Common use of GOVERNMENT PAYMENTS AND PROGRAMS Clause in Contracts

GOVERNMENT PAYMENTS AND PROGRAMS. All payments, accounts, general intangibles, or other benefits (including, but not limited to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency assistance payments, diversion payments, and conservation reserve payments) in which I now have and in the future may have any rights or interest and which arise under or as a result of any preexisting, current or future Federal or state governmental program (including, but not limited to, all programs administered by the Commodity Credit Corporation and the ASCS). [X] THE SECURED PROPERTY INCLUDES, BUT IS NOT LIMITED BY, THE FOLLOWING: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF If this agreement covers timber to be cut, minerals (including oil and gas), fixtures or crops growing or to be grown, the legal description is: ------------------------------------------------------------------------- I am a(n) [ ] Individual [ ] partnership [X] corporation [ ] ________________________________________________ [ ] If checked, file this agreement in the real estate records. Record Owner (if not me): ___________________________________________________________________ The property will be used for [ ] personal [X] business [ ] agricultural [ ]________________ reasons. METROBANK, N.A. GALLERIA BRANCH (Secured Party's Name) By: AMAL GUNERAINE Title: VICE PRESIDENT AMERICAN ENERGY SERVICES, INC. (Debtor's Name) By: /s/ PAT ELLIOTT NAME: Title: PRESIDENT By: XXXX: Title:

GOVERNMENT PAYMENTS AND PROGRAMS. All payments, accounts, general intangibles, or other benefits (including, but not limited to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency assistance payments, diversion payments, and conservation reserve payments) in which I now have and in the future may have any rights or interest and which arise under or as a result of any preexisting, current or future Federal or state governmental program (including, but not limited to, all programs administered by the Commodity Credit Corporation and the ASCS). [X] The secured property includes, but is not limited by, the following: ASSIGNMENT OF LIFE INSURANCE POLICY #0352046 I/A/O 250,000.00 VESTED IN THE SECURED PROPERTY INCLUDES, BUT IS NOT LIMITED BY, THE FOLLOWING: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF NAME OF XXXX X. XXXXXX ISSUED BY JEFFERSON PIOLT FINANCIAL If this agreement covers timber to be cut, minerals (including oil and gas), fixtures or crops growing or to be grown, the legal description is: ------------------------------------------------------------------------- I am a(n) [ ] Individual [ ] partnership [X] corporation [ ] Record Owner (if not me):_______________ FAITH WALK DESIGNS, INC. ________________________________________ [ ] If checked, file this agreement in the real estate records. Record Owner (if not me): ___________________________------------------------------------- ________________________________________ (Debtor's Names) The property will be used for [ ] personal By: [X] business [ ] agricultural ------------------------------------- [ ]________________ reasons. METROBANK, N.A. GALLERIA BRANCH XXXX XXXXXXX XXXXXX Sterling Bank Title: PRESIDENT ----------------------------------------- ------------------------------------- (Secured Party's Name) By: AMAL GUNERAINE By: ----------------------------------------- ------------------------------------- XXXX X. XXXXX Title: VICE PRESIDENT AMERICAN ENERGY SERVICES, INCSR. (Debtor's Name) By: /s/ PAT ELLIOTT NAME: VP Title: PRESIDENT By: XXXX: Title:----------------------------------------- ------------------------------------- Third Party Pledge Agreement 121900054 DATE November 16, 2000 PLEDGOR XXXX X. XXXXXX SECURED Sterling Bank PARTY -------------------------------------------------------------------------------- XXXXXXXX XX 00000 DUNBROOK ADDRESS P.O. Box 924009 RESIDENCE ADDRESS -------------------------------------------------------------------------------- CITY, CITY, STATE & HOUSOTN, TEXAS 00000 XXXXX & Xxxxxxx, Xxxxx 00000-0000 ZIP CODE ZIP CODE --------------------------------------------------------------------------------

