Exhibit 10.44





EXECUTION COPY





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LOAN AND SECURITY AGREEMENT





by and between





RMH TELESERVICES, INC.





as Borrower,





and





FOOTHILL CAPITAL CORPORATION





as Lender





Dated as of September 4, 2002





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TABLE OF CONTENTS





1.

DEFINITIONS AND CONSTRUCTION

11.1

Definitions

11.2

Accounting Terms

261.3

Code

261.4

Construction

261.5

Schedules and Exhibits

262.

LOAN AND TERMS OF PAYMENT

272.1

Revolver Advances

272.2

[Intentionally Omitted]

282.3

Borrowing Procedures and Settlements

292.4

Payments

292.5

Overadvances

302.6

Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations

302.7

Cash Management

322.8

Crediting Payments; Float Charge

332.9

Designated Account

332.10

Maintenance of Loan Account; Statements of Obligations

342.11

Fees

342.12

Letters of Credit

352.13

LIBOR Option

372.14

Capital Requirements

403.

CONDITIONS; TERM OF AGREEMENT

413.1

Conditions Precedent to the Initial Extension of Credit

413.2

Conditions Subsequent to the Initial Extension of Credit

443.3

Conditions Precedent to all Extensions of Credit

463.4

Term

463.5

Effect of Termination

463.6

Early Termination by Borrower

474.

CREATION OF SECURITY INTEREST

484.1

Grant of Security Interest

484.2

Negotiable Collateral

484.3

Collection of Accounts, General Intangibles, and Negotiable Collateral

484.4

Delivery of Additional Documentation Required

484.5

Power of Attorney

494.6

Right to Inspect

494.7

Control Agreements

494.8

Commercial Tort Claims

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5.

REPRESENTATIONS AND WARRANTIES

505.1

No Encumbrances

505.2

Eligible Accounts

505.3

[Intentionally Omitted]

505.4

Equipment

505.5

Location of Inventory and Equipment

505.6

Inventory Records

515.7

Location of Chief Executive Office; FEIN

515.8

Due Organization and Qualification; Subsidiaries

515.9

Due Authorization; No Conflict

515.10

Litigation

535.11

No Material Adverse Change

535.12

Fraudulent Transfer

535.13

Employee Benefits

535.14

Environmental Condition

535.15

Brokerage Fees

545.16

Intellectual Property

545.17

Leases

555.18

DDAs

555.19

Complete Disclosure

555.20

Indebtedness

565.21

Taxes and Payments

565.22

MCI Agreement

566.

AFFIRMATIVE COVENANTS

576.1

Accounting System

576.2

Collateral Reporting

576.3

Financial Statements, Reports, Certificates

586.4

Guarantor Reports

606.5

Return

616.6

Maintenance of Properties

616.7

Taxes

616.8

Insurance

616.9

Location of Inventory and Equipment

626.10

Compliance with Laws

626.11

Leases

626.12

Brokerage Commissions

636.13

Existence

636.14

Environmental

636.15

Disclosure Updates

636.16

Intellectual Property Rights

636.17

Minimum Outstanding Advance

656.18

MCI Agreement

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6.19

Formation of Subsidiaries

657.

NEGATIVE COVENANTS

667.1

Indebtedness

667.2

Liens

677.3

Restrictions on Fundamental Changes

677.4

Disposal of Assets

677.5

Change Name

677.6

Guarantee

687.7

Nature of Business

687.8

Prepayments and Amendments

687.9

[Intentionally Omitted]

687.10

Consignments

687.11

Distributions

687.12

Accounting Methods

687.13

Investments

697.14

Transactions with Affiliates

697.15

Suspension

697.16

Compensation

697.17

Use of Proceeds

697.18

Change in Location of Chief Executive Office; Inventory and Equipment with Bailees

697.19

Securities Accounts

707.20

Financial Covenants

707.21

MCI Agreement

718.

EVENTS OF DEFAULT

719.

LENDERS RIGHTS AND REMEDIES

739.1

Rights and Remedies

739.2

Remedies Cumulative

7610.

TAXES AND EXPENSES

7611.

WAIVERS; INDEMNIFICATION

7611.1

Demand; Protest

7611.2

Lenders Liability for Collateral

7711.3

Indemnification

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12.

NOTICES

7713.

CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER

7914.

ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS

7914.1

Assignments and Participations

7914.2

Successors

8115.

AMENDMENTS; WAIVERS.

8215.1

Amendments and Waivers

8215.2

No Waivers; Cumulative Remedies

8216.

GENERAL PROVISIONS

8216.1

Effectiveness

8216.2

Section Headings

8216.3

Interpretation

8216.4

Severability of Provisions

8216.5

Withholding Taxes

8316.6

Amendments in Writing

8316.7

Counterparts; Telefacsimile Execution

8316.8

Revival and Reinstatement of Obligations

8316.9

Integration

8416.10

Confidentiality

84







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EXHIBITS AND SCHEDULES





Exhibit B-1

Form of Borrowing Base CertificateExhibit C-1

Form of Compliance CertificateExhibit L-1

Form of LIBOR NoticeSchedule C-1

Commercial Tort ClaimsSchedule C-2

Operating Leases to be Converted to Capital LeasesSchedule D-1

Designated AccountSchedule L-1

Lenders AccountSchedule P-1

Permitted LiensSchedule 2.7(a)

Cash Management BanksSchedule 5.5

Locations of Inventory and EquipmentSchedule 5.7

Chief Executive Office; FEINSchedule 5.8(b)

Capitalization of BorrowerSchedule 5.8(c)

Capitalization of Borrowers SubsidiariesSchedule 5.10

LitigationSchedule 5.14

Environmental MattersSchedule 5.16(a)

Intellectual PropertySchedule 5.16(b)

Source Code LicensesSchedule 5.18

Demand Deposit AccountsSchedule 5.20

Permitted Indebtedness




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LOAN AND SECURITY AGREEMENT





THIS LOAN AND SECURITY AGREEMENT (this Agreement), is entered into as of September 4, 2002, between FOOTHILL
CAPITAL CORPORATION, a California corporation (Lender) and RMH TELESERVICES, INC., a Pennsylvania corporation (Borrower).





The parties agree as follows:





1.    DEFINITIONS AND CONSTRUCTION.





1.1    Definitions.    As used in this Agreement, the following terms shall have the following definitions:





Account Debtor means any Person who is or who may become obligated under, with respect to, or on account of, an Account, chattel paper, or a General
Intangible.





Accounts means all of Borrowers now owned or hereafter acquired right,
title, and interest with respect to accounts (as that term is defined in the Code), and any and all supporting obligations in respect thereof.





ACH Transactions means any cash management or related services (including the Automated Clearing House processing of electronic funds transfers through the direct Federal Reserve
Fedline system) provided by Wells Fargo or its Affiliates for the account of Borrower or its Subsidiaries.





Additional Documents has the meaning set forth in Section 4.4.





Additional Subsidiary has the meaning set forth in Section 6.19.





Advances has the meaning set forth in Section 2.1(a).





Affiliate means, as applied to any Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with, such Person. For purposes of this definition,
control means the possession, directly or indirectly, of the power to direct the management and policies of a Person, whether through the ownership of Stock, by contract, or otherwise; provided, however, that, for purposes
of the definition of Eligible Billed Accounts, Eligible Unbilled Accounts and Section 7.14 hereof: (a) any Person which owns directly or indirectly 10% or more of the securities having ordinary voting power for the election of directors or
other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall be deemed to control such Person, (b) each director (or comparable




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manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership or joint venture in which a Person is a partner
or joint venturer shall be deemed to be an Affiliate of such Person; provided, further, however, that, notwithstanding the foregoing, for purposes of clause (c) of the definition of both Eligible Billed Accounts and Eligible
Unbilled Accounts, with respect to the following entities, the 10% threshold in the immediately preceding proviso shall be deemed to be 15%: Safeco Asset Management, RS Investments, Wellington Management and any other entities subsequently agreed to
in writing by Lender in its Permitted Discretion.





Agreement has the meaning set forth in the
preamble hereto.





Applicable Prepayment Premium means, as of any date of determination, an
amount equal to (a) during the period of time from and after the date of the execution and delivery of this Agreement up to but not including the date that is the first anniversary of the Closing Date, 3.00% times the Maximum Revolver Amount,
(b) during the period of time from and including the date that is the first anniversary of the Closing Date up to but not including the date that is the second anniversary of the Closing Date, 2.00% times of the Maximum Revolver Amount, and
(c) during the period of time from and including the date that is the second anniversary of the Closing Date up to but not including the Maturity Date, 1.00% times the Maximum Revolver Amount.





Assignee has the meaning set forth in Section 14.1(a).





Authorized Person means any officer or other employee of Borrower.





Availability means, as of any date of determination (if such date is a Business Day, and determined at the close of business on the immediately preceding
Business Day, if such date of determination is not a Business Day) the amount that Borrower is entitled to borrow as Advances under Section 2.1 (after giving effect to all then outstanding Obligations (other than Bank Products Obligations)
and all sublimits and reserves applicable hereunder).





Bank Product Agreements means those
agreements entered into from time to time by Borrower or its Subsidiaries in connection with any of the Bank Products.





Bank Product Obligations means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by Borrower or its Subsidiaries to Wells Fargo or its Affiliates pursuant to or evidenced
by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all such amounts that Borrower is
obligated to reimburse to Lender as a result of Lender purchasing participations or executing indemnities or reimbursement obligations with respect to the Bank Products provided to Borrower or its Subsidiaries pursuant to the Bank Product
Agreements.




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Bank Products means any service or facility extended to
Borrower or its Subsidiaries by Wells Fargo or any Affiliate of Wells Fargo including: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, (f) cash management, including controlled
disbursement, accounts or services, or (g) Hedge Agreements.





Bank Product Reserves means, as
of any date of determination, the amount of reserves that Lender has established (based upon Wells Fargos or its Affiliates reasonable determination of the credit exposure in respect of then extant Bank Products) for Bank Products then
provided or outstanding.





Bankruptcy Code means the United States Bankruptcy Code, as in effect
from time to time.





Base LIBOR Rate means the rate per annum, determined by Lender in
accordance with its customary procedures, as published by Bloomberg, L.P. or, if the Bloomberg, L.P. service is not then used by Lender, utilizing such other electronic or other quotation sources as it considers appropriate (rounded upwards, if
necessary, to the next 1/16%), on the basis of the rates at which Dollar deposits are offered to major banks in the London interbank market on or about 2:00 p.m. (New York time) two (2) Business Days prior to the commencement of the applicable
Interest Period, for a term and in amounts comparable to the Interest Period and amount of the LIBOR Rate Loan requested by Borrower in accordance with this Agreement, which determination shall be conclusive in the absence of manifest error.





Base Rate means, the rate of interest announced within Wells Fargo at its principal office in
San Francisco as its prime rate, with the understanding that the prime rate is one of Wells Fargos base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publication or publications as Wells Fargo may designate.





Base Rate Loan means each portion of an Advance that bears interest at a rate determined by reference to the Base Rate.





Base Rate Margin means 1.50 percentage points; provided, however, that if, as of any fiscal year of
Borrower commencing with Borrowers fiscal year ended September 30, 2002, EBITDA for such fiscal year equals or exceeds the amounts set forth in the following table, then commencing on the first day of the month immediately following the
receipt of the applicable Section 6.3 financial statements, Base Rate Margin shall have the meaning as set forth in the following table. The determination of EBITDA for purposes of this definition shall be based upon the fiscal
year-end audited financial statements delivered to Lender pursuant to Section 6.3(b). Notwithstanding the foregoing, if Borrower fails to deliver to Lender the financial statements required under Section 6.3, then the Base




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Rate Margin shall mean 1.50 percentage points, until such time as Borrower delivers such financial
statements.





Prior Fiscal Year EBITDA

Base Rate Margin means:at least $10,000,000 but less than $25,000,000

0.50 percentage points$25,000,000 or greater

0.00 percentage points





Benefit Plan means a defined benefit
plan (as defined in Section 3(35) of ERISA) for which Borrower or any Subsidiary or ERISA Affiliate of Borrower has been an employer (as defined in Section 3(5) of ERISA) within the past six (6) years.





Board of Directors means the board of directors (or comparable managers) of Borrower or any committee thereof duly
authorized to act on behalf of the board.





Books means Borrowers and its
Subsidiaries now owned or hereafter acquired books and records (including all of its Records indicating, summarizing, or evidencing its assets (including the Collateral) or liabilities, all of Borrowers or its Subsidiaries Records
relating to its or their business operations or financial condition, and all of its or their goods or General Intangibles related to such information).





Borrower has the meaning set forth in the preamble to this Agreement.





Borrower Intellectual Property Right means any Intellectual Property Right owned, held, licensed, used or held for use by Borrower or any of its Subsidiaries.





Borrowing means a borrowing hereunder of an Advance.





Borrowing Base has the meaning set forth in Section 2.1.





Borrowing Base Certificate means a certificate in the form of Exhibit B-1.





Business Day means any day that is not a Saturday, Sunday, or other day on which national banks are authorized or required to close, except that, if a determination of a Business Day
shall relate to a LIBOR Rate Loan, the term Business Day also shall exclude any day on which banks are closed for dealings in Dollar deposits in the London interbank market.





Capital Lease means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.





Capitalized Lease Obligation means any Indebtedness represented by obligations under a Capital Lease.




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Cash Equivalents means (a) marketable direct obligations
issued or unconditionally guaranteed by the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one (1) year from the date of acquisition thereof, (b) marketable
direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within one (1) year from the date of acquisition thereof and, at the time of acquisition,
having the highest rating obtainable from either S&P or Moodys, (c) commercial paper maturing no more than 270 days from the date of acquisition thereof and, at the time of acquisition, having a rating of A-1 or P-1, or better, from
S&P or Moodys, and (d) certificates of deposit or bankers acceptances maturing within one (1) year from the date of acquisition thereof that are (i) issued by any bank organized under the laws of the United States or any state
thereof which bank has a rating of A or A2, or better, from S&P or Moodys, or (ii) in an amount less than or equal to $100,000 in the aggregate issued by any other bank insured by the Federal Deposit Insurance Corporation.





Cash Management Bank has the meaning set forth in Section 2.7(a).





Cash Management Account has the meaning set forth in Section 2.7(a).





Cash Management Agreements means those certain cash management service agreements, in form and substance satisfactory
to Lender, each of which is among Borrower, Lender, and one of the Cash Management Banks.





Change of
Control means (a) any person or group (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of 25% or more of the Stock of Borrower having the right to vote for the election of members of the Board of Directors; provided, however, that if, as of the time of determination, the Jensen Family Group owns
less than 25% of the Stock of Borrower having the right to vote for the election of members of the Board of Directors, then the 25% threshold in this clause (a) shall be reduced to 15%, or (b) a majority of the members of the Board of Directors do
not constitute Continuing Directors, or (c) Borrower ceases to directly own and control 100% of the outstanding capital Stock of each of its Subsidiaries extant as of the Closing Date.





Closing Date means the date of the making of the initial Advance (or other extension of credit) hereunder or the date on which Lender sends Borrower a
written notice that each of the conditions precedent set forth in Section 3.1 either have been satisfied or have been waived.





Closing Date Business Plan means the set of Projections of Borrower for the three (3) year period following the Closing Date (on a year by year basis, and for the one (1) year period following the Closing
Date, on a month by month basis), in form and substance (including as to scope and underlying assumptions) satisfactory to Lender.




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Code means the Uniform Commercial Code, as in effect from time
to time in the State of New York.





Collateral means all of Borrowers now owned or
hereafter acquired right, title, and interest in and to each of the following:





(a)  Accounts,





(b)  Books,





(c)  Equipment,





(d)  General Intangibles,





(e)  Inventory,





(f)  Investment Property,





(g)  Negotiable Collateral,





(h)  any commercial tort claims as
that term is defined in the Code, as set forth on Schedule C-1 hereto,





(i)  money or other
assets of Borrower that now or hereafter come into the possession, custody, or control of Lender, and





(j)  the proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance covering any or all of the foregoing, and any and all Accounts, Books, Equipment, General Intangibles,
Inventory, Investment Property, Negotiable Collateral, commercial tort claims, money, deposit accounts, or other tangible or intangible property resulting from the sale, exchange, collection, or other disposition of any of the foregoing,
or any portion thereof or interest therein, and the proceeds thereof.





Collateral Access
Agreement means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in the Equipment or
Inventory, in each case, in form and substance satisfactory to Lender.





Collections means
allcash, checks, notes, instruments, and other items of payment (including insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds) of Borrower.





Compliance Certificate means a certificate substantially in the form of Exhibit C-1 delivered by the chief financial officer of Borrower to
Lender.




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Continuing Director means (a) any member of the Board of
Directors who was a director (or comparable manager) of Borrower on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was appointed or nominated for election to the
Board of Directors by a majority of the Continuing Directors, but excluding any such individual originally proposed for election in opposition to the Board of Directors in office at the Closing Date in an actual or threatened election contest
relating to the election of the directors (or comparable managers) of Borrower (as such terms are used in Rule 14a-11 under the Exchange Act) and whose initial assumption of office resulted from such contest or the settlement thereof.





Control Agreement means a control agreement, in form and substance satisfactory to Lender, executed and
delivered by Borrower, Lender, and the applicable securities intermediary with respect to a Securities Account or the applicable bank with respect to a deposit account.





Copyrights means all unregistered and registered copyrights owned or licensed by Borrower or its Subsidiaries in any and all schematics, technology,
know-how, computer software programs or applications (in both source code and object form code), documents, items, materials and all other works that are protectable under copyright law, and all registrations, applications for registrations,
renewals and extensions thereof, whether now existing or acquired in the future.





