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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|**10.1
        AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (the "Agreement")
      is made as of April 11, 2003, by and among TRANSAMERICA COMMERCIAL FINANCE
      CORPORATION (the "Lender"), ZONES, INC. ("Borrower 1") and Corporate
      PC Source, Inc. (Borrower 2) (Borrower 1 and Borrower 2
      shall hereinafter be individually referred to as a Borrower
      and collectively, as the Borrowers).                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|PREAMBLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Pursuant to that certain Loan and Security Agreement dated as of November
      26, 2002, by and between Lender and Borrower 1 (the Original Agreement),
      Lender provided certain financing (the Original Financing) to
      Borrower 1.  On March 31, 2003 Borrower 1 acquired all classes of stock
      in and to Borrower 2.  Borrowers have requested Lender to modify the
      Original Financing to provide for financing of Borrower 1 and Borrower 2. 
      Lender has agreed to do so, so long as, among other things, the Original
      Agreement and the Original Financing are amended and restated by this Agreement.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Now, therefore, in consideration of the premises that are incorporated herein
      by this reference as an integral part of this Agreement and the mutual covenants
      and agreements set forth in this Agreement, the parties hereto agree as
      follows:                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|ARTICLE ONE.  DEFINITIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|SECTION 1.1.        DEFINED TERMS. 
      In addition to terms defined elsewhere in this Agreement or any Supplement
      or Exhibit hereto, when used herein, the following terms shall have the
      following meanings:                                                                                                                                                                                                                                                                                                                                                                                                                    

| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Account Debtor" shall mean individually, and Account
      Debtors shall mean collectively, each Person who is or who may
      become obligated to any Borrower under, with respect to, or on account of
      an Account Receivable or other Collateral.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Accounts Receivable" shall mean any and all accounts
      (as such term is defined in the UCC) of Borrower and each and every right
      of any Borrower to (A) the payment of money or (B) the receipt or disbursement
      of products, goods, services or other valuable consideration, whether such
      right now exists or hereafter arises, whether such right arises out of a
      sale, lease or other disposition of Inventory, or out of a rendering of
      services, or out of a policy of insurance issued or to be issued, or from
      a secondary obligation or arising out of the use of a credit or charge card
      or information contained on or for use with such card, incurred or to be
      incurred, or any other transaction or event, whether such right is created,
      generated or earned by any Borrower or by some other Person who subse­quently
      transfers its interest to any Borrower, whether such right is or is not
      already earned by performance, and howsoever such right may be evidenced,
      together with all other rights and interests (including all liens and security
      interests) which any Borrower may at any time have by law or agreement against
      any Account Debtor or other Person obligated to make any such payment or
      against any property of such Account Debtor or other Person.

|- 1 - 
        ***(REDACTED) - Confidential Treatment Requested
|---------------------------------------------------------------

|
|



| | "ACH Debit" shall mean an Automated
      Clearing House debit by a Collecting Bank.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Affiliate" shall mean individually, and Affiliates
      shall mean collectively, each Person which, directly or indirectly, owns
      or controls, on an aggregate basis, at least a five percent (5%) interest
      in any other Person, or which is controlled by or is under common control
      with any other Person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Approval" and Approvals shall
      have the meanings set forth in Section 2.3(A) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 1 Approval shall mean individually
      and Borrower 1 Approvals shall mean collectively, each Approval
      outstanding from time to time relating to Inventory being shipped to Borrower
      1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 1 Collection Accounts shall have
      the meaning set forth in Section 3.3(A) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 1 IBMCC Credit Agreement shall
      mean that certain Inventory and Working Capital Agreement by and between
      IBMCC and Borrower 1 dated July 21, 2000, as amended and as may be further
      amended and/or restated from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 1 IBMCC Credit Financing" shall mean that
      certain financing from IBMCC to Borrower 1 more fully described on Exhibit
      1.1-3 attached hereto, as may be amended, extended, renewed, supplemented,
      replaced and /or restated from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 1 IBMCC Intercreditor Agreement" shall
      mean that certain intercreditor agreement by and between Lender and IBMCC
      in form and manner satisfactory to Lender dated November 26, 2002 relating
      to the Borrower 1 Liabilities, the Borrower 1 IBMCC Liabilities, and the
      Borrower 1 IBMCC Credit Financing, as may be amended and/or restated from
      time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | Borrower 1 IBMCC Liabilities shall
      mean all liabilities, indebtedness and obligations of Borrower 1 to IBMCC,
      howsoever created, arising or evidenced, whether now existing or hereafter
      arising, whether direct or indirect (including those acquired by assignment),
      absolute or contingent, due or to become due, primary or secondary, joint
      or several, whether existing or arising through discount, overdraft, purchase,
      direct loan, par­ticipation, operation of law, written or oral agreement
      or agreement created by electronic data interchange including facsimile
      transmission or otherwise, including, but not limited to, all liabilities,
      indebtedness and obligations of Borrower 1 to IBMCC, whether now existing
      or hereafter arising, pursuant to any letter of credit, any standby letter
      of credit, any floor plan agreement or any agreement, document or instrument
      and reasonable outside attorneys' and para­legals' fees or charges
      relating to the preparation of all agreements, documents and instruments
      and the enforcement of IBMCCs rights, remedies, powers and security
      interests under any such agreements, documents or instruments.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 1 Liabilities" shall mean all liabilities,
      indebtedness and obligations of Borrower 1 to the Lender, howsoever created,
      arising or evidenced, whether now existing or hereafter arising, whether
      direct or indirect (including those acquired by assignment), absolute or
      contingent, due or to become due, primary or secondary, joint or several,
      whether existing or arising through discount, overdraft, purchase, direct
      loan, par­ticipation, operation of law, written or oral agreement,
      including, but not limited to, all liabilities, indebtedness and obligations
      of Borrower 1 to the Lender, whether now existing or hereafter arising,
      pursuant to any letter of credit, any standby letter of credit, any floor
      plan agreement, indirect financing agreement or any of the Documents and
      reasonable outside attorneys' and para­legals' fees or charges relating
      to the enforcement of Lender's rights, remedies, powers and security interests
      under this Agreement, including, but not limited to, the enforcement of
      the Loans.                                                                                                                         

|- 2 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

|
|



| | "Borrower 1 Lock Box Accounts
      shall have the meaning set forth in Section 3.3(A) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 1 Lock Box Agreement and Borrower
      1 Lock Box Agreements shall have the meanings set forth in
      Section 3.3(A) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 2 Approval shall mean individually
      and Borrower 2 Approvals shall mean collectively, each Approval
      outstanding from time to time relating to Inventory being shipped to Borrower
      2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 2 Collection Accounts shall have
      the meaning set forth in Section 3.3(B) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 2 IBMCC Credit Agreement shall
      mean that certain Inventory and Working Capital Agreement by and between
      IBMCC and Borrower 2 dated April 19, 2000, as amended and as may be further
      amended from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 2 IBMCC Credit Financing" shall mean that
      certain financing from IBMCC to Borrower 2 more fully described on Exhibit
      1.1-3 attached hereto, as may be amended, extended, renewed, supplemented,
      replaced and /or restated from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 2 IBMCC Intercreditor Agreement" shall
      mean that certain intercreditor agreement to be entered into by and between
      Lender and IBMCC in form and manner satisfactory to Lender dated in accordance
      with the terms of this Agreement relating to the Borrower 2 Liabilities,
      the Borrower 2 IBMCC Liabilities, and the Borrower 2 IBMCC Credit Financing,
      as may be amended and/or restated from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | Borrower 2 IBMCC Liabilities shall
      mean all liabilities, indebtedness and obligations of Borrower 2 to IBMCC,
      howsoever created, arising or evidenced, whether now existing or hereafter
      arising, whether direct or indirect (including those acquired by assignment),
      absolute or contingent, due or to become due, primary or secondary, joint
      or several, whether existing or arising through discount, overdraft, purchase,
      direct loan, par­ticipation, operation of law, written or oral agreement
      or agreement created by electronic data interchange including facsimile
      transmission or otherwise, including, but not limited to, all liabilities,
      indebtedness and obligations of Borrower 2 to IBMCC, whether now existing
      or hereafter arising, pursuant to any letter of credit, any standby letter
      of credit, any floor plan agreement or any agreement, document or instrument
      and reasonable outside attorneys' and para­legals' fees or charges
      relating to the preparation of all agreements, documents and instruments
      and the enforcement of IBMCCs rights, remedies, powers and security
      interests under any such agreements, documents or instruments.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | "Borrower 2 Liabilities" shall mean all liabilities,
      indebtedness and obligations of Borrower 2 to the Lender, howsoever created,
      arising or evidenced, whether now existing or hereafter arising, whether
      direct or indirect (including those acquired by assignment), absolute or
      contingent, due or to become due, primary or secondary, joint or several,
      whether existing or arising through discount, overdraft, purchase, direct
      loan, par­ticipation, operation of law, written or oral agreement,
      including, but not limited to, all liabilities, indebtedness and obligations
      of Borrower 2 to the Lender, whether now existing or hereafter arising,
      pursuant to any letter of credit, any standby letter of credit, any floor
      plan agreement, indirect financing agreement or any of the Documents and
      reasonable outside attorneys' and para­legals' fees or charges relating
      to the enforcement of Lender's rights, remedies, powers and security
      interests under this Agreement, including, but not limited to, the enforcement
      of the Loans.                                                                                                                         

|- 3 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

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| | "Borrower 2 Lock Box Accounts
      shall have the meaning set forth in Section 3.3(B) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Borrower 2 Lock Box Agreement and Borrower
      2 Lock Box Agreements shall have the meanings set forth in Section
      3.3(B) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Borrowing Base" shall mean individually and Borrowing
      Bases shall mean collectively, each of the Borrowing Base 1 and the
      Borrowing Base 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Borrowing Base 1" shall mean the sum of the following,
      less any reserves as Lender from time to time in its commercially reasonable
      discretion elects (including, but not limited to, with respect to any Permitted
      Lien): (A) 80% of Borrower 1's then existing Eligible Accounts Receivable;
      plus (B) 100% of Borrower 1s then Eligible Vendor Repurchase Inventory.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Borrowing Base 2" shall mean the sum of the following,
      less any reserves as Lender from time to time in its commercially reasonable
      discretion elects (including, but not limited to, with respect to any Permitted
      Lien): (A) 80% of Borrower 2s then existing Eligible Accounts Receivable;
      plus (B) 100% of Borrower 2s then Eligible Vendor Repurchase Inventory.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Borrowing Base Certificate" shall mean for any
      Borrower, Lenders form of borrowing base certificate, plus for each
      (i) Monthly Borrowing Base Certificate of any Borrower, such Borrowers
      Accounts Receivable aging, accounts payable report, sales report, cash receipt
      report, credit and debit journal and inventory report; (ii) Daily Borrowing
      Base Certificate of Borrower 1, Borrower 1s cash receipts report
      setting forth Borrower 1s cash receipts from the later of Borrower
      1s (a) most recent Daily Borrowing Base Certificate received by Lender;
      or (b) most recent Monthly Borrowing Base Certificate received by Lender;
      or (c) most recent Weekly Borrowing Base Certificate received by Lender;
      and (iii) Daily Borrowing Base Certificate of Borrower 2, Borrower 2s
      Accounts Receivable aging summary, sales report, cash receipt report, credit
      and debit journal and inventory report setting forth Borrower 2s
      sales and cash receipts from the later of Borrower 2s (a) most recent
      Daily Borrowing Base Certificate received by Lender; or (b) most recent
      Monthly Borrowing Base Certificate received by Lender; or (c) most recent
      Weekly Borrowing Base Certificate received by Lender; and (iv) Weekly Borrowing
      Base Certificate, such Borrowers Accounts Receivable aging summary,
      sales report, cash receipt report, credit and debit journal and inventory
      report setting forth such Borrowers sales and cash receipts from
      the later of such Borrowers (a) the most recent Daily Borrowing Base
      Certificate received by Lender; or (b) the most recent Monthly Borrowing
      Base Certificate received by Lender; or (c) the most recent Weekly Borrowing
      Base Certificate received by Lender.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | Business Day shall mean any day (other
      than a Saturday or Sunday) on which the Federal Reserve Bank of Chicago
      is open for business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Business Plan" shall mean any projected balance
      sheet and profit and loss statement of any Borrower for the annual period
      ending on the last day of any of such Borrowers fiscal year, together
      with appropriate supporting details and a statement of underlying assumptions,
      and containing at least an income statement and balance sheet projections,
      all prepared under the supervision of such Borrowers president and/or
      chief financial officer and/or controller and/or treasurer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Closing Date" shall mean the date upon which all
      of the terms and conditions of the Documents have been met or fulfilled
      to the satisfaction of Lender to make the first Loan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

|- 4 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

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| | Code" shall mean the Internal Revenue Code
      of 1986, as amended from time to time.                                                                                                  
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                           
| | "Collateral" shall mean the following property owned
      by any Borrower, howsoever arising, wherever located and whether now owned
      or existing or hereafter existing or acquired:

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (A) | all Equipment;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (B) | all Accounts Receivable;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (C) | all Inventory;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (D) | any and all monies, reserves,
      deposits, deposit accounts, securities, cash, cash equivalents, bal­ances,
      credits, and interest and dividends on any of the above, of or in the name
      of any Borrower, now or hereafter with the Lender or any financial institution
      under the control of Lender and any and all other property of any kind and
      description of or in the name of such Borrower, now or hereafter, for any
      reason or purpose whatsoever, in the possession or control of, or in transit
      to, the Lender or any agent or bailee for the Lender;
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (E) | all chattel paper, whether tangible
      or electronic chattel paper, contract rights, letter of credit rights, and
      instruments including, without limitation, all supporting obligations of
      any of the foregoing;                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (F) | all General Intangibles;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (G) | all investment property;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (H) | all furniture and fixtures;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (I) | all documents of title and receipts,
      whether negotiable or non-negotiable, including all goods covered by such
      documents;                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (J) | all books, records and computer
      records in any way relating to the above property;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (K) | any and all substitutions, renewals,
      improvements, replacements, additions and proceeds of (A) through (J) above,
      including, without limitation, proceeds of insurance policies.                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | Notwithstanding the foregoing, however, the
      term Collateral shall not include and the security interests
      granted to Lender under the Documents shall not extend to any license granted
      to any Borrower by any Person not an Affiliate of such Borrower to the extent
      that such license or applicable law prohibits the grant of a security interest
      by such Borrower to Lender of such Borrowers rights as licensee in
      and to such license (but only to the extent such prohibition is enforceable
      under applicable law).

|- 5 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

|
|



| | "Collateral Locations" shall mean the
      locations set forth on Exhibit 1.1-4 attached hereto, as amended
      from time to time upon written notice to Lender, and such other locations
      at which any Borrower may from time to time temporarily keep, locate or
      store Collateral for sales, testing, demonstration or similar purposes.                                                                                                                                                                                                                                                      
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | "Collecting Bank" shall mean individually, and "Collecting
      Banks" shall mean collectively, such banks required and acceptable to
      Lender to collect and remit funds in accordance with this Agreement.                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | "Collection Accounts shall mean each of the
      Borrower 1 Collection Accounts and the Borrower 2 Collection Accounts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | Confidential Information shall mean
      the following which is disclosed by any Borrower to Lender or Lender to
      any Borrower:  Information, analyses, reports or other documents regarding
      Lender or any Borrower, or their respective Affiliates, data, product or
      service descriptions, forecasts, business strategies, any of the terms or
      provisions of any of the Documents, and other business information in various
      mediums which Lender or any Borrower, as applicable, considers confidential.                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | CPCS Stock Purchase Agreement shall
      mean t Certain Stock Purchase Agreement Dated March 31, 2003, by and between
      Borrower 1 as Purchaser and Borrower 2 and Christina Corley, Robert Frauenheim,
      Individually and as Trustee Of The Robert Frauenheim Declaration Of Trust
      Dated September 17, 1997, and Daniel Frauenheim as Sellers and Christina
      Corley as Seller Representative, a copy of which is attached as Exhibit
      1.1-5.                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | Current Ratio shall mean the ratio
      of a Persons, (A) current consolidated assets to (B) total current
      consolidated liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | "Daily Borrowing Base Certificate shall have
      the meaning set forth in Section 5.1(A)(vii) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | "Default Rate" shall mean, as of the date of any
      determination, a rate equal to the lesser of 4% above the Pre-Default Rate
      or the highest rate allowed by applicable law.                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | "Designated Vendor" shall mean individually, and
      Designated Vendors shall mean collectively, each of
      the Persons set forth on Exhibit 1.1-6 and any other Person designated
      in writing by Lender from time to time and at any time; provided,
      however, that if at any time and from time to time Lender in its
      commercially reasonable discretion may give Borrowers written notice that
      effective upon the day of such notice, any then existing Person previously
      designated as a Designated Vendor no longer shall be a deemed to be a Designated
      Vendor.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | "Documents" shall mean this Agreement, and any other
      instru­ments or documents required or contemplated hereunder or thereunder,
      whether now existing or at any time here­after arising.                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | Eligible Accounts Receivable" shall mean
      those Accounts Receivable of any Borrower which the Lender deems in its
      commercially reasonable discretion, to be eligible.  Without limitation
      of the foregoing, unless otherwise agreed to in writing by the Lender, the
      following shall not constitute Eligible Accounts Receivable:                                                                                                                                                                                                                                                     

| |  | (A) | Accounts Receivable
      which remain unpaid 90 days after the invoice date of such Accounts Receivable;
| |  | --- | ---------------------------------------------------------------------------------------------------------

