Exhibit 10.7
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DEBTOR NAME AND ADDRESS SECURED PARTY NAME AND ADDRESS
TEXAS TIMBERJACK, INC. BANCORPSOUTH BANK
6004 S US HWY 59 501 SOUTH WASHINGTON
LUFKIN, TX 75904 MARSHALL, TX 75670
Type: [ ] individual [ ] partnership [X] corporation [ ]
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State of organization/registration (if applicable)
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[ ] If checked, refer to addendum for additional Debtors and signatures.
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COMMERCIAL SECURITY AGREEMENT
The date of this Commercial Security Agreement (Agreement) is APRIL 12, 2002 .
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SECURED DEBTS. This Agreement will secure all sums advanced by Secured Party
under the terms of this Agreement and the payment and performance of the
following described Secured Debts that (Check one) [X] Debtor [ ]
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(Borrower) owe(s) to Secured Party:
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[ ] Specific Debt(s). The debt(s), liability or obligations evidenced by
(describe):
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and all
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extensions, renewals, refinancing, modifications and replacements of the
debt, liability or obligations.
[X] All Debt(s). All present and future debts, even if this Agreement is not
referenced, the debts are also secured by other collateral, or the
future debt is unrelated to or of a different type than the current
debt. Nothing in this Agreement is a commitment to make future loans or
advances.
SECURITY INTEREST. To secure the payment and performance of the Secured Debts,
Debtor gives Secured Party a security interest in all of the Property described
in this Agreement that Debtor owns or has sufficient rights in which to
transfer an interest, now or in the future, wherever the Property is or will be
located, and all proceeds and products of the Property. "Property" includes all
parts, accessories, repairs, replacements, Improvements, and accessions to the
Property; any original evidence of title or ownership; and all obligations that
support the payment or performance of the Property. "Proceeds" includes
anything acquired upon the sale, lease, license, exchange, or other disposition
of the Property; any rights and claims arising from the Property; and any
collections and distributions on account of the Property. This Agreement
remains in effect until termination in writing, even if the Secured Debts are
paid and Secured Party is no longer obligated to advance funds to Debtor or
Borrower.
PROPERTY DESCRIPTION. The Property is described as follows:
[ ] Accounts and Other Rights to Payment: All rights to payment, whether or
not earned by performance, including, but not limited to, payment for
property or services sold, leased, rented, licensed, or assigned.
This includes any rights and interests (including all liens) which
Debtor may have by law or agreement against any account debtor or
obligor of Debtor.
[ ] Inventory: All inventory held for ultimate sale or lease, or which has
been or will be supplied under contracts of service, or which are raw
materials, work in process, or materials used or consumed in Debtor's
business.
[ ] Equipment: All equipment including, but no limited to, all machinery,
vehicles, furniture, fixtures, manufacturing equipment, farm machinery
and equipment, shop equipment, office and record keeping equipment, and
parts and tools. The property includes any equipment described in a
list or schedule Debtor gives to Secured Property, but such a list is
not necessary to create a valid security interest in all of Debtor's
equipment.
[ ] Instruments and Chattel Paper: All instruments, negotiable instruments
and promissory notes and any other writings or records that evidence the
right to payment of a monetary obligation, and tangible and electronic
chattel paper.
[ ] General Intangibles: All general intangibles including, but no limited
to, tax refunds, patents and applications for patents, copyrights,
trademarks, trade secrets, good will, trade names, customer lists,
permits and franchises, payment intangibles, computer programs and all
supporting information provided in connection with a transaction
relating to computer programs, and the right to use Debtor's name.
[ ] Documents: All documents of title including, but not limited to, bill of
lading, dock warrants and receipts, and warehouse receipts.
[ ] Farm Products and Supplies: All farm products including, but not limited
to, all poultry and livestock and their young, along with their
produce, products, and replacements; all crops, annual or perennial, and
all products of the crops; and all feed, seed, fertilizer, medicines,
and other supplies used or produced in Debtor's farming operations.
[ ] Government Payments and Programs: All payments, accounts, general
intangibles, benefits including, but not limited to, payments in kind,
deficiency payments, letters of entitlement, warehouse receipts, storage
payments, emergency assistance and diversion payments, production
flexibility contracts, and conservation reserve payments under any
preexisting, current, or future Federal or state government program.
[ ] Investment Property: All investment property including, but not limited
to, certificated securities, uncertificated securities, securities
entitlements, securities accounts, commodity contracts, commodity
accounts, and financial assets.
[ ] Deposit Accounts: All deposit accounts including, but not limited to,
demand, time, savings, passbook, and similar accounts.
[X] Specific Property Description: The Property includes, but not limited
by, the following (if required, provide real estate description):
ALL INVENTORY NOW OWNED AND HEREAFTER
ACQUIRED BY DEBTOR WHEREVER LOCATED,
EXCEPT PARTS INVENTORY
6004 S US HWY 59
LUFKIN, TX 75904
USE OF PROPERTY. The Property will be used for [ ] personal [X] business
[ ] agricultural [ ] purposes.
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THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN 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.
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SIGNATURES. Debtor agrees to the terms on pages 1 and 2 of this Agreement and
acknowledges receipt of a copy of this Agreement.
DEBTOR SECURED PARTY
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