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| 1.1 | Line      of Credit; Limitations on Borrowings; Termination Date; Use of      Proceeds. |
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| (a) | Line      of Credit and Limitations on Borrowing.  Wells Fargo      shall make Advances to Company under the Line of Credit that, together      with the L/C Amount, shall      not at any time exceed in the aggregate the lesser      of (i) $3,000,000      (the “Maximum Line Amount”), or (ii) the Borrowing Base limitations      described in Section 1.2.  Within these limits, Company may      periodically borrow, prepay in whole or in part, and      reborrow.  Wells Fargo has no obligation to make an Advance      during a Default Period or at any time Wells Fargo believes that an      Advance would result in an Event of Default. |
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| (b) | Maturity      and Termination Dates.  Company may request Advances from      the date that  the conditions set forth in Section 3 are      satisfied until the earlier of: (i) May 19, 2009      (the “Maturity Date”), (ii) the date Company terminates the Line of      Credit, or (iii) the date Wells Fargo terminates the Line of Credit      following an Event of Default. (The earliest of these dates is the      “Termination Date.”) |
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| (c) | Use      of Line of Credit Proceeds.  Company shall use the      proceeds of each Advance and      each Letter of Credit for ordinary working capital      purposes. |
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| (d) | Revolving      Note.  Company’s obligation to repay Line of Credit      Advances, regardless of how initiated under Section 1.3, shall be      evidenced by a revolving promissory note (as renewed, amended or replaced      from time to time, the “RevolvingNote”). |
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| (a) | Borrowing      Base.  The borrowing base (the “Borrowing Base”) is an      amount equal to: |
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| (b) | Mandatory Prepayment;      Overadvances.  If unreimbursed Line of Credit Advances      evidenced by the Revolving Note plus the L/C Amount exceed the Borrowing      Base or the Maximum Line Amount at any time, then Company shall      immediately prepay the Revolving Note in an amount sufficient to eliminate      the excess, and if payment in full of the Revolving Note is insufficient      to eliminate this excess and the L/C Amount continues to exceed the      Borrowing Base, then Company shall deliver cash to Wells Fargo in an      amount equal to the remaining excess for deposit to the Special      Account, unless in each      case, Wells Fargo has delivered to Company an Authenticated Record      consenting to the Overadvance prior to its      occurrence, in which event the Overadvance shall be temporarily permitted      on such terms and conditions as Wells Fargo in its sole discretion may      deem appropriate, including the payment of additional fees or interest, or      both. |
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| 1.3 | Procedures      for Line of Credit Advances. |
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| (a) | Advances to Operating      Account.  Advances shall be credited to Company’s demand      deposit account maintained with Wells Fargo (the “Operating Account”),      unless the parties agree in a Record Authenticated by both of them to      disburse to another account. |
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| (b) | Protective Advances;      Advances to Pay Indebtedness Due.  Wells Fargo may      initiate a Floating Rate Advance on the Line of Credit in its sole      discretion for any reason at any time, without Company’s compliance with      any of the conditions of this Agreement, and (i) disburse the proceeds      directly to third Persons in order to protect Wells Fargo’s interest in      Collateral or to perform any of Company’s obligations under this      Agreement, or (ii) apply the proceeds to the amount of any Indebtedness      then due and payable to WellsFargo. |
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| 1.4 | Collection      of Accounts and Application to RevolvingNote. |
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| (a) | The Collection      Account.  Company has granted a security interest to      Wells Fargo in the Collateral, including all Accounts. Except as otherwise      agreed by both parties in an Authenticated Record, all Proceeds of      Accounts and other Collateral, upon receipt or collection, shall be      deposited each Business Day into the Collection Account. Funds so      deposited (“Account Funds”) are the property of Wells Fargo, and may only      be withdrawn from the Collection Account by Wells  Fargo. |
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| (b) | Payment of Accounts by      Company’s Account Debtors.  Company shall instruct all      account debtors to make payments either directly to the Lockbox for      deposit by Wells Fargo directly to the Collection Account, or instruct      them to deliver such payments to Wells Fargo by wire transfer, ACH, or      other means as Wells Fargo may direct for deposit to the Collection      Account or for direct application to the Line of Credit. If Company      receives a payment or the Proceeds of Collateral directly, Company will      promptly deposit the payment or Proceeds into the Collection Account.      Until deposited, it will hold all such payments and Proceeds in trust for      Wells Fargo without commingling with other funds or      property.  All deposits held in the Collection Account shall      constitute Proceeds of Collateral and shall not constitute the payment of      Indebtedness. |
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| (c) | Application of      Payments to Revolving Note.  Wells Fargo will withdraw      Account Funds deposited to the Collection Account and pay down borrowings      on the Line of Credit by applying them to the Revolving Note on the first      Business Day following the Business Day of deposit to the Collection      Account, or, if payments are received by Wells Fargo that are not first      deposited to the Collection Account pursuant to any treasury management      service provided to Company by Wells Fargo, such payments shall be applied      to the Revolving Note as provided in the Master Agreement for Treasury      Management Services and the relevant service  description. |
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| 1.5 | Interest      and Interest Related Matters. |
|-----|---------------------------------------------|

