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Master Commercial Hire Purchase Agreement - GE Capital Australia Ltd. and Total Energy Systems Ltd.

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                   MASTER COMMERCIAL HIRE PURCHASE AGREEMENT
                               WESTERN AUSTRALIA


                                    BETWEEN


                         GE CAPITAL AUSTRALIA LIMITED
                             (A.C.N. 008 562 534)


                                      AND


                         TOTAL ENERGY SYSTEMS LIMITED
                             (A.C.N. 010 876 150)
<PAGE>
 
                   MASTER COMMERCIAL HIRE PURCHASE AGREEMENT
                                                    Agreement
                                                    Number: CE0714

THIS AGREEMENT is made

BETWEEN:  GE CAPITAL AUSTRALIA LIMITED (A.C.N. 008 562 534), a company
          incorporated in the Australian Capital Territory and having its
          principal office at 88 Walker Street, North Sydney in the State of New
          South Wales, of the one part ("GE Capital")

AND       THE PARTY OR PARTIES named and described in the Schedule hereto, of
          the other part ("Customer").


                             PART 1 - PRELIMINARY

1.1  DEFINITIONS

     In this Agreement unless the context otherwise requires:

     "ACCEPTANCE DATE" means, in relation to any Equipment, the date that the
     Supplement for that Equipment is accepted by GE Capital;

     "CUSTOMER" means the party or parties described in the Schedule to this
     Agreement as the Customer (and where more than one reference to "Customer"
     is a reference to them jointly, each of them severally, and to any two or
     more of them jointly) and, in the case of an individual, his executors and
     administrators and, in the case of a company, its successors;

     "EQUIPMENT" means the goods specified in Supplements to this Agreement;

     "EXPIRY DATE" means, in relation to any Equipment, the last day of the
     Payment Period of the Supplement in which that Equipment is specified or
     such other later date as GE Capital agrees to in writing;

     "GE CAPITAL" means GE Capital Australia Limited and its successors and
     assigns.

     "INSTALLATION SITE" means the installation site of any Equipment as
     specified by the Customer in a Supplement;

     "OFFICER" means a duly authorized representative of GE 

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     Capital;

     "PAYMENT PERIOD" means the period during which the Customer shall make
     Periodic Payments as set out in Clause 2.4 hereof;

     "PERIODIC PAYMENTS" means the instalments referred to in a Supplement.

     "SUPPLEMENT" means a supplement to this Agreement which refers to this
     agreement and which has been signed by the Customer and accepted by GE
     Capital.

1.2  FORMATION OF AGREEMENT

     This Agreement and any Supplement shall not bind GE Capital unless and
     until it has been accepted and signed on behalf of GE Capital by an Officer
     of GE Capital at its Head Office in Sydney. The signing of this Agreement
     and of any Supplement on behalf of GE Capital shall of itself and without
     notice thereof to the Customer constitute an acceptance creating a contract
     between GE Capital and the Customer. Such acceptance shall be evidenced by
     the return to the Customer in the case of this Agreement of an
     acknowledgment copy of this Agreement and in the case of any Supplement, an
     acknowledgment copy of such Supplement, signed by an Officer of GE Capital.

1.3  TERM OF AGREEMENT

     This Agreement shall be effective and bind the Customer from the date from
     which it is signed on behalf of GE Capital and shall continue, unless
     sooner terminated in accordance with this Agreement, in full force and
     effect until all the Customer's obligations hereunder and under any
     Supplement are fulfilled.

1.4  SUPPLEMENTS

     This Agreement shall be read in conjunction with any Supplement, which
     shall be construed as an integral part of this Agreement. The Customer
     agrees that a Supplement shall be effective and bind the Customer from the
     date on which it is accepted by GE Capital and that the Customer shall be
     obliged to take delivery of and take on hire the Equipment specified in the
     Supplement and observe and perform its obligations contained herein with
     respect to that Equipment as from the date of such acceptance including,
     without limiting the generality of the foregoing, its obligations to insure
     the Equipment from the date that Equipment is delivered to the Customer.

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                   PART II - DELIVERY AND METHOD OF PAYMENT
2.1  HIRE

     In accordance with the terms and conditions of this Agreement, GE Capital
     agrees, at the Customer's request from time to time, to acquire that
     Equipment specified in a Supplement and to hire that Equipment to the
     Customer.

2.2  COMMENCEMENT OF HIRE

     The hire of any Equipment specified in a Supplement shall commence
     immediately on the date of the delivery of that Equipment to the Customer
     and shall continue, subject to Clause 2.6, and subject to the Customer
     exercising its rights under any applicable laws until the last day of the
     Payment Period of that Supplement.

2.3  DELIVERY

     (a)  The Customer shall arrange for delivery of the Equipment specified in
          a Supplement to the Customer's Installation Site and ensure that the
          Equipment is installed and made ready for operation in accordance with
          the manufacturer's specifications, all at no cost to GE Capital.

     (b)  The Customer agrees that to the extent permitted by law GE Capital
          shall have no responsibility to the Customer for or arising out of any
          delay in delivery of any Equipment. The Customer and not GE Capital
          shall to the extent permitted by law bear the risk of damage to the
          Equipment incurred in the course of delivery.

     (c)  GE Capital does not at any time make any representation or warranty
          that the premises in which the Equipment is to be installed are in a
          condition suitable for the delivery, installation or operation of the
          Equipment.

2.4  PERIODIC PAYMENTS

     (a)  A Supplement shall specify a payment period ("Payment Period") which
          shall commence on the first day of the month following the last
          Acceptance Date to occur with respect to the Equipment specified in
          that Supplement and shall continue for the number of complete calendar
          months specified in that Supplement.