|- 6 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

|
|



| |  | (B) | all Accounts Receivable
      owing by a single Account Debtor, including currently scheduled Accounts
      Receivable, if 20% or more of the balance owing by such Account Debtor to
      any Borrower is more than 90 days after the invoice date of such Accounts
      Receivable;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (C) | Accounts Receivable with respect
      to which the Account Debtor is a Borrower, or a director, officer, employee
      or Affiliate of any Borrower;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (D) | Accounts Receivable with respect
      to which the Account Debtor is either (i) not a resident of the United States
      or Canada or (ii) located outside the United States or Canada unless such
      Account Receivable is either (a) subject to a letter of credit in form and
      manner satisfactory to Lender or (b) insured in form and manner satisfactory
      to Lender;                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (E) | Accounts Receivable in dispute
      or with respect to which the Account Debtor has asserted or may assert a
      counterclaim or has or may have a right of setoff;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (F) | Accounts Receivable with respect
      to which the Lender does not have a first and valid fully perfected security
      interest;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (G) | Accounts Receiv­able with
      respect to which the Account Debtor is the subject of a bankruptcy or a
      similar insolvency proceeding or has made an assign­ment for the benefit
      of creditors or whose assets have been conveyed to a receiver or trustee;
      (REDACTED),                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (H) | Accounts Receivable with respect
      to which the Account Debtor's obligation to pay is either on a "COD" basis
      or is conditional upon the Account Debtor's approval or is otherwise subject
      to any repurchase obligation or return right, as with sales made on a bill-and-hold
      (not otherwise acknowledged in writing as a true sale by such Account Debtor),
      guaranteed sale, sale-and-return, sale on approval or consignment basis;                                                                                                                                                                                                                                                                                                                                                                                        
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (I) | Accounts Receivable with respect
      to which the Account Debtor is located in a state which requires any Borrower,
      as a precondition to commencing or maintaining an action in the courts of
      that state, either to (i) receive a certificate of authority to do business
      and be in good standing in such state, or (ii) file a notice of business
      activities or similar report with such states taxing authority, unless
      (a) such Borrower has taken one of the actions described in clauses (i)
      or (ii), (b) the failure to take one of the actions described in either
      clause (i) or (ii) may be cured retroactively by such Borrower at its election,
      or (c) such Borrower has proven to the satisfaction of the Lender that it
      is exempt from any such requirements under such states laws;
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (J) | any service charges or interest
      on any Accounts Receivable;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (K) | retainage Accounts Receivable;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (L) | any Accounts Receivable which
      are the subject of any goods which are being financed by any floor plan
      agreement or indirect financing arrangement done on behalf of any Borrowers
      distributors and/or dealers;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (M) | to the extent the Accounts Receivable
      owing by (REDACTED) exceeds in the aggregate 40% of all of Borrowers
      Accounts Receivable in the aggregate, that portion of Accounts Receivable,
      including currently scheduled Accounts Receivable, owing by such Account
      Debtor that exceeds 40% of all of Borrowers Accounts Receivable;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

|- 7 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

|
|



| |                                                                                                                                                                                                                                                                                                                                                | (N) | to the extent the
      Accounts Receivable owing by (REDACTED) exceeds in the aggregate 30% of
      all of Borrowers Accounts Receivable in the aggregate, that portion
      of Accounts Receivable, including currently scheduled Accounts Receivable,
      owing by such Account Debtor that exceeds 30% of all of Borrowers
      Accounts Receivable;                                                                     
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (O) | to the extent the Accounts Receivable
      owing by a single Account Debtor to Borrowers in the aggregate other than
      (REDACTED) exceeds in the aggregate 10% of all of Borrowers Accounts
      Receivable in the aggregate, that portion of Accounts Receivable, including
      currently scheduled Accounts Receivable, owing by such Account Debtor that
      exceeds 10% of all of Borrowers Accounts Receivable; and
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (P) | any Accounts Receivable with
      respect to goods being sold on a consignment basis.                                                                                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Eligible Inventory" shall mean such
      Inventory of any Borrower located on the Collateral Locations which Lender
      deems in its commercially reasonable discretion to be eligible. Without
      limitation of the foregoing, unless otherwise agreed to by the Lender, the
      fol­lowing shall not constitute Eligible Inventory:
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (A) | Inventory which is in transit
      other than Inventory subject to an Approval;                                                                                                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (B) | Inventory which is not in good
      and mer­chantable condition, or not either currently usable or currently
      salable in the ordinary course of the any Borrower's business;                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (C) | Inventory which is obsolete as
      determined by any Borrower in such Borrowers sole discretion;                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (D) | Inventory which the Lender deter­mines,
      in the exercise of its commercially reasonable discretion and in accordance
      with the Lender's customary business practices and in good faith, to be
      unacceptable due to obsolescence, age, type, category and/or quantity;                                                                                                                                                
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (E) | Inventory with respect to which
      the Lender does not have a first and valid fully perfected security interest;                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (F) | Inventory which is stored with
      on a bailment, consignment, warehouse or similar third party arrangement,
      unless such bailee, consignee, warehouse Person, or other third party, as
      applicable, delivers to Lender an agreement in form an substance satisfactory
      to Lender;                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (G) | work-in-process inventory;                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (H) | Inventory not located on the
      Collateral Locations; and                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                | (I) | demonstration and display Inventory                                                                                                                                                                                                                                                                                                                                                                                                 

|- 8 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

|
|



| | Eligible Vendor Repurchase Inventory
      shall mean such Eligible Inventory of any Borrower which Lender deems in
      its commercially reasonable discretion to be eligible that is subject to
      a Vendor Repurchase Agreement and is not subject to any Third Party Financing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "Equipment" shall mean all machinery and equipment
      owned by any Borrower, wherever located, whether now owned or hereafter
      existing or acquired by any Borrower, any embedded software thereon, any
      additions thereon, accessions thereto or replacements of parts thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "First Collateral" shall mean all of the Collateral
      other than (i) Inventory manufactured by IBM on which IBMCC has a first
      lien position pursuant and subject to the IBMCC Credit Agreements and the
      IBMCC Intercreditor Agreements; or (ii) equipment subject to a lease in
      favor of any Borrower permitted pursuant to this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | Fixed Charge Coverage for any 12 month
      period shall mean a fraction, (A) the numerator of which is Borrowers
      earnings before interest, taxes, depreciation and amortization in such 12
      month period and (B) the denominator of which are the current portion of
      long term payments of principal and interest required to be made by Borrowers
      on all interest bearing indebtedness (including, but not limited to capitalized
      lease obligations) in such 12 month period.                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "Floor Plan Arrangement" shall mean any Eligible
      Inventory of any Borrower (A) which is the subject of a Free Floor Plan
      Agreement with a Vendor that is in full force and effect; and (B) for which
      the invoice has been sent directly to Lender by the vendor of the Eligible
      Inventory for payment by Lender directly to such Vendor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "Free Floor Plan Agreement" shall mean individually
      and Free Floor Plan Agreements shall mean collectively, each
      agreement in form and manner satisfactory to Lender by and between a Designated
      Vendor and Lender pursuant to which such Designated Vendor has made an unqualified
      agreement to provide free floor planning of Eligible Inventory for a specified
      period of time (a Free Floor Plan Period) to any Borrower
      and such Designated Vendor shall be paying interest to Lender on such Eligible
      Inventory during such Free Floor Plan Period.                                                                                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "Free Floor Plan Period" shall have the meaning
      set forth in the definition of Free Floor Plan Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "General Intangibles" shall mean all general intang­ibles
      (as such term is defined in the UCC) owned by any Borrower, including, but
      not limited to payment intangibles, goodwill, software, trademarks, trade
      names, licenses, patents, patent applications, copyrights, inventions, franchises,
      books and records of such Borrower, designs, trade secrets, registra­tions,
      prepaid expenses, all rights to and payments of refunds, overpayments, rebates
      and return of monies, including, but not limited to, sales tax refunds,
      tax refunds, tax refund claims and rights to and payments of refunds, overpayments
      or overfundings under any pension, retire­ment or profit sharing plans
      and any guarantee, security interests or other security held by or granted
      to such Borrower to secure payment by an Account Debtor of any of the Accounts
      Receivable.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | IBM" shall mean International Business Machines
      Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "IBMCC shall mean IBM Credit Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | "IBMCC Credit Agreement shall mean individually
      and IBMCC Credit Agreements shall mean collectively,
      each of the Borrower 1 IBMCC Credit Agreement and the Borrower 2 IBMCC Credit
      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

|- 9 -***(REDACTED) - Confidential Treatment Requested
|-----------------------------------------------------

|
|



| | "IBMCC Credit Financing" shall mean
      individually and IBMCC Credit Financings shall mean collectively,
      each of the Borrower 1 IBMCC Credit Financing and the Borrower 2 IBMCC Credit
      Financing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "IBMCC Intercreditor Agreement" shall mean individually
      and IBMCC Intercreditor Agreements shall mean collectively,
      each of the Borrower 1 IBMCC Intercreditor Agreement and the Borrower 2
      IBMCC Intercreditor Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | IBMCC Liabilities shall mean the Borrower
      1 IBMCC Liabilities and the Borrower 2 IBMCC Liabilities, collectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Insecurity Date shall mean any date on which
      Lender gives any Borrower an Insecurity Notice pursuant to Section 7.1(M)
      of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Insecurity Notice shall have the meaning
      set forth in Section 7.1(M) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Inventory" shall mean any and all goods, finished
      goods, whole goods, materials, raw materials, work-in-progress, components
      or supplies, wheresoever located and whether now owned or hereinafter acquired
      and owned by any Borrower, including, without limitation, goods, finished
      goods, whole goods, materials, raw materials, work-in-process, components
      or supplies in transit, wheresoever located, whether now owned or hereafter
      acquired by such Borrower, which are held for demonstration, illustration,
      sale or lease, furnished under any contract of service or held as raw materials,
      work-in-process for manufacturing or processing or supplies for manufacturing
      or pro­cessing, and all materials used or consumed in the business
      of such Borrower, and shall include such other property, the sale or dis­position
      of which has given rise to an Accounts Receivable and which has been returned
      to or repossessed or stopped in transit by or on behalf of such Borrower,
      but shall not include property owned by third parties in the possession
      of such Borrower.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Inventory Loan shall mean individually and
      Inventory Loans" shall mean collectively each Revolving Loan
      disbursed by Lender directly to Vendors solely for the acquisition of Inventory
      subject to an Approval by any Borrower from the Vendors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Liabilities" shall mean the Borrower 1 Liabilities
      and the Borrower 2 Liabilities, collectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Line of Credit shall mean individually and
      Lines of Credit shall mean collectively, each of the
      Line of Credit 1 and the Line of Credit 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Line of Credit 1 shall have the meaning
      set forth in Section 2.1(A) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Line of Credit 2 shall have the meaning
      set forth in Section 2.1(B) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Line of Credit 2 Commencement Date shall
      mean a date chosen from time to time by Lender in Lenders sole discretion
      which Lender gives written notice to Borrowers.  As of the Closing
      Date, the Line of Credit 2 Commencement Date shall be April 30, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Line of Credit 2 Conditions Precedent shall
      mean shall mean all of the terms and conditions of the Documents required
      to make the first Revolving Loan 2, including, but not limited to, the conditions
      precedent set forth in Sections 6.1, 6.3 and 6.4 of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Loan" shall mean individually, and "Loans"
      shall mean collectively, each of the Revolving Loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | "Lock Box Accounts shall mean each of the
      Borrower 1 Lock Box Accounts and the Borrower 2 Lock Box Accounts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

|- 10 -***(REDACTED) - Confidential Treatment Requested
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|



| | "Lock Box Agreement and Lock
      Box Agreements shall mean each of the Borrower 1 Lock Box Agreements
      and the Borrower 2 Lock Box Agreements.                                                                                                                                                                                                            
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                     
| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                     
| | "Maximum Credit Amount" shall mean (A) $30,000,000.00
      until the Line of Credit 2 Condition Precedent are met or fulfilled in their
      entirety to the satisfaction of Lender; and (B) $40,000,000.00 following
      the date on which the Line of Credit 2 Condition Precedent are met or fulfilled
      in their entirety to the satisfaction of Lender.
| |                                                                                                                                                                                                                                                                                                                                                                     
| | "Monthly Borrowing Base Certificate shall
      have the meaning set forth in Section 5.1(A)(vii) of this Agreement.                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                     
| | "Net Worth" shall mean the total amount of issued
      and outstanding capital stock, plus paid in capital and retained earnings
      and less treasury stock.                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                     
| | "Objected Loan and Objected Loans
      shall have the meanings set forth in Section 2.7(A) of this Agreement.                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                     
| | Permitted Indebtedness shall mean:                                                                                                                                                                                                                                                                                                                                

| |  | (A) | the Liabilities,
      including the Loans;                                                                                                                                                                                                                                                                                                                              
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (B) | accounts payable arising in the
      ordinary course of business;                                                                                                                                                                                                                                                                                                       
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (C) | the Subordinated Debt;                                                                                                                                                                                                                                                                                                                                                   
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (D) | Third Party Financing;                                                                                                                                                                                                                                                                                                                                                   
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (E) | intercompany indebtedness between
      (i) Borrower 1 and Borrower 2 in any amount; and (ii) except as set forth
      in clause (i) of this definition, Borrower 1 and any subsidiary in an amount
      not to exceed $325,000 at any one time; and (iii) Borrower 2 and Borrower
      1 in any amount.                                                              
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (F) | Indebtedness existing on the
      Closing Date more fully described on Exhibit 1.1-7 attached hereto;                                                                                                                                                                                                                                                                   
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (G) | Indebtedness secured by Permitted
      Liens;                                                                                                                                                                                                                                                                                                                           
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (H) | Indebtedness arising under currency
      agreements or interest rate agreements entered into in the ordinary course
      of business;                                                                                                                                                                                                                                  
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (I) | Indebtedness arising from the
      endorsement of instruments in the ordinary course of business;                                                                                                                                                                                                                                                                       
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (J) | Other indebtedness in an amount
      not to exceed $325,000.00 at any one time; and                                                                                                                                                                                                                                                                                     
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (K) | operating leases that are true
      leases arising in the ordinary course of business;                                                                                                                                                                                                                                                                                  
| |  |     |                                                                                                                                                                                                                                                                                                                                                                          
| |  | (L) | Extensions, refinancings, modifications,
      amendments and restatements of any items of Permitted Indebtedness described
      in (A) through (K) above, provided that the principal amount thereof is
      not increased or the terms (other than the principal amount) thereof are
      not modified to impose materially more burdensome terms upon any Borrower.

|- 11 -***(REDACTED) - Confidential Treatment Requested
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|



| | Permitted Liens shall
      mean liens:
| | -----------------------------------------
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          
| |                                          

|- 12 -***(REDACTED) - Confidential Treatment Requested
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|



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (N) | on cash collateral securing reimbursement
      obligations under letters of credit;                                                                                                                                                                                                                                                                                                                                                
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (O) | licenses and sublicenses granted in the ordinary
      course of business;                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (P) | Liens incurred in the extension, renewal or
      refinancing of the indebtedness secured by liens described above, but any
      extension, renewal or replacement lien must be limited to the property encumbered
      by the existing lien and the principal amount of the indebtedness may not
      increase.                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | Permitted Loans shall
      mean:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (A) | Loans (i) from Borrower 1 to Borrower 2 in
      any amount; and (ii) except as set forth in clause (i) of this definition,
      from Borrower 1 to any subsidiary in an amount not to exceed $325,000 in
      any calendar year; and (iii) from Borrower 2 to Borrower 1 in any amount;                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (B) | Capital contributions and investments by (i)
      Borrower 1 in Borrower 2 in any amount; and (ii) except as set forth in
      clause (i) of this definition, Borrower 1 in subsidiaries of Borrower 1
      in an amount not to exceed $325,000.00 in any calendar year;                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (C) | the endorsement, in the ordinary course of
      collection, of instruments payable to it or to its order or the order of
      a subsidiary;                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (D) | travel advances and employee relocation loans
      and other employee loans and advances in the ordinary course of business,
      and loans to employees, officers or directors relating to the purchase of
      equity securities of Borrower 1 pursuant to employee stock purchase plan
      and employee stock option plan agreements approved by Borrower 1s
      Board of Directors, and that certain loan to (REDACTED),
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (E) | notes receivable arising from the conversion
      of Accounts Receivable arising in the ordinary course of business of, or
      prepaid royalties, to customers and suppliers who are not Affiliates, in
      the ordinary course of business; and                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (F) | loans or investments in customers, vendors,
      suppliers and other Persons in the same industries as Borrower 1 and its
      Affiliates, in an aggregate amount not to exceed $50,000.00per year.                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | "Person" shall mean individually, and
      Persons shall mean collectively, any individual, sole
      proprietor­ship, partnership, joint venture, trust, unincorporated
      organization, association, corporation, institution, entity, party or government
      (whether national, federal, state, county, city, municipal or otherwise
      including, without limitation, any instrumentality, division, agency, body
      or department thereof).                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | Pre-Default Rate shall
      mean, as of the date of any determination, the per annum rate equal to from
      time to time of the Prime Rate, plus 1⁄2%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | Prime Rate shall mean,
      as of the date of any determination, the greater of  (A) the highest
      prime rate published in the Money Rates column
      of the The Wall Street Journal on the first business day of the month;
      or (B) 4.25%.  In the event The Wall Street Journal shall, for
      any reason, fail or cease to publish the prime rate of interest, Lender
      shall choose a comparable publication to use as the basis for the prime
      rate of interest. The Prime Rate is the interest rate charged by the Lender
      on commercial loans to a substantial number of the Lenders good business
      customers, but it is not necessarily the Lenders lowest interest
      rate charged to any customer.  The Prime Rate is subject to change
      by the Lender without notice of any kind.