| (a) | Interest Rates      Applicable to Line of Credit.  Except as otherwise      provided in this Agreement, the unpaid principal amount of each Line of      Credit Advance evidenced by the Revolving Note shall accrue interest at an      annual interest rate equal to the Prime Rate plus 0.75% per annum which      interest rate shall change whenever the Prime Rate changes (the “Floating      Rate”). |
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|  (b) | Minimum Interest      Charge.  Notwithstanding the other terms of Section 1.5      to the contrary, and except as limited by the usury savings provision of      Section 1.5(e), Company shall pay Wells Fargo at least $50,000 of interest      each calendar quarter (the “Minimum Interest Charge”) during the term of      this Agreement, and Company shall pay any      deficiency between the Minimum Interest Charge and the amount of interest      otherwise payable on the first day of each quarter and on the Termination      Date; provided that if Company executes all of its foreign exchange trades      and transactions through Wells Fargo in a quarter, then said minimum      interest charge shall be waived for such quarter.  When      calculating the foregoing deficiency, the Default Rate set forth in      Section 1.5(c), if applicable, shall be  disregarded. |
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| (c) | Default Interest      Rate.  Commencing on the day an Event of Default occurs,      through and including the date identified by Wells Fargo in a Record as      the date that the Event of Default has been cured or waived (each such      period a “Default Period”), or during a time period specified in Section      1.8, or at any time following the Termination Date, in Wells Fargo’s sole      discretion and without waiving any of its other rights or remedies, the      principal amount of the Revolving Note shall bear interest at a rate that      is three percent (3.0%) above the contractual rate set forth in Section      1.5(a) (the “Default Rate”), or any lesser rate that Wells Fargo may deem      appropriate, starting on the first day of the month in which the Default      Period begins through the last day of that Default Period, or any shorter      time period to which Wells Fargo may agree in an Authenticated      Record. |
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| (d) | Interest Accrual on      Payments Applied to Revolving Note.  Payments received by      Wells Fargo shall be applied to the Revolving Note as provided in Section      1.4(c), but the principal amount paid down shall continue to accrue      interest through the end of the first Business Day following the Business      Day that the payment was applied to the Revolving  Note. |
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| (e) | Usury.  No      interest rate shall be effective which would result in a rate greater than      the highest rate permitted by law.  Payments in the nature of      interest and other charges made under any Loan Documents or any other      document or agreement described in or related to this Agreement that are      later determined to be in excess of the limits imposed by applicable usury      law will be deemed to be a payment of principal, and the Indebtedness      shall be reduced by that amount so that such payments will not be deemed      usurious. |
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| (a) | Origination      Fee.  Company shall pay Wells Fargo a one time      origination fee of $12,000, which shall be fully earned and payable upon      the execution of this Agreement. |
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| (b) | Unused Line      Fee.  Company shall pay      Wells Fargo an annual unused line fee of one-quarter of one percent      (0.25%) of the daily average of the Maximum Line Amount reduced by      outstanding Advances and the L/C Amount (the “Unused Amount”), from the      date of this Agreement to and including the Termination Date, which unused      line fee shall be payable monthly in arrears on the first day of each      month and on the Termination Date. |
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| (c) | Facility      Fee.  [intentionallyomitted] |
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| (d) | Collateral Exam      Fees.  Company shall pay Wells Fargo fees in connection      with any collateral exams, audits or inspections conducted by or on behalf      of Wells Fargo at the current rates established from time to time by Wells      Fargo as its collateral exam fees (which fees are currently $105.00 per      hour per collateral examiner), together with all actual      out-of-pocket costs and expenses incurred in conducting any collateral      examination or inspection. |
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| (e) | [intentionally      omitted] |
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| (f) | Line of Credit      Termination and/or Reduction Fees.  If (i) Wells Fargo      terminates the Line of Credit during a Default Period, or if (ii) Company      terminates the Line of Credit on a date prior to the Maturity Date, or if      (iii) Company and Wells Fargo agree to reduce the Maximum Line Amount,      then Company shall pay Wells Fargo a termination or reduction fee in an      amount equal to two percent (2.00%) of the Maximum Line Amount (or the      reduction of the Maximum Line Amount, as the case may  be). |
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| (g) | Overadvance      Fees.  Company shall pay a $500 Overadvance fee for each      day that an Overadvance exists which was not agreed to by Wells Fargo in      an Authenticated Record prior to its occurrence; provided that Wells      Fargo’s acceptance of the payment of such fees shall not constitute either      consent to the Overadvance or waiver of the resulting Event of      Default.  Company shall pay additional Overadvance fees and      interest in such amounts and on such terms as Wells Fargo in its sole      discretion may consider appropriate for any Overadvance to which Wells      Fargo has specifically consented in an Authenticated Record prior to its      occurrence. |
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| (h) | Treasury Management      Fees.  Company will pay service fees to Wells Fargo for      treasury management services provided pursuant to the Master Agreement for      Treasury Management Services or any other agreement entered into by the      parties, in the amount prescribed in Wells Fargo’s current service fee      schedule. |
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| (i) | Letter of Credit      Fees.  Company shall pay a fee with respect to each      Letter of Credit issued by Wells Fargo of one and one-half percent (1.5%)      per annum of the aggregate undrawn amount of the Letter of Credit (the      “Aggregate Face Amount”) accruing daily from and including the date the      Letter of Credit is issued until the date that it either expires or is      returned, which shall be payable monthly in arrears on the first day of      each month and on the date that the Letter of Credit either expires or is      returned; and following an Event of Default, this fee shall increase to      four and one-half percent (4.5%) of the Aggregate Face Amount, commencing      on the first day of the month in which the Default Period begins and      continuing through the last day of such Default Period, or any shorter      time period that Wells Fargo in its sole discretion may deem appropriate,      without waiving any of its other rights and  remedies. |
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| (j) | Letter of Credit      Administrative Fees.  Company shall pay all      administrative fees charged by Wells Fargo in connection with the honoring      of drafts under any Letter of Credit, and any amendments to or transfers      of any Letter of Credit, and any other activity with respect to the      Letters of Credit at the current rates published by Wells Fargo for such      services rendered on behalf of its customers  generally. |
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| (k) | Other Fees and      Charges.  Wells Fargo may impose additional fees and      charges during a Default Period for (i) waiving an Event of Default, or      for (ii) the administration of Collateral by Wells Fargo. All such fees      and charges shall be imposed at Wells Fargo’s sole discretion following      written notice to Company on either an hourly, periodic, or flat fee      basis, and in lieu of or in addition to imposing interest at the Default      Rate, and Company’s request for an Advance following such notice shall      constitute Company’s agreement to pay such fees and    charges. |
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| (a) | Interest Payments and      Interest Accrual.  Accrued and unpaid interest under the      Revolving Note on Floating Rate Advances shall be due and payable on the      first day of each month (each an "Interest Payment Date") and on the      Termination Date, and shall be paid in the manner provided in Section      1.4(c).  Interest shall accrue from the most recent date to      which interest has been paid or, if no interest has been paid, from the      date of Advance to the Interest PaymentDate. |
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| (b) | Payment of Revolving      Note Principal.  The principal amount of the Revolving      Note shall be paid from time to time as provided in this Agreement, and      shall be fully due and payable on the Termination  Date. |
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| (c) | Payments Due on      Non-Business Days.  If an Interest Payment Date or the      Termination Date falls on a day which is not a Business Day, payment shall      be made on the next Business Day, and interest shall continue to accrue      during that time period. |
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| (d) | Computation of      Interest and Fees.  Interest accruing on the unpaid      principal amount of the Revolving Note and fees payable under this      Agreement shall be computed on the basis of the actual number of days      elapsed in a year of 360 days. |
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| (e) | Liability      Records.  Wells Fargo shall maintain accounting and      bookkeeping records of all Advances and payments under the Line of Credit      and all other Indebtedness due to Wells Fargo in such form and content as      Wells Fargo in its sole discretion deems appropriate.  Wells      Fargo’s calculation of current Indebtedness shall be presumed correct      unless proven otherwise by Company.  Upon Wells Fargo’s request,      Company will admit and certify in a Record the exact principal balance of      the Indebtedness that Company then believes to be      outstanding.  Any billing statement or accounting provided by      Wells Fargo shall be conclusive and binding unless Company notifies Wells      Fargo in a detailed Record of its intention to dispute the billing      statement or accounting within 30 days of  receipt. |
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| 1.8 | Termination,      Reduction or Non-Renewal of Line of Credit by Company;    Notice. |
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| (a) | Termination by Company      after Advance Notice.  Company may terminate or reduce      the Line of Credit at any time prior to the Maturity Date, if it      (i) delivers an Authenticated Record notifying Wells Fargo of its      intentions at least 90 days prior to the proposed Termination Date,      (ii) pays Wells Fargo the termination fee set forth in Section      1.6(f), and (iii) pays the Indebtedness in full or down to the reduced      Maximum Line Amount. |
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| (b) | Termination by Company      without Advance Notice.  If Company fails to deliver      Wells Fargo timely notice of its intention to terminate the Line of Credit      or reduce the Maximum Line Amount as provided in Section 1.8(a), Company      may nevertheless terminate the Line of Credit or reduce the Maximum Line      Amount and pay the Indebtedness in full or down to the reduced Maximum      Line Amount if it (i) pays the termination fee set forth in Section      1.6(f), and (ii) pays the Default Rate on the Revolving Note commencing on      the 90th      day prior to the proposed Termination Date and continuing through the date      that Wells Fargo receives delivery of an Authenticated Record giving it      actual notice of Company’s intention to  terminate. |
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| (c) | Non-Renewal by      Company; Notice.  If Company does not wish Wells Fargo to      consider renewal of the Line of Credit on the next Maturity Date, Company      shall deliver an Authenticated Record to Wells Fargo at least 90 days      prior to the Maturity Date notifying Wells Fargo of its intention not to      renew. If Company fails to deliver to Wells Fargo such timely notice, then      the Revolving Note shall accrue interest at the Default Rate commencing on      the 90th      day prior to the Maturity Date and continuing through the date that Wells      Fargo receives delivery of an Authenticated Record giving it actual notice      of Company’s intention not torenew. |
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| (a) | Issuance of Letters of      Credit; Amount.  Wells Fargo, subject to the terms and      conditions of this Agreement, shall issue, on or after the date that Wells      Fargo is obligated to make its first Advance under this Agreement and      prior to the Termination Date, one or more irrevocable standby or      documentary letters of credit (each, a “Letter of Credit”, and      collectively, “Letters of Credit”) for Company’s account.  Wells      Fargo will not issue any Letter of Credit if the face amount of the Letter      of Credit would exceed the lesser of: (i) $1,000,000 less the L/C Amount,      or (ii) the Borrowing Base, less an amount equal to aggregate unreimbursed      Line of Credit Advances plus the L/CAmount. |
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| (b) | Additional Letter of      Credit Documentation.  Prior to requesting issuance of a      Letter of Credit, Company shall first execute and deliver to Wells Fargo a      Standby Letter of Credit Agreement or a Commercial Letter of Credit      Agreement, as applicable, an L/C Application, and any other documents that      Wells Fargo may request, which shall govern the issuance of the Letter of      Credit and Company’s obligation to reimburse Wells Fargo for any related      Letter of Credit draws (the “Obligation of  Reimbursement”). |
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| (c) | Expiration.  No      Letter of Credit shall be issued that has an expiry date that is later      than one (1) year from the date of issuance, or the Maturity Date in      effect on the date of issuance, whichever is  earlier. |
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| (d) | Obligation of      Reimbursement During Default Periods.  If Company is      unable, due to the existence of a Default Period or for any other reason,      to obtain an Advance to pay any Obligation of Reimbursement, Company shall      pay Wells Fargo on demand and in immediately available funds, the amount      of the Obligation of Reimbursement together with interest, accrued from      the date presentment of the underlying draft until reimbursement in full      at the Default Rate.  Wells Fargo is authorized, alternatively      and in its sole discretion, to make an Advance in an amount sufficient to      discharge the Obligation of Reimbursement and pay all accrued but unpaid      interest and fees with respect to the Obligation of      Reimbursement. |
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| 1.10 | Special      Account.  If      the Line of Credit is terminated for any reason while a Letter of Credit      is outstanding, or if after prepayment of the Revolving Note the L/C      Amount continues to exceed the Borrowing Base, then Company shall promptly      pay Wells Fargo in immediately available funds for deposit to the Special      Account, an amount equal, as the case may be, to either (a) the L/C Amount      plus any anticipated fees and costs, or (b) the amount by which the L/C      Amount exceeds the Borrowing Base.  If Company fails to pay      these amounts promptly, then Wells Fargo may in its sole discretion make      an Advance to pay these amounts and deposit the proceeds to the Special      Account.  The Special Account shall be an interest bearing      account maintained with Wells Fargo or any other financial institution      acceptable to Wells Fargo.  Wells Fargo may in its sole discretion      apply amounts on deposit in the Special Account to the      Indebtedness.  Company may not withdraw amounts deposited to the      Special Account until the Line of Credit has been terminated and all      outstanding Letters of Credit have either been returned to Wells Fargo or      have expired and the Indebtedness has been fully    paid. |
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| 2.1 | Grant of Security      Interest. Company hereby pledges, assigns and grants to Wells Fargo      , for the benefit of Wells Fargo and as agent for Wells Fargo Merchant      Services, L.L.C., a Lien and security interest (collectively referred to      as the “Security Interest”) in the Collateral, as security for the payment      and performance of all Indebtedness. Following request by Wells Fargo,      Company shall grant Wells Fargo, for the benefit of Wells Fargo and as      agent for Wells Fargo Merchant Services, L.L.C., a Lien and security      interest in all commercial tort claims that it may have against any      Person. |
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|   |   |
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| 2.2 | Notifying Account Debtors and      Other Obligors;      Collection of Collateral. If an Event of Default has occurred and      is continuing Wells Fargo may deliver a Record giving an account debtor or      other Person obligated to pay an Account, a General Intangible, or other      amount due, notice that the Account, General Intangible, or other amount      due has been assigned to Wells Fargo for security and must be paid      directly to Wells Fargo.  Company shall join in giving such      notice and shall Authenticate any Record giving such notice upon Wells      Fargo’s request.  After Company or Wells Fargo gives such      notice, Wells Fargo may, but need not, in Wells Fargo’s or in Company’s      name, demand, sue for, collect or receive any money or property at any      time payable or receivable on account of, or securing, such Account,      General Intangible, or other amount due, or grant any extension to, make      any compromise or settlement with or otherwise agree to waive, modify,      amend or change the obligations (including collateral obligations) of any      account debtor or other obligor.  Wells Fargo may, in Wells      Fargo’s name or in Company’s name, as Company’s agent and      attorney-in-fact, notify the United States Postal Service to change the      address for delivery of Company’s mail to any address designated by Wells      Fargo, otherwise intercept Company’s mail, and receive, open and dispose      of Company’s mail, applying all Collateral as permitted under this      Agreement and holding all other mail for Company’s account or forwarding      such mail to Company’s last knownaddress. |
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| 2.3 | Assignment of      Insurance.  As      additional security for the Indebtedness, Company hereby assigns to Wells      Fargo and to Wells Fargo Merchant Services, L.L.C., all rights of Company      under every policy of insurance covering the Collateral and all business      records and other documents relating to it, and all monies (including      proceeds and refunds) that may be payable under any policy, and Company      hereby directs the issuer of each policy to pay all such monies directly      to Wells Fargo, up to the then current balance of the Indebtedness      outstanding. Wells Fargo may (but need not), in Wells Fargo’s or Company’s      name, execute and deliver proofs of claim, receive payment of proceeds, up      to the then current balance of the Indebtedness outstanding, and endorse      checks and other instruments representing payment of the policy of      insurance, and, during a Default Period, in a commercially reasonable      manner, adjust, litigate, compromise or release claims against the issuer      of any policy.  Any monies received under any insurance policy      assigned to Wells Fargo, other than liability insurance policies, or      received as payment of any award or compensation for condemnation or      taking by eminent domain, shall be paid to Wells Fargo, up to the then      current balance of the Indebtedness outstanding, and, as determined by      Wells Fargo in its sole discretion, either      be applied to prepayment of the Indebtedness up to the then current      balance of the Indebtedness outstanding, or disbursed to Company under      terms reasonably satisfactory to Wells Fargo for application to the cost      of repairs, replacements, or restorations which shall be effected with      reasonable promptness and shall be of a value at least equal to the value      of the items or propertydestroyed. |
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| 2.4 | Company’s      Premises |
|-----|-------------------------------|

| (a) | Wells Fargo’s Right to      Occupy Company’s Premises.  Company hereby grants to      Wells Fargo the right, at any time during a Default Period which has not      been cured within three Business Days after commencement of the Default      Period, with notice to Company, to take exclusive possession of all      locations where Company conducts its business or has any rights of      possession, including the locations described on Exhibit B (the      “Premises”), until the earlier of (i) payment in full and discharge      of all Indebtedness and termination of the Line of Credit, or      (ii) final sale or disposition of all items constituting Collateral      and delivery of those items topurchasers. |
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| (b) | Wells Fargo’s Use of      Company’s Premises.  Subject to notice to Company, Wells      Fargo may use the Premises to store, process, manufacture, sell, use, and      liquidate or otherwise dispose of items that are Collateral, and for any      other purposes incidental to Company deemed appropriate by Wells Fargo in      good faith. |
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| (c) | Company’s Obligation      to Reimburse Wells Fargo.  Wells Fargo shall not be      obligated to pay rent or other compensation for the possession or use of      any Premises, but if Wells Fargo elects to pay rent or other compensation      to the owner of any Premises in order to have access to the Premises, then      Company shall promptly reimburse Wells Fargo all such amounts, as well as      all taxes, fees, charges and other reasonable expenses at any time payable      by Wells Fargo with respect to the Premises by reason of the execution,      delivery, recordation, performance or enforcement of any terms of this      Agreement. |
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| 2.5 | License.  Without      limiting the generality of any other Security Document, Company hereby      grants to Wells Fargo a non-exclusive, worldwide and royalty-free license      to use or otherwise exploit all Intellectual Property Rights of Company      for the purpose of: (a) completing the manufacture of any in-process      materials during any Default Period so that such materials become saleable      Inventory, all in accordance with the same quality standards previously      adopted by Company for its own manufacturing and subject to Company’s      reasonable exercise of quality control; and (b) selling, leasing or      otherwise disposing of any or all Collateral during any Default      Period. |
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| 2.6 | Financing Statements.  Company      authorizes Wells Fargo to file financing statements describing Collateral      to perfect Wells Fargo’s Security Interest in the Collateral, and Wells      Fargo may describe the Collateral as “all personal property” or “all      assets” or describe specific items of Collateral including commercial tort      claims as Wells Fargo may consider necessary or useful to perfect the      Security Interest.  All financing statements filed before the      date of this Agreement to perfect the Security Interest were authorized by      Company and are hereby re-authorized.  Following the termination      of the Line of Credit and payment of all Indebtedness, Wells Fargo shall,      at Company’s expense and within the time periods required under applicable      law, release or terminate any filings or other agreements that perfect the      Security Interest.   |
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| 2.7 | Setoff.  Wells      Fargo may at any time, in its sole discretion, with notice to Company,      setoff any liability owed to Company by Wells Fargo against any      Indebtedness, whether or not due. |
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| 2.8 | Collateral Related      Matters.  This Agreement does not contemplate a sale of      Accounts or chattel paper, and, as provided by law, Company is entitled to      any surplus and shall remain liable for any deficiency.  Wells      Fargo’s duty of care with respect to Collateral in its possession (as      imposed by law) will be deemed fulfilled if it exercises reasonable care      in physically keeping such Collateral, or in the case of Collateral in the      custody or possession of a bailee or other third Person, exercises      reasonable care in the selection of the bailee or third Person, and Wells      Fargo need not otherwise preserve, protect, insure or care for such      Collateral.  Wells Fargo shall not be obligated to preserve      rights Company may have against prior parties, to liquidate the Collateral      at all or in any particular manner or order or apply the Proceeds of the      Collateral in any particular order of application.  Wells Fargo      has no obligation to clean-up or prepare Collateral for      sale.  Company waives any right it may have to require Wells      Fargo to pursue any third Person for any of the    Indebtedness. |
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| 2.9 | Notices Regarding Disposition      of Collateral.  If notice to Company of any intended      disposition of Collateral or any other intended action is required by      applicable law in a particular situation, such notice will be deemed      commercially reasonable if given in the manner specified in Section 7.4 at      least ten calendar days before the date of intended disposition or other      action. |
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| 3.1 | Conditions Precedent to Initial      Advance and      Issuance of Initial Letter of Credit.  Wells Fargo’s      obligation to make the initial Advance  or issue the first      Letter of Credit shall be subject to the condition that Wells Fargo shall      have received this Agreement and each of the Loan Documents, and any      document, agreement, or other item described in or related to this      Agreement, and all fees and information described in Exhibit C, executed      and in form and content satisfactory to Wells  Fargo. |
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| 3.2 | Additional Conditions Precedent      to All Advances and Letters of Credit.  Wells Fargo’s      obligation to make any Advance (including the initial Advance) or issue      any Letter of Credit shall be subject to the further additional      conditions: (a) that the representations and warranties described in      Exhibit D are correct on the date of the Advance or the issuance of the      Letter of Credit, except to the extent that such representations and      warranties relate solely to an earlier date; and (b) that no event has      occurred and is continuing, or would result from the requested Advance or      issuance of the Letter of Credit that would result in an Event of      Default. |
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| 3.3 | Line      Activation Periods. |
|-----|-------------------------------|