GOVERNMENT PAYMENTS AND PROGRAMS. All payments, accounts, general intangibles, or other benefits (including, but not limited to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency assistance payments, diversion payments, and conservation reserve payments) in which I now have and in the future may have any rights or interest and which arise under or as a result of any preexisting, current or future Federal or state governmental program (including, but not limited to, all programs administered by the Commodity Credit Corporation and the ASCS). [X] THE SECURED PROPERTY INCLUDES, BUT IS NOT LIMITED BY, THE FOLLOWING: SEE EXHIBIT "ALL INVENTORY AND PROCEED FROM BECHTEL: P.O. #22700-100-L-13A-LAC & P.O. #22700-100-J-41J-LAC; A" ATTACHED HERETO AND MADE /R FROM IRS IN REGARD TO A PART HEREOF TAX REFUND. If this agreement covers timber to be cut, minerals (including oil and gas), fixtures or crops growing or to be grown, the legal description is: ------------------------------------------------------------------------- I am a(n) [ ] Individual individual [ ] partnership [X] corporation [ ] ]___________________________________________________________________________ [ ] If checked, file this agreement in the real estate records. Record Owner (if not me): ______________________________________________________ ________________________________________________________________________________ _______________________________________________________________________________. The property will be used for [ ] personal [X] business [ ] agricultural [ ]] ________________________________________ reasons. METROBANK, N.A. GALLERIA BRANCH (Secured Party's Name) By: ____________________________________________________________________________ AMAL GUNERAINE GUNERATNE Title: VICE PRESIDENT AMERICAN ENERGY SERVICES, INC. (Debtor's Name) By: /s/ PAT LARRY ELLIOTT NAME: Title: PRESIDENT By: XXXX/s/ PAT ELLIOTT XX XXX ELLIOTT Title: Title:VICE PRESIDENT

GOVERNMENT PAYMENTS AND PROGRAMS. All payments, accounts, general intangibles, or other benefits (including, but not limited to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency assistance payments, diversion payments, and conservation reserve payments) in which I now have have, and in the future may have any rights or interest and which arise under or as a result of any preexisting, current or future Federal or state governmental program (including, but not limited to, all programs administered by the Commodity Credit Corporation and the ASCS). [X] THE SECURED PROPERTY INCLUDESThe secured property includes, BUT IS NOT LIMITED BYbut is not limited by, THE FOLLOWINGthe following: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF Real Estate Mortgage dated 01/27/98 Personal Guarantee of Xxxxxxxxx X. Xxxxx If this agreement covers timber to be cut, minerals (including oil and gas), fixtures or crops growing or to be grown, the legal description of the real estate is: ------------------------------------------------------------------------- I am a(n) [ ] Individual [ ] partnership [X] corporation [ ] ________________________________________________________________________________ [ ________________________________________________________________________________ ________________________________________________________________________________ [_] If checked, file this agreement in on the real estate records. Record Owner owner (if not me): )________________________________________________________ ________________________________________________________________________________ The property Leap Partnership, Inc., co-maker by: /s/ Xxxxxx Xxxxxxxxx ---------------------------------- Xxxxxx Xxxxxxxxx, President by: /s/ Xxxxxx X. Xxxxxxxxx ---------------------------------- Xxxxxx X. Xxxxxxxxx, Secretary The Property will be used for [ a [_] personal [X_] business [ [_] agricultural [ ][_] _____________________________________ reasonspurpose. METROBANKSIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON PAGE 2). I have received a copy on today's date. The Leap Group, N.A. GALLERIA BRANCH (Secured Party's Name) By: AMAL GUNERAINE Title: VICE PRESIDENT AMERICAN ENERGY SERVICES, INC. (Debtor's Name) ByInc. by: /s/ PAT ELLIOTT NAMEXxxxxxxx X. Xxxxx ---------------------------------- Xxxxxxxx X. Xxxxx, Acting CEO by: Title: PRESIDENT By: XXXX: Title:/s/ Xxxxxx X. Xxxxxxxxx ---------------------------------- Xxxxxx X. Xxxxxxxxx, Secretary ________________________________________________________________________________ (page 1 of 2)

