!t& a.nd
ln tbo imler ofapplk:atioo u. the Lentkrlnjts sole dl$cre(fon
may fronl tim to tftn.e.e!eci
'I)itl fi!'iliR'e of'Bomw.'ef to pay any. of the paymeut(s) ofprl!!cfpal
or-.a.ny .iilletes1. th.frm. Or ac.eri:Jed lilte. when llame ts
dua'af!d s'baU -pein)it iti the .
llltLMtty,'wllliout ncti<:::e tO BC)I'ro',lil'ef,"of an. or any portiOn, of the.
ouwaniiing unp:ttd pdnclpll ba(Bt}ec and all aqd wpald
and' all:acquel:f and ynp"ald late tharge:s: under tbe.Xote. I
tlii$ the: sarM sfiatt b<3 due payable
in!mediatefy.
My &itsta!ldlng and unpitd ,!tdqmpald interest
<til all fees, cl!a.rgei otll id 'this
1ntas'lfctRm:by, or for !lie ba!efitOt: lfaiiy, whiCh moah1
dU(I.'a!\li owing Oil the Pinal tfaturltjr Date are due ana payable on
5'Xb.dat0
Wgetller wilb any and all w:rued aild unpafd :interest' andlot
1ato t:b.argeS.
:Bonuwer teyiews ;l!lld' (lmndt the--Not,

611
p aey
pir,8.lltlum 'seal/ftyirltemW, I>ee4i Of'fitist.. and/or oth"Cr-liens
by r.wor.
B:etle .as au ixfl.e.rtet!JU' znd Wdd!dOf\!l of ..(hO
and, all S6curity s:urlty JJe.eds of
y F+r .. Ttust::,Mc11ocotberlien.s:aea!ed."byDwb:-oi'Trostsliludl""otolhet
Pl!'ial J 1 [.dan If any, wntiuUe; M wrlitro, in full
. uiyi.ZO 2 (orandetfeet.
'Borrower promises ro pay to the oofer of tntem:!tlanal Bd of
Com.meeol! the Ou.bitln<IIIIB .Pril\ci{Jd, .Balanco on the
aoconling ts> tho terou bm9ftogether.wfth \n!eresf taS it tcct:UI!S on
tho ou.tstan;ding Unpaid prln!pal balftnce lhttii patd. In -nQ. event
iball the illte of interest td be pa.d on !h'e uqpa.ld prlllofpal
balance ):te'letl than three quarters -pcrceqt(4.7.s-h)
per auntln1, nor mor., than legal ratb.il19wed by
a:pplli<able law:.
To ihe eldQrt.adQ9fcd b.y 1aw;as Ja.tc cltaJ:ge UP.iJeitliC"
NotWthls lu lt!r solo d!$ctetl6n (l)"ili<idise
the ihterest on tho prluelpat -porttoo otanypa.ym_ebt. an\oodt tbt"b
-not roo:i}!ed by:tbe p1iym$t duo date tJ.lltil.t'atd tdiho thbdmum
l;l.to aUqwed 'uJ law, 9toPuted {!n a fnU ta!endar"ye:ar basts trom
the payment doe-d"ate ll!l.iil patd,- (ii) sho.UM more
lhf!l .ten lotte, a (IJW..lilll.e "'atc'tltuge"
pet late fu five perccut ($%) Clftbe .:the
sUCh with. a mt.nhnutn ot
StO.OO .arl.da lr!Ufmlltll pee Iatopaymw.l.
TO 'I'HB BXTEm' AU.OWBD BY LAW; AIL MA'IUIUID
iJNPAIO' AM(}WfS WILt BEAR OOBRBST o\T THE
MtJmJUM LWi\L JNI'EEBST RA'FR ALLQWBD BY
Al'PLICA"BLH LAW. ItappllC&bla law JC!e$ not :Set: a nut:dmum
rate for matured vnp:ijd amQUQt$, I!JeU
tiW the I!le;dll1\lll)'rilo.for auch auioUnts $hhl\ liO ilghteen pe;reeot
(18\<hl ""'"""
N'O .bRAt;
TiiliJ wmrtm LOAN AGI\E.EMENr-l!ErREStNTS tHE
1'111. AG\<EEMENT llETWEEN THE l'"Allttils AND
_M.AY Nb'f m: .CONTRAmctED BY .EVIDENCE OF.
rRlOJt. cdNTEMPOiiANEous. OR strn:sEQQEzu oRAL
011- THE .PART.IES. ARE NO
IJNWRITl'EN OUL AGJlEEMENTS
.
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1ls25 Page 302 l.Spgs ... 20050290682 .
OF CONFIDElqlALITY ruGHTS; JF YOU ARE A NATURAL YOU MAY
lffiMOVE OJ\ STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT
BEFORE. IT IS Ffi..ED FOR.RECORD IN THE PUBLIC RECORDS: YOUR SOCLU. SECURITY
NUMBER OR YOUR DRIVER'S-LICENSE Ntn\1BER.
THESTI-.TEOP"J"eXAS
COUNIYOf 'ftt1Al!'
DEED OP TRUST, ASSlGNMI.NT O.F RENTS,
SEClJIUl! AGRUtd.EI'rt AND F.lllANCINGSTATEMENT
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mAT J. WE, or ElrnEROFU
Antp !.TD 11 Texas Hnitdd partnership oflbs
J;EXAR of 'l'&XAS 5Drl}dimcs hmlNfler ealkd Orntors
ofie Of 11\01) filr 1hc pil!pW-of '""!lritg 1M lndebW.nm duo;o"bcd,. and lu consld-..rnlon ofiW Plll'i ofTEN
DOLlARS {$ 10.00) to u.s lr. har.d b-flhc TJURt;e.becclnal\ M1Md,tbe l.!ld 11lfficl(ocy of w!Ud!.b M.tel;ly
md for"ll:.c fwth<:r 1))1\'l!derat\oo. of !be 11m. p!llpOUll!ld the ttu'1 hercil\lllkt set f<l-rth, GRANTED. SOLD, AND CONVEYED.
and by pttltl\15 do ORAN'T, SELL aM CONVEY unto Sl'EVE E. t:nr..mm Trustc-o, of
lntcrr.>.fk.cAI BW ofCC>:nnHr', \lO E. San AntOlik<. te.xu II!$ !U\:.stlt\ltts ortbll
foUo'>rlmg described property aitumd in UXAR, COilllty, Th:u.s (be.relMfleJ: tlxi"Propmy'j. to--wls:
'!HA.T,CtlTA1N Rut PROP!l.'rl LOCAttD n1 BEXAR COUlfJY, TSXAS BEING 110RK.l'A"IITIC(J!.ARL'i:
DSCiU:BED ON lX.HlS1T
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ATIACR"ED REUTQ lJID lXCORl'ORArED }{F:}{EW,
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TO HAVE ANT> TO UOLD &::seri:b< Ptopoeny, to-ge!Mr "'ilh lho: phi leges and
voto tlleul.d TntM, m:ho his or Jl"iw:nws RtWt mi Grtllt$.da.bmby bi.W tht:rmdva.lhdt bl-iri, Wtdil
lstntofi arnl migm w ano;l 1M preJlllses tlll'.o the 1:dd hls Sllb:stiMcs eWsns f
c'lu, 1gai.mt tho ,bhu otell p.rscns o.-10 ctal.n tbo nmo my p:!rt thtrcor.
""l"lll$ eoon)'lrt. howMr.ll IJ\!.<k hl TRlJST to UCim"' fi.ymeDl Red Eilal.! Lien h'oUI -- --
t ,._v.,_ a in (be pt{ndp.Jl Qne MjlUpn Three fflmdyed 'fhpusa"\l4
and HollOO DOLLARS{$" I 100 ooo oo
Atpm LTD. !! Texas HpitqsJ
who lbo &boYc G?Uitom, $b.Lil U!d lntc[(:b>usu-bl:y be
\o order of
DfTJ!:RID.i'IQllAI J!AN!(' OF cmml!Cf
h>:"kllf\et"rcfcmJ 10 n l6nfcill)',iofr..sC1tyof . at.N ,mrmnn ]HAlf COillllj,
ud p)'J-Ne ;a., thm!n pmrld.-4. lllk: llt.uut lUI lhercia p10vioding for ac-cc imtion
til1 Md roc Ri$Oill.bta Me<:nuy .
sboU!d-Gr;mon do and p;rtonU. all of\M U>d. hmi11 of said tbo
Sl!IM- Wt md p.&)'Jhle, llwl this w.ll bccomuull tnd \'nid ud of no f.Wltcfcn andeffcd, md shall bo
rt\ewd ,.t 1M upc:nto ofGnt.to:ws, by !be b=i112fltr ull!d Bcneliciuy (whethu ot tl)llfe).
Gr.urlom cov.ENANT -and AGP.lffi v follVIl'I-!-
Tbit lbty J1.wi\dl)' 1dud of uJd PTQJ>tY, b. sia>pk absofut_, a<l!i b-n tigbt. to C>)fl\-q' th6 nro-1; \btl Rid Pmp:rty is ftw
from tM nccrfu burinprovi&d.
EXHIBIT
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Doci-200502906S2
# 15
12/13/2005 PM'
e.-Filed & e.-Recorded in. the
Off.ioial Pub1io Reoo:rQs ot
BEXA!l. COUNTY .
GERRY RICKHOFF COUNTY CL'lmK
Fees 68,00

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THE STATE OF TEXAS .
COUNfY OF BEXAR
DI'ED OF r:RUST, ASSIGNMENr OF RENTS,
SECUJ,UIT AGREEMENT AND FINANCING STATEMENT

KNOW AIL MEN BY THESE PRESEJ-n:S:
THAT I, WE, or ElTimR OF US
ATLED. J!CD . a Texas Hrofted partnership of tba
County of BEXAR , . State of TEXAS , sometimes hereinafter called Grantors
(wbethet or for the, )>urpOses of secuiing the indebtOOness hereinafter described, and in conSideration oft\le SUi1\ ofTEN
DOLLARS ($10.00) to liS in halld paid by fhe bereinafternnmed. the Jeceipt and sufficiency of,which is hereby acknowledged,
and fmthe .further consideration uses, puqjOsGS and the lnlSts hereinafter set forth..have GRANTED, SOLD, ANP CONVEYED.
and by these presents. do GRANT, SELL and CONVEY unto STEVE E I EDLUND-., Tl'llS(ee, of
lnternational Bank of CommerCe, 130 E. Tnvis, Arltoilio, :Bexar CQ\mty, Texas 18205 and his substitutes or succcs.gors, all of tho
following des?"bed property situated in EEXAR County, Texas (hereinkfter the to--wit::
THAT CEWfAlN REAL PROPERTY LOCATED IN EXAR COUNTY, TEXAS BEING HORE PARTICuLARLY
DESCRIBED OU EXHIBIT
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ATTACHED HERETO AND INCORPORATED liEREIN 1
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TO HAVE AND TO HOLD the above describe-d Property, together witli the rights, privileges and appurtenance$ thereto OOlonging
unto the said Trustee, and to his substitutes or successors forever and Grantors do bind themselves, their heirs, exeautors,. admin-
'i.strators and assigns to wamnt alld forever defentl the said premises unto the said Trustee, his substitutes or and assigns for
ever, against the olaim or e1aims, of all persons Claiming or to claim the same any part thereof.
This conveyance, however, is made In TRUSJ: io secure. payment of one Real Estate Lien Note/PromissorY Note date<!
of even date . in the principal sum of One M1Jlion Three HonOred Uwusan
and No/100 DOLLARS($ 1. JOO. 000.06 ).(the "Note''), exetUted by the makers of said Note
ATl.ED, J.TD. , a T9xa.a limited partrtersbip
'::-----,--who together with the above named Gnmtors, shall hereinafter collectively and interchange9bly be refened to as
Grantors, payable to the order of
INTERNATIONAL BANK 0
::;----c- hereinafter referred Boneficiazy. in the City of SAN ANTONIO BEXAR County,
Texas and l?ayablc as there1fi including late clwges; bearing interest as therein 5tipulated, proviOing for acce:leration of matu
rity and fo! reasonable and auomois fees;
ShOuld do and J}erfoill}. all of the covenants and herein contained, and make payment of said indebtedness: as tb6
same shall become due and payable. then this conveyunce shalt beconw null and vo!d and of no further force and and shall be
relei\Sed at the, expense of Grantors, by the holder thereof, called Beneficiaty (whether one o: more).
Gr.mt01:s COVENANT and AOREB as follows:
That they are lawfully seb:ed of said Property. in fee simple. absolute, and have right to convey tho same; that said Property is free
from all H6ns and except as hmi'n provid.
ofll .DOTl2JI)3 1BC9004_
16
To protect title and possession of SE -. lroperty and to pay when due all J8xJ:.S and 11: ments now existing or hereafter levied or
assessed upon said Property, or the interest therein by this Deed Of Trust, and tO lprelierve and the hereby creat
ed as a fi.rst'and p'iior l!cn on said Property_ including any hereafter Jl'Jade a part of the realty,
To keep the improvements on said Property in good repair IDld coq.dition, a.nd not to penni! or commit any thereof; to keep said
buill:lings occupied so as not to impair the insunmce carried thereon.
To and keep insureg all improvements .POW or created upon sai4 Property against C!f damage by ftte and wind-
storm, aD.d any other hazard or hazards_ as may be re.M.ooably requirW :fioxn tUne to time by BOncficiary <Juring the tenn indebt-
edness hereby secured, to tb extent of the total amount" of the indebtedness herebr s6C11Ced, OJ;' to the extent of the full value
of said Jmprovemeots, whlohever is the'Jesse.r, in iuch fonn and with'$Uch insura_ncc company or companle6a.'l may be p.p_proved by
Beneficiary, nnd to deliver to Beneficiary tf.lo policies of such insurance ha\!ing attached to said policies such mortaage indemnify
'clause as Beoefichu:y shall direct) to deliver :renewa)& of any ruch policies to Beqeficiary aJ least ten (lO) days before dny such insur-
anc-e policies shall expire; any whlch Beneficiary may receive under policy or Poli?es, may be applied bf BeneOciary,
at itS option, to Jltduce the hereby secured, whether. then matured pr lo mature in the future, and in such manner as
Beneficiary maY, elect, or Beneficiacy may permit GI<!ntors "t9 use said to repair or replac:e all fmprovements dlUllaged or
destroyed and covered by said policy.
may employ for advice or other legal service at }3:eneficia.ry'e discretion ln connectiop.. with any .disp\l.te as to
the debt hereby.secuied or lien se<:uring same or this .instrument, or any litigatioq or arbitration pro-ceeding to whlch.the Benficiary
may be made a party on account ofthlaJien or which may affect the title to the ftoperty on acqount ofthls lien o_r which Illll.Y affect
the lltle to the Property securing the indebtedness hereby aecured or which mny affeot said debt or lien. Any reasonable and necessary
jl.ttot?ey's fees incurred sbatl.be added and be part of the debt hereby secUred.
. In addition to the land and improvements above descrlbc<i, the lien ofthls Dee4 Of Trust covenr.and fucludes all abstracts and title
' pnpers fUrnished or to be fum.Jshed Jn conne<:.tion with thO making of the loan evid1mccd by }fote, the payrnent of which is secured
horeby,
Gnmtors agree to pay on demand for aU bstracts, appraisals, recording and f4s in oonnection
with either the. clQSing of the loan secured hei"eby or the renewal, extensil?n, modification and/or rearrangement of any part of the
indebtedness secured hereby, or, Jn th,e a!Jemative
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such amounts expended by Beneficiary shall be. added to and be a part of the debt
hereby secured
That in the event Gt'antors shall fail to the improvements on the Property bert: by conveyed in good repair and condilion, or to pay
, promptly when due taxe.s and assessments, as afo're.said, or to the prlor lien of this Deed Of Trust on said or to
keep the and improvements insured, as aforesaid, or to deliver the policy,or pQ]lcle's, of or the renewal thyreofto.
Bencficlacy, as aforesaid, then Bene.6ciary niay, at his option, but without being required to tfo so, make such repairs, pay such taxes
assesSments, any tax title thereOn, remove any prior liens, Md prosecute or defeml any suits in relation to t)Ie presetva
tion of the prior of this DeedOf'I'rust on said Property, or insure and keep insured the improvements thereon in any_ amount not
to that above stipulated; that any sums which'may be so paid out by Bcnqfielary, Including tho costs, an!l attorney's
fees paid in any suit affecting said Pr.operty when neussary to protept the and all other expenses and P,OSts agreed to t?e paid
by Gtantors'under the Deed Of Trust which are not paid when due shall bear interest from tho dates of such payments at the vrematu-
rlty rate stated in tl_le Note _hereby \Uld shall be deemed a part of the debt hereby secured recoverable as such in
nit respects. In addition, Jn the event Grapto.rs shall fail to keep the buildings and lrnprovemen(s insured, as aforesaid, or to t:l.eliver the
poiicy or policieS, of insurance or the theryofto the BCneficiruy, as the Bcineficiary may, at hla option, but without
being required to do so, insure and keep insured the improvements thereon in any amount not to exceed that above stipulated (includ-
tng Without limitation, to tho extent allowed by law, the purchase of Single lrlterest Insurance which JSY provide coverage unly for
Beneficiary); that all sums .paid for insurance premiums by Beneficiary, as aforesaid, shaU bear jnterest from the dates of such pay-
ments at the prematurity interest rate contracted for in the Note hereby secured, _!l.Ud shall be }id by Grantors to Beneficlaty upon
demand, at the Same place at which tbC above-described Note is payable, aud be deemed a part of the debt hereby and
recov.erQble as such in all respe.cls. '
Grantors agree annually to f!UllishBeneficiary Vall dated J"e9tlp'ts eviden._'{ing payment of all against, and insur
,ance coverliig, the said Property. Such taxricelpts shall be furnished on or before fifteen (15) 'days prlor1o the d&W suqh taxes be<:ome
delinquent receipt siiaU be furnished on Or before re:O. (JO) da)'3- pri9rto the de. tO the Wrrent coverage expires,
If Grantors should fail to .f\J.mish such receipts. Beneficiary may requiro Grantore'fo .dQposit nionthly with o.p. the pa}'Qlent
d8tes hi the Note hereby secured "Jn addition to the monthly payment of principal a.p.d inte{CSt -provided in the .Note hereby
secured a sum equal to l/12 of the estimated aruiual taxes and insurance premiumS covering such Property, estimates to be made
'by Ben'eficiary. :Beneficiary' shall hold such deposits, without bond' and without a&.rual of interest to pa9 taxes' and insurance
preiniums as they become due, until the i?debtedness secured hereby is fully pai4 and the anct' to Grantors.
Subject tO taw aud notv.;ithstanding the pamgtBph, at Beoeficla.zys and in its sole Beneficiluy
. may require Grantors to pay on the day :monthly payments li!e due under the Note, unUI the Noto is paid in ful1, a :."UID
("Funds'') for (a) yeo.rly taxes. and assessments which :nlay attaln priority over*e of this Deed Of Trust es a lien on the Property;
. (b) yt:arly leasehold paymenli or ground rents on :the Property, if any; (c) yearly havud or property insmance premi.Ulll3; (d) year!y
flood insurance premiums, if any; (e) yeuly- mortgage insurance pteminms.,, If and' (f) ap.y sm;qs payable by Granton to
Benj:ficiary, in accordance with the preceding paragraph, l.D. lieu of the payment of mortgage insUiance premiums. These items are
called ''EScrow Items". Bemificiary may; at any. time, collect and bold Funds in an amount .not to exceed the maximum amount a lender
for a federally relat'ed mOrtgage loan may require for Grantor's escrow aqcount under the Federal Real Estate Procedures
Act of 1974 as amended from to.tirtie, 12 U.S.C._Sect.ion 2601, et seq. (''RF,?J?A"), unless anuther Jao,ythat applies to t}le Funds
sets u. lesser amount. Jf so, Beneficiary may, at any time, collect and hold Funds in any atnount not to exceed lesser am?unt.
Beneficiary may estimate the amount of Funds due on the basis of current data and reasonable expenditures of future
.Escrow Items or otherwise in acOOrdance \V:ith law.
:, The Fuilds shall be held in an :institution-whose deposits are fusured by a age.ncj; instrumentality, or entity
"Beneficiary, if Beneficiary is such an institution) or in any Federal Home loan BS;nk. Ben,.eficiacy the Funds to pay the
E;sproW Items. BCneficiacy maynot' charge for holding Funds, a.nnpally anaty-4ng the escrow acoo\Dll, or
; .
Page 2ofl3
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verifying the Escrow unless BenefiviSrtpays Borrbwer interest on the Funds'and appb ... .-tble law permits Beneficiary to make
such a chaJSe. However, Beneficiaiy may require Qtantors !O pay a one-time, charge for an independent real estate tax reporting serv-
ice used by i9- with this loan, unless applicable law provides otherwise. Unless agtc.ement is. made ur applica-
ble Jaw requires interest tO lie paid, Beneficiary shall not be required to pay Grantors any interest or earnings on the Funds, Oral)tors
<tnd Beneficiary may agree in writing, however, lhatintere._q shall be paid on the- :Funds. lfrequired by law, Beneficiary shall give to
_without charge, an annual accaunting of the Funds, showing credits ani:l debits to the Funds and the for which each
debit to _the Funds was IDI!:de. The Funds m pledged as security for all sums secured by this Deed OfTrqst.
If the Funds held by Beneficial}' exce-ed the mrolmts permilted to be held by applicable law,Beilefi'ciary shall account to Gfimtors for
the eXCC$'1 Funds in acconltwce witli ihc requiJ:yments Qfapplicable law. Iftlre amount ofthi-Funds held by Btmeficiary at anY time
i$ not sufficient to _pay the Escrow rtems when dtie, Beneficiary may so notify Grantors in writing, and, in suc}l case Grantors shall pay
Co l3e-Jieficia.ry the am0unt neeOssarf to_makc up the deficieDcy. Grantou shall make up the rleficiency in no more than twelve (12)
monthly payments, at s?l.e discretion.
uPon payment in full C?f i!ll suins S;C-CUrOO by tliis Deed ornust, Beneficiary shall promPtly refund .to Grantor:;; any Funds held by
Binefioiaty. If, 'under proceedings, shall ac-quire or the Property, Beneficiary upon the acquisition or sale
of the PropeftY., shall apply any Funds: held by Beneficlill}' at tho _time of tho acquisition or salo as a credit against the sums secured by
trus o,.q OfTrust. . . .
Grai!.tors shall nOt impose, or permit to be imposed, jUly restrictive covenants upOn the :Property herein descn'bed or execute or -file, or
pemrit to be fired, hny eubdiv:isipo plat or coodo'minjum or other instrunlcnt affeeti:ng so.Jd'P.roperty without the prior writ
ten consent ofBeneficiazy. '
All agreemtmts between auy !lf the hereto ar!l' bUeby Umitcd by these provisions whtcb shall all suc-h
'ments
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wbether now existing or thereafter ariSing. If a consttucfiQn of any document related to any transaction betwetn
Grantors and/oraDf other person Or executing this. Deed Of Trust, any term(s) orprovision(s) of anyMcumentJs
In conflict with appUcable laW, such be automatically'reforiDed and mod.Jfied u to complywilli applicable law,
without the pecesslty of e:JeCntlo!l o( bl'ly amendment or new
That in the event of default in the of anY insU!.lhnent, prinCipal or interest, or Of a late charge, of the Note hereby secured, or
in the Payment, when due, of any other secured hereby, in accorclance.with the tomis there.of, ot C?f a breacll of any of the
covenants herein contained be performed by Grantors !ben and in any of such events Benaficla.ry shall, at Bep.e1iciary's 'option,
GRANTORS HEREBY EXPRESSLY WAIVE NOTICEll OF NONPAYMI!NT, PRESENTMENT PO!< PAYMENT, pRESENTA-
TIONS/DEMANDS FOR PAYMENT, NOTICES OF lNTENTION TO ACCELERATE MATIJJUTY, NOTICES OF ACTIJAL
ACCEUlRATION OF MJmlRITY, PROTESTs, AND NOTICES OF PROTEST, ae<ejerato the maiurlty of 1M Note(s) ho!Wy
and the entire outstanding and unpaid principal hereby Secured together with all ;tccnled and unpaid interest
thereon, all aecrued and unpaid late charges, fees other sums .shall thereby hnmedJately due and paya;ble, ana in the event
of default in tho payment of st-id Indebtedness when dne; or declared due, It shall thereupon, or at any time thereafter, be the duty of
the Trustee, or or substitute as heroinattei provided, at the ieque-st of Beneficiary (which request is hef'eby conclusively
presumed), to enforce fP.is trust; after advertising the time, place and terms of the sale of the above deScribed and
Property, then subject to the lien hereo4 for at leisttwentyone (21) days preceding the date by posting written or printed riotice
thereofut the County and by filing a copy of such qotice in the office of the Co\lnty Clerk ofthe county where said Property
is situated, which notice may be posted by the,1'rustee acting, or by any porson acting for him. and the Benefiyiary (the holder of the
indebfedn!lSS secured has, at least twenty--<lOO (21) days preceding the date ofsalo, se!Ved written or printed notice of the pro
p_osed sale by certified mail on each P,erson andlbr_endty(s) obligated to pay Indebtedness by this J>;d Of Trost according
to the zecords ofDeneficia.ry by the depoSit of such notice, enclosed in a postpaid wrapper, properly addressed to such and/or
entity(s) st such perso!!'s and/or entity(S) most address as shown by the records ofBencficiary, In a post office or official depos
itory.under the care and Cllstody of the Unlted States Postal Se;rvlce, the Trustee shall !>Oil the above-describ-ed property, then subject to
the lien hereof. ot public auction in ac'con!omce such notico at tQe Col;lrthous,. of said county Where sUch Property is situated (pro--
vided where f;aid Properly is situated in more than one eounty, the notice to be posted as provided shall be at the, .
Courthouse of each of such counties, and-filed with the County Clerk of each of such tountles said Property situated. and said
above described and conveyed Property may be sold at the Cotuthouse of any one of such counties, and noticys so posted and filed
shall de-signate the co1mty where the :Property will be- sold), on the ftrst luuday in any month between the bourg often o'clockA.M.
and four o'clock P.M., to the bidder forcash, selling of the Property as.an entirety or in such parcels as the Trustee
may elect and make duo conveyance to the :Pureftaser or Purcbasers, with general warranty binding Gtanf?rs, tl:ieir heirs tmd asslgnsi
and of the money arising from such the acting pay fim, all the expenses of advertising the sale and making the con-
veyance, including !1- reasonable commission.to hi111self, which commission shall be due and owing in addition to the fees
provided forin said Note. and then to Beneficiary the full amount of principal, interest, attorney's fees and late <:barges due and unpaid
on saM Note and all other indebtedness seeured hereby, rendering the balance of the sales prlce,-if any, to Grantors, their or
assigns; and the reclt_als in the conveyance to the" Purchaser or Purchasers shall be full and'coriclus\ve evidence of the truth of the mat
ters therein staled, and all to sald $ball be presume-d to have been peifonned, and such {I.D.d Conveyance shall
against Grqntors, t11eir heirs and assigns.
Beneficiary may remedy any default-:wiihrlpt waiving or may Waive any default without waiving any o! default.
It is agre-e<\ that in the event a foreclosure hereunder should be co.tlllil-6llced by the Trustee, or his Substitute' or successor, Beneficiary
may at any timel:tefore the sale of said Properly direc-t the to aban4on tb sale, and may then institute sUit for the collec-
tion of said Note-, tmd for the foreclosure of this Deed Of Trust lien: it is agreed that if the )3enofici;uy should institute a suit for
the collectl6n thereof, and for a foreciosure of this :Oeed llen, that he may at any time before the entry of a final judgment hi
aald suit dismiss $anle and require the Tntstee, his subl!titute or successor, to Sell the Property in accordance with !be provisions of this
Deed QfTrusl
Benefic;i&y shall have tho right to purchase at any s,a.le o_fthe Property, being the highest bidder, and to havo the amount for which such
:Property is sold on the debt se-cured hereby.
in (Ui.y event. is appoint a robstltute trustee, or a to act instead of tho Tnu;tee. ii1q11erl
herein without other fonnaUty than the disignation in wrlting of a or successor trustee; and the authority hereby conferred
. . . .
Pagel ofll OOTl2103 -IBC9004
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sp.aU extend to the appointment of other lind substhtite trustee's until.:. indebtedness hereby secured has been
paid in full, or Property is sold hereUnder, and each substitute and succesSoft{Ustee shall Succeed to all the rights and pow-
_ers of the origillal trustee named herein.
In the event any salo Js made of the above des.cribed Property, or any.porti9n thereof, under term3 oftbis ])eed OfTruS4 Gran torsi
their heirs and assigns, shall forthwith upon making of such salo &UlTonder and deliver possossion o{ the Property so sold to the
.Purchaser at such sale, and in the event of their failure td do so they shall there11-pon frOm and after the Of such sale be and con-
tinue as tenants at will of. such Purcha.c;er, and Jn the event Of their to sutronder posseSsion of 6llid Property upon demand, the
Purchaser, his helm or assjgns, shall be entitled to institute and maintain an ectioitfot forcible detailler of said Property in the Justice
of tile Peace Court in the in which such Or any p'act is situated, . .
Grantors_agree that any re$ille by Beneficiary of the Property ducri6ed in this Peed OfTros-tliftet foreclosuw may be llplde for a Price
below the fair'market value (I.e. at wholesale) and that Beneficlazy is not required to re-sell the Propertffor a price, eqUal to or above
fair market valuo (i.e. retail). Onmtors agree that the sales price obtnlned.hy.Ben'eficiruy at any such reSale will not be used in deter-
mining the fuir ma,rket value of the Property for thtl' purpoSes of determining value under-Section. 51.003 Of1he Property Code,
. . ; .
To the greatest extent permitted by law, Grantors hereby waive Btl rights and remedies Section 51,003 of the Texas
Property Code including, without limitation, tho right introducq evldence of the amount of the sales price 6f the Property sold by
Beneficiary following any Of the liens to the tenns of tliis }Xed Of'frust. .
. .
lt agreed that the lien hereby created shall t!lke over and be a pri'or.lien to anY Other lien Uf imy character whether
dOis, materlahnints. or mecbanie's lien on the above, desCribed l'ropertyj and in the event the proeuds ofihe indebtR
edness secured he;reby as set forth ere used to pay off and satisfy any liens heretofori:l existing .on said Property, then Beneficiary
U, and subrogated to all of the and remedies of the holders of the in?ePtedness so paid.
It is further agreed that if Grantors, their heirs or assignS, While the owner of the described prOp:tty, sbouli cOmmit au act
of bankruptcy, or aUthorize the filing of a voluntary petition in or shouid aD act of bankruptcy be committed and involun-
tacy proceedings instituted or threatened, or should the Property hereinabove dtscrlbcd he-takoit ovet by 11 Receiver Grantors, thoir
heirs oi' assigns, tbe Note hereinabove described may, at the option of Beneficiary, immediately become due-ahd pa)'ablo, and' the
TfUstee ma! then procud lo sell same under the provisions ofthls Deed Of 'Trust.
Grantors hereby trarufer and assign unto Beneficiary, to be applied on the debt secured hr:reby; (a) all eminent tlom.ain or condemna-
tion award moneys which may herenfter be swarded or pilid for the condemnation of the hereinabove detcribed Property, or any part
thereof or for nny portionofthe premises wliichmny be appropriate for any pubJie or ot by virtue Of private sale in
lieu thereof and any sums which may be awarded Qr become payable to Grantors for damages caused by public Wprks or constmction
on of neat the Propertyj (b) all the bonuses, rents, royalties, damages and de ill)' moneys that may be due.or that may hereafter b{!come
duC. and payabfi to the Grantors or their a'ny oil, gai nllnlng ortrilileraJ lease Or leases ohny kind now existing, or which
may hereafter come into existence (Including and/or bunting conh'ac{s of every kind) covering the. ab.ove-desctibed
Property or any part thereof;. (c) proceeds from the sale of m;ops grown on the Property, as well as aU pasturage and/br grazi.ng or
hunting fees. Grantors authorize. dire payment of such money to said Beneficlruy uqtU the ooqt secured hereby is paid. sUcb
monoy may, at the option of the Beneficiary, be applied od the debt whether due or not. The BeD.eficiary Shall not be obligated, in any
manner to collect said moneys or any part thereof, fl.tld shaU be tc.3_POn.\dblc only for amounts received b)' the Beneficiary . Nothing
herein contained shall be construed as a waiver or 'prejudice to the priority .of this lien or U1e options hereunder in favor of said
Beneficiary.
It is agreed that an extension, or extensions, may be made as to the time of lJayment or ail,_ or part. of the indebtedness secured
by, ana that any 1Ja.1't of the abo\le de.!lcrif:tid Pxopmy may be ielel'oS'ed frOm this liep. wlthout altering or .affecting die priority of the lien
created by this Deed Of Trust in favor of any junior encurnbnmce, mortgngee tlr purchaser, or any person acqUiring an interest in the
Property hereby conveyed, or any part theieof; it being the i.litentlon heteto to preserve 'this lien On the Pfoperty
described Mel all thereon, and that may be hereafter conatructed thereon,-'firn and to any that tllBY be
placed thereon, or that may be fp:ed, given or imposed by lllW tbeieon after the eXecution. of this instrwnent notwithshmding ai:Iy 81!ch
extension or the tlma payment, or the release of a portion .ofsald Property this lien.
jn the Ovent any .Portion of the indebtedness hereinabove described Cannot be sepured by this Deed Of Trust lJen on Said
Property, it is agreed that the flfst payments made on said ihdebtedness shall be applied to discharge of that portion of said indebt-
edness.
. '
Nothing contained hercln. orin the Note shall e\le.r enUUe Dencfidary
1
UpQn the arising ot any conHhgency whn.tsoiivcr, 1o receive
or collect Interest l_n cxetllfo o( the highest rate allowed by the laWs o!the o!l'exaS; or to tbe e:dent'Federnl Law permits a
gre.'lter rate, then such greater rate, on the principal 1ndebtedness'heteby or mi any money obligation hereunder and
In no event shall Grantors be llbllfiated to P!i'Y ;iuterest in ot rPte, .. '
. '
If this Deed Of Trust is CXJCuted bY oply oneperson ot by a corporation, the pl11ral wfetence to Grantors be "held to include the
singular ll!ld ill of the covenants Blld agreements herein undertaken to be pertonped by and the rights conferred upon the respective
Grantors herein, shall bo binding upon and inure to the benefit.ofnot onlY said parties respictively but also tQeir reSpective heirs,
adminlsttalors, grantees, succe5sors and assigns.
In the event that the hereinabove described Property is sold, conveyed, oi- ofuerwlse dispose4 of without the prior written consent of
the Beneficiary, thi maturity of the outstanding arld unpaid principal, all and \l.Dpa.id interest, all acciuta and unpaid late
charges, and other fee-s and/or a.rlsing ouf of said Note or hereonderffiay, at the option of the :Beneficf!}.I)', be accelerated and
the Beneficiary may Immediately demand payment of the then outstanding aJ\d unpaid priUclpal sum, tpgether w1th all accrued and
unpaid intereSt due thereon, and ill accmCd and unpaid lata cbarges,.and _other fees and(or charges ':hen due and owing.
In the event should seek a temporhty restraining order or ather' legal be it teffiporaty or peManent; to
prevent, hlndcr or delny the ex.erctse by Beneficiary of its rights and remedies under this Deed Of 'frost, Including, without liin.itation,
its foreclo.rure rights, upon the occutrence of as: .default, as hemin provided, tht.n Gmntors agree to pay and/or Beneficiary
for aU costs md expenses, including' its teasonable arid necessary iltto-rney's feA incurred by Benefirilaiy in connection its
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de.fe'nse, and/or other acvo_!ltakeu by Beneficiary\vith respect thereto, such payJ>,.,;flt and/or reimbUI'SCiment to be made
whether or not Ileneficlary is the. prevailing paity in any such Jojunction or temporary restnrining order or legal or e.tbitrntion pro--
ceeding .. Grantors agn;e.tQ contact, wrltin& Dennis B. Nlxon. prior to the institution of any such legal or arbilratiqn proceedhigs so
io :Ben,eficiary the opJiortunitf to appear and defend if'oolf.
Tt shall an event of default under thjs Deed OfTntst should Grantors, or an:t of them or any guarantor, f:lit to timely deliver any and
all financial statements, tax returns; inventory reports, cash flow information, accounts receivable reports, or any other busi-
tJix or financial infonnatiC?n reque.$ted by Beneficiary.
Grantors hereby Beneficiary tli6 right to pro lest any a ad all ad valorem and special assessments madQ againsi the Property
covered by this Deed Of Trust: In regar?, Grantors shall deliver to l3eneficiary a true and copy, when received, of all tax.
assessments, valuations, re-appraisals and other received. by Grantors from all tax authorities. Beneficiary iSh all have the right
to appear in all tax and file ttppeals concerning taxes affe,cting the Property or any portion thereof
GrantorS expressly tbat this Ded Of Trust and the hereby soeured are given for the following to-wit;
'TO REFJNANCE INDEBTEDNESS OF GRANTORS AND TO PROVIDE NEW FUND FOR FINISH OUT
EXPENSES, . .
To the extent allowed by law, this conveyance is also made in;tiust to secure and enforce the payment of any and all other lndebted-
ness of. Grantors to presently or whieh.may in any mannCt or herwfh>r or created by Grantors,
whlch other or future indebtedness Grantors acknOWledge to be currently contemplated by Grantors aud evidenced in anxmannet" what-
soever, includin.& wfthbut limitation:
any co)IllDOrcia11nan or indebtedness;
B. any credit Card or other consumer type of loan;
C. any_indebtedness (elating to or .saVIngs acoounts (overdrafts, etc.);
P. any incurred in tbe Jirotection ormainteoaoe;e of the any of such liabilities, loans, and
obligations;
. E. any expenSO$ incurred in the collecliou of any indebtednrn obligation of the Grantors to Lender whether aris-
ing q_ut Qf this or otherwise; .
F. anY lolten; Of cre;dit and/or arising out of. or advance4 to P.ay, letters of credit transactions;
a any indebtedness, whether by promissory note, bookkeeping elemronic trll.llSfer or by any
or fQnn; .
lL any other indebtedness of Grantors to ll!lY financial.institution affiliated with International 'Sancshares Corporation.
and/or severally, and ifl any. capacij:y, 'Whe-ther as mmr, guarantor, or otherwise, now and
regardless of bow evideneCd or ari.singi and .
I. and aJl e:cteosiorls, modi.fications, substitptiooS and/or renewals of any indebtedness.
. . . . . '
To .the extent allowed by law, for purposes is intended that the- include aU class!"3 whether evi-
denced by OpeQ."I!CCO\liltS, overdraftf or 2ni1 whether direct, indirect Of contingent, regar_d)ess of cli\Ss, fonn Or pur-
pose and .fncludlng but not limited to, for consumer, agricultural, business or personal putposes. The indebtedness does not
"include amounts pursuant-to homestead equity loan and/or home"equity ilneof credit.
Ii being and uude?tood that a.ny and now owed to or hereafter advanced by to Grantors shall be.
pa)'ablo at: tho D'lllin offices of Beneficiary at 130 E. Travis, SanAntonlQ, County, Texas 18205; and shall bear'interSt as may
be provided in such Dotes or other evidences offudebt17;dness given Py GrantOrs to and thkinstntmeOtis also executed for
the pmpoS6 of securing and thO extension and! or modification of any npte or of any part of the sald
inQebtedne.<l$ of Grantors and including e.nyfllrthlO;allS and advancements mado by Bencficia.ty to Grni:rtor$, Re.Pa)IJilent ofllll indebt-
e9nlfSS of Grnntor:s to Beneficial)" shall not t.erroinMe OfTwst unless the same be so releaseii by Bonefi.elary at the request
of Grantors, but otherwise it shall remtlin in full fbwJ and effect tO secure all :future n'dvances and indebtedness, regardless of any addi-
tional securitY thai nU), be taken.as to ll;ny'past or fqture indebtedness, and.:;hall be unaffected Dy any renewals, extensions or partial
releases bert:ufider.
GRANTORS NETIRER CaEATEl<ORPBRMIT IJ'!Y !UNIOR OR SUBSEQUENTLIEN'OR
TilE PROPERTY wrrnour PRIOR WRlT!1!N CONSENT OF.BENEFICIARY.
Atwlicablo. to Prior Liens Jf this De.ed Of Trust ls or mcomes subordinate to any other liens, security interests, assignments Ofles;ses
orrelits or any other encumbranceS (collc_ctively, the "Priot:Liens") affeeting any oftMPropef!y, all documents creaUng the Prior Lierut
eVidencing and governing tbe ind.ebtedness shall be oollectively called the "Prlor Lien and this section shall
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Bpply. Grantors shn.ll not enter irito any modificatiori, iDcrease or of any 9ftb.e Prior LiCn Docume!!IS
or the Secured thereby without prior Written consent of Beneficiary . Grantors shall pay when doe all indebtedness eYi
de need and secured by tho Prior Lion Documen!S and shall timely perfon:l:i all other obllgatioru of. the -Gnmtors under the Prior Lien
Doouments. ;BeneficiiU)' may, bo.t shall not be obligated to, -pay any such indebtedness or peifonn any such obllgatio.ns for the account
of'Grantors and any sum so shall be st.CJlfC-d Grantors Shali pay to Bell;eflciaryall amountssb expended by
Berieficiacy with interest on such amounts from the date and at the rate s:et foJ1b in the Note. but not in exce-ss of tho highest rate pet
mitted-by applicable law. Beneficiary's cure of any default under any oftbc Prl6i Lien Documents sb11U not a cure of the'
default under this Deed Of Trust. Grantors shall send to Beneficial}' a copy-of each notice of default or-notice of 3cceleration. or other
received by Grantots from tbe' holder Or any of the P.(ior Lien Documents within nne (1) busineSs day afttn''receipt thereof by.
onintors. Notwithstanding the foregoing, Beneficiary does not conSent tg any Prior Uen othetwlse e:g>ressly in this
Deed OfTrwt.
SecurirvA.memepti'Pinanclng Statement. This Deed OtT rust lien cover ill property now or horeafter affixed pr att!cbed odncor-
porated ipt6 the Property, tli!Scribed hereio and now or hereafter owned by Gmntors in which Grantors noW or hereafter have an 'inter-
est which, to the fullest extent permitted by Jaw,-shall be deemedfixtuies and part..f.Jfthe Property. t:hb'Deed OfTrust lien
shali cover,.and Grantors to the extont of any ,erescmt o.r hereaftei- created ri4hts' c:if.-Grantots in PRiperty hereby grant. to
a security interest in (i) all building materials, equipment and other personal propertY, to be inco.q>Qrated into, anY
improvements constructeclOn the premises; (ii) all goods,' materials, supPlies.-fixtu.t'es, equipment, machinery, furniture and fu.niishings
and other personal property which are now or may btreafter be appropl'iatedfor use on (whether such items a:ri stored on premis-
es or, elsewhere), .located on or used in C!lnnection with the premises; (ill) all reilts, isSues and profits,