     (b)  The Customer shall pay to GE Capital the Periodic Payments specified
          in a Supplement in advance as follows:

          (i)  the first Periodic Payments shall be paid on the first day of the
               Payment Period; and

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          (ii) the remaining Periodic Payments shall be paid on the first day of
               each and every month (or such other periodic period as may be
               specified in that Supplement) during the Payment Period of that
               Supplement.

     (c)  The Periodic Payments specified in a Supplement shall be paid in
          Australian dollars to GE Capital at its address specified above or at
          such other place as GE Capital may direct.

     (d)  The Periodic Payments payable in respect of Equipment supplied under
          Supplements from time to time shall be calculated by reference to GE
          Capital's costs of funds current at the time of acceptance by GE
          Capital of such Supplement.

     (e)  The Customer shall pay any other moneys payable under this Agreement
          directly to GE Capital.

2.5  OVERDUE MONEYS

     If any Periodic Payment or other moneys payable hereunder remain unpaid for
     more than ten (10) days after the due date for payment thereof, the
     Customer shall pay interest on those moneys calculated on a daily basis at
     the rate equal to the aggregate of the 90 Days Bank Bill Swap Reference
     Rate as published in the Australian Financial Review on the date on which
     the Overdue Moneys first become payable and 4% per annum from and after
     such due date until payment of such moneys in fall to GE Capital. The
     Customer acknowledges that such interest is a genuine pre-estimate of GE
     Capital's cost of funding such overdue moneys and is not a penalty.

2.6  OPTION TO PURCHASE EQUIPMENT

     If the Customer is not in breach of any term of this Agreement and no event
     of default as specified in Clause 3.15 has occurred that it is continuing,
     the Customer may, at any time elect to purchase the Equipment specified in
     that Supplement by:

     (a)  giving fourteen (14) days prior written notice to GE Capital; and

     (b)  where the Customer elects to purchase that Equipment during the
          Payment Period of that Supplement - paying to GE Capital an amount
          equal to the Net Balance Due.

     Upon receipt by GE Capital of all such moneys on or before the Exercise
     Date, GE Capital shall sell that Equipment to the 

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<PAGE>
 
     Customer on the Exercise Date PROVIDED THAT unless and until the Customer
     makes such election, GE Capital shall retain full title and property to and
     in that Equipment and the Customer shall be bailee of the Equipment only to
     use the same subject to the terms and conditions contained herein.

     For the purposes of this Agreement the Net Balance Due shall be the balance
     originally payable under the Agreement less any amounts (other than the
     deposit) paid or provided, whether by cash or other consideration, by or on
     behalf of the Customer under the Agreement and less -

     (a)  The statutory rebate for terms charges;

     (b)  If the Customer requires any contract for insurance to be cancelled,
          the statutory rebate for insurance, and

     (c)  If the Customer requires any contract for maintenance to be cancelled,
          the statutory rebate for maintenance.


                     PART III GENERAL TERMS AND CONDITIONS

3.1  USE OF EQUIPMENT

     The Customer agrees that the Equipment shall be used in a proper and
     skillful manner by properly trained and competent persons in compliance
     with the manufacturer's requirements, recommendations and instruction
     manuals and with all laws, rules and regulations of the jurisdiction
     wherein the Equipment is located from time to time. The Customer shall pay
     all costs, expenses, fees and charges incurred in connection with the use
     and operation of the Equipment including but not limited to supplies,
     fittings and accessories.

3.2  CONTROL OF EQUIPMENT

     The Customer shall at all times retain possession and control of the
     Equipment and shall not to the extent permitted by law, without the prior
     written consent of GE Capital, sell, assign, pledge, lease. mortgage,
     charge, let or hire, part with possession of or otherwise dispose of or
     deal with the Equipment or any part thereof or its interest therein or any
     part thereof, or remove any item of Equipment from the Installation Site
     and the Customer shall not agree, attempt, offer or purport to do any such
     things.

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<PAGE>
 
3.3  REGISTRATION AND INSURANCE OF MOTOR VEHICLES OR PRESCRIBED GOODS

     (a)  If the Equipment is a motor vehicle, the Customer shall have and keep
          at its own cost the same duly registered at all times as required by
          any relevant law in the name of the Customer as if it were the owner
          and have and keep the same insured against third party risk to the
          extent required by law by a policy insuring to the benefit of both
          parties hereto.

     (b)  If the Equipment consists of goods to which a register of security
          interest or encumbrances applies in the relevant State of Territory,
          the interests of GE Capital shall be registered in the appropriate
          register as owner of the Equipment.

     (c)  If the Equipment consists of goods GE Capital's title to which may be
          defeated by a subsequent bona fide purchaser of the goods for value
          without notice of GE Capital's interest, the Customer shall ensure
          that the goods are sufficiently identified, marked and displayed so as
          to put third parties on notice of the ownership of GE Capital in the
          goods. GE Capital may at anytime affix such identifying plates or
          marks on or to the goods and will at all reasonable times be given
          access to the goods for such purposes. The Customer shall indemnify GE
          Capital to the full value of the Equipment should GE Capital's
          interest and title to the Equipment be lost through the Customer's
          breach of this provision.

3.4  MAINTENANCE AND REPAIRS

     (a)  The Customer agrees that the Equipment shall be maintained in a proper
          and skillful manner by properly trained and competent persons in
          compliance with the manufacturer's requirements, recommendations and
          instruction manuals and with all laws, rules and regulations of the
          jurisdiction wherein the Equipment is located from time to time. The
          Customer shall pay all costs, expenses, fees and charges incurred in
          connection with maintenance of the Equipment.