GOVERNMENT PAYMENTS AND PROGRAMS. All payments, accounts, general intangibles, or other benefits (including, but not limited to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency assistance payments, diversion payments, and conservation reserve payments) in which I now have and in the future may have any rights or interest and which arise under or as a result of any preexisting, current or future Federal or state governmental government program (including, but not limited to, all programs administered by the Commodity Credit Corporation and the ASCS). [X] THE SECURED PROPERTY INCLUDES, BUT IS NOT LIMITED BY, THE FOLLOWING: SEE EXHIBIT "A" ATTACHED HERETO MERRXXX XXXCX XXXT #592-23G75 IN THE NAME OF BOB XXX CINDX XXXX XX THE AMOUNT OF $289,299.00 AS OF 2/29/2000; MERRXXX XXXCX XXXT #592-23G74 IN THE NAME OF ANDY AND MADE A PART HEREOF JANNX XXXXX XX THE AMOUNT OF $337,773.00 AS OF 2/29/2000; PERSONAL GUARANTIES FROM DONAXX XXX XXX SANDXX XXXXXX XXXXXXXXX, XXB XXX CINDX XXXX XXX ANDY AND JANNX XXXXX. If this agreement covers timber to be cut, minerals (including oil and gas), fixtures or crops growing or to be grown, the legal description of the real estate is: ------------------------------------------------------------------------- I am a(n) [ ] Individual [ ] partnership [X] corporation [ ] ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ [ ] If checked, file this agreement in on the real estate records. Record Owner owner (if not me): ) ________________________________________________________________________ ________________________________________________________________________________ The property Property will be used for [ a [X] personal [X[ ] business [ ] agricultural [ ]] purpose. ____________________________ reasonsADDITIONAL TERMS OF THE SECURITY AGREEMENT GENERALLY - The agreement secures this note and any other debt I have with you, now or later. METROBANKHowever, N.A. GALLERIA BRANCH it will not secure other debts if you fail with respect to such other debts, to make any required disclosure about this security agreement or if you fail to give any required notice of the right of rescission. If property described in this agreement is located in another state, this agreement may also, in some circumstances, be governed by the law of the state in which the Property is located. OWNERSHIP AND DUTIES TOWARD PROPERTY - I represent that I own all of the Property, or to the extent this is a purchase money security interest I will acquire ownership of the Property with the proceeds of the loan. I will defend it against any other claim. Your claim to the Property is ahead of the claims of any other creditor. I agree to do whatever you require to protect your security interest and to keep your claim in the Property ahead of the claims of other creditors. I will not do anything to harm your position. I will keep books, records and accounts about the Property and my business in general. I will let you examine these records at any reasonable time. I will prepare any report or accounting you request which deals with the Property. I will keep the Property in my possession and will keep it in good repair and use it only for the purpose(s) described on page 3 of this agreement. I will not change this specified use without your express written permission. I represent that I am the original owner of the Property and, if I am not, that I have provided you with a list of prior owners of the Property. I will keep the Property at my address listed on page 1 of this agreement, unless we agree I may keep it at another location. If the Property is to be used in another state, I will give you a list of those states. I will not try to sell the Property unless it is inventory or I receive your written permission to do so. If I sell the Property I will have the payment made payable to the order of you and me. You may demand immediate payment of the debt(s) if the debtor is not a natural person and without your written consent; (Secured Party's Name1) By: AMAL GUNERAINE Title: VICE PRESIDENT AMERICAN ENERGY SERVICESa beneficial interest in the debtor is sold or transferred, INCor (2) there is a change in either the identity or number of members of a partnership, or (3) there is a change in ownership of more than 25 percent of the voting stock of a corporation. (Debtor's Name) By: /s/ PAT ELLIOTT NAME: Title: PRESIDENT By: XXXX: Title:I will pay all taxes and charges on the Property as they become due. You have the right of reasonable access in order to inspect the Property. I will immediately inform you of any loss or damage to the Property. If I fail to perform any of my duties under this security agreement, or any mortgage, deed of trust, lien or other security interest, you may without notice to me perform the duties or cause them to be performed. Your right to perform for me shall not create an obligation to perform and your failure to perform will not preclude you from exercising any of your other rights under the law of this security agreement.