profits, renewals.
income or oilier benefit derived from the paynients received for lodg{ng from interests ancVor and aU inv'e)ltory, accmmts.
accounts receiva'Qle, contract rights, general intanglbfes, inrellectual Ptoperty, chattel paper. inshutnents, documents, penitltJ, plans,
speclftcations, drawings, governmental approvalS) notes, dnd\s
1
letters of cred.lt, indebtedness arising from arid/or to P,ay.an advance
on lettets of. accounts due from credit, debit and/or charge cird insurance policies, insurance condebnlation awards '
and proceeds, trade. names, lradcmarl<s and service marks arising from Q:r tO tOO prern.lses an4 any business conducted on lhe
by Gmnton:; and (iv) all repla_cetnents nnd substitutions for or additions to, all products and proCeeds of, books, records
and files relating to any of the foregoing. 'l'o the i:lxtent any Property coye((:d by l:his Deed Of'l'l'llst Hen cc:i$lsts or rightS In attion or
personal property <:overed by the Texas Business .And Commerce Code, ihi$ Deed OfT rust lien conStitutes a agreement and is'
httended to tteate a security interest in such,P,roperty in favor ofBtneficiary. This Dee'd OfT rust be self-operative with rcspett
to such property, and in the event of default acceleration of the iridebtidnes;s: hereby secured, Grantors expressly grant to
Beneficiary the right .to enter upon the Property where the collateral is located for the purpose of hs right to ,collateral,
and Grantors agree to nnd deliver, on demarid, such sccurily agreements, financing statements Bnd olher Jilstruments as.
Beneficiary may request ln ol'Wr to J.n;lpose the lien hereof made more specifically upon any of such property. lfthe of this: Deed
OfTmst on any property shall be subject to prior security agrec:ment C.Overing such property, then !n the event of My default hereun-
der, all the rights, title and intere.$i of Gro.ntoo: in and to any nnd .all deposits made in conneCtion with the ttansactlbn whel_'eby
prior seturlty agreement was made are hereby pres-ently assigned to Beneficiary, together with tho benefit of any pa).>Jrient.s tiow or here-
after made in connection with such 'tqtnsactlon. '
Financing Sta'tcments In addition to l!eneficiaey*a other tights. sCt forth 1}1 tWs Deed Or Trust, Bfmeficiiuy sha.ll have all rights of n
secured party under the Texas Bu.siness And Commerce Code (the "Code''). At :Beneficiary's request, Grantors shal,l cx:ecuto and deliv-
er to Beneficlary all financlbg statements that may be required by BeMfic.lar:y to establish and maintain th"e validity imd priority of
Beneficiaryis secuiity interest, and Grantoi's shall bear all costs thereof, including all searches reasonably requited py BeJ;1.6ficlBJY. If
Btneficiaty sliould dispose of aliy of the proper;ty covered liy the interest creatc.d.nndc.r this Peed Of Trost pursuant to the
Code, ten (10) day$ written nOtiCfl by Benefidaty io Grantors sbilll by deruned to re&s?.nable notice; proVided howeVel'i. Beneficial)'
may diSpOse of such property in accordance with the foreclosure proCedutes Of this Peed Of Trost itt lieu of proceeding: under: the-Code.
. . . .
(i)
. (ii)
(ili)
Qv)
Gi-antors beieby authorize to file a Financing Statement, an Amended Financing anCI a CCtOtinuation
Finandng Statement (eollW'tively referred to u the ''Fi.uuncing Statement'') describing Collateral. '
GrantoCll hereby authOrize Beneficiary to rue a Financing Stntemcnt 'descri.bing any agricultural liens or liens
held by Beneficiary.
Grsntors shall .ieceive prior to the Closing an official report from the of State. tJf e.!,lch Collateral State; !:he Chief
ExecUtive Office State, and the Debtor State (each as defined below) (the ''SOS Reports'? lndlca.ti.llg that Beneficlary'a secu-
rity inlet est is prior to all other security interests or other in reflected In the report. .
Beneficiary shall receive al time following the Closing an SOS Reportind.lcatlttg that Beneficiary's security interest is
prior to aH 'Other security 'ir..tc.!t.sm or o_thcr inte.rests refleCted in report.
BeMfiCiary may sell, or dlsp<>se of any of .the personal proPerty in accord with the remedies; alld duties
Benefh:'i.lry under Ch!ipteil:l2 and 9 of the Texas Business And Commerce Code after giving notice as required by those chaptersj lUlleSS
the CoUateral threatens to declihe rapidly in value, is peritlhablt; or would typically be solO on a reeognized market
1
BCneficiary will
give Grantors :notice of any public sale .of the Collaterql or of a time after which it may 00 otherWise of without
further notice to Gr8ntors; in thls event, notice will be deemed (easbuablc if it is maiJed, postage prepaid, to at the! addiess
specified in this Bgtt?nltnt !!:I least ten days beforo-any public or teh. before th? time when the Collatera1 may be otherwise
disposed pf without further notice to Grantors. Grantors authorize Beneficiary to discl?fm. or modify any !llld all set forth
in SettiOn 9.610(d) oftb.i::Texas Business And Commerce Code.and stipulate and agree that such a.disclaimet and/or modification wlll
not rend&" the Gale commercially unreasonible. Beneficiary may retain all ot part Of the fu fui13odlor partlal satisfactiqn of
the io'debtednesS pllrst1.ant to Se<:t:lon 9.620 ofTex:a_s And Com.meroo Code.
Without providing Beneftciary wjth at least thirty (30) days prior written notice of Grantors' intention to do so, GrantorS, until the
indebtedliess is paid in full
1
agree tbfll.they will not:,
a. in one transaction or a series of related transactions, merge into or consolidate with !n.y other entity, sell all fJt sub
stantiatly aU ofits assets, or in any way jeopardize ib) corporate ex,!stenec.,
b. <:hange: the state of its f.noorj)orarion)
c. change its corporate namer
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d. chan$ the and!o; wcation of its Office
e. file a tiCC-1 Amendment follll, and/or
f. tile a UCV 1 Termillation f'mn.
Grantors shall give advance notice in writing to Beneficiary of any proposed change in Grantorn' pame, identity, or structure and shall
a nil. deliver to Beneficiary, prior to or concurrently with the occurrence any mch change, all additional financing statements
that may require to establish .and maintain the validity nnd of Beneficiary's interest with respect to any of
the Of referred to herein.
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G$1tors express!)' rePresent that the Property hereinabove mentioned and wnveyed to the fonns no part of any property
owned, use'd or claimed by Qrantqrs as Crom forced sale. under tho law of the State of Texas as either personal or busine._<!S .
.homestead, and Grantors renounce all and every thireto under any such law or laws and hereby designate as thei.r
hbJilestead, pusonaJ and business, lind as constituting pll.lho property owned, .used or clalmed by lhem as exempt either as pers<mal
and/or business: under such laws the follqwing descdbed propet:tY: .
Texas,
(Personal And Business :Somes lead)
Assignments of Rents Pcofrts etc All of the rents. royalties, issues, ron tracts fOr deed. proceeds, profits. revenue, in como
'and anY other benbfit derived from the Property and improvements there!o, or arising from the or enjo)'lmnt of any portion
of or Crom'any leaSe or twrta.ining'f:qeretoand liquidated damages following default under such leases, and all proceeds
payable under any pOlicy ,of insunmce cOvering loss of rents or causl. by damage to any part of the Froj>Orty, together with any and
a}! rights that Grantors may bavo any tenant with any apd all rights tha't Orantors may have against any tenant under such
is or any subtenants or occupallts ofnnypart of tho Property (hereinaftcr.called tfte ''Rents''), are hereby absolutely and uncondltion
ally assigned to . hi or. to a defa!Jlt iri paymeOt by of any portion of the bY this Deed Of
Trust (the ''It!debt_edness') or wvenl'-nt, representation or warranty made herein. by Grantorn (collectively, an
1
'Bvent of
Default'!), Granto1;5 shall haye a. license to collect a.nd receive 11ll Re"nts as Trustee. for the benefit of Bcueficiat}' and Grantors, and
. shall apply the sb first to $}le pa.ymeilt of the Indebtedness lp such manner as Beneficiary elects and thereafter
to the of GrantorS, The foregoing assignment is lqtended to Qe. absolute, unconditional and presently effective. It shall never
be necessary for to institute legal proceedinsa t!f any kind to enforce tho. terms of this assignment
Assignment of "Leases. Grantors a.ssign to Beneficiary oll existing ap.d future leases, including thereOf, and any and
ali extensiom, renewals, moditieatiot1S, t!lldreplace?lents thers:of, upon any part oftbl'l Property (the- ''LeaseS") .. <Jrtmtors hereby
ther assigli.to Beneficllli)' all guaranties of tenants' pcrfonnnnce under the Leases .. Prior to an "Event ofDefault, shall have
the right. without joinder of Beneficiary, to enforce the Leases
1
unless Beneficiary directs otherwise.
Warmntitp; <'.QnCeming I eases and Rents GrantorS represent and warrant. that:(a) Grantors hflve good title to the Leases and Rents
hereby assigned and authority to assign them, and no other person or entity 'bas any right, title or interest therein; (b) ell existing Leases
arevalld, uruno4ified and in full force and affect, eXcept as indicated herein, and no defaultox.ists thereunGer; (c) uille-s>
vided herein, no Rents Mve been or will be J!10Itgaged'ot pledged; (d) J!O Rents 'have been or will b& tllllitipated, waived,
release<l, &Counted, set .-(Iff or compromised; (e) Griwtors have not received any funds or deposits from any tqnant for wh1ch cred"'
it has not already bien made account of a corned Rents,
. .
Grantor's en ants of Performance as to T.e?ses Grantors covenant to: (a) perform all of their obligations under .the Leases and
give prompt not!ce to Bonoficiaty ofariy fa.Uure to do so; (b) give immediate notice tp Beneficiary of any notice GrantoiS received from
auy tenant or subtenant \Plder JJlY any cl.Pmed defpult by llllY piut}' uuder such Leases, eJtcluding, hoWover,.notice
of defaults.under tesiQentialle.ases; (c) enforce. the tenant's obligations \tDderthe Leases; (d) defend. at Gnnlor's expense, any pro-
ceeding pe!Urlning to the Leases, jocludlng, ifBtbeficiary' s?'requests,.any'such proceeding to which Beneficiary is a party; and (e)
neither create nor pennit any onCJJmbrance upon its interest as lessQr of the Le!!se:>, except tl).is Deed.OfTrust and any other encum-
bta_ri\XIS pe.nnltted by this Deed Of'hust,. . . ' . . .
Approval for Action Aff'Mtinv Leases Onsn1ors shall not, Without ihe- prior written ofB.eneticiary, receive or collect
Rent# mor-e than One mOnth in adwnce, encumber or assign fUture Rents, waive or release any -obligations of any tenaqt under the
Leases, cancell terminate or modlfy any of tho Uases, cause or permit any cancellation, termination or surrender of ruiy Qftbe LeaSes,
or commence any prOceedings for of any tenant under any 'of the Leases, except upon default by the tenant thereunder,
or porffiit any nsslgnm,ent of the Leases whereby a ten. ant b released from its obligation.
Rejection orr :Uses in Ban1quptcy. Grantors agree that nQ.sett)ement for damages for tennination of of the Leases under the
Eederal Bankruptcy Code, or Ullder 'any ether fienil, state, 6'r local statute, shall be made without the prior written consent of
and any .check in payment of such damages made paye.ble to bofu Granton; and Beneficiacy. Grantors liereby
assign any suc:b pa}'ltlent to Beneficiary, to be applied to tQ.e Indobtpdness as Beneficiary may elt, and agree to endorse any c"beek
for suCh.p$nent io th.e order ofBenefici;ny.
Beneficiary's ilcptance of this not, prior to, UpOn, or afterenhy upon and taking posse..q;ion
of the bY B'rneficiacy or any foreclpsure of the lieu hereunder or conveyance of the Pro petty lie rein P:escribr:d ln lieu
be deemed tQ "Benoficlary as a "mortgagee in nor oDligate Beneficiary to iu or defend any proceeding
relating to an)' of the or to the take any actionhev;under, any money, incur any exponses or petfonn.any obli
gntion Leases, or assume any obligation.o_r liability UJ?derthe or assume any obligatioll'h)cluding securi
ty deppsits. }}all not be liable for ahy injury o'r damage to person or proJX:rty in or about tbe Property. Beneficiary_
shall not be obligated to perfoiD\ or otherwise adhere to any teiJDS of any. J..ease.s or any covenant of Grantors to any
ant uule.ss Beneficiary agrees to do 60, in writing, by Beneficiary, which Beneficiary Iila.y elect not to do so, in its.sole and
absolute discretion.
Auoointmcnf ofAttornr;yJnfad:. GrantorS hereby appOint Beneficiary Its CQUpled with an interest, empowering
to subordinate say Leases l? this Dd OfTro.sl .
IndemnlficatloD. Grantor6 hereby indemnify and hold Beneficiary from all Uability
1
damage, or expense Incurred by
DOT-12103- IBC9004
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Belleflclary !rom any clatms under the :L... .. Including, wiUtoutjlmltatiim; by ,._.anfs for or for rental
paymcJt!$ more than one <H month in advance and not delivered to AU amounts inderimified lierennder, Includ-
In-g reasonable attorney's fees,. if patd Beneflctary .shall beat interest a.t m:u.lmum lawful rate_and shall be' payable by
Grantors imm.edfately without demand and shaD be seclll'cd hetcby,
Records Etq Upon reque'st by Beneficiruy, Grin tors shaH deliver to. BenefjCiroy. executed orJginais of a!l Leases .lltld yoples of alt :
re-eords relating thereto. Thoro shall be no merger of the leasehold estat(}S, created by the t-eases. With the estate Mortgaged
Property without the prior written coruent of Bebefici!!l)'. U_pon defau11, GrantQrs hereby authorize an'd 9J.rect the tenants under the
Leases to pay Rents to Beneficiary upon written demand bY Benefieiaey, without further consent of Grantors . and the ten niay rely
upon any written delivered by Beneficiary to the tenan.ts, Any 'such -payment to constitute payment to
Grantors und6t the Leases.
Some of the items on the Ptopert}r are goods that are or a[o to betoiDe :fixtures relaioo tO said an4 it is W.teoded
that, as tothqse goorls, this Deed Of Trust shall be effective as a fmanCiQg statCm"ent filed as a fil!n& from the of its ti,ling
of record in thi: real estate records oftbe cbunty in Which the PrOperty lli Infoq:n8.tion concerning the secirrity 4J.terest
ed by this obtaine4 from Beneficiary, liS sec.ured party, attj:le a.ddress of Beneficiary set frtq in this Deed
Of Trust. The mailing address of the Grantors, as Debtor, is as stated herein.
Envlmnmental Compliance Graptors' use Property y;iH at all times Comply with sla.tutes, ordinanres, rules and
lations ("Laws'') of ahy goVemmentaJ. quasi-governmental or regufatori authoritY: wh!ch relate to the transportation. storage, place-
ment. handling; treatment, dlscbuge, generation, production, removal.ot (c6llectively, *'Treatment'? of Roi waste, petrolewn
product (including, without limitatiOn, go.soline and diesel fuel), waste products, poly-chlorinated biphenyl, asbestos hazardous mate-'
rials,. and/or imy substanCe, the Tree.ttnent of which iS regulated by any laws (C(Illectively, "WP-Sie"). Grantors will oomp1y with
all LaWs regarding storage tanks used to hold gasoline, diesel fu:J, or imy other petrple'_llll products on the Proyerty.
To the be.st of Grantors knowledge, no Waste is not on the Pro petty, a.O.d neif;her Grantors nor; tO the best Of knowl-
edge, any other person has: caused or pennitted.any Treatment of any WaSte on. under or at the :Propcrty.ot any part t?Creof, and
to the best of Grantors' knowJedge, no property the is being used, or bas 'ever been -used any pte vi otis time fur .
the Treatment ofWaste,
To the bdst of Grantors' knowledge, no investigation, administrative Order, order and litigation or with
res_i,ect to waste or the Treatment of Waste Js proposed, threatened, antlcipBted or in with res.J_)C(:t to the Pioperty. The
is not currently on, and to Grantoffl "?oWl edge, after diligent and inquiry, has been on, any federal or state
"Superfund" or "Superlien" list,
agree to (n) give notice to BenefiCiary bnmediately upon Grantors kno.wledge. of any \Va.Ste on the.l'ropcrly with a
full description thereof;' (b) promptly comply with hny Jaws applicable to Gni.ntors or tl:i.e l'roperty requJ.rlng the ren:i.oval, treatment or
disposal of suCh Waste and J1ft,vjde satisfactory ev1ilence .\Vith such compliance; a.b.d (c) prov:liie 'Benefiolory within
thitty' (30) days after demnnd by Beneficiary with a bona, Jetter of crtidit or similar financi!-1 a.sillmilce. eviilencing to sat-
isfaction that the necessary funds are available to pay the cost of removing, treat!n&- and .aisposing' of Sl;lch Waste and discharging of
any assessments.that may be established oJ:t the Property as a result thereof, : .
. . .
Any enviroluelJtal 5pill, discharge or other event upon Or to the which Beneficiaty dete.tmines ro.a.terially arid ..
adversely affeets the value andfot use of the Property, an Event of Default under this Oeed Of Trust and the Note and all Q\her
. indebtedness ?ecured horeb)'. . , , ,
Grant om agree to _perfonn an asbestos sut'vey tmd obtain. a pennit, aud to provJde a coj,y of Said.$U!Vey t.o bcnelicia.ty, prior to cotp-r
'mencin.g any renovation and/or d.emolition of a pubtie or com.tmrclal'bullding. <Jnmtors further to COJ,tl.pJy with all othet state
and federal statute.<: andlor regulations regarding asbestos and asbestos removal.
Site Assessments (b)' its officeis, employees and agerilii) at any titpe and from tirui to time, eith_er or after the
occurrence of any default, tna.y contract foi the secvice$f?fimy person (It fum :R.ovte.wers>.') to petfonn site
ments C'Site Assessments'
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) on the Properly for the purposes pf Oetemtining there exists on the Property ilny environmental
.condition whlch could reasonably be eXpected to result iti an.y liability; cOst tlr expense to the ownet
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occupier or opetatcir of_sucb
PrOperty IU"ising \!IIdet ahyLam relating to Wasto oitho.Tre!it;ment ofvl11ste. SiteA.Ilsessmenis q'lay lx(performet:\ at any tim.e or
times, upo.ri reasonable notice; and under reasonable conditions established by Grantors: whic4.do not impede _the performance of the
Site AssesstnenU!. Grantors agreo that any SitcA.ssesstnent shall be for the and ox.clusfvo' use, benefit and reliance of:ae.neficiary
in asseSsiug the yalue of its security interest in the Property and wiiJJJ.ot be relledon by Grantors for any ptn:pose. The Site Reviewers
are hereby authorized to enter upOn the :Property for s_llch purposes. The Site ReViewers. are further to abqve and.
below ground for enVironmeittal daina&e or the presence of waste on the Propertj such other tests on the Property Rsmay
be necessary to conauct the Site As;sessnknts in the: reasonable bpinion of ibe Site Reviewers. GmntQrs. will supply to the Site
Rev:iewers historical and opeiational fufonnatiOn regardfug the Property may be reasonably Jequbsted by the Site Revlewe':S to
faciHtnte the Site AssessmentS ahd will be available for meetings with Site Reviewers if requested, The cost of performing such Site
Assessmcntll be paid by GrantorS upon dcmatld ofBeneficiarya.nd any expenses.borne by Beneficlary no't hllll)cdiately telm-
bursed by Grantors shall be secured. by thls Deed O!Trust.
indemnification. or not any are conducted, and regardless oiw.he1betornot a default occurs under
tills Deed Of Trust or undet_: the Noieor under any other JndebtedJie5s secured hereby and regardless anY remedies
ln l'l!.!lpect o.f tbe Pro_perty are exercised by DcneficJary, win defend, indemnify and ho.ld harmless and
Trustee from a11y 1md (Including $trlct llabllity), demands, penbldes, losses
1
Or expenses (lnclud.lng
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without Hmi!ation, attorn.eys fees and expenses, and remedial tosts)J sun cOsts of any settlement orjudglllent and dulms of any
and every kind whatsoenr which may' now or in the futtn'e before or after the release or fore-closure of thls Deed Of
Trust) be paid
1
Incurred or suffered by or asserted against Deneflclp.ty or 'I'rl1.stec by any per.soh or fnfity dr governmental
agency for, with respect to, or as a direc,t 9r lridirect result of, the presence on or under, or the s-eepage, lllakage, s-pillnge,
qlschs.J:ge, entbs{on or relea!e from, on ol' aiTecUng the :Property cf Sdjt ws.stii or.any spill} whlch '!rl.S:e oqt or or reSu)t from
the environmental condition of tlie Property or t";b.e appllcability of any law! relating tQ the waste (including, without J,im1tat!on,
the Comprehensive CompensatiOn, and Lta.billty 42 %01 seq.,,as from, thne to
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or any federal, sf.ate or local or "Superllen"law, .statute, ordinance, code, regul'lf:ion,
order or Qecree), regafdJess of whether or not caused by or Within the conttot of Grantors, Beneficiary or 'Trustee. The repre-
. sentation$
1
-covenants.,. warranties an Indemnification contained shall survive the release andlot Judifally or
clil.for.ecJ.osure (or ip iieu thereof) of the lien of thts Deed Or1'nlst, For the purpose of this paragrapli and ilotwfth-
litb.ildlngtmy other provision contained herein to t11e contrary, the term "Grantors" shall refer pot only to the Grantors not only
to the c;;'-rantors named herein, but also_ to all pther person who may here11fter assume to the Note and _tl]e obligations of this
Deed Of'fru5t.
I
ARBJ?'R:\TION,
GJlANTORS, BENEFICIARY AND TRUSTE:E J11JRTIJER AGREE AS FOLLOWSt
't :cONSUMER-JILATED CLA:J.MS OF $7S,OOQ.OO OR LE,SS IN .j.CfUAL DAMAGES,
. . .
(a) WITH J!EGARD TO ALL CONSUMER,RELATJID CLAIMS OF $75,000.00 OR LEss IN ACTUAL DAMAGES,
ANY AND CONTROVERsiiiS OR CCiill\IS ARISING OUT OF THIS CONTRACT, ITS NEGOTIATION AND/OR
. THE DRJiACHTijEREOF, SHALL DE SET:ff,ED BY ARBITRATIO)'l ADMINISTERED BY TIJEAMEll!Ct\N AnJlJTRA-