Copyright Security
Agreement means a copyright security agreement executed and delivered by Borrower, Guarantors and Lender, the form and substance of which is satisfactory to Lender.





Daily Balance means, with respect to each day during the term of this Agreement, the amount of an Obligation owed at the end of such day.





DDA means any checking or other demand deposit account maintained by Borrower.





Default means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be
an Event of Default.





Designated Account means that certain DDA of Borrower identified on
Schedule D-1.





Designated Account Bank means PNC Bank, National Association, whose
office is located at 1600 Market Street, Philadelphia, PA 19103, and whose ABA number is 031000053.





Dilution means, as of any date of determination, a percentage, based upon the experience of the immediately prior 360 days, that is the result of dividing the Dollar




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amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items
with respect to the Accounts during such period, by (b) Borrowers billings with respect to Accounts during such period (excluding extraordinary items).





Dilution Reserve means, as of any date of determination, an amount sufficient to reduce the advance rate against Eligible Accounts by one percentage point for each percentage point
by which Dilution is in excess of 5%.





Disbursement Letter means an instructional letter
executed and delivered by Borrower to Lender regarding the extensions of credit to be made on the Closing Date, the form and substance of which is satisfactory to Lender.





Dollars or $ means United States dollars.





Due Diligence Letter means the due diligence letter sent by Lenders counsel to Borrower, together with Borrowers completed responses to the inquiries set forth therein,
the form and substance of such responses to be satisfactory to Lender.





EBITDA means, with
respect to any fiscal period, Borrowers and its Subsidiaries consolidated net earnings (or loss), minus extraordinary gains, plus extraordinary non-cash losses in an aggregate amount not to exceed $5,000,000, interest
expense, income taxes, and depreciation and amortization for such period, as determined in accordance with GAAP; provided, however, that if the assets subject to the operating leases listed on Schedule C-2 become subject to
Capital Leases, then the principal portion of the payments under such Capital Leases shall be deducted in determining EBITDA.





Eligible Accounts means, collectively, Eligible Billed Accounts and Eligible Unbilled Accounts.





Eligible Billed Accounts means those Accounts created by Borrower in the ordinary course of its business, that arise out of Borrowers rendition of services (such services having been fully performed
and rendered), with respect to which the relevant Account Debtors have been invoiced in writing by Borrower, that comply with each of the representations and warranties respecting Eligible Accounts made by Borrower in the Loan Documents, and that
are not excluded as ineligible by virtue of one or more of the criteria set forth below; provided, however, that such criteria may be fixed and revised from time to time by Lender in Lenders Permitted Discretion to address the
results of any audit performed by Lender from time to time after the Closing Date. In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits and unapplied cash remitted to Borrower. Eligible Billed
Accounts shall not include the following:





(a)  Accounts that the Account Debtor has failed to pay
within 60 days of the original due date or Accounts with selling terms of more than 45 days (provided, however, that Accounts for which Nextel Communications, Inc. is the Account




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Debtor shall be excluded from Eligible Billed Accounts unless they (i) contain selling terms of 30 days
or less and (ii) have been paid within 30 days of the original due date),





(b)  Accounts owed by an
Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,





(c)  Accounts with respect to which the Account Debtor is an employee, Affiliate, or agent of Borrower,





(d)  Accounts arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on
approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional,





(e)  Accounts that are not payable in Dollars (other than Eligible Canadian Accounts),





(f)  Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States (other than Eligible Canadian Accounts), or (ii) is not organized under the laws of the
United States or any state thereof (other than Eligible Canadian Accounts), or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department,
agency, public corporation, or other instrumentality thereof, unless (y) the Account is supported by an irrevocable letter of credit satisfactory to Lender (as to form, substance, and issuer or domestic confirming bank) that has been delivered to
Lender and is directly drawable by Lender, or (z) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to Lender,





(g)  Accounts with respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United States
(exclusive, however, of Accounts with respect to which Borrower has complied, to the reasonable satisfaction of Lender, with the Assignment of Claims Act, 31 USC § 3727), or (ii) any state of the United States (exclusive, however, of (y)
Accounts owed by any state that does not have a statutory counterpart to the Assignment of Claims Act, or (z) Accounts owed by any state that does have a statutory counterpart to the Assignment of Claims Act as to which Borrower has complied to
Lenders satisfaction),





(h)  Accounts with respect to which the Account Debtor is a creditor of
Borrower, has or has asserted a right of setoff (except to the extent that the Account Debtor has executed a no offset letter in form and substance acceptable to Lender and its counsel), has disputed its liability, or has made any claim
with respect to its obligation to pay the Account, to the extent of such claim, right of setoff, or dispute,




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(i)  Accounts with respect to an Account Debtor whose total
obligations owing to Borrower exceed 10% (such percentage as applied to a particular Account Debtor being subject to reduction by Lender in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible
Accounts, to the extent of the obligations owing by such Account Debtor in excess of such percentage; provided, however, that subject to Lenders ability to adjust such percentage limitations in its Permitted Discretion, (a) as to
the following Account Debtors, the percentage limitation of 15% (in lieu of 10%) shall apply for purposes hereof: Citicorp, Inc., Nextel Communications and Aegon USA, Inc., and (b) as to the following Account Debtors, the percentage limitation of
20% (in lieu of 10%) shall apply for purposes hereof: Microsoft Corporation and AT&T Corp.,





(j)  Accounts with respect to which an Account Debtor (including but not limited to MCI and its Affiliates) is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which Borrower has
received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor,





(k)  Accounts with respect to which the Account Debtor is located in the states of New Jersey, Minnesota, or West Virginia (or any other state that requires a creditor to file a business activity report or similar document
in order to bring suit or otherwise enforce its remedies against such Account Debtor in the courts or through any judicial process of such state), unless Borrower has qualified to do business in New Jersey, Minnesota, West Virginia, or such other
states, or has filed a business activities report with the applicable division of taxation, the department of revenue, or with such other state offices, as appropriate, for the then-current year, or is exempt from such filing requirement,





(l)  Accounts, the collection of which, Lender, in its Permitted Discretion, believes to be doubtful
by reason of the Account Debtors financial condition,





(m)  Accounts that are not subject to a
valid and perfected first priority Lenders Lien,





(n)  Accounts with respect to which the
services giving rise to such Account have not been performed and billed to the Account Debtor, or





(o)  Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by Borrower of the subject contract for goods or services, or





(p)  Accounts that represent goods sold or services rendered to MCI or its Affiliates.





Eligible Canadian Accounts means those Accounts created by Borrower that are denominated in Canadian dollars, in an
aggregate amount not to exceed U.S.$1,500,000




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at any time, with respect to which the Account Debtor either (i) maintains its chief executive office in
Canada or (ii) is organized under the laws of Canada or any political subdivision thereof; provided that such Accounts (x) are not otherwise ineligible in accordance with the definition of Eligible Billed Accounts or
Eligible Unbilled Accounts, as the case may be, and (y) are otherwise acceptable to Lender in all respects.





Eligible Unbilled Accounts means those Accounts created by Borrower in the ordinary course of its business that arise out of Borrowers rendition of services (such services having been fully performed and
rendered), with respect to which the relevant Account Debtors have not been invoiced in writing by Borrower, that comply with each of the representations and warranties respecting Eligible Accounts made by Borrower in the Loan Documents, and that
are not excluded as ineligible by virtue of one or more of the criteria set forth below; provided,however, that such criteria may be fixed and revised from time to time by Lender in Lenders Permitted Discretion to address the
results of any audit performed by Lender from time to time after the Closing Date. In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits and unapplied cash remitted to Borrower. Eligible Unbilled
Accounts shall not include the following:





(a)  Accounts that remain outstanding after the fifteenth
(15th) day of the month following the month in which the relevant services which were actually rendered,





(b)  Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,





(c)  Accounts with respect to which the Account Debtor is an employee, Affiliate, or agent of Borrower,





(d)  Accounts arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed
sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional,





(e)  Accounts that are not payable in Dollars (other than Eligible Canadian Accounts),





(f)  Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States (other than Eligible Canadian Accounts), or (ii) is not
organized under the laws of the United States or any state thereof (other than Eligible Canadian Accounts), or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision
thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (y) the Account is supported by an irrevocable letter of credit




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satisfactory to Lender (as to form, substance, and issuer or domestic confirming bank) that has been
delivered to Lender and is directly drawable by Lender, or (z) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to Lender,





(g)  Accounts with respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United States
(exclusive, however, of Accounts with respect to which Borrower has complied, to the reasonable satisfaction of Lender, with the Assignment of Claims Act, 31 USC § 3727), or (ii) any state of the United States (exclusive, however, of (y)
Accounts owed by any state that does not have a statutory counterpart to the Assignment of Claims Act, or (z) Accounts owed by any state that does have a statutory counterpart to the Assignment of Claims Act as to which Borrower has complied to
Lenders satisfaction),





(h)  Accounts with respect to which the Account Debtor is a creditor of
Borrower, has or has asserted a right of setoff (except to the extent that the Account Debtor has executed a no offset letter in form and substance acceptable to Lender and its counsel), has disputed its liability, or has made any claim
with respect to its obligation to pay the Account, to the extent of such claim, right of setoff, or dispute,





(i)  Accounts with respect to an Account Debtor whose total obligations owing to Borrower exceed 10% (such percentage as applied to a particular Account Debtor being subject to reduction by Lender in its Permitted
Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts, to the extent of the obligations owing by such Account Debtor in excess of such percentage; provided, however, that subject to
Lenders ability to adjust such percentage limitations in its Permitted Discretion, (a) as to the following Account Debtors, the percentage limitation of 15% (in lieu of 10%) shall apply for purposes hereof: Citicorp, Inc., Nextel
Communications and Aegon USA, Inc., and (b) as to the following Account Debtors, the percentage limitation of 20% (in lieu of 10%) shall apply for purposes hereof: Microsoft Corporation and AT&T Corp.,





(j)  Accounts with respect to which an Account Debtor (including but not limited to MCI and its Affiliates) is subject to an
Insolvency Proceeding, is not Solvent, has gone out of business, or as to which Borrower has received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor,





(k)  Accounts with respect to which the Account Debtor is located in the states of New Jersey, Minnesota, or West Virginia (or
any other state that requires a creditor to file a business activity report or similar document in order to bring suit or otherwise enforce its remedies against such Account Debtor in the courts or through any judicial process of such state), unless
Borrower has qualified to do business in New Jersey, Minnesota, West Virginia, or such other states, or has filed a business activities report with




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the applicable division of taxation, the department of revenue, or with such other state offices, as
appropriate, for the then-current year, or is exempt from such filing requirement,





(l)  Accounts, the
collection of which, Lender, in its Permitted Discretion, believes to be doubtful by reason of the Account Debtors financial condition,





(m)  Accounts that are not subject to a valid and perfected first priority Lenders Lien,





(n)  Accounts with respect to which the services giving rise to such Account have not been performed for the Account Debtor,





(o)  Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by Borrower of
the subject contract for goods or services, or





(p)  Accounts that represent goods sold or services
rendered to MCI or its Affiliates.





Environmental Actions means any complaint, summons,
citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter, or other communication from any Governmental Authority, or any third party involving violations of Environmental Laws or
releases of Hazardous Materials from (a) any assets, properties, or businesses of Borrower or any predecessor in interest, (b) from adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous Materials generated
by Borrower or any predecessor in interest.





Environmental Law means any applicable federal,
state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any
judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, to the extent binding on Borrower, relating to the environment, employee health and safety, or Hazardous Materials,
including CERCLA; RCRA; the Federal Water Pollution Control Act, 33 USC § 1251 et seq.; the Toxic Substances Control Act, 15 USC § 2601 et seq.; the Clean Air Act, 42 USC § 7401 et seq.; the
Safe Drinking Water Act, 42 USC § 3803 et seq.; the Oil Pollution Act of 1990, 33 USC § 2701 et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42 USC § 11001 et
seq.; the Hazardous Material Transportation Act, 49 USC § 1801 et seq.; and the Occupational Safety and Health Act, 29 USC §651 et seq. (to the extent it regulates occupational exposure to Hazardous
Materials); any state and local or foreign counterparts or equivalents, in each case as amended from time to time.





Environmental Liabilities and Costs means all liabilities, monetary obligations, Remedial Actions, losses, damages, punitive damages, consequential damages,




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treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of
counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand by any Governmental Authority or any third party, and which relate to any
Environmental Action.





Environmental Lien means any Lien in favor of any Governmental Authority
for Environmental Liabilities and Costs.





Equipment means all of Borrowers now owned or
hereafter acquired right, title, and interest with respect to equipment, machinery, machine tools, motors, furniture, furnishings, fixtures, vehicles (including motor vehicles), tools, parts, goods (other than consumer goods, farm products, or
Inventory), wherever located, including all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing.





ERISA means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto.





ERISA Affiliate means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as
the employees of Borrower under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of Borrower under IRC Section 414(c), (c) solely for purposes of Section 302
of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of which Borrower is a member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the
IRC, any Person subject to ERISA that is a party to an arrangement with Borrower and whose employees are aggregated with the employees of Borrower under IRC Section 414(o).





Event of Default has the meaning set forth in Section 8.





Excess Availability means the amount, as of the date any determination thereof is to be made, equal to Availability minus the aggregate amount, if any, of all trade payables
of Borrower aged in excess of historical levels with respect thereto and all book overdrafts in excess of historical practices with respect thereto, in each case as determined by Lender in its Permitted Discretion.





Exchange Act means the Securities Exchange Act of 1934, as in effect from time to time.





Existing Lender means PNC Bank, N.A., a national banking association.




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Fee Letter means that certain fee letter, dated as of even
date herewith, between Borrower and Lender, in form and substance satisfactory to Lender.





FEIN
means Federal Employer Identification Number.





Funding Date means the date on which a Borrowing
occurs.





Funding Losses has the meaning set forth in Section 2.13(b)(ii).





GAAP means generally accepted accounting principles as in effect from time to time in the United States,
consistently applied.





General Intangibles means all of Borrowers or its
Subsidiaries now owned or hereafter acquired right, title, and interest with respect to general intangibles (including payment intangibles, contract rights (excluding contracts with respect to which the valid grant of a security interest or
lien therein to Lender is prohibited and such prohibition has not been or is not waived or the consent of the other party to such contract has not been or is not otherwise obtained or under applicable law such prohibition cannot be waived;
provided, that the foregoing exclusion shall in no way be construed to apply if any such prohibition is unenforceable under the Code or other applicable law or construed so as to limit, impair or otherwise affect Lenders unconditional
continuing security interests in and liens upon any rights or interests of Borrower and its Subsidiaries in or to the proceeds thereof, including monies due or to become due under any such contract (including any Accounts)), rights to payment,
rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names, trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders, customer lists, monies due or recoverable from
pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, infringement claims, computer programs, information contained on computer disks or tapes, software, literature, reports, catalogs, money,
deposit accounts, insurance premium rebates, tax refunds, and tax refund claims), and any and all supporting obligations in respect thereof, and any other personal property other than goods, Accounts, Investment Property, and Negotiable Collateral.





Governing Documents means, with respect to any Person, the certificate or articles of
incorporation, by-laws, or other organizational documents of such Person.





Governmental
Authority means any federal, state, local, or other governmental or administrative body, instrumentality, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar
dispute-resolving panel or body.





Guarantors mean each of Teleservices Management Company, a
Delaware corporation; Teleservices Technology Company, a Delaware corporation; RMH Interactive Technologies Company, a Delaware corporation; RMH Teleservices International, Inc., a




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corporation organized under the laws of New Brunswick, Canada; 515963 N.B. Inc., a corporation organized
under the laws of New Brunswick, Canada; 516131 N.B. Inc., a corporation organized under the laws of New Brunswick, Canada; and any and all Additional Subsidiaries.





Guarantor Security Agreement means a security agreement executed and delivered by Guarantors and Lender, the form and substance of which is satisfactory
to Lender.





Guaranty means that certain general continuing guaranty executed and delivered by
each Guarantor in favor of Lender, in form and substance satisfactory to Lender.





Hazardous
Materials means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations as hazardous substances, hazardous materials, hazardous wastes,
toxic substances, or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or EP
toxicity, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil,
natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated
biphenyls in excess of 50 parts per million.





Hedge Agreement means any and all transactions,
agreements, or documents now existing or hereafter entered into between Borrower or its Subsidiaries and Wells Fargo or its Affiliates, which provide for an interest rate, credit, commodity or equity swap, cap, floor, collar, forward foreign
exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging Borrowers or its Subsidiaries exposure to
fluctuations in interest or exchange rates, loan, credit exchange, security or currency valuations or commodity prices.





Indebtedness means (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of
credit, bankers acceptances, interest rate swaps, or other financial products, (c) all obligations under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of Borrower or its Subsidiaries, irrespective of
whether such obligation or liability is assumed, (e) all obligations for the deferred purchase price of assets (other than trade debt incurred in the ordinary course of business and repayable in accordance with customary trade practices), and (f)
any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person.




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Indemnified Liabilities has the meaning set forth in
Section 11.3.





Indemnified Person has the meaning set forth in Section 11.3.





Insolvency Proceeding means any proceeding commenced by or against any Person under any
provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking
reorganization, arrangement, or other similar relief.





Intangible Assets means, with respect to
any Person, that portion of the book value of all of such Persons assets that would be treated as intangibles under GAAP.