|  | (a) | As      used herein “Line Activation Period” means any period in which (i) any      Advances or Non-Cash Secured LCs are outstanding or in which Advances or      Non-Cash Secured LCs may be requested by Company hereunder, subject to all      of the terms and conditions of this Agreement, or (ii) Wells Fargo’s net      credit exposure under Section 1.2(a)(iv) above exceeds      $500,000. |
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|  | (b) | Initially,      the Line Activation Period shall not be in effect.  Hereafter,      Company may, at its option, put a Line Activation Period into effect, by      giving Wells Fargo written notice at least 30 days before the Line      Activation Period is to go into effect, together with such information      relating to the Accounts and other Collateral as Wells Fargo shall      specify.  Putting the Line Activation Period into effect will be      conditioned on the following: (i) Wells Fargo shall have completed an      up-dated Collateral examination and the results thereof shall be      satisfactory to Wells Fargo in its discretion, and (ii) no Default or      Event of Default shall have occurred and be  continuing. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Company      may, at its option, elect to terminate a Line Activation Period, by giving      Wells Fargo at least 10 days prior written notice thereof, specifying the      date the Line Activation Period is to be terminated.  On or      prior to the Business Day immediately preceding the date the Line      Activation Period is to be terminated, Company will pay to Wells Fargo, by      wire transfer, an amount sufficient to repay in full all outstanding      Advances, all accrued interest thereon and all other outstanding monetary      Obligations, and cause all outstanding Non-Cash Secured LCs to be      cancelled with the consent of the beneficiary thereof, pursuant to      documentation acceptable to Wells Fargo, in its discretion, and provide      evidence to Wells Fargo confirming that Company’s cash and Cash      Equivalents plus availability under the Line of Credit are equal to      or more than $3,000,000, and reduce Wells Fargo’s net credit exposure      under Section 1.2(a)(iv) above to $500,000 or  less. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | During      any period which is not a Line Activation Period, (i) no Advances will be      made and no Non-Cash Secured LCs will be issued, (ii) Company shall at all      times maintain cash and Cash Equivalents, plus availability under the Line      of Credit totaling $3,000,000 or more, and (iii) Wells Fargo’s net credit      exposure under Section 1.2(a)(iv) above shall not exceed      $500,000. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | As      used herein, “Non-Cash Secured LC” means a Letter of Credit with respect      to which the Company’s obligations to reimburse Wells Fargo are not      secured by separate, dedicated cash collateral held by Wells Fargo in an      amount equal to not less than 100% of the amount of such Letter of      Credit. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | REPRESENTATIONS      AND WARRANTIES |
|----|-------------------------------------|

|   | To      induce Wells Fargo to enter into this Agreement, Company makes the      representations and warranties described in Exhibit D.  Any      request for an Advance will be deemed a representation by Company that all      representations and warranties described in Exhibit D are true, correct,      and complete as of the time of the request, unless they relate exclusively      to an earlier date. Company shall promptly deliver a Record notifying      Wells Fargo of any change in circumstance that would affect the accuracy      of any representation or warranty, unless the representation and warranty      specifically relates to an earlierdate. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | COVENANTS |
|----|-----------|

|   | So      long as the Indebtedness remains unpaid, or the Line of Credit has not      been terminated, Company shall comply with each of the following      covenants, unless Wells Fargo shall consent otherwise in an Authenticated      Record delivered to Company. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.1 | Reporting      Requirements.  Company      shall deliver to Wells Fargo the following information, compiled where      applicable using GAAP consistently applied, in form and content acceptable      to Wells Fargo: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Annual Financial      Statements.  As soon as available and in any event within      120 days after Company’s fiscal year end, Company’s audited financial      statements prepared by an independent certified public accountant      reasonably acceptable to Wells Fargo, prepared, if      requested by Wells Fargo, on a consolidated and consolidating basis to      include Company’s Affiliates.  The annual financial statements      shall be accompanied by a certificate (the “Compliance Certificate”) in      the form of Exhibit E that is signed by Company’s chief accounting      officer. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Monthly Financial      Statements.  As soon as available and in any event within      25 days after the end of each month, a Company prepared balance sheet,      income statement, and statement of retained earnings prepared for that      month and for the year–to-date period then ended, prepared, if requested      by Wells Fargo, on a consolidated and consolidating basis to include      Company’s Affiliates, and stating in comparative form the figures for the      corresponding date and periods in the prior fiscal year, subject to      year-end adjustments.  The financial statements shall be      accompanied by a Compliance Certificate in the form of Exhibit E that is      signed by Company’s chief accountingofficer. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Collateral      Reports.  No later than 15 days after each month end (or      more frequently if Wells Fargo shall request it), detailed agings of      Company’s accounts receivable and accounts payable, a calculation of      Company’s Accounts and Eligible Accounts as of the end of that month or      shorter time period requested by Wells Fargo, and an Inventory summary      report by location and category. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Projections.  No      later than 60 days after the beginning of each fiscal year end, Company’s      projected balance sheet and income statement for each month of the next      fiscal year, certified as accurate by Company’s chief accounting officer      and accompanied by a statement of assumptions and supporting schedules and      information. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Supplemental      Reports. |
|-----|----------------------------|

----

|  (f) | Litigation.  No      later than three Business Days after discovery, a Record notifying Wells      Fargo of any litigation or other proceeding before any court or      governmental agency which seeks a monetary recovery against Company in      excess of $10,000. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Intellectual      Property.  (i)      No later than 30 days before it acquires material Intellectual Property      Rights, a Record notifying Wells Fargo of Company’s intention to acquire      such rights; (ii) except for transfers permitted under Section 5.18, no      later than 30 days before it disposes of material Intellectual Property      Rights, a Record notifying Wells Fargo of Company’s intention to dispose      of such rights, along with copies of all proposed documents and agreements      concerning the disposal of such rights as requested by Wells Fargo; (iii)      promptly upon discovery, a Record notifying Wells Fargo of (A) any      Infringement of Company’s Intellectual Property Rights by any Person, (B)      claims that Company is Infringing another Person’s Intellectual Property      Rights and (C) any threatened cancellation, termination or material      limitation of Company’s Intellectual Property Rights; and (iv) promptly      upon receipt, copies of all registrations and filings with respect to      Company’s Intellectual PropertyRights. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | Defaults.  No      later than three days after learning of the probable occurrence of any      Event of Default, a Record notifying Wells Fargo of the Event of Default      and the steps being taken by Company to cure the Event of      Default. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | Disputes.  Promptly      upon discovery, a Record notifying Wells Fargo of (i) any disputes or      claims by Company’s customers exceeding $5,000 individually or $10,000 in      the aggregate during any fiscal year; (ii) credit memos not      previously reported in Section 5.1(e); and (iii) any goods returned      to or recovered by Company outside of the ordinary course of business or      in the ordinary course of business but with a value in an amount in excess      of $25,000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | Changes in Officers      and Directors.  Promptly following occurrence, a Record      notifying Wells Fargo of any change in the persons constituting Company’s      Officers and Directors. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | Collateral.  Promptly      upon discovery, a Record notifying Wells Fargo of any loss of or material      damage to any Collateral or of any substantial adverse change in any      Collateral or the prospect of itspayment. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l) | Commercial Tort      Claims.  Promptly upon discovery, a Record notifying      Wells Fargo of any commercial tort claims brought by Company against any      Person, including the name and address of each defendant, a summary of the      facts, an estimate of Company’s damages, copies of any complaint or demand      letter submitted by Company, and such other information as Wells Fargo may      request. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | Reports to      Owners.  Promptly upon distribution, copies of all      financial statements, reports and proxy statements which Company shall      have sent to its Owners. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (n) | Tax Returns of      Company.  No later than five days after they are      required to be filed, copies of Company’s signed and dated state and      federal income tax returns and all related schedules, and copies of any      extension requests. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o) | [intentionally      omitted] |
|-----|------------------------------|

| (p) | Violations of      Law.  No later than three days after discovery of any      violation, a Record notifying Wells Fargo of Company’s violation of any      law, rule or regulation, the non-compliance with which could have a      Material Adverse Effect on Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q) | Pension      Plans.  (i) Promptly upon discovery, and in any event      within 30 days after Company knows or has reason to know that any      Reportable Event with respect to any Pension Plan has occurred, a Record      authenticated by Company’s chief accounting officer notifying Wells Fargo      of the Reportable Event in detail and the actions which Company proposes      to take to correct the deficiency, together with a copy of any related      notice sent to the Pension Benefit Guaranty Corporation; (ii) promptly      upon discovery, and in any event within 10 days after Company fails      to make a required quarterly Pension Plan contribution under Section      412(m) of the IRC, a Record authenticated by the Company’s chief      accounting officer notifying Wells Fargo of the failure in detail and the      actions that Company will take to cure the failure, together with a copy      of any related notice sent to the Pension Benefit Guaranty Corporation;      and (iii) promptly upon discovery, and in any event within 10 days after      Company knows or has reason to know that it may be liable or may be      reasonably expected to have liability for any withdrawal, partial      withdrawal, reorganization or other event under any Multiemployer Plan      under Sections 4201 or 4243 of ERISA, a Record authenticated by Company’s      chief accounting officer notifying Wells Fargo of the details of the event      and the actions that Company proposes to take in  response. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r) | Other      Reports.  From time to time, with reasonable promptness,      all receivables schedules, collection reports, deposit records, equipment      schedules, invoices to account debtors, shipment documents and delivery      receipts for goods sold, and such other materials, reports, records or      information as Wells Fargo mayrequest. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Financial Covenants.  Company      agrees to comply with the financial covenants described below, which shall      be calculated using GAAP consistently applied, except as they may be      otherwise modified by the following capitalized    definitions: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Minimum Book Net      Worth.  Company shall maintain, at each date below, its      Book Net Worth, determined as of the end of each month, in an amount not      less than the amount set forthbelow: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| End of Month                                                      | Minimum Book Net Worth |
|-------------------------------------------------------------------|------------------------|
| April,      2008                                                  | $18,500,000            |
| May,      2008                                                    | $19,250,000            |
| June,      2008                                                   | $20,000,000            |
| July,      2008                                                   | $20,400,000            |
| August,      2008                                                 | $20,800,000            |
| September,      2008                                              | $21,000,000            |
| October,      2008                                                | $21,500,000            |
| November,      2008                                               | $22,000,000            |
| December, 2008 and each month thereafter | $21,500,000            |