P()SEs); AND JlJDGMENT ON THJ> AWAllD R!INDEREDDY TJ!X 4RSITRATOR(S) MAY BE ENTERED IN ANY
. COU)l.l' HAVING JURISDICTION Tlllf!<JW!' IT IS INTENDED BY ALLPA.Rl'IES THATTHISARiiiT)<ATION CLAUSE
MEET AND INCLUDB AtL FAIRNESS STANDARDS AND PlNClPLES OF TilE AMERICAN.ARBITRATION ASSOCI-
ATION'S CONSU!'fER DUE PROCESS PROTOCOL AND DUE PROCESS IN PREDISPUTE ARBITRATION.
{b) INSTEAD Q:R l'ROCESDING IN AiuiiTRATipN; ANy PARTY HERETO MAY PURSUE ITS CLAIM IN TilE
.CONSUMER'S LOCAL SMALL CLlU!IIs COlJJl'r, ll' THE CONSUMERRELATED CLAIM MEETS TilE SMALL
CJ_AIMS COUR'l' JUrusD!CnONAL Lll\flTS, IF TIIE SMALL CLAIMS COURT OPTION IS ci!OSEN, THE PARTY
MUST CONTACT THE CLAIMS COtiRT DIREctLY. .
(c) THE l'ARTIES FURTHER ,<GREll THAT (I) N() ARJiJ1'R4T!ON.PROCEEDING HEREUNDER SHALL DE CJ;;R-
TII1IED Ml A CLASil ACfiON OR PROCEED AS A CLASS AC'riON, OR ON A BASiS INVOLVING CLAil\IS BROUGHT
. IN A PURPORTED REPRESENT,IT!VE oN' BEHALF OF. THE GE!iliRAL PUllLIC, OT!l$R CUSToMERS
On POTENTIAL. CUSTOMERS Ol{ PERSONS SII>!ILAllLY SITUATED AND (it) NO ARBITRATION fROCEEDING
HEREuNDER SHALL BE cONSOLIDATEb wiTH, OR JOINED IN ANY WAY WITH, ANY OT!!IIR ARBITRATION
P!\oCEEDD'IG . . .
(d). Tlrrs ARJiiTRATION PROVISION SI!ALL SURVIVE ANY TERMINATION, AMENDMENT, OR EXPIRATION
OF THE AGREEMENT INWlrlCH TIDS PROVISION IS CONTAINED, UNLEss AI,L OP THE PARTIES OTHERWISE
EXPRESsLYAGREE IN WJliTD'IG . .
(e) THEl'ARTIES ACKNOWLEDGE TJ!Nf TIDS AGREEMENT EVIDENCES A TRANSACTION INVOLVING
IN;I'ERST,I.TE COMMERCE. THE FE)JERAL AJ!ll!TRATION ACT SHALL GOVERN THE l!;TE!U'RETATION,
PR!JO:EDINGSPURSUANTTO THE ARBITRATION CLAUSE OF TillS AGREEMENT.
)J. coNS!fMJ;R-RELATED CLAIMS /-DOVE s1s,ooq.oo IN ACTUAL DAMAGES AN.DIOR cmWERCIAL
CLAIMS;
(a) . ANY ARBITRATION INVOLVING CONSUMER,-RELATED CLAIMS ABOVE S7S,OOO,QO m ACTUAL DAMAGES
: AND/OR COMMERCIAL CLAIMS HEREUN!>ER SHALL BE BEFORE AT LEAST THREE.NEO'flV>L ARDITMTORS
ASSdCLqED WITH THE MIERICAN ARBITRATION IN ACCORDAN<;E WITH THE
COldMERCIALARBTfRAT!ON RULES OF THE AMJl1UCAN ARBITRATION ASSOCIATION. FAILUJU; OF ANY ARBI-
TRATOR TO DISCLOSE ALL FACTS WIIICH MIGHT TO AN OBJECTivE O)lSERVER CREATE A REASONABLE
JMPRESSI(>N dF'riJEARBITRATOR'S PARTIALITY, AND/OR MATERIAL ERRORS OF LAW SHALl. DE GROUNDS
.[IN ADDiTION TO ALL OTHERS] FOR VACATUR OF AN AWARD ru;NDliru:D P!JRSUANT TO THIS AGREEMENT,
(b) THE PARriES FunTIIER AGREE THAT (ij NO ARBITRATION PROCEEDD'IG HEREUNDEJ! SHALL BE CER- .
TIFIED AS.A CLASS ACTION OR PROCEED AS A CLASS AcrlON, OR: ON JNYOLVING CLAIMS BROUGHT
JN .j. PURPQRTED REPRESENTATIVE CAPAqTY !>N BEHALF OF THE G.ENERAL PUllLI<;; OTHJ;R CUSTOMERS
' OR POTENTIAL qJSTOMERS On PERSONS Sll\!lLARLY SJTUATED AND Qij NO ARBITRATION PROGEEDING
HEREUNDER SHA,LL BE CONSOLiDATED WITH, OR JOINI;D J!'l ANY WAY WITH, ANY OTHER ARDITRATJON
PROCEieJ!D'IG . . ..
(<) Tins ARBITRAT)ON PROVISION AN)'TEJlMINATJON, AMENDMENT, OR EXPiRATION
OF THE AGREEMENT m WHICH THIS PROVISION IS CONTAINED, UNLEss ALL OF THE PAR 'TIEs OTHERWISE
EXPRjiSSLY AGREJ<; D'l WRITD'IG . . .
I .
(d) ACJ<NOWLJ'DGE THAT THIS ApREEM>;NTEVI)JENcEs A TRANSACTION.JNVOLVING
D'ITERSfATE COMMERCE. THE JIEDERAL ARBITRATION ACT SHALL GOVERN THE INTERPRETATION,
ENFORCEMENT, AND PROCEEI)INGS PURSUANtTo THEARBIT)tATION CLAUSE OF THIS AGREEMENT. . .
ill. ADDiTIONALCOMMERCIALCLAIMS.PROVISJONS:
(a) ANY AND ALL COl\l)lfERciAI; CONTROYERSIE,S BETWEEN TilE PAIITil\S, SJi:ALL BE RJ;&OLVED BY
Al\BITRATIQN.D'I ACCORDANCE WITH THE COMr,IERClAT, ARBITRATION RULES QF THE AMERICAN ARBI-
.TRATION ASSOCIATION IN EFFECT AT THE TilliE OF FILD'IG, UNLESS TilE COMMERCIAL ARBITRATION
RULES CONFLICT WITH THIS PROVISION, AND IN SUCH EVENT TilE TERMS OF THIS PROVISION SHALL CON-
TROL ')'0 THE EXT.ENT OF THE CONFJ.JCT; . . .
Pagc,9of13 DOT-12103 -IBC9004
16
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TilE AWARD OF TilE Nl!lh.<ATORS, OR A OF Tl!EM, BE FINAL; MD J.!IDGMENT
UPON THE AWARD RENDERED MAY BE ENTE!lED 1!1 Mf'l COURT, sTATE OR FEDERAl, HAVING JURISDICTION,
THE ARBITRATION AWARD SHALLBE.JN WRlTJNGAND SPECIFY THE FACI'UALAND U:GAL BAsis FOR THE
AWARD. UPON THE REQUESf OF ANY PARTY, THE AWARD SHALL INCLUDE FINDINGS OF FACT AND CON
CLUSIONS OF LAW.
'(<) ARBITRABLE DISPUTES lNCLUDEANY AND .ll.L CONTROVERSlES OR CLAIMS BETWEEN l'lDll'ARTIES
OF WHATEVER TYPE OR MANNER, INCLUDJNG WITHOUT Lllifl.TATION, ANY CLAIM. ARISING OUT Ol! OR
RELATJ.NG TO THIS DEEP OF TRUST, ALL PAST, PJlllSENT AND/OR FUTURE CREDIT FACILITIES AND/OR
AGREEMENTS J.NVOLYING THt PARTIES
1
.ANY TRANSACTIONS BETWI;EN OR .THt PAll.TIES,.
AND/OR ANY ASPECT OF.ANY PAsT OR PRESENT RELATIONSBll' OF THE PARTIES, WRETHER BANKING OR
OTl'!EllWISI', SPECIFICALLY INCLUDING ANY ALLEGED TORT COMMITTED BY ANY PAI\TY. . .
, , . ; . . . I . .
(d) THE PARTiEs SllALL.ALLOW AND PARTICIPATE IN iliSCOVERYIN ACCORDANCE \vl'rn TIDl FEllERAL
RULES OF CML PROCEDURE FOR A PERlOP OF ONE HUNilRED T?/ENTY (120) PAYS0J'TER THE :ni.JNG OF
THE ORIGINAL RESPONSIVE PLEADING DISCOVEIJ.YMAYCONTINPE THEREAFTER,_ iiGREEJ) BY THE PAR
TIES OR AS ALLOWED BY THE ARI!I'FRATORS. tJNIs6LVED DIS)' UTE$, BJ.WUGBT TO
TRE ATTENTION OFl'liE Ml.BITRATOJJS BY WIU'fl'EN MOTION FORPROPERDISPOSipON;IN.CLUDING RUL- .
lNG ON ANY ASSERTED OBJECTIONS, 'PRIVILEGES, AND PROTECTIVE ORDER REQ)JESTS AND 'AWARDING
REASONAB:f.E ATTORNEY'SFEESTOTHB.PREVAILI!IGPARTY. .. . .' . . . . ..
(e) IN THE. EVEI\'T .THE AGGREGATE OF ALL AFFIRJ\1ATIVE CLAIMS ASSERTED $500,000.00,
EXCLUSIVE OF INTEREST AND ATTORNEY'S FEES, OR UPON TilE WRITTEN REQuEsT OF ANY PAltrY, '(I)
PRiOR TO THE DISSEMINATION OF A LIST OF POTENTIAL ARBITRATORS, THE AM'EJucAN AEBiJ:RATION
ASSOCIATiON SHALL CONDUCT AN INPEJJSON ADJ111N!STRA:rrvt CONFERENCE \VITi! THE !'ARTIES AND
THEIR ATTORNEYS FOR THE FOLLOWING PURI?OSES AND FOR suqi ADDITIONAL ;AS THE PAR
TIES'OR THE AMERICAN ARBITRATION ASSOCIATION 'MAY IJEEM !U'PROPR\ATE, (A)' TO O.JiTAIN ADDmON
AL INFORMATION ABOUf THE NATIIRE AND MAGNITUDE OF THE DISPUTE AND THE:ANTICIPATED LENGTH
OF RRARJNGS AND SCHEDULING; (B) TO DISCUSS T,llE VFEW Of THE PARTIES ABOuT ANY .. TECHNICAL .
AND/OR OTHER QUALIFICA'\IONS OF l'liE A'RBIT)J.ATOJJS; (C) 'fO C,OJXSIDER,.Wm;'rHER' l\1EDI-
ATION OR OTHER METHODS OF DISPUTE RESOLUTION M!GH'f JlE APPROPRIATE, AND (l} AS PROMYTLY AS
PRAcTICAIJLE AFTER THE OF THE Ml.Bl'.l.'J\ATORS; A-PRELIMINARY SllALL llJe HELD
AMONG THE PARTIES, THEIR ATtORNEYS AND THE ARBTI'l\ATORS. WITH THE AGREEMENT OF l'lDl ARBI
TRATORS AND THE PARTIES; THE.I'RELIMINARY HEARING MAY llE CONDUCTED BY TELEPHONE CONFER-
ENCE CALL RATHER THAN lN PERSON. AT TRE PRELrMmARY HEARING THE MAT'l'ERS TiiAT li1AY BE CON
SIDERED SllALL I!ICLUDE, WITHOUT. LIMITATION,.A PREREARJ'NG SCHEDuLING ORDER .ADDJ.illSSING (A)
EACH PARTY'S DUTY TO SUBhUT A DETAILED. STATEMENT OF CLAIMS, DAMAGEs AND/OR lJEFENSES, A
STATEMENT OF THE ISStmS ASSERTED BY EACH PARTY AND ANY LEG,ALAUfllORITIES TilE .PAR1TES MAY
WISH TO BRING TO THE AT.TENTJOl! OFTHEAEBITRATpRs; (B) REsPONSES AND/OR REPLIES TO THE PLEAD
INGS FILED IN COMPLIANCE WITH SUBPART 2(A);. (C) S'flPlJLATIONS REGARDINGANY UNCONTESTED
FACTS; (D) EXCHANGE. AND PREMAR!<JNG OF ALL DOCUMJ(NTS. WincH EACH PARTY BELIEvEs MAY BE
OFFERED AT THE FINAL ARBITRATION HEARING; (E) THEIDEN1'WICATION AND AVAILABILITY bF.WITNESS
ES, INCLUDING EXPERTS; AND SUCH ADDIDONAL. MATTERS REGARDING WlTNilSSES INCi.uDJNG THEIR
BIQGRAPIDESAND A SHORT Sui>!JI!ARY OF.THElR EXPECTED TJ1.<;T!M()NY, (F) WIIETiiERAs'l'ENOGRAPIDC
OR OTHER OFFICIAL RECORD OF THE.PROCEEDJNGS SHALL BE MAINTAINED; A,ND (G) THE POSSIBILITY OF
UTILIZING r.!Ji:DIATION OR OTllER ALTERNATIVE METHODS O!' DISPUfE RESOL1JTION. . .
(f) J10R PURPOSES OF 'THis PROVISION, "'l'HE PARTIES" li1EA;N'S G!iANTORS, .BllNEFlciAnY AND
TRUSTEE, AND EACH AND ALL PERSONS AND ENTITiES SIGNING THIS AGREEMENT ORA,N'i(OmRAGiffiE..
MEN':fS BE'fWEEN <iRAJI10NG ANY OFl'liE PARTIES AS PART OF THIS T!;ANSACTION. "Tlill PARTIES" S'!IALL
ALSO INCLUDE 0FFICERS, Di:RECTOJ.!S, AGENTS AND/OR
REPRESENTATIVES OF ANY PARTY TO SUCH DOCUJ\1ENTS, AND SHALL JNCLUDE ANY OTHER OWNER AND
HOLDER OF THIS AJ;REEMENT.. ' . .
Cg) THE PARTIES SHALi HAVE THE ruGHTTO SELF; in'iLP REMEDIES (SUCH AS SET-biw, NOTIFI
CATION OF ACCOUNT DEBTOJlS, SEIZURE AND/OR FORECLOSUilE OF COL\.ATEi<AL, AND NON..JUDlt:lAL
. SALE .OFPERSONAL PROPERlY AND REAL PROPERTY COLLATERAL) BEFOJiE, DURING ORAnER ANY ARBi
TRATION AND/OR REQUEST ANCILLARY OR PltOVISIONAL JUllii:JM.i:, REME!JIES (SUCR AS G;\RNISHMENT,
ATTACHli1ENT, SPECIFIC PERFOillliANCE, RECEIVER, iiNmNCTlOi'l OR RESTRAIWNG ORDER, AND SEQlJES..
'RATION) BEFORE OR AFtER ANY ARBITRATION, THEPARTIES NEED NOT AWAIT TiiE OUTc0l\1E OF THE
ARBITRATION BEFORE USING SELF-HELP REMEDiES.' USE OF sELF-IIELP OR ANCILLA.JiY ANI!IOR i'ROVI
SIONAL .rtriliClAL REli1EDJES SllALL NOT oPERATE AS A :wAIVEn: .oF EITHER P;\Ri'Ys RIGHT TO COl\1PEL
ARBITRATION; ANY ANCILLARY. OR PROVISIONALREMEDYWHICii WOULD BE AVAILABLE FRoM. A COURI.
A'fLAW SllALLBE AVAI'LAEi.E FROM TI):E'Ml.BITRATOJ<s. , .
(b) THE PARTIES AGREE '!'HAT ANY ACTION REGARDING ANY CONTROVERSY DETWrmN 'l'HE PAnTIES
. sHAi.LEIT1UlRBEBROUGHTBY All.BJTRATION,AS JiEScRilJED !Dm'EIN, Oll.Bl' jupiC!ALPROGEEDINGS, Btfr
SHALL NOT BE PURSlJJ!D I!1 DlFFEI\ENT OR 4'TERNATIVE FORMS. A TlMEJ.,Y )VIUTTEN .
NOTICE OF INTENT TO ARBITRATE PURSUANT :r6 THIS AGREEMENT sTAYS'ANDIOR ABAl'ES ANY AND ALL
ACTION IN ATRIAL COURT, SAVE AND EXcl>PT A REARING ON ,COMP!lL.ARBITRATION AND/OR
THE ENTRY OF AN ORDER COli1PELLING ARBITRATION AND STAPING AND/OR ABATING TllE LITIGATION
PENDING THE FILING OF THE FINAL AWARD OF THE ARBITRATORS. ALL REASONABLE AND NECESSARY
ATTORNEY'S FEES AND ALL TRAVEL COSTS SUALL BE AWARDED TO TiiE PREVAILING PARTY ON ANY
MOTION TO COMPEL ARBITRATION AND MUST llE PAID TO SUCI;ii'ARTY Wfl'HIN TEN THE SIGN-
ING OF THE ORDER C0l\1PllLLING ARDITRATION. .
(i)
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ANY AND ALL OPPOSING PART!l;S Wrfi!IN 360 DAYS AFTER DISPUTJi liAS Afub'EN. A DISPUTE IS DEFINED TO
HAVE ARISEN ONLY UPON RECEIPT OE SERVICE OF J1JDICIAL PROCESS, INCLUDING' SERVIcE OF A<::OUN.
TERCLAIM, FAILURE 'l'O SERVE f. WRITIEN NOTICE OF INTENT TO.ARBITRATE WITHIN THE TIME SPECIFIED
ABOVE SHALL BE DEEMED A WAIVER OF THE AGGRIEVED PARTY'S RIGHT TO COMPEL ARBITRATl<iN OF
SUC!f .CLAI)\1. THE ISSUE OF WAIVER PURSUANT TO THIS AGREEMENT JS AN ARBITRABLE
(j} ACTIVE PARTICIPATWN JN PENDING LmGATION .DURING TJIE 360 DAY NOTICE PERIOD, WHETHER
AS PLAINTIFF OR DEFENDANT, IS .NOT A WAIVER OF THE RIGHT TO coli!PEL ARBITRATION. ALL DISCOVERY
IN THE PENDING LITIGATION MAY BE. IN ANY SUllSEQUENT >illl!ITRATION PROCEEDING
(k) PAR'rmS FOR'fHER AGR,EE {I) NO PROCEEDING.HEREUNDim SHALL DE CER
T!RfED AS A CLAsS ACTION OR PROCEED AS A CLASS t\CTION, OR ON A BAS!S INVOi>NG C!;AIMS BROUGHT
IN A PURPORTED REpRESENTATIVE CAPACITY ON BEHt\LF OF iliE GENERAL PUBLIC, OTHER CUSTOMERS
OR PQTENT)Ai CQSTOJ'dERS OR PERSON$ SITUATED AND OQ NO ARBITRATION pROCEEDING
HEREUNilER. SHALL DE CONSOLIDATED WITJI; OR JOINED IN ANY WAY WITH, ANY OTIIER ARBITRATION
PROCEEpiNG .. . . . . . . . . . . : . . ..
QJ. ANY ARBITRATOR SELECTpl DE KNOWLEDGEABLE IN THE SUBJECT MATTER OF THE DIS
PUTE. EACH-OF THE PARTIES SJiALLPAY AN EQUAL SHARE OF THE ARBITRATION COSTS, FEEs, EXPENSES,
. "AND OFTHEARBITRATOnB' FE"ES
1
COSTSAI."'ID EXPENSEs.
{m) ALL S'rATirr8 OF LOOTATIONS WHICH WOiiLD OTHERWISE BE APPIJC;JlLE $HALLAPl'LY TO ANY
AND ALL CLAJMS AsSERTBD iN ANY ARBITRATION l'RO.CEEDING HEREUNDER AND ')'HE coMMENCEMENT
OF ANY ARBITRATiON PROCEEiliNG TOI,LS SUCH STATurES OF !JtdiTATIONS, . .
tnl .. IN ..m ARBITRATioN To Trus PRovrsroN, oR MAJoiUTY
OFTI!EM,ARE SPECWICALLY.)1lMPOWERED TO .DECIDE (BY DOCUMENTs ONLY, OR \VITH A AT THE
ARDITRATOllS''SOLE1JJSCRETION) J.>RE-IIEARING Mt:>TIONS \VIHtHARE SUBSTAN'l'IALLY SlMILAR TO PRE-
HEARING M(/l'IONS TO DISll!lSS AND 1\fO'riONS FOR SliliiMARY ADJUDICATION, . . .
. {o) . TB;IS ARBITRATION PROVISION SHALL SURVIVE ANY TERilflNATION, OR EXPIRATION
.OF THE A\}REEMENT rn WRfCU THIS PROVISIOJ'llS CONIAINED, UNLESS ALL OF Tllll PARTIES OTIIERWISE
EXPRESSLY AGREE tN WRI'fiNG . . .
. {p) :TimPARf.!ES A<;KNOWLEDGE 'fiiAT THIS AGREEMENT EVIDENCES'ATRANSACT!ON INVOLVING
INTERSTA'l'E COMMERCE, TiDI FEJ)ERAL ARBITRATION ACT SIIALL GOVERN THE INTERPRETATION,
PROj::EEDINGS.PURSUAl'ffTO TUEARDITRA')'ION CLAUSE
{q) THEARBITRATOljS, ORAllfAioBiTY OF THEM, SHALL AWARD ATTORNEY'S FEES AND COSTS TO THE
PREVAILIN.G PART,Y PI!:\<Si!ANT TO THE TERII!S OF TIIIS AGREEMENT. .
{) NE!TlJER THE PARTIES NOR r.ifE ARBITRATORS MAY DISCLOSE THE EXISTENCE, CONTENT, OR
HEil'EUNilER WITHOUI' PRIOR WruTTEN CONSENT OF ALL PARTIES AND/OR
{) . Y.EN\IE OF ANY ARBITRATION PROCEEDING HEREUNDER SHALL BE IN THE COUNTY 'l'l'liERE BENEFI
ClARY IS
. .
NOtwitbSf.and4lg the above f!!lating lo conductiog a foreclosure pu.tSU.ru'Jt to the provisions of this Dt:ed Of Trost, the
shall, 11nd is hereby comply ?fith the provisions' ofCba_Pter of the Texas Property Code (the. "Property Code")
as It may be amended and in effect 8s of the. d"ato or dfdes of any foreclosure proceedings conducted pursuant to)his OfT rust. In
pa{ticulpr, the Iooa\ion and time of sa19 ahall be held in with Section SI :002 of the Property Code or.anY amendments
IQ or re:-enactment or rovisions to Such law
Grantors and tWw that for purposes of de.termining the fair market value Properiy (or any thereof), as sUch
teim is used in Section 51.003 of the ie:r;as Froptrly which is sold at a non..juqicial foroelosure tnUe.pUmJant to the tenns ofthis
Dee4 Qf"irust in with 51.002 of the Property the folloMng fudors sPall.be. to deterqtine such
Property's.fair IQ3I"ket Value, foc such pJliPOSes: (a) the Ptop(ltfY. valued "AS IS" without any value being an!lcipated for any
. improvotments or refutbishing to be Conducted, 9r after the date.ofthe foreclosure sale, (b) the intention of the purchaser
to pr;omptly, withQut"anY hotping pod, (c) an)' s.hal1 cash ooly,"with9utfinanclng by the
seller, (dl all reasonable costs of closing "a re-sale sh!lll be deducted t!om.the reasonable costs of' closing a, resaie shall be dedUcted
from the Uti mate of fair .ruch as attorneys' fees. title policy pi:emiuins, survoyor fees and expenses, the then prevaiUng
brokr's or UnPaid. ad valorem tax UrloUilts, an."d (e) thO aflplication of a dis'coup.t to the tQ \x: appUeO to
apy futuro sales price to arrive at its th'n current fair market y.alue. Grantors further Btipulat-9 that any value given to such Property in
with obtaining. ofthP-loan Beneficlary to whlch this Peed OfTrust relates, or not any otlief time or time$,
-'.shall not bq_ used afl.d not be considered for _guidai:tce in deterroiiPng the fair market value of !l\lch Froperty on the date of any such
foreclosure ' '
!&aseftold Covvn"gJlts . . If the interest of Gnuitois in the Property is a inteiest and no! a-fee ownetshil\ then the lien of this
Deed. ofTrust shalt l:ie 'upon the leasehold rights .illd benefits of Grantors, in np event shall any of thy burdens or Obligations WJder
saiq leasehqld be assumed by, or 1?e the cbHgations of, Beiteilcfary absen"t an express written instrument, C>Xecllted by Beneficiaty
such obligations, which.sball be within thC sole discretion ofJ?eneflciary. .
To the Grantors a in all or any portion of the Property, Gnmtors hereby covenant and. agree as follows;
(a) Grantors wni at all times full)' perfonn and comply with 'all agreements, covenants, terms and conditions imposed upon or
assumed. by'it, as te;11ant or ah.y and all leases affecting the Property (collectively, the "Lease"}, true and cmrect copies of
. Page 11 ofl3 DOTIl/03.1BC9004
16
\Yhlcli Grantors shall deliver to Beneficiary, . .td that if Grantors shall fail to do so, Beneficia..., .nay (but shnll not bo ob1i!@tcd to) take
any action Beneficiary deems necessruy or desirable to preveni or to cure any default by Onmtors in. the performance of or cOmpliance.
with any of Grantor's covenants or obligations under the Uase. Upoh receipt by'Beueficii!I}' from-the landlord under.the--I;easc of any
'written notice of default by Grantors thereUnder; defuult or any written notice of Qcfault, orthe nahlre thereof be questioned or denied
by Gnuitors or by any party onand on behalf OfGrantQIS, Grantors be.:b)rex.Pressly grant to B'eneficiazy and agroo tl!at ijeneficiazy
shall have the absolute and immediate right to enter in and upon the leased premises or apy part Beneficiary deems nee--
es.<oai)' or desirable io order to prevent or to cure any defaUlt by Grantors under the. Lease. Bcmeficiary lila-}' P<tY avd e:<.pend such sums
ofmon'cy as Beneficiary in its sole discretion deems necessruy'{or any such purpose, and GPUltors hereby agree to pay to .Beneficiary,
immediately upon demand, all such sums so wid {llld expended by Bedeficiary, !ill sums so paid and expended by Bc.ncfichuy shall
accrue at the rates set forth Jn tbeNotC and be added to and be secured by'the lien of this Deed OfTrust.
(b) GmntOts will not surrender the leasehold estate und interest hereinabove nor te.Miriate oi' cancel thf: Lease; and it
will not; without 1he express-written conSent of-Beneficiary. modify, change, supplement, alter or the Lease eiul.cr Orally or in
writing. Any such cancellatiorl, modification, change, 'supplement, or atne_udmept of the Lease without the prior
wrltfcll. theteto by Beooficiary shall be and ofzio force. and ef'fevt. A13 further security to Beneficiazy, Oratitors sl:iall deposit
with Beneficiruy au origlual ofthC Lease and all amendments thereto or a theteof, to be retained bj Bene&lary until the
indebtedness t:ecured hereby 1s fully paid.
.(c) No 1elease or forbearance of any of Grantors'-obligations unddthe Le-BM, putsllant to the Lease.or otherwise, shall release
Grantors fr<:lm any of its obligations under this Deed Of1'rust, ificlliding obligatiOns witli respect to llie payment o'r rent as provided
for in the Lease and the perfonnance of all of the tenns, provisions, covenants, CJJnrlitio):lS ind agreements contained in the Lease, to
be kept. performcd.and C()mplied with by Grantors therein.
(d) Unte.ss Beneficiary shall otherwise expressly consent In wrlting. the fee title to the demised by .the Lease and the
leasehold 6Sfato shall not merge but shall always remain sepnmte and distinct, notwithstanding the un.fon of sald estates either Jn the
landlord or in the tenant, or in a third party by purchase or otherwise.
(e) lftbm shall be filed by or Grantors a petition under the l3ankruptcy'Code, 11 Q":S.C. 101 et seq. (the ''Bankruptcy
Code''), and Grantors, as lessee under"the Lease, sbaU detcnnine to reject the L;ease pursuant to Section J6S(a) of the Bankruptcy Code,
Grantors shall give Beneficiary not less than thirty (30) days prior notice .of the dato Oh which Grantors shill apply to Blinkruptcy
Co\lrt for authority to reject the Lease. Beneficiary shall have the -right, but not the obligation, to serve upon Grantors :f11thin such ten
day Period a notice stating that (i) demands that Grantors assume and. assign the Lease to Beneficiary pursuant to Section
365 of the .Bi!llkruptcy Code and (ii) Beneficiary covenants to cure or proVide adequate assurattce of prompt cure of all defaults and
provide adequate assurance of future perfom1ancc under the Lease, Ifl3eneficiary serVes upon Grantors the nolice described in the
preceding Sentence, Grantors- shall not seck.to reject the Lea.se and shall comply WJ_th the demal\t;l.pro'lided for in the ..clause (i) of tho
preceding sentence, within 30 days after the ilotice shall have been glvM subjecfto the performance by Beneficla.ry of the covenant
provided .(oi' in 'Clause (U) oft he precediog sentenCe, Further, effective upon the entry of an order for reUefin respect of Grantors Wlder
Chapter 7 ofth'e Bankruptcy Code, Gran tots hereby assign and tmnsfer to Beneflciaey'n non--e'xclusiverigbt to apPly to the Bankruptcy
Court under SUbsection 365(d)(1) oftbe Bankruptcy Code for an or-der'exte-uding the period whioh the Uate may !>a rejected
or assumed, ' '
NO ORAL
Tms WRITTEN AGREEMENT REPBfiSENTS nm FINAL AGREEMENT DETWEim 'fHE PARl':rnS AN]) MAY NbT
DE CON1BAD1CTED lWEYIDRNCE OF PRIOR CON'fEMPORANEOJJS. pR SUBSli:OUENT 6RALAGJiEEMENT OF
TH:E . ....
THERE ARE NO TJNWRTITEN ORAL AGREEMENT$ BETWEEN THE
..
Date{l this ----------<L----------day of DECEMBER
STATE OF TEXAS
COUNTY
GRANToR:':
ce Matketing, Inc.
r o atiou, General

(Acknowledgment)
..

by_
Notal)' Public, State ofTexas

llot13 DOT-1U03- IDC9004
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16
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STATEOFT)lXAS'
COUNTY OF __ _

(AcknOwledgment)'
Thls instrument was aCknw1edged before me on-----------------------