     (b)  The Customer shall keep the Equipment in proper and secure premises
          and shall at all times, at its own expense, keep the Equipment in
          proper working order and in as good condition and repair as when
          delivered (reasonable wear and tear expected) and shall, if the
          Equipment shall be or become in any way out of order or in need of
          repair, have the same repaired by skilled and competent persons.

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<PAGE>
 
     (c)  The Customer shall permit GE Capital subject to any restriction in any
          law to enter upon the premises whereon the Equipment may or is
          supposed to be during the normal business hours of the Customer
          provided reasonable notice (except in an emergency where no notice
          shall be required) it is first given to the Customer for the purpose
          of inspecting and testing the condition thereof or examining the state
          of repair thereof and GE Capital may serve upon the Customer a notice
          in writing of any defect or damage for the repair or replacement of
          which the Customer may be responsible hereunder requiring the Customer
          within a reasonable time to repair or replace the same. The Customer
          shall to the extent permitted by law at all times comply with the
          reasonable requirements of GE Capital as to the repair, renewal or
          replacement of any Equipment in respect of which the Customer is
          liable. In the event of the Customer failing to carry out the
          requirements of GE Capital it shall be lawful but not obligatory for
          GE Capital to enter upon such premises with workmen and others and all
          necessary materials for the purposes of carrying out such
          requirements. The Customer shall reimburse GE Capital on demand for
          all costs reasonably incurred by GE Capital pursuant to this Clause.

     (d)  The Customer shall notify GE Capital in writing immediately if any
          defect or fault (except those of a trivial nature) occurs in the
          Equipment or if any repairs (except those of a trivial nature) become
          necessary for the satisfactory working of the Equipment.

3.5  TAXES, STAMP DUTY AND COSTS

     The Customer agrees to pay and indemnify GE Capital to the extent permitted
     by law against any and all taxes, costs, fees, duties (including stamp
     duty, if any, except where the payment of such stamp duty by the Customer
     is prohibited by law) or levies now or hereafter imposed or paid or payable
     by GE Capital or payable by the Customer, in respect of this Agreement, any
     of the matters contained herein, the Equipment, any Supplement, Periodic
     Payments or the receipt by GE Capital of any moneys hereunder, together
     with any penalties or fines in respect of late payment or non-payment
     thereof and the Customer shall also pay all other costs, expenses and
     outgoings (including legal costs on a solicitor and client basis) incurred
     by GE Capital in relation to this Agreement or in the exercise or attempted
     exercise of any rights or powers conferred on GE Capital hereunder or by
     the general law.

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<PAGE>
 
3.6  RISK

     (a)  The Customer shall bear all risk of loss of, damage to or destruction
          of the Equipment from date of delivery to the Customer's premises
          until the Equipment is returned to GE Capital whether or not the
          Equipment is covered by insurance.

     (b)  The Customer assumes to the extent permitted by law all risks and
          liability for the Equipment and for the use, operation, maintenance,
          repair and storage thereof (including but not limited to loss of
          profits, loss of revenue, consequential damage, inconvenience or loss
          of use for any period of time) and for injuries to or deaths of
          persons and damage to property however arising from or incidental to
          such use, operation, maintenance, repair or storage whether such
          injuries to or deaths of persons be of agents or employees of the
          Customer or of third parties or such damage to property be of the
          Customer or of third parties.

3.7  INSURANCE

     (a)  The Customer shall at its own cost and in the name of GE Capital and
          the Customer for their respective rights and interests keep the
          Equipment insured for an amount not less than the full insurable value
          thereof with some reputable insurance company in Australia in such
          form and subject to such conditions and covering all such risks as GE
          Capital may from time to time require, and, in the absence of any
          nomination, against loss or damage occasioned by fire, accident,
          theft, windstorm, malicious act- storm, tempest, explosion, rain,
          water, flood, earthquake and lightning. In addition, the Customer
          shall at its own cost take out and maintain insurances against public
          risk liability and other risks which a reasonably prudent
          businessperson would insure against. The Customer shall deliver such
          insurances to GE Capital upon demand and shall duly and punctually pay
          all premiums necessary for effecting and keeping such insurances in
          force and shall furnish to GE Capital upon demand such certificates or
          other satisfactory evidence of the maintenance of the insurances
          required hereunder.

     (b)  The Customer shall keep the Equipment insured from the date it is
          delivered to the Customer until the same is returned to GE Capital in
          accordance with this Agreement.

     (c)  The Customer shall not do or permit or suffer any act, matter or thing
     whereby such insurances may be prejudicially affected or invalidated.

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     (d)  GE Capital shall be entitled to receive all moneys payable under the
          insurances referred to in Clause 3.6(a) hereof and all moneys which
          may be payable by 'and any other person in respect of damage to or
          loss of the Equipment and the Customer hereby appoints GE Capital its
          attorney to recover and/or compromise in its and their names any claim
          for loss or damage under those insurances or otherwise and to give
          effectual releases and receipts for the same and hereby irrevocably
          authorizes GE Capital to appropriate any insurance or other moneys
          received by it as its option towards repair and/or restoration of the
          Equipment or towards any moneys due or payable by the Customer
          hereunder or on any other account whatsoever.

     (e)  The Customer shall notify GE Capital in writing within twenty four
          (24) hours immediately following any loss or damage to the Equipment
          howsoever caused or after the occurrence of any event which could or
          might lead to a claim under any insurance effected in respect of the
          Equipment.