----

| (b) | Minimum Net      Income.  Company shall achieve, for each period described      below, Net Income of not less than the amount set forth for each such      period (numbers appearing between “< >” are    negative): |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                                          | Minimum Net Income |
|-------------------------------------------------|--------------------|
| January      1, 2008 Through June 30, 2008      | $2,500,000         |
| January      1, 2008 Through September 30, 2008 | $3,300,000         |
| January      1, 2008 Through December 31, 2008  | $4,000,000         |

| (c) | Capital      Expenditures.  Company shall not incur or contract to      incur non-financed Capital Expenditures of more than $2,000,000 in the      aggregate during any fiscalyear.   |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Other      Liens and PermittedLiens.   |
|-----|--------------------------------------------------|

| (a) | Other Liens; Permitted      Liens. Company shall not      create, incur or suffer to exist any Lien upon any of its assets, now      owned or later acquired, as security for any indebtedness, with the      exception of the following (each a “Permitted Lien”; collectively,      “Permitted Liens”): (i) In the case of real property, covenants,      restrictions, rights, easements and minor irregularities in title which do      not materially interfere with Company’s business or operations as      presently conducted; (ii) Liens in existence on the date of this Agreement      that are described in Exhibit F and secure indebtedness for borrowed money      permitted under Section 5.4; (iii) The Security Interest and Liens created      by the Security Documents; and (iv) Purchase money Liens relating to the      acquisition of Equipment not exceeding the lesser of cost or fair market      value, and not exceeding $1,000,000 for any one purchase or $3,000,000 in      the aggregate during any fiscal year, and so long as no Default Period is      then in existence and none would exist immediately after such      acquisition. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Financing      Statements.  Company shall not authorize the filing of      any financing statement by any Person as Secured Party with respect to any      of Company’s assets, other than Wells Fargo.  Company shall not      amend any financing statement filed by Wells Fargo as Secured Party except      as permitted by law. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.4 | Indebtedness.  Company      shall not incur, create, assume or permit to exist any indebtedness or      liability on account of deposits or letters of credit issued on Company’s      behalf, or advances or any indebtedness for borrowed money of any kind,      whether or not evidenced by an instrument, except: (a) Indebtedness      described in this Agreement; (b) indebtedness of Company described in      Exhibit F; and (c) indebtedness secured by Permitted  Liens. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Guaranties.  Company      shall not assume, guarantee, endorse or otherwise become directly or      contingently liable for the obligations of any Person, except: (a) the      endorsement of negotiable instruments by Company for deposit or collection      or similar transactions in the ordinary course of business; and (b)      guaranties, endorsements and other direct or contingent liabilities in      connection with the obligations of other Persons in existence on the date      of this Agreement and described in ExhibitF. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Investments and      Subsidiaries.  Company      shall not make or permit to exist any loans or advances to, or make any      investment or acquire any interest whatsoever in, any Person or Affiliate,      including any partnership or joint venture, nor purchase or hold      beneficially any stock or other securities or evidence of indebtedness of      any Person or Affiliate, except: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Investments      in direct obligations of the United States of America or any of its      political subdivisions whose obligations constitute the full faith and      credit obligations of the United States of America and have a maturity of      one year or less, commercial paper issued by U.S. corporations rated “A-1”      or “A-2” by Standard & Poor’s Ratings Services or “P-1” or “P-2”      by Moody’s Investors Service or certificates of deposit or bankers’      acceptances having a maturity of one year or less issued by members of the      Federal Reserve System having deposits in excess of $100,000,000 (which      certificates of deposit or bankers’ acceptances are fully insured by the      Federal Deposit InsuranceCorporation); |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Travel      advances or loans to Company’s Officers and employees not exceeding at any      one time an aggregate of $15,000; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Prepaid      rent not exceeding one month or security deposits;  and |
|-----|----------------------------------------------------------------------|

| (d) | Current      investments and future investments in those Subsidiaries in existence on      the date of this Agreement which are identified on Exhibit D, such future      investments not to exceed $1,000,000 in the aggregate for all investments      in all such Subsidiaries. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | Dividends and      Distributions.      Company shall not declare or pay any dividends (other than      dividends payable solely in stock of Company) on any class of its stock,      or make any payment on account of the purchase, redemption or retirement      of any shares of its stock, or other securities or evidence of its      indebtedness or make any distribution regarding its stock, either directly      or indirectly.  Accrual of dividends on Company’s existing      Series A Preferred Stock shall not be deemed to violate this Section 5.7,      provided Company does not declare or pay any such dividends, without the      prior written consent of Wells Fargo (which shall be a matter of its good      faith business judgment). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | [intentionally      omitted] |
|-----|------------------------------|

| 5.9 | [intentionally      omitted] |
|-----|------------------------------|

----

| 5.10 | Books      and Records; Collateral Examination; Inspection and      Appraisals. |
|------|---------------------------------------------------------------------------------|

| (a) | Books and Records;      Inspection.  Company shall keep complete and accurate      books and records with respect to the Collateral and Company’s business      and financial condition and any other matters that Wells Fargo may      request, in accordance with GAAP. Company shall permit any auditor or      collateral examiner, attorney, accountant or other agent of Wells Fargo to      audit, review, make extracts from and copy any of its books and records at      any time during ordinary business hours, with two Business Days prior      notice to Company (except that such notice shall not be required if an      Event of Default or an event which, with notice or lapse of time or both      would constitute an Event of Default, has occurred and is continuing), and      to discuss Company’s affairs with any of its Directors, Officers,      employees, Owners or agents. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Authorization to      Company’s Agents to Make Disclosures to Wells      Fargo.  Company authorizes all accountants and other      Persons acting as its agent to disclose and deliver to Wells Fargo’s      employees, accountants, attorneys and other Persons acting as its agent,      at Company’s expense, all financial information, books and records, work      papers, management reports and other information in their possession      regarding Company, except for documents protected by the attorney client      privilege or the attorney work product    privilege.   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Collateral Exams and      Inspections.  Company shall permit Wells Fargo’s      employees, accountants, attorneys or other Persons acting as its agent, to      examine and inspect any Collateral or any other property of Company at any      time during ordinary businesshours. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | [intentionally      omitted] |
|-----|------------------------------|

| 5.11 | Account      Verification; Payment of PermittedLiens. |
|------|-------------------------------------------------------|

| (a) | Account      Verification.  Wells Fargo or its agents may (i) contact      account debtors and other obligors at any time to verify Company’s      Accounts; and (ii) require Company to send requests for verification of      Accounts or send notices of assignment of Accounts to account debtors and      other obligors.   |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Covenant to Pay      Permitted Liens.  Company shall pay when due each account      payable due to any Person holding a Permitted Lien (as a result of such      payable) on any Collateral. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.12 | Compliance      with Laws. |
|------|----------------------------|

| (a) | General Compliance      with Applicable Law; Use of Collateral.  Company shall      (i) comply, and cause each Subsidiary to comply, with the      requirements of applicable laws and regulations, the non-compliance with      which would have a Material Adverse Effect on  its business or      its financial condition and (ii) use and keep the Collateral, and      require that others use and keep the Collateral, only for lawful purposes,      without violation of any federal, state or local law, statute or      ordinance. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Compliance with      Federal Regulatory Laws.  Company shall (i) prohibit, and      cause each Subsidiary to prohibit, any Person that is an Owner or Officer      from being listed on the Specially Designated Nationals and Blocked Person      List or other similar lists maintained by the Office of Foreign Assets      Control ("OFAC"), the Department of the Treasury or included      in any Executive Orders, (ii) not permit the proceeds of the Line of      Credit or any other financial accommodation extended by Wells Fargo to be      used in any way that violates any foreign asset control regulations of      OFAC or other applicable law, (iii) comply , and cause each Subsidiary to      comply, with all applicable Bank Secrecy Act laws and regulations, as      amended from time to time, and (iv) otherwise comply with the USA Patriot      Act and Wells Fargo's related policies and    procedures. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | Compliance with      Environmental Laws.  Company shall (i) comply , and cause      each Subsidiary to comply, with the requirements of applicable      Environmental Laws and obtain and comply with all permits, licenses and      similar approvals required by them, and (ii) not generate, use, transport,      treat, store or dispose of any Hazardous Substances in such a manner as to      create any material liability or obligation under the common law of any      jurisdiction or any EnvironmentalLaw. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.13 | Payment of Taxes and Other      Claims.  Company      shall pay or discharge, when due, and cause each Subsidiary to pay or      discharge, when due, (a) all taxes, assessments and governmental      charges levied or imposed upon it or upon its income or profits, upon any      properties belonging to it (including the Collateral) or upon or against      the creation, perfection or continuance of the Security Interest, prior to      the date on which penalties attach, (b) all federal, state and local      taxes required to be withheld by it, and (c) all lawful claims for      labor, materials and supplies which, if unpaid, might by law become a Lien      upon any properties of Company, although Company shall not be required to      pay any such tax, assessment, charge or claim whose amount, applicability      or validity is being contested in good faith by appropriate proceedings      and for which proper reserves have beenmade. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.14 | Maintenance      of Collateral andProperties.   |
|------|-----------------------------------------------------------|

| (a) | Company      shall keep and maintain the Collateral and all of its other properties      necessary or useful in its business in good condition, repair and working      order (normal wear and tear excepted) and will from time to time replace      or repair any worn, defective or broken parts, although Company may      discontinue the operation and maintenance of any properties if Company      believes that such discontinuance is desirable to the conduct of its      business and not disadvantageous in any material respect to Wells      Fargo.  Company shall take all commercially reasonable steps      necessary to protect and maintain its Intellectual Property      Rights. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Company      shall defend      the Collateral against all Liens, claims and demands of all third Persons      claiming any interest in the Collateral. Company shall keep all Collateral      free and clear of all Liens except Permitted Liens. Company shall take all      commercially reasonable steps necessary to prosecute any Person Infringing      its Intellectual Property Rights and to defend itself against any Person      accusing it of Infringing any Person’s Intellectual Property      Rights.        |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.15 | Insurance.  Company      shall at all times maintain insurance with insurers acceptable to Wells      Fargo, in such amounts, on such terms (including any deductibles) and      against such risks as Wells Fargo may require, in such amounts and against      such risks as is usually carried by companies engaged in similar business      and owning similar properties in the same geographical areas in which      Company operates.  Company shall also, at all times and without      limitation maintain business interruption insurance (including force      majeure coverage) an so-called      extended coverage), theft, collision (for Collateral consisting of motor      vehicles) and such other risks and in such amounts as Wells Fargo may      reasonably request, with any loss payable to Wells Fargo to the extent of      its interest, and all such policies of insurance shall contain a lender’s      loss payable endorsement for the benefit of Wells Fargo.  All      policies of liability insurance shall name Wells Fargo as an additional      insured.d keep all tangible Collateral insured against risks of      fire (including |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.16 | Preservation of      Existence.  Company      shall preserve and maintain its existence and all of its rights,      privileges and franchises necessary or desirable in the normal conduct of      its business and shall conduct its business in an orderly, efficient and      regular manner. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.17 | Delivery of Instruments,      etc.  Upon      request by Wells Fargo, Company shall promptly deliver to Wells Fargo in      pledge all instruments, documents and chattel paper constituting      Collateral, endorsed or assigned byCompany. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.18 | Sale or Transfer of Assets;      Suspension of Business Operations.  Company      shall not sell, lease, assign, transfer or otherwise dispose of      (a) the stock of any Subsidiary, (b) all or a substantial part      of its assets, or (c) any Collateral or any interest in Collateral      (whether in one transaction or in a series of transactions) to any other      Person other than the sale of Inventory in the ordinary course of business      and shall not liquidate, dissolve or suspend business      operations.  Company shall not transfer any part of its      ownership interest in any Intellectual Property Rights and shall not      permit its rights as licensee of Licensed Intellectual Property to lapse,      except that Company may transfer such rights or permit them to lapse if it      has reasonably determined that such Intellectual Property Rights are no      longer useful in its business.  If Company transfers any      Intellectual Property Rights for value, Company shall pay the Proceeds to      Wells Fargo for application to the Indebtedness.  Company shall      not license any other Person to use any of Company’s Intellectual Property      Rights, except that Company may grant licenses in the ordinary course of      its business in connection with sales of Inventory or the provision of      services to its customers. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.19 | Consolidation and Merger; Asset      Acquisitions.  Company      shall not consolidate with or merge into any other entity, or permit any      other entity to merge into it, or acquire (in a transaction analogous in      purpose or effect to a consolidation or merger) all or substantially all      of the assets of any other entity. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.20 | Sale and Leaseback.  Company      shall not enter into any arrangement, directly or indirectly, with any      other Person pursuant to which Company shall sell or transfer any real or      personal property, whether owned now or acquired in the future, and then      rent or lease all or part of such property or any other property which      Company intends to use for substantially the same purpose or purposes as      the property being sold ortransferred. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.21 | Restrictions on Nature of      Business.  Company      will not engage in any line of business materially different from that      presently engaged in by Company, and will not purchase, lease or otherwise      acquire assets not related to its business.  The manufacture of      insulated glass units by Company’s affiliate, Southwall Insulating Glass,      LLC, shall not be deemed to breach this Section  5.21. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.22 | Accounting.  Company      will not adopt any material change in accounting principles except as      required by GAAP, consistently applied.  Company will not change      its fiscal year. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.23 | Discounts, etc.  After      notice from Wells Fargo, Company will not grant any discount, credit or      allowance to any customer of Company or accept any return of goods      sold.  Company will not at any time modify, amend, subordinate,      cancel or terminate any Account. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.24 | Pension Plans.  Except as      disclosed to Wells Fargo in a Record prior to the date of this Agreement,      neither Company nor any ERISA Affiliate will (a) adopt, create, assume or      become party to any Pension Plan, (b) become obligated to contribute to      any Multiemployer Plan, (c) incur any obligation to provide      post-retirement medical or insurance benefits with respect to employees or      former employees (other than benefits required by law) or (d) amend any      Plan in a manner that would materially increase its funding      obligations. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.25 | Place of Business;      Name.  Company      will not transfer its chief executive office or principal place of      business, or move, relocate, close or sell any business      Premises.  Company will not permit any tangible Collateral or      any records relating to the Collateral to be located in any state or area      in which, in the event of such location, a financing statement covering      such Collateral would be required to be, but has not in fact been, filed      in order to perfect the Security Interest.  Company will not      change its name or jurisdiction oforganization. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.26 | Constituent Documents; S      Corporation Status.  Company      will not amend its Constituent Documents. Company will not become an      S Corporation. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.27 | Performance by Wells      Fargo.  If Company fails to perform or observe any of its      obligations under this Agreement at any time, Wells Fargo may, but need      not, perform or observe them on behalf of Company and may, but need not,      take any other actions which Wells Fargo may reasonably deem necessary to      cure or correct this failure; and Company shall pay Wells Fargo upon      demand the amount of all costs and expenses (including reasonable      attorneys’ fees and legal expense) incurred by Wells Fargo in performing      these obligations, together with interest on these amounts at the Default      Rate. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.28 | Wells Fargo Appointed as      Company’s Attorney in Fact.  To facilitate Wells Fargo’s      performance or observance of Company’s obligations under this Agreement,      Company hereby irrevocably appoints Wells Fargo and Wells Fargo’s agents,      as Company’s attorney in fact (which appointment is coupled with an      interest) with the right (but not the duty) to create, prepare, complete,      execute, deliver, endorse or file on behalf of Company any instruments,      documents, assignments, security agreements, financing statements,      applications for insurance and any other agreements or any Record required      to be obtained, executed, delivered or endorsed by Company in accordance      with the terms of this Agreement, provided that said power of attorney      shall be exercised in good faith and only in the event (i) an Event of      Default has occurred and is continuing, or (ii) action is required      pursuant hereto to protect the Collateral or Wells Fargo’s interest      therein. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1 | Events of Default.  An “Event      of Default” means any of thefollowing: |
|-----|-------------------------------------------------------------------------------------------------|