STATE OF TEXAS
COUNTY OF l)f-1:-,M._.
STATE OF TEXAS
COUNTY OF __ _

, Notary Public, State of1'e.xas
My commission expires:: ________ _:_ _____ _
(Partnership Acknowledgment)
My commissfon expires''----------,-'------
(Corporation Admowledgrnent)
This Instrument was acknowledged me-
by
"

cotpOration, on behalf of said corporation.
Notary :Public, State ofToxas
My commission expires:: _____________ _:._
After return t!> at its matting address, as follow:
APTER RjlCORD!NG, PLEASE RETURN TO:
INTERNATIONAL BANK OF COMMERCE
Credit Department .
130 E. Travl&
SanAntorllo, Texas 78205
P11ge Uofl3 DOT-12103 1BC9004
16
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EXHIBIT "A"
TRACT 3:
lot 17, Block 3, New City Block A38, Gillis Hood, Unit 2, an addition to the City of
San Antonio, Bexar County, lexas accordlfl9 1:0 the l!l<lp or plat thereoF, recorded in,
Volu!ll'e 95.12, Page 91, Deed and Plat Records of Bexar County, Texas, SAVE PMJ EXCEPT
that portion conveyed to the City of Scm Antonio In Volume 5202, Page 1204, {}Fffcial
Public Records of Real Property of Bexar County,
TRACT 4:
Condomlniun Unit 104, Building A, City Block 16957, Post Oak CondoMiniums, in the
City of San Antonio, Bexar COUlty, Texas, according to Condomlnilllll. IJaclaration
recor#ed in Volufle a, Page 159, and Volumaa, Page 189, Records Bexar
,County, Texas, together with an undivided 4.52904519 percent Interest In the coamon
eleMnts.
22
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LOAN AGREEMENT
This Loan Agreement ("Agreement") is entered into to be effective the .3-_day of December,
2005 by and between International Bank of Commerce, a Texas banking association ("Lender"),
whose address is 130 E. Travis, San Antonio, Texas 78205, and Atled, Ltd., a Texas limited
partnership ("Borrower"), whose address is 2001 S. Leredo Street.,_ San Antonio, Texas 78207.
WITNESSETH:
I. Lender has agreed to make a loan (the "Loan") to Borrower pursuant to the following Real
Estate Lien Notes dated of even datehere\'{ith executed by Borrower and payable to theordei
ofLeuder in the original principal sum of One Million Three Hundred Thousand and 00/100
Dollars ($1,300,000.00) (the "Note"). Such Loan shall be used by Borrower to refinance
various indebtedness of Borrower.
2. The Loan shall be evidenced by that certain Real Estate Lie11 Note of even date herewith
(''Note") in the amount of Ute Loan executed by Borrower and payable to the orderofLender.
Repayment of the Loan and performance of all other obligations ofBorrower to Lender in
C<Jnnection with Ute Loan shall be governed by the Note and tWs Agreement, and shall be
in part by: (i) the Deed ofTrust (as defmedherein) C<Jveriingthe Properly (as defmed
herein) and (ii) the Assigrunent of Leases and Rents (as defined herein).
Therefore, jn consideration of the mutual covenants, agreements and undertakings hei:ein
Lender and Borrower hereby agree as follows:
ARTICLE!
DEFINITIONS
For purposes of this Loan Agreement, the following tennsshall have the respective meanings
assigned to them.
1.1 Cas1 Flow. The term "CashFlow''shalimeanBorrower's netincome,asdetennined
in accordance with GAAP (as defined herein), after payment of: (i) applicable taxes to Governmental
Authorities (as defined herein) and (ii) all debt service payments of Borrower.
1.2 Closing Date. The tenn "Closing Dale" shall mean the date upon which the initial
proceeds are advanced to Borrower.
I 1.3 QJ!s, The term "Code" shall mean the Texas Business and CoJ11lllerce Code,
1.4 The term
11
Conunltment" shall mean the Commitment Letter, if any,
Lender to Borrower, such Connnitment being inC<Jrporated herein by tilis reference for all
1.5 Debtor Relief Laws. The tem1 "Debtor Relief Laws" shall'mean any applicable
liquidation, conservatorship, barikruptcy, moratoriwn, reru:rangement, insolvency, reorganization,
or laws affecting the rights or remedies of creditors generally, as in effect from time to time.
1.6 Deed of Trust. The term "Deed of Trust" shall collectively mean the following: (i)
those (2) certain Deeds of Trust, Asslgmnent of Rents, Security Agreement and Financing
Statements of even date herewith executed by Borrower and Staci Properties, Ltd., a Texas
partnership C<Jvering certain real property described on Exhibit "A" attached hereto.
1.1 Event of Default. The tenp
11
Event of DefauW
1
mean the occurrence or
happening, at any time and from time to time, of any one or more of the following:
1. 7.1 Payment of Indebtedness. If any of the Indebtedness is not paid when due,
whether by acceleration othenvise.
1.8.2 Performance of Obligations, If any oftl1e Obligations (as defined herein) are
not fully and timely performed and discharged as.and when required.
22
1.7.3 Paise Representation. If any representation or warranty made by BorroWer
under or pursu(\1\t to the Loan Documents or any other documents delivered to Lender in e<>nncction
therewith be erroneous or misleading in any material rcspe<:t when made.
1.7.4 Judgment. If any fmal money judgment shall be rendered against Borrower
or any party liable to pay any part of the Indebtedness and the same shall not be paid or execution
on the srune shall not be stayed by perfection of an appeal or other appropriate action within sixty
(60) days of the rendering of any sucldinal money j11dgment. .
1.7.5 Yoluntazy Bankruptcy. If Borrower or any party liable to pay any part of tho .
Indebtedness shall (!)seek entty of an .order for relief as a debtor and a proceeding \mder the
Bankruptcy Code, (ii) seek, e<>nsent to or not c<>ntest the appointment of a receiver or trustee for
itself or himself or for all or any part of its or his property, (iii) file a petition seeking reliefunder the
bankruptcy, arrangement, reorganization or other debt
0
rrelleflaws of the United States or any state
or any othcJ e<>mpetent jurisdiction, (iv) make a general assignment for the benefit of its or his
creditors, or (v) admit in writing its or his inability to pay its or his debts as they mature.
1.7.6 !nyolw1tarvBankruptcy. lf(i) a petition is filed against Borrower or any party
liable to pay any part of the Indebtedness seeking relief llllder the bankruptcy,
reorganization or other debtor relief Jaws of the United Siates or any state or other competent
jurisdiction, or(ii) a cowtofcompetentjurisdictionenters an order,judgment or appointment,
without the consent of Borrower or any party liable to pay Indebtedness, a reoeivcr or trustee for it
or him, or for all or any part of its or his property, aad (iii) such petition, order, judgment or decree
shall not be and remain discharged or stayed within a period of sixty {60) days after its entty,
1.7.7 Exfstenee of Other Liens. If, at any time.during the term of the Loan, there
is placed upon the Property. or the Property is made subject to, any lien or security interest other than
the liens and security interests securing the Loan, except for lieos which Borrower is contesting in
good faith and which have qeen bonded or otherwise secured to the reasonable satisfaction of
Lender.
1.7.8 Sale. Lease or Other Transfer. Any sale, exchange, assignment, conveyance,
transfer of possession or other disposition of the Property or the Project or any interest therein or any
part thereof by Borrower to any party whatsoever.
1.7.9 Change of Ownership. Any invoiw1tary chaage in controlling OWl)Crship of
the Property, in whole or in part, excluding minor condenmation, or any change in the owne.rshlp of
Borrower, other than is provided in Section 1.7.11 herein.
1.7.10 Title and Lien Priority, Iftltle ofBorrower (as applicable) to any or all ofthe
Property shall .be challenged or endangered by any party whatsoever, and Borrower shall fail to cure
tho srunc in acc<>rdanee with Section 1.7.2 hereof.
1.7.11 Transfer Or Interest .. The transfer, sale or assjgnment of any interest in
Borrower.
1.7.12 Other Defaults. The occUrrence of ru>y Event of Default, as defined or
described in (a) any of the other Loan Documents, or (b) !illY Jnstrun1ent evidencing, securing or
pertaining to any indebtedness which is also secured by any part of the Property.
1.7.13 Levv on Assets. A levy on any of the assets of Borrower or any surety,
endorser of the Indebtedness.
1.8 Financial Stntements. The tenn
11
Financial S1atements'
1
shall mean balance sheets,
profit and Joss reconciliations of capital and surplus, statement of cash flow, operating
statements with respect to the Property, a schedule of contingent liabilities, and other fmancial
infom1ation .of Borrower, Guarantor(?" defined herein) or the Project requested by Lender.
1.9 FL,turey. The term "Fixtures" shall mean all of Borrower's materials, supplies,
equipment) apparatus and other items now or hereafter attached to, installed on or in the Land or the
Improvements, or which in some fashion are deemed to be fixtures to the Land or Improvements
2
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under the laws of the State of Texas, including the Texas Business and Conunerce Code. Thetenn
"Fixtures" shall include, \ylthout limitation, all items of personalty to the extent that the same may
be 4eemed Fixtures under applicable law.
1.10 GcncraJI}' AccepfedAccountingPrJnciples (or
11
GAAP
11
), Thetemt
11
GAAP" sha11
mean those principles and practices (a) which are recognized as such by the Financial Accouuting
Standards Board, (b) which are applied for all periods after the date of this Agreement in a mrumer
consistent with the manner in which such principles Md practices were applied to the most recent
financial statements oftl1e relevant entity or individual fumishe<l to Lender, and (c) which are
consistently applled for all periods after the date hereof so as to reflect properly ihe financial
condition, and results of operations and changes in financial positions, of suCh entity or individual .
If a change in any accounting principle or practice is hnplemente<l by the Financial Accouuting
Standards Board, then all reports and financial statements require<! hereunder may be prepared in
accordance with such change only after written notice of such change is given to Lender,
' '
1.11 Goyernmental Authority. The tenn "Govemmental Authority" shall mean the
United States, the state, the county, the city, or any other political subdivision in which the Property
is located, and any otl1erpolitical subdivisionJ agency, orinslrumenfalityexercisingjurisdiction over
Borrower or the Proporty.
1.12 GovcrnmentaiRequircmeuts, Thetenn
11
Govemmental R.equi.rements
11
shall mean
all laws, ordinances, rules and regulations of any Governmental Aulliority applicable to Borrower
or the Property,
1.13 Guarantor. The tenn
11
Guarantor" shall mean \Vatter Scott Jensen, Delta Produce,
L.P., a Texas limited partnership, and Staci Produce, Ltd., a Texas limited partnership,
1.14 Highosl Lawful Rate. The tenn "Highest Lawful Rate" shall mean the maxhnum
nonusurious rate of interest permitte<l to he charged by applicable federal or Texas law (whichever
shall penn it the higher lawful rate) from time to time In effect. At all times, If any, as Chapter One
oft he Texas Credit Code as in effect as of the date of this Agreement ("Chapter One") shall establish
the Highest Lawful Rate, the Highest Lawfui.Rate shall be the "indicated rate ceiling" (as defined
in Chapter One) from time to time in effect. If the obligation is an open-end accoun4 Lender may
from time to time, as to and future balances, implement any other ceiling under. Chapter
One and/or revise the index, formula or provjsion oflawused to compute the rate on such obligations
if and to the extent pennied by, and in themaJmcr provided in, Chapter One,
1,15 Improyements. The tenn "Improvements" sha11 mean any and all buildings,
structures, and other improvements, and any and a11 accessions, additions, replacements, .
substitutions or alterations thereof or appurtenances thereto, now or at any time hreafter situated.
place<! or constructed upon the Land or any part thereof.
1.16 Indebtedness. The tenn
11
Indebtedness" shall mean the principal of, interest on and
all other amounts and payments due under the Note or secured by the other Loan Documents,
together with all funds hereafter advanced by Lender to or for the benefit of Borrower as
contemplated by any covenant or provision herein contained,
1.17 Insuranco Policies. Insurance poHcics for (i) worker's compensation insurance for
statutory limits; (i i) comprehensive general! ia bi lity insurance for owners and contractors; (iii) hazard
insurance against all risk of loss, including collapse, in an runouut equal to no less than the full
replacement cost of all Improvements, including the cost of debris removal, with annual agreed
amount endorsement and sufficient at all times to prevent Borrower from becoming a co-insurer,
such insurance prior to completion of the Project to be in Builder's Risk fonn on a non-reporting
basis a11d iitcluding coverage for all materials and equipment, wherever located, installed In or
utilized in the construction of the Project; (lv) if the Proporty is in a "flood hazard area", a flood
insurance policy, or binder therefore, in an amount equal to the maximum Loan Amount, or the
maximum available under the Flood Disaster Protection Act of 1973; and (v) such other insurru1ce,
if ahy, as Lender may reasonably require from time to time, including but not limited to rent and
rental value insurancefor a period of six (6) months. AU insurance policies shall (i) be issue<! by
companies, In amounts and on fonns reasonably satisfactory to Lender, (il) have Borrower as the
insured, and (iii) have a provision giving Lender at least thirty (30) days prior notice of, and as a
3
.,
22
condition to, cancellation or material change of the coverage. Allliazard insurance policies shall
contain a standard mortgagee's endorsement in favor ofLender and shall name Lender i!S Joss payee.
1.18 Lllllil.. The term "Lend" shall mean the real property described on Exhibit "A"
atlached hereto and incol])orated herein by reference.
1.19 Legal Requirements. The tcnn "Legal Requirements" shall mean (a) any and all
present and f\iture judicial decisions, statutes, rulings, nlies, regulations, p'ennits, certificates or
ordh)ances of any iJovermuental Authority In any way applicable to Borrower or the Property,
including, but not limited to those respecting tl1e ownership, use, occupancy, possession, operation,
maintenance, alteration, repair or reconstruction of the Property,(b) any and all Leases and other
contracts (wrien or oral) of any nature to which Borrower may be bound, and (c) any and all
reservationsJ conditions, easements or other covenants or agreements ofrecord affecting
the Property.
1.20 Lender. The tenn "Lender" shall mean lntemntiQnal Bank of Commerce.
1.21 Liabilities, The term "Liabilities" sballmean (a) all items which in accordance with.
GAAP would be included on tl1e liability bf a balance sheet on the date as of which Liabilities
is to be determined (excludh1g capital stock, surplus, suiplus reserves and deferred credits), (b) all
guaranties. endorsements ro1d other contingent obligations in respect of, or any obligations to
purchase or othemise acquire, indebtedness of others, and (c) all indebtedness secured by any lien
existing on the Property whetl1er or not the indebtedness secured thereby shall have been assumed
by Borrower; proyided. that such term shall not me11n or include any indebtedness u1 respect of
which monies sufficient to pay and discharge the same in full (either on the expressed date of
matmity thereof or on such earlier date as such indebtedness may be duly called for redemption and
payment) shall be deposited with a depository, agency or trustee acceptable to Lender in trust for the
payment thereof and which mqnies are not reflected as current assets of Borrower on its Financial
Statements,
1.22 l&l!n The tenn "Loan" shall mean the Loan by Lender to Borrower, in an amount
not to exceed the prh1cipal sum set forth in the first paragraph of this Loan Agreement.
),23 Loan Documents, The term
11
LoanDocuments
11
shall mean thlsAgreement; the Deed
ofTmst, the Note, that certain Assignment ofleru;es and Rents of even date herewith C'Assigmnent
of Rents") executed by Borrower in favor of Lender covering the Property and such oiher
instruments evidencing, securing, or pertaining to the Loan as shall, from tUne to time, be executed
and delivered by Borrower or any other party to Lender pursuant to this Agreement.
1.24 Note. The tem1 "Note" shall mean the $1,300,000.00 Note,
1.25 Obligations. The term "Obligations" shall mean any and all of the covenants,
warranties, representations and other obligations (other than to repay the Indebtedness) made or
undertaken by Borrower or others to Lender or others us set forti1 in the. Loan _Documents.
1.26 Personalty. The tenn "Personalty" shall mean all of the title and interest of
Borrower in and to all tangible and intangible personal property, including all equipment, Inventory,
goodsJ consumergoodsJ accounts, chattel paper, instruments, money, general intangiblesJ documents,
minerals, crops and timber (as those tenns are defmed in tho Texas Business and Commerce Code)
which is attached to, installed on or placed or used on, in connection with or is acquired for such
attachment, installations, placement or use, or which arJses out of the development, improvement,
fmancing, leasing, operation or use of the Und, the Improvements
1
Fixtures or other goods located
on the Landor Improvements, together with all additions, accessiOilSJ accessories, amendments and
modifications thereto, extensions, renewals, enlargements ind proceeds thereof, substitutions
therefor, and income and profits therefrom. '111e following are included, without limitation, in the
definition of Personalty: furnishings, building materials, supplies, machines, engines, boilers,
stokers, pumps, fans_. vents, blowers, dynamos, fumaces, elevators, ducts, shafts, pipes, furniture
cabinets, shades, blinds, screens, plmnbing, heating, air conditioning, lighting, lifting, vcritllating,
refrigerating, cooking, medical
1
laundry and incinerating equipment; partitions) drapes, carpets
1
rugs
and other floor coverings, awnings, call and sprinkler systems, flre prevention and extinguishing
apparatus and equipment, water tanks, swimming pools, compressors, vacuwn cleaning systems,
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disposals, dishwashers, ranges, ovens, kitchen equipment, cafeteria equipment, recreational
equipment,. loan financing arrangements, bonds, construction contracts, leases,.
licenses, pennits, sales contracts, insurance policies and the proceeds therefrom, plans and
spe<:lfleations, surveys, rent rolls, books and records, funds, bank deposits and all other intangible
personal property.
1.27 Propcrtr, The tenn
11
Properti
1
shall mean the Land, Improvements, Fixtures,
Personalty and all other property constituting the "Property", as described in the Deed ofTrust and
the collateral described in the Loan Documents, including:
1.27.1 all rights, privlleges, tenements, hereditaments, rights-of-way, eosements,
appendages and appurtenances in anywise appertaining thereto, and all right, title and interest of
Borrower in and to any street, ways, alleys, strips nr gores of land adjoinh1g the Land or any part
thereof;
1.27.2 all bettennents, accessions, additions, appurtenances, substitutions,
replacements and revisions thereof and thereto and all reversions and remainders therein;
1.27.3 all of Borrowers right, title and interest in and to any award, remuneration,
settlement or compensation heretofo.re made or hereafter to be made byanyOovenunentai AuU1ority
to Borrower, including tliose for any vacation of, or chango of grade in, any streets affecting the Land
or the Improvements;
!.27.4 all of Borrower's rights to all plans and specifications for the Improvements;
al,l contracts and subcontracts relating to the Improvements, all deposits (including tenant security
deposits) funds, accounts, contract rights, instruments, documents, general intangibles (including
trademarks, service marks, trade names and symbols to the extent used in connection with the
Improvements but specifically excluding any other use oftrademruks, service marks, trade names
or symbols of Borrower), and notes or chattel paper arising from or by virtue of any transactions
related to the property descrlbedherein; all pennits,licenses, franchises, certificates, and other righls
and privileges obtained in CO!llle<:tion with the property described herein; all proceeds arising from
or by virtue of the sale, lease or other disposition of all or any part of the Property (consent to same
not granted or to be implied hereby); all proceeds (including premium refunds) payable to or to be
payable under each policy of insurance relating to the Property;
1.27.5 all other interest of every kind and character which Borrower now has or at
any time hereafter acquires in and to the above described real and personal property and all property
which is used or useful in connection therewith, including rights of ingress and egress, easements,
licenses, and all reversionary rights or interests of Borrower with respect to such property. To the
extent pennied by law, all of the foregoing Personal Property and Fixtures are to be deemed and
held to be a part of and affixed to the real property;
1.27.6 any and all other security and collateral of any nature whatsoever, now or
hereafter given for the repayment of the Indebtedness or the performance and dlschargeof tho
Obligations.
As ltSed in this Loan Agreement, the term
11
Properly
11
is expressly defll1ed as meaning
ail or, where the context pennits or requires, any portion of the above and all or, where the con1ext
pennits or requires, any interest therein.
1.28 Title Company. The term "Title Company" shall meon Chicago Title Insurance
Compa>!Y
1,29 'I'ltlelusurance. The term
11
Title Insurancc
11
shaH mean a TLTAMortgagee's Policy
Binder on Interim Construetinn Loan or, ifrequestcd by Lender, TLTA mortgagee policy of title
insurance effective as of the Closing Date in the amount of the Loan insuringthattheDeed of Trost
constitutes a valid first lien covering the Property, subject only to those exceptions and
encmnbrances which Lender may approve, with such endorsements as Lender may request, issued
by the Title Company. ,
1.30 Additional Rules of Construction, Unless the context otherwise requires:
22
. ,
'.
1.30.1 a term has the meaning assigned to It;
1.30.2 an accow1ting tenn not otherwise defined has the memting assigned to it In
accordance with GAAP;
1.30.3 "or'' is not exclusive;
1.30.4 words in the singular include the phttal, and in the phttalinclude the singular;
and
1.30.5 provisions apply to successive events and transactions.
ARTICLE2
AGREEMENTOFLENDER
2.1 Commihueut ofLender. Subject to the terms and conditions hereof, Lender hereby
agrees to make tl1e Loan to Borrower provided that: (a) Borrower has satisfied all of the covenants
and conditions oftllis Loan Agreement; (b) no Event of Default exists; and (c) Borrower pays to
Lender as of the Closing Date a comnlitrnent fee equal to Two Thousand and 00/100 Dollars
($2,000.00). Borrowers obligation to repay the Loan shall be evidenced by that certain Real Estate
Lien Note substantially in the form of Exhibit "B" attached hereto. The Loan shall be payable as
provided in the Real Estate Lien/Prontissory Notes attached as Exhibit "B" hereto,
2.2 Initial Advance of Loan, Lender shall not ba obligated to make t.he initial advance
of the $1,300,000,00 Note to Borrower until Lender Is in recelpi of the following, all in form "!'d
substance satisfactory to Lender:
2.2.1 this Agreement duly executed by Borrower and Lender;
2.2.2 the $1,300,000.00 Note executed by Borrower;
2.2.3 a copy oftlte Deed of Trust executed by Borrower and certified by the Title
Company as having been recorded covering the Property and ail improvements ti1ereon whethernoiv
existing or hereafter constructed, and securing the obligations ofBorrower hereunder and under all
documents executed in coru1eotion with the Loan;
2.2.4 all of the other Loan Documents duly executed by the appropriate parties;
2.2.5 the Insurance Polld";
tl1e Title Insuranre;
2.2.7 evidence satisfactory to Lender that Borroweds duly qualified, in existence
and in good standing under the laws of the Jurisdiction of its formation;
2.2.8 evidence satisfactory to Lender that Borrower is fully autl1orlzed and
permitted to enterinto this Agreement, the Note, the Deed ofTrustand the other Loan Docunients,
that this Agreement, the Note, the Deed of Trust and the Loan Docwnents are valid and binding legal
obligations ofBorrowcr, enforceable in accordance with their tenns
1
and that the persons executing
such doctunents on behalf ofBorrower have the authority to execute ail of the same for and on behalf
of the Borrower;
2.2.9 Lendets approval of a phase I environmental site assessmeJ)t on the Property
to be obtained at the sole cost a11d expense of Borrower:
2.2.1 0 Such other documents and information as may be required by Lender wluch
are reasonable by prudent lending standards; and
6
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2.2.11 Tho further condition that, at the Closing Date, all legal matters and Loan
Documents incident to the transactions herein contemplated shall be reasonably acceptable to Londer
and Stumpf Craddock Massey & Farrimonil, P.C,, legal cowtSel to Lender.
2.3 Lender's Obligation! Lender has no llablllty, obligation or responsibility
with to the condition of the Improvemenls except to advance the proceeds of the
Loan as herein agreed. Lender or other agent has the right but is not obligated to Inspect the Project.
Nothing, including without limitation any disbursementmadohcreunder
of any document or Utstrument
1
shall be construed as a representation or warranty
1
expressed or
implied, on the p_art of Lender,
2.4 Interest on the Loan. Interest provided in the Note shall be calculated on sums
actually advanced to Borrower pursuant to tlte terms of tllis Agreement. Borrowers liability for
payment of principal and interest provided in the Note shall belinlited to principal amounts actually
advanced to or for the benefit ofBorrowec pursuant to tlus Agreement and interest on such amounts
calculated as aforesaid, Interest on the Note shall be calculated ana 360-day factor applied ana 365-
day year, or a-366-day year, in the event that the year is a leap year,
2.5 Sccurltv for the Loan, The Note and Loan will be secured by (i) a frrst and prior 1!011
on tlte Property, (il) a fustand prior lien and security interest on Borrower's interest In all equipment,
furnishings, inventory and articles of personal property now or hereafter used in, on, under or about
Ute Property, instruments, documents and general intangibles, and notes or chattel paper arising from
or by virtue of any transaction related to the Property or the Improvements, (iii) all proceeds from
the eoliateral described above, (lv) all insurance policies relating in whole or in part to any of the
foregoing, (v) all substitutions for and replacements of and all additions and accessions to any ofthe
foregoing, (vi) all guaranties and security for any of the foregoing, (vii) all the rights, tille and
interest of Borrower in and to all books and records relating in whole or in part to any of the
foregoing, and (viii) the assigmnent of all rents and leases pertaining to the Property pursuant to the
terms of the Assignment of Leases and Rents of even date herewith executed by Borrower in favor
of Lender ("Assigmnent ofLeases and Rents").
ARTICLE3
REPRESENTATIONS AND WARRANTIES OF BORROWER
Borrower hereby unconditionally represents and warrants to Lender as
3.1 Organ!.zation and Authority of Borrower. Borrower are duly organized, validly
existing and in good standing under the applicable Jaws of the State of Texas and is qualified to do
business in the State of Texas, with fulf power and authority to enter into tilis Agreement
3.2 Execution and DcHverv of Loan Documents. TI1e execution and delivery of the
Loan Doewnents executed or delivered or to be executed or delivered by Borrower and the
consummation of the trnnsactions contemplated thereby: (a) are within Borrower's powers and have
been and will be duly authorized and nil other requisite action has been taken, and (b) to the best of
Borrower's knowledge> without duty of independent inve-stigation, will not violate, be in conflict
with, result in a of or constitute (with due notice or lapse oftime, or both) a default tmder any
Legal Requirement or result in the creation or imposition of any lien
1
charge or encwnbrance of any
nature whatsoever .upon any of Borrower's property or assets, except as contemplated by the
provisions of the Loan Documents. The Loan Documents constitute the legal, valid and binding
obligations ofBorrower and others obligated uuderthe tenus of the Loan Docwnentst in accordance
with their respective tenns, and Borrower has full and lawful authority to bargaln, grant, sell,
mortgage, assign, transfer and convey all of the Property as set forth in the Dzed of Trust.
3.3 infotmntionSuppliedbyBorrowct. Allinformation,reports,papersanddatagiven
to Lender by Borrower or its autltorized agents with respect to Borrower or others obligated under
the terms of the Loan Documents or the Property are accurate, complete and correct in all material
respects and do not omit any fact the inclusion of which-is necessaty to prevent the facts contained
therein from being materially misleading. In addition) Borrower's Financial Statements heretofore
7
22
delivered to Lender, taken as a whole, are true, complete and correct in all material respects, have
been prepared in accordance with generally accepted accounting princi pies consistently applied, and
fairly present the respective financial conditions and results of operation of the subjects thereof as
of the respective dates thereof, a whole. No material adverse change has occurred since the
respectlve dates thereof and no material borrowings have been made by Borrower since the date
tl1ereof other than tho borrowings contemplated hereby or approved in writing by Lender.
3.4 Compliance with Laws. The use ofthe Property and Improvements comply with
all applicable zoning ordinances and restrictive covenants affecting the Property and Improvements
and all other Legal Requirements.
3,5 Licenses and Penults. Borrower has obtained from each Governmental Authority
alllicenses
1
.pennits
1
authorizations, consents and approvals necessruy the use of the Property.
. 3.6 No Defaults. Borrower is not in default illlder any of Ute Loan Documents, and no
event has occurred which by notlee, the passage of limo or othcr.vlsc would constitute an Event of
Defa1dt under any of the Loan Documents. Borrower Is not In default in the payment.of any
indebtedness for borrowed money or wtder the terms and provisions of any agreement or instnunent
evidencing any such To the best ofBorrowet's knowledge, Borrower is not in default
\vllh respect to any order, writ, h\iunction, decree or demand of any court or of any other requirement
of a Governmental Authority,
3.7 Liens on the Property. Borrower has not made any contract or arrangement of any
kind, which has given rise to (or fl>e performance ofwhich by the other party thereto wo1ild give rise
to) a lien or claim of lien on the Property or otl1er collateral covered by the Loan Doemnents.
3.8 Completell1formntiou. To the bestofBotrower's knowledge, no representation or
warranty qfBorrower contained in any of the Loan Documents, and no statement contained 1n ?flY
certificateJ schedule, list, financial statement or other instrwnent furnished to Lender by or on behalf
of Borrower contains, or will contain, any untrue statementofaniatedal fact, or omits, onvlll omit,
to state a material fact necessary to make the statements contained herein or therein not misleading.
3.9 Pnymcnt of Taxes. Borrower has filed all federal, state, county, municipal and city
income and other tax rch1tt1S and reports required to have been filed by Borrower, and has paid all
taxes wpich have become due pursuant to such returns or pursuant to any received by
them, and Borrower does not know of any basis for any add.itlonal assessment in respect of any such
taxes. Borrower has paid or will pay in full all swns lawfully o\vlng or claimed for labor, material,
supplies, personal property (whether or not constitntlng a Fixture hereunder) and services of every
kind and character used, furnished or installed in the Property and no claim for same currently exists
o.r ,v{ll be permitted to become past due.
3.10 Legal Proceedings, There are no material actions, suits, or proceedings pending or,
to Borrower's kno}vledge, \vlthout any duty of independent investigation, threatened in any court or
before or by any Governmental Authority against or affecting Borrower, or the Property, or Involving
U1e validity, enforceability, or priority of any oftl>e Loan Documents, at law or in equity.
3.11 Title to the Prope1ty, Borrower lave good and indefeasible title to flte Land and the
Property, free and clear of any liensJ- charges, encumbrances, security interests and adverse claims
whatsoever, subject only to the exceptions and encumbrances set forth in the Title Insurance,
The representations and warranties contained in this Article ill shall survive until such time
as Borrower bas repaid the Loan in full.
ARTICLE4
COVENANTS AND AGREEMENTS OF BORROWER'
Borrower hereby covenants and agrees \vlth Lender thatit will do, sud ifnecessarywlll CS\\Se
to be done, or arrange to be done, each and all of the follo\vlng:
8
22
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4,1 Compliance with Governmental Requirements, Borrower shall timely comply
with all Govenunental Requirements and deliver to Lender evidence tl1ereof. Borrower assumes full
responsibility for the compliance of the Property with all Governmental Requirements and with
sow1d building and engineering practices and, notwithstanding any approvals by Lender, Lender shall
have no obligations or responsibility whatsoever for any matter incident to the Property,
4.2 Taxes. Existence, Regulations and Property. Borrower shall at all times (i) pay
when due all taxes and governmental charges of every kind upon it or against its income, profits, the
Property or the Project; (ii) do all things necessary to preserve its qualifications, rights and franchises
in all jurisdictioqs where such qualification Is necessary and/or desirable; (iii) comply with ail
applicable Legal Requirements with respect to the conduct of its business and tl1e ownership of the
Property and the Project; (iv) cause the Property to be protected, maintained and kept in good repair
and make all replacements and additions to its property as may be reasonably necessary to conduct
its business properly and efficiently; and (v) provldeLenderwithln thirty (30) days following the due
date thereofwith tax certificates or other evidence satisfactory to Lender demonstrating that all taxes
attributable to the Property and Project have been paid when due,
4.3 Correctlon of Defects and Encroaclnueufs. Borrower shall correct or cause to be
corrected (a) any matcrlal defect inthe bnprovcments, and (b) any encroachment by any part of the
materia! bnprovements or any oU1er structure located on the Property on any building set-backline,
4.4 Inspection of the Property. Borrower shall petmit Lender, anY Governmental
Authority, and their agents and representatives, to enter upon the Property for the purpose of
inspection of the Property at all reasonable times,
4.5 'Notices by Governmental Authorities: Notice of Fire and Casualty Losses.
Borrower shall timely comply with and promptly furnish to Lender true and complete copies of any
of)icial notice or claim by any Govenunental Authority pertaining to the Property. Borrower shall
promptly notify Lender of any fire or other casualty or any notice oftaking or eminent domain action
, or proceeding affecting the Property,
4.6 Costs ~ n d Expenses. Borrower shall pay when due all reasonable costs and expenses
required by this L<>an Agreement, including, without limitation, (a) all taxes and assessments
applicable to the Property, (b) all fees for filing orrecording the Loan Documents, (c) ail fees and
commissions ]awfully due to brokers, salesmen, and agents 1n colUlection with -the LOan or the
Property pursuant to agreements by or on behalf of Borrower, (d) all reasonable fees and expenses
of cow!Scl to Lender, (e) all title insurance and title examination charges, including premiums for
the Title Insurance, (f) all survey costs and expenses, Including the cost of the Survey, (g) all
premiums for the Insurance incurred by Lender In connection with the consummation of the
transactions contemplated by this I.<> an Agreement, and (h) all appraisal fees for appraisal of all or
any portion oftl1e Property.
4.7 Additlonnl Acts, In addition to the acts required herein and contemplated to be
perfonned, executed and/or delivered by Borrower, Borrower hereby agrees, at any time, and from
time to tfme, to perform, exeoute and/or deliver to Lender, any and all such further acts, additional
instruments, or further assurances otherwise consistent with the Loan Documents as Lender may
detennine to be, in its reasonable discretion, netessary or proper .
4.8 Inspection of Books. Recol'ds nnd Assets. Borrower shall at all iimes keep proper
books and records in a manner reasonably satisfactory to Lender and in aeoordance viith GAAP, and
shall permit Lender, at all reasonable times, to examine and copy such books and records,
4.9 No Liability of Lender. Lender shall have no liabil!ty, obligation, orresponsibility
whatsoever with respect to the operation of the l!nprovements except to advance the Loan as stated
herein.
4.10 Defense of Actions. After providing Borrowernotice thereof, Lender may (but shall
not be obligated to) commence, appear in, or defend any action or proceeding purporting to affect
the I.<> an, the Property, or the respective rights and obligations of Lender and Borrower pursuant to
this L<>rul Agreement. Lender runy (but shall not be obligated to) pay all necessary expenses,
'9
22
including reasonable attorneys' fees and expenses incurred in connection witl1 such proceedings or
actions, which Borrower agrees to repay to Lender upon demand.
4.11 Prohibition on Assignment. Borrower shall not assign or encumber any interest of
Bm:rower hereunder nor sell, tnmsfer or convey the Property or any part thereof without the prior
written consent ofLender, which consent shall be given or withheld in the sole discretion ofLender,
4,12 Payment of Claims. Borrower shall promptly pay or cause to be paid when due all
costs and expenses incurred in connection with ihe Property and tl1e operation oftl1e Improvements,
and shall keep the Property free and clear of any liens, charges, or claims other than tho
lien of the Peed of Trust and other liens approved in writing by Lender and liens then being
contested by Borrower as herein permitted,
4.13 Restrictions nnd Encumbrances. Borrower $hall not impose any restrictive
whichconsent
shall be give11 or withheld i11 the sole discretion of Lender.
4.14 Insurance. Borrower shall obtain and maintain insurtmce upon and relating to the
Property in accordance with tl1e provisions ofSectiou1.18 of this Loan Agreement, In case ofloss,
Lender, at its option, shall be entitled to receive and retain the proceeds oftl1e Insurance Policies,
applying the same upon the Indebtedness secured hereby; provided, however, that Lender will, if
requested to do so by Borrower, make the proceeds of such insurance available, in nccordanco with
the provisions of the Peed of Trust, to Borrower to repair or reconslruct the Project if the Loan is
not then in default. Lender shall have the right, but not the obligation, to make,premium payments,
at Borrower's expense, to prevent any cancellation, endorsement, alteratlon or reissuance, and such
payments shall be accepted by the insurer to prevent same.
4.15 Security, Borrower acknowledges and agrees that tl1e Note and the Loan shall be
seemed by a frrst and prior security interest In the items of security as in tl1e Loan
Documents including, without limitation, theAssigrunentofLeases and Rents and the Deed ofT rust.
4.16 Mergers. Consolidation and Dispositions and Acquisitions of Assets. Borrower
shall net, in any single tnmsaction or series of transactions, directly or indirectly: (a) liquidate or
dissolve; (b) be a party to any merger or consolidation; (c) sell, convey or lease all or any substantial
part of its assets; or (d) acquire all or substantially all of the assets of any individual or entity, or any
shares of stock or similar interest in any other entity.
4.17 At all times during the tenu of !lie Note,Borrow;r shall, on
amonthiy basis, apply seventy-five percent (75.0%) of all Cash Flow toward the payment obligations
ofBorrower under the Note.
4.18 Ffnanclal Statements. Borrower shall provide to Lender:(!) copies ofllorrovier's
annual Pimmcial Statements on or before ninety (90) caleridar days following the end of each fiscal
year during the tcnu oftl1e Note; (ii) cause Guarantor to provide copies Of its Financial Statements
on or before ninety (90) calendar days following the end of each calendar year; (ili) copies of
Borrower's and Guarantor's federal income tax returns on or before thirty (30) calendar days
following the filing of such returns; and (lv) sueh other financial information and data ofBorrower,
and/or Guarantor as Lender may request,
ARTICLES
RIGHTS AND REMEDIES OF LENDER
5,1 Rights ofLender,
5.1.1 Upon the occurrence of an Event of Pefhuit and dl1Iing the continuation
thereof, Lender shall have the right, but not the obligation, in addition to any other right or remedy
of Lender, in its or in the name of Borrower, to enter lnto possession of the Property, and
to employ wa\ehmen and other safeg<tards to protect the Property.
10
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. of Borrower in the possession of Lender, which right is hereby granted
5.1.3 Borrower hereby irrevocably appoints Lender as Borrower's aomey-in-fac4
with full power otsubstltutlon, and in the name of Borrower, if Lender elects to do so, upon the
oe<urrence of an Event of Default and dtuing the continuation thereof, to (i) endorse the name of
Borrower on any checks or drafts representing proceeds of the Insurance policies or instruments
payable to Borrower witluespeet to the Property, (ii) prosecute or defend any action or proceeding
incident to the Property, and (iii) perform or cause to be performed any and all work and labor
necessary to complete the Improvements in accordance with the Plans and Specifications. Lender
shall have no obligation to undertake any of the foregoing actions, and if Lender should do so, it
shall have no liability to Borrower for the sufficiency or adequacy of any such actions taken by
Lender.
5.2 Acceleration. Upon the oe<urrence of an Event of Default and during the
continuation thereof, Lender may, at its option, declare the Loan innnediately due and payable
without notice of any kind.
5.3 Cessatlon of Lender's Obligations. Upon the occurrence of an Event ofDefault
and during the continuation ti1ereof, all obligations ofLender heretmdershall, at Lender's option, be
inmtediately suspended.
5.4 Funds of Lender. Any funds of Lender used for any purpose referred to in tltis
Article 5 shall constitute advances secured by the Loeu Docwnents and shall bear interest at the rate
specified in the Note to be applicable after default thereunder.
5.5 No Waiver or Exhaustion, No waiver by Lender of any of its rights or remedies
hereunder, in 'the Loan Documents) or otherwise, shall be considered a waiver of any other or
subsequent dght or remedy ofLenderj no delay or omission in the exercise or enforcement by Lender
of any or remedies shall ever be construed as a waiver of any right or remedy of Lender; and
no exeroise or enforcement of any such rights or remedies shall ever be held to exhaust any right or
remedy of Lender.
ARTICLE6
MISCELLANEOUS
6,1 Notices, All notices, demeuds, requests, and other communications required or
pemtied hereunder shall be in writing and shall be deemed to have been given when presented by
hand delivery, faeshnile, overnight delivery or deposited in a regularly maintained receptacle for the
United States P.ostal Service) postage prepaid, registered or certified, return receipt requested,
addressed to Borrower or LenderJ as the case may be, at the respe<:tive addresses set forth on the first
page of this Loan Agreement, or such other address as Borrower or Lender may from time to time
designate by written notice to the other as herein required. Notice deposited in the mail in the
manner herein above described shall be effective, unless otherwise stated in this AgreementJ on the
date on which it is received or attempted to be delivered. Notice glvenin any other memter shall be
effective only if and when received by the party to be notified.
6,2 Modifications, No provision of this Loan Agreement or the other Loan Documents
may be modified, waived, or terminated except by instrument in writing executed by the party
against whom a modification, waiver, or tennlnation is sought to be enforced,
6,3 Severability. In ease any of the provisions of the Loeu Agreement shall for any
reason be held to be invalid, illegal, oruuenfore<ablo, such invalidity, illegality, orunenforceability
shall not affect any other provision hereof, and this Loan Agreement shall be construed as if such
invalid, illegal, or unenforceable provision had never been contained herein.
6.4 Election of Remedies. Lender shall have all of the rights and remedies granted in
the Loan Docwncnts and available at law or in equity, and Utesesarne rights and remediesshall be
II
22
cumulative and may be pursued separately, successively, or concunently against Borrower, or any
property governed under the Loan Documents at the sole discretion of Lender. The exercise of, or
failure to exercise, any of the same shall not constitute a waiver or release thereof or of any other
right or remedy, and the same shall be
6.5 Controlling Agreement, All agreements benveen Borrower and Lender, whether
now existing or hereafter arising and whether written or oral, are hereby limited so that in no event
shall the interest paid, or agreed to be paid, to Louder for the usc, forbearance, or detention oftlie
money to be loaned pursuant to this Loan Agreement, or for the performance or payment of any
covenant or obligation contained herein, exceed the maximum amount permissible under applicable
law. In the event the maturity of the Note is accelerated by the holder thereof for any reason, or in
the event ofvoluntfll}' prepayment by BoiTower, then earned interest may never include more than
the maximum amount permissible w1der applicable law, computed from the date of cacli advance
of Loan proceeds Wltil maturity Or prepayment, and any unearned interest In excess of the maximum
amount permissible under applicable law shall be canceled automatically and, if theretofore paid,
shall be refunded to Borrower or credited on the principal amo1mt owing on the Note, If from any
whatsoever fulfillment of any provision hereof or of any other document evidencing,
securing, or pertaining to tl].e Loan, at the time perfonnance of such provision shall be due, shall
Involve transcending the limit ofvalidity prescribed by law, tl1en tl1e obligation to be fulfilled shall
be reduced to the limit of such validity; and if from any S\!Ch circumstances Lender shall everreceive
anything
0
fvalue deemed Interest \nlder applicable la\v which would exceed Interest at tho highest
lawful rate, the excessive Interest shall be applied to the reduction of the principal amount owing.
6.6 An.nlicableLaw. This Loan Agreement and tl1eLoan Documents are being executed
and delivered in tl10 State of Texas and shall be governed by and construed in acco,dance with the
laws of the State of Texas and the laws of the United States applicable to transactions within such
state.Wlless the laws of anotl1er state require the application of the laws of uch state. Borrower
hereby irrevocably agrees that any legal proceeding against Lender arising out of or in connection
with this Agreement, or the otl1er Loan Documents, shall be brought in the District Courts ofBexar
County, Texas, or. in the United States District Court for the Western blstrict ofTexas, San Antonio
Division.
6.7 Usury Not Intended; Refund of Any Excess Payments, It is the intent of the
parties In the execution and performance of this Agreement to contract in strict compliance with the
uswy laws of the State of Texas and the United States of America from time to time in effect. In
furtherance thereof, Lender and Borrower stipulate and agree that no1ie of the terms and provisions
contained in this Agreement or the other Loan Documents shall ever be construea to create atontract
to pay for the use, forbearance or detention of money with interest at a rote in excess of the Higllest
Lawful Rate and that for purposes bereof"interest" shall Include the aggregate of all charges which
consHtute interest under such laws that are contracted for, reservedJ 1aken, charged or received \Ulder
this Agreement. In determining whether or not the interest paid or payable, under any specific
contingency, exceeds the Highest Lawful Rate, Borrower andLender shall, to the maximum extent
permitted under applicable law (a) treat all Loans as but a single extension of credit (and Borrower
and Lender agree that such is the case and that provision herein for multiple Loans and Notes Is .for
convenience only), (b) characterize any non-principal payment as an expense, fee or premium rather
than as interest, (c) exclude voluntary prepayments and the effects thereof, and (d) "spread" the total
amount of Interest throughout tl1e entire contemplated term of the Loans. The provisions of this
paragraph shall s:ontrol over all otlier provisions of the Loan Documents which may be in apparent
conflict herewith. Lender and Borrower agree that Chapter 15 of the Texas Credit Code shall not
apply to this Agreement or the Note.
. .
6.8 Indemnification. llORilOWERAGREESTOlNDEMNIFY'
1
l>::EFEND AND HOLD LENDER
HAlt'MLESSll'ROMAND AGAINST ANY AND ALLLOSS
1
LTAJJJLITI', OllLIGA.TJON, DAMAG:K,PENALTY,
JUDGMENT, CLAIM, DEFICIENcY AND E>..'PENSE (INCLUDING, WITHOUT LIMITATION, INTEJrEST
1
PENALTIES, ATI'ORNEYS' FEES AND AMOUNTS PA.ID IN SETI'LEI\1KNT) 1'0 WBICJI LENDER MAY
BECOME SUBJECT ARISING OUT OF OR BASED UPON TilE LoAN DOCUMEN'(S OR ANY LOAN,
EXCEPT TO TilE EXTENT CAUSED BY ANY FAULT OR NEGLIGENCE OF LENDER,
6.9 No Waiver, No waiverofanyEventofDefault shall be deemed to be a waiver of
any other Event of Default. No failure to exercise or delay in exercising any right or power under
any Loan Document sha1l operate as a waiver thereof, nor sha1! any single or partial exercise of any
12
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such right or power preclude any further or other exercise thereof or tl1e exercise of any other right
or power. No amendment, modification or waiver of any Loan Document shall be effecHve unless
the same Js in writing and signed by the person or entity against whom such amendment is SO\Jght
to he enforced, No notice to or demand on Borrower or any other person shall entitled Borrower or
any other person or entity to any other or further notice or demand in similar or other circumstances.
6.10 .Survival: Parties Bound. All representations, warranties, covenants and agreementS
made by or on behalf of Borrower in connection herewlthshall survive the execution and delivery
of the Loan Documents, and shall bind Borrower and its successors, trustees, receivers and asslgns
and inure to the benefit of the successors and assigns of Lender, provided that the undertaking of
Lender hereunder to make Loans to Borrower shall not inure to the benefit of any successor or assign
of Borrower. The tenn of .this Agreement shall he until the fiual maturity 9f tl1e Note and the
payment of all amounts duo nnder the Loan Documents.
6.11 Expenses, Any provision to the contrary notwithstanding, and whether or not the
transactions contemplated by !Ius Agreement shall be consummated, Borrower shall pay on demand
all reasonable out-of-pocket expenses (including, without limitation, the reasonable fees and
expenses of counsel for Lender) in connection with the negotiation, preparation} execution) filing,
rceording, refiling, re-recordh1g, modification, supplemcnth1g and waiver of the Loan Documents
and the making, servicing and collection ofthoLoan, Without lhnitation oftl1e foregoing, Borrower
shall pay all costs and expenses and rehnburse Lender for any and all reasonable expenditures of
every character reasonably incurred or expended from time to time, regardless of whether or not a
default shall have occurred, inconnection with Lenders evaluating, monitcriug, administrating and
protecting the Property, and all reasonable costs and exponscnelating to Lenders exercising any of
its rights and remedies hereunder or at law, including, without limitation, all appraisal (initial or
reappraisal) fees, consulting fees and commissions, fees incident to security interest, lien and other
title searches
1
and reports, escrow fees, attorneys' fees, legal expenses,.court costs, auctioneer fees
and expenses, ot11er fees and expenses incurred in connection with liquidation or sale of the Property
and all other professional fees. Any amount to he paid hereunder by Borrower to Lender shall be
a demand obHgation owing by Borrower to Lender and, to the extent net prohibited' by applicable
law, shall bear interest from tl1e date of notice by Lender to Borrower of such expenditure until paid
at the Highest Lewful Rate of interest. The obligations of Borrower under this and the following
section shall survive the tenninatlon of this Agreement and/or the payment of the Note,
6.12 Arbitration, Borrower and Lender further ag,rco as follows:
6.12.1 Any arbitrable dispute (as defined in Section 6.12.2 below) shall be settled
by arbitration, in accordancewitl1 U1e Commercia! Arbitration Rules, then obtaining, of the American
Arbitration Association. Any 'arbitration hereunder shall be before at least three arbitrators
associated with the American Arbitration Association and selected in accordance with the
CommerclaiArbltratlonrnlesoftheAmerioanArbitrationAssoeiation. Theawardofthearbltrators,
or of a majority of them, shall be fmal, and judgment upon the award rendered may be entered into
in any court, state or federal, havingjurisdtotion,
6.12.2 "Arbitrable disputes" include any controversy or claim betwcelitlle.parties
iilcluding claim based on contract, tort, or statute
1
arising out of or relating to the transaction
evidenced by the Notes or any other proposed or actual loan or extension of credit, all past, present
and future agreements involving tl1e parties, any transactions contemplated hereby, and Rll)' aspect
of the past, present or future relationship of the parties,
6.12.3 Depositions may be taken and otl1er discovery obtained in any arbitration under
this Agreement.
6.12.4 Forpllrposesofthis provision,
11
the partles
11
means and
each of them, and all persoru and entitles signing this Agreement or any ofthe oU1er agreements,
security instnuncuts and/or guarantees executed heretofore or contemPoraneously with. and as part
of the sRltle transaction with the Notes. '
1
The parties
11
shall also include individual officers and
employees of the signators of those documents.
6. 12.5 The parties shall have the right to invoke self-help remedies (such as set-off,
notification of account debtors, seizure and/or foreclosure of collateral, and non-judicial sale of
personal Jlroperty and real property collateral) and/or ancillary or provisionaljudicial remedies ( sueh
as garnishment, attachment, specific receiver, injunction, or restraining order, and
13
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. ,
sequestration) before, during; 'or after any arbitration, TI1e parties neoo not await the outcome ofU1e
arbitration before using self-help or provisional reme<lies. Use of selfheip or ancillary and/or
provisional remedies shall not operate as a waiver of either party's right or compel arbitration.
6. 12.6 Any aggrieved party shall serve a written notice of intention to arbitrate to any
and all opposing parties and to au American Arbitration Association office w1Ulln the State ofTexas
within one hw1dre<l eighty (180) days after dispute has arisen, A dispute is deemed to have arisen
upon receipt of a written demand or service ofjudicial process. Failure to serve a notice of intention
to arbitrate within the time speoifie<labove shall be deeme<l a waiver of the aggrieve<! party's right
'to compel arbitration of such claim, Such notice of intention to arbitrate may be infom1al and need
not comply with Rule 6 ofU1e American Arbitration Association, The parties agree thatlegalaction
regarding this Agreement and any liabilities hereunder shall either be brought by arbitration, as
described herein, or by judicial proceedings, but shall not be pursued in different Qr alternative
forums. The issue of waiver pursuant to this paragraph is an arbitrable issue.
6.12.7 Any arbitrator selecte<l shall be knowledgeab1eln the subject matter of the
dispute, Qualified retired judges shall be selected whenever possible through panels maintained by
the American Arbitration Association. EaehofBorrower(s) (whether one or more) and Lender shall
pay an equal share of the arbitrators' fees.
6.12.8 All statutes of limitations which would otherwise be applicable shall apply
to any arbitration proceeding hereunder,
6.12.9 In any arbitration proceeding subject to these provisions, the arbitrators, or
a majority of them, are speeifically empowered to deeide (by documents only, or with a hearing at
the arbitrators' sole discretion) pre-hearing motions which are substantially similar to prchearbtg
motions to dismiss and motions for summary adjudication.
6.12.10 The provisions of this section shall surviveanytennination
1
amendment, or
expiration of the Agreement ht which this section is containe<l, unless all the parties otherwise
expressly agree In writing.
6.12.11 The parties acknowledge that tl1e Notes evidence a transaetlon involving
'interstate commerce in ihatloan funds provided W1der the Notes are derived from interstate financial
markets. 'fheFederal Arbitration Act shall govern the interpretation, enforcement and proceedh>gs
purnuant to the arbitration claose in the Note-s.
6. 12.12 The arbitrators, or a rn'\iority of them, shall award attorney's fees and costs
to the prevailing party pursuant to the tenns of this Agreement.
6.12.13 Venue of any arbitration proceeding hereunder will be in Bexar C<lunty,
Texas.
6,13 Entire Agreement. This Agreemeni embodies the entire agreement between
Borrower and Lender and supersedes ail prior proposals, agreements and understandings relating to
the subjeet matter hereof.
6.14 Seye"rablJity, If any provision of any Loan Documents shall be invalid, illegal or
unenforceable in any respeetunder any appllcablc law, the validity, legality and enforceability of the
remaining provisions shall be affected or impaired thereby.
THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUSORSUBSEQUENTORALAGREEMENTSOFTHEPARTrnS.THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
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EXECUTED as of the daterirst stated above.
LENDER:
International Bank of Commerce,
a Texas banldng nssoclatlon