     (f)  In the event of any total or substantial loss or destruction of any
          Equipment, GE Capital may by notice in writing to the Customer
          terminate this Agreement with respect to that Equipment and the
          Customer shall within seven (7) days of such notice of termination pay
          to GE Capital an amount equal to whichever is the greater of:

          (i)  an amount equal to the amount specified as liquidated damages
               pursuant to Clause 3.17 as if such loss or destruction of that
               Equipment were a breach of an essential term of this Agreement;
               or

          (ii) the value of the Equipment immediately prior to such loss or
               destruction, such value being certified by a dealer or licensed
               valuer in similar or like goods to that Equipment as selected by
               GE Capital.

          PROVIDED THAT GE Capital shall give credit to the Customer for any
          insurance moneys or proceeds of salvage received by it if and when
          received but only to the extent of the aforesaid amount.

3.8  INDEMNITIES

     (a)  The Customer shall to the extent permitted by law indemnify GE
          Capital, its representatives and authorized sub-contractors and any
          assignee of GE Capital from and against any and all losses, damages,
          injuries, claims, liabilities, demands and expenses, including
          reasonable 

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          legal fees and expenses and claims for loss of profits and/or economic
          damage, of any nature arising out of the installation, maintenance,
          removal, use, repair, condition, storage or operation of the Equipment
          or any part thereof.

     (b)  The Customer shall to the extent permitted by law indemnify GE
          Capital. its representatives and authorized sub-contractors ana any
          assignee of GE Capital fro *in and against all losses, damages,
          claims, penalties, liabilities and expenses of any nature caused by,
          to, or in respect of the Equipment including (without limitation):

          (i)   loss by seizure under distress for rent, execution or other
                legal process; an d

          (ii)  loss, destruction or damage to the Equipment by fire, accident
                or any other cause whatsoever; and

          (iii) any claims arising out of the use, operation or keeping of the
                Equipment

     (c)  The indemnities referred to herein shall continue in full force and
          effect notwithstanding the termination of this Agreement or any
          Supplement with respect to any Equipment.

3.9  OWNERSHIP

     Subject to Clause 2.6, the Equipment is, and shall at all times be and
     remain, the property of GE Capital or a related company of GE Capital. The
     Customer shall have no right, title and interest therein or thereto except
     as expressly set forth herein.

3.10 AFFIXATION TO REALTY

     Except to the extent necessary to enable the proper use of the Equipment,
     the Customer shall not cause or permit the Equipment to be affixed to any
     real property or improvements thereon and it is expressly agreed that the
     Equipment is, and shall at all times be and remain, personal property
     notwithstanding that the Equipment or any part thereof may now be or
     hereafter become, in any manner, affixed or attached to real property or
     any improvements thereon and it shall not thereby become or be deemed to
     become a fixture.

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3.11 ACKNOWLEDGMENT OF GE CAPITAL'S INTEREST

     The Customer shall not install, use or place the Equipment or cause or
     suffer it to be installed, used or placed, upon any premises held or
     occupied by it as lessee, under-lessee or licensee or which are the subject
     of any mortgage or charge unless the Customer shall first deliver to GE
     Capital an acknowledgement in writing signed by the owner of the premises
     and/or the mortgagee or chargee, as the case may be, that the Equipment is
     and shall remain the property of GE Capital and shall not be or become
     landlord's fixtures or a part of the land or subject to any such mortgage
     or charge notwithstanding that the Equipment may be affixed to the land in
     any manner whatsoever and that GE Capital may at any time enter on 6e
     premises and detach and remove such of the Equipment as shall be on the
     premises.

3.12 LIENS OVER EQUIPMENT

     The Customer shall not suffer any encumbrance, charge or lien of any kind
     to arise or remain on the Equipment arising or resulting from any act of
     the Customer except:-

     (a)  a repairer's lien in which event the Customer shall take the necessary
          steps to have it removed or satisfied forthwith provided however that
          if GE Capital so determines it may remove or satisfy the lien at its
          cost and the Customer shall indemnify GE Capital therefore; and

     (b)  such lien or charge as may arise by law in respect of unpaid rates,
          taxes, fees or duties of any kind whatsoever in which event the
          Customer shall forthwith pay the same so that the Equipment will be
          free of any lien or charge.

3.13 ASSIGNMENT AND SUB-CONTRACTORS

     The Customer shall not to the extent that such a restriction is permitted
     by law, without the prior written consent of GE Capital, assign this
     Agreement or any of its rights hereunder. GE Capital may assign this
     Agreement or any of its rights hereunder and may sell, assign, pledge,
     mortgage, charge or otherwise dispose of or deal with the Equipment or any
     part thereof or its interest therein or any part thereof. GE Capital may,
     in its absolute discretion, sub-contract any of its obligations under this
     Agreement.

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3.14 ESSENTIAL TERMS

     The Customer and GE Capital expressly agree and declare that the Customer's
     covenants and obligations contained or implied in:

     (a)  Clause 2.4 to pay the Periodic Payments specified in any Supplement in
          the amounts and at the times specified in that Supplement and to pay
          the same punctually;

     (b)  Clause 3.1 as to the use of the Equipment;

     (c)  Clause 3.7 to insure the Equipment; and

     (d)  Clause 3.19 to surrender the Equipment and pay the moneys referred to
          therein punctually are essential terms of this Agreement and that the
          breach, non-observance or non-performance of any one or more of such
          covenants or obligations shall be deemed to be a breach of an
          essential term of this Agreement by the Customer PROVIDED THAT the
          presence of this Clause in this Agreement shall not mean or be
          construed as meaning that there are no other essential terms in this
          Agreement.