----

| (a) | Company      fails to pay any the amount of any Indebtedness on the date that it      becomes due and payable; |
|-----|----------------------------------------------------------------------------------------------------------------|

| (b) | Company      fails to observe or perform any covenant or agreement of Company set forth      in this Agreement, or in any of the Loan Documents, or in any other      document or agreement described in or related to this Agreement or to any      Indebtedness, or any covenant in Section 5.2 becomes inapplicable due to      the lapse of time, and Company and Wells Fargo fail to come to an      agreement acceptable to Wells Fargo in Wells Fargo’s sole discretion to      amend the covenant to apply to futureperiods; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | An      Overadvance arises as the result of any reduction in the Borrowing Base,      or arises in any manner or on terms not otherwise approved of in advance      by Wells Fargo in a Record that it has  Authenticated; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | An      event of default or termination event (however defined) occurs under any      swap, derivative, foreign exchange, hedge or any similar transaction or      arrangement entered into between Company and Wells  Fargo; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | A      Change of Control shall occur; |
|-----|---------------------------------------|

| (f) | Company      or any Guarantor becomes insolvent or admits in a Record an inability to      pay debts as they mature, or Company or any Guarantor makes an assignment      for the benefit of creditors; or Company or any Guarantor applies for or      consents to the appointment of any receiver, trustee, or similar officer      for the benefit of Company or any Guarantor, or for any of their      properties; or any receiver, trustee or similar officer is appointed      without the application or consent of Company or such Guarantor; or any      judgment, writ, warrant of attachment or execution or similar process is      issued or levied against a substantial part of the property of Company or      any Guarantor; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Company      or any Guarantor files a petition under any chapter of the United States      Bankruptcy Code or under the laws of any other jurisdiction naming Company      or such Guarantor as debtor; or any such petition is instituted against      Company or any such Guarantor; or Company or any Guarantor institutes (by      petition, application, answer, consent or otherwise) any bankruptcy,      insolvency, reorganization, debt arrangement, dissolution, liquidation or      similar proceeding under the laws of any jurisdiction; or any such      proceeding is instituted (by petition, application or otherwise) against      Company or any such Guarantor. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | [intentionally      omitted] |
|-----|------------------------------|

| (i) | Any      representation or warranty made by Company in this Agreement or by any      Guarantor in any Guaranty, or by Company (or any of its Officers) or any      Guarantor in any agreement, certificate, instrument or financial statement      or other statement delivered to Wells Fargo in connection with this      Agreement or pursuant to such Guaranty is untrue or misleading in any      material respect when delivered to WellsFargo; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | A      final, non-appealable arbitration award, judgment, or decree or order for      the payment of money is entered against Company, which is not immediately      stayed or appealed, and which is in an amount in excess of (i) $500,000      for any individual arbitration award, judgment, or decree or order for the      payment of money, or (ii) $1,000,000 for all individual      arbitration award, judgment, or decree or order for the payment of money      during the term of thisAgreement; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (k) | Company      is in default with respect to any bond, debenture, note or other evidence      of material indebtedness issued by Company that is held by any third      Person other than Wells Fargo, or under any instrument under which any      such evidence of indebtedness has been issued or by which it is governed,      or under any material lease or other contract, and the applicable grace      period, if any, has expired, regardless of whether such default has been      waived by the holder of suchindebtedness; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l) | Company      liquidates, dissolves, terminates or suspends its business operations or      otherwise fails to operate its business in the ordinary course, or merges      with another Person; or sells or attempts to sell all or substantially all      of its assets; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | Company      fails to pay any indebtedness or obligation owed to Wells Fargo which is      unrelated to the Line of Credit or this Agreement as it becomes due and      payable; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n) | Any      Guarantor repudiates or purports to revoke the Guarantor’s Guaranty, or      fails to perform any obligation under such Guaranty, or any individual      Guarantor dies or becomes incapacitated, or any other Guarantor ceases to      exist for any reason; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o) | Company      engages in any act prohibited by any Subordination Agreement, or makes any      payment on Subordinated Indebtedness (as defined in the Subordination      Agreement) that the Subordinated Creditor was not contractually entitled      to receive; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p) | Any      event or circumstance occurs that Wells Fargo in good faith believes may      impair the prospect of payment of all or part of the Indebtedness, or      Company’s ability to perform any of its material obligations under any of      the Loan Documents, or any other document or agreement described in or      related to this Agreement, or there occurs which has a Material Adverse      Effect. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q) | The      chairman, president, chief operating officer or chief accounting officer      of the Company or any Owner of at least fifteen percent (15%) of the      issued and outstanding common stock of the Company is convicted of a      felony under state or federal law, or Company hires a chairman, president,      chief operating officer or chief accounting officer of the Company who has      been convicted of any such felony, or a Person becomes an Owner of at      least fifteen percent (15%) of the issued and outstanding common stock of      Company who has been convicted of any such  felony. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r) | Any      Reportable Event, which Wells Fargo in good faith believes to constitute      sufficient grounds for termination of any Pension Plan or for the      appointment of a trustee to administer any Pension Plan, has occurred and      is continuing 30 days after Company gives Wells Fargo a Record      notifying it of the Reportable Event; or a trustee is appointed by an      appropriate court to administer any Pension Plan; or the Pension Benefit      Guaranty Corporation institutes proceedings to terminate or appoint a      trustee to administer any Pension Plan; or Company or any ERISA Affiliate      files for a distress termination of any Pension Plan under Title IV of      ERISA; or Company or any ERISA Affiliate fails to make any quarterly      Pension Plan contribution required under Section 412(m) of the IRC, which      Wells Fargo in good faith believes may, either by itself or in combination      with other failures, result in the imposition of a Lien on Company’s      assets in favor of the Pension Plan; or any withdrawal, partial      withdrawal, reorganization or other event occurs with respect      to a Multiemployer Plan which could reasonably be expected to result in a      material liability by Company to the Multiemployer Plan under Title IV of      ERISA. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.2 | Rights and Remedies.  During any      Default Period, Wells Fargo may in its discretion exercise any or all of      the following rights and remedies: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Wells      Fargo may, with notice to Company, terminate the Line of Credit and      decline to make Advances, and terminate any services extended to Company      under the Master Agreement for Treasury Management    Services; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Wells      Fargo may declare the Indebtedness to be immediately due and payable and      accelerate payment of the Revolving Note, and all Indebtedness shall      immediately become due and payable, without presentment, notice of      dishonor, protest or further notice of any kind, all of which Company      hereby expressly waives; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Wells      Fargo may, with notice to Company, apply any money owing by Wells Fargo to      Company to payment of theIndebtedness; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (d) | Wells      Fargo may exercise and enforce any rights and remedies available upon      default to a secured party under the UCC, including the right to sell,      lease or otherwise dispose of Collateral for cash or on credit (with or      without giving warranties as to condition, fitness, merchantability or      title to Collateral, and in the event of a credit sale, Indebtedness shall      be reduced only to the extent that payments are actually received), and      Company will upon Wells Fargo’s demand assemble the Collateral and make it      available to Wells Fargo at any place designated by Wells Fargo which is      reasonably convenient to bothparties; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Wells      Fargo may exercise and enforce its rights and remedies under any of the      Loan Documents and any other document or agreement described in or related      to this Agreement; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Company      will pay Wells Fargo upon demand in immediately available funds an amount      equal to the Aggregate Face Amount plus any anticipated costs and fees for      deposit to the Special Account pursuant to Section  1.10; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Wells      Fargo may for any reason apply for the appointment of a receiver of the      Collateral, to which appointment Company hereby consents;    and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | Wells      Fargo may exercise any other rights and remedies available to it by law or      agreement. |
|-----|-------------------------------------------------------------------------------------------------------|

| 6.3 | Immediate Default and      Acceleration.  Following the occurrence of an Event of      Default described in Section 6.1(f) or (g), the Line of Credit shall      immediately terminate and all of Company’s Indebtedness shall immediately      become due and payable without presentment, demand, protest or notice of      any kind. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.  | MISCELLANEOUS |
|----------|---------------|