Intellectual Property Right means any trademark, copyright, service mark, trade name, patent (including any registrations or applications for registration of any of the foregoing), license, or trade secret
including, but not limited to, any such legal rights included in any schematics, technology, know-how, computer software programs or applications (in both source code and object code form) or in other tangible or intangible information or material.





Intercompany Subordination Agreement means a subordination agreement executed and delivered by
Borrower, its Subsidiaries and Lender, the form and substance of which is satisfactory to Lender.





Interest Period means, with respect to each LIBOR Rate Loan, a period commencing on the date of the making of such LIBOR Rate Loan and ending one (1), two (2), or three (3) months thereafter; provided,
however, that (a) interest shall accrue at the applicable rate based upon the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the day on which such Interest Period expires, (b) if any Interest Period
that would end on a day that is not a Business Day shall be extended to the next succeeding Business Day, unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day, (c)
with respect to an Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period), the Interest Period shall end on
the last Business Day of the calendar month that is one (1), two (2), or three (3) months after the date on which the Interest Period began, as applicable, and (d) Borrower may not elect an Interest Period which will end after the Maturity Date.





Inventory means all Borrowers now owned or hereafter acquired right, title, and interest
with respect to inventory, including goods held for sale or lease or to be furnished under a contract of service, goods that are leased by Borrower as lessor, goods that are furnished by Borrower under a contract of service, and raw materials, work
in process, or materials used or consumed in Borrowers business.




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Investment means, with respect to any Person, any investment
by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary
course of business, and (b) bona fide Accounts arising in the ordinary course of business consistent with past practices), purchases or other acquisitions for consideration of Indebtedness or Stock, and any other items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.





Investment
Property means all of Borrowers now owned or hereafter acquired right, title, and interest with respect to investment property as that term is defined in the Code, and any and all supporting obligations in respect
thereof.





IRC means the Internal Revenue Code of 1986, as in effect from time to time.





Jensen Family Group means (a) Jeff Jensen, who currently resides at 7802 Leesburg Drive,
Colleyville, TX 76034, (b) any member of Jeff Jensens immediate family (determined in accordance with Rule l6a-1(e) of the Exchange Act) either during Jeff Jensens lifetime or by will or the laws of descent and distribution, (c) any
trust as to which Jeff Jensen or a member of (or members) of his immediate family is the sole beneficiary, (d) any trust as to which Jeff Jensen or a member of (or members) of his immediate family is the settlor(s) and the sole trustee(s) with sole
power to revoke, (e) any entity of which Jeff Jensen or a member of (or members) of his immediate family beneficially owns (as defined in Rules 13d-3 under the Exchange Act), directly or indirectly, 100% of the voting equity interests
thereof and/or (f) any charitable trust, foundation or corporation under Section 501(c)(3) of the IRC that is funded and controlled (as defined in the definition of Affiliate hereunder) by Jeff Jensen or a member of (or members) of his
immediate family.





L/C has the meaning set forth in Section 2.12(a).





L/C Disbursement means a payment made by Lender pursuant to a Letter of Credit.





L/C Undertaking has the meaning set forth in Section 2.12(a).





Lender has the meaning set forth in the preamble to this Agreement.





Lender Expenses means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by
Borrower under any of the Loan Documents that are paid or incurred by Lender, (b) fees or charges paid or incurred by Lender in connection with Lenders transactions with Borrower, including, fees or charges for photocopying, notarization,
couriers and messengers, telecommunication, public record searches (including tax lien, litigation, and UCC searches and including searches with the patent and trademark office, the copyright office, or the department of motor vehicles), filing,
recording,




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publication, appraisal (including periodic Collateral appraisals or business valuations to the extent of
the fees and charges (and up to the amount of any limitation) contained in this Agreement), real estate surveys, real estate title policies and endorsements, and environmental audits, (c) costs and expenses incurred by Lender in the disbursement of
funds to Borrower (by wire transfer or otherwise), (d) charges paid or incurred by Lender resulting from the dishonor of checks, (e) reasonable costs and expenses paid or incurred by Lender to correct any default or enforce any provision of the Loan
Documents, or in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (f) audit fees
and expenses of Lender related to audit examinations of the Books to the extent of the fees and charges (and up to the amount of any limitation) contained in this Agreement, (g) reasonable costs and expenses of third party claims or any other suit
paid or incurred by Lender in enforcing or defending the Loan Documents or in connection with the transactions contemplated by the Loan Documents or Lenders relationship with Borrower or any guarantor of the Obligations, (h) Lenders
reasonable fees and expenses (including reasonable attorneys fees) incurred in advising, structuring, drafting, reviewing, administering, or amending the Loan Documents, and (i) Lenders reasonable fees and expenses (including reasonable
attorneys fees) incurred in terminating, enforcing (including reasonable attorneys fees and expenses incurred in connection with a workout, a restructuring, or an Insolvency Proceeding concerning Borrower or in exercising
rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning the Collateral.





Lender-Related Person means Lender, Lenders Affiliates, and the officers, directors, employees, and agents of Lender.





Lenders Account means the account identified on Schedule L-1.





Lenders Liens means the Liens granted by Borrower to Lender under this Agreement or the other Loan Documents.





Letter of Credit means an L/C or an L/C Undertaking, as the context requires.





Letter of Credit Usage means, as of any date of determination, the aggregate undrawn amount of all
outstanding Letters of Credit plus 100% of the amount of outstanding time drafts accepted by an Underlying Issuer as a result of drawings under Underlying Letters of Credit.





LIBOR Deadline has the meaning set forth in Section 2.13(b)(i).





LIBOR Notice means a written notice in the form of Exhibit L-1.




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LIBOR Rate means, for each Interest Period for each LIBOR Rate
Loan, the rate per annum determined by Lender (rounded upwards, if necessary, to the next 1/16%) by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be
adjusted on and as of the effective day of any change in the Reserve Percentage.





LIBOR Rate
Loan means each portion of an Advance that bears interest at a rate determined by reference to the LIBOR Rate.





LIBOR Rate Margin means 2.75 percentage points.





Lien means
any interest in an asset securing an obligation owed to, or a claim by, any Person other than the owner of the asset, whether such interest shall be based on the common law, statute, or contract, whether such interest shall be recorded or perfected,
and whether such interest shall be contingent upon the occurrence of some future event or events or the existence of some future circumstance or circumstances, including the lien or security interest arising from a mortgage, deed of trust,
encumbrance, pledge, hypothecation, assignment, deposit arrangement, security agreement, conditional sale or trust receipt, or from a lease, consignment, or bailment for security purposes and also including reservations, exceptions, encroachments,
easements, rights-of-way, covenants, conditions, restrictions, leases, and other title exceptions and encumbrances affecting Real Property.





Loan Account has the meaning set forth in Section 2.10.





Loan Documents means this Agreement, the Bank Product Agreements, the Cash Management Agreements, the Control Agreements, the Copyright Security Agreement, the Disbursement Letter, the Due Diligence Letter, the Fee
Letter, the Guarantor Security Agreement, the Guaranty, the Intercompany Subordination Agreement, the Letters of Credit, the Officers Certificate, the Patent Security Agreement, the Securities Pledge Agreement, the Trademark Security
Agreement, any note or notes executed by Borrower in connection with this Agreement and payable to Lender, and any other agreement entered into, now or in the future, by Borrower and Lender in connection with this Agreement.





Material Adverse Change means (a) a material adverse change in the business, operations, results of operations, assets,
liabilities or condition (financial or otherwise) of Borrower and the Guarantors, taken as a whole, (b) a material impairment of Borrowers ability to perform its obligations under the Loan Documents to which it is a party or of Lenders
ability to enforce the Obligations or realize upon the Collateral, or (c) a material impairment of the enforceability or priority of the Lenders Liens with respect to the Collateral as a result of an action or failure to act on the part of
Borrower.





Maturity Date has the meaning set forth in Section 3.4.





Maximum Revolver Amount means $25,000,000.




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MCI means, as applicable, MCI Communications Corporation, MCI
Worldcom Communications, Inc. and/or MCI Worldcom Network Services, Inc., each a subsidiary of Worldcom, Inc.





MCI Agreement means, collectively, the Amended and Restated Agreement for Independent Verification of Telemarketing Sales dated as of July 8, 1999 by and between MCI Worldcom Network Services, Inc. and Borrower, as
amended, the Call Center Services Agreement dated as of March 16, 2001 by and between MCI Worldcom Communications, Inc. and Borrower, as amended, and the letter agreement dated August 1, 2002 by and between Borrower and MCI Worldcom Communications,
Inc.





MCI Bankruptcy means the cases under the Bankruptcy Code that have been filed by MCI,
Worldcom, Inc. and their Affiliates.





Negotiable Collateral means all of Borrowers now
owned and hereafter acquired right, title, and interest with respect to letters of credit, letter of credit rights, instruments, promissory notes, drafts, documents, and chattel paper (including electronic chattel paper and tangible chattel paper),
and any and all supporting obligations in respect thereof.





Obligations means (a) all loans,
Advances, debts, principal, interest (including any interest that, but for the provisions of the Bankruptcy Code, would have accrued), contingent reimbursement obligations with respect to outstanding letters of credit, premiums, liabilities
(including all amounts charged to Borrowers Loan Account pursuant hereto), obligations, fees (including the fees provided for in the Fee Letter), charges, costs, Lender Expenses (including any fees or expenses that, but for the provisions of
the Bankruptcy Code, would have accrued), lease payments, guaranties, covenants, and duties of any kind and description owing by Borrower to Lender pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money,
whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all Lender Expenses that Borrower is required to pay or reimburse by the Loan Documents, by
law, or otherwise, and (b) all Bank Product Obligations. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all amendments, changes, extensions, modifications, renewals, replacements, substitutions, and
supplements, thereto and thereof, as applicable, both prior and subsequent to any Insolvency Proceeding.





Officers Certificate means the representations and warranties of officers form submitted by Lender to Borrower, together with Borrowers completed responses to the inquiries set forth therein, the form
and substance of such responses to be satisfactory to Lender.





Overadvance has the meaning set
forth in Section 2.5.




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Participant has the meaning set forth in Section
14.1(d).





Patent Security Agreement means a patent security agreement executed and
delivered by Borrower, Guarantors and Lender, the form and substance of which is satisfactory to Lender.





Pay-Off Letter means a letter, in form and substance satisfactory to Lender, from Existing Lender to Lender respecting the amount necessary to repay in full all of the obligations of Borrower owing to Existing
Lender and obtain a release of all of the Liens existing in favor of Existing Lender in and to the assets of Borrower.





Payroll Reserve means, as of any date of determination, a reserve in an amount equal to Borrowers payroll for a two-week period, as determined by Lender.





Permitted Discretion means a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based
lender) business judgment.





Permitted Dispositions means (a) sales or other dispositions by
Borrower or its Subsidiaries of Equipment that is substantially worn, damaged, or obsolete in the ordinary course of business, (b) sales by Borrower or its Subsidiaries of Inventory to buyers in the ordinary course of business, (c) the use or
transfer of money or Cash Equivalents by Borrower or its Subsidiaries in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents, (d) the licensing by Borrower or its Subsidiaries, on a non-exclusive basis, of
patents, trademarks, copyrights, and other Intellectual Property Rights in the ordinary course of business, (e) the sale or assignment of the contract dated as of April 15, 1999, as amended, between Borrower and MCI relating to third party
verification of accounts in Canada, or sale or lease of assets used in connection with such contract, so long as the proceeds of any such sale, assignment or lease are immediately applied in accordance with Section 2.4(b), and (f) sales,
leases or other dispositions by Borrower or its Subsidiaries of other assets having a fair market value not to exceed $500,000 in the aggregate during the term of this Agreement.





Permitted Holders means (a) the Jensen Family Group and (b) Safeco Asset Management, RS Investments and Wellington Management.





Permitted Investments means (a) investments in Cash Equivalents, (b) investments in negotiable instruments for
collection, and (c) advances made in connection with purchases of goods or services in the ordinary course of business, (d) so long as no Default or Event of Default would result from the extension thereof, loans to executive officers of Borrower to
the extent permitted by applicable law and in an aggregate outstanding amount not to exceed $650,000 at any one time, and (e) investments in Additional Subsidiaries in an aggregate amount not to exceed $2,000,000 during the term of this Agreement,
subject to (i) no Default or Event of Default resulting therefrom,




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(ii) compliance with Section 6.19 and (iii) Lender being satisfied, in its sole discretion, that any such investment would not materially
impair the prospects of repayment of the Obligations by Borrower, materially impair the Lenders Liens or materially impair Borrowers creditworthiness.





Permitted Liens means (a) Liens held by Lender, (b) Liens for unpaid taxes that either (i) are not yet delinquent, or (ii) do not constitute an Event of
Default hereunder and are the subject of Permitted Protests, (c) Liens set forth on Schedule P-1, (d) the interests of lessors under operating leases, (e) purchase money Liens or the interests of lessors under Capital Leases to the extent
that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as such Lien attaches only to the asset purchased or acquired and the proceeds thereof, (f) Liens arising by operation of law in favor of warehousemen, landlords,
carriers, mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted
Protests, (g) Liens arising from deposits made in connection with obtaining workers compensation or other unemployment insurance, (h) Liens or deposits to secure performance of bids, tenders, or leases incurred in the ordinary course of
business and not in connection with the borrowing of money, (i) Liens granted as security for surety or appeal bonds in connection with obtaining such bonds in the ordinary course of business, and (j) Liens resulting from any judgment or award that
is not an Event of Default hereunder.





Permitted Protest means the right of Borrower or any of
its Subsidiaries, as applicable, to protest any Lien (other than any such Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental payment, provided that (a) a
reserve with respect to such obligation is established on the Books in such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by Borrower or any of its Subsidiaries, as applicable, in good faith,
and (c) Lender is satisfied that, while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of the Lenders Liens.





Permitted Purchase Money Indebtedness means, as of any date of determination, Purchase Money Indebtedness incurred after the Closing Date.





Person means natural persons, corporations, limited liability companies, limited partnerships, general
partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof.





Personal Property Collateral means all Collateral other than Real Property.





Pledged Notes means the note dated as of October 16, 1997, evidencing the indebtedness of Borrower to
Teleservices Technology Company in the maximum principal amount of $1,010,000 and the note dated as of September 27, 2001, evidencing the




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indebtedness of Borrower to Teleservices Management Company in the maximum principal amount of $200,000,000.





PNC Forbearance means the letter dated as of September 4, 2002 executed by PNC Leasing, LLC (successor of PNC Leasing
Corp.), pursuant to which, among other things, PNC Leasing, LLC has agreed not to enforce its rights arising from Borrowers default under Section 21 of the PNC Lease until March 1, 2003, in form and substance satisfactory to Lender.





PNC Lease means that certain Master Lease Agreement, dated March 3, 1997, as amended, by and
between PNC Leasing Corp. (predecessor of PNC Leasing, LLC) and Borrower, together with all exhibits and schedules thereto.





PNC Lease Reserve means, commencing on the date that is 30 days prior to the expiration of the PNC Forbearance, $500,000; provided that such reserve shall be reduced to $0 by Lender if and when the PNC Lease
is refinanced or replaced in a manner satisfactory in all respects to Lender.





Projections
means Borrowers forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all prepared on a basis consistent with Borrowers historical financial statements, together with appropriate supporting details
and a statement of underlying assumptions.





Purchase Money Indebtedness means Indebtedness
(other than the Obligations, but including Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof.





Real Property means any estates or interests in real property now owned or hereafter acquired
by Borrower and the improvements thereto.





Record means information that is inscribed on a
tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.





Remedial Action means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or
minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) perform any pre-remedial studies, investigations, or
post-remedial operation and maintenance activities, or (d) conduct any other actions authorized by 42 USC § 9601.





Required Availability means Excess Availability and unrestricted cash and Cash Equivalents in an amount of not less than $5,000,000.




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Reserve Percentage means, on any day, for Lender, the maximum
percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor Governmental Authority) for determining the reserve requirements (including any basic, supplemental, marginal, or emergency reserves) that are in effect
on such date with respect to eurocurrency funding (currently referred to as eurocurrency liabilities) of Lender, but so long as Lender is not required or directed under applicable regulations to maintain such reserves, the Reserve
Percentage shall be zero.





Revolver Usage means, as of any date of determination, the sum of
(a) the then extant amount of outstanding Advances, plus (b) the then extant amount of the Letter of Credit Usage.





SEC means the United States Securities and Exchange Commission and any successor thereto.





Securities Account means a securities account as that term is defined in the Code.





Securities Pledge Agreement means a securities pledge agreement, in form and substance satisfactory to Lender, executed and delivered by Borrower, Teleservices Technology Company and Teleservices Management Company
(and, if required pursuant to Section 6.19, an Additional Subsidiary) to Lender with respect to the pledge of the Stock owned by Borrower and the Pledged Notes.





Solvent means, with respect to any Person on a particular date, that such Person is not insolvent (as such term is defined in the Uniform Fraudulent Transfer Act).





Stock means all shares, options, warrants, interests, participations, or other equivalents (regardless of
how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other equity security (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC
under the Exchange Act).





Subsidiary of a Person means a corporation, partnership, limited
liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary voting power to elect a majority of the board of directors (or appoint other comparable managers) of such
corporation, partnership, limited liability company, or other entity.





Taxes has the meaning
set forth in Section 16.5.





Trademark Security Agreement means a trademark security
agreement executed and delivered by Borrower, Guarantors and Lender, the form and substance of which is satisfactory to Lender.




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Underlying Issuer means a third Person which is the
beneficiary of an L/C Undertaking and which has issued a letter of credit at the request of Lender for the benefit of Borrower.