3.15 DEFAULT

     In the event that:

          (i)   the Customer defaults in the payment of any Periodic Payment or
                other sum payable hereunder; or

          (ii)  the Customer defaults in the observance or performance of any of
                the other essential terms referred to in Clause 3.14 hereof, or

          (iii) the Customer defaults in the observance or performance of any
                other term of condition herein and such default is not remedied
                within thirty (30) days after notice thereof to the Customer by
                GE Capital; or

          (iv)  without the prior written consent of GE Capital, whose consent
                will not be unreasonably withheld, effective control of the
                Customer is altered to any material extent from that subsisting
                at the date of this agreement. For the purposes of this clause
                effective control" of the Customer means:-

                (a)   control of the composition of the Board of Directors of
                      the Customer; or

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                (b)   control of more than half of the voting power of the
                      Customer; or

                (c)   control of more than half of the issued capital of the
                      Customer excluding any part of it which carries no right
                      to participate beyond a specified amount in the
                      distribution of either profit or capital.

          (v)   where the Customer is a partnership, there is, without the prior
                written consent of GE Capital any change in the composition of
                the partnership except where such change arises as a result of
                death or disability of a partner.

          THEN in any such event GE Capital, without prejudice to any other
          right or remedy of GE Capital herein contained or implied or at
          general law (including the rights of GE Capital under Clause 117 when
          the event is also a breach of an essential term of this Agreement),
          may at its option to the extent permitted by law and after satisfying
          any conditions required by law:

     (a)  proceed by appropriate court action or actions, either at law or in
          equity, to enforce performance by the Customer of the applicable
          covenants and terms of this Agreement or to recover damages for the
          breach thereof-, and/or (b) by notice in writing to the Customer,
          terminate this Agreement with respect to all or any part of the
          Equipment hired hereunder, whereupon all the interest of the Customer
          in such Equipment (hereinafter referred to as Relevant Equipment")
          shall cease (but the Customer shall remain liable hereinafter
          provided) and in such event the Customer shall provided GE Capital has
          complied with the requirements under any applicable law forthwith
          return the Relevant Equipment to GE Capital at such place nominated by
          GE Capital.

3.16 RIGHTS OF TERMINATION

     Without prejudice to any other rights and remedies of GE Capital hereunder
     or at general law, in the event of the termination of this Agreement
     pursuant to Clause 3.15(b), GE Capital may to the extent permitted by law:

          (i)   retain all Periodic Payments and other moneys heretofore paid by
                the Customer; and

          (ii)  provided GE Capital has complied with the requirements under any
                applicable law re-hire, re-

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               licence or lease or rent all or any part of the Relevant
               Equipment for such consideration upon such terms as GE Capital
               thinks fit, or, at its absolute discretion, sell all or any part
               of the Equipment at public or private sale upon terms as GE
               Capital thinks fit.

3.17 LIQUIDATED DAMAGES

     (a)  Where the Customer breaches or fails to observe or perform an
          essential term of this Agreement and GE Capital terminates this
          Agreement with respect to any Equipment under Clause 3.15(b) or by
          virtue of its rights and remedies at general law, then in addition to
          and without prejudice to any other right or remedy of GE Capital
          herein contained or implied or at general law, the Customer shall pay
          to GE Capital forthwith upon such termination as and by way of
          liquidated damages an amount equal to the Net Amount Payable.

     (b)  The parties acknowledge that GE Capital is not entitled to recover any
          sum (whether under a judgment or order or otherwise) which would
          together with:

          (i)   the value of the Equipment at the time of GE Capital taking
                possession thereof; and

          (ii)  the amount paid or provided, whether by cash or other
               consideration, by or on behalf of the Customer under the
               Agreement, amount to more than the Net Amount Payable in respect
               of the Equipment.

       For the purposes of this Agreement:

     (a)  the Net Amount Payable shall be the total amount payable less the
          statutory rebates for terms charges, insurance, and maintenance; and

     (b)  the value of any Equipment at the time of GE Capital taking possession
          thereof shall be:

          (i)   the best price which could be reasonably obtained by GE Capital
                at that time; or

          (ii)  if the Customer has introduced a person who has purchased the
                Equipment for cash. the amount paid by such person, less,

          (iii) the reasonable costs incurred by GE Capital of and incidental to
                his taking possession of the Equipment;

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<PAGE>
 
          (iv)  any amount properly expended by GE Capital on the storage,
                repair, or maintenance of the Equipment; and

          (v)   (whether or not the Equipment have subsequently been sold or
                disposed of by GE Capital) the reasonable expenses of selling or
                otherwise disposing of the Equipment.

3.18 OTHER TERMINATION PROVISIONS

     (a)  GE Capital may to the extent permitted by law ship the Relevant
          Equipment to any location it desires in order to effect a re-hire, re-
          licence, leasing, renting or sale.

     (b)  In addition to the foregoing, GE Capital shall to the extent permitted
          by law be entitled to recover from the Customer any and all damages
          which GE Capital shall sustain by reason of any breach by the Customer
          of any of the covenants and terms of this Agreement, together with a
          reasonable sum for legal fees (including fees on a solicitor and
          client basis) and such expenses as shall be expended or incurred in
          the seizure, hire, lease, licence, rental or sale of the Equipment.

     (c)  The Customer hereby authorizes GE Capital to the extent permitted by
          law to enter any premises occupied by the Customer during ordinary
          business hours for the purpose of exercising its rights under Clauses
          3.16, 3.17 and 3.18.

     (d)  The rights and remedies herein provided in favour of GE Capital in the
          event of default shall not be deemed to be exclusive, but shall be
          cumulative and shall be in addition to all other remedies available to
          GE Capital at law, in equity or in bankruptcy.