|- 13 -***(REDACTED) - Confidential Treatment Requested
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|



| | "Revolving Loan" and Revolving
      Loans shall mean each of the Revolving Loans 1 and the Revolving
      Loans 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | "Revolving Loan 1" and Revolving Loans
      1 shall have the meanings set forth in Section 2.1 (A) of this
      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | "Revolving Loan 2" and Revolving Loans
      2 shall have the meanings set forth in Section 2.1 (B) of this
      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | "SEC" shall mean the United States Securities and
      Exchange Commission.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | "Subordinated Debt" shall mean indebtedness due
      and owing by any Borrower to any Person (whether such indebtedness shall
      be now existing or hereinafter arising) which is permitted to exist pursuant
      to this Agreement and is subordinated to the Liabilities, all as evidenced
      by the agreements, documents and instruments attached to the Subordination
      Agreements.  Without limitation of the foregoing, all indebtedness
      of Borrower 1 to any Person pursuant to the CPCS Stock Purchase Agreement,
      whether now existing of hereinafter arising, including, but not limited
      to, any Contingent Payment (as defined in the CPCS Stock Purchase Agreement)
      and amounts due and owing pursuant to the Promissory Notes
      (as defined in the CPCS Stock Purchase Agreement) shall be deemed to be
      Subordinated Debt.                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | "Subordination Agreement" shall mean individually,
      and "Subordination Agreements" shall mean collectively, each agreement
      given to the Lender from time to time by any Person with respect to the
      Subordinated Debt, all in the form and manner satisfactory to Lender.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | Tangible Net Worth" shall mean as of any
      date the sum of Borrowers (A) net worth as reflected on its last
      twelve-month consolidated fiscal financial statements, (B) net earnings
      since the end of such fiscal year, both after provision for taxes and with
      Inventory determined on a first in, first out basis and (C) Subordinated
      Debt, less the sum of Borrowers (i) intangible assets, including,
      without limitation, deposits, unamortized leasehold improvements, good will,
      franchises, licenses, patents, trade names, copyrights, service marks, brand
      names, covenants not to compete and any other asset which would be treated
      as an intangible under generally accepted accounting principles; (ii) prepaid
      expenses (however such item shall not include prepaid inventory); (iii)
      franchise fees; (iv) notes, Accounts Receivable and other amounts owed to
      it by any guarantor of any of the Liabilities, Affiliate or employee of
      any Borrower; (v) losses since the end of such fiscal year; and (vi) interest
      in the cash surrender value of officers or shareholders life
      insurance policies.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | "Termination Date" shall mean November 26, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

|- 14 -***(REDACTED) - Confidential Treatment Requested
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | "Third Party Financing shall
      mean (A) indebtedness to IBMCC pursuant to the any IBMCC Credit Agreement
      incurred to finance the acquisition of inventory manufactured by IBM; and
      (B) such other indebtedness consented to in writing by Lender due from time
      to time by Borrower to any and all Persons solely relating to the financing
      of any assets and related soft costs of Borrower.                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Third Party Waiver and Third
      Party Waivers shall have the meaning set forth in Section 3.5
      of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | "Transaction Statement shall mean a statement
      which at Lenders option may be issued by Lender to any Borrower from
      time to time which identifies the Inventory and Accounts Receivable financed
      and/or the Loans made and the terms and conditions of repayment therefor.                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | "UCC" shall mean the Uniform Commercial Code as
      enacted and amended in the State of Illinois, and as may be further amended
      from time to time.                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Vendor shall mean individually, and
      Vendors shall mean collectively, each vendor of new,
      unused Inventory to a Person, including, but not limited to, any Borrower.                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | "Vendor Accounts Receivable" shall mean Accounts
      Receivable from a Vendor arising from rebates, amounts owing under contracts
      for the sale of inventory by such Vendor to any Borrower and offsets of
      advertising expenses incurred by such Borrower to promote the sale of such
      Borrowers Inventory.   Without limitation of the foregoing,
      Vendor Accounts Receivable shall not include Accounts Receivable arising
      from the sale of inventory by any Borrower to such Vendor.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Vendor Repurchase Agreement shall
      mean individually and Vendor Repurchase Agreements
      shall mean collectively, each agreement in form and manner satisfactory
      to Lender by and between the Vendor of any Inventory and Lender pursuant
      to which such Vendor has made an unqualified agreement to repurchase such
      Inventory from Lender.                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | "Weekly Borrowing Base Certificate shall
      have the meaning set forth in Section 5.1(A)(vi) of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Working Capital Loan shall mean individually
      and Working Capital Loans shall mean collectively,
      each Revolving Loan other than an Inventory Loan made to any Borrower for
      working capital purposes.                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|SECTION 1.2.        OTHER TERMS. 
      Accounting terms used in this Agreement which are not specifically defined
      shall have the meanings customarily given them in accordance with generally
      accepted account­ing principles in effect from time to time. 
      Terms used in this Agreement which are defined in the UCC, shall, unless
      the context indicates otherwise or are otherwise defined in this Agreement,
      have the meanings provided for by the UCC.

|- 15 -***(REDACTED) - Confidential Treatment Requested
|------------------------------------------------------

|
|



|ARTICLE TWO.  LOANS
|-------------------

|SECTION 2.1.        LOAN AMOUNT. 
      Subject to the terms and conditions of this Agreement, on the Closing Date,
      the Lender agrees:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(A)          to make loans
      in the aggregate to the Borrowers on a revolving basis (such loans being
      herein called individ­ually a "Revolving Loan 1" and collectively the
      "Revolving Loans 1") from time to time in such amounts as the Borrowers
      may from time to time request plus have outstanding Borrower 1 Approvals
      from time to time up to the least of (i) the Maximum Credit Amount; or (ii)
      the Borrowing Base 1; or (iii) the Maximum Credit Amount minus the then
      outstanding Revolving Loans 2 (the least of (i), (ii) or (iii) shall be
      referred to as the "Line of Credit 1") at any time; pro­vided,
      however, that (1) Eligible Inventory shall be valued at the lower
      of cost or market value using the first in, first out method of inventory
      accounting; and (2) each bor­rowing by Borrowers hereunder with respect
      to any Revolving Loan 1 shall be in the aggregate principal amount of at
      least $5,000.00; and (3) repayments from time to time of the Line of Credit
      1 shall be available to be reborrowed pursuant to the terms and conditions
      of this Agreement; and (4) if the Revolving Loans 1 plus outstanding Borrower
      1 Approvals outstanding at any time or from time to time exceeds the advance
      limita­tions described above, Borrowers shall pay (I) within three
      (3) Business Days if Lender modifies the Borrowing Base 1 and/or what constitutes
      Eligible Accounts Receivable, Eligible Inventory and/or Eligible Vendor
      Repurchase Inventory in a manner that reduces Borrowers availability
      under the Borrowing Base 1; or (II) in all circumstances other than described
      in subclause (I) of this clause (4) on demand to the Lender such amount
      necessary to eliminate such excess; and (5) the Lender's commit­ment
      to make Revolving Loans 1 and issue Borrower 1 Approvals shall remain in
      effect for a period to and including the date immediately preceding the
      Termination Date; and (6) notwithstanding anything else contained in this
      Agree­ment, (I) subject to the proviso at the end of this subclause
      (I), upon the occurrence and continuance of any Event of Default or any
      event which would, with the giving of notice, the passage of time, or both,
      result in an Event of Default, and in every such event, the Lender may,
      in its commercially reasonable discretion, immediately cease to make Revolving
      Loans 1 and issue Borrower 1 Approvals; provided, further,
      that so long as the only Event of Default that exists or would exist with
      the giving of notice, the passage of time, or both, is the Event of Default
      set forth in Section 7.1(M) of this Agreement, for a period of thirty (30)
      days commencing with any Insecurity Date, Lender shall, subject to the terms
      and provisions of this Agreement, continue to make Revolving Loans 1 and
      issue Borrower 1 Approvals in an amount not to exceed the lesser of (x)
      the amount of all Revolving Loans 1 plus outstanding Borrower 1 Approvals
      on such Insecurity Date; or (y) the Borrowing Base 1; and (II) Borrowers
      shall repay to the Lender on the Termination Date all Revolving Loans 1,
      plus the amount of all outstanding Borrower 1 Approvals, plus interest accrued
      to the date of payment.                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(B)           to make
      loans in the aggregate to the Borrowers on a revolving basis (such loans
      being herein called individ­ually a "Revolving Loan 2" and collectively
      the "Revolving Loans 2") from time to time in such amounts as the Borrowers
      may from time to time request plus have outstanding Borrower 2 Approvals
      from time to time up to the least of (i) $15,000,000.00; or (ii) the Borrowing
      Base 2; or (iii) the Maximum Credit Amount minus the then outstanding Revolving
      Loans 1 (the least of (i), (ii) or (iii) shall be referred to as the "Line
      of Credit 2") at any time; pro­vided, however, that (1)
      Eligible Inventory shall be valued at the lower of cost or market value
      using the first in, first out method of inventory accounting; and (2) each
      bor­rowing by Borrowers hereunder with respect to any Revolving Loan
      2 shall be in the aggregate principal amount of at least $5,000.00; and
      (3) repayments from time to time of the Line of Credit 2 shall be available
      to be reborrowed pursuant to the terms and conditions of this Agreement;
      and (4) if the Revolving Loans 2 plus outstanding Borrower 2 Approvals outstanding
      at any time or from time to time exceeds the advance limita­tions described
      above, Borrowers shall pay (I) within three (3) Business Days if Lender
      modifies the Borrowing Base 2 and/or what constitutes Eligible Accounts
      Receivable, Eligible Inventory and/or Eligible Vendor Repurchase Inventory
      in a manner that reduces Borrowers availability under the Borrowing
      Base 2; or (II) in all circumstances other than described in subclause (I)
      of this clause (4) on demand to the Lender such amount necessary to eliminate
      such excess; and (5) the Lender's commit­ment to make Revolving Loans
      2 and issue Borrower 2 Approvals shall remain in effect for a period to
      and including the date immediately preceding the Termination Date; and (6)
      notwithstanding anything else contained in this Agree­ment, (I) subject
      to the proviso at the end of this subclause (I), upon the occurrence and
      continuance of any Event of Default or any event which would, with the giving
      of notice, the passage of time, or both, result in an Event of Default,
      and in every such event, the Lender may, in its commercially reasonable
      discretion, immediately cease to make Revolving Loans 2 and issue Borrower
      2 Approvals; provided, further, that so long as the only Event
      of Default that exists or would exist with the giving of notice, the passage
      of time, or both, is the Event of Default set forth in Section 7.1(M) of
      this Agreement, for a period of thirty (30) days commencing with any Insecurity
      Date, Lender shall, subject to the terms and provisions of this Agreement,
      continue to make Revolving Loans 2 and issue Borrower 2 Approvals in an
      amount not to exceed the lesser of (x) the amount of all Revolving Loans
      2 plus outstanding Borrower 2 Approvals on such Insecurity Date; or (y)
      the Borrowing Base 2; and (II) Borrowers shall repay to the Lender on the
      Termination Date all Revolving Loans 2, plus the amount of all outstanding
      Borrower 2 Approvals, plus interest accrued to the date of payment; and
      (III) except in Lenders sole and arbitrary discretion, Lender shall
      not make any Revolving Loans 2 until the Line of Credit 2 Conditions Precedent
      are met or fulfilled in their entirety to the satisfaction of Lender.

|- 16 -***(REDACTED) - Confidential Treatment Requested
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|
|



|(C)           Each Borrower
      acknowledges and agrees that: (i) because of the nature of business operations
      of each of the Borrowers are highly integrated and interdependent, (a) at
      any particular time it is impractical to determine which of the Borrowers
      will directly receive the benefit of any Revolving Loan; and (b) the credit
      facilities extended by Lender for each of the Borrowers have been effectively
      combined; (ii) the combined credit facilities are beneficial to the Borrowers
      because they will reduce the overall administration of their borrowings; 
      (iii) the Borrowers could not individually obtain the same amount of credit
      as they can obtain from Lender under such combined credit facilities; and
      (iv) Borrower 1 may request that Lender extend credit to any Borrower with
      respect to Line of Credit 1; and (v) any Borrower may request that Lender
      extend credit to any Borrower with respect to Line of Credit 2.  
      Subject to the provisions of Section 2.1 (D) of this Agreement, Lender may
      combine all of Lenders Loans to Borrowers or on Borrowers' behalf,
      whether under this Agreement or any other agreement, and whether provided
      by one or more of Lenders branch offices, together with all finance
      charges, fees and expenses related thereto, to make one debt owed by each
      Borrower.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(D)          Each Borrower
      shall be jointly and severally liable with the other Borrower for the liabilities
      of each other Borrower hereunder, each Borrower shall be obligated and responsible
      for the performance of each other Borrower hereunder and a Event of Default
      by any Borrower shall be an Event of Default by the other Borrower. 
      Each Borrower waives:  (i) any right of contribution from any other
      Borrower until all of the Liabilities hereunder have been paid in full;
      (ii) any right to require Lender to institute any action or suit to exhaust
      Lenders rights and remedies against any Collateral or any Borrower
      before proceeding against such Borrower, and (iii) any obligation of Lender
      to marshal any assets in favor of any Borrower.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|SECTION 2.2.        USE OF LOAN PROCEEDS. 
      The proceeds of any borrowing by any Borrower pursuant to the Revolving
      Loans shall be used by the Borrower solely for refinancing existing indebtedness
      of the Borrowers, providing working capital for Borrowers and paying for
      operating expenses and the fees, costs and expenses of the Lender as provided
      for in this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|SECTION 2.3.        REQUESTS FOR REVOLVING
      LOANS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(A)          Lender, in its
      commercially reasonable discretion, may issue approvals (individually an
      Approval and collectively, the Approvals) upon
      receipt of a request (orally or in writing) from a Vendor requesting Lenders
      confirmation that it will finance the acquisition by any Borrower of Inventory
      held for shipment, or shipped, to Borrower.  Partial shipments may
      be made against any Approval and Lender may honor the related invoice without
      inquiry, regardless of any apparent disproportion between (i) the quantity
      shipped and the amount of the related invoice; or (ii) the amount of the
      Approval and the quantity to be shipped under the Approval.  Until
      terminated or revoked, an Approval shall be deemed outstanding to the extent
      of its face amount less the amount of Revolving Loans made with respect
      to such Approval.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

|- 17 -***(REDACTED) - Confidential Treatment Requested
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|
|



|(B)           Lender shall
      not be responsible for, and each Borrowers obligations to Lender
      shall not be affected by any of the following with respect to any Approval:
      (i) performance or non-performance by any Person other than Lender of its
      obligations to any Borrower; (ii) the form, sufficiency, correctness, genuineness,
      authority of any Person signing, falsification or legal effect of any documents
      called for under any Approval if such document on their face appear to be
      in order; (iii) acts or omissions of any Person other than Lender; (iv)
      the existence, nature, quality, quantity, condition, value or delivery of
      Inventory represented by documents presented to Lender, or any difference
      of Inventory from Inventory represented by documents presented to Lender;
      (v) the validity, sufficiency, genuineness or collectibility of any documents,
      insurance or instruments, or endorsements thereof; (vi) any irregularity
      in connection with shipment; (vii) breach of agreement between any Borrower
      and a Vendor or any other Person; (viii) without limiting the foregoing,
      any act or omission of Lender not done or omitted in bad faith.  In
      the event that any Borrower has a dispute with a Vendor relating to the
      foregoing, Lender shall provide such documents in Lenders possession
      reasonably requested by such Borrower relating to such dispute.  Borrowers
      shall indemnify Lender against any and all claims, losses, liabilities,
      costs and expenses (including, but not limited to, reasonable attorneys
      fees) resulting from or incurred in connection with an Approval and not
      directly caused by Lenders gross negligence or willful misconduct. 
      Lender may not enter into any settlement or other compromise with respect
      to any claim covered by the indemnity set forth in this Section without
      Borrowers prior written consent, which consent shall not be unreasonably
      withheld, conditioned, or delayed.  If Lender obtains recovery of any
      of the amounts that Borrowers have paid to it pursuant to the indemnity
      set forth in this section, then Lender shall promptly pay to Borrowers or
      offset against amounts due and owing Lender by Borrowers the amount of such
      recovery
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(C)           After Lender
      has issued an Approval, Lender shall be deemed to have made an Inventory
      Loan to Borrowers under Section 2.1 of this Agreement as of the ship date
      specified in the invoice relating to such Approval or such earlier date
      as Lender shall enter such Revolving Loan as a receivable on Lenders
      books.  Lender may disburse any such Inventory Loan directly to a Vendor,
      except that Lender may set off any amount owed to Lender by such Vendor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(D)          Lender may refuse
      to issue an Approval or may revoke an Approval at any time in its commercially
      reasonable discretion and effective immediately upon such revocation, Lender
      shall no longer be deemed to have made an Inventory Loan (to the extent
      an Inventory Loan has been made) and Borrowers shall repay any such Inventory
      Loan immediately upon such revocation.  Borrowers shall be obligated
      for all obligations incurred by Lender on account of the issuance of any
      Approval.  Without limiting the foregoing, Borrowers acknowledges that
      Lender customarily revokes Approvals approximately 30 days after issuance
      if Lender has not received an invoice from the applicable Vendor relating
      thereto, although it is not obligated to do so.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(E)           Each request
      by the Borrowers for any Revolving Loan under any Line of Credit other than
      Inventory Loans pursuant to Approvals shall be (i) made in writing, or by
      telephone and if by telephone, shall be promptly confirmed in writing; and
      (ii) accompanied by a Borrowing Base Certificate, and shall be signed by
      the president or chief financial officer or controller or treasurer of (a)
      Borrower 1 with respect to Line of Credit 1; and (b) Borrower 1 or Borrower
      2 with respect to Line of Credit 2.  Each Working Capital Loan shall
      be sent by Federal Reserve wire transfer as directed in writing by (I) Borrower
      1 with respect to Line of Credit 1; and (II) Borrower 1 or Borrower 2 with
      respect to Line of Credit 2.  Lender shall not be required to make
      more than one Working Capital Loan under each Line of Credit to Borrowers
      on any day. The date and amount of each Revolving Loan made by the Lender
      and of each repayment of principal thereon received by the Lender shall
      be recorded by the Lender in the records of the Lender and the aggregate
      unpaid principal amount shown on such records shall be rebuttable, presumptive
      evidence of the principal owing and unpaid on the Revolving Loans. 
      The failure to record any such amount on such records shall not, however,
      limit or otherwise affect the obligations of the Borrowers to repay the
      principal amount of the Revolving Loans together with all interest accruing
      thereon.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

|- 18 -***(REDACTED) - Confidential Treatment Requested
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|
|