| 7.1 | No Waiver; Cumulative      Remedies.  No delay or any single or partial exercise by      Wells Fargo of any right, power or remedy under the Loan Documents, or      under any other document or agreement described in or related to this      Agreement, shall constitute a waiver      of any other right, power or remedy under the Loan Documents or granted by      Company to Wells Fargo under other agreements or documents that are      unrelated to the Loan Documents.  No notice to or demand on      Company in any circumstance shall entitle Company to any additional notice      or demand in any other circumstances.  The remedies provided in      the Loan Documents or in any other document or agreement described in or      related to this Agreement are cumulative and not exclusive of any remedies      provided by law.  Wells Fargo may comply with applicable law in      connection with a disposition of Collateral, and such compliance will not      be considered to adversely affect the commercial reasonableness of any      sale of the Collateral. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.2 | Amendment; Consents and      Waivers; Authentication.  No amendment or modification of      any Loan Documents, or any other document or agreement described in or      related to this Agreement, or consent to or waiver of any Event of      Default, or consent to or waiver of the application of any covenant or      representation set forth in any of the Loan Documents, or any other      document or agreement described in or related to this Agreement, or any      release of Wells Fargo’s Security Interest in any Collateral, shall be      effective unless it has      been agreed to by Wells Fargo and memorialized in a Record that: (a)      specifically states that it is intended to amend or modify specific Loan      Documents, or any other document or agreement described in or related to      this Agreement, or waive any Event of Default or the application of any      covenant or representation of any terms of specific Loan Documents, or any      other document or agreement described in or related to this Agreement, or      is intended to release Wells Fargo’s Security Interest in specific      Collateral; and (b) is Authenticated by the signature of an authorized      employee of both parties, or by an authorized employee of Wells Fargo with      respect to a consent or waiver.  The terms of an amendment,      consent or waiver memorialized in any Record shall be effective only to      the extent, and in the specific instance, and for the limited purpose to      which Wells Fargo has agreed. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Execution in Counterparts;      Delivery of Counterparts.  This Agreement and all other      Loan Documents, or any other document or agreement described in or related      to this Agreement, and any amendment or modification to them may be      Authenticated by the parties in any number of counterparts, each of which,      once authenticated and delivered in accordance with the terms of this      Section 7.3, will be deemed an original, and all such counterparts, taken      together, shall constitute one and the same      instrument.  Delivery by fax or by encrypted e-mail or e-mail      file attachment of any counterpart to any Loan Document Authenticated by      an authorized signature will be deemed the equivalent of the delivery of      the original Authenticated instrument.  Company shall send the      original Authenticated counterpart to Wells Fargo by first class U.S. mail      or by overnight courier, but Company’s failure to deliver a Record in this      form shall not affect the validity, enforceability, and binding effect of      this Agreement or the other Loan Documents, or any other document or      agreement described in or related to this  Agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | Notices, Requests, and      Communications; Confidentiality.  Except as otherwise      expressly provided in thisAgreement: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Delivery of Notices,      Requests and Communications.  Any notice, request,      demand, or other communication by either party that is required under the      Loan Documents, or any other document or agreement described in or related      to this Agreement, to be in the form of a Record (but excluding any Record      containing information Company must report to Wells Fargo under Section      5.1) may be delivered (i) in person, (ii) by first class U.S. mail,      (iii) by overnight courier of national reputation, or (iv) by fax, or      the Record may be sent      as an Electronic Record and delivered (v) by an encrypted e-mail, or (vi)      through Wells Fargo’s Commercial Electronic      Office® (“CEO®”) portal or other      secure electronic channel to which the parties have      agreed. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | Addresses for      Delivery.  Delivery of any Record under this Section 7.4      shall be made to the appropriate address set forth on the last page of      this Agreement (which either party may modify by a Record sent to the      other party), or through Wells Fargo’s CEO portal or other      secure electronic channel to which the parties have  agreed. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Date of      Receipt. Each Record sent      pursuant to the terms of this Section 7.4 will be deemed to have been      received on (i) the date of delivery if delivered in person,      (ii) the date deposited in the mail if sent by mail, (iii) the      date delivered to the courier if sent by overnight courier, (iv) the date      of transmission if sent by fax, or (v) the date of transmission, if      sent as an Electronic Record by electronic mail or through Wells Fargo’s      CEO portal or      similar secure electronic channel to which the parties have agreed; except that any      request for an Advance or any other notice, request, demand or other      communication from Company required under Section 1, and any request for      an accounting under Section 9-210 of the UCC, will not be deemed to have      been received until actual receipt by Wells Fargo on a Business Day by an      authorized employee of Wells Fargo. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Confidentiality of      Unencrypted E-mail.  Company acknowledges that if it      sends an Electronic Record to Wells Fargo without encryption by e-mail or      as an e-mail file attachment, there is a risk that the Electronic Record      may be received by unauthorized Persons, and that by so doing it will be      deemed to have accepted this risk and the consequences of any such      unauthorized disclosure. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | Company Information Reporting;      Confidentiality.  Except as otherwise expressly provided      in this Agreement: |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (a) | Delivery of Company      Information Records.  Any information that Company is      required to deliver under Section 5.1 in the form of a Record may be      delivered to Wells Fargo (i) in person, or by (ii) first class U.S.      mail, (iii) overnight courier of national reputation, or      (iv) fax, or the Record may be sent as an Electronic Record (v) by      encrypted e-mail, or (vi) through the file upload service of Wells Fargo’s      CEO portal or      other secure electronic channel to which the parties have      agreed. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Addresses for      Delivery.  Delivery of any Record to Wells Fargo under      this Section 7.5 shall be made to the appropriate address set forth on the      last page of this Agreement (which Wells Fargo may modify by a Record sent      to Company), or through Wells Fargo’s CEO portal or other      secure electronic channel to which the parties have  agreed. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Date of      Receipt. Each Record sent      pursuant to this Section will be deemed to have been received on (i) the      date of delivery to an authorized employee of Wells Fargo, if delivered in      person, or by U.S. mail, overnight courier, fax, or e-mail; or      (ii) the date of transmission, if sent as an Electronic Record      through Wells Fargo’s CEO portal or similar      secure electronic channel to which the parties have  agreed. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Authentication of      Company Information Records.  Company shall Authenticate      any Record delivered (i) in person, or by U.S. mail, overnight courier, or      fax, by the signature of the Officer or employee of Company who prepared      the Record; (ii) as an Electronic Record      sent via encrypted e-mail, by the signature of the Officer or employee of      Company who prepared the Record by any file format signature that is      acceptable to Wells Fargo, or by a separate certification signed and sent      by fax; or (iii) as an Electronic Record via the file upload service of      Wells Fargo’s CEO      portal or similar secure electronic channel to which the parties      have agreed, through such credentialing process as Wells Fargo and Company      may agree to under the CEO      agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (e) | Certification of      Company Information Records.  Any Record      (including any Electronic Record) Authenticated and delivered to Wells      Fargo under this Section 7.5 will be deemed to have been certified as      materially true, correct, and complete by Company and each Officer or      employee of Company who prepared and Authenticated the Record on behalf of      Company, and may be legally relied upon by Wells Fargo without regard to      method of delivery or transmission. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Confidentiality of      Company Information Records Sent by Unencrypted      E-mail.  Company acknowledges that if it sends an      Electronic Record to Wells Fargo without encryption by e-mail or as an      e-mail file attachment, there is a risk that the Electronic Record may be      received by unauthorized Persons, and that by so doing it will be deemed      to have accepted this risk and the consequences of any such unauthorized      disclosure.  Company acknowledges that it may deliver Electronic      Records containing Company information to Wells Fargo by e-mail pursuant      to any encryption tool acceptable to Wells Fargo and Company, or through      Wells Fargo’s CEO      portal file upload service without risk of unauthorized      disclosure. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6 | Further Documents.  Company      will from time to time execute, deliver, endorse and authorize the filing      of any instruments, documents, conveyances, assignments, security      agreements, financing statements, control agreements and other agreements      that Wells Fargo may reasonably request in order to secure, protect,      perfect or enforce the Security Interest or Wells Fargo’s rights under the      Loan Documents, or any other document or agreement described in or related      to this Agreement (but any failure to request or assure that Company      executes, delivers, endorses or authorizes the filing of any such item      shall not affect or impair the validity, sufficiency or enforceability of      the Loan Documents, or any other document or agreement described in or      related to this Agreement, and the Security Interest, regardless of      whether any such item was or was not executed, delivered or endorsed in a      similar context or on a prior occasion); provided that (i) Company shall      have 60 days to close its deposit accounts at Bridge Bank (the “Bridge      Bank Accounts”), and during such time Company shall not be required to      provide a control agreement to Wells Fargo with respect to the Bridge Bank      Accounts, and (ii) Company shall not be required to provide documentation      to Wells Fargo to perfect its security interest in Company’s account in      Germany maintained with Deutsche Bank Agent, Berlin (Branch #710), Account      No. 5390745 (the “German Account”).  Company represents and      covenants that (a) the Bridge Bank Accounts, until closed, shall only      contain sufficient funds to meet checks which are outstanding on the date      hereof and no further checks will be written on the Bridge Bank Accounts,      and (b) the German Account shall only contain funds reasonably necessary      to fund Company’s obligations to pay VATtaxes. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7 | Costs and Expenses.  Company      shall pay on demand all costs and expenses, including reasonable      attorneys’ fees, incurred by Wells Fargo in connection with the      Indebtedness, this Agreement, the Loan Documents, or any other document or      agreement described in or related to this Agreement, and the transactions      contemplated by      this Agreement, including all such costs, expenses and fees incurred in      connection with the negotiation, preparation, execution, amendment,      administration, performance, collection and enforcement of the      Indebtedness and all such documents and agreements and the creation,      perfection, protection, satisfaction, foreclosure or enforcement of the      Security Interest. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.8 | Indemnity.  In      addition to its obligation to pay Wells Fargo’s expenses under the terms      of this Agreement, Company shall indemnify, defend and hold harmless Wells      Fargo, its parent Wells Fargo & Company, and any of its affiliates and      successors, and all of their present and future Officers, Directors,      employees, attorneys and agents (the “Indemnitees”) from and against any      of the following (collectively, “Indemnified  Liabilities”): |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Any      and all transfer taxes, documentary taxes, assessments or charges made by      any governmental authority by reason of the execution and delivery of the      Loan Documents, or any other document or agreement described in or related      to this Agreement or the making of theAdvances; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Any      claims, loss or damage to which any Indemnitee may be subjected if any      representation or warranty contained in Exhibit D proves to be incorrect      in any respect or as a result of any violation of the covenants contained      in Section 5.12; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Any      and all other liabilities, losses, damages, penalties, judgments, suits,      claims, costs and expenses of any kind or nature whatsoever (including the      reasonable fees and disbursements of counsel) in connection with this      Agreement and any other investigative, administrative or judicial      proceedings, whether or not such Indemnitee shall be designated a party to      such proceedings, which may be imposed on, incurred by or asserted against      any such Indemnitee, in any manner related to or arising out of or in      connection with the making of the Advances and the Loan Documents, or any      other document or agreement described in or related to this Agreement, or      the use or intended use of the proceeds of the Advances, with the      exception of any Indemnified Liability caused by the gross negligence or      willful misconduct of anIndemnitee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If      any investigative, judicial or administrative proceeding described in this      Section is brought against any Indemnitee, upon the Indemnitee’s request,      Company, or counsel designated by Company and satisfactory to the      Indemnitee, will resist and defend the action, suit or proceeding to the      extent and in the manner directed by the Indemnitee, at Company’s sole      cost and expense.  Each Indemnitee will use its best efforts to      cooperate in the defense of any such action, suit or      proceeding.  If this agreement to indemnify is held to be      unenforceable because it violates any law or public policy, Company shall      nevertheless make the maximum contribution to the payment and satisfaction      of each of the Indemnified Liabilities to the extent permissible under      applicable law.  Company’s obligations under this Section shall      survive the termination of this Agreement and the discharge of Company’s      other obligations under thisAgreement. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.9 | Retention of Company’s      Records.  Wells      Fargo shall have no obligation to maintain Electronic Records or retain      any documents, schedules, invoices, agings, or other Records delivered to      Wells Fargo by Company in connection with the Loan Documents, or any other      document or agreement described in or related to this Agreement for more      than 30 days after receipt by Wells Fargo.  If there is a      special need to retain specific Records, Company must notify Wells Fargo      of its need to retain or return such Records with      particularity, which notice must be delivered to Wells Fargo in accordance      with the terms of this Agreement at the time of the initial delivery of      the Record to Wells Fargo. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.10 | Binding Effect; Assignment;      Complete Agreement.  The Loan      Documents, or any other document or agreement described in or related to      this Agreement, shall be binding upon and inure to the benefit of Company      and Wells Fargo and their respective successors and assigns, except that      Company shall not have the right to assign its rights under this Agreement      or any interest in this Agreement without Wells Fargo’s prior consent,      which must be confirmed in a Record Authenticated by Wells Fargo. To the      extent permitted by law, Company waives and will not assert against any      assignee any claims, defenses or set-offs which Company could assert      against Wells Fargo. This Agreement shall also bind all Persons who become      a party to this Agreement as a borrower.  This Agreement,      together with the Loan Documents, or any other document or agreement      described in or related to this Agreement, comprises the complete and      integrated agreement of the parties on the subject matter of this      Agreement and supersedes all prior agreements, whether oral or evidenced      in a Record.  To the extent that any provision of this Agreement      contradicts other provisions of the Loan Documents other than this      Agreement, or any other document or agreement described in or related to      this Agreement, this Agreement shallcontrol. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.11 | Sharing of      Information.  Wells Fargo may share any information that      it may have regarding Company and its Affiliates with its accountants,      lawyers, and other advisors, and Wells Fargo and each direct and indirect      subsidiary of Wells Fargo & Company may also share any information      that they have with each other, and Company waives any right of      confidentiality it may have with respect to the sharing of all such      information. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.12 | Severability of      Provisions.  Any      provision of this Agreement which is prohibited or unenforceable shall be      ineffective to the extent of such prohibition or unenforceability without      invalidating the remaining terms of this  Agreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.13 | Headings.  Section      and subsection headings in this Agreement are included for convenience of      reference only and shall not constitute a part of this Agreement for any      other purpose. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.14 | Governing Law; Jurisdiction,      Venue; Waiver of Jury Trial.  The Loan      Documents (other than real estate related documents, if any) shall be      governed by and construed in accordance with the substantive laws (other      than conflict laws) of the State of California. The parties to this      Agreement (a) consent to the personal jurisdiction of the state and      federal courts located in the State of California in connection with any      controversy related to this Agreement; (b) waive any argument that      venue in any such forum is not convenient; (c) agree that any      litigation initiated by Wells Fargo or Company in connection with this      Agreement or the other Loan Documents may be venued in either the state or      federal courts located in the City and County  of Los Angeles,      State of California; and (d) agree that a final judgment in any such      suit, action or proceeding shall be conclusive and may be enforced in      other jurisdictions by suit on the judgment or in any other manner      provided by law. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.15 | Arbitration. |
|------|--------------|