Underlying Letter of Credit means a letter of credit that has been issued by an Underlying Issuer.





Voidable Transfer has the meaning set forth in Section 16.8.





Wells Fargo means Wells Fargo Bank, National Association, a national banking association.





1.2 Accounting Terms.  All accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term financial statements shall include the notes and
schedules thereto. Whenever the term Borrower is used in respect of a financial covenant or a related definition, it shall be understood to mean Borrower and its Subsidiaries on a consolidated basis unless the context clearly requires
otherwise.





1.3 Code.  Any terms used in this Agreement that are defined in the Code shall
be construed and defined as set forth in the Code unless otherwise defined herein.





1.4
Construction.  Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the term
including is not limiting, and the term or has, except where otherwise indicated, the inclusive meaning represented by the phrase and/or. The words hereof, herein, hereby,
hereunder, and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan
Document, as the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement or in the other Loan Documents to any agreement, instrument, or
document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations,
amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). Any reference herein to any Person shall be construed to include such Persons successors and assigns. Any
requirement of a writing contained herein or in the other Loan Documents shall be satisfied by the transmission of a Record and any Record transmitted shall constitute a representation and warranty as to the accuracy and completeness of the
information contained therein.





1.5 Schedules and Exhibits.  All of the schedules and
exhibits attached to this Agreement shall be deemed incorporated herein by reference.




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2.    LOAN AND TERMS OF PAYMENT.





2.1 Revolver Advances





(a)    Subject to the terms and conditions of this Agreement, and during the term of this Agreement, Lender agrees to make advances (Advances) to Borrower in an amount at any one time
outstanding not to exceed an amount equal to the lesser of (i) the Maximum Revolver Amount less the Letter of Credit Usage, or (ii) the Borrowing Base less the Letter of Credit Usage. For purposes of this Agreement, Borrowing
Base, as of any date of determination, shall mean the result of:





(x)the lesser of





(i)    the
sum of





(A)    85% of the amount of Eligible Billed Accounts, lessthe
amount, if any, of the Dilution Reserve allocable to Eligible Billed Accounts, plus





(B)    the lesser of





(I)    75%
of the amount of Eligible Unbilled Accounts less the amount, if any, of the Dilution Reserve allocable to Eligible Unbilled Accounts, and





(II)   50% of the aggregate amount of credit availability created by the foregoing clauses (x)(i)(A) and (x)(i)(B)(I), and





(ii)   an amount equal to Borrowers Collections with respect to Accounts for the immediately preceding 60 day period,
minus





(y)    the sum of (i) the Payroll Reserve, (ii) the Bank
Products Reserve, (iii) the PNC Lease Reserve, and (iv) the aggregate amount of reserves, if any, established by Lender under Section 2.1(b).





(b)    Anything to the contrary in this Section 2.1 notwithstanding, Lender shall have the right to establish reserves in such amounts, and with respect to such matters, as
Lender in its Permitted Discretion shall deem necessary or appropriate, against the Borrowing Base, including reserves with respect to (i) sums that Borrower is required to pay (such as taxes, assessments, insurance premiums, or, in the case of
leased assets, rents or other amounts payable under such leases) and has failed to pay under any Section of this Agreement or any other Loan Document, and (ii) amounts owing by Borrower to any Person




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to the extent secured by a Lien on, or trust over, any of the Collateral (other than any existing
Permitted Lien set forth on Schedule P-1 which is specifically identified thereon as entitled to have priority over the Lenders Liens, or any Permitted Lien described in clauses (a), (b), (c), (d) or (e) of the definition of
Permitted Liens in this Agreement), which Lien or trust, in the Permitted Discretion of Lender likely would have a priority superior to the Lenders Liens (such as Liens or trusts in favor of landlords, warehousemen, carriers,
mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the Collateral.





(c)    Lender shall have no obligation to make additional Advances hereunder to the extent such additional Advances
would cause the Revolver Usage to exceed the Maximum Revolver Amount.





(d)    Amounts
borrowed pursuant to this Section may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement.





2.2    [Intentionally Omitted]





2.3    Borrowing Procedures and Settlements





(a)    Procedure for Borrowing.  Each Borrowing shall be made by a request by an Authorized Person delivered to Lender (which notice must be received by Lender no later than 1:00 p.m. (New York
time) on the Business Day that is the requested Funding Date specifying (i) the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day. At either Borrowers or Lenders election, in lieu of delivering
the above-described request in writing, any Authorized Person may give Lender telephonic notice of such request by the required time, with such telephonic notice to be confirmed in writing within 24 hours of the giving of such notice.





(b)    Making of Advances.If Lender has received a timely request for a Borrowing in
accordance with the provisions hereof, then, subject to the satisfaction of the applicable terms and conditions set forth herein, Lender shall make the proceeds of such Advance available to Borrower on the applicable Funding Date by transferring
immediately available funds equal to such proceeds to Borrowers Designated Account.





2.4
Payments





(a)    Payments by Borrower.





(i)    Except as otherwise expressly provided herein, all payments by Borrower shall be made to
Lenders Account and shall be made in immediately available funds, no later than 2:00 p.m. (New York time) on the date specified herein. Any payment received by Lender later than 2:00 p.m.




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(New York time) shall be deemed to have been received on the following Business
Day and any applicable interest or fee shall continue to accrue until such following Business Day.





(b)Application and Reversal of Payments.





(i)       All payments shall be remitted to Lender and all such payments (other than payments received while no Event of Default has occurred and is continuing and which relate to the payment of
principal or interest of specific Obligations or which relate to the payment of specific fees), and all proceeds of Accounts or other Collateral received by Lender, shall be applied as follows:





(A)  first, to pay any Lender Expenses then due to Lender under the Loan Documents, until paid in full,





(B)  second, to pay any fees then due to Lender under the Loan Documents until paid in full,





(C)  third, ratably to pay interest due in respect of the Advances until paid
in full,





(D)  fourth, so long as no Event of Default has occurred and is
continuing, and at Lenders election, to pay amounts then due and owing by Borrower or its Subsidiaries in respect of Bank Products, until paid in full,





(E)  fifth, so long as no Event of Default has occurred and is continuing, to pay the principal of all Advances until paid in full,





(F)  sixth, if an Event of Default has occurred and is continuing, ratably (i)
to pay the principal of all Advances until paid in full, and (ii) to Lender, to be held by Lender, for the benefit of Wells Fargo or its Affiliates, as applicable, as cash collateral in an amount up to the amount of the Bank Products Reserve
established prior to the occurrence of, and not in contemplation of, the subject Event of Default until Borrowers and its Subsidiaries obligations in respect of the then extant Bank Products have been paid in full or the cash collateral
amount has been exhausted,





(G)  seventh, if an Event of Default has occurred
and is continuing, to be held by Lender as cash collateral in an amount up to 105% of the then extant Letter of Credit Usage until paid in full,




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(H)  eighth, to pay any other Obligations until
paid in full, and





(I)    ninth, to Borrower (to be wired to the
Designated Account) or such other Person entitled thereto under applicable law.





(ii)    In each instance, so long as no Event of Default has occurred and is continuing, Section 2.4(b)(i) shall not be deemed to apply to any payment by Borrower specified by Borrower to be for the payment
of specific Obligations then due and payable (or prepayable) under any provision of this Agreement.





(iii)   For purposes of the foregoing, paid in full means payment of all amounts owing under the Loan Documents according to the terms thereof, including loan fees, service fees, professional fees, interest
(and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not the same would be or is allowed or disallowed in whole or in part
in any Insolvency Proceeding.





(iv)    In the event of a direct conflict
between the priority provisions of this Section 2.4 and other provisions contained in any other Loan Document, it is the intention of the parties hereto that such priority provisions in such documents shall be read together and construed, to
the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and govern.





2.5    Overadvances.  If, at any time or for any reason, the amount of
Obligations (other than Bank Product Obligations) owed by Borrower to Lender pursuant to Sections 2.1 and 2.12 is greater than either the Dollar or percentage limitations set forth in Sections 2.1 or 2.12 (an
Overadvance), Borrower immediately shall pay to Lender, in cash, the amount of such excess, which amount shall be used by Lender to reduce the Obligations in accordance with the priorities set forth in Section 2.4(b). In
addition, Borrower hereby promises to pay the Obligations (including principal, interest, fees, costs, and expenses) in Dollars in full to Lender as and when due and payable under the terms of this Agreement and the other Loan Documents.





2.6    Interest Rates and Letter of Credit Fee: Rates, Payments, and
Calculations.


.


(a)Interest Rates.
Except as provided in clause (c) below, all Obligations (except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as follows: (i) if the relevant
Obligation is an Advance that is a LIBOR Rate Loan, at a per




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annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin, and (ii) otherwise, at a per annum rate
equal to the Base Rate plus the applicable Base Rate Margin.





(b)    Letter of Credit
Fee.  Borrower shall pay Lender a Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in Section 2.12(e)) which shall accrue at a rate equal to 2.00% per annum times the Daily Balance of the
undrawn amount of all outstanding Letters of Credit.





(c)    [Intentionally Omitted].





(d)Default Rate.  Upon the occurrence and during the continuation of an Event of Default,





(i)    all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the
Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to 4.00 percentage points above the per annum rate otherwise applicable hereunder, and





(ii)    the Letter of Credit fee provided for above shall be increased to 4.00 percentage points
above the per annum rate otherwise applicable hereunder.





(e)Payment.  Except as provided in Section 2.13(a), interest, Letter of Credit fees and all other fees payable hereunder shall be due and payable, in arrears, on the first day of each
month at any time that Obligations or obligation to extend credit hereunder are outstanding. Borrower hereby authorizes Lender, from time to time without prior notice to Borrower, to charge such interest and fees, all Lender Expenses (as and when
incurred), the charges, commissions, fees, and costs provided for in Section 2.12(e) (as and when accrued or incurred), the fees and costs provided for in Section 2.11 (as and when accrued or incurred), and all other payments as and when due
and payable under any Loan Document (including any amounts due and payable to Wells Fargo or its Affiliates in respect of Bank Products up to the amount of the then extant Bank Products Reserve) to Borrowers Loan Account, which amounts
thereafter shall constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances hereunder. Any interest not paid when due shall be compounded by being charged to Borrowers Loan Account and shall thereafter
constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances that are Base Rate Loans hereunder.





(f)    Computation.  All interest and fees chargeable under the Loan Documents shall be computed on the basis of a 360-day year for the actual number of days elapsed. In the event the
Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Base Rate.




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(g)    Intent to Limit Charges to Maximum Lawful
Rate.  In no event shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a
final determination, deem applicable. Borrower and Lender, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however, that, anything
contained herein to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrower is and shall be liable
only for the payment of such maximum as allowed by law, and payment received from Borrower in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess.





2.7   Cash Management.





(a)    Borrower shall (i) establish and maintain cash management services of a type and on terms satisfactory to Lender at one or more of the banks set
forth on Schedule 2.7(a) (each, a Cash Management Bank), and shall request in writing and otherwise take such reasonable steps to ensure that all of its Account Debtors forward payment of the amounts owed by them directly
to such Cash Management Bank, and (ii) deposit or cause to be deposited promptly, and in any event no later than the first Business Day after the date of receipt thereof, all Collections (including those sent directly by Account Debtors to a Cash
Management Bank) into a bank account in Lenders name (a Cash Management Account) at one of the Cash Management Banks.





(b)    Each Cash Management Bank shall establish and maintain Cash Management Agreements with Lender and Borrower, in form and substance acceptable to Lender. Each such Cash
Management Agreement shall provide, among other things, that (i) all items of payment deposited in such Cash Management Account and proceeds thereof are held by such Cash Management Bank as agent or bailee-in-possession for Lender, (ii) the Cash
Management Bank has no rights of setoff or recoupment or any other claim against the applicable Cash Management Account other than for payment of its service fees and other charges directly related to the administration of such Cash Management
Account and for returned checks or other items of payment, and (iii) it immediately will forward by daily sweep all amounts in the applicable Cash Management Account to the Lenders Account.





(c)    So long as no Default or Event of Default has occurred and is continuing, Borrower may amend Schedule 2.7(a) to add or replace a
Cash Management Bank or Cash Management Account; provided, however, that (i) such prospective Cash Management Bank shall be satisfactory to Lender and Lender shall have consented in writing in advance to the opening of such Cash
Management Account with the prospective Cash Management Bank, and (ii) prior to the time of the opening of such Cash Management Account, Borrower and such prospective Cash Management Bank shall have executed and




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delivered to Lender a Cash Management Agreement. Borrower shall close any of its Cash Management
Accounts (and establish replacement cash management accounts in accordance with the foregoing sentence) promptly and in any event within 30 days of notice from Lender that the creditworthiness of any Cash Management Bank is no longer acceptable in
Lenders reasonable judgment, or as promptly as practicable and in any event within 60 days of notice from Lender that the operating performance, funds transfer, or availability procedures or performance of the Cash Management Bank with respect
to Cash Management Accounts or Lenders liability under any Cash Management Agreement with such Cash Management Bank is no longer acceptable in Lenders reasonable judgment.





(d)    The Cash Management Accounts shall be cash collateral accounts, with all cash, checks and similar items of payment in such accounts securing
payment of the Obligations, and in which Borrower is hereby deemed to have granted a Lien to Lender.





2.8  Crediting Payments; Float Charge. The receipt of any payment item by Lender (whether from transfers to Lender by the Cash Management Banks pursuant to the Cash Management Agreements or otherwise) shall
not be considered a payment on account unless such payment item is a wire transfer of immediately available federal funds made to the Lenders Account or unless and until such payment item is honored when presented for payment. Should any
payment item not be honored when presented for payment, then Borrower shall be deemed not to have made such payment and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be
deemed received by Lender only if it is received into the Lenders Account on a Business Day on or before 2:00 p.m. (New York time). If any payment item is received into the Lenders Account on a non-Business Day or after 2:00 p.m. (New
York time) on a Business Day, it shall be deemed to have been received by Lender as of the opening of business on the immediately following Business Day. From and after the Closing Date, Lender shall be entitled to charge Borrower for one (1)
Business Day of clearance or float at the rate applicable to Base Rate Loans under Section 2.6 on all Collections that are received by Borrower (regardless of whether forwarded by the Cash Management Banks to Lender).
This across-the-board one (1) Business Day clearance or float charge on all Collections is acknowledged by the parties to constitute an integral aspect of the pricing of the financing of Borrower and shall apply irrespective of whether or not there
are any outstanding monetary Obligations; the effect of such clearance or float charge being the equivalent of charging one (1) Business Day of interest on such Collections. Such clearance or float charge shall have no effect with respect to the
application of Collections to pay principal of the Advances for purposes of determining Availability.





2.9  Designated Account. Lender is authorized to make the Advances, and Lender is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from
anyone purporting to be an Authorized Person, or without instructions if pursuant to Section 2.6(d). Borrower agrees to establish and maintain the




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Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the
Advances requested by Borrower and made by Lender hereunder. Unless otherwise agreed by Lender and Borrower, any Advance requested by Borrower and made by Lender hereunder shall be made to the Designated Account.





2.10  Maintenance of Loan Account; Statements of Obligations.  Lender shall maintain an account on its
books in the name of Borrower (the Loan Account) on which Borrower will be charged with all Advances made by Lender to Borrower or for Borrowers account, the Letters of Credit issued by Lender for Borrowers account,
and with all other payment Obligations hereunder or under the other Loan Documents (except for Bank Product Obligations), including accrued interest, fees and expenses, and Lender Expenses. In accordance with Section 2.8, the Loan Account
will be credited with all payments received by Lender from Borrower or for Borrowers account, including all amounts received in the Lenders Account from any Cash Management Bank. Lender shall render monthly statements regarding the Loan
Account to Borrower, including principal, interest, fees, and including an itemization of all charges and expenses constituting Lender Expenses owing, and such statements shall be presumed to be correct and accurate absent manifest error unless,
within 30 days after receipt thereof by Borrower, Borrower shall deliver to Lender written objection thereto describing the error or errors contained in any such statements.





2.11  Fees.  Borrower shall pay to Lender the following fees and charges, which fees and charges shall be non-refundable when paid
(irrespective of whether this Agreement is terminated thereafter):





(a)    Unused Line
Fee.  On the first day of each month during the term of this Agreement, an unused line fee in an amount equal to 0.50% per annum times the result of (a) the Maximum Revolver Amount, less (b) the sum of (i) the average
Daily Balance of Advances that were outstanding during the immediately preceding month, plus (ii) the average Daily Balance of the Letter of Credit Usage during the immediately preceding month,





(b)    Fee Letter Fees.  As and when due and payable under the terms of the Fee Letter, Borrower
shall pay to Lender the fees set forth in the Fee Letter, and





(c)    Audit, Appraisal,
and Valuation Charges.  Audit, appraisal, and valuation fees and charges as follows: (i) a fee of $850 per day, per auditor, plus out-of-pocket expenses for each financial audit of Borrower performed by personnel employed by Lender,
(ii) if implemented, a one time charge of $5,000 plus out-of-pocket expenses for expenses for the establishment of electronic collateral reporting systems, (iii) the actual charges paid or incurred by Lender for each appraisal of the Collateral
performed by personnel employed by Lender, and (iv) the actual charges paid or incurred by Lender if it elects to employ the services of one or more third Persons to perform financial audits of Borrower, to appraise the Collateral, or any portion
thereof, or to assess Borrowers business valuation; provided, that, notwithstanding the foregoing, so long as no Default or Event of




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Default shall have occurred, Borrower shall not be responsible for the fees and charges incurred in
connection with financial audits to the extent that such financial audits are done more frequently than four (4) times each calendar year (it being understood and agreed that the foregoing shall not prohibit Lender in any way from performing, or
causing the performance of, such financial audits more frequently than four (4) times each calendar year).