|SECTION 2.4.        INTEREST. 
      The outstanding principal balance of the Loans and the other obligations
      hereunder shall bear interest before the occurrence of an Event of Default
      on the average daily outstanding balance thereof not subject to a Floor
      Plan Arrangement at the Pre-Default Rate.  Interest will be calculated
      for the actual number of days elapsed on the basis of a year consisting
      of 360 days. Interest will accrue from the date a Loan is made or other
      obligation is incurred.  Interest accruing on Loans and other obligations
      hereunder prior to an Event of Default shall be due and payable by Borrowers
      monthly in arrears for each month immediately upon receipt of a billing
      statement from Lender for such month; provided, however, that
      Borrowers agree that Lender may provide for the payment of any accrued interest
      hereunder by making a Revolving Loan on the first day of any month for the
      prior month's accrued interest. Upon the occurrence of an Event of Default
      and for so long as such Event of Default continues, such interest shall
      accrue at the Default Rate and shall be payable upon demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|SECTION 2.5.        PAYMENTS AND COLLECTIONS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(A)          General. 
      All payments hereunder shall be made, without setoff or counterclaim, to
      Lender prior to 3:00 P.M., Chicago time, on the date due at its office in
      immediately available funds at Chicago, Illinois or at such other place
      as may be designated by Lender to Borrower in writing.  Any payments
      received after such time shall be deemed received on the next Business Day. 
      Whenever any payment shall be stated to be due on a date other than a Business
      Day, such payment may be made on the next succeeding Business Day, and such
      extension of time shall be included in the computation of interest, fees
      and charges.  Notwithstanding anything to the contrary herein, all
      items of payment for purposes of (i) determining the occurrence of an Event
      of Default shall be deemed received upon actual receipt by Lender at its
      bank, The Northern Trust Bank, Chicago, Illinois or such bank as Lender
      may use as its depository bank from time to time, unless subsequently dishonored
      for any reason; (ii) calculating the Borrowing Bases shall be applied by
      Lender against the principal of and/or interest on any Loans on the Business
      Day deemed received pursuant to this Section by Lender at its bank, The
      Northern Trust Bank, Chicago, Illinois or such bank as Lender may use as
      its depository bank from time to time; and (iii) calculating interest shall
      be deemed to have been applied by Lender against the principal of and/or
      interest on any Loan on the Business Day received by Lender, whether such
      payment is by check, wire, ACH debit or other means.  Lender may at
      any time in its commercially reasonable discretion change the time for payment
      of future Loans or change product lines of Inventory to be financed and
      the terms of such financing by giving Borrowers a written notice specifying
      such change.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(B)           Special
      Draws of the Line of Credit.  Lender is hereby authorized to make
      a Revolving Loan with the proceeds disbursed directly to Lender to make
      any required payments of principal, interest, fees and/or costs due and
      owing by Borrowers pursuant to the Documents.  Lender shall give Borrowers
      written notice of any such Revolving Loan pursuant to this clause contemporaneously
      with the making of such Revolving Loan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|SECTION 2.6         SPECIAL LINE
      OF CREDIT FEES.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(A)          Commitment Fees. 
      In consideration of the commitment by Lender to make the Line of Credit
      available to Borrowers, Borrowers shall pay to Lender on any date on which
      interest is due and payable each month pursuant to this Agreement a fee
      equal to (REDACTED)of the Maximum Credit Amount divided by 12; provided,
      however, that if Lender eliminates in any month all (REDACTED), then
      no payment pursuant to this clause (A) shall be due by Borrowers in the
      following month provided, further, that if any (REDACTED)
      is reinstated, then such fees pursuant to this clause (A) shall be due and
      owing by Borrowers for any month following such reinstatement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(B)           Early Termination. 
      If the Borrowers voluntarily terminates any Line of Credit, contemporaneously
      with such termination, Borrowers shall pay Lender an amount equal to (i)
      1⁄2% of the Maximum Credit Amount if such termination occurs on or before
      the first anniversary of the Closing Date; and (ii) 1⁄4% of the Maximum
      Credit Amount if such termination occurs after the first anniversary of
      the Closing Date but before the Termination Date; provided, however,
      that notwithstanding any other provisions of this Agreement to the contrary,
      if Lender (a) reduces the (REDACTED)and/or the (REDACTED) for any Designated
      Vendor by at least 10%; or (b) modifies at any time or over time any Borrowing
      Base and/or the what constitutes Eligible Accounts Receivable, Eligible
      Inventory and/or Eligible Vendor Repurchase Inventory in a manner that reduces
      Borrowers availability under any Borrowing Base to be greater than
      $10,000,000.00 at such time, then Borrowers shall have the right to terminate
      the Lines of Credit within 60 days of the date of such reduction or modification,
      as applicable, by giving Lender 60 days notice of such termination and in
      such event and only in such event Borrowers shall not be required to pay
      the termination fee outlined above upon such termination by Borrowers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

|- 19 -***(REDACTED) - Confidential Treatment Requested
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|SECTION 2.7.        STATEMENTS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(A)          Acceptance. 
      Borrowers agree to pay the Loans and interest on the Loans in accordance
      with this Agreement and the other Documents.  Borrowers agree that
      the terms and conditions stated in each Transaction Statement shall be accepted
      as to the Loans identified therein if not objected to in writing by Borrowers
      within 60 days after the date such statement is sent to Borrowers. 
      If Borrowers object to any specific Loans (individually, an Objected
      Loan and collectively, the Objected Loans), then where
      applicable the Objected Loans shall be subject to the terms and conditions
      of the most recently accepted Transaction Statement related to Loans covering
      the same model of Inventory or Accounts Receivable financed, as applicable. 
      If there is no such previously accepted Transaction Statement relating to
      the Objected Loans, Borrowers agree that, in addition to any other right
      or remedy Lender may have under the Documents, the Objected Loans related
      to the objected Transaction Statement shall, notwithstanding any other provision
      of the Documents, be due and payable within 90 days after the date of such
      Objected Loans and interest shall accrue at the interest rate in effect
      pursuant to the Documents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(B)           Adjustment.
      Any statement with respect to any Liabilities sent to Borrowers by Lender,
      including without limitation any Transaction Statement, shall be subject
      to subsequent adjustment by Lender but shall be presumed accurate evidence
      of Liabilities and information covered thereby, unless Lender shall have
      received written notice from Borrowers specifying any error within 60 days
      after the date of such statement is sent to Borrower.  Notwithstanding 
      such notice by Borrowers to Lender, Borrowers' obligation to make payments
      to Lender with respect to such statement shall not be waived or extended
      unless and until Lender consents in writing to such waiver or extension.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(C)           Savings
      Provisions.  All agreements between Lender and Borrowers, whether
      now existing or hereafter arising, and whether written or oral, are hereby
      limited by this Section.  In no contingency, whether by reason of acceleration
      or the maturity of the amounts due hereunder or otherwise, shall interest
      contracted for, charged, received, paid or agreed to be paid to Lender exceed
      the maximum amount permissible under applicable law.  If, from any
      circumstance whatsoever, interest would otherwise be payable to Lender in
      excess of the maximum lawful amount, the interest shall be reduced to the
      maximum amount permitted under applicable law; and if, from any circumstance,
      Lender shall have received anything of value deemed interest by applicable
      law, in excess of the maximum lawful amount, an amount equal to any excess
      of interest shall be applied to the reduction of the principal amount of
      Liabilities to Lender and not to the payment of interest, or if such excess
      interest exceeds the unpaid balance of the principal amount of Liabilities
      to Lender, such excess shall be refunded to Borrower.  All interest
      paid or agreed to be paid to Lender, to the extent permitted by applicable
      law, shall be amortized, prorated, allocated and spread throughout the full
      term of this Agreement until payment in full of all principal obligations
      owing by Borrowers so that interest for such full term shall not exceed
      the maximum amount permitted by applicable law.  All indemnification
      and reimbursement obligations of Borrowers under the Documents shall survive
      the termination of this Agreement, the indefeasible full payment and satisfaction
      of all of the Liabilities relating to the Loans and Approvals and the release
      of the Collateral.

|- 20 -***(REDACTED) - Confidential Treatment Requested
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|
|



|SECTION 2.8.        TERMS AND TERMINATION. 
      The term of this Agreement, unless sooner terminated as provided in this
      Agreement, shall be until the Termination Date; provided, however,
      that Lender may terminate this Agreement (i) immediately by written notice
      to Borrowers in whole or only with respect to certain Inventory if any Borrower
      shall lose or relinquish any right to sell or deal in any product line of
      Inventory, or if Borrowers fail to pay any of the Objected Loans due to
      an objection to the terms of any Transaction Statement and Lender determines
      on a commercially reasonable basis that the Transaction Statement does not
      contain a bona fide error, or (ii) at any time by at least 60 days prior
      written notice to Borrowers, and Borrower 1 may terminate this Agreement
      at any time by at least 60 days prior written notice to Lender.  Upon
      termination of this Agreement, all Liabilities to Lender (or, if this Agreement
      is terminated only with respect to certain Inventory, Liabilities to Lender
      relative to such Inventory) shall become immediately due and payable without
      notice or demand.  Upon any termination, Borrowers shall remain liable
      to Lender for all Liabilities to Lender, including without limitation interest,
      fees, charges and expenses arising prior to or after the effective date
      of termination, and all of Lender's rights and remedies and its security
      interest shall continue until all Liabilities to Lender are paid and all
      obligations of Borrowers are performed in full (other than contingent indemnification
      obligations), at which time Lender will release its liens and security interests
      in the Collateral.  No provision of this Agreement shall be construed
      to obligate Lender to make any Loans at any time any Event of Default exists
      or will exist with the giving of notice, the passage of time, or both.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|SECTION 2.9.        (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(A)          (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(B)           (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(C)           (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(D)          (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(E)           (REDACTED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|ARTICLE THREE.  COLLATERAL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|SECTION 3.1.        SECURITY INTERESTS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(A)          Borrower 1. 
      To secure payment of the Liabilities, Borrower 1 hereby irrevocably pledges,
      assigns, transfers, conveys and sets over to the Lender and hereby grants
      to the Lender a security interest in and to the Collateral owned by it,
      howsoever arising, wherever located and whether now owned or existing or
      hereafter existing or acquired.  Lender shall at all times have a first
      and paramount security interest in and to the First Collateral.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(B)           Borrower
      2.  To secure payment of the Liabilities, Borrower 2 hereby irrevocably
      pledges, assigns, transfers, conveys and sets over to the Lender and hereby
      grants to the Lender a security interest in and to the Collateral owned
      by it, howsoever arising, wherever located and whether now owned or existing
      or hereafter existing or acquired.  Lender shall at all times have
      a first and paramount security interest in and to the First Collateral.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|SECTION 3.2.        PERFECTION, AUTHORIZATION
      AND FILING REQUIREMENTS.  Each Borrower shall perform any and all
      acts reasonably requested by the Lender to establish, maintain and continue
      the Lender's security interests and liens in the Collateral, including but
      not limited to, executing financing statements and such other instruments
      and documents when and as reasonably requested by the Lender. Each Borrower
      hereby authorizes Lender through any of Lenders employees, agents
      or attorneys to file any and all financing statements, including, without
      limitation, any continuations, transfers or amendments thereof required
      to perfect Lenders security interest and liens in the Collateral
      under the UCC without authentication or execution by Borrower.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

|- 21 -***(REDACTED) - Confidential Treatment Requested
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|



|SECTION 3.3.        COLLECTION OF
      ACCOUNTS RECEIVABLE.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(A)        Borrower 1 shall establish
      lock box accounts (Borrower 1 Lock Box Accounts) with such
      Collecting Banks acceptable to Lender to which all Account Debtors of Borrower
      1 shall directly remit all payments on Accounts Receivable of Borrower 1
      and in which Borrower 1 will immediately deposit, in kind, all cash and
      other payments made for Inventory and all other proceeds of Collateral;
      provided, however, that (i) as of the Closing Date and until
      such time that availability under the Borrowing Base 1 is less than $5,000,000.00
      and/or any Event of Default exists or will exist with the giving of notice,
      the passage of time, or both, the Vendor Accounts Receivable of Borrower
      1 may be paid directly to Borrower 1 and deposited by Borrower 1 directly
      into Borrower 1s operating accounts; and (ii) if at any time or from
      time to time availability under the Borrowing Base 1 is less than $5,000,000.00
      and/or any Event of Default exists or will exist with the giving of notice,
      the passage of time, or both, then the Vendor Accounts Receivable of Borrower
      1 shall thereafter  be remitted by the Account Debtors of Borrower
      1 directly into the Borrower 1 Lock Box Accounts and if payments of the
      Vendor Accounts Receivable of Borrower 1 are received directly by Borrower
      1, deposited, in kind, by Borrower 1 into the Borrower 1 Lock Box Accounts. 
      The Collecting Banks shall acknowledge and agree, in a manner satisfactory
      to Lender, that: all payments made to Borrower 1 Lock Box Accounts are the
      sole and exclusive property of Lender; they have no right to setoff against
      Borrower 1 Lock Box Accounts; and they will transfer (a) by wire transfer
      of immediately available funds (b) by acceptance of an ACH Debit or (c)
      by any other method, immediately available funds in a manner satisfactory
      to Lender, funds deposited into Borrower 1 Lock Box Accounts (collectively,
      the Borrower 1 Collection Accounts) to Borrower 1 if clause
      (I) below applies and to Lender if clause (II) below applies on a daily
      basis in such bank and account as Borrower 1, if clause (I) below applies,
      and Lender, if clause (II) below applies, shall designate or, in the case
      of an ACH Debit, as presented for acceptance.  All payments made to
      the Borrower 1 Collection Accounts or otherwise received by the Collecting
      Banks or Lender, whether on the Accounts Receivable of Borrower 1 or as
      proceeds of other Collateral or otherwise, shall be under the sole dominion
      and control of (I) Borrower 1, if both (x) availability under the Borrowing
      Base 1 is greater than or equal to $5,000,000.00 and (y) no Event of Default
      exists or will exist with the giving of notice, the passage of time, or
      both; or (II) Lender, if availability under the Borrowing Base 1 is less
      than $5,000,000.00 and/or any Event of Default exists or will exist with
      the giving of notice, the passage of time, or both.  Following any
      time or from time to time clause (II) applies and until such times Lender
      shall thereafter otherwise direct the Collecting Banks in writing, all payments
      made to the Borrower 1 Collection Accounts or otherwise received by the
      Collecting Banks or Lender, whether on the Accounts Receivable of Borrower
      1 or as proceeds of other Collateral or otherwise, will be applied on account
      of Liabilities as Lender shall determine in its commercially reasonable
      discretion as provided herein.  Borrower 1 and its Affiliates shall
      receive, as trustee for Lender, any monies, checks, notes, drafts or any
      other payments relating to and/or proceeds of Accounts Receivable of Borrower
      1or other Collateral which come into the possession or under the control
      of Borrower 1 or Affiliates and immediately remit, or cause to be remitted,
      the same in kind to Lender at Lenders office set forth above. 
      Borrowers shall pay Lender any and all fees, costs and expense which Lender
      incurs in connection with Borrower 1 Collection Accounts and with collecting
      any check or item of payment received and/or delivered to any Collecting
      Bank or Lender on account of Liabilities to Lender.  Borrowers shall
      reimburse Lender for (1) any loss, cost or damages resulting from claims
      asserted by the Collecting Banks in connection with the Borrower 1 Collection
      Accounts or any returned or uncollected checks or other items received by
      the Collecting Banks (unless such loss is attributable to Lenders
      gross negligence or willful misconduct) and (2) any amount paid to any Collecting
      Bank arising out of Lenders indemnification of such Collecting Banks
      relating to a Borrower 1 Collection Account.  Borrower 1 shall (A)
      enter into and shall cause all necessary Persons to enter agreements in
      form and manner satisfactory to Lender to evidence the requirements of this
      Section 3.3 (A) (individually, a Borrower 1 Lock Box Agreement
      and collectively, the Borrower 1 Lock Box Agreements); and
      (B) commencing on the (i) Closing Date with respect to all Account Debtors
      of Borrower 1 other than with respect to Account Debtors of Borrower 1 owing
      Vendor Accounts Receivable to Borrower 1; and (ii) date that clause (ii)
      of the proviso in the first sentence of this Section 3.3(A) applies with
      respect to Account Debtors of Borrower 1 owing Vendor Accounts Receivable
      to Borrower 1, direct that payments of such Accounts Receivable of Borrower
      1 be remitted directly to the Borrower 1 Lock Box Accounts.

|- 22 -***(REDACTED) - Confidential Treatment Requested
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B)             
      Borrower 2 shall establish lock box accounts (Borrower 2 Lock Box
      Accounts) with such Collecting Banks acceptable to Lender to which
      all Account Debtors of Borrower 2 shall directly remit all payments on Accounts
      Receivable of Borrower 2 and in which Borrower 2 will immediately deposit,
      in kind, all cash and other payments made for Inventory and all other proceeds
      of Collateral.  The Collecting Banks shall acknowledge and agree, in
      a manner satisfactory to Lender, that: all payments made to Borrower 2 Lock
      Box Accounts are the sole and exclusive property of Lender; they have no
      right to setoff against Borrower 2 Lock Box Accounts; and they will transfer
      (a) by wire transfer of immediately available funds (b) by acceptance of
      an ACH Debit or (c) by any other method, immediately available funds in
      a manner satisfactory to Lender, funds deposited into Borrower 2 Lock Box
      Accounts (collectively, the Borrower 2 Collection Accounts)
      to Lender on a daily basis in such bank and account as Lender shall designate
      or, in the case of an ACH Debit, as presented for acceptance.  All
      payments made to the Borrower 2 Collection Accounts or otherwise received
      by the Collecting Banks or Lender, whether on the Accounts Receivable of
      Borrower 2 or as proceeds of other Collateral or otherwise, shall be under
      the sole dominion and control of Lender.  All payments made to the
      Borrower 2 Collection Accounts or otherwise received by the Collecting Banks
      or Lender, whether on the Accounts Receivable of Borrower 2 or as proceeds
      of other Collateral or otherwise, will be applied on account of Liabilities
      as Lender shall determine in its commercially reasonable discretion as provided
      herein.  Borrower 2 and its Affiliates shall receive, as trustee for
      Lender, any monies, checks, notes, drafts or any other payments relating
      to and/or proceeds of Accounts Receivable of Borrower 2 or other Collateral
      which come into the possession or under the control of Borrower 2 or Affiliates
      and immediately remit, or cause to be remitted, the same in kind to Lender
      at Lenders office set forth above.  Borrowers shall pay Lender
      any and all fees, costs and expense which Lender incurs in connection with
      Borrower 2 Collection Accounts and with collecting any check or item of
      payment received and/or delivered to any Collecting Bank or Lender on account
      of Liabilities to Lender.  Borrowers shall reimburse Lender for (1)
      any loss, cost or damages resulting from claims asserted by the Collecting
      Banks in connection with the Borrower 2 Collection Accounts or any returned
      or uncollected checks or other items received by the Collecting Banks (unless
      such loss is attributable to Lenders gross negligence or willful
      misconduct) and (2) any amount paid to any Collecting Bank arising out of
      Lenders indemnification of such Collecting Banks relating to a Borrower
      2 Collection Account.  Borrower 2 shall (A) enter into and shall cause
      all necessary Persons to enter agreements in form and manner satisfactory
      to Lender to evidence the requirements of this Section 3.3 (B) (individually,
      a Borrower 2 Lock Box Agreement and collectively, the Borrower
      2 Lock Box Agreements); and (B) direct that payments of such Accounts
      Receivable of Borrower 2 be remitted directly to the Borrower 2 Lock Box
      Accounts.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(C)       Unless otherwise provided herein
      and subject to the provisions of Section 3.3(A) of this Agreement, Borrowers
      may collect through the Lock Box Account at its own expense the Accounts
      Receivable in the ordinary course of business; provided, however,
      that Borrowers authorization to collect through the Lock Box Accounts
      the Accounts Receivable is subject to the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

| |  | (i) | The Lender, at any
      time after the occurrence and during the continuance of an Event of Default
      or any event that with the giving of notice, the passage of time, or both,
      will give rise to an Event of Default, may, in its commercially reasonable
      discretion, notify any or all of the Account Debtors that (1) the Accounts
      Receivable have been assigned to the Lender; and/or (2) that all further
      payments on the Accounts Receivable should be paid solely to the Lender. 
      When requested by the Lender after the occurrence and during the continuance
      of an Event of Default or any event that with the giving of notice, the
      passage of time, or both, will give rise to an Event of Default, Borrowers
      at their expense will notify or cause to be notified any or all Account
      Debtors to pay directly to the Lender any sum or sums then due or to become
      due on the Accounts Receivable or any part thereof and all bills and statements
      thereafter sent by Borrower to such Account Debtors shall state that the
      same have been assigned to the Lender and are payable solely to the Lender;
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- 23 -***(REDACTED) - Confidential Treatment Requested
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|