....... =<--------
BORROWER:
Ailed, Ltd., a Texas Ilmited partnership
By: Delta Produce Marl<ellng, Inc.,
R TeXAS C0!1Jotation
Ibis _!I_ day of
Agreed and Accepted
December, 2005.
Delta Produce, Ltd.,
a Texas limited partnership
By: WSJ Produce, LLC,
a Texas Ilmited Jlabi!Uy company,
Genera
Agreed and Accepted this
December, 2005,
Sfaci Produce, Ltd.,
a limited partnership
q
day of
By: STA Management, LLC,
a Texas limited liability company,
General
IS
... . .
22
EXHIBIT "A"
TRACT 1:
5,779 acres of land situated in the City of San Antonio, Bexar County, Texas,
being Lot 4, lot 5, Lot 6, Lot 7, Block 39, NCB 3698, Edgewood Addition,
Texas, and a portion or lot 53, Block 39, NCB 3696, las VIllas De Merida as
recorded ln Volume 9555, Page 72, Deed and Plat Records qf Boxar County,
Texas; said 5.779 acre traot of land being more particularly described by
mates and bounds as follows:
BEGINNING, at a found 1/2 Inch Iron rod on tho southerly right of way I ina of
Merida Street, for the northeasterly corner of said Lot 53f Block 39, same
being the northwesterly corner of said Lot 4:
THENCE, S 84' 22' 25" E, along tho southerly right of way line of Merida
Stroot, a distance of 706.56 feet to a found 1/2 Inch Iron rod on the
nord1\'lesterly right of way II ina of The Union Pacific Railroad;
THEf'lCE, Southwesterly, along the arc of a ourvo to the left having a radius
of 2065,00 feet, a central angle or 14" 22' 30", an arc length of 718.80 feet
and a chord bearing: S 4J8 18' 41" W, 716,91 feet, to a found 112 Inch Iron
rod;
THENCE, S 02' 54" W, continuing along the northwesterly right of. way line
of The Union Paclflo Rallraod, a distance of 183.64 feet to a set 1/2 Inch
Iron. rod on the northerly right of way line of Ceralvo Street for the
THENCE, N a'4
9
10' 44" y1, along the northerly right or way line of Ceralvo
Street, a dlstnnco or 35.88 foot to a sat 1/2 Inch Iron rod;
crossing said Lot 53
1
Block 39, the fC:IIm'flng courses;
n 05'" 34' 47" E, a distance of 90.14 feet to a sot 1/2 Inch Iron rod;
S 93 48' 09,. E, a dJsumco of 10.75 root to a set 1/2 Inch iron rod;
N 06"' 11' 51" E, a distance of 21.99 feet to a sat 1/2 Inch lrqn rod;
N 93 48' 09" W, a distance of 13.64 feat to a set 112 Inch Iron rod;
N 06" 11' 51" E, a of 23{1.44 feet toe set 1/2 Inch Iron rod;
N 83" 48' 09" W, a distance of 23.07 feat to set 1/2 Inch Iron rod;
N 06 11' 51" E, a distance of 18,94 feat to a set 1/2 Inch Iron rOO on thn northQrly
lfna of sa.ld Lot 53, Block 39i
THENCE, N 84" 25' 13" W, along the northerly line of said Lot 53, Block 39, a distance
of 120.01 feet to a found 112 inch iron rod for an interior corner of said lot
53, Block 39, sane baing the southl'tastorly oornor of said Lot 4;
THENCE, N 06" 14' 30u E, along the easterly line of said lot 53, Block 39, a distance
of 363,95 feet to tha POINT OF BEGINNING of herein described traot, and containing
5.779 acres of hnd, r.ore or less.
YRI\CT 2:
the East 8,31 feet of Lots 57 through 65, Block 40, f.;'C6 3699, all of lot 17, Block 40,
NCB 3099, Edgewood Addition, as r_ecordad in Volui!IB 1625, Page 317
1
Dead and Plat
Recordg of Bexar County, Texas, and all of Lot 18, Block 40, NCB 3699, H.A. Stauffer &
,H. G. Deviney Subdivision as recorded ln 3975, Page 223
1
Oeed and Plat Records
of County, Texas; said 2,069 aero tract of land being t10ra particularly
dascrlbad as follows:
BEGINNING, at a 1/2 Inch Iron rod set on the northerly right of 'tlA':J I Ina of L!arlda
Street, said 112 Inch Iron rod being N 84" 22' 25" W, 8.31 feet f'rors the southeast
tHENCE, N 06 14' 53u E, crossing said lots 57 through 65, Block 401 along the westerly
line of that certain tract of hmd conveyed to \fest Coast Produce Col!lpAnyt lno. HS
r69orded In Volw;e 7133, Page 9BB, Public !lecords of Bexar County, ToXlls, a
dhitancil of 364.13 feet to a 1/2 Inch Iron rod set;
THENCE, S a4 21' 53" E, alon,g the northerly tine of stlid Lot 57, at a distance of
8.31 feat passing the northeast corner of lot 57, same being the northwest corner of
lot 17, at a dlsunce. or 127,92 feat passing the northeast con1er of lot 17, sane
being the .northwest corner of sa ld lot 18, In at I a tota I dl$tanco of 247.52 faot to a
1/2 Inch Iron rod set for the northeast corner of said lot 18
1
sasa bolng the
nortl"fflest corner of lot 19;
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1
53 W, along tho boundary' llnu batween lot 18 and Lot 19, a
distance or 364,09 feet to a 1/2 Inch Iron rod set on the northerly right of way line
of Merida Street, For the southeast corner oF said Lot 18, being the southtr-est
corner of Lot 19;
THENCE, N 84" 22' 25 W, along the northerly right of' way line of Uerlda Street, at a
dlst.ance of 119.60 feet passln.g the south.vest comer of Lot 18, same being thlil
southeast corner of Lot 17, at a distance of 239,21 foet passing the souttw.-est corner
of Lot 17, sa111e being the southeast corner of lot 85, In all a total distance of
247,52 feet to the POINT OF of herein described tract, and containing 2.069
acres of land, Jr.ore or less.
TllACT 3:
lot 17, Block 3, New City Blook A36, Gillis Hood, Unit 2, an addition to the City of
San Antonio, County, Texas according to the or plat thereof, recorded In,
Voltme 9512, Page 91, Deed and Plat Records of Boxar County, Texas, SAV AND l:XCtPT
that portion conveyed to the City of Sa.n Antonio In Vol.uee 5202, Page 1204, Official
Publlo Records of Real Property of Bexar County, Texas:
TllACT 4:
CondoRinlua Unit 104, Building A, New City STock 16957, Post Oak In tho
City of San Antonio, Bexar County, Texas, .according to Declaration
recorded In 8, Page 159, and Volume s, Page 189, Records Bexar
County, tO!)ethcr with an undivided 4.52004519 porcent Interest In the coMon
elenents
22
EXIllBIT "B,
.;. \
REAL ESTATE LIEN NOTE
Anioun!: S1,300,000.00 Dato: DECEMBER ' 2005
Por vatuo received, tb" receipt of whio]l Is boroby !!Cknowledg<ld, the undersl&,ned, Jolntly 'overall)', (berelnafttr
11
Borrower\ whether one. or more) proinlse to pay to the oider of lNTERNATIONAL BANK OF COMMERCE (he.relnafter
41
Lender"), et 130 E. Travis, AntonJo, BeXar Cotmty, Texas the smn of :
ONE MILLION THREE HUNDRED THOUSAND AND N0/100 DOLLARS
Dollars (S 1
2
300,000.00 ), in le_gal money oflhe United of America, as lt
accrues on the outstehdlng )5rluclpal balance from date of advance Of such principal :until paid.
The interest be _________ percent per aon\llll; or
XX Tbelnterestrateshall be floating at 0. 25X percent per above the NEtf YORK '
PRIMR lt(\T8 (!'Primo .Rate") (described bolow) as lt fluctuates from tUne to tlme; provided,
however, that in no event shall rate o(!l_lterest (plus exwss tbereof. if <my) to be paid on tM unpaid
principal ofthls Note bo lo.ss 1bao annum. nor than maximum legal rate
aUowe&by law, The starting Interest rate on thls Note bo 7 257. percent per
annUIIl. The rate oflntcre.st duo hereunder shaU be recoy;Jpuled u oC tho of any change ln .the Primo Rate,
'fhe lNT:BRNATIONAi.BANK.OF PRJJ..ffi RA'fH shall mean tho annual lending rate- o(lnterest
annoWlctd from time to Utno by as Its prltno rate,
XX Tho NEW YORK PRDvm RA'fl$ shall mean theaWlUallendtng rate of interest announced from time to time by
1P Morga'n Chase & Co., New York, New York, as lts prlmo rate. ffthe New Yprk Prime Rate bas been as
tbo'Prlme Rate and lf, thereaftir, a prime rate Is not announced by JP Morgan Chaso &, Co., NowYork, NcwYork,
then tholntemlltional B;mk ofCommorcePrltno Rate, minus ono percent (l%)sh11U be tho PrlnleR.ate,
. . . .
Use of oltbcr of said Prime Rele.s is no! (o be trued as a wartarity ot tepll}senta.tton that are moro favorable. thp.n another
rate or index, that rotes on other loans or credit taollltles may not be ba.sed on otberindlces or that rates on loans to others may not bo
mad(!, below prime rate,
..
The Ltilere.slls ontt360.day factor applied on a 36Sdayyear, or a 3:66dayyear,ln tho. event that tho year is a leap year, on
the Unpaid prlncrpal to the ot eacl! installment p;dd and tho pa)'Illenl made. credited first to the discharge of the intere.sl and
the b11lance to the reduction of the prlnolpal. 'Provided. hOWVer) that in tho eve-nt the interest rate reaclie.s the maxlmum rate. allowed
by applJcable: law, satd maximUm legal rate shall be computed on a full ealend<lryui 36S/36S days or on a 3661366 day& ba$ls, in
the event that year ts a leap yeai, The interest charged and he coin contracted for willnl){. exceed tho D}axlmum allowed by law,
Matured unpaid. amounts will boar interest computed on year 3651365 dzys basis Or on a 3661366 days basls,ln the event
that the yeM is a leilp yur, at the hfghut legal tale bY Texas law, v.nle.s.:; Fedml Jaw allows a higher tntere.st rate,ln
which case, Borrower agrees to pay ihe rate allowed Qy Fedcri!l Jaw. If applicable law does not set a maximum rate of interest for
111atw1 \Ulpaid Ureti Borrower agree-s that the ruaxltnum rate for such $haU be eighteen percent (18%) P:r annum,
To theexlent allowed by law, as the bte payntent h!lrgo Ulls Agreement, Bank may in lis solo tf) increa.so. the interest
on !be prlnoJpal portion ot any payment amount is not re.ce{vfd by the piyment due date to the maxlm\11ll rate allowed by law,
computed on a full oaleniln year from tqepayment duo date udtU Or (:U), $heu1d PDY paynient not be Made within ten (10)
days Of the due date, require. Borrower to pay a one time '11110. charge" per latepa)'lllollt Juat to fivo percent (5%) ofthe'amowlf oftbe
past duo prlnoJpal and Interest ofsuh paYJllenf, wflh a"minlmum ofSlO.OO and a mrodmuni ofSI,SOO.OO per late payment. Tho "late
charge" may be assessed without shall be due and payable. This proviSion 1s lnapplfcablo if tho o\ltstanding
under !he Note Is accelerated. No lal\l ch11rge \Yiil be- assessed on any payment when lbo. only dollnquenoy is duo to late
charges on earllet payment 1111d !he p.a)"'Dlent i& otherwise a full payment.
the outstanding and uopa[d prlnolpal ofthls Note and aU and unpaid interest are payable as
Nnmber of :Payments Freqllenoy Amount ofPaynlenls Wbeu Payments are Due
SBB' 'ADDENDUM TO REAL ESTATE .LIEN NOTE AND BALLQDli RIDER ATTACHED HERETO Aifu INCORPORATED
HEREIN,
FinoiMa!Wi!yDate: DECEHBER 5, 2010
Lender ma), at Its dtswetion, adjust the amount ofperiodk payments describe;& above to- assure that the rem11infug payP:leuls will fully
amortize the prlne.lpal of this nole on the stale<! maturlty without any "Balloon" or unequal p11yment,
TillS OBLIGATION HAS "THE FOLLOWING DEMAND FEATURE:

accrued:and unp3id intere.st under th.ls Note, BorT(Iwer agre4s aud promises to p11y Linder all principal and all accrued IUld
unpa.ld ipteresl on $Uh prinQ!pal. No- not!ee of intent to aceeterato.sball be reqlllrid: of Lender and Borr.ower o.xpres.sly waives any right
intent to accelerate. The foregoing right tO for inlnledl2te payment ofthls Note, in or in part,
may be exercised by for inyreason whether-or not Borrower is in default hereunder s.n.d in advance of its
ma!Wity.
.,
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. the option gl:ven ItS the Lender io mature it, the Bo'nower lind ell parttes or hereaftei-personaUy llablehereon now agrelo and shall
pay an additional amount equal to reasonable and necessary attoOOey's fees andasso-oiale-d forllleetloo. Said attomey's fees and
costs of collection, on'c4:Uquidate.d and paid by LendM or othmYlse allowed by law, will bear interest at the rate- of interest appUed to
the: matured Nld past-dui principal balance ofth1s Note as tllle may c,hmg,o from Umo. to lime from .the date. due until
In the event any leg<!! action 'or procee.dii;g, by e.rblllali(!n or othenvlso, is tn conneeUop wilh ,the e-nforeimenl of, or
declaration of rights Uildor thls Note- andfor MY instrument orwrltten agreement required or delivered under or puisua.nt to the terms of
thls Note, andlor any controversy or olaim, whether sounding in contract, tort or Sl:tlule,Jegal or involving in anyway the
twanclng or the traosactlon(s), the subje{t ofthl& Note-, or ;my other proposed or actu31Joan or extension of the prevailing J>arty
be entitled lo recover reasonable and nece.ssary attorney's fees, cOsh: (inoludlng allocated costs for inhouse legal
services), cost$, expenses, expert witneSs- md C()sfs, an"d other nessary disbursements made ln connection with any such or
procuding, in lh0-11molWt detenn.fued by the faetfinder,
:Under, in its sole discretion rnd without obligation on Leudn to do may advanee and pay f.Unu on behalf and for the benefit of
Borrower f9r costs necessary for the protection and preserVation of the collaleral securing tbls Note and otbeT costs that may be
appropriate, in Lender'i 6"o1e dlscretfon, including but not tin)1ted to insurance premiums, ad valorem laxe.s, and attorney's fees, luly
sums whlch may be so paid out by Lender and all iums paid for iomrance premiums, afore.s11ld, lnoludlng tlte costs, expenses and
. aHome.y's fe-os paid in any sull affecling said property when necessary to protect the lien hereof shall bear from the dates of such
payments at the-interest rate applied to the matwed $11d pastd\le principal bala'nee Not., and shall be paid by Borrower to Lender
upon demand, at the same plac-e at which this Note. Is payable, and shall be deemed a part of the debt and recoverable as such In tsll
'
. ' . .
Borrower re.serve.s the tight to prepay, prior lomaturity, all <lr any part of the principal oflhls Note without penalty, apd fntetest shall
immediately cease on f!IlY amount liO prepaid. ,All prepayments applied to the last maturing lnstal!ments ofprincipa1
1
without
intenupting theregulu inllaUment payments,
Any $-ssumption. ifpennlfted by Mnder, by any <llher partnership; orgaoJutlon or any other en!lty without the
expre-ss written consent bfLender, not the for the payment oftWs Note.
In the event th-at the hereinafter described real Property is sol( conveye-d, or otherwise-disposed ofwithoul the prlorwrien consent of
tho Lendet
1
the mafurity of this Note may, at tlie option' oftbe!Ander, 00 accelerated eil:d Lender may immediately demand payment of
the then outstanding prlnolpal sum together with all aCUed and unpaid interest due ihereon,
. .
:Borrower 3nd Lender hereby expressly. aCknowledge and agree that in tho event ot a 4efault undir thi-s Note or uuOer i'IP-Y doumenl
executed by Borrower in connection w1th, or to secure the payntent of, thls Note.-( I) Lender shall not be req_ulrOO to comply with
3.0S(d) of the Texas Revlsed Partnershlp Act and (2.) Lender shall not be requlri to proe-e-id aS.ainst or exhaust the assets
of Borrower be tore pursulng any directly 11gainst one or of tho partners ofBorrower or the pr?perty of such partners .
ARlJITRATiffif,
BORROWER AND LENDltR !fURTHER AGREE AS FOLLOWS
(o)
(b)
()
ANY AND ALL CONTROVERSrES BETWEEN Tm< PARTIES, EXCEPT SUCH CLAIMS AND
Cj)N:rROVEBSII?S \VHICJI ARE CONSUMER RELATED AND lNYOLVE AN AGGRlWATE AMOUNT IN
CONTROVERSY OF LESS THAN TEN THOUSAND DOLLABS (810,000,00), SHALL llE RESOLVED BY
ARBITRATION IN ACCORDANCE WITH TH COMl'IERCIAL ABBITRATION RULES OF THE AlliER! CAN
ARBITRATION ASSOCIATION IN EFFECT AT THE TIME OF FILit!G; UNLESS THE COMMERCIAL
ARDITRATION RULES CONFLict WITH THIS PROV!SION, AND IN SUCH EVENT T!IE TERMS OF THIS
PROVISION SHA,LL CONTROL TO TliE EXTENT OF THE CONFLICT, NOTWITHSTANDING ANYTHING
CONTAINED lrEREm TO THE CONTRARY, SAVE AND EXCEnSUBPABAGRAPHS (k), (m), (o), (p), AND (s)
IiE}.lEIN, THOSE CONSUl'IER RELATED CLA!ll1S AND CONTROVERSIES INVOLVING AN AGGREGATE
AMOUNT OF LESS THAN TEN THOUSAND DOLLABS (810,000,00) SHALL lJE CONDUCTED IN
ACCORDANCE WITH TEll AMERICAN ABBITRATION ASSOCIATION RULES FOR THE RESOLUl'ION OF
CONSUMERRELATED DISPUTES OF LESS THAN TEN THOUSAND DOLLARS, ANY ARBITRATION
BllREUNDER SHALLlJE DEFOREATLEASTTHREE NEUTRALABBITRATORS ASSOCIATED Wl'fH THE
AliiEBICAN AABITRATION ASSOCIATION AND SELECTED IN ACCORDANCE WITH THE
ABBITRATIONRULES OFTHEAJ\IERICAN ARlJITRATION ASSOCIATION, FAILURE OF ANY ARBITRATOR
TO DISCLOSE ALL FACTS WHtcn MIGHT TO AN OBJECTIVE OBSERVER CR'Ef.TE A
IMPRESSION OF THE ARBITRATOR'S PARTIALITY, AND/OB MATERIAL ERRORS OF LAW SHALL BE
GROUNDS (IN ADDITION TO ALL OTHERS) FOR VACATUR OF .AN AWARD RENDERED PURSUANT TO
TillS .
THE AWARD OF THE ARJJI'fRATORS, 0\l A MAJORITY OF THEM, SHALL BE FINAL, AND JUDGMENT
UPON THE AWARD RENDERED BE ENTERED IN ANY COtiRT, STATE.OR FEDERAL; HAVING
JURISDICTION,"flll! ABDlTRATlON AWARD SHALL BE IN WRITING AND SPECiFY T)JE FACTUALAND
. LEGAL BASES FOR TEll AWARD. UPON THE REQUEST OF ANY PAnTY, TH& AWARD SHALL INCLUDE
FINDINGS OF FAcr AND CONCLUSIONS OfL!>;W ..
ARDITRABLE DISPUTES INCLUDE ANY AND ALL CONTROVERSiEs OR cLAWS BET\VEENTHEPARTIE;S
OF WHATEVER TYPE OR M:ANN!R, INCLUDING WITHOUT L!llllTAT10N, ANY CLAIM Al\ISING OUT OF
OR RELATING TO THIS NOTE, ALL PAST, PRESEN'f AND/OR FUTURE CREDIT FACILITIES AND/OR
INVOLVING TliE l'AUTIE$, ANY TRANSACTIONS BETIYEEN OR INVOLVING THE
l'ABTIES,AND/ORANYASPECT OF ANYPAST.OR PRESENT RELATlONSI!lPOFTHE PARTIES, WHETHER
BANKING OR OTHER\VISE, SPECIFICALLY INCLUDING ANY ALLEGED TORT COMMUTED BY ANY
).>ARTY.
22
'
m :: 'AcriVE PARTICIPATION IN PENDING Ln'iGATION miRING THE 360 DAY NoricEPERIOD, Wrr&THER
. AS PLAINT!l'l! OR DE,FENDANT, IS NOT A WAIVER OF THE RIGHTT.O COhiPELARDITRATION, ALL
. DISCOVEI\Y OlJ.TAINED IN TilE PENDIN<:I LiTIGATION MAY DE USEll IN ANY SUBSEQUENT
AlU/ITRA'I'ION PROCEElliNG,
(k)
(I)
(Ul)
(n)
(o)
(p) .
(q)
(r)
(s)
'THE PARTIES FURTHIIR AGREE TIIAT (I) NO ARBITilATION PROdttDING HEREU)IDER SIIALL BE
CERTJl?IED AS A CLASS ACTION OR PROCEED AS A CLASS ACTION, OR ON A BASIS INVOLVING CLATh!S
Bl\!JUGHT IN,A l'URPqRTED REPRJ>SENTATIVE CAPACITY ON BEHALF OF THE GENERAL PUBLiC,
OTHER CUsTOMERS oR POTENTIAL CUSTOMERS OR PERSONS SIMILARLY SITUATED AND Ql) NO
ARBiTRATION PROCEJ!DING lll!REUNDER SIIALL BE CONSOLIDATED WITH, OR JOINED IN ANY WAY
\VITH, ANY 6THER ARBITRATION PROCEEDING.
ANY ARBITRATOR SELECTED .SHALL BE KNOWLEDGEABLE IN THE SUBJECT MATTER OF THE
DISPUTE. EA,CH OF THE PAl\TIES SHALL PAY AN JIQUALSHARE OF THE ARBITRATION COSTS, FEES,
EXPENSES, AND OF THE ARBITRATOl\S' FEts, COSTS AND EXPENSES,
ALL sTATUTES OFLThUTATIONS WHICH WOULll OTHERWISE BE APPLICABLE sHALL APPLY TO ANY
A1m ALL CLAIJ\1S AsSERTED IN ANY ARBITRATION PROCEEDING HEREUNDER AND THE
COMMENCEMENT OF ANY ARBITRATION PROCEElliNGTOLLS SUCH STATUTES OF LIMITATIONS.
IN ANY ARBITRATIONPROCEEDINGSUBJECTTO THIS PROVISION, THE ARBITRATORS, OR
OFTHEM; .ARE SPECIFICALLY TO DECIDE (BY DOCUMENTS ONLY, OR WITH A HEARING,
AT THE ARBITRATORS' SOLE DISCRETION) PREHIIARING MOTIONS WHICH ARE SUBSTANTIALLY
STh!ILAR TO PRE-HEARING MOTIONS TO DISMJSS AND MOTIONS FOR SUM:MARY ADJUDICATION,
THIS ARBITRATION PROVISION SHALL SURVIVE ANY AMENDMENT, OR EXPIRATION
OF THE IN W!llCH TlUS PROVISION IS CONTAINED, UNLESS ALL OF THE PARTIES
OTHERWIS EXPRESSLY AGREE IN \VRITING.
THE PARTIES ACKNOWLEllGE THAt TlllS AGREEMENt EVIDENCES A TRANSACTION INVOLVING
INTERSTATE COMMERCE. TilE FEDERAL ARBITRATION ACT SHALL GOVERN tHE INTERPRETATION,
ENFORCEMENT, AND PROCEEDINGS PURSUANT TO TllARBITRATION CLAUSE OFTIDS AGREEMENT,
. 1'HEARBITRATORS, ORA MAJORITY OF THEM, SHALL AWARD ATTORNEY'S FEES AND cosrs TO THE
Pl\EVA!LlNG PAl!TY PURSUANT TO THE TERM'S OF THIS AGREEMENT,
NEITHER THE PARTI;ES NOR 'THE ARBITRATORS MAY lliSCLOSE THE EXISTENCE, CONTENT, OR
RESULTS OF ANY ARBITRATION HEREUNDER WITHOUT PRIOR WRITTEN CONSENT OF ALL PARTIES
AND/OR COURT ORDER, . .
VENUE OF ANY ARBITRATION PROCEEDING IIEREimnER SlJAI-LBE IN BEXAR COUNTY, TEXAS.
Tllll TERM LENDER INCLUDES ANY OTHER OWNER AND HOLDER OF THIS NOTE AND THE!R RESPECTIVE
SUCCESSORS AND ASSIGNS. TillS NOTE IS GOVERNED BY APPLICABLE TEXAS LAW, EXCEPT TO THE EXTENT THE
USURY LAWS OF TBXAS ARB PREBMPTBD BY PBDEI\ALLAW, IN WIUCH CASU. SUCH I'EDERAL LAW SHALL APPLY.
VllNtlll OF ALLACTIONS ON TillS NOTE. SHALLLm IN llBXAI\ COUNTY, 'fBXAS, AND ALL OBLIGATIONS 1\BQUIRED
. HBF,EIN ARl! PBRl'ORMAllLE IN BEXAR COUNTY, TBXAS.
,'
If loan proceeds are to be used primarily forpmonal, family or household use, the following ap]>ly.
. .
NOTICE TO CONSUMERS: UNDER TBXAS LAW IF YOU CONSENT TO THIS AGREEMENT YOU MAY llE SUBJECT TO A
FUTURE RA'fBAS !UGH AS 24% ANNUAL PBRCENTAGI! 1\ATll, OR TilE sTATE USURY CEILING, WHICHEVER IS LESS.
If this Note- is to be secured by a llen ou a located on the hereinafter descrlhi property, the following notice shall apply:
THE MAXIMUM INTEREST RATB SHALL NOT EXCEED TWENl:YFOUR PERCENT (24%) PER ANNUM, 01\ THE USURY
CEILING, WHICHEVER IS LESS,
. .
Payment hereof is secured by a vendot'.s llon retained in Deed Of even to the Bottower, and Is add!tlonaity setured by _a
Dud of1hlsf, Seeo.trHy Agreement aodPinanclog Statement of even date herewith, exe.euted"by the Borr<JWer tmdi<Jt Grantors thereofto
STEVE E. EDLUND , Trustee, \lpon the following described real property:
22
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ADDENDUM TO REALESTATELIENNOTE
Number of
Payments
I
(a) Fifty-nine (59)
(b) One (1)
Frequency
Monthly
Final Maturity Date: DECEMBER 5,2010 .
Amount of
Payments
Prlnoipal including
Interest. in the
amount of Eleven
Thousand Eight
Hundred Sixty
. seven and 22/100
Dollars
(Sl1,867.22) each.
All outstanding
principal and all
accrued, unpaid
Interest thereon
shall bo duo and
payable .
When J>avmenls
are Due.
Commenqlng
January 5, 2006,
and continuing
monthly on the
flfth (5") day of
each successive
calendar month
until and including
November 5, 2010.
On Final Maturity
Date.
This credit facility was evaluated, analyzed and ultimately priced based upon the entire
relationship between Borrower and Lender. Therefore, lfthore is (I) a material negative change In the
and/or other banking relationships between Borrower and Lender, or (ii) a material change tn the
financial condition, ownership, management 8-ndlor con1rol of the Borrower, which Lender reasonably
believes increases therisk-ofrepayment
1
then l&nder, in its sole and absolutedlscretion,mayincrease the
Interest rate charged In e<>nnection with this credit facility bpp to 1.00%; as it may float from time from
time (i.e. interest rate wilt increase to 1.25% above the New York Prime. Rate).
Executed this __ day ofDecember, 2005.
BORROWER;
Ailed, Ltd., a Texas limited partnership
By: Delta Produce Marketing, Inc.,
a Texas corporation, General Partner
By: --::-:-:-:-.-::-....,.,..,::----o:--:-.,.-:-
Waltor Scott Jenson, President
22
BALLOON RIDER
TillS LOAN IS PAYABLE IN FULL ON DECEMBER 5, 2010. YOU MUST REPA Y.THE
ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE.
THE BANK IS UNDER NO OBLIGATION TO REFINANCE THE LOAN. YOU WOULD,
THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTI-illR ASSETS YOU
MAY OWN, OR YOU WOULD HAVE 'TO FIND A LENDER, WHICH MAY BE THE
BANK YOU HAVE THIS LOAN WITH AT MATURITY. YOU MAY HAVE TO PAY
SOMEORALL THECLOSINGCOSTSNORMALLY ASSOCIATED \VITI{ A NEW LOAN
EVEN IF YOU OBTAIN REFINANCING FROM THE SAME BANK.
EXECUTED this __ day ofDeoember, 2005.
BORROWER:
Atlcd, Ltd,, a Texas limited parfnorsblp
Jly: Delta Produce Marl<eting, Inc,,
a Texas corporation, General Partner
By:
Wnlter Sc?tt Jensen, President
oh\t\JIC M t.W, r1d!",';P<f
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SECURITY
AGREEMENT
,.
The unden!goed Debtor, Owner of Cellateral, wMthor OM 'ot more, end Pfl'EBNll,T;Iffi@.L BlHjK OF r;oMMRRCB
no E TRAYIS SJ\N AN'fONIO. 'TJW.S 78205
{herefnafter a-aHOO Party"') enter Into this Sec:vriN Ag-reement and for gOO<J end '(Blvablo oOnslderatlorv the receipt of which le hereby
ecknowledglid
1
e"!'f agres as follows: , , .
SEC'OON h Creeth>rt of Security lnternt,
her.eby grtmU to Secured PartY a lfrsf and s:.:c!usfve llsn and .seoVfity /fiW$111 in ell of. tho pusona! property of Debtor, wherever loeated,
end now or hereefter acquired, ln<;lodlng the property deecrjbed In Section n of th!e SecuritY Agreement fthe to seeUre
end performijnce of thfllndebtedneu !described In Section !11 below)
SECnON II: Ot$orlptlon. of Co!laterel,
1, Tilt .securitY lntereit Is granted In the following collateral:
a. Describe the collateral and, as appUo.abl11, check boxenOO provide Jf\dleated below.
b.
'
0
E
F
SEE EXHIBIT "A" ATTACHED l!llRETO AND INCORPORATED HEREIN,
2
3
D
The above- {JO'Od.s are to become flxtvro.s ol\l (daaortbe real esteta; attach additional theat; If naed11dl
I ' '
I
D
TJ'\$ above timber 1s standing on: (desorlba re111 estuteJ addltlon1l speet, If
0. The above mlrwrele or the like Onol\.ld1ng oU and gael or accounts will be financed at the weH head or mine of well
or on: (duerlbe rval wate; ettich addltlona:l $heat. If ooeded)
.
lf b. 1, b.2, or b,3 above is checked, thl:s $eourlty Is to be flied for record In tha'.rea! estatll raoords, (The description of the
rea! e-state must be sufflclenUy ;pacific n to give 0?1l$tr\!<lllve noUce of a on the realty},
D
The Debtor do&& not have en Interest of recordJ the name of a racord owner of the real estat$lf
All arld for, accenkms, attiiQhmll_n!S, and other add!tlon.s 10
1
end !oo!s, and equipment \!Sed In
eOMectkm whh, the property; and ths and unborn, young of sn!me!s end pou!tl)',
All &!rn6er th$ above acquired by Debtor.
All proceedt, proQuots, and proOts of the cenateral are Coverage of products and for financing statement
purposes Is not to be constnHid as gM!lg Debtor ,any additional rights with rospect to the Collateral, an<fOabtor Is not authorlzad to
sail, lee.se, or otherwise transfer, fvmlsh under oontracts of service, rnai"'Ufacturo, proce&S, or assembls the Collateral, except In
IICO.Ordanoll wtth tha provisions ot this Security Agrument. Any slnets dascrlblng the CollaJera!, the rul astatq
1
or othllt
mattars are lncwporated In end made e part of this ln:ilrvment. '
2, Classify the bOI!aterlll urx!er ot' of the following lex_as flu,tnan And Commerce Coda ciBss.lflcatlorut
Consumer .Ooods
Equipment tboslnasc UU)
-Equipment (farm uul
PropertY

Farm Products
Gensrellntanglbles
Inventory
Chane! Psper
letterOfCredit R]$hta
Support Obligation-s
U$ns on Government
..
Dapo$lt AccoUnts
Commercial Tort Clshns
AgrlcultUtal Uens
Ot .Payment !ntanglblas and Prom}$$ory Notes
And extent oot llst11d above 3$ origin,! Pro-caeds and of !ha foregolrtg:
?age. 1 of '9
06/22/01
'
,,
' , I
Any UHil'l used In Tex&s And Cexie (th!l &fld defined Jri thl$ si Ay Agreement has-the meaning given to'th'e
term In the Code.
3, a II this block is O'heeked, thlt Is: a purehsse money tecurtiy Interest, end Debtor will us.e funds &dvaneed to purchase the Cof!aterel, or
Secured PartY may tflsburse furnl.s direct to the s_ener of the Col!atert!, and to purchase Jnsurlll'tl:e M tl\e CoUateral, To trn. extent
Debtor uses tl\e loan to porohue Collateral, Debtor's repaym&nt of 1M loan shell apply on a basis so that lha
pQrtloh Cit the Loan to s psrtleulllf Ita in of Col!ateral shall be paid In th& ctvono!ogleal order the Debtor pure. hued the
Collateral.
4, If any of the Co!Jateralls aecoums, give the locallon of the oil/es where the records collC8rn1ng th&m ara kept !If other thM Osbtor's
address shown abov&):
5, commerc!&.l Ton Q8lms, a subcategory of General Intangibles, means th<l Dllbtot'!l cfelm for
against __________ _
SECTION JU: iN&J:BTEDNESS
This aulgrunent and grant Is made to Secured Party to secure tM prompt sod unccndlllonel P<Wm&nt of, arn:J the first end exclwlve seourity
Interest hereby to Petty !ecurea the peymant end performanoe. of, tlw the. "lndebtodneu)l
My and 11aPllhles and/or obtlgatloM of Debtor, or any of the unduslgnad If more Wtn one, to Soouretl Peny, )o!ntly endtor
savereUy, end In any cepaclty,-whe\hll' as borrower, guarantor, or otherwlte, now orMreafter owlr.o, created sndtor end of
how ev!denned or arlslng, es to outstanding and Ullpald principal, accrued and unpaid Interest, attorneys' feeS, e<tllectlon costt, and A/1 other
sums owing by Oebtor, or any of the undersigned If more than one.. lncludlna bot r.ot llmltllrl tfl
.t.hat;. cett.ain .. Real.Estate Lien Notes of eyen date herewith executed Produce, L.P. a Tex
limited :arid made pavabte: to the order of Secured :Party in the original principal
andfvrtJ:erwlthoutllmltatlonto: sumsof and $l,OOO,QOO;oo, .
A. any rod all Indebtedness of:
B.
c.
o.
'
F.
G.
H.
I.
J.
K.
L
M.
N.
a.
P,
Of Jndebtedtii!SS l$ nol tol!lty of Debtor) or any of them H mora than ene, to Assignee, Jointly and/or end In tinY oapacltV.
whethet ss borrower
1
guarantor, or othetwlu, MW oc hereafter owloo, oreAted and/or atl$lng, end regardlel!s of how !lvfd"enoed or
erlslng, Including, without
any commerolelloen or lndebtedneu;
any tra<flt ce< or other consumer type of loan;
any lndebtedneu ralatii\Q to tMok/ng or uvlngs eccounte (overdrafts, feea,
&hV &Xperues tnourred In the protection or malntommce of the codaterAl seouting any of such llabDitles, loans, 81'1d ob!!getlons:
any expens'es lneutred In the of any indebtedness and/or obligation; q .
any letters of oredlt end/or lndebtedtll!U aflsJng out of, or edvaf\Q:ed to pay, letters of transactions;
any Jndebtedfless, however, evidenced, whether by promissory note, b<kkeep/1'1(1 checks, drafts t othtr
Items, or by any otlwr manner or form; , I
any other lndebtednen of Polbtor and/or of the per:oons ot enthles set forth In subperaQfeph A. above to any financial Institution
eftl!lated with lntetnetlOna! 9encsharas Corp(lutklfl, Jointly end/ot aaveral!y, Md In any whether as borrower, guetantor, or
otherwlse, now or herBaltet owln!l, oreated arKJJor arising, sod regardless of how evidenced or arl$}M;
any and all extensions, mOdif!cetlons, eubMitut!ons and./Gt rene.wab of any of the above described !ndebtednen1
any and a!l costs ifleuued by Secu;ed Party to obtain, preserve end enfore. thla Se.curfty Agl'lleme.nt, collect the Indebtedness, end
maintain and preserve the Collat&rel without limitation, all taxes, assessments, attorneys' too' end legal &J<Penees, and
of sale;
tho ule by Debtor end ihe purehese by Seoured Pany of Accounts;
the eele by Debtor and the purchase by Secured hrtY of Chattel Papar:_
the sale by Debtor and the purchue by Secured Party ot rayment tntenglb!es;
the" st>le by Oebtor end the puroha11e by Secured Pany of Prombsory Notfls; and
MY of tf foregoing that arhes after the filing of a petition ln bankruptcy by or .against Debtor under the Bankruptcy Code, even If
the obDgatlons do not aootue of the evtometlc &tay under Bankruptcy Code 362 or otherwise, '
T the extent 4Jiowed by lew, fGt hareot It Is Intended that the ltK!ebtednnslnofude all classes of lndebtedll&st, whether ev!det1ed
by notes, accounts, overdrafts, or otherwise, end whether direct Indirect of contingent; regardless Of etus, form {}f purpose and
lnolud!ng but not limited to, loans tor oonsumer, egrfcu!Me!, bvslness Qi personal purposes, .
The folegolng shall undar no clrcumstMoea ba Jlmltad to th& existence or non-ex!stonoe ol ccUateral for such. lndebudne.at, ot the typo of
covered thereby, The Jlldabterlness dou not lnc!ude amounts owad pursuant to a horn.utead loin.
Notices end other oommunloatlons to this Agreement shall Ia In wtltlng and sl\ell b1 effective only If da!lvered In person
Ssclited lf sent
SECTION lVI PSRFECTION CF SECURITY INT.ERESTS,
1. Fltfng Of Flnenclng Su.toment.
Ill Oebtot hereby euthorltu Seol.ll'G<I Party to file a Financing Stetement, .an An'landed Flnanclng Statement and a Continuation Financing
Statement (C<IIIectively tefer(ed to.u tha describing tha
!OJ Dabtor hereby e\Jihorites Securad Perty to ft!e a Financing Statement desorfb!ng any cr othor ttMUlfY liens held by
Secured Partv.
11111 SecUfed Party shell receive prior 1o the Cklsing en offlelal report from the Secretary of. State of each Po!latera! State, the Chief
ExeO\Itlve Olf!ce State, and the Debtor State u defined belcwl (the sos Reports') Jndfctlting tlult SeotHe4 P.arty's security
Interest le prior 10 all other seourlty lnteres.ts or l.lthar lnterasts reflected Jn tha report.
tlvl Seautad Party $hell receive Many time toUowlng the Closing an SQS Report Indicating that Seoured Party'S: eeauriw prior
an other aecur\ty Interests or otller Interests ronacuui In the report, ,
2, Ponus!on,
{IJ Debtor shall heve posses.slon of the Co!letera" except where- expressly otherWJn provkl&d In this Sacurlty or whtlra Secured
Pany choo.ses to Itt securlty Interest by only, 01ln.addltlon to the fUing of a Financing Statement.
IBc<IOO\\ - OG/22/01
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Oil Where coUater.alls lrt the poestlon \ /lh!rd partY; Oehtor wf!( Joln wlth.Seoured Party l ,'tJrylng the third party of Sacured Party's
secwfty Interest and obtaining a Agreement from the. third patty tt )$holding the fl' th! bentJflt of Secured Party,
s. Ag!eements:! wb! c.ooperate saoV!'ed PartY In 11 Control Agre6ment ln form end substance satisfaCtory to
Secured respaorfO Collateral cornlstfng of: .
{I} Deposit Accountt,
(Ill Investment Property,
!Ill) leuerOfCredlt AlghJ$, end
llvl Chllltel Paper.
. .. . . .
Marking of Chattel pabt9f wDJ n;qt create any Chattel Paper without placing J leaond on iM Chattel Paper to Seoured
PartY lndloatlna that-SocOflld PBrtY- ha!! a eecvrity lnterellt In thG Chattel . , '
SECTION Brmffi!onhtJgn. W!umn!ln,'aod-Aproqmtntm
A . General Repruontetlont &nd W&ffentlu
Debtor warrant$ and agress thatl
111 Oebtorhi!S- full and' authority to el)ter Into this Security Agreement; thls Security Agreement has bun duly
&xeouted and delivered by Debtor-and constitute!! the vel!d ar.d binding obligation .of Debtor In acoordailce with Its
terJM, No coMent.of third partfe,, a &\1\tlorlzatlon or flUng wlth'anv govllrnmer.talau-thorl'ty Is required to be obtained or
!)ijrformed In coooectlon with the execvtlon, performance of this Security Agreem6nt .
{2) and statemems made In eny flmmc!e_l, Cfedlt Or or for credlt
prior to, contemporan6ous\y With or .Bub&&qua.nt to the exe-cution ofthl& Security Agreement. ere end ehan be tNe, Clorreot,
(3}
14)
(61
(61
m
(6)
(9}
Complete, val!d, and genuine, '
Debtor or wm use th6 prqceeds of any loans by Secutad Party to become the o.wnar of the CoHataral fre.& ftom any.
Clfelm, r8s.trlctlon, Uen, so.;Ulity lntere5t or encumbrance eKCIIPI this security lnt11rest and lleM fof taXes not yet dl.HI,
No F!nanolng SteterMnt covering the 0( It& ls on ffie in any pubio and DebtQr will not parmlt any
Flmnc!n; Statement eny of Qebtor'S Collateral or the proceed$ thvraof to hereafter ba on file in any pub!!o office except es
mey be flied punvant to thl" Agreemsnt.
Deb!Or shall p-rovide to Sacured Perty,.upon Secured P'artya request, Ol nnanclal Information, Including bUl net llmlted to a balance
sheet, ltooome; of cash flow, snd such other flflonclallnlormatlon as may b-e requested bv 1111
an appraisal of tM.CoUeterel; I!JO t&X regelpts1 1M evklence of Insurance, 11nd (vl MY other Information required by Secured Party In
connection with the lndebtadneu or the Colleteral,
Debtor will not U,e tho Collateral or pormlt the Collateral to N Used In violation gf any stetut11, ordinance gf othur law or
Jncor.ststenW wlth th9 of any policy of lm!JrencB thar&On). end Dob((!f Wlll pvrmft Secured Party and Ita agsnta,
reprenntatlves, and IQ examfM tM Conaterel at an reasonable times, and lor &t.ICh purpou, Secured Party may enter
upon, or Into any premises wh;ere the COUateral may be lo<:ated wJtKout being guilty of. end/or held \!able for, trnpass, Debtor wm
fvtnl$h to Secured Petty upon request aU pertlntmtlnformatlon regarding the Co!IJterel,
The Collateral a hall rerrialn In Oebtor'e pouesslon or at all tlm&s at Oebtor's tMk of loss unlan Secured P;lrty tm: taken
possession of the CoHateral, and be kept Bt Otlbtor's address set forth above whete Secured Perw may Insp(lct It at eny time,
except for lis iempotary remove\ in conMctlon wltn Its ordinary use or unless Debtor notllles Secured Party In wrltlll{l SeclHad
Perty C?nsentSin writing_ In adVanoe of Ita removal to enother location.
6hall pay prior to definquenoy e_ll taxu
1
Dena and assessments agalMt Coii&Jeral, and upon Debtor's failure to
do &a, S<lcured PartY a; Ita mtiY pay any .of them and shall be the t;gle Judge of the legality or vaHdltv thereQI and the
amo\Nlt MceesaiY to dl$Charge tlw same. Such payment .shaU become part of the lndi!btedne.sa $Bcuf'ed by thl$ SecuritY Agreement
end shaD be paid to Seoured PartY by lmmedlattJly and wltllWl df.lmllnd, with Jnterut thereon at the maximum rate allowed
by law. ' ' ,
Ha:ard ln&uranoe must be fym!shed at aD.tlmu for th11 fuU amount of the Indebtedness wlth tespect to all Co!letera\.Omlud'JllS'
coverage for an metorlars and equlpment} r\$kl of Fire, \'v'ir\dstorrri, Hurrl"ne (Jf tla Col!aterBI l; W.rf\t'n 100 m!les of tha
Gulf Coast), Hall_end {lnnlvdlng qort of dabd; end &uoh other rleka u Seouz6d Peny may require, Including
standard extended covetege, Such lnsurerwe ponetu &haJJ -contain su-ch term;, be In a form, for a period end bs written by
companle& ;atl&fectory to Secvr11d Party, Federtl flood tmuraMI! ls 11\So required In those geographic areas that lire subJect to svoh
lo-SS, The ponoy shell conteln e etenderd mortgegee's endorsement provldinq for payment of any lo-ss to Secured Party. AN
pollclaa of insurliflO.e sheU PrOvide fer ten days Written mlnlmum oencollatlon notlc11 to Secwed Party,
Evldenee ol coverege must be a copy of tM- original pol!oy and hi&S payable ola)15e. Certlflcatet or letters of eoverega wK1110t be