2.12    Letters of Credit





(a)    Subject
to the terms and conditions of this Agreement, Lender agrees to issue letters of credit for the account of Borrower (each, an L/C) or to purchase participations or execute indemnities or reimbursement obligations (each such
undertaking, an L/C Undertaking) with respect to letters of credit issued by an Underlying Issuer (as of the Closing Date, such issuing bank to be Wells Fargo) for the account of Borrower. To request the issuance of an L/C or an
L/C Undertaking (or the amendment, renewal, or extension of an outstanding L/C or L/C Undertaking), Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by Lender) to
Lender and Lender (reasonably in advance of the requested date of issuance, amendment, renewal, or extension) a notice requesting the issuance of an L/C or L/C Undertaking, or identifying the L/C or L/C Undertaking to be amended, renewed, or
extended, the date of issuance, amendment, renewal, or extension, the date on which such L/C or L/C Undertaking is to expire, the amount of such L/C or L/C Undertaking, the name and address of the beneficiary thereof (or the beneficiary of the
Underlying Letter of Credit, as applicable), and such other information as shall be necessary to prepare, amend, renew, or extend such L/C or L/C Undertaking. If requested by Lender, Borrower also shall be an applicant under the application with
respect to any Underlying Letter of Credit that is to be the subject of an L/C Undertaking. Lender shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to the requested Letter of Credit:





(i)     the Letter of Credit Usage would exceed the Borrowing Base
less the amount of outstanding Advances, or





(ii)    the Letter of
Credit Usage would exceed $1,500,000, or





(iii)    the Letter of Credit Usage
would exceed the Maximum Revolver Amount less the then extant amount of outstanding Advances.





Borrower
and Lender acknowledge and agree that certain Underlying Letters of Credit may be issued to support letters of credit that already are outstanding as of the Closing Date. Each Letter of Credit (and corresponding Underlying Letter of Credit) shall be
in form and substance acceptable to Lender (in the exercise of its Permitted Discretion), including the requirement that the amounts payable thereunder must be payable in Dollars. If Lender is obligated to advance funds under a Letter of Credit,
Borrower immediately shall




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reimburse such L/C Disbursement to Lender by paying to Lender an amount equal to such L/C Disbursement
not later than 2:00 p.m., New York time, on the date that such L/C Disbursement is made, if Borrower shall have received written or telephonic notice of such L/C Disbursement prior to 1:00 p.m., New York time, on such date, or, if such notice has
not been received by Borrower prior to such time on such date, then not later than 2:00 p.m., New York time, on the Business Day that Borrower receives such notice, if such notice is received prior to 1:00 p.m., New York time, on the date of
receipt, and, in the absence of such reimbursement, the L/C Disbursement immediately and automatically shall be deemed to be an Advance hereunder and, thereafter, shall bear interest at the rate then applicable to Advances that are Base Rate Loans
under Section 2.6. To the extent an L/C Disbursement is deemed to be an Advance hereunder, Borrowers obligation to reimburse such L/C Disbursement shall be discharged and replaced by the resulting Advance.





(b)    Borrower hereby agrees to indemnify, save, defend, and hold Lender harmless from any loss, cost, expense, or
liability, and reasonable attorneys fees incurred by Lender arising out of or in connection with any Letter of Credit; provided, however, that Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or
liability that is caused by the gross negligence or willful misconduct of Lender. Borrower agrees to be bound by the Underlying Issuers regulations and interpretations of any Underlying Letter of Credit or by Lenders interpretations of
any L/C issued by Lender to or for Borrowers account, even though this interpretation may be different from Borrowers own, and Borrower understands and agrees that Lender shall not be liable for any error, negligence, or mistake, whether
of omission or commission, in following Borrowers instructions or those contained in the Letter of Credit or any modifications, amendments, or supplements thereto. Borrower understands that the L/C Undertakings may require Lender to indemnify
the Underlying Issuer for certain costs or liabilities arising out of claims by Borrower against such Underlying Issuer. Borrower hereby agrees to indemnify, save, defend, and hold Lender harmless with respect to any loss, cost, expense (including
reasonable attorneys fees), or liability incurred by Lender under any L/C Undertaking as a result of Lenders indemnification of any Underlying Issuer; provided, however, that Borrower shall not be obligated hereunder to indemnify
for any loss, cost, expense, or liability that is caused by the gross negligence or willful misconduct of Lender.





(c)    Borrower hereby authorizes and directs any Underlying Issuer to deliver to Lender all instruments, documents, and other writings and property received by such Underlying Issuer pursuant to such Underlying
Letter of Credit and to accept and rely upon Lenders instructions with respect to all matters arising in connection with such Underlying Letter of Credit and the related application.





(d)    Any and all charges, commissions, fees, and costs incurred by Lender relating to Underlying Letters of Credit shall be Lender Expenses for
purposes of this Agreement and immediately shall be reimbursable by Borrower to Lender for the account of Lender; it being acknowledged and agreed by Borrower that, as of the Closing Date, the




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issuance charge imposed by the prospective Underlying Issuer is .825% per annum times the face amount of
each Underlying Letter of Credit, that such issuance charge may be changed from time to time, and that the Underlying Issuer also imposes a schedule of charges for amendments, extensions, drawings, and renewals.





(e)    If by reason of (i) any change in any applicable law, treaty, rule, or regulation or any change in the
interpretation or application thereof by any Governmental Authority, or (ii) compliance by the Underlying Issuer or Lender with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or
monetary authority including, Regulation D of the Federal Reserve Board as from time to time in effect (and any successor thereto):





(i)    any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit issued hereunder, or





(ii)    there shall be imposed on the Underlying Issuer or Lender any other condition regarding any
Underlying Letter of Credit or any Letter of Credit issued pursuant hereto,





and the result of the foregoing is to increase, directly or
indirectly, the cost to Lender of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof by Lender, then, and in any such case, Lender may, at any time within a reasonable period
after the additional cost is incurred or the amount received is reduced, notify Borrower, and Borrower shall pay on demand such amounts as Lender may specify to be necessary to compensate Lender for such additional cost or reduced receipt, together
with interest on such amount from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder. The determination by Lender of any amount due pursuant to this Section, as set forth in a certificate
setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and binding on all of the parties hereto.





2.13    LIBOR Option.





(a)    Interest and Interest Payment Dates.    In lieu of having interest charged at the rate based upon the Base Rate, if and only if EBITDA for the immediately preceding
fiscal year exceeded $25,000,000 (based on the audited financial statements delivered to Lender in accordance with Section 6.3(b)), Borrower shall have the option (the LIBOR Option) to have interest on all or a portion of
the Advances be charged at a rate of interest based upon the LIBOR Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto, (ii) the occurrence of an Event of Default in
consequence of which Lender has elected to accelerate the maturity of all or any portion of the Obligations, or (iii) termination of this Agreement pursuant to the terms hereof. On the last day of each applicable Interest Period, unless Borrower
properly has exercised the LIBOR Option with respect thereto, the interest rate




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applicable to such LIBOR Rate Loan automatically shall convert to the rate of interest then applicable
to Base Rate Loans of the same type hereunder. At any time that an Event of Default has occurred and is continuing, Borrower no longer shall have the option to request that Advances bear interest at the LIBOR Rate and Lender shall have the right to
convert the interest rate on all outstanding LIBOR Rate Loans to the rate then applicable to Base Rate Loans hereunder.





(b)    LIBOR Election.





(i)    Borrower may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the LIBOR Option by notifying Lender prior to 2:00 p.m. (New York time) at
least three (3) Business Days prior to the commencement of the proposed Interest Period (the LIBOR Deadline). Notice of Borrowers election of the LIBOR Option for a permitted portion of the Advances and an Interest Period
pursuant to this Section shall be made by delivery to Lender of a LIBOR Notice received by Lender before the LIBOR Deadline, or by telephonic notice received by Lender before the LIBOR Deadline (to be confirmed by delivery to Lender of a LIBOR
Notice received by Lender prior to 8:00 p.m. (New York time) on the same day.





(ii)    Each LIBOR Notice shall be irrevocable and binding on Borrower. In connection with each LIBOR Rate Loan, Borrower shall indemnify, defend, and hold Lender harmless against any loss, cost, or expense (other
than indirect or consequential losses, costs or expenses) incurred by Lender as a result of (a) the payment of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an
Event of Default), (b) the conversion of any LIBOR Rate Loan other than on the last day of the Interest Period applicable thereto, or (c) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR
Notice delivered pursuant hereto (such losses, costs, and expenses, collectively, Funding Losses). Funding Losses shall be deemed to equal the amount determined by Lender to be the excess, if any, of (i) the amount of interest
that would have accrued on the principal amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would have been applicable thereto, for the period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert, or continue, for the period that would have been the Interest Period therefor),minus(ii) the amount of interest that would accrue on such principal amount for such period at
the interest rate which Lender would be offered were it to be offered, at the commencement of such period, Dollar deposits of a comparable amount and period in the London interbank market. A certificate of Lender delivered to




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Borrower setting forth any amount or amounts that Lender is entitled to receive
pursuant to this Section shall be presumptively correct absent manifest error.





(iii)    Borrower shall have not more than five (5) LIBOR Rate Loans in effect at any given time. Borrower only may exercise the LIBOR Option for LIBOR Rate Loans of at least $1,000,000 and integral multiples of
$500,000 in excess thereof.





(c)    Prepayments.  Borrower may
prepay LIBOR Rate Loans at any time; provided, however, that in the event that LIBOR Rate Loans are prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a result of any automatic
prepayment through the required application by Lender of proceeds of Collections in accordance with Section 2.4(b) or for any other reason, including early termination of the term of this Agreement or acceleration of all or any portion of the
Obligations pursuant to the terms hereof, Borrower shall indemnify, defend, and hold Lender and its Participants harmless against any and all Funding Losses in accordance with clause (b)(ii) above.





(d)    Special Provisions Applicable to LIBOR Rate.





(i)    The LIBOR Rate may be adjusted by Lender on a prospective basis to take into account any
additional or increased costs to Lender of maintaining or obtaining any eurodollar deposits or increased costs due to changes in applicable law occurring subsequent to the commencement of the then applicable Interest Period, including changes in tax
laws (except changes of general applicability in corporate income tax laws) and changes in the reserve requirements imposed by the Board of Governors of the Federal Reserve System (or any successor), excluding the Reserve Percentage, which
additional or increased costs would increase the cost of funding loans bearing interest at the LIBOR Rate. In any such event, Lender shall give Borrower notice of such a determination and adjustment (such notice to be delivered by Lender within 90
days after Lender becomes aware of an event described above in this clause (d)(i)); provided that if there are no LIBOR Rate Loans then outstanding, such notice shall be delivered by the later of (x) 90 days after Lender becomes aware of an
event described in this clause (d)(i) and (y) the date that Borrower notifies Lender in accordance with this Section 2.13 that it intends to exercise the LIBOR Option) and, upon its receipt of the notice from Lender, Borrower may, by notice
to Lender (y) require Lender to furnish to Borrower a statement setting forth the basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (z) repay the LIBOR Rate Loans with respect to which such
adjustment is made (together with any amounts due under clause (b)(ii) above).




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(ii)    In the event that any change in
market conditions or any law, regulation, treaty, or directive, or any change therein or in the interpretation of application thereof, shall at any time after the date hereof, in the reasonable opinion of Lender, make it unlawful or impractical for
Lender to fund or maintain LIBOR Advances or to continue such funding or maintaining, or to determine or charge interest rates at the LIBOR Rate, Lender shall give notice of such changed circumstances to Borrower and (y) in the case of any LIBOR
Rate Loans that are outstanding, the date specified in Lenders notice shall be deemed to be the last day of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans thereafter shall accrue interest at the rate then
applicable to Base Rate Loans, and (z) Borrower shall not be entitled to elect the LIBOR Option until Lender determines that it would no longer be unlawful or impractical to do so.





(e)    No Requirement of Matched Funding.  Anything to the contrary contained herein notwithstanding, neither Lender, nor any of its
Participants, is required actually to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to which interest accrues at the LIBOR Rate. The provisions of this Section shall apply as if Lender or its Participants had match
funded any Obligation as to which interest is accruing at the LIBOR Rate by acquiring eurodollar deposits for each Interest Period in the amount of the LIBOR Rate Loans.





2.14    Capital Requirements.  If, after the date hereof, Lender determines that (i) the adoption of or change in any generally
applicable law, rule, regulation or guideline regarding capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by any Governmental Authority charged with the administration thereof, or
(ii) compliance by Lender or its parent bank holding company with any generally applicable guideline, request, or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of reducing the return
on Lenders or such holding companys capital as a consequence of Lenders obligations hereunder to a level below that which Lender or such holding company could have achieved but for such adoption, change, or compliance (taking into
consideration Lenders or such holding companys then existing policies with respect to capital adequacy and assuming the full utilization of such entitys capital) by any amount deemed by Lender to be material, then Lender may notify
Borrower thereof (such notice to be delivered by Lender within 90 days after Lender becomes aware of an event described in clause (i) or (ii) of this Section 2.14). Following receipt of such notice, Borrower agrees to pay Lender on demand the
amount of such reduction of return of capital as and when such reduction is determined, payable within 90 days after presentation by Lender of a statement in the amount and setting forth in reasonable detail Lenders calculation thereof and the
assumptions upon which such calculation was based (which statement shall be presumptively true and correct absent manifest error). In determining such amount, Lender may use any reasonable averaging and attribution methods.




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|3. |  | CONDITIONS; TERM OF AGREEMENT.
|-- |  | ------------------------------




3.1    Conditions Precedent to the Initial Extension of Credit.    The obligation of Lender to make the initial Advance (or otherwise to extend any
credit provided for hereunder), is subject to the fulfillment, to the satisfaction of Lender, of each of the conditions precedent set forth below:





(a)    the Closing Date shall occur on or before September 4, 2002;





(b)    Lender shall have received all financing statements required by Lender, duly authorized by Borrower, and Lender shall have received searches reflecting the filing of all such financing statements;





(c)    Lender shall have received each of the following documents, in form and substance
satisfactory to Lender, duly executed, and each such document shall be in full force and effect:





(i)  the Cash Management Agreements,





(ii)  the Control
Agreements,





(iii)  the Copyright Security Agreement,





(iv)  the Disbursement Letter,





(v)  the Due Diligence Letter,





(vi)  the Fee Letter,





(vii)  the Guaranty,





(viii)  the Guarantor Security
Agreement,





(ix)  the Intercompany Subordination Agreement,





(x)  the Officers Certificate,





(xi)  the Patent Security Agreement,





(xii)  the Pay-Off Letter, together with UCC termination statements and other documentation evidencing the termination by Existing Lender of its Liens in and to the properties and assets of
Borrower,





(xiii)  the Securities Pledge Agreement, together with all certificates
representing the shares of Stock pledged thereunder, as well as Stock powers with respect thereto endorsed in blank, and the Pledged Notes,




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(xiv)  the Trademark Security Agreement,





(xv)  the MCI Agreement, and





(xvi)  the PNC Forbearance;





(d)     Lender shall have received a certificate from the Secretary of Borrower (i) attesting to the resolutions of Borrowers Board of Directors authorizing its execution, delivery, and
performance of this Agreement and the other Loan Documents to which Borrower is a party and authorizing specific officers of Borrower to execute the same and (ii) certifying the names and true signatures of the officers of Borrower authorized to
sign each such Loan Document;





(e)     Lender shall have received copies of
Borrowers Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary of Borrower;





(f)     Lender shall have received a certificate of status with respect to Borrower, dated within 10 days of the Closing Date, such certificate to be issued by the appropriate officer of the
jurisdiction of organization of Borrower, which certificate shall indicate that Borrower is in good standing in such jurisdiction;





(g)     Lender shall have received certificates of status with respect to Borrower, each dated within 30 days of the Closing Date, such certificates to be issued by the appropriate officer of the
jurisdictions (other than the jurisdiction of organization of Borrower) in which its failure to be duly qualified or licensed would constitute a Material Adverse Change, which certificates shall indicate that Borrower is in good standing in such
jurisdictions;





(h)     Lender shall have received a certificate from the Secretary of
each Guarantor (i) attesting to the resolutions of such Guarantors board of directors authorizing its execution, delivery, and performance of the Loan Documents to which such Guarantor is a party and authorizing specific officers of such
Guarantor to execute the same and (ii) certifying the names and true signatures of the officers of such Guarantor authorized to sign each such Loan Document;





(i)     Lender shall have received copies of each Guarantors Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary of
such Guarantor;





(j)     Lender shall have received a certificate of status with respect
to each Guarantor, dated within 10 days of the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of such Guarantor, which certificate shall indicate that such Guarantor is in good standing in
such jurisdiction;




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(k)    Lender shall have received certificates of status
with respect to each Guarantor, each dated within 30 days of the Closing Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of such Guarantor) in which its failure to be
duly qualified or licensed would constitute a Material Adverse Change, which certificates shall indicate that such Guarantor is in good standing in such jurisdictions;





(l)    Lender shall have received a certificate of insurance, together with the endorsements thereto, as are required by Section 6.8, the form
and substance of which shall be satisfactory to Lender;





(m)    Lender shall have received a
Collateral Access Agreement with respect to the following location: 15 Campus Boulevard, Newtown Square, Pennsylvania 19073;





(n)    Lender shall have received an opinion of Borrowers counsel in form and substance satisfactory to Lender;





(o)    Lender shall have received satisfactory evidence (including a certificate of the chief financial officer of Borrower) that all tax returns required to be filed by Borrower
have been timely filed and all taxes upon Borrower or its properties, assets, income, and franchises (including Real Property taxes and payroll taxes) have been paid prior to delinquency, except such taxes that are the subject of a Permitted
Protest;





(p)    Borrower shall have the Required Availability after giving effect to the
initial extensions of credit hereunder;





(q)    Lender shall have completed its business,
legal, and collateral due diligence, including (i) a collateral audit and review of Borrowers books and records and verification of Borrowers representations and warranties to Lender, (ii) an inspection of each of the locations where
Borrowers Inventory is located, and (iii) review of Borrowers customer contracts, the results of each of which shall be satisfactory to Lender;





(r)    Lender shall have received completed reference checks with respect to Borrowers senior management, the results of which are satisfactory to Lender in its sole
discretion;





(s)    Lender shall have received Borrowers Closing Date Business Plan;





(t)    Borrower shall pay all Lender Expenses incurred in connection with the transactions
evidenced by this Agreement;




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(u)    Borrower shall have received all licenses, approvals
or evidence of other actions required by any Governmental Authority in connection with the execution and delivery by Borrower of this Agreement or any other Loan Document or with the consummation of the transactions contemplated hereby and thereby;





(v)    Lender shall have received Borrowers quarterly report on Form 10-Q as filed
with the SEC for the period ended June 30, 2002, and such report shall be consistent with the pro forma quarterly report Borrower previously provided to Lender, except for such adjustments as have been previously disclosed to Lender;





(w)    Lender shall be satisfied with the takeover audit, which shall include but shall not
be limited to: (i) a review of outstanding check detail, in particular the determination of any held checks, and (ii) verification that payroll taxes are current;





(x)    Borrower shall have on the Closing Date remitted by wire transfer to Lenders Account all cash (and delivered all Cash Equivalents in such
manner as directed by Lender) of Borrower utilized to calculate the Required Availability;





(y)    Borrower shall have delivered to Lender evidence, satisfactory to Lender in its sole discretion, that Borrower provided notice to AT&T Corp. in connection with the agreement dated as of August 1, 2000,
as amended, between Borrower and AT&T Corp;





(z)    Borrower shall have on the Closing
Date requested and borrowed an Advance in an amount equal to at least $5,000,000; and





(aa)  all other
documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered, executed, or recorded and shall be in form and substance reasonably satisfactory to Lender.