| |  | (ii)  | In the event an Account
      Debtor is notified under Subsection 3.3(C)(i) of this Agreement or one or
      more Events of Default have occurred and are continuing or any event occurs
      that with the giving of notice, the passage of time, or both, will give
      rise to an Event of Default under the terms of this Agreement, the Lender
      shall have and succeed to all rights, remedies, securities and liens of
      each Borrower in respect to such Accounts Receivable or other Collateral,
      including, but not limited to, the right of stoppage in transit of any merchandise,
      guarantees or other contracts or suretyship with respect to any such merchandise,
      warranties, unpaid sellers liens, statutory liens, artisans
      liens, or the right to other collateral security held by or to which any
      Borrower is entitled for the payment of any such merchandise, and shall
      have the right to enforce the same in its name or to direct the enforcement
      thereof by each Borrower for the benefit of the Lender, and each Borrower
      shall, at the request of the Lender, deliver to the Lender a separate written
      assignment of any of the same.  The Lender, however,  shall not
      incur any obligation or liability of any Borrower to any Account Debtor,
      including, but not limited to, obligations or liabilities pursuant to any
      contract, agreement, warranty, guarantee, judicial decree or jury award. 
      The Lender, in such an event, is also hereby irrevocably authorized to receive,
      open and dispose of all mail  addressed to any Borrower, to notify
      the Post Office authorities to change the address for delivery of any Borrowers
      mail to an address designated by the Lender, to endorse each Borrowers
      name on all notes, checks, drafts, bills of exchange, money orders, commercial
      paper of any kind whatsoever, and any other instruments or documents received
      howsoever in payment of the Accounts Receivable, or any part thereof, and
      the Lender or any officer or employee thereof is hereby irrevocably constituted
      and appointed agent and attorney-in-fact for each Borrower for the foregoing
      purpose;
| |  | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | (iii) | Borrowers shall not collect,
      compromise or accept any sum in full payment or satisfaction of any of the
      Accounts Receivable in an amount greater than $50,000.00 for materially
      less than the amount due without the express written consent of the Lender,
      except in the ordinary course of business.  The consent of Lender required
      in this clause shall not be unreasonably withheld, conditioned or delayed;
      and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | (iv)  | The Lender may directly request
      the Account Debtors for written confirmation of the Accounts Receivable
      at any time whether before or after the occurrence of an Event of Default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

|(D)     All collections of Accounts Receivable through
      the Lock Box Accounts shall be credited against the Lines of Credit 
      and the Liabilities one (1) Business Day after the date of receipt by Lender
      of immediately available funds of such collections.  Any collections
      of Accounts Receivable through the Lock Box Accounts available after such
      applications shall be paid or disbursed in accordance with the written direction
      of Borrower 1 to Lender.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|SECTION 3.4.        USE OF COLLATERAL. 
      Borrowers shall at all times keep the Collateral in good condition and repair
      and free and clear of all unpaid charges (including, but not limited to,
      taxes), liens and encumbrances, other than Permitted Liens, and shall pay
      or cause to be paid all obligations as they come due, including but not
      limited to, mortgage payments, real estate taxes, assessments and rent due
      on the premises where the Collateral is or may be located, except for charges,
      liens, encumbrances and obligations being contested in good faith by Borrowers
      and for which adequate reserves have been established.  Borrowers agree
      that (except as provided in the immediately preceding sentence) in the event
      Borrowers fail to pay such obligations, the Lender may, at its sole and
      arbitrary discretion, pay such obligations for the account of Borrowers.
      The Lender may, in its sole discretion, discharge taxes, liens or security
      interests or other encumbrances at any time levied or placed on the Collateral,
      other than Permitted Liens, and may, in its sole and arbitrary discretion,
      pay for the main­tenance and preser­vation of the Collateral. 
      Any payments made by the Lender pursuant to this Section shall be repayable
      to the Lender by Borrowers immedi­ately upon the Lender's demand therefor,
      with interest at a rate equal to the highest interest rate described in
      this Agreement in effect from time to time during the period from and including
      the date funds are so expended by the Lender to the date of repayment, and
      any such amounts due and owing the Lender shall be an additional obligation
      of Borrower to the Lender secured hereunder.

|- 24 -***(REDACTED) - Confidential Treatment Requested
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|
|



|SECTION 3.5.        THIRD PARTY WAIVERS. 
      Borrowers shall deliver to Lender landlord waivers, bailee waivers, warehouse
      waivers or other third party waivers required by Lender (individually, a
      Third Party Waiver and collectively, the Third Party
      Waivers) executed by the lessors, mortgagors, bailors, warehouse
      owners and/or operators and consignors of or at the Collateral Locations
      used by Borrowers, all in form and manner satisfactory to Lender.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|SECTION 3.6.        CROSS COLLATERALIZATION. 
      Each Borrower acknowledges and agrees that (A) the Collateral secures all
      of the Liabilities, including, but not limited to, the Loans and (B) Lender
      shall not release any lien on the Collateral unless and until all the Liabilities
      (whether arising pursuant to this Agreement or otherwise) other than contingent
      indemnification obligations under this Agreement are paid in full.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|ARTICLE FOUR.  REPRESENTATIONS
        AND WARRANTIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|SECTION 4.1.        BORROWERS. 
      Each Borrower represents and warrants to the Lender that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(A)              
      Organization, Etc.Borrower 1 is duly organized and validly existing
      under the laws of the State of Washington and is duly qualified and in good
      standing or has applied for qualification as a foreign corporation authorized
      to do business in each jurisdiction where, because of the nature of its
      activities or properties, such qualification is required, except where the
      failure to register could not reasonably be expected to have a material
      adverse effect on Borrower 1.  Borrower 2 is duly organized and validly
      existing under the laws of the State of Illinois and is duly qualified and
      in good standing or has applied for qualification as a foreign corporation
      authorized to do business in each jurisdiction where, because of the nature
      of its activities or properties, such qualification is required, except
      where the failure to register could not reasonably be expected to have a
      material adverse effect on Borrower 2.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(B)           Authorization:
      No Conflict.  The execution and delivery of the Documents are all
      within the corporate powers of it, have been duly authorized by all necessary
      action, have, or by the time of their execution and delivery shall have,
      received all necessary governmental or regulatory approval (if any shall
      be required), and do not and will not contravene or conflict with any provision
      of (i) law, rule, regulation or ordinance, the violation of which could
      reasonably be expected to have a material adverse effect on any Borrower,
      (ii) the articles of incorporation or by-laws of it; or (iii) any agreement
      binding upon it or any of their properties, as the case may be, the violation
      of which could reasonably be expected to have a material adverse effect
      on any Borrower.                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(C)           Validity
      and Binding Nature.  The Documents executed by it are the legal,
      valid and binding obligations of it, enforceable against it, in accordance
      with their respective terms, except as enforceability may be limited by
      bankruptcy, insolvency, reorgani­zation and other similar laws of general
      application affecting the rights and remedies of creditors and except as
      the availability of specific performance or injunctive relief is subject
      to the discre­tion of the court before which any proceeding therefor
      may be brought.                                                                                                                                                                                                                                                                                                                                                                                                                                               

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|



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(D)          Title to Assets. 
      Except as set forth in Section 4.1(E) of this Agreement, it has good and
      marketable title to all assets owned by it, including, but not limited to,
      the Collateral owned by it, subject to no (i) liens, encumbrances, security
      interests, or mortgages; (ii) zoning, building, fire, health or environmental
      code violations of any governmental authority, the violation of which could
      reasonably be expected to have a material adverse effect on any Borrower;
      and (iii) violations of any covenants, conditions or restrictions of record,
      the violation of which could reasonably be expected to have a material adverse
      effect on Borrowers on a consolidated basis.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(E)           Liens. 
      None of its assets are subject to any lien, encumbrance or security interest,
      except for Permitted Liens.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(F)           Financial
      Statements.  Its financial statements which have been previously
      delivered to Lender have been prepared on a basis and in conformity with
      generally accepted accounting principles consistently applied, are true
      and correct and fairly present the consolidated financial condition of it
      as at the dates of such financial statements and the results of its operations
      for the periods then ended, and since the date of the latest financial statement
      delivered to Lender there has been no material adverse change in the financial
      condition or operations.                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(G)           Litigation
      and Contingent Liabilities.  Except as set forth on Exhibit
      4.1(G) attached hereto, no litigation or arbitration, administrative
      or governmental proceedings are pending or threatened against it which would,
      if adversely determined, materially and adversely affect its financial condition
      or continued operations.                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(H)          No Violations
      of Laws.  It (i) is not in material violation of any law, ordinance,
      rule, regulation, judgment, decree or order of any federal, state or local
      governmental body or court; and (ii) has obtained all required permits,
      certificates, licenses, approvals and other authorizations from governmental
      agencies and entities (whether federal, state or local) necessary to carry
      on its operation, except where the failure to do so could not reasonably
      be expected to have a material adverse effect on Borrowers on a consolidated
      basis.                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(I)            Burdensome
      Obligations.  Except (i) for indentures, agreements, leases, contracts,
      deeds or other instruments entered into in the ordinary course of business
      that are not otherwise precluded or prohibited pursuant to the Documents;
      and (ii) as set forth on Exhibit 4.1(I) attached hereto, it is not
      a party to any indenture, agreement, lease, contract, deed or other instrument,
      or subject to any par­tnership restrictions or has any knowledge of
      anything which would materially and adversely affect or impair the business,
      assets, operations, properties, or condition, financial or other­wise,
      of Borrowers on a consolidated basis.                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(J)            Taxes. 
      Except as set forth on Exhibit 1.1-7 attached hereto, all federal,
      state and local tax returns required to be filed by it have been filed with
      the appropriate governmental agencies and all taxes due and payable by it
      have been timely paid, except for immaterial for items for which adequate
      reserve has been made.                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(K)          No Default
      or Event of Default.  No event or condition exists under any material
      agreement, instrument or document to which it is a party or may be subject,
      or by which it or any of its properties are bound, which constitutes a default
      or an event of default thereunder, or will, with the giving of notice, passage
      of time, or both, would constitute a default or event of default thereunder
      where such default could reasonably be expected to have a material adverse
      effect on any Borrower.                                                                                                                                                                                                 

|- 26 -***(REDACTED) - Confidential Treatment Requested
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|



|(L)           Employee
      Benefit Plans.  Each employee benefit plan, if any, (as defined
      in Section 3(3) of the Employee Retirement Income Security Act of 1974,
      as amended from time to time) maintained by it complies in all material
      respects with all applicable requirements of law and regulations and all
      payments and contributions required to be made with respect to such plans
      have been timely made.                                                                                                                                                                                                                                                                                                                                                                               
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(M)         Federal Laws and
      Regulations.  It is not (i) an "investment company" or a company
      "controlled", whether directly or indirectly, by an "investment company",
      within the meaning of the Investment Company Act of 1940, as amended; (ii)
      a "holding company", or a "subsidiary company" of a "holding company", or
      an "affiliate" of a "holding company" or of a "subsidiary company" of a
      "holding company", within the meaning of the Public Utility Holding Company
      Act of 1935, as amended; or (iii) engaged principally, or as one of its
      important activities, in the business of extending credit for the purpose
      of purchasing or carrying margin stock (within the meaning of Regulation
      U of the Board of Governors of the Federal Reserve System).
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(N)          Fiscal Year. 
      The fiscal year of it ends on December 31 of each year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(O)          Officers of
      It. As of the Closing Date, each Person listed below holds the respective
      office or offices in it set forth next to such Person's name:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

|Borrower 1 | Name             | Office                                                  
|---------- | ---------------- | --------------------------------------------------------
|           |                  |                                                         
|           | Firoz Lalji      | Chairman and Chief Executive Officer                    
|           |                  |                                                         
|           | Scott Koerner    | Executive Vice-President                                
|           |                  |                                                         
|           | Ronald McFadden  | Senior Vice-President and 
      Chief Financial Officer
|           |                  |                                                         
|Borrower 2 | Name             | Office                                                  
|           |                  |                                                         
|           | Firoz Lalji      | Chairman                                                
|           |                  |                                                         
|           | Christina Corley | President and Chief Executive Officer                   
|           |                  |                                                         
|           | Jack Mellor      | Chief Financial Officer                                 
|           |                  |                                                         
|           | Ronald McFadden  | Secretary and Treasurer                                 

|(P)           Genuineness
      of Accounts Receivable.  All the Accounts Receivable of it are
      genuine and were incurred in the ordinary course of business and are not
      in default.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                               
|(Q)          Collateral
      Locations.  All of the tangible Collateral is located at the Collateral
      Locations.                                                                         

|- 27 -***(REDACTED) - Confidential Treatment Requested
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|
|



|(R)           Subordinated
      Debt.  The agreements, documents and instruments attached to the
      Subordination Agreements being executed and delivered contemporaneously
      with the execution of this Agreement are true and correct copies of all
      of the documentation evidencing the Subordinated Debt in existence as of
      the date of this Agreement and represent the complete agreement of Borrowers
      to make payments with respect to the Subordinated Debt, and there have been
      no changes, modifications, alterations or amendments to such agreements,
      documents and instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(S)           CPCS
      Stock Purchase Agreement.  The CPCS Stock Purchase Agreement attached
      hereto as an exhibit is a true and correct copy of the CPCS Stock Purchase
      Agreement and represents the complete agreement of Borrower 1 to purchase
      all classes of the stock of Borrower 2 and there have been no changes, modifications,
      alterations or amendments to the CPCS Stock Purchase Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|ARTICLE FIVE. 
        COVENANTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|SECTION 5.1.        BORROWERS. 
      Until all the Liabilities are paid in full (other than contingent indemnification
      obligations), each Borrower covenants and agrees that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(A)        
        Financial Statements and Certificates.  It will furnish to
        the Lender:
      (i)           within
        90 days after the close of each fiscal year of it, a copy of the annual
        audited report of it consisting of at least a balance sheet, statement
        of operating results and retained earnings, statement of cash flows and
        notes to financial statements, profit and loss statement and statement
        of changes in financial position of it prepared on a consolidating and
        consolidated basis and in conformity with generally accepted accounting
        principles, duly prepared by certified public accountants of recognized
        standing selected by it and approved by the Lender, together with such
        certificate from such accountants as may be required under generally accepted
        accounting practices and principles and the rules and regulations of the
        SEC;
      (ii)          within
        (a) 30 days after the end of each month other than the month ending at
        the end of its fiscal year, and (b) 60 days after the end of the month
        ending at the end of its fiscal year, a copy of an unaudited financial
        statement of it prepared in the same manner as the report referred to
        in clause (i) above (including, but not limited to, prepared on a consolidating
        and consolidated basis and in conformity with generally accepted accounting
        principles) with the exception that the monthly reports other than monthly
        reports dated as of the end of any fiscal quarter of it do not need to
        take into account all adjustments necessary to be in accordance with generally
        accepted accounting principles, signed by the chief financial officer
        or controller or treasurer of it and consisting of at least a balance
        sheet as at the close of such month and statements of earnings and cash
        flow statement  for such month and for the period from the beginning
        of such fiscal year to the close of such month;
      (iii)         within
        10 days after the end of each month, (1) a statement showing age and reconciliation
        of its Accounts Receivable and accounts payable for the preceding month
        and a status of its Inventory showing location, components and value,
        in such form and detail as Lender may reasonably request; and (2) documentation
        to support the Accounts Receivable statement set forth in clause (iii)(1)
        above, including, but not limited to, sales reports, cash receipts reports
        and credit and debit journals; and (3) a certificate signed by the President
        or chief financial officer or controller or treasurer of it providing
        that the items being provided to Lender pursuant to clauses (iii)(1) and
        (2) above are true and correct in all material respects;

|- 28 -***(REDACTED) - Confidential Treatment Requested
|------------------------------------------------------

|
|



|(iv)         within
        30 days after the end of each fiscal quarter of it, a certificate, in
        form and manner satisfactory to Lender, signed by the president or chief
        financial officer or controller or treasurer of it providing that (a)
        it is in compliance with all covenants set forth in the Documents as of
        the end of such fiscal quarter, including, but not limited to, any and
        all of the financial covenants contained in the Documents; and (b) no
        Event of Default has occurred, or may occur with the giving of notice
        or passage of time, or both;
      (v)         
        within 30 days after the end of each month, copies of all of its bank
        statements and reconciliations thereof, including, but not limited to,
        Lock Box Accounts statements received during such month;
      (vi)         by
        Noon, Chicago time, of the  first Business Day of each week, computed
        as of the close of business for the immediately preceding Business Day,
        (a) each Borrowers Accounts Receivable aging summary; and (b) sales
        report and cash receipt report setting forth each Borrowers sales
        and cash receipts from the immediately preceding weekly sales and cash
        receipt reports provided to Lender; and (c) computed as of the close of
        business for the immediately preceding Business Day (a Weekly Borrowing
        Base Certificate), a completed Borrowing Base Certificate for Borrower
        2, which shall be executed by the President or the chief financial officer
        or controller or treasurer of any Borrower;
      (vii)      
        no later than the 10th Business Day of each month, computed
        as of the close of business on the last Business Day of the preceding
        month (a Monthly Borrowing Base Certificate), and with each
        request for a Working Capital Loan hereunder computed as of the close
        of business on the immediately preceding Business Day, and at such times
        as Lender may request computed as of the close of business on the immediately
        preceding Business Day (each such certificate required on each Loan or
        at Lenders request shall be referred to as a Daily Borrowing
        Base Certificate), a completed Borrowing Base Certificate for each
        Borrower, which shall be executed by the President or the chief financial
        officer or controller or treasurer of (a) Borrower 1 with respect to Line
        of Credit 1; and (b) any Borrower with respect to Line of Credit 2;
      (viii)     
        within 45 days after the end of each of Borrowers fiscal years,
        a copy of its Business Plan for the fiscal year immediately following
        such ending fiscal year;
      (ix)         schedules
        of Accounts Receivable in form and manner acceptable to Lender (which
        shall include current addresses and telephone numbers of Account Debtors)
        as often as requested by Lender, but not less frequently than semi-annually;
      (x)        
        at Lender's request, Borrowers shall also furnish Lender with copies (or,
        at Lender's request after an Event of Default, originals) of all orders,
        invoices, and similar agreements and documents, and all original shipping
        instructions, delivery receipts, bills of lading, and other evidence of
        delivery, for Inventory, the sale or disposition of which has resulted
        in Accounts Receivable;
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- 29 -***(REDACTED) - Confidential Treatment Requested
|------------------------------------------------------