     (e)  GE Capital may from time to time, and on such conditions as it thinks
          fit, waive its rights arising under Clauses 3.15, 3.16, 3.17 and 3.18
          or otherwise, but no such waiver shall affect its rights under those
          Clauses or otherwise in respect of any further continuing or recurring
          default, breach or event and the taking of possession of the Relevant
          Equipment by GE Capital shall not constitute a waiver of any claim of
          GE Capital for liquidated Damages.

     (f)  The Customer acknowledges that the amount referred to in Clause 3.17
          as Liquidated Damages has been assessed as a reasonable pre-estimate
          for loss of profit and other costs and losses incurred by GE Capital
          as a result of an

                                       16
<PAGE>
 
          early termination of this Agreement with respect to the Relevant
          Equipment and the establishment costs associated with this Agreement.

     (g)  Notwithstanding any termination of this Agreement (for breach of an
          essential term or otherwise) or the repudiation of this Agreement by
          the Customer and the acceptance thereof by GE Capital, the provisions
          of Clauses 3.15, 3.16, 3.17 and 3.18 shall continue as remedies
          available to be exercised by GE Capital. This Clause shall not limit
          the generality of any other Clause which would otherwise survive the
          termination of this Agreement.

3.19 SURRENDER

     (a)  Upon the Expiry Date of any Equipment, the Customer shall, if it has
          not elected to purchase that Equipment under Clause 2.6, at its own
          cost assemble that Equipment at a place designated in writing by GE
          Capital and surrender possession of that Equipment to GE Capital.

     (b)  If the Customer fails to so surrender possession of any Equipment in
          accordance with Clauses 3.19(a) and (b), GE Capital may repossess the
          same and for this purpose may exercise the rights and powers referred
          to in Clauses 3.15(b), 3.18(b), (c), (d) and (e).

3.20 LIMITATION OF WARRANTIES AND LIABILITY

     (a)  To the extent permitted by law, all warranties, representations,
          promises, conditions or statements regarding any Equipment or services
          to be supplied or performed hereunder, either express or implied,
          including, without limiting the generality of the foregoing,
          warranties, representations, promises, conditions or statements as to
          the suitability or fitness of any Equipment or services for any
          particular application, other than those expressly referred to herein,
          are hereby expressly excluded.

     (b)  To the extent permitted by law, GE Capital shall under no
          circumstances be liable in any way whatsoever to the Customer nor
          shall the Customer have any remedy, in respect of any claim (whether
          contractual, tortious, statutory or otherwise) for any form of
          damages, losses, costs, injury or harm sustained or incurred by the
          Customer in consequence of or resulting directly or indirectly out of
          the supply, performance or use of any Equipment or in any other goods
          or services supplied hereunder or by any third party or out of any
          breach,

                                       17
<PAGE>
 
          default, fault or negligence of GE Capital m" or in connection with
          this Agreement or otherwise.

     (c)  Without limiting the generality of Clause 3.20(b) hereof, but subject
          to Clause 3.20(d) hereof to the extent permitted by law, the Customer
          agrees that GE Capital shall not be liable in respect of any claim of
          the Customer ("whether contractual, tortious, statutory, or otherwise)
          for any special, incidental, indirect, or consequential damages or for
          any loss of profits, revenue or data even if GE Capital should have
          been advised of the possibility of such potential loss or damage. The
          Customer is solely responsible to the extent permitted by law for the
          protection and backup of all data and software used in conjunction
          with the Equipment.

     (d)  The terms and conditions in this Agreement that exclude or limit GE
          Capital liability shall apply only to the extent permitted by law.
          Provisions of the Trade Practices Act, 1974 (as amended) and other
          statutes from time to time in force in Australia may apply warranties
          or conditions or impose obligations upon GE Capital which cannot be
          excluded, restricted or modified or cannot be excluded, restricted or
          modified except to a limited extent. This Agreement shall be read and
          construed subject to any such statutory provisions. If any such
          statutory provisions apply, then to the extent to which GE Capital is
          entitled to do so, its liability under those statutory provisions
          shall be limited at its option to:

          (i)  in the case of the supply of goods:

               (A)  the replacement of the goods or the supply of equivalent
                    goods; or

               (B)  the payment of the cost of replacing the goods or of
                    acquiring equivalent goods; or

               (C)  the payment of the cost of having the goods repaired; or

               (D)  the repair of the goods; or

               (E)  the refunding to the Customer of the price or fees paid in
                    respect of the goods giving arise to the liability; and

          (ii) in the case of services:

               (A)  the supplying of the services again;

               (B)  the payment of the cost of having the

                                       18
<PAGE>
 
                    services performed again; or

               (C)  the refunding to the Customer of any sums paid in respect of
                    such services.

3.21 DELAYS

     GE Capital shall make every effort to perform its obligations to the
     Customer on time, but shall not be liable for the consequences of any
     delays in performance caused by any event beyond its reasonable control,
     including acts of God, war, fire, flood, strike or labour dispute, riot or
     civil commotion, sabotage or any act of omission of the Customer or of a
     third party.

3.22 LEGAL NOTICE

     Unless otherwise provided in this Agreement, any notice required or
     permitted to be given hereunder to the parties hereto will be deemed to
     have been duly given if in writing and delivered in person or sent by
     telegram or telex or mailed by first-class, registered or certified mail,
     postage prepaid and addressed to the Customer, or GE Capital, as the case
     may be, at its address set forth herein.

3.23 CERTIFICATE

     A statement in writing signed by an Officer of GE Capital of an amount due
     or owing hereunder as at the date mentioned in such statement and/or as to
     any other matter or thing concerning or touching the subject matter of this
     Agreement shall, in the absence of manifest error to the extent permitted
     by law, be conclusive evidence that such amount is due or owing hereunder
     and/or of all such matters or things as are therein set forth.