3.2 Conditions Subsequent to the Initial Extension of Credit.    The obligation of Lender to continue to
make Advances (or otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of each of the conditions subsequent set forth below (the failure by Borrower to so perform or cause to be performed
constituting an Event of Default):





(a)    within 30 days of the Closing Date, deliver to
Lender certified copies of the policies of insurance, together with the endorsements thereto, as are required by Section 6.8, the form and substance of which shall be satisfactory to Lender and its counsel;





(b)    use its best efforts to deliver to Lender, within 60 days after the Closing Date, duly executed Collateral
Access Agreements with respect to the following locations (unless such locations are no longer leased by Borrower by the end of such 60-day period); provided that if Borrower shall have failed to deliver to Lender a Collateral Access




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Agreement with respect to any such location within such 60-day period, then Lender shall have the right,
in its sole discretion, to implement reserves in respect of the lease payments owed by Borrower (or any of Borrowers Subsidiaries) in respect of each such location:





| | (i) |  | 2901 Hamilton Blvd. Allentown, PA, Lehigh County
| | --- |  | ------------------------------------------------

| | (ii) |  | 10 East Athens Avenue Ardmore, PA 19003, Montgomery County
| | ---- |  | ----------------------------------------------------------

| | (iii) |  | Atrium at English Creek Bldg. Unit D, Space No. 207 (Ste 7, 8, 9) and Space No. 205 English Creek Shopping Center Pleasantville, NJ, Atlantic County
| | ----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) |  | Area A and B / Level 2 Market Square, Brantford, Ontario, Canada
| | ---- |  | ----------------------------------------------------------------

| | (v) |  | 501 Delran Parkway Delran, NJ, Burlington County
| | --- |  | ------------------------------------------------

| | (vi) |  | Capital Plaza Shopping Center, North Olden & Princeton Avenue, Ewing Township, Mercer County, NJ
| | ---- |  | ------------------------------------------------------------------------------------------------

| | (vii) |  | Suite 401, 6801 Gaylord Parkway, Frisco, TX 75034
| | ----- |  | -------------------------------------------------

| | (viii) |  | Suite 400, 6801 Gaylord Parkway, Frisco, TX 75034
| | ------ |  | -------------------------------------------------

| | (ix) |  | 2809 East Grimes Avenue, Harlingen, Texas 78550, Cameron County
| | ---- |  | ---------------------------------------------------------------

| | (x) |  | 3200 FM 1960 East Houston, TX Harris County
| | --- |  | -------------------------------------------

| | (xi) |  | Spectrum Technology Park Building C, 1stfloor, 8550 Ulmerton Road, Largo, FL 33779, Pinnellas County
| | ---- |  | ----------------------------------------------------------------------------------------------------

| | (xii) |  | Country Club Mall, 3200 Island Highway, Nanaimo, B.C., Canada V9T 1W1
| | ----- |  | ---------------------------------------------------------------------

| | (xiii) |  | 281 Restigouche Road, Oromocto Business Complex, Oromocto, NB, Canada E2V 2H2
| | ------ |  | -----------------------------------------------------------------------------

| | (xiv) |  | 1st/
2ndFloors, Bldg. No. 1020, 1stFloor, Bldg. No. 1040, 2ndFloor, Bldg. No. 1010. Modeland Centre, 1086 Modeland Road Sarnia, Ontario, Canada
| | ----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (xv) |  | Queensbay Esplanade, 345 Queen St. East, Sault Ste Marie, Ontario, Canada
| | ---- |  | -------------------------------------------------------------------------

| | (xvi) |  | 2ndLevel, 900
James Avenue, Scranton, PA 18510, Lackawanna County
| | ----- |  | -----------------------------------------------------------------

| | (xvii) |  | 180 Crown St., 2ndLevel, Saint John, New Brunswick, Canada
| | ------ |  | ----------------------------------------------------------

| | (xviii) |  | 250 Park Avenue, Eaton Building, Thunder Bay, Ontario, Canada P7B 1R2
| | ------- |  | ---------------------------------------------------------------------

| | (xix) |  | 11125-124thStreet Surrey, British Columbia, Canada V3V 4V2
| | ----- |  | ----------------------------------------------------------

| | (xx) |  | 29 Beekman Street, Wilkes Barre, PA 18702, Luzerne County
| | ---- |  | ---------------------------------------------------------

| | (xxi) |  | 1600 Pennsylvania Avenue, York, PA 17404, York County
| | ----- |  | -----------------------------------------------------

| | (xxii) |  | RMH Building, 1801 West 32ndStreet, Yuma, AZ 85364, Yuma County;
| | ------ |  | ----------------------------------------------------------------



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(c)  Within 30 days after the Closing Date, Borrower shall deliver to
Lender certificates of status from the appropriate officers of the States of New Jersey and Florida, which certificates shall indicate that Borrower is in good standing in such jurisdictions; and





(d)  On or prior to September 9, 2002, Borrower shall have delivered to Lender originals of (i) the Pledged Notes and (ii) the stock certificates
representing the shares of 515963 N.B. Inc. and 516131 N.B. Inc.





3.3  Conditions Precedent to all
Extensions of Credit.    The obligation of Lender to make all Advances (or to extend any other credit hereunder) shall be subject to the following conditions precedent:





(a)  the representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in
all material respects on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date),





(b)  no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall
either result from the making thereof,





(c)  no injunction, writ, restraining order, or other order of
any nature prohibiting, directly or indirectly, the extending of such credit shall have been issued and remain in force by any Governmental Authority against Borrower, Lender, or any of their Affiliates.


(d)  no Material Adverse Change shall have occurred and be continuing.





3.4  Term.  This Agreement shall become effective in accordance with Section 16.1 and shall continue in full force and effect for a term ending on the third
anniversary of the Closing Date (the Maturity Date). The foregoing notwithstanding, Lender shall have the right to terminate its obligations under this Agreement immediately and without notice upon the occurrence and during the
continuation of an Event of Default.





3.5  Effect of
Termination.    On the date of termination of this Agreement, all Obligations (including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit and including all Bank Product
Obligations) immediately shall become due and payable without notice or demand (including (a) either (i) providing cash collateral to be held by Lender in an amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing the
original Letters of Credit to be returned to Lender, (b) providing cash collateral to be held by Lender for the benefit of Wells Fargo or its Affiliates with respect to the then extant Bank Products Obligations). No termination of this Agreement,




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however, shall relieve or discharge Borrower of its duties, Obligations, or covenants hereunder and the
Lenders Liens in the Collateral shall remain in effect until all Obligations have been fully and finally discharged (or with respect to outstanding Bank Product Obligations in respect of swap agreements, such agreements may be assigned to
another financial institution, provided that such assignment shall provide for appropriate indemnification by such financial institution in favor of Wells Fargo and such assignment shall be otherwise satisfactory to Wells Fargo in all
respects) and Lenders obligations to provide additional credit hereunder have been terminated. When this Agreement has been terminated and all of the Obligations have been fully and finally discharged and Lenders obligations to provide
additional credit under the Loan Documents have been terminated irrevocably, Lender will, at Borrowers sole expense, execute and deliver any UCC termination statements, lien releases, mortgage releases, re-assignments of trademarks, discharges
of security interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, the Lenders Liens and all notices of security interests and liens previously
filed by Lender with respect to the Obligations.





3.6  Early Termination by
Borrower.    Borrower has the option, at any time upon 60 days prior written notice to Lender, to terminate this Agreement by paying to Lender, in cash, the Obligations (including (a) either (i) providing cash collateral
to be held by Lender in an amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned to Lender, and (b) providing cash collateral to be held by Lender for the benefit of Wells Fargo
or its Affiliates with respect to the then extant Bank Products Obligations), in full, together with the Applicable Prepayment Premium. If Borrower has sent a notice of termination pursuant to the provisions of this Section, then Lenders
obligations to extend credit hereunder shall terminate and Borrower shall be obligated to repay the Obligations (including (a) either (i) providing cash collateral to be held by Lender in an amount equal to 105% of the then extant Letter of Credit
Usage, or (ii) causing the original Letters of Credit to be returned to Lender, and (b) providing cash collateral to be held by Lender for the benefit of Wells Fargo or its Affiliates with respect to the then extant Bank Products Obligations), in
full, together with the Applicable Prepayment Premium, on the date set forth as the date of termination of this Agreement in such notice. In the event of the termination of this Agreement and repayment of the Obligations at any time prior to the
Maturity Date, for any other reason, including (a) termination upon the election of Lender to terminate after the occurrence of an Event of Default, (b) foreclosure and sale of Collateral, (c) sale of the Collateral in any Insolvency Proceeding, or
(iv) restructure, or compromise of the Obligations by the confirmation of a plan of reorganization or any other plan of compromise, restructure, or arrangement in any Insolvency Proceeding, then, in view of the impracticability and extreme
difficulty of ascertaining the actual amount of damages to Lender or profits lost by Lender as a result of such early termination, and by mutual agreement of the parties as to a reasonable estimation and calculation of the lost profits or damages of
Lender, Borrower shall pay the Applicable Prepayment Premium to Lender, measured as of the date of such termination.




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|4. |  | CREATION OF SECURITY INTEREST.
|-- |  | ------------------------------




4.1  Grant of Security Interest.    Borrower hereby grants to Lender (and with respect to Bank Product Obligations, Wells Fargo and its Affiliates) a
continuing security interest in all of its right, title, and interest in all currently existing and hereafter acquired or arising Personal Property Collateral in order to secure prompt repayment of any and all of the Obligations in accordance with
the terms and conditions of the Loan Documents and in order to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents. The Lenders Liens in and to the Personal Property Collateral shall attach to all
Personal Property Collateral without further act on the part of Lender or Borrower. Anything contained in this Agreement or any other Loan Document to the contrary notwithstanding, except for Permitted Dispositions, Borrower has no authority,
express or implied, to dispose of any item or portion of the Collateral.





4.2  Negotiable
Collateral.    In the event that any Collateral, including proceeds, is evidenced by or consists of Negotiable Collateral, and if and to the extent that perfection of priority of Lenders security interest is
dependent on or enhanced by possession, Borrower, immediately upon the request of Lender, shall endorse and deliver physical possession of such Negotiable Collateral to Lender.





4.3  Collection of Accounts, General Intangibles, and Negotiable Collateral.    At any time after the occurrence and during the
continuation of an Event of Default, Lender or Lenders designee may (a) notify Account Debtors of Borrower that the Accounts, chattel paper, or General Intangibles have been assigned to Lender or that Lender has a security interest therein, or
(b) collect the Accounts, chattel paper, or General Intangibles directly and charge the collection costs and expenses to the Loan Account. Borrower agrees that it will hold in trust for Lender, as Lenders trustee, any Collections that it
receives and immediately will deliver said Collections to Lender or a Cash Management Bank in their original form as received by Borrower.





4.4  Delivery of Additional Documentation Required.    At any time upon the request of Lender, Borrower shall execute and deliver to Lender, any and all financing statements,
original financing statements in lieu of continuation statements, fixture filings, security agreements, pledges, mortgages, surveys, assignments, endorsements of certificates of title, and all other documents (the Additional
Documents) that Lender may request in its Permitted Discretion, in form and substance satisfactory to Lender, to perfect and continue perfected or better perfect the Lenders Liens in the Collateral (whether now owned or hereafter
arising or acquired), to create and perfect Liens in favor of Lender in any Real Property acquired after the Closing Date, and in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents. To the
maximum extent permitted by applicable law, Borrower authorizes Lender to execute any such Additional Documents in Borrowers name and authorizes Lender to file such executed Additional Documents in any appropriate filing office. In addition,
on such periodic basis as




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Lender shall require, Borrower shall (a) provide Lender with a report of all new patentable,
copyrightable, or trademarkable materials acquired or generated by Borrower during the prior period, (b) cause all patents, copyrights, and trademarks acquired or generated by Borrower that are not already the subject of a registration with the
appropriate filing office (or an application therefor diligently prosecuted) to be registered with such appropriate filing office in a manner sufficient to impart constructive notice of Borrowers ownership thereof, and (c) cause to be
prepared, executed, and delivered to Lender supplemental schedules to the applicable Loan Documents to identify such patents, copyrights, and trademarks as being subject to the security interests created thereunder.





4.5  Power of Attorney.    Borrower hereby irrevocably makes, constitutes, and appoints Lender
(and any of Lenders officers, employees, or agents designated by Lender) as Borrowers true and lawful attorney, with power to (a) if Borrower refuses to, or fails timely to execute and deliver any of the documents described in Section
4.4, sign the name of Borrower on any of the documents described in Section 4.4, (b) at any time that an Event of Default has occurred and is continuing, sign Borrowers name on any invoice or bill of lading relating to the
Collateral, drafts against Account Debtors, or notices to Account Debtors, (c) send requests for verification of Accounts, (d) endorse Borrowers name on any Collection item that may come into Lenders possession, (e) at any time that an
Event of Default has occurred and is continuing, make, settle, and adjust all claims under Borrowers policies of insurance and make all determinations and decisions with respect to such policies of insurance, and (f) at any time that an Event
of Default has occurred and is continuing, settle and adjust disputes and claims respecting the Accounts, chattel paper, or General Intangibles directly with Account Debtors, for amounts and upon terms that Lender determines to be reasonable, and
Lender may cause to be executed and delivered any documents and releases that Lender determines to be necessary. The appointment of Lender as Borrowers attorney, and each and every one of its rights and powers, being coupled with an interest,
is irrevocable until all of the Obligations have been fully and finally repaid and performed and Lenders obligations to extend credit hereunder are terminated.





4.6  Right to Inspect.    Lender and its officers, employees, or agents shall have the right, from time to time hereafter, to
inspect the Books and to check, test, and appraise the Collateral in order to verify Borrowers financial condition or the amount, quality, value, condition of, or any other matter relating to, the Collateral; provided that, so long as
no Default or Event of Default shall have occurred and be continuing, Lender shall conduct the foregoing activities during normal business hours.





4.7  Control Agreements.    Borrower agrees that it will not transfer assets out of any Securities Accounts other than as permitted under Section 7.19
and, if to another securities intermediary, unless each of Borrower, Lender, and the substitute securities intermediary have entered into a Control Agreement. No arrangement contemplated hereby or by any Control Agreement in respect of any
Securities Accounts or other Investment Property shall be modified by Borrower without the prior written consent of Lender. Upon the occurrence




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and during the continuance of an Event of Default, Lender may notify any securities intermediary to
liquidate the applicable Securities Account or any related Investment Property maintained or held thereby and remit the proceeds thereof to the Lenders Account.