Secured Party Is authortled to act as ettorMy-ln-faoct tot Debtor kl obtaining, adjwtlrl{l, scttllng, and oancellng suoh Insurance a lid
eny draft& drown by Insurers of ths Collateral, Secured may apPly any and/or aU proceeds of suoh lruurene, whl_ch
may be received by It in payment of the lr.debtedneu segtKed thereby, whether such lnd11btedne" b currently due gr not. seoUted
Party reserves the right to efngle lnteramt Jnsvrarwe (which provide; oNy for Segurod Part'vl and add the
premium for such Insurance together with Interest at tta loan pre-meturliY contract rata to the balanc11 of the- lo11n. This J)femfvm Is
dve Upen demand, or may btl paklln fuH at ai.y agreed time, The J.!ngle Interest premium ls.written by a <:ornpeny <Jvthrll&d to
transact buslneln the S111te of TeKas at lawful rates no.t fiKed or approved by tho State Board.of lnsurenoe,
Seeured Party, In !ie sole discretion l!ln'd wtthov-t gbngatfon on Seculcd Party to do so, may l!idv&tlce ent{ 3litTIS on behelf end for
the benefit of Debtor tor coste MCO$$ery tqr the -proteot!M end preservatlon'of the o.ollateral and other ooate that may ba
epproprleto, In S<loured PartY's 601e- discretion, Including but not nlnlted to !nsuren<:e premlvlll$, e4 valorf.lm taxet, a11d attorney's
lees end legal cost$ end Any sums wtilch may be so pakl by Party u-.-.d ell &Um3 pa!d 1or Insurance- premh!ms, as
eforanld, Jnoludlf\9 the eosta, expenses, 11ncl attornjly's f11ea paid lneny suit effecting Ukl bear Interest from tho
det$aof such payment.s et tho loen lnter,ut nte app-lied to the vnrnatuted principal balanct en<J fhall be Debtor to
Secured PartY vpon deman<l, end shall be a part of the debt end recoV!!f!icble as In all aspects. A.Jjl sum to be
rclmbl.lr$ed shell be s:eouted by this Sewritv Agraemant. , ,
11 0) Debtor shall, at ita own expafue, do, mekt;,, procvre, ancl dellvar all ecte, th!nge, writlfl9' e'nd euureMu as egured Party
may 11-1 eny -time rtiqoast- to protect, anvre or enforce 116 rights and remedies mated by, provided II) or entanettng hom
th/1 Seourlty Agreoment.
111) Debtor ehaH not lend, rent, lea-se or otherwise dispose of !he Collateral or any lnterost-thereln exoept liS auiJlortzed ln this Security
Agreement or In writing: by Secured PattY, end Debtor 9htll keep the CoUateral, 1ncludlng lh9 prcoe1d-s thereof, free from unpaid
lnoludlng taxes. end frpm flens, encumbiarwes end eecudtv lntereeu: other than that;of SecuraQ Party,
Ill} Debtor shall slgh erod execute elone or With &!cured Perty any siatemeht or other document or procure any document.
and pay ell connegted costs, neceasary to protect the ;ecurfty lnteresnindar thi-s $acurtw against the fi9hte or lnterest.s
of third perwne, Debtor eha\1 pay the of Hen end end all flflng contlrwatlon fou, pnd for
cllrtlfloaiU of good st11nd'tng and other lnformatlo.n required by Seet.lrad ,p-er(y,
Page 3 of 9
!f'IC0004 06/22{01
.,
{13) Debtor shall at eD tlmes keep and Its proceeds separate and dlatlnct f"oJ other property of Debtor end shell,.te&P
ae<:ureteend complete r&eords c,, Conetereland lts proeaede, Debtor shall preHr. : end: pay fpsts neeusery'to
do so, lneludlr,g (bVC not timtted ioi {&t<f, rent, costs, and expemes of 8111&,
{14/ If SectRed Party should 'at any time ba of the opinion that the Collateral has deoUn&d Gr may ln vaN_e, or ls otherwise
\MuHJdent to adequstely seeurt! the !Mebtednen, or should Secured Party tl&em Itself tnsecllJe as to payment of the

then secured Peny may cell for addltl;mal property I? be pledged andfot covered by this Agreetrl{!nt MUsfaetory to Seoured Party:
(16)
{16)'
!17}
(18}
(19)
!20)
If any Col!a.teral or proceeds lncluda obllgatlons of thlid partlea to Debtor, the tranaaotlons creating those obUgetlons w!IJ conform In
aU re5pects (O applicable state and federal consumer credit laws,
In the event Oebtor or e.ny other or s&eka to enjoin SM:ured Pert)' front taktng any eotlon ln >nneotlonwlth the
Indebtedness or the en(orcement at Seouted Party.'a rlghts In the' Collateral, Debt.or hereby eg,rf!eS to glv11 written notice to the
President of Seoured Pany, 11t tM address of Party set forth ln. the flret patagrapti of this Agreemen\, or such
person Of address aa Secwed Party may desJgnete In writing to Debtor, prlor to seeking eny such lnjunotlve relief.
Oejtor shall Indemnify and ho!d harmless Patty from and against any and ell clalrt'l!., losse-s and growl!lQ out of or
rasphlng from this Security AgrMmant {lnoludlng, without J!mltatfon, enforcement of this Security Agreement), except claims,
loses or Habnitlu resulting from the gross or willful mlsconduot of Secured Party. Debtor agrees, upon demand, to pay
to Seoored Patty the amo.oot of any and en expenses, Including, but not nmtted 10, the flies end di!l.buraements- of Itt oounser end of
MY e)(j)llrit end egMts, Which SeoVted Party may Incur In with the prepuatlon. exeoutlon. delivery, flUng, recordlog
or admlnlstr.&tlon ofthls &curity Agreement or tho obtaining of edvfce from ooumel with to Ita right!; and under
this Seovrlty Agreement, (b) the ou&tody, preserv.&tlon, uSe or (lperetlon of, or the nle ot, collection from, or other reallu'tkln upon,
any of the Collateral, (o) the exercbe or ot anY of the rights. of Secured Party hereunder, {d) the dafense by Se\:ured
Party of any ln}urotfon pcoeeedlng related to too or the conmr.&l, or laJ the falt\lre by Debtor to ,perform or
any of the provl!lons.hereof. Debtor agreeno pay iti!OreH on any expMse or othet sums dua to SBOVled Party heteunder (save and
except lnsuranoel that are not paid when due at a ra.t.e ,per annum eq.ual to the highest r.ate' permitted by law,
ru add/6onef security for the lnd&btedoets, Debtor hereby pledges and grants to Seoured Party a tecurtty Jnterast, e Uen
and contraotual right of:ut-off In el'l<f to all of the Debtor'e money, cradlte, accounts, eecuritibs, oertifloates aOO/or other property
now In, or at any time hereafter coming withln. the cuatody Of control of Secured Party or any rnembar Bank or branch Bank of
'International Bencshates Corporation, whether held In a general or specie! Sccount or depQslt, or for nlekeaplng or otherwlet Every
aooh eeourlty Interest and right of &etolf may be exerclu'd without demaoo or notice to Uebtor. No security lntettiSt or tight of aet
off b(l deemed to have been waived. by any act or oor'tduot on th& pert of PMty, or any tq. axetclse $VOh right of
silt-off or to anforea auoh seourlty lntetMt, or by anydelsy In ao doing, Evsry right of sat-off end Interest shan coiltinue In
full force end &ffeot untJl suoh rjght of ut-off or lntetest is spec!flcally waived or by an lnstl'lJtTtllnt In writing
(I.Xecuted by &!cuted Party, The foregoing Is lrt addition to and not In lieu any rlghte of set-oft
Debtor aha!! assist Party 1n complyll\g with thf Federal Ass\gninent of Clafl'r\s'Aot {and"eAy starutes) and elm!lar
lawa to enable Secured Party to beconie en esslgnae under auch Aot eOO otherwbe comPfv with sueh tawa, Debtor ehell prenrve
fu& tlabllity Of e{lnccovnl debtore, ob!igora, end secondary parties whon Part of the Di>btor aha.IJ notify
th8 Secuted PMty of -any ehanso ocouutng 11'1 or to tM CoJI.etllral, ot In sOy feet ot eltcumstancea werrented ot representad by
Debtor In thts .aQtllement or furn!shed to Secured Petty, or If any Event of Oafeu\t. occurs,
Debtor will not allow the (;()Ueteral to ba efllxed to est.ate, except goods klentifl!ld herein es
1211 All &)(tended or note(s) wM/ be comldered executed on thll date of tha Original note{s).
I '
{22)' Debtor shall comply whh s!! end f&gulatlons eppl11lbte to thil end the premlsnln whloh the Collateral
Is located end sMU notify Secured Party ujn recolpt of any notice or other lnfotm11tlon as to MIY environmentAl or ViOlation
of soch Jaws, Securt!d f>eny may lmpoct ell premises In whk:h tha Collateral Is Jooeted end the CoHeteral as to Ita end thett.
with environmental law, Debtor lndemnlflas aM holds harmless &cur&d Party fOl any breach of the foregolr.g and for an
loues, costs, damegu, lncludlfl1 court co5tt end attorney's fees, Jnrred by Secured Party to i:l,efeoel hself, or. to proteot or
preserve the Collateral against envlronment11l rilks, ha.tards, &rod other c!alms relating to the- Collateral.
{23) Without pl'OV!dlng SacUied Partywlth at lns.t thirty (30) day.s prior written notice of Debtor's Intention to do so, Debtor, until the
lndabtedneu Is p11ld In full, agrees that it will not:
e. In one or s tet!es of rlllated tunsaetloM, m&rge Into with any other entity, Sll!l an 01 substantJaUy s11
ot its assets, or In My way jeoprudtte Its corporate exlstetloe,
b. change tM state ollts lncorporstkm,
c. change Ita corporate nam(l,
d, the e<idNiu and/or of I\!; Chief Olftce:
e, filfl e UCC-1 Amendment form, andlot
1. filff e UCC--1 Termlna'tlon form.
(241 Debtor has the risk of loss of th& CoJlatete!,
{2Q) Secured Party has no dulY to coii&Ot e-ny aocru!ng on thll Collateral or to eny relating to the Collateral.
e., Spaclel Md'werrantles:
tlebtoi reprasents, wart&.nts end &.gMes theu
(11
121
13)
It the Collateral !Mludas ltwentory= . .
(e) Oabtot will Immediately notHy Stlcured Party of the disposition of any Inventory and at Debtor's- expense wut either assign to
Secured Perty a flrstpriorlty teouritY lnterest'Jn any res\.lltlng account, Chattel p!per, or lnstnJtn.&nt or deliver to Secured Petty
, culi lo tM amount of the ptlce, Debtor will not aall, Jeue
1
Of othemls$-t:llspose of any CoUateral exc(lpt In the ordinary
cowse 'of wlthout the prior written consent of Partv. .
(b) Until de'feult DebtOr may In the &dfnary course of bu.slnass, asH, leaee or furnls'h unDer contract ofseMoo eny of the Inventory
normally held by Debtor for S\.lch purpose, p{ov!ded, however; .tJiei suoh of Jnv.antery not be Inconsistent with any
oth!lr provisions of 'thlt S&eutlty' Agreement or with thil terms ot CMdltloM of any poUclea of lneuran(1 A seta In the
ordinary oouree of'buslneu does not lnalude a transter In partial or'tot&: iatlslet:tlon of a tl.ebt.
itthe Cotlaterallncludes accounts:
{a) Each ecc-ouni In the Col!aterel wJU rapresent the V(llld, logelly enforce'able obltgfttlon of thltd and will not be evidenced by
any 1Mtrllf06nt1)t chatter paper,
tbl The offlce'where Debtor keeps Its recordS corocarnlng aec6Ut'lts, If eny, ls the sddraas of Debtor set forth at the beginning of
thls Security Agreament;
If th& CoDatcre.llneludes Instruments, chattel papor ot dotumaotsl
(aJ By delivering s coj)y" of this SM:utlty AgrMment to the broker, &e0el, or other person In possession of Col!a.teral that Is chattel
paper of document, Security Party win effsctlvely notify that per! on of .SeCIJred PartY's lnterest In the Collateral. Delivery of the
oopy Of the Agreement will eleo constitUte Oabtor'5 ln&ttlltfon to deliver to SeeurGd Party cartlflcatu or other
of the as soon as It ts ivailabla, . Debtor wmJrnniedlatoly to SeC\lro.d PartY an chattel papor and
documents that are Collateral It! Osbtor'!; If that Colleteral Is hereafter acqu!ted, Debtcr will deliver It to Seeuted
Party Immediately fo!!owlng eoquls!tkln end etiher endoru it to Seclfied Plirty'e order or gtvb PartY, appropriate
executed powers, If any Instruments, chattel paper, ;money or monks, or doOIJnlllcnts ete,.et eny tlme .or.tlmos, IMiuded ln the
IBCOOO.t 06/22/01
Pa!Je 4 of 9
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{51
{51
(71
{91

''
'Col/atel'al, wh11ther Qtherwlse, DibtQr wBI promptly J to Secu:red'Party upon lha receipt thereof
by Debtor,- and In ;my IIV,!fit promp1ly upon demaflQ therefore by Secure:d Paity. If ni.foenary, ;>II Coi!Jten!l'wnt e!tMr be
andorsed to Secured Party'a order or accompanied by appropriate execlltad powers.
lb) By mean; to Secured Pany, Debtor has perfected or wi'J perfect a Interest In goods covered by chattel
paper, If 1Jn'(, In
- '
I! the property 90vered by a Ce:ttltlat$ of Title: II al\y certificate of tltlll or s!mU&t document l$, at time and
wrsuent to the laws of eny jurisdlot!on
1
Issued or outstn_nd!ng with respect W the qollaterel or any part thereof, Dflbtor whl Nompt\y
advlu Seovred f>artv thereof, and Debtor wfll promptly tnt Interest of Secured Perty to be properly noted tharepn. and If Bny
certlfloate of title or &lmflar dooumont!s so l$sve9 OJ oute}andlng at the time thb Seourity Agreement 111 exeovted by or on behalf of
Debtor, then Debtor shell have oaused the Interest of Secured Pi!rty .so to have. bean propetly noted at or bofore the time of
e;'l!ecutlon; end Debtor will furthqr promptly deriVC!r to Secured Party efly of tlt!6 or slmllar docum6flt Usuad or .
ovt$ltiiKiiJ'I9 any tlmS whh respBct to iu.ch Collateral, ,
If the Collateral is or may become futuret on real property descnbed herelnt This Seourlty upon OOlog !Red for In
the real property reCQrds of the CQUOty wherein 11vM fiXtures <l(lj liltuated, shall operate also as mtemeht filed es' fixture
,filing In ev<::ordence wlth Saotfon S.402(el of tho Texu Bvsfrwss and Commerce Code upon such of the Collattual which I$ or may
ftxtwe-s.
Debtor hat rights 1n or the power to transfer ths Collatsralalld Its tltle to the Coltsterel b frea of 1111 adverse claims, !lens, security
lntarest:nmd resfrfctlon& on tran&fer or pledge u crnt&d by thfs Sewrlty Agreement.
AD col!aterel CDtlile!lng or gcod; b located solely In the states anO/or stet$$ prev1ouily de&lgnStetf and wernnted by Debtor to
Secured Party,
Debtor's:
\l) chief exacutlve oWes is looet&<f In ths statO previously deslgMted find werranted by Debtor to Secured Perty;
tm state of lnct1rporatkln is the stato prevfously deslgnatsd end warranted by Debtor to Sec\Ked snd
lUI) exaot legal name is sa set fOrth In the first paregreRh lJf this Agreement,
SECliONVl: !MiNTS OF-t::IEFAULT, .
Debtor shall bt In default under this security AgreemMt upon the happening of any of the folwfng evl!nts (>I' conditions {n&rsln an
Event o! DefaultJt
111
121
131
14l
l6)
161
(71
19)
191
110)
The felture by O$btor or eny other Hable part'{ to pay when due anY of tho lndebtedne&& ellher prlnclpal or Jnteres!,'or any othsr sum due
uoder the tertM of any Instrument the lndebJedneu.
Default by Debtor fn the pvnctvel performance of MY pf the obligations, oovanente, terms or provisions qonta!ned or rdemd to in this
Security Agreament.
Any wenanty, representition, or statsment contained In Sacwlty Agreement or rnada or fvrnlsMd to Secured PartY by or on behalf
of Debtor or any other person or perty In coMeotlon whh this Securiw Agrnmsnt or to lndU<:e Secured Party to,mske loans
. f.doscrlbcd In Seot!on I!!Fprcves to have been fa/s.sln any respect when made or
Lou,-ttvJft, aubstentlel demags, destruction, sale foxcapt as authorized In thl8 Sewrity Agreement} or to or of any of the
Coflaterel, or the muklng of any levy, or attllotJmont thereof or
. .
Debtor's deeth, d/nolutfon, tllrmlnatlon Or exlst"1e-s, lnaolvency or business faHuta; appointment of a receiver of al\ or any p.art of
the propertY of Debtor. 11n usignment for the benefit of crsdltors by Debtor, the calling of e maatln9 of creditor a of DePt or, or the
of any }:lrocaad!ng undet any b;mkrvptqy ot Insolvency laws by or against Debtor or any guarantor. suretv or (JJ'Idorser
for Debtor, or th11 of ;my of 5U<1h events deseribed In this 16) n. to arw person or party !!able for the payment ol the
obligations, or any POrtion tl'wreof.
Any st;ternent of the flnarilal condition of Debtor or of any maker, guarantor, surety or endorser of eny of tha Indebtedness proves to
h8 Mse.
I .
The Collateral become-s, In the jl.ldpmeht of Secured Partv, tmset!GfaotOlY lnsuHiolant In ohal'lletsr or velva.
Any maker, turaty o; endorser under or .with respect to theff\debtedness defaults In any oD!Ig.l!tlon or J!abnJ.ty to
Pany,
Tlie ocourrencit Qt any enWortsnehhiJy h;atem$ouf, ,fpfll
1
orothar slmllaT event arretlng thi or the
premlaes In which the Conaterall.& lotBtod,.whather auoh eeot Q-QOUrs on auoh premises or on other
.Debtor, or any ot t!Wm, any fa!!& to timely d!llver. em ,and sn f!nanc!aJ lnooma tax cash flow
lnformetfon, balance eh.eets, 1100<11.1nts recefvabls rep!>rta, or any other bustn.eu, tax or flnane!al lnform11tioo teqV8$tetf by Secured
Perty,
SECTION Vlh $EQURED PARTY'S RIGHTS AND. REMEDIES.
A. General.
111
-12)
131
14)
{51
Sscvred Perty muy exsrclsa the followln9 rights and rom.edlas c_lthor before or after an Event ol Defeultl
Secured Penv may take of any prQceeds. oi the Collateral,
Secured Pilrty may release any CoBateral In Party's to DeOtor,temP;Orarlly or otfl&rwlstJ,
Seoured Pony may take control of any fund$ generate-d by the svch e.s refunds from .antf of lnsVranoe, and tedv(ll)
any part of the IndebtednesS accordlngiV or permit Debtor to use such funds to repair or replace damaged or de,!itroyed Collateral
covered by hwurvnce. . ' . . ,
Sacured- PllrtY request Debtor from time 1o time, In Secureti.Psrly's Olsoretlon to t.ako any ll'ctlon .anQ lo' e;'l!ecvte e:'hv lnstNmarit
which Secured F'e.rtY may deem monsarv or advl-able to eccomp&h the purpo&es of this SecuritY Agreement
Umltatlo-n, {11) to' ask. deman<l, qoneot. sue for, recovst, wmpound, reeelva end give acquittance and receipts for due and to
become d!Je untfer or In ra$pect of eny CoHateral; fb) to receive, eMorse and collect any drafts or other Instruments, doCtJments and
chattel p9pe1 In oonneotfon with the preceding eotlon.s; lcl to tuo any clalmf or talc;o anv action or Institute any proceeding& whloh
Secured PartY may deem oeeeuery or desirable for wllectfcn of 01ny of the Col!aterel or otherwise to &nforce lb righJ$ With respect to
any of tha CoUeterel, end {(fl to. complete 9ntf &\gl'l Ofl behalf of Debtor one or more flnenclng stetement.s pertaining to the Co-lhsterel.
and fOe the same In an appropriate locatlo.n. The powers conlerred on Party hereunder are solely to protect Its lntereat In the
Coueieral and 'haQ Mt Impose any duty upon Secured Party to exerelse any &UCh pOWer&. Debtor's appolfltmenl.of S!lovred Party u
Debtor's agent b ooyp!ed with an lnterut end wUI survive eny dtsabflity of Oehtor.
This Seeurlty Agreement; Secured Party's rights her$Undijf end/or lha Indebtedness hereby secured may be In whole and In
part from time to 1/me; 11nd In eny cBee Secured Party $haD be fvlty from all wlth respect to the C<lhler&l
eo Mslgned end the entitled to en of the rights, and temt!dln granted In this Security Agreement to Secured
Pany to the extent (he nme are 11-UigMd, and Oebto-r will auert no claim or dalel'llies he may. have egelnst Socured Party against tM
ass!Qnee, exoept those grantjld In this Security Agreement. In addftlon, Oabtor waives and wnl not as&ert against any claims, defenses
or which Debtor coufd nfOrt egeln.st SQt:Uied Patty exoept ... whloh be waived.
IBC0004 0$/22/0l
5 of.,
'l
J
(6)
(7)
(B).
(91
(10)
(111
..
. . . - . .
Partytnay enter upon at any reasonsbf& 11me to Inspect tJ. .: ..011\'lteral and Debtor's books end
p.ertafnlng to the collateral, a.nd Oebtof shan esstst the Secured Party In making any such InsPection.
Secuted P.artv may notify the d!btors or obligors of any accounts, chattel paper, negotiable 11\Strumenu or qthat evidence of
lndebtodneu remitted by Debtor to Secured. Party as pre<:eods to pay Seouted Party dlrootfy. Secured Party may contact ecoount
debtors dlrBotly to verify information furnished by Debtor.
Seourej:l Pativ may addltklna! Cotlate:r<'ll or reject as untat!sfMtory any property hereafter offel'lld by Debtor ac CoRetereJ,
Secutl}d Party may designata, from time to time, a certain percenta-ge of the Collateral as the Joan velue- and require Oabtor to melnteln
the Indebtedness at or Mlow SUh pereentsge.
Secured Party nisy pr&sent for convert \on to cash any IMWment or lnvsstmont security or a coml>!natlon thereof. Bot Patty
aha!! n&\ have any duty to presenttor conversion .any Instrument of Collateral In Its possenlott unless It shalf have received from Debtor
detailed written to that effect at a time reasonably far ln advance of the fine! convtHilon date tO make such conversion
.possltift .
TM for going rights and powers of Seoured Party wtll be ln addition to, end not a Umltatlon UpOn
1
any rights encf powers of Secure-d
Petty g . en by,lew
1
elsewhere In this Security Agreement, or otherwbe. . . .
Secuted Party has no obHglltiOn to attempt to 1he Obligations by colleotlng them ftOI'Il any other J)Braon Uabla for them and
Secured Party may rel-9ase, lhodlfy Of walve any collateral pr(lvlded by any other person to secure any of the ObllgatloM, all without
effeotlno Seouted Party's r!Qhts sgalnst Debtor, Debtor waive$, any right }t may hava 10 re<jolro Seourl>d Party to pursue any thkd
psrson for any of the Obflgat!on.s,
11.2) Secured Party-n\ey comply with applleable mte: or fad!!Jallaw-t&q\.l!raments In connection with a'dispodtlon of the and
compllonoa will not be cons!derOO e.d'w'ersaly to effect th& of any.eale of the Col!atera!.
(13) If Secured Party sol!!! any of the Collateral upon credft, oredlted only with payments actually by the
raoeived by Secured Party rtnd applied tc the lni:lebtedous Of the Pvrohuer, In tha &vent the putohesar falls to pay -tor the
Party may resell the Colleteral Debtor shan be orodlted with the proC9ad& of tha sale,
(161 Seoured Petty haYe obligation to mar"'ha.11 any ess&t$ln favor of Debtor, or agllfnst or In payment of:
(I) the Note,
{iO of the other Obligations, or
!Iii) any other obligation owed to Sttcurod Party by Debtor or any other parson.
{f6J This S!Xlurity Agreement $hall bind and shell Jnura to the bem\flt of the hell$, 1eg&tt!OS, eXGCUtrt
1
ed'mlnlstratots, liUCCllssora and
esslgns of Secured !>arty end shall bind' all persons who become bound u a debtor to Agreement.
{17) Secured Party do-e.s I\Ot consent to any aS&Ignment by Debtor ax.cept as expressly provided In thls Security Agreament.
B. flemsdlos In t!:vont ol Default
01.Ulng t.1w existence of any Event of Oefsult. or In tM event Seoured Party diel'lu Itself !Me11ure ln the psyment of the !ndabtednne, secvretl
Perty may declare the unpaid prlnolpaf end unpaid and accrued lnwest of tM lfldebtedr.ess Immediately lfue In whole- or pan, the
and/Or exercise any rights and remedies granted by tha Texu Sua!Mu snd Comme>"ll!el Coda or by thls Se-turity Agreement,
tnoludlng the following:
(1) req<Jiro Debtor to deliver to Secured Party ell books and records relatlnQ to the COJIM&taiJ
(2} require Debtor to assetnb!e !he CoUater11! make It aveHab!a to Secured Party eta place reuona.bty convarJent to both parties:
13) taM possession of any ol the CoUatera! and for thls putpose enter any premlsos where It l;looatad If thts ean be done wlthout breach
ot the pGece end wm npt be gulltY cf, 11ndlor hekl flabfe for, trespass;
(4)
(&)
(6)
(71
191
sell, le11s&, cr otherw!se dlspou of 11ny of the Collateral In accord With the r!sJhts, rsmedles, and of a Soourtd Party under
Chapters 2 11nd 9 ol the Taxes S!J$Iness Ar.d Commerctt Code after glvtrtg notice as required by those Chapters; unless the Colleterel
to decnne 111p!dly In valua, Is perishable, or woukl typically b& t<lld on a recogrh:ed mllrket. Secured Party will give Debtor
reetonable ootioe of" any publio se!e of thu Collateral or of a time after whk:h Jt may be otherwise disposed of wlthout further notice to
Dab\orJirr thls event, wlllbe If tt Is maHed. postage prepaid, to Debtor at tha address In thi!J
agreement at least ten days before any pub!fo eele or ten daye before the time whe-ri-the Collaterel be otherwise disposed of
without further notice to Debtor. Debtor 11uthorlzes Secured Party to dJsolalm or modify any and Dll wemmtles set forth ln. Section
g,otOtd,l end stipulates that SJ.leh e disclaimer and/or m!Xflflcatlon. wiD not render the sale lmmerclelly untessoi\Bble,
avrtender any Insurance potlc!es oovariog the Collateral and receive t'he unearned premium;
. .
apply proceeds ftoltl cl!$posltlon of the CoUeterel after default In the msMer specified In Chapter 9 tlf 1he Texas And
Commetce Code, InclUding payment of Secured Perty's reasonable attorney's fees snd ooutt expenses!
!f disposition of the Col!aterlll feeves the Indebtedness unsatisfied, colleot the all liable parties, Exp&ll$eS of re1aklngl
holding, prep11t!ng for aalo, se!Hng Of the like ahalltn<llude Sewred Petty's reesoneb!a ettorne.y's foes 11nd 1egol costs ond/or expenses,
Md Debtor egreu to pey euch costs, expense$, er;d fe&$, plus Interest thereon et the maX!mllll1 rete aH-ow11d by applicable Jew;
Soeured PattY mey retain aU or part ot tM Cotleteralln full aatlsfaotlon of the lndabtednau pursuant to Section 9.620 of
the Texa.s Buslnou And commerce Cocle;
Sacured PartY may, without demand or notice of any kind, 'epptoprlete and apply toward the payment of any eum! then ow!119 to
SMuted Party and In such ortler of epplloetlon as 1he Party may frorn tlm6 to time o\oot, eny property, balances, oredlts,
accounts or monl{!s of Debtor whk:h for any pwposa Is In Qla pouessn or ctJntrol of the Secured PMy or MY member Bank,
breneh Bank or other depository Institution of /nterMtlona\ Corporation; 11nd/or
(1 OJ Secured Party may remedy any .default whhout waiving the dilfevlt remedied and may wafva eny default ;O.VIthout waNing any other
prlot or de:faul1.
SECTION VIlli ADDITIONAl AGR.E.EMENi$,
11) AR nOtlges encl other comm'Jnl6etlons to Secured Party harounder or lr\ coMectlon-h&rewlth she!! be deemed to have given when
received by Secwad Patty In writing at the eddreu flfst shOwn harelnabo.va, My notle dem&nd or other oommun!oatlon tD Debtor
heteunder or In O<lMQcdon herewith mey be glve'n and sheU conolusivel{be tfeem&d end COM!dared W heve been glvan end received
upon the deposit thereof In wt!tlng In the United States- MelL duly stamped and eddreesed to Debtor either at the strMt &ddrM&, the
first shown hereinabove, or at the maill/\9 address, If any, given by aM/or for Debtor at the beglnntng of this agreement lor at such
ether u may 'ha'ie bean designated most recently In writlttg by to Soeorad Partyll p'rovldad, howe11er, actual notice to
Oobtpr; however given orrrcelved, shaH always effecd.,e when given or received,
(2) A copy of this Security Agreement or sny finantlttg '5tlltement eoverlng the Collateral Ia sulflolent p.nd may be 1J111d as e
statement. tntormatlon concerning thls security Interest rnay be obtained at the $oourod Party above.
:tl!C0004 ... 06/2'1./0l
Pagl.\6 of s
.:
:., :
' '
v:"
, ..
: .:
.; .. .
, ..
.. ,
.i
;;
:

(3) This Security AgreerMnt ,;;ey only or by en agreement In
{4} This security Interest ahall neither aff&Ot nor be' Bfflict_e-d by any other-nc-urity foumy of tf\$ lnd&btednou-. N91thor exiel\$loJ of any.of
!he nor;.releases of any of tho ohalleffaot thoe va!!dlty of this seourtty lnterast wah to any third party,
Additkmally, foreclowre of thl$ eeci.Jritv Jn(erest bY lawfult doee not limit Secvred remedies, Including the rlSht to un 'the
und1r the terms of thll! Secvrity Agr&emMt, Secwed Party shall have- the rlsht to ilxerclse .an rvm&dles -at the- ssrrit or
different IImas and 1\() remedy shalt be a deYeMe to any other. Secured Pany llhall have all rightS end remediQ:s granted by l$w or
otMrwlse [n addition to those provk!ed .In fhls A$1reemen,, . . ' .
' -
(6! Secured Perty may any dehu!t without wsMng: lt. No delay by Secured Party In exercising It$ rights or partially exercising Its
tights: or rem&dlet shB!I wolve further. exercise of those remedies or rights, The faU\lre of Secured Perty to IHW rerMdi&J or
right' does not waive exe.r<:lu <lf ttwn or rlghtll, Any waiver by Secured Peny 9f any default She!! not waive any
furtMr defeutt. Seoured Patty may renwdy any defavtt without waMng- It, Secured Party'e waiver of llny.tlght In this Seourfly
Agreeme-nt or any defeult Is binding only If In writing,
{Q) Oebtor and Secvred P.arty lnteod 'tha1 the 'lndetbte$!ness shaD be In ilrlot oompllsncG with appllcabht us my laws, If 111 any time Interest
contracted for, charged ot reeelve.d under any ncursd by this Secvrity Agreement or othe-rwise-In With this
"transaction would he usurious under IIPPPcable law, then regardless of tile provfslof"IS of this Security Agreemen\ or any other
documents or {mtrvmen1S evldenolf1Q, ncurlng or otMrw4e liXecvted In cormoctlon with any lndocbtedneSs secured by this Seevrltv
. Agreement of any action or event (lnckxflng, wilhout Rmltet!Ofl, prepayment of under the Note or acceleretlon of marurltY by
See-urad Party) which mBY occur vifth' respect to the Nota, It Ia agreed that a!! ;ums determined to b9 usvrlo\.1-S she !I be Immediately
ctedlte-d by Seouted Party to Debtor es payment of principal !Jnder the Note of If the Nota hu a(l'l!ady Men .paid, Immediately
refunded to Debtor. Allcompe-n&utlon which constltutn lntere$t vnder appl!oab\e law iil oormoctlon with any Indebtedness secured by
this- SecuritY Agreement sheO be protated, and &J)(ead the foil psr!M of time iny Indebtedness is owed by
Debtor, to the greetest.extent permls$1blo without exoeed!ng the appl!oable maximum rate allowed by llpplhabfe 111w In from time
to time during such parlod.
: ..
171 SeolNod Pat1y may perform any obllgarJon which Debt01 fells to perfcnm end Debtor on demand ralmburse $$cured PertY
lmmed!lltolv for eny svms so pakf by Secured Party, lrn:ludlng allomey&' fees and other legal exponsea-, p/JJS lnterast on those aums
from the datnof payment at the rete 11ieted In the Note for metured, unp-eld amounts, Any ;gvm to bos reimbursed $hJ!l be uoured by
this $$curitvAgreer;nent. [See Section IV, (9) relmbursem&""nts}, ,
'I
181 'r"hb Se,eurity Agree,meht Is being executed end deHvered end .1& lntend&d:to ba-parlormed In the State of" Texu com;;trvod"
and enforced ln eooordanoe with the laws of the State of Texas, to th9c extent that tho Code provides for the of the.
bw of the Oeb!or States, Vllwn tM C<Jntext requires, singular novM and pr011oun.s Include the plural, Tht rlght5 of SeciJI'ed Party
under thfs SecuritY Agreern11nt 'hall bluro -to the benefit of Its auocSS$0f& end Any asslgnmerit of part of the lndebtsdne&$ and
deRvery by Secured Perty of any part Of the Collater11l will tully dlsch!lrge Secured Part'( from eny end efT resPQnslbtlrty for that portion
of th& Colloteral. Debtor's lndebtednan under thll Agreetnent 'shaH bind DebtOf'l ptrsoM!

sueussor& end
nsfgils. If Debtor ts more- then qne, ell tha)f representatives, warrenlies and agreements ere Joint and several. If any part of thfs
See-urlty Agreement 1$ unenfon:eab!e, thtl uMnforceab!Uty of such provision will not affect enforceability of any other provision
hereof and Jll other provisions will consthute velkf provisions,
sEcnoN rxz ARBITRATION FUin'HER AGfi:EE AS FOt.LOWSz
(a) ANY AND Alt. CON'fROVERSIES BETWEEN:THE PARTIES SHAU..BE RESOLVED BY ARBITRATION JN ACCORDANCE WITH THE
COMMERCIAL ARBITRATION RULES- OF THE AMERICAfi ARBITRATION ASSOClATION IN EI'FEC1' AT THE TIME Ot: FILING; UNU:SS !HE
COMMI'RCIA\. ARIUTRATJOl-l RUI..ES" CONFLICT WlTH ltJIS PROVlSJON, ANO IN SUCH EVENT THE TERMS OF THIS PROVISION SHALL
CONTROl; TO THE EXTENT' OF THI! ONFLlCT, ANY ARSITRA'fiON HEREUNDER SHALL BE BEFORE AT LEAST THRE6 NEUTRAL
ARIUTAATORS ASSOCIAJED WITH -lliE AMERieAN ARBITMTION ASSOCIATION ANl;l IN' ACCORDANCE WITH THE COMMERCIAL
ARBITRATION RULES OF 'l'EAMERICANAABJTRATION ASSO,CIATION, FAILURE Of ANY ARBITRATOR TO DISCLOSE AU. fACTS. WHICH
MIGHT TO AN OB.JECTIVG OBSEf\VER CREATE A REASONABLE IMPRESSION OF lHE AAallRATOR'S PARTIAUTY. AND/OR MATERIAL
ERRORS OF LAW SHALL BE GROUNDS (IN ADDITION l'O ALl. OTHE.RSl FOR VACATUR OF AN AWARD RENDERED PURSUANT TO THIS
AGREEMENT. . . .
. . . .
lb) THE AWARD OF THE .P,RBITRATORS, OR A MAJORITY OF THEM, SHALL BE f/NAL,ANO JUDGMENT UPON lHE! AWARD RENDERED
MAY BE ENTEREO IN ANY COURT, SiATE.OR FEDEMl,.HAVING JURISDICTION. THE ARB!TAAliON AWARD SHAll BE IN WRtriNG AND
SPECIFY THE FACTUAL AND LEGAl. bASES fOR THI! AWARD, UPON THE REQUEST OF AfiY PARTY, THE AWARD SHALL INCLUDE
OF FACT AND CONCLUSIONS OF LAW,
'
(o} ARBITRA6L OJSPUTES INCLUDE ANY ANO A.Ll CONTROVERSIES OR CLAIMS BETWJ:EN THI!.PARilES OF WHATEVER TYPE OR
MANNER, WITHOUT LIMITATION, ANY C.LAIM ARISING OUT or OR RElATING TO THIS AGREEMENT, ALL PAST, PRE;SENT

SPECIFICALLY INCLUDING ArN ALLEGEO TORT COMrilrrrt:tnlY ANY PARTY, '
fdl THE!: PARTIES SHALL ALlOW AND PAfl;TICIPATE IN DISCOVERY IN ACCORDANCE WITH THE FEDERAL RULES OF CN!l PF{OCEOURE
FOR A PERIOD OF ONE HUNDRED TWENTY {120) DAYs AfiTER THE FlUNG OF THE ORIGINAL RESPONSIVE PlEADING, DISCOVERY MAY
CONTINUE THEREAFTER AS AGREEO BY TH!l: PARTIES OR AS ALlOWEO aY THE ARlliTRAlORS. UNRESOLVED DISCOVERY DISPUTES
SHALl BE BROUGHT TO THE AnENTION OF THE ARBJTRATORS !IY WRITTEN MOTION FOR PROPEfl otSPOSfTION, INCLUDING RULING ON
Arl.Y ASSER"TED OBJECTIONS. PfllVILEOES, AND PROTEOJIVE ORDER REQUESTS AND AWARDING AEASONABI;,E ArTORNE'f'S FEES TO THE
PREVAIL)NO PARTY. '
ltl IN THE EVENT THI:l fi.O!JijEGA.TE'OF AFFIRMATIVE CLAIMS ASS.ERTED EXCEED $500,000.00, EXCLUSIVE Of INTERESl AND
A'riORNEY'S FEES, OR UPON lHE: WRIT'TI!N REQUEST OF ANY PARTY, (1) PRIOR TO THI! DISSEMINATION OF A LIST OF POTENl'IAL
ARBtTi:t,;TORS, l'HJ:: AMERICAN ARBITRATION ASSOCIATION SI-!All;, CONDUCT AN IN PERSON ADMINIS'rRATIVE CONF!;RENCE WITH '!'HE
PARTIES AND THEIR FOR THE fQLLOWING FOR SUCH ADpfDONAL PURPOSES AS lHE PARliES .OR THE
AMI:RICAN ARBITRATION ASSOCIATION MAY DI:EM APPROPRIAl'e, !AilO Ol31Aifl ADDIT/ONAt. JNFORMATJON-ASOUT THE NATURE AND

MEOJAT!ON OR OTHEfl METHbDS OF DISPUTi RESOLUTION MIGHT BE APPROPR!AU, AND (2) Av PROMPnY AS PfiACTICAtE AFTER THE
SELECTtON OF.THE ARBITRATORS, A PRELIMINARY HEARING SHAll BE HELD AMONG THE' PARTIES, THEIR ATTOR S AND THE
ARBITRATORS. WITH THE AllREEMtNT THE ARBITRATORS AND lHE PARtiES, lHE PRELIMINARY HEARING MAY BE- NDVCTEO EJY
TELEPHONE CONFEAENCE CAL.l RAtHER THAN ltl PERSON, AT THE PRELIMINARY HEARING THE MATTERS THAT MAY Be
SHALL INCLUDE, WITHOUT LIMITATION, A PREHEARINQ SCHEOULING QROER ADDRESSij'lG {A) t:ACH PARTY'S OOTY TO SUBMIT A
OETAJl.EO STATEMENT OF AND/OR DEFEN13E$, A STATEMENT OF THE ISSUES ASSERrEO BY EACH PlRTY AND ANY
lEGAL AUTHORITIES THE PARTIE"S MA WISH TO IJRINQ TO THE ATTENI!ON OF IHE ARBllRAYORSJ (!Jl RESPONSES AND/OR REPLIES TO
'rHE PLEADINGS FILED IN COMPUANCE WJlH SUBPART 2!Alf ICl STIPULATIONS REGARDING ANY UNCONTESTED FACTS; {D) EXCHAfWE
AND PREMARKINQ OF Ai;,L DOCUMENTS WHICH EACH PARn' BELIEVES MAY BE OFF!:RED AT 'rHE FINAl ARBITRAIJON lEI THE
IDENTifiCAliON AND AVAlLABJLJTY OF WITNESSES, INClUDING EXPERTS, AND SUCH ADDITIONAL MATTERS REGARDING WITNESSES
INCLUDING THEIR BIOGRAPHIES AND A SHOAT SUMMARY OF THEIR "EXPECTED TESllMONY, CFJ WHETHER A STENOGRAPHIC OR OTHER
OFFICIAL OF THE SHAU BE MAlNrAINEO: AND !Gl THE POSSIBILITY OF UTILIZING MEOJATftiN OR OTHER
AL TERNATJVE METHODS OF DISPUTE RESOLUTION.
lfl FOR PURPOqES OF THIS PROVISION, THE PARTIES MEANS DEBTOR AND SECURI;D PARTY, AND !:ACH AND Al.L f>l::RSONS ANO
ENTITIES SJGNING THIS AGREEMENT OR ANY OTHER AGREEMENTS BETWEEN OR AMONG ANY OF THE PARnES AS PART OF '!'HIS
TRANSACTION. THE l'ARTJES" SHALL ALSO INCLUDE INDIVIDUAL PARTNERS, AffiLIATES, OFPICERS, DIRECTORS, EMPLOYEES, AGENTS
Page 7 of '9
1BC0004 06/22/0l
ANOfOR REPRESENTATNS OF ANY PAP':-' TO SUCH DOCUMENTS, AND SHALL INCLUor VY OTHER OWNER AND H?LDER OF .
AGREEMENT,
!gJ THE PARTies SHALL HAVE.11iE RIGHT 'rO INVOKE SELF; HELP REMEDIES (SUCH AS NOTIFICATION OF ACCOUNT DEBTORS,
SEIZURE FORECLOSURI!:OF COLLATERAL, AND NONJUD!CIAL SALE OF PnSONAL AND REAL PROPERTY COl(ATERALI
BEFORE, DURING OR AFTER ,ARBifRA110N AND/OR RSQUEST ANCILLARY OR PROVISIONAl JUDICIAl REMEOIESISUCH AS
GARNISHMENT, ATTACHMENT, SPECIFIC PERFORl..tANCE, RECEIVER, INJUNCTION. OR' RESTRAINING ORDER. AND SEQUESTRATION}
BEFORE OR AFTFft ANY ARBITRAtiON. THE PARTIES NEED NOT AWAIT THE OUTCOME OF THE Ah'Bil'RATIOffSEFORE USING SELFHElP
REMEDIES. USE OF SElrHELP OR ANCILLARY AND/OR PROVISIONAL JUDICIAL REMEDieS SHAll. NOT OPERATE AS A WAtvllA OF EiTHER
PARTY'S RIGHT TO COMPEl ARBITRATION, ANY ANCILLARY OR PROVISIONAL REMEOYWHICH WOULD B.E AVAilABLE FROM A COURT AT
t.AW SHAll BE AVAIL.ASL.E FROM THE ARBITRATORS. .
:lhl THS PARTIES AGREE. THAT ANY ACTION REGARDING ANY CONTROVERSY BETWEEN THE PARTIJ!:S. SHALL EITHER BE BROUGHT BY
ARBfTRATION, AS D.ESCRIBttD HER.l:JN, Ort BY JUDICIAL PROCEEDINGS, BUT SHALL NOT BE. SIMULTANEOUSLY lrl DIFF.ERENT OR
At:TERNATIV& FORMS. A TIMELY. WRITTEN NOTICE OF INTENT TO ARBITRATE PURSUANT TO THIS AGREEMENT STAYS AND/OR ABATES
AtlY AND All. ACTION IN A TRIAL COURT, SAVE AND EXCEPT A HEARING ON A MOTION TO COMPEl ARBITRATION AND/OR TH!l EnTAY
OF AN ARBITRAnON AND STAYING AND/OR ABATING THE LITIGATION PENDiNG T.H6 FILING OF iHE I'INAl AWARD
OF THE ARB! RATOAS. Ail REASONABLE AND NECESSAf\Y ATT<>RNEY'S FEliS ANO ALL !RAVEL COSTS SHAll BE AWARDED to THE
PREVAILING ARTY ON ANY MOTION. TO COMPEl. ARBITRATION AND MUST BE PAID TO SUCH PARTY WITHitlTEN l10J DAYS OF THE
SiGNING OF THE ORDER COMPELLING ARBITRATION, . .
jiJ ANY fl.GGRIEVED PAR!Y SHAll SERVE A WRITTEN NOTICE INTENT .TO ARBiiMT TO ANY AND AlL OPPOSING PARTIES WITHIN
360 DAYS AFTER DISPUTE HAS ARISEN, A DISPUTE. IS DEFINED TO.HAVE ARISEN ONlY UPON RECEIPT OF SERVICE OFJUOJCJAL
PROCESS, INCLUDING SERVICE OF A COUNTERCLAIM, FAILURE TO SffiV A WRITTEN NOTICE OF INTENT to ARBITRATE WITHIN THE TIME
SPECIFIED ABOVE SHAlL BE DEEMED A WAIVER .OF THE AGGRIEVED PARTY'S RIGHT TO COMPEL ARBITRATION OF SUCH CLAIM, THE
ISSUE of' WAIVER PURSUANT TOo THIS AGREeMENT IS AN ARBITRAalE DISPUTE.
U) ACTIVE PARTIC!MTION IN P.!:NDING liTtGATJON DURING THE! 380 DAY NOTICE Pf!RIOD, WHETHER A$ PlAINtiff .OR IS
NO.T A WAIVER OF THE RIGHT TO COMPEL ARBITRATION, All DISCOVERY OBTAINED IN THE PENDING liT1GAiJON MAY BE usgo IN AHY
SU.BSEO.UENT ARSITRATION PROCEEDING, .
(kl 1"HE PARTJ!S l't,/RTHER A(JRJ;E THAT {I) NO ARBITRATION f>ROCI!EDING HERf.UNDER tiHAlL .SE CERTifllib AS A ClASS ACTION. OR
PROCEED AS A CLASS ACTION. OA ON A BASIS INVOLVING. CLAIMS BROUGHT tN A pURPORT0 REPRESENTATIVE CAPACITY ON BEHALF
Of THE GENERAL PUBLIC, OTHER CUSTOMERS OR POTENTIAL CUSTOMERS OR SIMILARLY SITUATED AND {Ill NO ARBITRATI9N
PROCEI'!PING HEREUNDER Sf;lAt.l"BE WITH, OR JOiNED IN AllY WA':f WITH, ANY OTHER ARBITRATION PROCEEDING,
{IJ ANY ARBITRATOR SELECTED SHAll i!e KNOWLEDGEABLE IN THE SUBJECT MAmR OF THE DISPUTE, EACH OF THE PARTIES SHALL
PAY AN EQUAl. SHARE Of THE ARBITRATION COSTS, fEES, J\ND OF THJl: ARBITRATORS' F.EES, COSTS AND EXPENSES,
{m) All STATUTE$ Of' LIMITATIONS WHICH WOULD OTHEnWJSE BE APPLICAULE SHALL APf>lY TO ANY AND ALL ClAIMS ASSEfltto
IN ANY ARBITRATION PROCEEDING HEREUNDER AND THE COMMENCEMENT dF ANY ARBITRATION P{IOCEEOING TOllS SUCH STATUTES
0F1.1MITATIONS, .
tnl IN ANY ARBITRATION PROCa:DtNG SUBJECT TO THIS PROVISION, THE ARBITRATORS, Oil MAJORITY OF THEM, ARii SPECiFICALLY
EMPOWERE!il TO DECIDE !BY DOCUMENTS ONLY, Oil WiTH A HEARING, AT THE ARillTRA'FORS' SOU! DJ.SCRETION) PREHEARINQ MOTIONS
WHICH ARE SUBSTANTIAlLY SIMILAR TO J>RE.HARING MOTIONS TO DISMISS AND MOTIONS FOR SU/AMARY ADJUDICATION,
-(ol THIS ARBITRATION PRO\JISIDN: SliA.LL SURVIVE ANY TERMINATION, AMENDMENT, OR fiXPIRATJON OF THE A<lAEEMENT IN WHICH
THIS PROVISION IS CONTAINED, UNLESS_AU. Of THE PARTIES OTHERWISE EXPRESSLY AGREE IN WRITING,
(p) THE PARTIES AC){NOWLEOQE THAT THIS AGREEMENT EVIDENCES A TRANSf.CTJON INVOLVING INTERSTATE THE
FEDERAl: ARBITRATION ACT SHAll GOVERN THE INTERPRiiTATION, ENFORCEMNT, AND PROCEEDING$ PURSUANT TO THE ARBITRATION
"LAUSE OF THISAGRfEMEf'i'r. .
jql THE Af\SITRATORS, OR A MAJORITY OF. THEM, SHALL AWARO ATTORNEY'S FEi:S AND COSTS TO THE PREVAILING PARTY.
PURSUANt tO THE TERMS OF THIS
lr) NEITHER THE PARTIES rlciR THE ARSITAATORS MAY DISCLOSE THE EXISTENCE. CONTENT, OR RESULTS OF ANY ARBiTRATION
HEREUNDER WITHOUT PRIOR WRIITfiN CONSENT OF PARTIE$ AND/OR COURT ORDER,
(s) VENUE Of ARSITAATION PROCEEDING HEREUNDER SHALl B.E IN lll:XA!I. COUNTY, TEXAS.
SECTION X. M!seeUIIheOUt, .
\aJ Set:udty lmer11sf Absoltllo,AII lights of tM $Ocur11d Party arxi the se<:urhy Interests Mreunder shill! bfl absolute and uncondhlonellrrupac\We
. .
{IJ MY change In the tlme; amount or pl11ee ot payment Of/or In any other term of, an or any of the Indebtedness, or any other
amendment of walvllt of or any consent to eny Qepenure from thll Ptomluory Not11 or any other"\..oen
!Ill any axchat\9& or re\&11$11 or nonpef1eotlon of all or 2ny part of the: Collateral or any other or eny releaBe from, 11msndmen1 to,
walverof or <!OMent to departure from guaranty, for ell or any, of the lndebtednesi1 or
UIIJ to th.!! fvtklst exteht permltted by law, eny other c:lrcumst11noea whklh might oth&rWt* conrtltutll a defenso iiVa!leble to, of e dlSchBJge of
the _Debtor or .11 th!td party pledgor.
tbl )ndemn!Ro"edon, The Debtor egrees to Indemnify the Secured Petty and hold th4 Secured Parly harmless from tmd against any and eU
Jlabllltlu, obUgetlo.ns, kiUe.l, damliges, penaltl&e, oetiont, judgments:, suite, expenns or disb\Jruroonts of any kind of n11ture what50over
which may b& lmposBd on, by, or th Secured P.6rtyln any WilY re!.!ltli\g, 11'111ny way nrl$log out of or In ocnneetlon with
this SeOu:lty 1\grurnant, the J.orm Documeitts or the eontOmj,Jatod tietob{ or thereby other then thoie atlslng out of \he Secured
bro11ch, defeutt. Mgllgenoa or willful misconduct 1n Its obtlgatlons under thlt SeoUriW Agreement or the' Loan DoCUTMJ'Ita, Vr'lthout
llmltt.tl6n of the foregoing, the Debtor will relmbur1e ths Stcured Pftny for Ill expensn expel\ll&t- fOr leglll;ervices of every kind) of, or
tnoidante.l to "\h& O!S!Ptlation entering Inio Md of any proxls!Oruhmof and of tl)e lndl!PttdOen, aM ll.flY Mtu11l or
attempted Silk!, lease 01 othu dbposttlon of, snd eny exohenge, enforcement, oo/lootlon. to{nptomlse or of any bl th"a Colhlt.eral Md
dMilndlnq or &.ssertlno the rights and of thl Secured P11rty 1n reipeot thereof, 11nd ior thtl oere of 'It Co!!oi&Al ru1d defending or essertlng
the and cli\Jms of.tM l!ecured Party In r.espeot thereof, by ntigetk>n or ottierwiu: includlniJ expenn ollrislll'Bnct;"and aU tuch lxPiinsas 5hi.tt
be D.ebtot's . ' . : . , . :
. .
. ,
...
"
....
.
Page. 8 .of
. ,t
, ;" . ;.
DEBTOR:
B ;
DEaTOR:
B :
DEBTOR:
Title: iJ.><l
.........
- ~ ~ : : . : .
( ~ ~ ~
DEBTOR;
company, General Partner
By:
DEBTOR;
By
DEBTOR:
By:
DEBTOR:
By:
Page 9 of :;
10

IBC0004 06/22/0l
INTERNATIONAL DANK 0!1 COMMERCE SAN ANTONIO
PROGRESS REPORTS .
Olficer: Bruce McMillan
Bor1owen Della Produco
1
LP I S!act LTJ) I StMl Produco
LTD/ ATLEDLTD.
Date of Report: 12/01/2011
Date Balance
01/04/12 $6,455,615
Renewal Mont11ty
Notes II Orl Date Dare Or!. Amt.
Delta P&I$24M
Producf" T .P mthly, a4.8
.. I 04/23/2007 04115/2011 $1,5QO,OOO year amort
rnt. onlymthly,
currntly
04/01/2007 05/15/2011 $21000,000 S7.SM
Delta Int. only mthlyl
Produ.:eLP currently
.. I 06/08t.l010 06/0St.lOll $600,000 $2.5M
Stac[ P&l$24M
Proper11es mthly, a 6.1
LTD Ol/Ol/2005 04/15/:lOll $2,400,000 year amort
__! J!
Stacl P&I$29.2M
P(oduce mthly, a 1 year
LTD Ol/Olt.lOOS 04/15/:lOll $2,000,000 amort
'.-
P&i$1!.9M
ATLBD mthly, a 8.1
LTD 17/12/2005 04/15/:lOll $1,300,000 year amort
--
Totats $9,&00,000
NYPF+l% with Floors of4:25% to 5.00%
Intern A[ Clflsslflcatlon
Economic Monitoring
Special Re.vlew
Watch Pass
\Va(cllllst Subslandard

Tetms Mnfurlf
NYPF
+l%
Floor 07/0 lt.lO 12
4.15%
NYPF
+1%
Floor 07/0lt.l012
4.25%
NYPF
+1%
Floor 07/01t.l012
5.00%
NVPF
+1%
Floor 07/0lt.l012
4.15%
NYPF
+1%
Floor 07/01/2012
4.15%
NYPF
+I%
Floor 07/01/2012
4.15%
X
Current
nalancc
FJF&E, fnv., NR,
$1,224,374 2 properties
$1,856,701 Same as abovo
$587,000
Same as above
$1,497,099 Same as above
$347,307 Sarno as above
$943,134 Same as above
$6,455,615
Delta Produce, LP
2001 S Laredo St
San Antonio, TX 78207-7023
Super Tomato-Avocado, Ltd.
2001 S Laredo St
Staci Properties, Ltd.
2001 S Laredo St
Atled, Ltd.
200 S Laredo St
Craig A. Stokes
Stokes Law Offices, LLP
3330 Oakwell Court, Suite 225
San Antonio, TX 78218
William R. Davis Jr
Allen M. DeBard
Langley & Banack, Inc
745 E Mulberry, Suite 900
United States Trustee - SA12
US Trustee's Office
615 E Houston, Suite 533
PO Box 1539
A&A Transportation, Inc.
4741 College Park
Del Campo Supreme, Inc.
672 W. Frontage Rd.
Noales, AZ 85621
Dimare Newman, Inc.
P.O. Box 517
Newman, CA 95360-0517
Divine Ripe, LLC
9901 S. Jackson Rd. #A
Pharr, TX 78577-6961
Frank's Distributing of Produce
P.O. Box 2020
Nogales, AZ 85628-2020
Harllee Packing, Inc.
P.O. Box 8
Palmetto, FL 34220
Harvest Crown Co., Inc.
P.O. Box 13578
Bakersfield, CA 93389
IFCO Systems NA
5250 Tacco Drive
Alamo Leasing
2010 NW Military Hwy.
J-C Distributing, Inc.
2731 N. Donna Avenue
Nogales, AZ 85621
Kingdom Fresh Produce, Inc.
2243 North Goolie Rd., #A
Donna, TX 78537
International Bank of Commerce
130 E. Travis
Juniper Tomato Grower, Inc.
P.O. Box 38
Greensboro, FL 32330
Mission Produce, Inc.
2500 Vineyad Ave., Suite 300
Oxnard, CA 93036
Rio Queen Citrus
4012 E. Goodwin Rd.
Mission, TX 78574
Royal Flavor, LLC
2655 Melksee St.
San Diego, CA 92154
Internal Revenue Service
P.O. Box 7346
Philadelphia, PA 19101-7346
Valero Marketing & Supply
P.O. Box 300
Amarillo, TX 79105-0300
A & D Carriers
4126 Luckenbach Rd.
A&A Concepts, LLC
1219 S. Zarzamora St.
Averitt Brokerage Co., Inc.
Mr. David Faubion
9999 Perrin Beitel, Suite B
B. Catalani, Inc.
1500 S. Zarzamora, #326
Banana Distributing Company
1500 S. Zarzamora
12-50073-a998 Doc#357-25 Filed 10/17/12 Entered 10/17/12 16:18:16 Service List Pg 1
of 3
Coosemans Houston, Inc.
3124 Produce Row
Houston, TX 77023
Fresh Farm Direct, LLC
106 Adams St., Suite 2A
Monte Vista, CLO 81144
Gonzalez Mexican Produce
2501 W. Military Hwy., A-23
McAllen, TX 78503
P.O. Box 8
Palmetto, FL 34220
Henry Avocado Corp.
P.O. Box 300867
Escondidio, CA 92030-0867
Kitchen Pride
P.O. Box 585
Gonzales, TX 78629
Le Best Banana Supply Co.
P.O. Box 295
Hidalgo, TX 78557
M&P Logistics LP
1500 S. Zarzamora, #308
Maxim Egg Farms
P.O. BOx 200805
Dallas, TX 75320-0805
Rio Bravo Produce
1006 S. Cesar Chavez
Edinburg, TX 78542
Slankard Produce Co., Inc.
1500 S. Zarzamora
Sunriver Sales
P.O. Box 2738
Visalia, CA 93279
Touchstone & Associates
1500 S. Zarzamora St., #205
Willson Davis Company
1500 S. Zarzamora
Robert E. Goldman
1 East Broward Blvd. Ste. 700
Fort Lauderdale, FL 33301
Tijerina & Sons, LLC
c/o Zachary B. Aoki
Thurman & Phillips, P.C.
8000 IH-10 West, Suite 1000
Market Dispatch Service, Inc.
c/o Celinda Baez Guerra
Flume Law Firm, LLP
1020 N.E. Loop 410, Ste. 200
Paul T. Curl/ Diana M. Geis
Curl & Stahl, P.C.
700 N. St. Marys Street, Suite 1930
David G. Aelvoet
Linebarger Gogan Blair
711 Navarro, Suite 300
Muller Trading
c/o Bruce W. Akerly
Cantey Hanger LLP
1999 Bryan St., Suite 3300
Dallas, TX 75201
Wilson Davis Co.
c/o Paul D. Barkhurst
Barkhurst & Hinojosa, PC
110 Broadway, Suite 350
Flatiron Capital
c/o Robert L. Barrows
800 Broadway
Divine Ripe, Rio Queen Citrus, Eco-Farms
Sales, Garguilo, Inc.
c/o Michael J. Black
Burns & Black
750 Rittiman Road
W. Scott Jenson
c/o Elliott S. Cappuccio/Randall
Pulman/Leslie S. Hyman
Pulman Cappuccio Pullen & Benson
2161 NW Military Hwy., Suite 400
General Electric Capital Corp, NMHG
Financial Services, Inc.
c/o William H. Daniel
McGinnis, Lochridge & Kilgore
600 Congress Ave., Ste. 2100
Austin, X 78701
Steven E. Nurenberg
Meuers Law Firm
5395 Park Centra Court
Naples, FL 34109
PACCAR Financial Corp.
c/o Robert J. Reagan
Reagan McLain Lee & Hatch, LLP
6060 North Central Expy., Ste. 690
Dallas, TX 75206
Divine Ripe, LLC
c/o John Kurt Stephen
Cardenas & Stephen
100 South Bicentennial
McAllen, TX 78501
Daimler Trust
c/o Stephen G. Wilcox
Bassel & Wilcox
P.O. Box 11509
Fort Worth, TX 76110-0509
c/o Chris S. Tillmanns
Bracewell & Giuliani, LLP
711 Louisiana Street, Ste. 2300
Houston, TX 77002-2770
of 3
c/o Jake Blanchard
Fowler White Boggs P.A.
501 E. Kennedy Blvd., Ste. 1700
Tampa, FL 33602
Key Equipment Finance
c/o Mark W. Stout
Padfield & Stout, LLP
777 Main Street, Suite 1920
Fort Worth, TX 76102
Guadalupe County
c/o Lee Gordon
McCreary, Veselka, Bragg & Allen
P.O. Box 1269
Round Rock, Texas 78680
Jason A. Starks
Assistant Attorney General
P.O. Box 12548
Austin, TX 78711-2548
of 3

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UNITED STATES BANKRUPTCY COURT

WESTERN DISTRICT OF TEXAS

DELTA PRODUCE, L.P.

Debtors Jointly Administered

, Whether one or mo.f,) pay to order of Fnternat:i.Q'nal Bank of Commerc'a .

oonltol whi9h Len<!er reasonably

itb!lve, to replac,e wop\-oqt

lJMow!' mr.iuM ua w L>.d

its Chief Executive CHloe;

wfi9le. <!nd IT)

... ::r :l;.:r

... .. :. :.J . . .. ' _;_,

based upon the

s), oa56\U 1-.r' . . :

. .', .._', .... .. ..... ... :: .. [,:;::

outstand"wg and unpaid' principal. ictuedai!d UiJP,ald.lnterest

lJOrtdl.vtr-.renews and' (!Xthld$ the aJ1d tmy .an:q ell

OF A.rN PA;.;j.ro AND SHALL :mv OTHI;R AND .THI;

DAYS AFTER DJS'f.UTE liAS ARISEN. A DISPUTE IS DEFINED TO HAVE ARISEN

tiih'll .. ,: :1:.' -:::

;t;,'l,;j(:\ ': ..... I ,;:,1 ! :. ',';<i, 1 1:: I f,

:Bonuwer teyiews ;l!lld' (lmndt the--Not,

.. .. :.'.: ... ; ... ::.', 'f.' .'i:;

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