|
|



|(xi)        
        the originals of all instruments, chattel paper, security agreements,
        guarantees and other documents and property evidencing or securing any
        Accounts Receivable, immediately upon receipt thereof and in the same
        form as received, with all necessary endorsements to enable Lender to
        enforce the same;
      (xii)      
        copies of all federal and state income tax returns of it, including, but
        not limited to, requests for extensions of such income tax returns, when
        and as filed;
      (xiii)       copies
        of any and all reports, examinations, notices, warnings and citations
        issued by any governmental or quasi-governmental (whether federal, state
        or local), unit, agency, body or entity with respect to it; and
      (xiv)     
        such other information as the Lender from time to time reasonably requests. 
        Borrower's failure to deliver or execute and deliver any of the items
        listed in this Section shall not affect or limit Lender's security interest
        in the Collateral.
      (B)           Books,
        Records and Inspections.  It will (i) maintain complete and accurate
        books and records; (ii) permit reasonable access by the Lender to the
        books and records of it; (iii) make entries on its books and records,
        in form and manner satisfactory to Lender, disclosing Lenders security
        interest in the Collateral and shall keep a separate account on its books
        of all collections received thereon; and (iv) permit the Lender, upon
        reasonable notice, to inspect the properties, whether real or personal,
        and operations of it.  Without limitation of the foregoing, it acknowledges
        and agrees that Lender shall conduct at least quarterly field audits of
        it each year.
      (C)           Insurance. 
        It will maintain such insurance as may be required by law and such other
        insurance to the extent and against such hazards and liabilities as is
        customarily maintained by companies similarly situated.  All property
        insurance policies with respect to the Collateral shall contain loss payable
        clauses in form and substance reasonably satisfactory to the Lender, naming
        the Lender as a loss payee as its interest may appear, and providing that
        such policies and loss payable clauses may not be canceled, amended or
        terminated unless at least thirty (30) days prior written notice thereof
        has been given to the Lender.  All insurance proceeds received by
        the Lender may be retained by the Lender, in its sole discretion, for
        application to the payment of any of the principal or interest on the
        Liabilities then due and owing the Lender by it as the Lender may determine;
        provided, however, that so long as (i) no Event of Default
        shall then exist or will exist with the giving of notice, the passage
        of time, or both, and no Event of Default shall exist or will exist with
        the giving of notice, the passage of time, or both, at any time during
        the period of any acquisition of replacement property; and (ii) the Revolving
        Loans plus outstanding Approvals shall not then or at any time or from
        time to time during the period of any acquisition of replacement property
        do not exceed the advance limita­tions described in Sections 2.1(A)
        and (B) of this Agreement, upon Borrowers written request to Lender
        made on or before the disbursement of such insurance proceeds to Lender,
        such insurance proceeds may be used to replace the property with respect
        to which such insurance proceeds were paid and any such insurance proceeds
        shall be disbursed directly to Vendors of the Inventory being replaced.
      (D)         
        Taxes and Liabilities.  It will pay when due all taxes, assessments
        and other liabilities except as contested in good faith and by appropriate
        proceedings and for which adequate reserves have been established.
      (E)           Restriction
        on Dividends.  Except for the declaration and payment of cash
        dividends from Borrower 2 payable solely to Borrower 1 from time to time,
        it will not declare or pay, or authorize a declaration or payment of,
        any dividend, whether a cash dividend or stock dividend, or make any distribution
        in cash, property or securities in respect of, any class of its capital
        stock; provided, however, that so long as no Event of Default
        has occurred and is continuing, or will occur with the giving of notice,
        the passage of time, or both, it may take those actions allowed pursuant
        to the proviso set forth in Section 5.1(K) of this Agreement.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- 30 -***(REDACTED) - Confidential Treatment Requested
|------------------------------------------------------

|
|



|(F)           Indebtedness. 
        It will not incur or permit to exist any indebtedness or liability for
        borrowed money or for the deferred purchase price of any property or any
        services, except for Permitted Indebtedness.
      (G)           Liens. 
        It will not create or permit to exist any mortgage, pledge, title retention
        lien, or other lien, encum­brance or security interest with respect
        to any assets now owned or hereafter acquired and owned, except for Permitted
        Liens.
      (H)          Guaranties,
        Loans or Advances.  Except for Permitted Loans, it will not become
        or be a guarantor or surety of, or otherwise become or be responsible
        in any manner with respect to any undertaking of any other Person, or
        make or permit to exist any loans or advances to any other Person, except
        for the endorsement, in the ordinary course of collection, of instruments
        payable to it or to its order.
      (I)            Mergers,
        Consolidations and Sales.  It will not be a party to any merger
        or consolidation with, or purchase or otherwise acquire all or substantially
        all of the assets or stock of any class of, or any partnership or joint
        venture interest in, any other Person, or sell, transfer, convey or lease
        all or any substantial part of its assets, or sell or assign, with or
        without recourse, any Accounts Receivable, except with the prior written
        consent of the Lender which consent shall not be unreasonably withheld,
        delayed or conditioned.
      (J)           
        Self-Dealing.  Except for Permitted Loans, the lease and sale
        of property from time to time from Borrower 1 to Borrower 2 and as permitted
        pursuant to the proviso in Section 5.1(K) of this Agreement, it shall
        not purchase, acquire or lease any property from, or sell, transfer or
        lease any property to (a) any Affiliate, (b) any officer, director or
        shareholder of it or any Affiliate, (c) any guarantor of any of the Liabilities
        or (d) any member of the immediate family of any of the foregoing, except
        on terms comparable to the terms which would prevail in an arms-length
        transaction between unaffiliated third parties.
      (K)          Stock. 
        It will neither purchase, retire, redeem or otherwise acquire any shares
        nor issue any additional shares of any class of capital stock of it; provided,
        however, that it may (i) issue additional shares of any class of
        capital stock of it; (ii) repurchase shares of capital stock of it from
        officers, directors, employees or consultants pursuant to stock repurchase
        agreements entered into by Borrower in the ordinary course of business;
        (iii) retire shares of capital stock of it in connection with a reverse
        stock split; and (iv) purchase shares of capital stock of it in connection
        with an open market repurchase or exchange of Borrowers publicly
        traded equity securities,  so long as any of the foregoing described
        in this proviso shall not cause an Event of Default to occur either immediately
        or with the giving of notice, the passage of time, or both.
      (L)           Violation
        of Law.  It will not materially violate any law, statute, ordinance,
        rule, regulation, judgment, decree, order, writ or injunction of any federal,
        state or local authority, court, agency, bureau, board, commission, department
        or governmental body where such violation could be expected to have a
        material adverse effect on any Borrower.
      (M)         Unconditional Purchase
        Obligations.  It will neither enter into or be a party to any
        contract for the purchase of materials, supplies or other property or
        services if such contract requires that payment be made by it regardless
        of whether or not delivery is ever made of such materials, supplies or
        other property or services.
      (N)          Maintenance
        of Business.  It will preserve its corporate existence in the
        jurisdiction of establishment as set forth in Section 4.1(A) of this Agreement
        and it will not operate in any business other than (i) a business substantially
        the same as the business of it as in effect on the date of this Agreement;
        or (ii) as set forth on Exhibit 5.1 (N) attached hereto.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|- 31-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

|
|
|



|(O)          Employee
        Benefit Plans.  It will (i) maintain each employee benefit plan
        as to which it may have any liability in substantial compliance with all
        applicable requirements of law and regulations;  (ii) make all payments
        and contributions required to be made pursuant to such plans in a timely
        manner; and (iii) neither establish any new employee benefit plan (except
        for a new stock option plan to be submitted for approval by Borrowers
        shareholders in 2003), agree or contribute to any multi-employer plan
        nor amend any existing employee pension benefit plan in a manner which
        would materially increase its obligation to contribute to such plan.
      (P)           Use
        of Proceeds.  It will not permit any proceeds of the Loans to
        be used either directly or indirectly, for the purpose, whether immediate,
        incidental or ultimate, of "purchasing or carrying any margin stock" within
        the meaning of Regulation U of the Board of Governors of the Federal Reserve
        System, as amended from time to time.
      (Q)          Good Title. 
        It shall at all times maintain good and marketable title to all of its
        assets.
      (R)           Officers
        of Borrower. Borrower shall give Lender written notice if any Person
        listed below fails to hold the respec­tive office or offices in it
        set forth next to such Person's name:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|           |                 |                                      
|---------- | --------------- | -------------------------------------
|Borrower 1 |                 |                                      
|           | Name            | Office                               
|           |                 |                                      
|           | Firoz Lalji     | Chairman and  Chief Executive Officer
|           |                 |                                      
|           | Scott Koerner   | Executive Vice-President             
|           |                 |                                      
|           | Ronald McFadden | Senior Vice-President and            
|           |                 | Chief Financial Officer              
|           |                 |                                      

|Borrower 2 |                  |                                      
|---------- | ---------------- | -------------------------------------
|           | Name             | Office                               
|           |                  |                                      
|           | Firoz Lalji      | Chairman                             
|           |                  |                                      
|           | Christina Corley | President and Chief Executive Officer
|           |                  |                                      
|           | Jack Mellor      | Chief Financial Officer              
|           |                  |                                      
|           | Ronald McFadden  | Secretary and                        
|           | Treasurer        |                                      

|                                                                                                                                                                                                                                                                                                                                                                                               
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(S)           Eligible
      Accounts Receivable and Eligible Inventory.  If it determines that
      a previously scheduled Eligible Accounts Receivable or Eligible Inventory
      ceases to be an Eligible Accounts Receivable or Eligible Inventory under
      any of the criteria described in Section 1.1 of this Agreement, then it
      shall immediately notify the Lender thereof.
|                                                                                                                                                                                                                                                                                                                                                                                               
|-32-                                                                                                                                                                                                                                                                                                                                                                                           
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                               



|(T)           Certification. 
        All reports, certificates, schedules, notices and financial information
        submitted by it to the Lender pursuant to this Agreement shall be certified
        as true and correct (unless a different standard is otherwise allowed
        hereunder) by the President or any other authorized officer of it.
      (U)          Collateral
        Locations; Material Adverse Change.  It shall give the Lender
        (i) 30 days prior written notice of the location of any Collateral at
        any place other than the Collateral Locations; and (ii) prompt written
        notice of any event, occurrence or other matter which has resulted or
        may result in a material adverse change in its financial condition
        or business operations.
      (V)           Fiscal
        Year.  The fiscal year of it shall end on December 31 of each
        year.
      (W)         Unsubordinated
        Debt To Tangible Net Worth Ratio.  It shall not cause, suffer
        or permit the ratio of (i) Borrowers total consolidated liabilities
        minus subordinated debt to (ii) Borrowers Tangible Net Worth to
        be greater the following, as measured at the end of each fiscal quarter:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |            |                                     
| | ---------- | ------------------------------------
| | Ratio      | Dates                               
| |            |                                     
| | (REDACTED) | March 31, 2003 through September 30,
| |            | 2003                                
| |            |                                     
| | (REDACTED) | Commencing on December              
| |            | 31, 2003 and continuing at          
| |            | all times thereafter                

|                                                                                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(X)          Tangible
        Net Worth.  It shall not cause, suffer or permit Borrowers consolidated
        Tangible Net Worth to be less than the following, as measured at the end
        of each fiscal quarter:
|                                                                                                                                                                                                                      

| |            |                                     
| | ---------- | ------------------------------------
| | Amount     | Dates                               
| |            |                                     
| | (REDACTED) | March 31, 2003 through September 30,
| |            | 2003                                
| |            |                                     
| | (REDACTED) | Commencing on December              
| |            | 31, 2003 and continuing at          
| |            | all times thereafter                
| |            |                                     

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(Y)             
        Fixed Charge Coverage.  Borrowers shall maintain a consolidated
        Fixed Charge Coverage of not less than (REDACTED), all as measured at
        the end of each fiscal quarter, as calculated for the 12 month period
        ending at the end of such fiscal quarter.
      (Z)             
         Current Ratio.  It shall not cause, suffer or permit
        Borrowers consolidated Current Ratio to be less than (REDACTED),
        all as measured at the end of each fiscal quarter.
      (AA)          Subordinated
        Debt.  Except as set forth in the Subor­dination Agreements,
        it will not make any payments pursuant to the Subordinated Debt.
      (BB)           Returns
        of Inventory.  Borrowers shall not place on any reports to be
        provided to Lender pursuant to the Documents, including, but not limited
        to, Section 5.1(A) of this Agreement any Inventory constituting returns
        of Inventory received by Borrower that is either not in new and saleable
        condition or has not or is not in the process of being returned to a Vendor. 
        If an Event of Default has occurred and is continuing, no return of Inventory
        shall be accepted, and no sale of returned Inventory shall be made, by
        Borrower without Lender's prior written consent.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-33-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        



|(CC)        Inventory System. 
        Borrowers shall maintain a perpetual inventory system, keeping accurate
        records itemizing and describing the kind, type, age, quality, quantity
        and cost of Inventory and withdrawals and additions.  Such records
        shall be available for inspection during Borrower's usual business hours
        at the request of Lender or its designee.
      (DD)       Business Plan.  Each
        Business Plan shall (i) constitute its best good faith estimate of its
        management regarding the course of its business for the period covered
        by such Business Plan; and (ii) be based on assumptions which shall be
        reasonable and realistic based on the then current economic conditions
        at the time of preparation of such Business Plan.
      (EE)         Ownership of Borrower
        2.  Borrower 1 will at all times own, directly or indirectly,
        100% of each and every class of issued and outstanding common capital
        stock of Borrower 2, and the voting power over said stock.
      (FF)         CPCS Stock Purchase
        Agreement.  The CPCS Stock Purchase Agreement will not be materially
        amended, altered or terminated without the prior written consent of Lender. 
        Borrowers shall deliver to Lender copies of all amendments, alterations
        or terminations of the CPCS Stock Purchase Agreement.
      (GG)        Line of Credit 2 Conditions
        Precedent.  By no later than the Line of Credit 2 Commencement
        Date, all of the Line of Credit 2 Conditions Precedent shall be met or
        fulfilled in their entirety to the satisfaction of Lender.
      ARTICLE SIX.  CONDITIONS PRECEDENT
      SECTION 6.1.        SPECIAL CONDITIONS
        PRECEDENT TO THE MAKING OF THE FIRST REVOLVING LOAN.  Lender's
        obligation to make the first Revolving Loan is subject to the fulfillment
        of each and every one of the following conditions prior to or contem­poraneously
        with the making of such first Revolving Loan:
      (A)          Delivery
        of Documents, Information and Fees.  The Lender shall have received
        each of the following, in form and substance satis­factory to the
        Lender and its counsel, and where applicable, duly executed and recorded:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 
|------------------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|(i)                                                    |  | Certificates of the Secretaries of Borrowers
      certifying as to (a) all corporate actions taken and consents made by Borrowers
      to authorize the transactions provided for or contemplated under this Agreement
      and the execution, delivery and performance of the Documents; and (b) the
      names of the officers or employees of Borrowers authorized to sign the Documents,
      together with a sample of the true signature of each such Person. 
      (Lender may conclusively rely on such certificates until formally advised
      by a like certificate of any changes therein.); | 
|                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 
|(ii)                                                   |  | Acknowledgment copies from the appropriate governmental
      authority of all Uniform Commercial Code financing statements required to
      perfect the Lender's security interests in the Collateral;                                                                                                                                                                                                                                                                                                                                                                                                        | 
|                                                      
|-34-                                                  
|*** (REDACTED) Confidential Treatment
      Requested
|                                                      
|                                                      



|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|(iii) |  | Copies of Uniform Commercial Code, tax lien and judgment
      searches made with such governmental offices as Lender deems necessary;                                                                                                                                                                                                                         | 
|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|(iv)  |  | Certificates of insurance and loss payable clauses covering
      the Collateral and meeting the require­ments of this Agreement;                                                                                                                                                                                                                              | 
|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|(v)   |  | The Subordination Agreements, including, but not limited
      to, from each Person pursuant to the CPCS Stock Purchase Agreement who is
      either entitled to receive any Contingent Payment (as defined in the CPCS
      Stock Purchase Agreement) and/or is a holder of any Promissory Notes
      (as defined in the CPCS Stock Purchase Agreement); | 
|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|(vi)  |  | The executed opinion of counsel of counsel to Borrowers
      addressed to the Lender and dated the date of this Agreement;                                                                                                                                                                                                                                    | 
|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|(vii) |  | Certified copies of the Articles of Incorpora­tion
      or Charter and By-laws of each Borrower, as restated or amended as to the
      date of this Agreement;                                                                                                                                                                                               | 
|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|(ix)  |  | Certificates of good standing for each Borrower in the
      juris­diction of their incor­poration, in the prin­cipal
      places in which they conduct business and in places in which they own real
      estate and/or Collateral;                                                                                                                         | 
|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|(x)   |  | All fees and costs of Lender agreed to be borne by Borrowers
      pursuant to the Documents; and                                                                                                                                                                                                                                                              | 
|      |  |                                                                                                                                                                                                                                                                                                                                                                | 
|(xi)  |  | Such other instruments or documents as the Lender may
      reasonably request.                                                                                                                                                                                                                                                                                | 
|     

|SECTION 6.2.        SPECIAL CONDITIONS
        PRECEDENT TO THE MAKING OF THE FIRST REVOLVING LOAN 1.  In addition
        to all other requirements of this Agreement, including, but not limited
        to, those set forth in Sections 6.1and 6.4 of this Agreement, Lenders
        obligation to make each Revolving Loan 1 is subject to the fulfillment
        of each and every of the following conditions prior to or contemporaneously
        with the making of each and every such Revolving Loan 1:
      (A)          Delivery
        of Documents, Information and Fees.  The Lender shall have received
        each of the following, in form and substance satis­factory to the
        Lender and its counsel, and where applicable, duly executed and recorded:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

|(i)                                                    |  | The Lock Box Agreements relating to Borrower
      1; | 
|------------------------------------------------------ |  | ----------------------------------------------------- | 
|                                                       |  |                                                       | 
|(ii)                                                   |  | The Third Party Waivers relating to Borrower 1;       | 
|                                                      
|-35-                                                  
|*** (REDACTED) Confidential Treatment
      Requested
|                                                      
|                                                      