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----

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| WELLS      FARGO BANK,    |                                | SOUTHWALL      TECHNOLOGIES INC. |            |
|---------------------------|-------------------------------------|----------------------------------|-----------------|
| NATIONAL      ASSOCIATION |                                |                             |            |   |
|                      |                                |                             |            |   |   |
|  By:                 |                                |                             |            |   |   |
|                      |                                |                             | By:             |   |   |
|                      |                                |                             |            |   |   |
|                      |  Its Vice      President  |                             |            |   |
|                      |                                |                             | Its   |   |   |
|                      |                                |                             |            |   |   |
|                      |                                |                             |            |   |   |
|                      |                                |                             | By:             |   |   |
|                      |                                |                             |            |   |   |
|                      |                                |                             |            |   |
|                      |                                |                             | Its             |   |   |
|                      |                                |                             |            |   |   |

| Wells      Fargo Bank, National Association245      S. Los Robles AvenueSuite      700Pasadena,      CA  91101Fax:      (626) 844-9063Attention:      Mr. Robert Mosterte-mail:      robert.n.mostert @wellsfargo.com  | Southwall      Technologies Inc.3788      Fabian WayPalo      Alto, CAFax:  _______________________Attention:  Chief      Accounting Officere-mail:      mburak@southwall.comFederal      Employer Identification No.95-2551470Organizational      Identification No.0865245 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | SOUTHWALL      TECHNOLOGIES INC.                                            |
|--------|--------|-----------------------------------------------------------------------------|
|   |   |                                                                        |   |
|   |   |                                                                        |   |
|   |   | By:             |   |
|   |   | Name:                                                                       |   |
|   |   | Its:                                                                        |   |
|   |   |                                                                        |   |
|   |   | By:                                                               |   |
|   |   | Name:                                                             |   |
|   |   | Its:                                                                        |   |
|   |   |                                                                        |   |

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| (a) | Any      Person or “group” (as such term is used in Sections 13(d) and 14(d) of the      Securities Exchange Act of 1934),who does not have an ownership interest      in Company on the date of the initial Advance, is or becomes the      “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the      Securities Exchange Act of 1934, except that any such Person, entity or      group will be deemed to have “beneficial ownership” of all securities that      such Person, entity or group has the right to acquire, whether such right      is exercisable immediately or only after the passage of time), directly or      indirectly, of more than fifteen (15%) of the voting power of all classes      of ownership of Company; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | During      any consecutive two-year period, individuals who at the beginning of such      period constituted the board of Directors of Company (together with any      new Directors whose election to such board of Directors, or whose      nomination for election by the Owners of Company, was approved by a vote      of two thirds of the Directors then still in office who were either      Directors at the beginning of such period or whose election or nomination      for election was previously so approved) cease for any reason to      constitute a majority of the board of Directors of Company then in      office. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a) | That      portion of Accounts unpaid 90 days or more after the invoice      date; |
|-----|----------------------------------------------------------------------------------------|

| (b) | That      portion of Accounts related to goods or services with respect to which      Company has received notice of a claim or dispute, which are subject to a      claim of offset or a contra account, or which reflect a reasonable reserve      for warranty claims or returns; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | That      portion of Accounts not yet earned by the final delivery of goods or that      portion of Accounts not yet earned by the final rendition of services by      Company to the account debtor, including with respect to both goods and      services, progress billings, bill and hold sales, sales constituting      deferred revenue, and that portion of Accounts for which an invoice has      not been sent to the applicable accountdebtor; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Accounts      constituting (i) Proceeds of copyrightable material unless such      copyrightable material shall have been registered with the United States      Copyright Office, or (ii) Proceeds of patentable inventions unless such      patentable inventions have been registered with the United States Patent      and Trademark Office; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Accounts      owed by any unit of government, whether foreign or domestic (except that      there shall be included in Eligible Accounts that portion of Accounts owed      by such units of government for which Company has provided evidence      satisfactory to Wells Fargo that (i) Wells Fargo’s Security Interest      constitutes a perfected first priority Lien in such Accounts, and      (ii) such Accounts may be enforced by Wells Fargo directly against      such unit of government under all applicable  laws); |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Accounts      denominated in any currency other than United States    Dollars; |
|-----|--------------------------------------------------------------------------------|

| (g) | Accounts      owed by an account debtor located outside the United States or Canada      which are not (i) backed by a bank letter of credit naming Wells      Fargo as beneficiary or assigned to Wells Fargo, in Wells Fargo’s      possession or control, and with respect to which a control agreement      concerning the letter-of-credit rights is in effect, and acceptable to      Wells Fargo in all respects, in its sole discretion, or (ii) covered      by a foreign receivables insurance policy acceptable to Wells Fargo in its      sole discretion; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | Accounts      owed by an account debtor who is insolvent or is the subject of bankruptcy      proceedings or who has gone out ofbusiness; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | Accounts      owed by an Owner, Subsidiary, Affiliate, Officer or employee of      Company; |
|-----|---------------------------------------------------------------------------------------------|

| (j) | Accounts      not subject to the Security Interest or which are subject to any Lien in      favor of any Person other than WellsFargo; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (k) | That      portion of Accounts that has been restructured, extended, amended or      modified; |
|-----|-----------------------------------------------------------------------------------------------|

| (l) | That      portion of Accounts that constitutes advertising, finance charges, service      charges or sales or excise taxes, or that arises from the sales of      warranties, or which represent COD sales or credit card    sales; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | Accounts      owed by an account debtor, regardless of whether otherwise eligible, to      the extent that the aggregate balance of such Accounts exceeds 15% of the      aggregate amount of all Accounts; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n) | Accounts      owed by an account debtor, regardless of whether otherwise eligible, if      25% or more of the total amount of Accounts due from such debtor is      ineligible under clauses (a), (b), or (k) above;  and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o) | Accounts,      or portions of Accounts, otherwise deemed ineligible by Wells Fargo in its      sole discretion. |
|-----|-----------------------------------------------------------------------------------------------------------------|

----

----

----

| (a) | A      material adverse effect on the business, operations, results of      operations, prospects, assets, liabilities or financial condition of      Company; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | A      material adverse effect on the ability of Company to perform its      obligations under the Loan Documents, or any other document or agreement      related to this Agreement; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | A      material adverse effect on the ability of Wells Fargo to enforce the      Indebtedness or to realize the intended benefits of the Security      Documents, including a material adverse effect on the validity or      enforceability of any Loan Document or of any rights against any      Guarantor, or on the status, existence, perfection, priority (subject to      Permitted Liens) or enforceability of any Lien securing payment or      performance of the Indebtedness; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Any      claim against Company or threat of litigation which if determined      adversely to Company would cause Company to be liable to pay an amount      exceeding $1,000,000. or would result in the occurrence of an event      described in clauses (a), (b) and (c)  above. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| (2) | The      Credit and Security Agreement. |
|-----|-----------------------------------------|

| (3) | The      Master Agreement for Treasury Management Services, the Acceptance of      Services, and the related Service Description for each deposit or treasury      management related product or service that Company will subscribe to,      including without limitation the Loan Manager Service Description and the      Lockbox and Collection Account Service  Description. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | A      Standby Letter of Credit Agreement and the Commercial Letter of Credit      Agreement, and a separate L/C Application for each Letter of Credit that      Company has requested that Wells Fargoissue. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Loan      Documents to be Executed by ThirdParties: |
|----|-----------------------------------------------------|

| (1) | A      Landlord’s Disclaimer and      Consent to each lease entered into by Company and that Landlord      with respect to the Premises, pursuant to which the Landlord waives its      Lien in any goods or other Inventory of Company located on the Premises,      provided that the Company shall have up to 45 days after the date hereof      to provide the same to Wells Fargo. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Certificates      of Insurance required under this Agreement, with all hazard insurance      containing a lender’s loss payable endorsement in Wells Fargo’s favor and      with all liability insurance naming Wells Fargo as additional      insured. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | An      Acknowledgement and Waiver of Liens executed by Bekaert Specialty Film in      form acceptable to Wells Fargo, provided that the Company shall have up to      45 days after the date hereof to provide the same to Wells      Fargo. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| C. | Documents      Related to the Premises |
|----|----------------------------------------|

| (1) | Any      leases pursuant to which Company is leasing the Premises from a      lessor. |
|-----|---------------------------------------------------------------------------------------|

----

| (2) | Every      bailment or consignment pursuant to which any property of Company is in      the possession of a third Person such as a consignee or subcontractor,      together with, in the case of any goods held by such Person for resale,      UCC financing statements sufficient to protect Company’s and Wells Fargo’s      interests in such goods. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Federal      Tax, State Tax, Judgment, UCC and Intellectual Property Lien      Searches |
|----|-----------------------------------------------------------------------------------------|

| (1) | Current      searches of Company in appropriate filing offices showing that (i) no      Liens have been filed and remain in effect against Company and Collateral      except Permitted Liens or Liens held by Persons who have agreed in an      Authenticated Record that upon receipt of proceeds of the initial      Advances, they will satisfy, release or terminate such Liens in a manner      satisfactory to Wells Fargo, and (ii) Wells Fargo has filed all UCC      financing statements necessary to perfect the Security Interest, to the      extent the Security Interest is capable of being perfected by      filing. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Current      searches of Third Persons in appropriate filing offices with respect to      any of the Collateral that is in the possession of a Person other than      Company that is held for resale, showing that (i) UCC financing      statements sufficient to protect Company’s and Wells Fargo’s interests in      such Collateral have been filed, and (ii) no other secured party has      filed a financing statement against such Person and covering property      similar to Company’s, other than Company, or if there exists any such      secured party, evidence that each such party has received notice from      Company and Wells Fargo sufficient to protect Company’s and Wells Fargo’s      interests in Company’s goods from any claim by such secured party. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Constituent      Documents: |
|----|-----------------------------|

| (1) | The      Certificate of Authority of Company, which shall include as part of the      Certificate or as exhibits to the Certificate, (i) the Resolution of      Company’s Directors and, if required, Owners, authorizing the execution,      delivery and performance of those Loan Documents and other documents or      agreements described in or related to this Agreement to which Company is a      party, (ii) an Incumbency Certificate containing the signatures of      Company’s Officers or agents authorized to execute and deliver those      instruments, agreements and certificates referenced in (i) above, as well      as Advance requests, on Company’s behalf, (iii) Company’s Constituent      Documents, (iv) a current Certificate of Good Standing or Certificate of      Status issued by the secretary of state or other appropriate authority for      Company’s state of organization, certifying that Company is in good      standing and in compliance with all applicable organizational requirements      of the state of organization, and (v) a Secretary’s Certificate of      Company’s secretary or assistant secretary certifying that the Certificate      of Authority of Company is true, correct and  complete. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Evidence      that Company is licensed or qualified to transact business in all      jurisdictions where the character of the property owned or leased or the      nature of the business transacted by it makes such licensing or      qualification necessary. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | An      Officer’s Certificate of an appropriate Officer of Company confirming, in      his or her personal capacity, the representations and warranties set forth      in this Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | A      Customer Identification Information Form and such other forms and      verification as Wells Fargo may need to comply with the U.S.A. Patriot      Act. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| F. | [intentionally      omitted] |
|----|------------------------------|

| G.  | Miscellaneous      Matters or Documents: |
|----------|------------------------------------------|

| (1) | Payment      of fees and reimbursable costs and expenses due under this Agreement      through the date of initial Advance or issuance of a Letter of Credit,      including all legal expenses incurred through the date of the closing of      this Agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Evidence      that after making the initial Advance and satisfying all obligations owed      to Company’s prior lender and all trade payables older than 60 days from      invoice date, book overdrafts and closing costs, the availability under      the Line of Credit is not less than$1,500,000. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Any      documents or other agreements entered into by Company and Wells Fargo that      relate to any swap, derivative, foreign exchange, hedge, deposit, treasury      management or similar product or transaction extended to Company by Wells      Fargo not already provided pursuant to the requirements of (A)-(F)      above. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Receipt      by Wells Fargo of Company’s monthly financial projections for its 2008      fiscal year, in form and substance satisfactory to Wells Fargo, and no      material deviation in Company’s actual performance compared to said      projections. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Company’s      customer contracts, purchase orders and supply contracts shall be      satisfactory to Wells Fargo. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (6) | Such      other documents as Wells Fargo in its sole discretion may      require. |
|-----|-----------------------------------------------------------------------------------|

----

| (a) | Existence and Power;      Name; Chief Executive Office; Inventory and Equipment Locations; Federal      Employer Identification Number and Organizational Identification      Number.  Company      is a corporation, organized, validly existing and in good standing under      the laws of the State of Delaware and is licensed or qualified to transact      business in all jurisdictions where the character of the property owned or      leased or the nature of the business transacted by it makes such licensing      or qualification necessary.  Company has all requisite power and      authority to conduct its business, to own its properties and to execute      and deliver, and to perform all of its obligations under, those Loan      Documents and any other documents or agreements that it has entered into      with Wells Fargo related to this Agreement.  During its      existence, Company has done business solely under the names set forth      below in addition to its correct legal name.  Company’s chief      executive office and principal place of business is located at the address      set forth below, and all of Company’s records relating to its business or      the Collateral are kept at that location.  All Inventory and      Equipment is located at that location or at one of the other locations set      forth below.  Company’s name, Federal Employer Identification      Number and Organization Identification Number are correctly set forth at      the end of the Agreement next to Company’s  signature. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Trade      Names                                                                                                        |
|-------------------------------------------------------------------------------------------------------------------------|
|  XIR, XUV, Triangle Design,      Superglass, Heat Mirror, California Series, Solis, ETCH-A-FLEX and      Southwall |

| Chief      Executive Office / Principal Place of Business |
|-----------------------------------------------------------|
|  3788      Fabian Way, Palo Alto, CA 94303           |

| Other      Inventory and Equipment Locations                                                                                                                                                                                                                                                              |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3961      East Bayshore Rd, Palo Alto, CA (Southwall Technologies) 1D-10900      Southwallstrasse, Großroshrsdorf, Germany (Southwall Europe) 4540      Viewridge Ave, San Diego, CA (Bekaert Specialty Film) 347      Business Park Drive, Sun Prairie, WI (Crown  Operations) |