4.8  Commercial Tort Claims.    Borrower shall promptly notify Lender in writing upon incurring or otherwise obtaining a
commercial tort claim (as that term is defined in the Code), claiming an amount in excess of $100,000, after the date hereof against any third party and, upon request of Lender, promptly amend Schedule C-1 to this Agreement, authorize the
filing of additional or amendments to existing financing statements and do such other acts or things deemed necessary or desirable by Lender to give Lender a security interest in any such commercial tort claim.





|5. |  | REPRESENTATIONS AND WARRANTIES.
|-- |  | -------------------------------




In order to induce Lender to enter into this Agreement, Borrower makes the following representations and warranties to Lender with respect to itself and, as applicable, its Subsidiaries, each of which
shall be true, correct, and complete, in all material respects, as of the date hereof, and shall be true, correct, and complete, in all material respects, as of the Closing Date, and at and as of the date of the making of each Advance (or other
extension of credit) made thereafter, as though made on and as of the date of such Advance (or other extension of credit) (except to the extent that such representations and warranties relate solely to an earlier date) and such representations and
warranties shall survive the execution and delivery of this Agreement:





5.1  No
Encumbrances.    Borrower has good and indefeasible title to the Collateral and the Real Property, if any, free and clear of Liens except for Permitted Liens.





5.2  Eligible Accounts.    The Eligible Accounts are bona fide existing payment obligations of Account Debtors created by
the rendition of services to such Account Debtors in the ordinary course of Borrowers business, owed to Borrower without defenses, disputes, offsets, counterclaims, or rights of return or cancellation. As to each Account that is identified by
Borrower as an Eligible Account in a borrowing base report submitted to Lender, such Account is not excluded as ineligible by virtue of one or more of the excluding criteria set forth in the definition of Eligible Accounts.





5.3  [Intentionally Omitted]


.


5.4  Equipment.    All of the Equipment is used or held for use in Borrowers business and is fit for such purposes.





5.5  Location of Inventory and Equipment.    The Inventory, if any,
and Equipment are not stored with a bailee, warehouseman, or similar party and are located only at the locations identified on Schedule 5.5.




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5.6 Inventory Records.   If Borrower has Inventory, it
shall keep correct and accurate records itemizing and describing the type, quality, and quantity of such Inventory, and the book value thereof.





5.7 Location of Chief Executive Office; FEIN.  The chief executive office of Borrower is located at the address indicated in Schedule 5.7 and Borrowers FEIN is
identified in Schedule 5.7.





5.8 Due Organization nd Qualification; Subsidiaries.





(a)    Borrower is duly organized and existing and in good standing under the laws of the
jurisdiction of its organization and qualified to do business in any state where the failure to be so qualified reasonably could be expected to result in a Material Adverse Change.





(b)    Set forth on Schedule 5.8(b) is a complete and accurate description of the authorized capital Stock of Borrower, by class, and, as of the
Closing Date, a description of the number of shares of each such class that are issued and outstanding. Other than as described on Schedule 5.8(b), there are no subscriptions, options, warrants, or calls relating to any shares of
Borrowers capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. Borrower is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any
shares of its capital Stock or any security convertible into or exchangeable for any of its capital Stock.





(c)    Set forth on Schedule 5.8(c) is a complete and accurate list of Borrowers direct and indirect Subsidiaries, showing: (i) the jurisdiction of their organization, (ii) the number of shares of
each class of common and preferred Stock authorized for each of such Subsidiaries, and (iii) the number and the percentage of the outstanding shares of each such class owned directly or indirectly by Borrower. All of the outstanding capital Stock of
each such Subsidiary has been validly issued and is fully paid and non-assessable.





(d)    Except as set forth on Schedule 5.8(c), there are no subscriptions, options, warrants, or calls relating to any shares of Borrowers Subsidiaries capital Stock, including any right of
conversion or exchange under any outstanding security or other instrument. Neither Borrower nor any of its Subsidiaries is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of Borrowers
Subsidiaries capital Stock or any security convertible into or exchangeable for any such capital Stock.





5.9 Due Authorization; No Conflict.    The execution, delivery, and performance by Borrower of this Agreement and the Loan Documents to which it is a party have been duly authorized by all necessary
action on the part of Borrower.




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(a)    The execution, delivery, and performance by Borrower
of this Agreement and the Loan Documents to which it is a party do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to Borrower, the Governing Documents of Borrower, or any order, judgment, or
decree of any court or other Governmental Authority binding on Borrower, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of Borrower, (iii)
result in or require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of Borrower, other than Permitted Liens, or (iv) require any approval of Borrowers interestholders or any approval or consent of
any Person under any material contractual obligation of Borrower.





(b)    Other than the
filing of financing statements, the execution, delivery, and performance by Borrower of this Agreement and the Loan Documents to which Borrower is a party do not and will not require any registration with, consent, or approval of, or notice to, or
other action with or by, any Governmental Authority or other Person.





(c)    This Agreement
and the other Loan Documents to which Borrower is a party, and all other documents contemplated hereby and thereby to which Borrower is a party, when executed and delivered by Borrower will be the legally valid and binding obligations of Borrower,
enforceable against Borrower in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors
rights generally.





(d)    The Lenders Liens are validly created, perfected, and first
priority Liens, subject only to Permitted Liens.





(e)    The execution, delivery, and
performance by each Guarantor of the Loan Documents to which such Guarantor is a party have been duly authorized by all necessary action on the part of such Guarantor.





(f)    The execution, delivery, and performance by each Guarantor of the Loan Documents to which such Guarantor is a party do not and will not (i)
violate any provision of federal, state, or local law or regulation applicable to such Guarantor, the Governing Documents of such Guarantor, or any order, judgment, or decree of any court or other Governmental Authority binding on such Guarantor,
(ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of Guarantor, (iii) result in or require the creation or imposition of any Lien of any nature
whatsoever upon any properties or assets of such Guarantor, other than Permitted Liens, or (iv) require any approval of such Guarantors interestholders or any approval or consent of any Person under any material contractual obligation of such
Guarantor.




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(g)    The execution, delivery, and performance by each
Guarantor of the Loan Documents to which such Guarantor is a party do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority or other Person.





(h)    The Loan Documents to which each Guarantor is a party, and all other documents contemplated hereby
and thereby, when executed and delivered by such Guarantor will be the legally valid and binding obligations of such Guarantor, enforceable against such Guarantor in accordance with their respective terms, except as enforcement may be limited by
equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors rights generally.





5.10    Litigation.  Other than those matters disclosed on Schedule 5.10, there are no actions, suits, or proceedings pending or, to the best
knowledge of Borrower, threatened against Borrower, or any of its Subsidiaries, as applicable, except for (a) matters that are fully covered by insurance (subject to customary deductibles), and (b) matters arising after the Closing Date that, if
decided adversely to Borrower, or any of its Subsidiaries, as applicable, reasonably could not be expected to result in a Material Adverse Change.





5.11    No Material Adverse Change.  All financial statements relating to Borrower or any Guarantor that have been delivered by Borrower to Lender have been
prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end audit adjustments) and present fairly in all material respects, such Borrowers or
Guarantors, as applicable, financial condition as of the date thereof and results of operations for the period then ended. There has not been a Material Adverse Change with respect to Borrower or any Guarantor, as applicable since the date of
the latest financial statements submitted to Lender on or before the Closing Date.





5.12    Fraudulent Transfer.





(a)    Borrower is Solvent.





(b)    No transfer of
property is being made by Borrower and no obligation is being incurred by Borrower in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future
creditors of Borrower.





5.13    Employee Benefits.  None of Borrower,
any of its Subsidiaries, or any of their ERISA Affiliates has maintained or contributed to, or currently maintains or contributes to, any Benefit Plan.





5.14    Environmental Condition.  Except as set forth on Schedule 5.14, (a) to Borrowers knowledge, none of Borrowers assets has ever been
used by Borrower or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or




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transport, any Hazardous Materials, where such production, storage, handling, treatment, release or
transport was in violation, in any material respect, of applicable Environmental Law, (b) to Borrowers knowledge, none of Borrowers properties or assets has ever been designated or identified in any manner pursuant to any environmental
protection statute as a Hazardous Materials disposal site, (c) Borrower has not received notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property owned or operated by Borrower, and (d) Borrower has
not received a summons, citation, notice, or directive from the Environmental Protection Agency or any other federal or state governmental agency concerning any action or omission by Borrower resulting in the releasing or disposing of Hazardous
Materials into the environment.





5.15    Brokerage Fees.  Borrower has
not utilized the services of any broker or finder in connection with Borrowers obtaining financing from Lender under this Agreement and no brokerage commission or finders fee is payable by Borrower in connection herewith.





5.16    Intellectual Property.





(a)    Borrower and each of its Subsidiaries owns, or holds licenses in, all Intellectual Property Rights (in the case of software, limited to object
code rights) that are necessary to the conduct of its business as currently conducted. Attached hereto as Schedule 5.16(a) is a true, correct and complete listing of all material patents, patent applications, trademarks, trademark
applications, material copyrights and copyright registrations and applications as to which Borrower or any of its Subsidiaries is the owner or is an exclusive licensee.





(b)    Borrower represents and warrants that it has taken, and has caused its Subsidiaries to take, all action to protect the Borrower Intellectual
Property Rights, the failure of which would result in a Material Adverse Change, including, without limitation, (i) protecting the secrecy and confidentiality of Borrowers and its Subsidiaries confidential information and trade secrets
by having and enforcing a policy requiring all current and former employees, consultants, licensees, vendors and contractors to execute appropriate confidentiality and invention assignment agreements; (ii) ensuring that no trade secret of Borrower
or any of its Subsidiaries falls or has fallen into the public domain; and (iii) protecting the secrecy and confidentiality of the source code of all computer software programs and applications of which Borrower or any of its Subsidiaries is the
owner or licensee by having and enforcing a policy requiring any licensees of such source code to enter into license agreements with appropriate use and non-disclosure restrictions. The only material source code licenses to which Borrower or any of
its Subsidiaries is a party are set forth in Schedule 5.16(b).





(c)    To the best of
Borrowers knowledge, no past or present employee or contractor of Borrower or any of its Subsidiaries has any ownership interest, license, permission or other Intellectual Property Right in or to any material Borrower Intellectual Property
Rights.




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(d)    Borrower has made, and has caused its Subsidiaries to
make, all necessary payments, filings and recordations to protect and maintain its interest in material Borrower Intellectual Property Rights in the United States or any other jurisdiction, including, without limitation, (i) making all necessary
registration, maintenance, and renewal fee payments; and (ii) filing all necessary documents, including, without limitation, all applications for registration of copyrights, trademarks, and patents, except to the extent that (x) Borrower has
determined that such filings, recordations or registrations are not desirable in the conduct of the Borrowers business and (y) the failure to take such action would not result in a Material Adverse Change.





(e)    No claim has been made and is continuing or threatened that the use by Borrower or any of its Subsidiaries of
any item of General Intangibles is invalid or unenforceable or that the use by Borrower or any of its Subsidiaries of any General Intangibles does or may violate the rights of any Person, other than any such claim which would not cause a Material
Adverse Change. To the best of Borrowers knowledge, there is currently no infringement or unauthorized use of any item of Intellectual Property Rights contained on Schedule 5.16(a).





(f)    Borrower has filed, and has caused its Subsidiaries to file, applications and taken any and all other actions reasonably necessary to
register all Copyrights material to Borrower and any such Subsidiary, if any, in good faith in accordance with the procedures and regulations of the U.S. Copyright Office (or any similar office of any other jurisdiction in which any such Copyrights
are used).





5.17    Leases.  Borrower enjoys peaceful and undisturbed
possession under all leases material to the business of Borrower and to which it is a party or under which it is operating. All of such leases are valid and subsisting and, except with respect to the PNC Lease (such exception subject to the
execution and continued effectiveness and enforceability of the PNC Forbearance), no material default by Borrower exists under any of them.





5.18    DDAs.  Set forth on Schedule 5.18 are all of Borrowers DDAs, including, with respect to each depository, (i) the name and address of
such depository, and (ii) the account numbers of the accounts maintained with such depository.





5.19    Complete Disclosure.All factual information (taken as a whole) furnished by or on behalf of Borrower in writing to Lender (including all information contained in the Schedules
hereto or in the other Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents, or any transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter
furnished by or on behalf of Borrower in writing to Lender will be, true and accurate, in all material respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such
information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. On the Closing Date, the Closing Date Projections represent, and as of the date on




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which any other Projections are delivered to Lender, such additional Projections represent Borrowers good faith best estimate of its
future performance for the periods covered thereby.





5.20    Indebtedness. Set forth on Schedule 5.20 is a true and complete list of all Indebtedness of Borrower outstanding immediately prior to the Closing Date that is to remain
outstanding after the Closing Date and such Schedule accurately reflects the aggregate principal amount of such Indebtedness and the principal terms thereof.





5.21    Taxes and Payments.    Borrower and each of its Subsidiaries have filed all federal, state and provincial income tax returns and all
other material tax returns, domestic and foreign, required to be filed by them and have paid all taxes and assessments payable by them which have become due, except for those contested in good faith and adequately disclosed and fully provided for on
the financial statements of Borrower and its Subsidiaries, in accordance with GAAP and for which Borrower and its Subsidiaries, as applicable, have provided adequate reserves. Borrower has provided adequate reserves for the payment of all federal,
state, province, local and foreign income taxes applicable for the current fiscal year to date. There is no action, suit, proceeding, investigation, audit, or claim now pending or, to the knowledge of Borrower, threatened by any authority regarding
any taxes relating to Borrower or any of its Subsidiaries that could reasonably be expected to result in a material liability to Borrower or any of its Subsidiaries. As of the Closing Date, neither the Borrower nor any of its Subsidiaries has
entered into an agreement or waiver or been requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of taxes of the Borrower or any of its Subsidiaries, or is aware of any
circumstances that would cause the taxable years or other taxable periods of Borrower or any of its Subsidiaries not to be subject to the normally applicable statute of limitations.





5.22    MCI Agreement.    Borrower has delivered to Lender a true, correct and complete copy of the MCI
Agreement. All of the representations and warranties of the Borrower in the MCI Agreement are true and correct in all respects.





5.23    Payments from MCI.    Other than as disclosed in writing to Lender, if any, all payments received by Borrower from MCI during the 90-day period prior to the commencement
of the MCI Bankruptcy were:





(a)    in payment of a debt incurred by MCI in the ordinary
course of business or financial affairs of MCI and Borrower;





(b)    made in the ordinary
course of business or financial affairs of MCI and Borrower; and





(c)    made according to
ordinary business terms.




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6.    AFFIRMATIVE COVENANTS.





Borrower covenants and agrees that, so long as any credit hereunder shall be available and until full and final payment of the
Obligations, Borrower shall and shall cause each of its Subsidiaries (including any and all Additional Subsidiaries) to do all of the following:





6.1    Accounting System.    Maintain a system of accounting that enables Borrower to produce financial statements in accordance with GAAP
and maintain records pertaining to the Collateral that contain information as from time to time reasonably may be requested by Lender. Borrower also shall keep an inventory reporting system that shows all additions, sales, claims, returns, and
allowances with respect to the Inventory.





6.2    Collateral
Reporting.    Provide Lender with the following documents at the following times in form satisfactory to Lender:





No Less Frequently than Weekly

(a) a sales journal, collection journal, and credit register since the last such schedule and a calculation of the Borrowing Base as of such date,
and  (b) notice of all returns, disputes, or claims.Weekly

(c) a detailed aging of Eligible Billed Accounts,  (d) a detailed accounting of Eligible Unbilled Accounts,  (e) a reconciliation of Eligible Billed Accounts and Eligible
Unbilled Accounts to avoid redundancy of such Accounts in calculating the Borrowing Base,  (f) a detailed calculation of the Borrowing
Base (including detail regarding those Accounts that are not Eligible Accounts),  (g) a cash forecast for the immediately succeeding 12
week-period,  (h) a detailed aging, by total, of the Accounts, together with a reconciliation to the detailed calculation of the Borrowing
Base previously provided to Lender, and  (i) a summary aging, by vendor, of Borrower's accounts payable and any book
overdraft.  (i) a summary aging, by vendor, of Borrowers accounts payable and any book overdraft.Monthly (not later than the 10th day of each

(j) a detailed calculation of monthly payroll tax with evidence of payment thereof,




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month)

(k) a detailed calculation of monthly rental payments with evidence of such payments, and  (l) a calculation of Dilution for the prior month.Quarterly

(m) a report regarding Borrowers accrued, but unpaid, ad valorem taxesUpon request by Lender

(n) a detailed list of Borrower's customers,  (o)
copies of invoices in connection with the Accounts, credit memos, remittance advices, deposit slips, shipping and delivery documents in connection with the Accounts and, for Inventory and Equipment acquired by Borrower, purchase orders and invoices,
and  (p) such other reports as to the Collateral, or the financial condition of Borrower, as Lender may request.





In addition, Borrower agrees to cooperate fully with Lender to
facilitate and implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth above.