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|(iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | The Borrower 1 IBMCC Intercreditor Agreements;
      and                                                                                                                     | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|(iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Such other instruments or documents as the Lender
      may reasonably request.                                                                                              | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|SECTION 6.3.        SPECIAL CONDITIONS
        PRECEDENT TO THE MAKING OF THE FIRST REVOLVING LOAN 2.  In addition
        to all other requirements of this Agreement, including, but not limited
        to, those set forth in Sections 6.1and 6.4 of this Agreement, Lenders
        obligation to make each Revolving Loan 2 is subject to the fulfillment
        of each and every of the following conditions prior to or contemporaneously
        with the making of each and every such Revolving Loan 2:
      (A)          Delivery
        of Documents, Information and Fees.  The Lender shall have received
        each of the following, in form and substance satis­factory to the
        Lender and its counsel, and where applicable, duly executed and recorded:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | The Lock Box Agreements relating to Borrower
      2;                                                                                                                        | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|(ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | The Third Party Waivers relating to Borrower 2;                                                                                                                              | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|(iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | The Borrower 2 IBMCC Intercreditor Agreements;                                                                                                                               | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|(iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Evidence that the Borrower 2 IBMCC Credit Financing has
      been reduced to a maximum principal amount of $4,000,000.00;                                                   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|(v)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Evidence that the only assets of Borrowers pledged to secure
      the Borrower 2 IBMCC Liabilities shall then only be inventory of Borrower
      2 purchased from IBM; and | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|(vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Such other instruments or documents as the Lender may
      reasonably request.                                                                                              | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                              | 
|SECTION 6.4.        GENERAL CONDITIONS
        PRECEDENT TO EACH LOAN.  In addition to all other requirements
        of this Agreement, including, but not limited to, those set forth in Sections
        6.1, 6.2 and 6.3 of this Agreement, Lenders obligation to make
        each Loan is subject to the fulfillment of each and every of the following
        conditions prior to or contemporaneously with the making of each and every
        such Loan:
      (A)          No Event
        of Default.  No Event of Default shall have occurred and be continuing,
        may occur with the giving of notice, the passage of time or both or shall
        result from the making of any Loan.
      (B)           No
        Material Adverse Change.  There shall have been no material adverse
        change in the business of any Borroweror the financial condition of Borrowers
        on a consolidated basis from the most recent financial statements submitted
        by Borrowers to Lender.
      (C)           Continuation
        of Representations and Warranties.  The representations and warranties
        contained in this Agreement shall be true and correct in all material
        respects as of the making of any Loan, with the same effect as though
        made on such dates.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-36-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|*** (REDACTED) Confidential
      Treatment Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
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|(D)          Receipt of Certificate. 
        The Lender shall have received its completed form borrowing base certificate
        from Borrowers upon any request for a Revolving Loan, which shall be executed
        as spec­ified in Article Two of this Agreement.
      ARTICLE SEVEN.  EVENTS OF DEFAULT
      SECTION 7.1.        EVENTS OF DEFAULT. 
        Each of the following acts, occurrences or omissions shall constitute
        an event of default under this Agreement (herein referred to as an "Event
        of Default"), whatever the reason for such Event of Default and whether
        it shall be voluntary or involu­ntary or be effected by operation
        of law or pursuant to any judgment or order of any court or any order,
        rule or regulation of any governmental or nongovernmental body or tribunal:
      (A)          Any Borrower
        shall default in the payment when due of any principal amount due and
        owing to the Lender under any of the Documents; or
      (B)           Any Borrower
        shall default in the payment when due of any interest amount due and owing
        to the Lender under any of the Documents within 20 days of the billing
        date of such interest; or
      (C)           Except
        for the Event of Default set forth in Sections 7.1(A) and (B) of this
        Agreement, default, and continuance thereof for 30 days after written
        notice thereof to Borrowers by the Lender, in the payment of any other
        amount owing by any Borrower to the Lender pursuant to the Documents or
        pursuant to any other agreement, note, instrument or guarantee; or
      (D)          Any representation
        or warranty made by any Borrower contained in the Documents shall at any
        time prove to have been incorrect in any material respect when made and
        not cured as of the date of such discovery; or
      (E)           Any Borrower
        shall default in the performance or observance of any term, covenant,
        condition or agreement on its part to be performed or observed under any
        financial or ownership covenant or any covenant relating to the Line of
        Credit 2 Conditions Precedent contained in the Documents, including, but
        not limited to, Sections 5.1(W) through (Z), 5.1 (EE) and 5.1(GG) of this
        Agreement; or
      (F)           Any Borrower
        shall default in the performance or observance of any term, covenant,
        condition or agreement on its part to be performed or observed under the
        Documents (not constitut­ing an Event of Default under any other
        clause of this Section 7.1 of this Agreement) and such default shall continue
        unremedied for 30 days after written notice thereof shall have been given
        by the Lender to Borrowers; or
      (G)           Either:
        (i) any Borrower shall become insolvent or generally fail to pay, or admit
        in writing its inability to pay, such Person's debts as they become due,
        or a proceed­ing under any bank­ruptcy, reorganization, arrange­ment
        of debt, insolvency, read­justment of debt or receivership law or
        statute is filed by or against any Borrower or any Borrower makes an assignment
        for the benefit of cred­itors; provided, however, that
        no Event of Default shall exist pursuant to this Subsection E, Clause
        (i) due to an involuntary bankruptcy case, proceeding or petition filed
        against any Borrower unless such involuntary case, proceedi­ng or
        petition shall not have been dis­missed or withdrawn within 60 days
        after the date of such invol­untary filing; or (ii) cor­porate
        or other action shall be taken by any Borrower for the purpose of effectuating
        any of the fore­going; or
      (H)          If notice is
        given that the Collateral, or any part of the Collateral having a book
        value exceeding $150,000.00, is subject to levy, attach­ment, seizure,
        or con­fiscation or uninsured loss; provided, however,
        that the deductible amount on any insurance policy currently in effect
        on the Collateral shall not be considered an uninsured loss pursuant to
        this Subsection; or
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|-37-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   



|(I)           
        Any Borrower shall be dissolved, whether voluntarily or involuntarily
        and such Person has not taken all actions required to become reinstated;
        or
      (J)           
        Subject to any applicable cure and/or notice periods, any material default
        shall occur under any material agreement, document or instrument binding
        upon any Borrower, or any assets of any Borrower, including, but not limited
        to, any default in the payment when due of any principal of or interest
        on any indebtedness for money borrowed or guaranteed by any Borrower,
        or any default in the payment when due, or in the performance or observance
        of, any material obligation of, or condition agreed to by, any Borrower
        with respect to any purchase or lease of any real or personal property
        or services;
      (K)          Any default
        or event of default (howsoever such terms are defined) shall occur under
        any Third Party Financing;
      (L)           Any default
        or event of default (howsoever such terms are defined) shall occur under
        any IBMCC Credit Financing; or
      (M)         Lender gives Borrowers
        written notice (an Insecurity Notice) that Lender, in good
        faith, deems itself reasonably insecure for any reason due to any material
        adverse change in the business, assets or liabilities, financial condition,
        results of operations or business prospects of any Borrower; provided,
        however, that no Event of Default shall exist pursuant to this
        clause (M) until sixty (60) days after the sending of such Insecurity
        Notice; or
      (N)          Any default
        or event of default (howsoever such terms are defined) shall occur under
        the CPCS Stock Purchase Agreement.
      Notwithstanding anything contained in this Section 7.1,
        any Event of Default under any of Sections 7.1(J), (K), (L) or (N) of
        this Agreement caused by the occurrence of any default or event of default
        under any other agreement, document or instrument shall be automatically
        cured for purposes of this Agreement upon the cure or waiver of such default
        or event of default under such other agreement, document or instrument.
      ARTICLE EIGHT.  REMEDIES
      SECTION 8.1.        REMEDIES UPON
        DEFAULT.  Upon the occurrence and continuance of any Event of
        Default, and the expiration of any applicable cure period, and in every
        such event:
      (A)          notwithstanding
        anything in the Documents, Lender may, in its sole and arbitrary discretion,
        declare the principal of and interest on any or all of the Loans, and
        all other amounts owed under the Documents, to be forthwith due and payable
        without presentment, demand, protest or other notice of any kind, all
        of which are hereby expressly waived; and
      (B)           Lender
        may, in its sole and arbitrary discretion, without presentment, demand,
        protest or other notice of any kind, all of which are hereby expressly
        waived, exercise all of the remedies of a secured party and mortgage holder
        under applicable law, includ­ing, but not limited to, the UCC, and
        all of its rights and remedies under the Documents; and
      (C)           Lender
        may require any Borrower to make the Collateral and the records pertaining
        to the Collateral available to the Lender at a place designated by the
        Lender which is reasonably convenient or may take repossession of the
        Collateral and the records pertaining to the Collateral without the use
        of any judicial process and without any prior notice thereof to Borrowers;
        and
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|-38-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



|(D)          except as otherwise
        provided by law, Lender may, at its option, and in its sole and arbitrary
        discretion, sell the Collateral at public or private sale upon such terms
        and conditions as Lender may reasonably deem proper, and Lender may purchase
        the Collateral at any such sale, and apply the net proceeds, after deducting
        all costs, expenses and attorneys' fees incurred at any time in the collection
        of the indebtedness of Borrowers to the Lender and in the protection and
        sale of the Collateral, to the payment of said indebtedness, returning
        the remaining proceeds, if any, to Borrowers, with Borrowers remaining
        liable for any amount remaining unpaid after such application; and
      (E)           the Lender
        may, at its option, and in its reasonable discretion, grant extensions,
        compromise claims and settle Accounts Receivable for less than face value,
        all without prior notice to Borrowers; and
      (F)           Lender
        may, at its option, and in its sole and arbitrary discretion, use, in
        connection with any assembly or disposition of the Collateral, any trademark,
        trade name, trade style, copyright, patent right or technical process
        used or utilized by any Borrower; and
      (G)           Each Borrower
        shall, upon the request of the Lender, forthwith upon receipt, transmit
        and deliver to the Lender in the form received, all cash, checks, drafts
        and other instruments for the payment of money (properly endorsed, where
        required, so that such items may be collected by Lender) which may be
        received by such Borrower at any time in full or partial payment of any
        Col­lateral.  Borrowers shall not commingle any such items which
        may be so received by any Borrower with any other of its funds or property
        but shall hold them separate and apart from their own funds or property
        and in trust for the Lender until delivery is made to Lender; and
      (H)          the Lender may,
        at its option, and in its reasonable discretion, accept the return of
        any Inventory directly from an Account Debtor, without notice to or consent
        by Borrowers.
      SECTION 8.2.        REMEDIES ARE
        SEVERABLE AND CUMULATIVE.  All provisions contained herein pertaining
        to any remedy of the Lender shall be and are severable and cumulative
        and in addition to all other rights and remedies available in the Documents,
        at law and in equity, any one or more may be exercised simultaneously
        or successively.  Any notification required pursuant to this Article
        Eight or under applicable law shall be reasonably and properly given to
        Borrowers at the address and by any of the methods of giving such notice
        as set forth in this Agree­ment, at least 5 days before taking any
        action.

      ARTICLE NINE.  MISCELLANEOUS

      SECTION 9.1.        NO WAIVER; MODIFICATIONS
        IN WRITING.  No failure or delay on the part of Lender in exercising
        any right, power or remedy pursuant to the Documents shall operate as
        a waiver thereof, nor shall any single or partial exercise of any such
        right, power or remedy preclude any other or further exer­cise thereof,
        or the exercise of any other right, power or remedy.  No amendment,
        modification, supplement, termination or waiver of any provision of the
        Documents, nor any consent by Lender to any departure by any Borrower
        therefrom, shall be effective unless the same shall be in writing and
        signed by Lender.  Any waiver of any provision of the Documents and
        any consent by Lender to any departure by any Borrower from the terms
        of any provision of the Documents shall be effective only in the specific
        instance and for the specific purpose for which given.  No notice
        to or demand on any Borrower in any case shall entitle any Borrower to
        any other or further notice or demand in similar or other circumstances.
      SECTION 9.2.        SET-OFF. 
        Lender shall have the right to set-off, appropriate and apply toward payment
        of any of the Liabilities, in such order of application as Lender may
        from time to time and at any time elect, any cash, credit, deposits, accounts,
        securities and any other property of any Borrower which is in transit
        to or in the possession, custody or control of Lender, or any agent, bailee,
        or Affiliate of Lender. Each Borrower hereby grants to Lender a security
        interest in all such property.
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|-39-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



|SECTION 9.3.        NOTICES, ETC. 
      All notices, demands, instructions and other communications required or
      permitted to be given to or made upon any party hereto shall be in writing
      personally delivered or sent by overnight courier or by facsimile machine,
      and shall be deemed to be given for purposes of this Agreement on the day
      that such writing is delivered or sent by facsimile machine or one (1) day
      after such notice is sent by overnight courier to the intended recipient
      thereof in accordance with the provisions of this Section 9.3.  Unless
      otherwise specified in a notice sent or delivered in accordance with the
      foregoing provisions of this Section 9.3 of this Agreement, notices, demands,
      instructions and other communications in writing shall be given to or made
      upon the respective parties hereto at their respective addresses indicated
      for such party below:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

|If to the Borrowers:                                   |  | Zones, Inc.                        
|------------------------------------------------------ |  | -----------------------------------
|                                                       |  | 707 South Grady Way                
|                                                       |  | Renton, Washington  98055          
|                                                       |  | Attention:  Chief Executive Officer
|                                                       |  | Phone:  (425) 430-3000             
|                                                       |  | Fax No.:  (425) 430-3626           
|                                                      
|-40-                                                  
|*** (REDACTED) Confidential Treatment
      Requested
|                                                      
|                                                      



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                            
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------
|With a copy to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Joe M. Wallin                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Gray Cary Ware & Freidenrich LLP           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 701 Fifth Avenue, Suite 7000               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Seattle, WA  98104                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Phone:  (206) 839-4800                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Fax No.:  (206) 839-4801                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                            
|If to the Lender:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Transamerica Commercial Finance Corporation
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 5595 Trillium Boulevard                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Hoffman Estates, Illinois 60192            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Attn:  Michelle Rice                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Phone:  (847) 747-7589                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Fax No.:  (847) 747-7436                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                            
|With a copy to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Steven Bright, Esq.                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Levenfeld Pearlstein                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 211 Waukegan Road                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Suite 300                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Northfield, Illinois 60093                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Phone:  (847) 441-7676                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Fax:  (847) 441-9976                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|SECTION 9.4.        COSTS, EXPENSES
      AND TAXES. Borrowers agree to pay all out-of-pocket fees and expenses
      of Lender (includ­ing, but not limited to, UCC Filing and Search Fees
      and fees and expenses of outside counsel to Lender and paralegals) in connection
      with the field audits and the enforcement of the Docu­ments and the
      Loans; provided, however, that (A) so long as no Event of
      Default shall have occurred or will occur with the giving of notice, the
      passage of time, or both, the quarterly field audit fees and costs to be
      paid by Borrowers shall not exceed $1000.00 per day per audit per Borrower,
      $5000.00 per audit per Borrower and an aggregate of $40,000.00 annually
      for audits on all Borrowers; and (B) if prior to conducting an audit Lender
      eliminates all (REDACTED), then no payment shall be due by Borrowers for
      audit fees relating to such audit; provided, further, that
      if any (REDACTED) is reinstated, then audit fees shall be due and owing
      by Borrowers for any audit conducted by Lender following such reinstatement. 
      In addition, Borrowers shall pay any and all stamp, transfer and other taxes
      payable or determined to be payable in connection with the execution and
      delivery of the Documents and agrees to hold the Lender harmless from and
      against any and all liabilities with respect to or resulting from any delay
      in paying or omission to pay such taxes.  If any suit or proceeding
      arising from any of the foregoing is brought against Lender, Borrowers,
      to the extent and in the manner directed by Lender, will resist and defend
      such suit or proceeding or cause the same to be resisted and defended by
      counsel approved by Lender (Gray Cary Ware & Freidenrich LLP is hereby
      approved).  If any Borrower shall fail to do any act or thing which
      it has covenanted to do under this Agreement or any representation or warranty
      on the part of any Borrower contained in this Agreement shall be breached,
      Lender may, in its sole and arbitrary discre­tion, after 10 days written
      notice is sent to Borrowers, do the same or cause it to be done or remedy
      any such breach, and may expend its funds for such purpose; and any and
      all amounts so expended by the Lender shall be repayable to the Lender by
      Borrowers immediately upon the Lender's demand therefor, with interest at
      a rate equal to the highest interest rate set forth in this Agreement in
      effect from time to time during the period from and including the date funds
      are so expended by Lender to the date of repayment, and any such amounts
      due and owing Lender shall be deemed to be part of the Liabilities secured
      hereunder. The obligations of Borrowers under this Section shall survive
      the termination of this Agreement and the discharge of the other obli­gations
      of Borrower under the Documents.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-41-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                