----

| (b) | Capitalization.  The      Capitalization Chart below constitutes a correct and complete list of all      ownership interests equal to or greater than 5% of Company and all rights      to acquire ownership interests, including the record holder, number of      interests and percentage interests on a fully diluted basis, and the      Organizational Chart below shows the ownership structure of all      Subsidiaries of Company. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Capitalization      Chart |   |   |   |   |
|--------|---------------------------|--------|--------|--------|--------|
|   |                      |   |   |   |   |

|   | Holder             | Type      of Rights/Stock   | No. of Shares         | %      Interest (on a |   |
|--------|--------------------|-----------------------------|-----------------------|-----------------------|--------|
|   |               |                        | (after exercise    of | fully diluted         |   |
|   |               |                        |  all rights to   | basis)                |   |
|   |               |                        | acquireshares)        |                  |   |
|   |               |                        |                  |                  |   |
|   | Needham      & | Common    stock             | 14,582,112            | 48.3%                 |   |
|   | Affiliates         | beneficially      owned*    |                  |                  |   |
|   |               |                        |                  |                  |   |
|   | Dolphin    Direct  | Common    stock             | 6,258,062             | 21.38%                |   |
|   | Equity             | beneficially      owned     |                  |                  |   |
|   | Partners           |                        |                  |                  |   |
|   |               |                        |                  |                  |   |
|   |               | *Per proxy dated      April |                  |                  |   |
|   |               | 2008                        |                  |                  |   |
|   |               |                        |                  |                  |   |

| Organizational      Chart                     |
|-----------------------------------------------|
|  Attached      hereto as Exhibit 1  |

| (c) | Authorization of      Borrowing; No Conflict as to Law or Agreements.  The      execution, delivery and performance by Company of the Loan Documents and      any other documents or agreements described in or related to this      Agreement, and all borrowing under the Line of Credit have been authorized      and do not (i) require the consent or approval of Company’s Owners;      (ii) require the authorization, consent or approval by, or      registration, declaration or filing with, or notice to, any governmental      agency or instrumentality, whether domestic or foreign, or any other      Person, except to the extent obtained, accomplished or given prior to the      date of this Agreement; (iii) violate any provision of any law, rule      or regulation (including Regulation X of the Board of Governors of      the Federal Reserve System) or of any order, writ, injunction or decree      presently in effect having applicability to Company or of Company’s      Constituent Documents; (iv) result in a breach of or constitute a      default or event of default under any indenture or loan or credit      agreement or any other material agreement, lease or instrument to which      Company is a party or by which it or its properties may be bound or      affected; or (v) result in, or require, the creation or imposition of      any Lien (other than the Security Interest) upon or with respect to any of      the properties now owned or subsequently acquired by    Company. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d) | Legal      Agreements.  This      Agreement, the other Loan Documents, and any other document or agreement      described in or related to this Agreement, will constitute the legal,      valid and binding obligations of Company, enforceable against Company in      accordance with their respectiveterms. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Subsidiaries.  Except      as disclosed below, Company has noSubsidiaries. |
|-----|--------------------------------------------------------------------------------------|

| Subsidiaries                                                                                                                                                                                                                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Southwall      Europe GmbH, Southwall      IG Holdings, Inc.  Company represents and warrants that the      assets of Southwall IG Holdings, Inc. consist solely of its interest in      Southwall Insulating Glass, LLC and certain fixed assets leased to      Southwall Insulating Glass, LLC. Southwall      Insulating Glass, LLC |

| (f) | Financial Condition;      No Adverse Change.  Company      has furnished to Wells Fargo its audited financial statements for its      fiscal year ended      December 31, 2007 and unaudited financial statements for the      fiscal-year-to-date period ended March 31, 2008 and      those statements fairly present Company’s financial condition as of those      dates and the results of Company’s operations and cash flows for the      periods then ended and were prepared in accordance with      GAAP.  Since the date of the most recent financial statements,      there has been no Material Adverse Effect on in Company’s business,      properties or condition (financial or  otherwise). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Litigation.  There      are no actions, suits or proceedings pending or, to Company’s knowledge,      threatened against or affecting Company or any of its Affiliates or the      properties of Company or any of its Affiliates before any court or      governmental department, commission, board, bureau, agency or      instrumentality, domestic or foreign, which, if determined adversely to      Company or any of its Affiliates, would result in a final judgment or      judgments against Company or any of its Affiliates in an amount in excess      of $100,000, apart from those matters specifically disclosed      below. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Litigation      Matters in Excess of $100,000 |
|-----------------------------------------------|
|  None                               |

| (h) | Intellectual Property      Rights. |
|-----|------------------------------------|

----

----

| Intellectual Property      Disclosures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  On      March 3, 2005, the European Patent Office allowed a European patent owned      by Pilkington Automotive GmBH entitled "Method for producing a laminated      glass pane free of optical obstruction caused by warping, use of a      particular carrier film for the production of the laminated glass pane and      carrier films particularly suitable for the method of use." This European      patent covers certain laminated films and methods of using them, which may      prevent Company from producing certain films designed for the automotive      markets.   Company has appealed the European Patent Office      decision, and anticipates a decision in June 2008.  Company      represents and warrants that a decision in such appeal adverse to the      Company will not have a material adverse effect on the      Company.   |

| (i) | Taxes.  Company      and its Affiliates have paid or caused to be paid to the proper      authorities when due all federal, state and local taxes required to be      withheld by each of them.  Company and its Affiliates have filed      all federal, state and local tax returns which to the knowledge of the      Officers of Company or any Affiliate, as the case may be, are required to      be filed, and Company and its Affiliates have paid or caused to be paid to      the respective taxing authorities all taxes as shown on these returns or      on any assessment received by any of them to the extent such taxes have      become due. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | Titles and      Liens.  Company      has good and absolute title to all Collateral free and clear of all Liens      other than Permitted Liens.  No financing statement naming      Company as debtor is on file in any office except to perfect only      Permitted Liens. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | No Defaults.  Company      is in compliance with all provisions of all agreements, instruments,      decrees and orders to which it is a party or by which it or its property      is bound or affected, the breach or default of which could have a Material      Adverse Effect on Company’s financial condition, properties or operations      . |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l) | Submissions to      Wells      Fargo.  All financial and other information provided to      Wells Fargo by or on behalf of Company in connection with Company’s      request for the credit facilities contemplated hereby is (i) true and      correct in all material respects, (ii) does not omit any material      fact that would cause such information to be misleading, and (iii) as      to projections, valuations or proforma financial statements, present a      good faith opinion as to such projections, valuations and proforma      condition and results. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | Financing      Statements.  Company      has previously authorized the filing of financing statements sufficient      when filed to perfect the Security Interest and other Liens created by the      Security Documents.  When such financing statements are filed,      Wells Fargo will have a valid and perfected security interest in all      Collateral capable of being perfected by the filing of financing      statements.  None of the Collateral is or will become a fixture      on real estate, unless a sufficient fixture filing has been filed with      respect to such Collateral. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n) | Rights to      Payment.  Each      right to payment and each instrument, document, chattel paper and other      agreement constituting or evidencing Collateral is (or, in the case of all      future Collateral, will be when arising or issued) the valid, genuine and      legally enforceable      obligation, subject to no defense, setoff or counterclaim of the account      debtor or other obligor named in that  instrument. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Employee      Benefit Plans                                                                  |
|---------------------------------------------------------------------------------------------------|
|  Southwall      Technoliges Inc. 401k Plan The      2007 Long Term Incentive Plan  |

----

| Environmental      Matters  |
|----------------------------------|
|  None                  |

----

| To:  | Wells      Fargo Bank, National Association |
|-----------|---------------------------------------------|

| Date:  | [___________________,      200__] |
|-------------|-----------------------------------|

| Subject:  | Financial      Statements |
|----------------|---------------------------|

|  | o  | Company      has not, since the date of the Credit Agreement, changed its name or      jurisdiction of organization, nor has it consolidated or merged with      another Person. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | o | Company      has, since the date of the Credit Agreement, either changed its name or      jurisdiction of organization, or both, or has consolidated or merged with      another Person, which change, consolidation or merger:  was consented      to in advance by Wells Fargo in an Authenticated Record, and/or  is      more fully described in the statement of facts attached to this      Certificate. |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | o | I      have no knowledge of the occurrence of an Event of Default under the      Credit Agreement, except as previously reported to Wells Fargo in a      Record. |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | o | I      have knowledge of an Event of Default under the Credit Agreement not      previously reported to Wells Fargo in a Record, as more fully described in      the statement of facts attached to this Certificate, and further, I      acknowledge that Wells Fargo may under the terms of the Credit Agreement      impose the Default Rate at any time during the resulting Default      Period. |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | o | I      have no knowledge of any material adverse change to the litigation      exposure of Company or any of its Affiliates or of any      Guarantor. |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | o | I      have knowledge of material adverse changes to the litigation exposure of      Company or any of its Affiliates or of any Guarantor not previously      disclosed in Exhibit D, as more fully described in the statement of facts      attached to this Certificate. |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| End of      Month                             | Minimum Book Net      Worth |
|-----------------------------------------------|-----------------------------|
| April,      2008                              | $18,500,000                 |
| May,      2008                                | $19,250,000                 |
| June,      2008                               | $20,000,000                 |
| July,      2008                               | $20,400,000                 |
| August,      2008                             | $20,800,000                 |
| September,      2008                          | $21,000,000                 |
| October,      2008                            | $21,500,000                 |
| November,      2008                           | $22,000,000                 |
| December,      2008 and each month thereafter | $21,500,000                 |

| Period                                          | Minimum Net      Income |
|-------------------------------------------------|-------------------------|
| January      1, 2008 Through June 30, 2008      | $2,500,000              |
| January      1, 2008 Through September 30, 2008 | $3,300,000              |
| January      1, 2008 Through December 31, 2008  | $4,000,000              |

----

|   |   |  Southwall Technologies      Inc. |                              |
|--------|--------|----------------------------------------|-----------------------------------|
|   |   |                                   |                              |   |
|   |   |                                   |                              |   |
|   |   | By:                                    |                              |   |
|   |   |                                   | Its Chief Accounting      Officer |   |

----

| Filing      Date | File      No. | Creditor                                 | Collateral           |
|------------------|---------------|------------------------------------------|----------------------|
| 10/25/99         | 9930661180    | Matrix      Funding Corporation          | Specific      Equip. |
| 10/25/99         | 9930661182    | Matrix      Funding Corporation          | Leased      Equip.   |
| 03/13/00         | 0007560767    | Matrix      Funding Corporation          | Leased      Equip.   |
| 10/08/02         | 0228360154    | US      Bancorp                          | Specific      Equip. |
| 10/05/05         | 057043961590  | Wells      Fargo Financial Leasing, Inc. | Specific      Equip  |

| Filing      Date | File      No. | Creditor                         | Collateral                      |
|------------------|---------------|----------------------------------|---------------------------------|
| 04/25/02         | 21202799      | IBM      Credit Corporation      | Leased      Equip.              |
| 05/08/02         | 21338718      | IBM      Credit Corporation      | Leased      Equip.              |
| 07/26/02         | 21997927      | IBM      Credit Corporation      | Leased      Equip.              |
| 08/28/02         | 22225310      | IBM      Credit Corporation      | Leased      Equip.              |
| 05/02/05         | 51338780      | Crown      Credit Company        | Specific      Equip.            |
| 06/07/05         | 51740209      | Matrix      Funding Corporation  | Leased      Equip.              |
| 06/07/05         | 51740373      | Matrix      Funding Corporation  | Leased      Equip.              |
| 01/20/06         | 60244236      | Dell      Financial Services, LP | Equipment      financed by Dell |

| Creditor | Current Principal      Amt. | Maturity      Date | Monthly      Payment  | Collateral |
|----------|-----------------------------|--------------------|----------------------------|------------|
|     |                        |               |                       |       |
|     |                        |               |                       |       |
|     |                        |               |                       |       |
|     |                        |               |                       |       |

----

----