3.24 WAIVER

     (a)  No time, indulgence or waiver of its rights under this Agreement
          granted or purported to be granted by GE Capital shall prejudice or
          effect GE Capital's interest or rights hereunder or constitute a
          waiver or release of any breach hereof by the Customer unless made
          expressly by notice in writing from GE Capital to the Customer and
          then only in respect to the specific breach referred to.

     (b)  Any failure by GE Capital to insist upon strict performance of any of
          the terms and conditions of this Agreement or any delay by GE Capital
          in exercising any of its rights and remedies shall not constitute a
          waiver or variation of such terms and conditions or a waiver of any

                                       19
<PAGE>
 
          default of the remedy therefore.

3.25 SEVERABILITY

     If any of the provisions of this Agreement are or shall become
     unenforceable, void, voidable or illegal then any such term or provision
     shall be of no force or effect whatsoever and shall be severed and be
     deemed to have formed no part hereof ab initio and the other provisions of
     this Agreement shall continue in full force and effect.

3.26 BLANK SPACES

     The Customer herein irrevocably authorizes GE Capital to complete any blank
     spaces appearing in this Agreement or in any Supplement.

3.27 ALTERATIONS

     Subject to the obligations of the Customer under Clause 3.4, the Customer
     shall not make or permit to be made any alterations to the Equipment or
     affix or install or permit to be affixed or installed any accessories.
     equipment or device thereon or thereto without the prior written consent of
     GE Capital and all parts, accessories, equipment or devices which are
     affixed to or installed upon or in the Equipment shall be deemed to be part
     of the whole and be the property of GE Capital and subject to all of the
     terms and conditions of this Agreement.

3.28 THE RIGHTS OF GE CAPITAL

     If the Customer fails to carry out any of the provisions of this Agreement,
     GE Capital may without prejudice to any of its other rights or remedies do
     all things and pay all money necessary to make good such default to the
     satisfaction of GE Capital and any moneys so paid shall to the extent
     permitted by law be reimbursed to GE Capital upon demand. The Customer
     acknowledges that to the extent permitted by law GE Capital is at liberty
     to pay any broker or dealer or any other person who may have introduced the
     Customer to GE Capital or whom otherwise may have been concerned in
     arranging this Agreement a commission or otherwise confer a benefit upon
     such person in respect of any such referral or arrangements.

3.29 MISCELLANEOUS

     (a)  The Customer acknowledges that it has read this Agreement (including
          the terms and conditions set out on each page thereof), understands it
          and agrees to be bound by it and further agrees that it is the
          complete and exclusive

                                       20
<PAGE>
 
          statement of the Agreement between the parties which supersedes all
          proposals, oral or written. and all other representations,
          communications and prior agreements between the parties relating to
          the subject matter of this Agreement.

     (b)  GE Capital may, upon 30 days' prior written notice, modify the terms
          and conditions of this Agreement provided that such modifications
          shall not only be applicable to Supplements accepted by GE Capital
          following the 30 day period but otherwise, except for the foregoing,
          the terms of this Agreement may not be amended, modified or rescinded
          except by a written instrument signed by all parties, provided that
          any such instrument shall only be binding upon GE Capital when signed
          on its behalf by an Officer of GE Capital at its Head Office.

     (c)  The terms and conditions contained in this Agreement shall prevail
          notwithstanding any variance with the terms and conditions of any
          order or other documentation submitted by the Customer.

     (d)  This Agreement shall be construed in accordance with and be governed
          by the laws in force in State of Western Australia and the parties
          hereby submit to the non-exclusive jurisdiction of the Courts of that
          State.

     (e)  Subject to the Customer's observing and performing all its covenants
          and obligations hereunder, GE Capital shall ensure that Customef s
          quiet possession of the Equipment hired hereunder is not disturbed by
          GE Capital or any person claiming through or under GE Capital.

     (f)  Clause headings are for ease of reference only and shall not affect
          the construction of this Agreement.

     (g)  When two or more parties are named in the Schedule to this Agreement
          as the Customer, all covenants, agreements, conditions and obligations
          contained herein shall bind those parties and any two or greater
          number of them jointly and each of them severally.

     (h)  Any gender shall include every other gender and the singular shall
          include the plural and vice versa.

     (i)  Notwithstanding any other provision in this Agreement:

          (i)  this Agreement is to be read and construed subject to any
               applicable law; and

          (ii) to the extent that the Customer has rights under

                                       21
<PAGE>
 
               any applicable law this Agreement is to be read and construed
               subject to those rights.

     (j)  Terms defined in the Hire Purchase Act 1959 (Western Australia) shall
          have the same meaning when used in this agreement.

                                       22
<PAGE>
 
IN WITNESS WHEREOF the parties to this Agreement have hereunto set their hands
and seals on the respective dates indicated below:-


THE COMMON SEAL of                      )
TOTAL ENERGY SYSTEMS LIMITED            )
(A.C.N. 010 876 150                     )
was hereunto affixed on the  14/th/     )
day of  November , 1994                 )
by the authority of a resolution        )
of the Board of Directors               )
in the presence of:                     )
                                        )         ________________________
                                                  Director
___________________________________
Director/Secretary


ACCEPTED for and behalf of GE Capital Australia Limited by its duly authorized
Officer on the  21/st/ day of  November, 1994.