|SECTION 9.5.        COMPUTATIONS.
        Where the character or amount of any asset or liability or item of income
        or expense is required to be determined, or any consolidation or other
        accounting computation is required to be made, for the purpose of this
        Agreement, such determination or calculation shall, to the extent applicable
        and except as otherwise specified in this Agree­ment, be made in
        accordance with generally accepted accounting principles applied on a
        basis consistent with those at the time in effect.
      SECTION 9.6.        FURTHER ASSURANCES. 
        Borrower agrees to do such further acts and things and to execute and
        deliver to Lender such additional assignments, agreements, powers, documents
        and instruments as Lender may reasonably require or deem advisable to
        carry into effect the purposes of the Documents, or to confirm unto Lender
        its rights, powers and remedies under the Documents.
      SECTION 9.7.        COUNTERPARTS. 
        This Agree­ment may be executed in any number of counterparts, each
        of which counterparts, once they are executed and delivered, shall be
        deemed to be an original and all of which counterparts, taken together,
        shall constitute but one and the same agreement.
      SECTION 9.8.        BINDING EFFECTS;
        ASSIGNMENT.  This Agreement shall be binding upon, and inure
        to the benefit of, Lender, each Borrower and their respective successors,
        as­signs, representatives and heirs. No Borrower shall assign any
        of its rights nor delegate any of its obligations under Documents without
        the prior written consent of Lender and no such consent by Lender shall,
        in any event, relieve any Borrower of any of its obliga­tions under
        the Documents.
      SECTION 9.9.        HEADINGS. 
        Captions contained in this Agreement are inserted only as a matter of
        convenience and in no way define, limit or extend the scope or intent
        of this Agreement or any pro­vision of this Agreement and shall not
        affect the con­struction of this Agreement.
      SECTION 9.10.      ENTIRE AGREEMENT. 
        This Agreement, together with the Documents, contains the entire agreement
        between the parties hereto with respect to the transactions contemplated
        herein and supersede all prior representations, agreements, covenants
        and understandings, whether oral or written, related to the subject matter
        of the Agreement.  Except as specifically set forth in this Agreement,
        Lender makes no covenants to any Borrower, including, but not limited
        to, any other commitments to provide any additional financing to any Borrower.
      SECTION 9.11.      GOVERNING LAW. 
        This Agreement shall be deemed to be a contract made under the laws of
        the State of Illinois and for all purposes shall be construed in accordance
        with the laws of the State of Illinois.
      SECTION 9.12.      SEVERABILITY OF PROVISIONS. 
        Any provision of this Agreement which is prohibited or unenforceable in
        any jurisdiction shall, as to such jurisdiction, be ineffec­tive
        only to the extent of such prohibition or unenforceability without invalidating
        the remaining provisions of this Agreement or affecting the validity or
        enforceability of such provision in any other jurisdiction.
      SECTION 9.13.      CONFLICT.  In
        the event of any conflict between this Agreement and any of the other
        Documents, the terms and provisions of this Agreement shall govern and
        control.
      SECTION 9.14.      POWER OF ATTORNEY.Each Borrower hereby grants to Lender an irrevocable power of attorney
        coupled with an interest, authorizing and permitting Lender, at its option
        but without obligation, at Borrowers' sole expense, in such Borrower's
        name or otherwise, to the extent reasonably determined by Lender to be
        necessary or advisable in order to carry out Lender's rights or remedies
        while an Event of Default is continuing or will occur with the giving
        of notice, the passage of time, or both, to do any or all of the following: 
        (a) execute on behalf of such Borrower any financing statement, or any
        continuation or amendment thereof, security agreement, assignment of rentals
        from real or personal property, report, notice, schedule of Accounts Receivable,
        and any other agreement or document that Lender may, in its reasonable
        discretion, deem advisable in order to (i) perfect, maintain or improve
        Lender's security interest in the Collateral or other property intended
        to constitute Collateral, or (ii) exercise a right of such Borrower or
        Lender, or (iii) fully consummate the transactions contemplated under
        this Agreement and the Documents; (b) execute on behalf of such Borrower,
        any invoice relating to any  of the Accounts Receivable, any draft
        against or notice to any Account Debtor, any proof of claim in bankruptcy,
        or other similar document against any Account Debtor, any notice or claim
        of mechanic's, material supplier's or other lien, or assignment or satisfaction
        thereof; (c) take control in any manner of any cash or non-cash proceeds
        of Collateral; endorse such Borrower's name upon any instruments, money
        orders, bills of lading, freight bills, chattel paper or other agreements
        or documents, evidence of payment or Collateral that may come into Lender's
        possession; and sign such Borrower's name to any verification of its Accounts
        Receivable and notices thereof to such Borrower's Account Debtors; (d)
        endorse all checks and other forms of remittances in payment of Accounts
        Receivable received by Lender "Pay to the Order of Transamerica Commercial
        Finance Corporation", or in such other manner as Lender may choose; (e)
        notify post office authorities to change the address for delivery of any
        of such Borrower's mail to an address designated by Lender and receive
        and open all mail addressed to such Borrower and make such disposition
        as is reasonable under the circumstances, and Lender will endeavor to
        provide Borrowers with originals or copies thereof; (f) pay, contest or
        settle any lien with respect to the Collateral, or any judgment based
        thereon, or otherwise take any action to terminate or discharge the same;
        (g) following the occurrence of an Event of Default, demand payment of
        Accounts Receivable, enforce payment of Accounts Receivable by legal proceedings
        or otherwise, and enforce any and all rights of such Borrower in Accounts
        Receivable; grant extensions of time to pay, compromise claims and settle
        Accounts Receivable for less than face value and execute all releases
        and other documents in connection therewith; (h) settle and adjust, and
        give releases of, any claim under any insurance policy that relates to
        any of the Collateral and obtain payment therefor, and make all determinations
        and decisions with respect to any such policy and endorse such Borrower's
        name on any instrument or other item of payment or the proceeds of such
        policy; and (i) take any action or pay any sum required of such Borrower
        pursuant to this Agreement, and any other present or future agreements
        between Lender and such Borrower and do all acts and things which are
        necessary to fulfill such Borrower's obligations under this Agreement.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-42-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



|SECTION
        9.15       CONFIDENTIAL INFORMATION.
      (A)         
        Lender and each Borrower shall:  (i) restrict disclosure of the Confidential
        Information solely to those of its employees, affiliates, advisors or
        representatives with a need to know and not disclose any of it to any
        other third parties; (ii) advise its employees, affiliates, advisors or
        representatives who receive the Confidential Information of the obligation
        of confidentiality hereunder; (iii) use and advise its employees, affiliates,
        advisors or representatives to use the same degree of care to protect
        the Confidential Information and to prevent disclosure of the Information
        as is used with the partys own confidential information, which shall
        be at least the degree of care which a reasonably prudent person would
        take to protect and prevent disclosure of Confidential Information; (iv)
        use the Confidential Information only in connection with this transaction
        and in its normal internal reporting, evaluation and analysis in the ordinary
        course of its business; and (v) not publish in any public filing any of
        the Confidential Information, except with the prior written consent of
        the other party, except as required by law;provided, however, that with
        respect to any SEC or state securities filing of Borrowers, if Borrowers
        have madecommercially reasonableefforts to comply with any written request
        of Lender to redact or not publish any provision of the Documents (unless
        in the opinion of Borrowers counsel the disclosure of such provisions
        is required to comply with applicable securities laws) and the SEC or
        any state agency requires the publication of such provision, then Borrowers
        may publish such provision required to be published by the SEC or such
        state agency. Lender or any Borrower may specifically identify in writing
        any information as Confidential Information which shall be
        subject to the terms and provisions of this Section.
      (B)           Notwithstanding
        anything to the contrary herein, neither any Borrower nor Lender shall
        have any obligation to preserve the confidentiality of the other partys
        Confidential Information which:  (i) was previously known to such
        party free of any obligation to keep it confidential; (ii) is or becomes
        publicly available, other than by disclosure to such party which disclosure
        is known to such receiving party to have been unauthorized; (iii) is made
        available to such party by a source, other than the disclosing party,
        which is not known to the receiving party to be bound under an obligbation
        of confidentiality with respect to the Information; or (iv) is independently
        developed by such party.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-43-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



|(C)             
        The parties agree that, should third parties request a party or any of
        its employees, affiliates, advisors or representatives to submit the other
        partys Confidential Information to them pursuant to subpoena, summons,
        search warrant, governmental order, status or regulation, such party will
        notify the other party immediately upon receipt of such request, and thereafter
        promptly deliver written notice of the request to the other party so that
        such other party may seek, at its sole expense an appropriate protective
        order or other remedy or, if appropriate, waive compliance with the terms
        of this Agreement.  Nothing herein shall preclude the disclosure
        of any information compelled by law, properly issued subpoena or court
        order.
      SECTION 9.16.      BORROWER AGENT. 
        Each Borrower hereby appoints Borrower 1 as Borrower Agent. 
        For so long as the Liabilities remains outstanding and any Line of Credit
        remains in effect, each Borrower hereby covenants and agrees, and hereby
        grants to the Borrower Agent an absolute and irrevocable power of attorney
        coupled with interest, and irrevocably designates, appoints, authorizes
        and directs the Borrower Agent to (a) certify the financial
        statements of each Borrower, (b) make any other deliveries required to
        be delivered periodically hereunder to Lender, (c) act as its officer,
        and Lender is entitled to rely on any such document or certificate signed
        by the Borrower Agent, and (d) otherwise take all other actions otherwise
        contemplated by this Agreement, and to act on behalf of such Borrower
        for purposes of giving and receiving notices and certifications under
        this Agreement or any of the other Documents.  The Lender is entitled
        to rely and act on the instructions of the Borrower Agent.
      SECTION 9.17.      JURISDICTION; WAIVER. 
        EACH BORROWER ACKNOWLEDGES THAT THIS AGREEMENT IS BEING SIGNED BY THE
        LENDER IN PARTIAL CONSIDERATION OF LENDER'S RIGHT TO ENFORCE IN THE JURISDICTION
        STATED BELOW THE TERMS AND PROVISION OF THIS AGREEMENT AND THE DOCUMENTS. 
        EACH BORROWER CONSENTS TO JURISDICTION IN THE STATE OF ILLINOIS AND VENUE
        IN ANY FEDERAL OR STATE COURT IN THE COUNTY OF COOK FOR SUCH PURPOSES
        AND WAIVES ANY AND ALL RIGHTS TO CONTEST SAID JURISDICTION AND VENUE AND
        ANY OBJECTION THAT SAID COUNTY IS NOT CONVENIENT.  EACH BORROWER
        WAIVES ANY RIGHTS TO COMMENCE ANY ACTION AGAINST LENDER IN ANY JURISDICTION
        EXCEPT THE AFORESAID COUNTY AND STATE.  LENDER AND EACH BORROWER
        HEREBY EACH EXPRESSLY WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY
        ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THE PARTIES AGAINST
        ANY OTHER PARTY WITH RESPECT TO ANY MATTER WHATSOEVER RELATING TO, ARISING
        OUT OF OR IN ANY WAY CONNECTED WITH THE LOANS, THE DOCUMENTS AND/OR THE
        TRANSACTIONS WHICH ARE THE SUBJECT OF THE DOCUMENTS.
      [THE REMAINDER OF THIS PAGE IS INTENTIONALLY
        LEFT BLANK.  SIGNATURE PAGE FOLLOWS ON NEXT PAGE.]
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-44-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   



|IN WITNESS WHEREOF, the parties hereto have caused this Agree­ment
        to be duly executed and delivered at Cook County, Illinois as of the date
        first above written.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                       |  |                                               
|------------------------------------------------------ |  | ----------------------------------------------
|BORROWERS:                                             |  | ZONES, INC.                                   
|                                                       |  |                                               
|                                                       |  | By:  /S/ RONALD P MCFADDEN                    
|                                                       |  |                                               
|                                                       |  | Title: Senior Vice President & Chief Financial
|                                                       |  | Officer                                       
|                                                       |  |                                               
|                                                       |  | CORPORATE PC SOURCE, INC.                     
|                                                       |  |                                               
|                                                       |  | By:  /S/ RONALD P MCFADDEN                    
|                                                       |  |                                               
|                                                       |  | Title: Secretary                              
|                                                       |  |                                               
|                                                       |  |                                               
|LENDER:                                                |  | TRANSAMERICA COMMERCIAL FINANCE CORPORATION   
|                                                       |  |                                               
|                                                       |  | By:  /S/ CHRISTOPHER C MEALS                  
|                                                       |  |                                               
|                                                       |  | Title:  Vice President - Credit               
|                                                      
|-45-                                                  
|*** (REDACTED) Confidential Treatment
      Requested
|                                                      
|                                                      



|TRANSAMERICA COMMERCIAL FINANCE CORPORATION
        ZONES, INC./ CORPORATE PC SOURCE,
        INC.LOAN AND SECURITY AGREEMENT
|------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                              
|EXHIBIT LIST                                                                                                                  
|                                                                                                                              
|                                                                                                                              
|                                                                                                                              
|(REDACTED)                                                                                                                    
|                                                                                                                              
|(REDACTED)                                                                                                                    
|                                                                                                                              
|IBMCC Credit Financing                                                                                                        
|                                                                                                                              
|Collateral Locations                                                                                                          
|                                                                                                                              
|CPCS Stock Purchase Agreement                                                                                                 
|                                                                                                                              
|Designated Vendors                                                                                                            
|                                                                                                                              
|Permitted Indebtedness                                                                                                        
|                                                                                                                              
|Tax Dispute                                                                                                                   
|                                                                                                                              
|Permitted Liens                                                                                                               
|                                                                                                                              
|Litigation/Contingent Liabilities                                                                                             
|                                                                                                                              
|Burdensome Obligations                                                                                                        
|                                                                                                                              
|Businesses                                                                                                                    
|                                                                                                                              
|-46-                                                                                                                          
|*** (REDACTED) Confidential Treatment
      Requested                                                                        
|                                                                                                                              
|                                                                                                                              



|EXHIBIT 1.1-1 TO 
        ZONES, INC./CORPORATE PC SOURCE, INC. LOAN AND SECURITY AGREEMENT
      (REDACTED)
|-------------------------------------------------------------------------------------------------------------
|                                                                                                             
|-47-                                                                                                         
|*** (REDACTED) Confidential Treatment
      Requested                                                       
|                                                                                                             
|                                                                                                             



|EXHIBIT 1.1-2 TO ZONES, INC./ CORPORATE PC SOURCE,
        INC.-LOAN AND SECURITY AGREEMENT(REDACTED)
|-----------------------------------------------------------------------------------------------------
|                                                                                                     
|                                                                                                     
|-48-                                                                                                 
|*** (REDACTED) Confidential Treatment
      Requested                                               
|                                                                                                     
|                                                                                                     



|EXHIBIT 1.1-3 TO ZONES, INC./CORPORATE
        PC SOURCE, INC.
        -LOAN AND SECURITY AGREEMENT
        IBMCC CREDIT FINANCINGS
      Borrower 1 IBMCC Credit Financing:
      Borrower 1 has a Five Million Dollar ($5,000,000) credit
        facility with IBM Credit Corporation, which is secured by the assets of
        Borrower 1.
      Borrower 2 IBMCC Credit Financing:
      As of the date of this Agreement, Borrower 2 has a Twenty Five Million
        Dollar ($25,000,000) credit facility with IBM Credit Corporation, which
        is secured by the assets of Borrower 2.  By no later than the Line
        of Credit 2 Commencement Date, this credit facility from IBMCC to Borrower
        2 will be reduced to a maximum principal amount of $4,000,000.00.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-49-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



|EXHIBIT 1.1-4 TO ZONES, INC./CORPORATE PC SOURCE, INC.-LOAN AND SECURITY AGREEMENTCOLLATERAL LOCATIONS
|------------------------------------------------------------------------------------------------------
|                                                                                                      
|Borrower 1                                                                                            
|                                                                                                      
|1.                                                                                                    
|                                                                                                      
|                                                                                                      
|2.                                                                                                    
|                                                                                                      
|                                                                                                      
|3.                                                                                                    
|                                                                                                      
|                                                                                                      
|4.                                                                                                    
|                                                                                                      
|                                                                                                      
|Borrower 2                                                                                            
|1.                                                                                                    
|                                                                                                      
|                                                                                                      
|2.                                                                                                    
|                                                                                                      
|                                                                                                      
|-50-                                                                                                  
|*** (REDACTED) Confidential Treatment
      Requested                                                
|                                                                                                      
|                                                                                                      



|EXHIBIT 1.1-5 TO ZONES, INC./CORPORATE PC SOURCE, INC.-LOAN AND SECURITY AGREEMENTCPCS STOCK PURCHASE AGREEMENT
|---------------------------------------------------------------------------------------------------------------
|                                                                                                               
|                                                                                                               
|-51-                                                                                                           
|*** (REDACTED) Confidential Treatment
      Requested                                                         
|                                                                                                               
|                                                                                                               



|EXHIBIT 1.1-6 TO ZONES, INC./CORPORATE PC SOURCE, INC.-LOAN AND SECURITY AGREEMENTDESIGNATED VENDORS
      (REDACTED)
|---------------------------------------------------------------------------------------------------------------------
|                                                                                                                     
|                                                                                                                     
|-52-                                                                                                                 
|*** (REDACTED) Confidential Treatment
      Requested                                                               
|                                                                                                                     
|                                                                                                                     



|EXHIBIT 1.1-7 TO ZONES, INC./ CORPORATE
        PC SOURCE, INC.-LOAN AND SECURITY AGREEMENTPERMITTED INDEBTEDNESS
      Other than indebtedness disclosed in Borrowers financial statements
        as of December 31, 2002, none.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                   
|-53-                                                                                                                                                                                                                               
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                             
|                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                   



|EXHIBIT 1.1-8 TO ZONES, INC./CORPORATE PC SOURCE, INC.-LOAN AND SECURITY AGREEMENTTAX DISPUTE
      The Washington State Department of Revenue (the Department)
        has examined Borrower 1s state tax returns for the years 1996,
        1997, 1998 and 1999.  Borrower 1 has received a final report, and
        the Department has assessed $2.1 million plus approximately $800,000 of
        accrued interest.  Borrower 1 has recorded a reserve for $2.145 million
        in the 12/31/02 audited financial statement.  Borrower 1 disagrees
        with substantially all of the deficiencies and is appealing such deficiencies
        through the administrative appeals process.  There can be no assurance
        that Borrower 1 will be successful, in whole or in part, in challenging
        the proposed deficiencies.  Additionally, the Department may also
        make a similar assessment for 2000, 2001 and 2002.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-54-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|*** (REDACTED) Confidential Treatment
      Requested                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        



|EXHIBIT 1.1-9 TO ZONES,
        INC./CORPORATE PC SOURCE, INC.-LOAN AND SECURITY AGREEMENTPERMITTED LIENS
|---------------------------------------------------------------------------------------------------------
|                                                                                                         
|BORROWER 1:                                                                                              
|                                                                                                         
|1.                                                                                                       
|2.                                                                                                       
|3.                                                                                                       
|4.                                                                                                       
|5.                                                                                                       
|6.                                                                                                       
|7.                                                                                                       
|8.                                                                                                       
|                                                                                                         
|BORROWER 2:                                                                                              
|                                                                                                         
|None                                                                                                     
|                                                                                                         
|-55-                                                                                                     
|*** (REDACTED) Confidential Treatment
      Requested                                                   
|                                                                                                         
|                                                                                                         



|EXHIBIT 4.1(G) TO ZONES, INC./ CORPORATE PC
        SOURCE, INC.-LOAN AND SECURITY AGREEMENTLITIGATION / CONTINGENT LIABILITIES
      (REDACTED)
|------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                
|                                                                                                                                                
|-56-                                                                                                                                            
|*** (REDACTED) Confidential Treatment
      Requested                                                                                          
|                                                                                                                                                
|                                                                                                                                                



|EXHIBIT 4.1(I)TO ZONES, INC./CORPORATE PC SOURCE, INC.-LOAN AND SECURITY AGREEMENTBURDENSOME OBLIGATIONS
      None
|-------------------------------------------------------------------------------------------------------------------
|                                                                                                                   
|                                                                                                                   
|-57-                                                                                                               
|*** (REDACTED) Confidential Treatment
      Requested                                                             
|                                                                                                                   
|                                                                                                                   



|EXHIBIT 5.1(N) TO ZONES, INC./ CORPORATE PC
        SOURCE, INC.-LOAN AND SECURITY AGREEMENTBUSINESSES
|------------------------------------------------------------------------------------------------------
|                                                                                                      
|                                                                                                      
|-58-                                                                                                  
|*** (REDACTED) Confidential Treatment
      Requested                                                
|                                                                                                      
|