                                   _______________________________________
                                   Authorized Officer



                                   SCHEDULE

Name Of The Customer:                   TOTAL ENERGY SYSTEMS LIMITED
                                        (A.C.N. 010 876 150)

Address Or Registered Office:           3RD FLOOR, 172 EDWARD STREET

State Or Territory Of Incorporation:    BRISBANE QLD 4000

                                       23
<PAGE>
 
                         GE CAPITAL AUSTRALIA LIMITED

                             (A.C.N. 008 562 534)


                              S U P P L E M E N T
                              -------------------


________________________________________________________________________________

                              CE0714S1        PREPARED       01/11/1994

This Supplement shall be read in conjunction with and subject to the Master
Commercial Hire Purchase Agreement Number:

                              CE0714          DATED          21/11/1994

________________________________________________________________________________


Customer  TOTAL ENERGY SYSTEMS LIMITED
Name:     (A.C.N. 010 876 150)
Address:  3/RD/ FLOOR, 172 EDWARD STREET
          BRISBANE QLD 4000

________________________________________________________________________________

                             EQUIPMENT DESCRIPTION

________________________________________________________________________________
                                        

              LOCATION:     PICADILLY STREET
                            GOVERNMENT EXPLOSIVE MAGAZINE
                            KALGOORLIE WA 6430

Invoice             Total Energy Systems Limited
-------             ----------------------------

                    One (1) only Isuzu FVZ 1400 Medium Cab Chassis with:
     
                    10,000.00 litre stainless steel tank, Acid Add Tank and
                    Pumps, Water injection systems, Rexroth Hydraulic System 3"
                    Two Stage Stainless Steel Mono Pump

                    Engine Number:  626582
                    Vin Number:     JALFUZ13MN3600054
<PAGE>
 
*    PERIOD OF COMMERCIAL HIRE PURCHASE AGREEMENT:
                    SIXTY (60) MONTHS


*    Commencement Date:  15/TH/ DAY OF NOVEMBER 1997

*    COMMERCIAL HIRE PURCHASE SUMMARY:

     Proposed Customer:             TOTAL ENERGY SYSTEMS LIMITED
                                    (A.C.N. 010 876 150)
                                    3RD FLOOR, 172 EDWARD STREET
                                    BRISBANE QLD 4000

     Owner:                         GE Capital Australia Limited
                                    (A.C.N. 008 562 534)
                                    Level 2, 88 Walker Street
                                    North Sydney NSW 2060

     Dealer:                        Total Energy Systems Limited
                                    (A.C.N. 010 876 150)
                                    3/rd/ Floor, 172 Edward Street
                                    BRISBANE QLD 4000

     Guarantor:                     LSB INDUSTRIES, INC
                                    16 SOUTH PENNSYLVANIA
                                    OKLAHOMA CITY
                                    OKLAHOMA 73107
                                    UNITED STATES OF AMERICA

     Guarantor:



     Short description of Goods:    ISUZU FVZ 1400 MEDIUM CAB AND CHASSIS


     New/Secondhand


     Year:   1993       Model:   FVZ 1400 MEDIUM
     Colour:   WHITE

     Instalments:
     SIXTY (60) PERIODIC PAYMENTS OF $3,664.00 PAYABLE MONTHLY IN

                                       2
<PAGE>
 
     ADVANCE COMMENCING FROM 15/TH/ NOVEMBER 1994.

                                       3
<PAGE>
 
To:                 GE Capital Australia Limited
                    PO Box 10169
                    North Sydney NSW 2059

Being:                 60        payments of       $3,664.00
                    -------                        ---------
                       --        payments of         ----   
                    -------                        ---------
                       1       final payment of    $8,562.00
                    -------                        --------- 
 
*    INSTALLATION SITE:

     The equipment listed on this Supplement will be located/installed at:
               PICCADILLY STREET
               GOVERNMENT EXPLOSIVES MAGAZINE
               KALGOORLIE WA 6430

*    OTHER INFORMATION:

          CASH PRICE:                            $171,245.56
                                               -------------

          Less Deposit:
               (a)  Money                              -----
                                               -------------
               (b)  Other-Trade-In Allowance           -----
                                               -------------
          RESIDUE:
          Add: Maintenance                             -----
                                               -------------
               Freight                                 -----
                                               -------------
               Vehicle Registration Fees               -----
                                               -------------
               Insurance                               -----
                                               -------------
               Agreement Registration Fees             -----
                                               -------------
               Stamp Duty                              -----
          AMOUNT FINANCED:
                                               -------------
          Add: Terms Charges                     $ 57,156.44
                                               -------------
               (Percentage Rate 11.93%)
          Balance originally payable under
            the agreement                        $171,245.56
                                               -------------
          Add: Deposit above                           -----
                                               -------------           
          TOTAL AMOUNT PAYABLE:
          (Including Deposit)                    $228,402.00
                                               -------------

The customer is reminded that terms charges may differ from one hire-purchase
credit provider to another and it will be in the customer's best interests to
make enquiries to satisfy itself that

                                       4
<PAGE>
 
it is receiving the best deal in terms charges.

     Duly executed for and on behalf of:

                                  TOTAL ENERGY SYSTEMS LIMITED
                                ----------------------------------

                                  (A.C.N. 010 876 150)
                                ----------------------------------

     By its duly authorized officer:

                                  /s/ Stephen T. Gordon
                                ----------------------------------

     Please print name:           Stephen T. Gordon
                                ----------------------------------

     Title:                       Director - Financial Controller
                                ----------------------------------

     Date:                        14/11/94
                                ----------------------------------



ACCEPTED for and behalf of GE Capital Australia Limited by its duly Authorized
Officer on the  21/st/ day of  November  1994.

                                __________________________________
                                Authorized Officer



              GE Capital Australia Limited (A.C.N. 008 562 534),
               a company incorporated in the Australian Capital
                Territory and having its registered office at:
                     88 Walker Street, North Sydney in the
                           State of New South Wales.

                                       5