6.3    Financial Statements, Reports, Certificates. Deliver to Lender:





(a)     as soon as available, but in any event within 30 days (45 days in the case of a month that is the end of one of the first three (3) fiscal quarters in a fiscal year)
after the end of each month during each of Borrowers fiscal years,





(i)     a company prepared consolidated balance sheet, income statement, and statement of cash flow covering Borrowers and its Subsidiaries operations during such period,





(ii)    a certificate signed by the chief financial officer of Borrower to the effect that:





(A) the financial statements delivered hereunder have been prepared in accordance with GAAP
(except for the lack of footnotes and being subject to year-end audit adjustments) and fairly present in all material respects the financial condition of Borrower and its Subsidiaries,





(B) the representations and warranties of Borrower contained in this Agreement and the other Loan Documents are true and correct in all material respects
on and as of the date of such certificate, as though




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made on and as of such date (except to the extent that such representations and
warranties relate solely to an earlier date), and





(C)  there does not exist any
condition or event that constitutes a Default or Event of Default (or, to the extent of any non-compliance, describing such non-compliance as to which he or she may have knowledge and what action Borrower has taken, is taking, or proposes to take
with respect thereto), and





(iii)  for each month that is the date on which a financial
covenant in Section 7.20 is to be tested, a Compliance Certificate demonstrating, in reasonable detail, compliance at the end of such period with the applicable financial covenants contained in Section 7.20, and





(b)  as soon as available, but in any event within 90 days after the end of each of Borrowers
fiscal years,





(i)  financial statements of Borrower and its Subsidiaries for each such
fiscal year, audited by independent certified public accountants reasonably acceptable to Lender and certified, without any qualifications, by such accountants to have been prepared in accordance with GAAP (such audited financial statements to
include a balance sheet, income statement, and statement of cash flow and, if prepared, such accountants letter to management),





(ii)  a certificate of such accountants addressed to Lender stating that such accountants do not have knowledge of the existence of any Default or Event of Default under Section 7.20,





(c)  as soon as available, but in any event within 30 days prior to the start of each
of Borrowers fiscal years,





(i)  copies of Borrowers Projections, in form
and substance (including as to scope and underlying assumptions) satisfactory to Lender, in its sole discretion, for the forthcoming three (3) years, year by year, and for the forthcoming fiscal year, month by month, certified by the chief financial
officer of Borrower as being such officers good faith best estimate of the financial performance of Borrower during the period covered thereby,





(d)  if and when filed by Borrower,





(i)  Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports,




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(ii)  any other filings made by Borrower with the SEC,





(iii)  copies of Borrowers federal income tax returns, and any amendments
thereto, filed with the Internal Revenue Service, and





(iv)  any other information that
is provided by Borrower to its shareholders generally,





(e)  if and when filed by Borrower and as
requested by Lender, satisfactory evidence of payment of applicable excise taxes in each jurisdictions in which (i) Borrower conducts business or is required to pay any such excise tax, (ii) where Borrowers failure to pay any such applicable
excise tax would result in a Lien on the properties or assets of Borrower, or (iii) where Borrowers failure to pay any such applicable excise tax reasonably could be expected to result in a Material Adverse Change,





(f)  within 5 days after the end of each month, evidence satisfactory to Lender that all amounts owed by Borrower under the PNC
Lease for the immediately preceding month shall have been paid in full by Borrower,





(g)  as soon as
Borrower has knowledge of any event or condition that constitutes a Default or an Event of Default, notice thereof and a statement of the curative action that Borrower proposes to take with respect thereto, and





(h)  upon the request of Lender, any other report reasonably requested relating to the financial condition of Borrower.





In addition to the financial statements referred to above, Borrower agrees to deliver financial statements
prepared on both a consolidated and consolidating basis and agrees that no Subsidiary of Borrower will have a fiscal year different from that of Borrower. Borrower agrees that its independent certified public accountants are authorized to
communicate with Lender and to release to Lender whatever financial information concerning Borrower Lender reasonably may request. Borrower waives the right to assert a confidential relationship, if any, it may have with any accounting firm or
service bureau in connection with any information requested by Lender pursuant to or in accordance with this Agreement, and agrees that Lender may contact directly any such accounting firm or service bureau in order to obtain such information.





6.4    Guarantor Reports.    Cause each Guarantor to
deliver its annual financial statements at the time when Borrower provides its audited financial statements to Lender and copies of all federal income tax returns as soon as the same are available and in any event no later than 30 days after the
same are required to be filed by law (subject to any permitted extensions with respect thereto).




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6.5    Return.  Cause returns and
allowances, as between Borrower and its Account Debtors, to be on the same basis and in accordance with the usual customary practices of Borrower, as they exist at the time of the execution and delivery of this Agreement. If, at a time when no Event
of Default has occurred and is continuing, any Account Debtor returns any Inventory to Borrower, Borrower promptly shall determine the reason for such return and, if Borrower accepts such return, issue a credit memorandum (with a copy to be sent to
Lender) in the appropriate amount to such Account Debtor. If, at a time when an Event of Default has occurred and is continuing, any Account Debtor returns any Inventory to Borrower, Borrower promptly shall determine the reason for such return and,
if Lender consents (which consent shall not be unreasonably withheld), issue a credit memorandum (with a copy to be sent to Lender) in the appropriate amount to such Account Debtor.





6.6    Maintenance of Properties.  Maintain and preserve all of its properties which are necessary in the proper conduct to its
business in good working order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all leases to which it is a party as lessee so as to prevent any loss or forfeiture thereof or thereunder.





6.7    Taxes.  Cause all assessments and taxes, whether real, personal, or
otherwise, due or payable by, or imposed, levied, or assessed against Borrower or any of its assets to be paid in full, before delinquency or before the expiration of any extension period, except to the extent that the validity of such assessment or
tax shall be the subject of a Permitted Protest. Borrower will make timely payment or deposit of all tax payments and withholding taxes required of it by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and
local, state, and federal income taxes, and will, upon request, furnish Lender with proof satisfactory to Lender indicating that Borrower has made such payments or deposits. Borrower shall deliver satisfactory evidence of payment of applicable
excise taxes in each jurisdiction in which Borrower is required to pay any such excise tax.





6.8    Insurance.





(a)    At
Borrowers expense, maintain insurance respecting its assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same or similar
businesses. Borrower also shall maintain extra expense, public liability, and product liability insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be in such
amounts and with such insurance companies as are reasonably satisfactory to Lender. Borrower shall deliver copies of all such policies to Lender with a satisfactory lenders loss payable endorsement naming Lender as sole loss payee or
additional insured, as appropriate. Each policy of insurance or endorsement shall contain a clause requiring the insurer to give not less than 30 days prior written notice to Lender in the event of cancellation of the policy for any reason
whatsoever.





(b)    Borrower shall give Lender prompt notice of any loss covered by such
insurance. Lender shall have the exclusive right to adjust any losses payable under




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any such insurance policies in excess of $250,000, without any liability to Borrower whatsoever in
respect of such adjustments. Any monies received as payment for any loss under any insurance policy mentioned above (other than liability insurance policies) or as payment of any award or compensation for condemnation or taking by eminent domain,
shall be paid over to Lender to be applied at the option of Lender either to the prepayment of the Obligations or shall be disbursed to Borrower under staged payment terms reasonably satisfactory to Lender for application to the cost of repairs,
replacements, or restorations. Any such repairs, replacements, or restorations shall be effected with reasonable promptness and shall be of a value at least equal to the value of the items of property destroyed prior to such damage or destruction.





(c)    Borrower will not take out separate insurance concurrent in form or contributing in
the event of loss with that required to be maintained under this Section 6.8, unless Lender is included thereon as named insured with the loss payable to Lender under a lenders loss payable endorsement or its equivalent. Borrower
immediately shall notify Lender whenever such separate insurance is taken out, specifying the insurer thereunder and full particulars as to the policies evidencing the same, and copies of such policies promptly shall be provided to Lender.





(d)    Within 30 days after the Closing Date, Borrower shall furnish Lender with an
Absolute Assignment of each key man life insurance policy maintained by Borrower, shall record each such Absolute Assignment with the issuer of the respective policy, and shall furnish proof of such issuers acceptance
of such assignment. All proceeds payable under such key man life insurance policies shall be payable to Lender to be applied on account of the Obligations in accordance with Section 2.4(b).





6.9    Location of Inventory and Equipment.  Keep the Inventory, if any, and Equipment only at
the locations identified on Schedule 5.5; provided, however, that Borrower may amend Schedule 5.5 so long as such amendment occurs by written notice to Lender not less than 30 days prior to the date on which Inventory or
Equipment is moved to such new location, so long as such new location is within the continental United States or Canada, and so long as, at the time of such written notification, Borrower provides any financing statements or fixture filings
necessary to perfect and continue perfected the Lenders Liens on such assets and also provides to Lender a Collateral Access Agreement.





6.10    Compliance with Laws.  Comply with the requirements of all applicable laws, rules, regulations, and orders of any Governmental Authority, including
the Fair Labor Standards Act and the Americans With Disabilities Act, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, would not result in and reasonably could not be expected to result
in a Material Adverse Change.





6.11    Leases.  Pay when due all rents
and other amounts payable under any leases to which Borrower is a party or by which Borrowers properties and assets are bound, unless such payments are the subject of a Permitted Protest.




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6.12    Brokerage Commissions.  Pay
any and all brokerage commission or finders fees incurred in connection with or as a result of Borrowers obtaining financing from Lender under this Agreement. Borrower agrees and acknowledges that payment of all such brokerage commissions or
finders fees shall be the sole responsibility of Borrower, and Borrower agrees to indemnify, defend, and hold Lender harmless from and against any claim of any broker or finder arising out of Borrowers obtaining financing from Lender under
this Agreement.





6.13    Existence.  At all times preserve and keep in
full force and effect Borrowers valid existence and good standing and any rights and franchises material to Borrowers businesses.





6.14Environmental.  Keep any property either owned or operated by Borrower free of any Environmental Liens or post bonds or other financial
assurances sufficient to satisfy the obligations or liability secured by such Environmental Liens, (b) comply, in all material respects, with Environmental Laws and provide to Lender documentation of such compliance which Lender reasonably requests,
(c) promptly notify Lender of any release of a Hazardous Material in any reportable quantity from or onto property owned or operated by Borrower and take any Remedial Actions required to abate said release or otherwise to come into compliance with
applicable Environmental Law, and (d) promptly provide Lender with written notice within 10 days of the receipt of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of Borrower,
(ii) commencement of any Environmental Action or notice that an Environmental Action will be filed against Borrower, and (iii) notice of a violation, citation, or other administrative order which reasonably could be expected to result in a Material
Adverse Change.





6.15    Disclosure Updates.  Promptly and in no event
later than five (5) Business Days after obtaining knowledge thereof, (a) notify Lender if any written information, exhibit, or report furnished to Lender contained any untrue statement of a material fact or omitted to state any material fact
necessary to make the statements contained therein not misleading in light of the circumstances in which made, and (b) correct any defect or error that may be discovered therein or in any Loan Document or in the execution, acknowledgement, filing,
or recordation thereof.





6.16    Intellectual Property Rights.





(a)    Should Borrower (or any of its Subsidiaries) obtain an ownership interest in any Intellectual
Property Right which is not now a part of the Collateral, Borrower agrees that (i) any such Intellectual Property Right shall automatically become Collateral and (ii) Borrower shall give prompt written notice thereof to Lender in accordance with
Section 12 hereof. Borrower authorizes Lender to modify this Agreement by amending Schedule 5.16(a) (and will cooperate reasonably with Lender in effecting any such amendment) to include any Intellectual Property Right which becomes
part of the Collateral under this Section.




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(b)    Subject to the last sentence of this subsection, to
take, and to cause any of its Subsidiaries to take, all necessary steps, including, without limitation, making all necessary payments and filings in connection with registration, maintenance, and renewal of copyrights, trademarks, and patents in the
U.S. Copyright Office, the U.S. Patent and Trademark Office, any other appropriate government agencies in foreign jurisdictions or in any court, to maintain each material Borrower Intellectual Property Right. Borrower agrees to take, and to cause
its Subsidiaries to take, corresponding steps with respect to each new or acquired material Intellectual Property Right to which it is now or later becomes entitled. Any expenses incurred in connection with such activities shall be borne solely by
Borrower. Borrower shall not, and shall not allow its Subsidiaries to, discontinue use of or otherwise abandon, or fail to register, any Intellectual Property Right without the written consent of Lender, unless Borrower shall have previously
determined that such use or the pursuit or maintenance of such registration is not desirable in the conduct of Borrowers business and that the loss thereof will not cause a Material Adverse Change, in which case, Borrower will give notice of
any such abandonment or failure to register same to Lender pursuant to the terms of Section 12 hereof.





(c)    Continue to take, and cause its Subsidiaries to continue to take, all actions reasonably necessary to protect such Borrowers Intellectual Property Rights, including, without limitation, such steps as
are set forth in Sections 5.16(a) and (b) above. Borrower further agrees to give Lender prompt written notice in accordance with Section 12 hereof if Borrower or any of its Subsidiaries enters into any agreements after the
Closing Date pursuant to which it grants any right to a third party to use or access the source code of any computer software programs or applications of which such Borrower or any of its Subsidiaries is the owner or licensee. Borrower authorizes
Lender to modify this Agreement by amending Schedule 5.16(b) (and will cooperate reasonably with Lender in effecting any such amendment) to include any such additional license grant(s).





(d)    Notify Lender promptly and in writing if it learns (i) that any item of the Intellectual Property Rights contained on Schedule
5.16(a) may be determined to have become abandoned or (ii) of any adverse determination or the institution of any proceeding (including, without limitation, the institution of any proceeding in the U.S. Copyright Office, U.S. Patent and
Trademark Office and any other appropriate government agencies in foreign jurisdictions, or any court) regarding any item of the Intellectual Property Rights that would cause a Material Adverse Change.





(e)    In the event that Borrower becomes aware that any item of the General Intangibles is infringed or
misappropriated by a third party, Borrower shall promptly notify Lender and shall take such actions as Borrower or Lender deems appropriate under the circumstances to protect such General Intangibles, including, without limitation, suing for
infringement or misappropriation and for an injunction against such infringement or misappropriation, unless any such infringement or misappropriation would not cause a




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Material Adverse Change. Any expense incurred in connection with such activities shall be borne solely
by Borrower.





(f)    Should Borrower obtain an ownership interest in, or license of, material
Copyrights after the Closing Date, it shall, promptly after such acquisition, file applications and take any and all other actions reasonably necessary to register all such Copyrights in good faith in accordance with the procedures and regulations
of the U.S. Copyright Office (or any similar office of any other jurisdiction in which any such Copyrights are used).





6.17    Minimum Outstanding Advance. During the 90-day period immediately succeeding the Closing Date, maintain outstanding Advances in an amount equal to the lesser of (a) $5,000,000 and (b)
Availability.





6.18    MCI Agreement. Promptly provide Lender with true
and complete copies of any and all material documents or other written information delivered to Borrower or MCI pursuant to, or in connection with, the MCI Agreement.





6.19Additional Subsidiaries. If a Subsidiary of Borrower is formed after the Closing Date (an Additional
Subsidiary), then (a) Borrower shall notify Lender thereof promptly, and in any event within two (2) Business Days, after such formation, (b) the direct parent of such Additional Subsidiary shall promptly, and in any event, within five (5)
Business Days of request by Lender and delivery to Borrower of a form of Securities Pledge Agreement, execute and deliver to Lender such Securities Pledge Agreement, appropriately completed, providing that all of the outstanding shares of Stock of
such Additional Subsidiary be pledged to Lender as collateral security for the Obligations, and deliver to Lender the certificate(s) representing such Stock, together with stock powers and instruments of assignment and transfer in such form as
Lender may request, (c) such Additional Subsidiary shall promptly, and in any event, within five (5) Business Days of request by Lender and delivery to Borrower of form documentation, execute and deliver (i) the Guaranty in respect of the
Obligations, (ii) the Guarantor Security Agreement granting to Lender a security interest in all of such Additional Subsidiarys assets as security for the Additional Subsidiarys obligations under the Guaranty, (iii) the Intercompany
Subordination Agreement and (iv) proof of corporate action, incumbency of officers, opinions of counsel and other documents as Lender may reasonably request, and (d) promptly, and in any event, within five (5) Business Days of such Person becoming
an Additional Subsidiary, make representations and warranties (of the nature made hereunder by Borrower) to Lender and undertake such obligations as Lender may reasonably request.




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7.    NEGATIVE COVENANTS.





Borrower covenants and agrees that, so long as any credit hereunder shall be available and until full and final payment of the
Obligations, Borrower will not and will not permit any of its Subsidiaries (including any and all Additional Subsidiaries) to do any of the following:





7.1  Indebtedness.  Create, incur, assume, permit, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except:





(a)  Indebtedness evidenced by this Agreement and the other Loan Documents, together with Indebtedness
owed to Underlying Issuers with respect to Underlying Letters of Credit;





(b)  Indebtedness set forth
on Schedule 5.20;





(c)  Permitted Purchase Money Indebtedness;





(d)  refinancings, renewals, or extensions of Indebtedness permitted under clauses (b) and (c) of this Section 7.1 (and
continuance or renewal of any Permitted Liens associated therewith) so long as: (i) the terms and conditions of such refinancings, renewals, or extensions do not, in Lenders Permitted Discretion, materially impair the prospects of repayment of
the Obligations by Borrower or materially impair Borrowers creditworthiness, (ii) such refinancings, renewals, or extensions do not result in an increase in the principal amount of, or interest rate with respect to, the Indebtedness so
refinanced, renewed, or extended, (iii) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that,
taken as a whole, are materially more burdensome or restrictive to Borrower, and (iv) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the
refinancing, renewal, or extension Indebtedness must include subordination terms and conditions that are at least as favorable to Lender as those that were applicable to the refinanced, renewed, or extended Indebtedness;





(e)  Indebtedness comprising Permitted Investments;





(f)  Indebtedness of Borrower owed to any of its Subsidiaries or Indebtedness of a Subsidiary of Borrower owed to Borrower so long as, in each such case, such
Indebtedness is (i) not secured by any of the assets or properties of Borrower or any Subsidiary of Borrower and (ii) subject to the terms and provisions of the Intercompany Subordination Agreement; and




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(g) Indebtedness in respect of obligations under currency swaps (with respect to
payments received in Canadian dollars) and interest rate swaps, in each case entered into by Borrower solely for hedging purposes.





7.2  Liens.  Create, incur, assume, or permit to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind, whether now owned or hereafter acquired, or any
income or profits therefrom, except for Permitted Liens (including Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is refinanced, renewed, or extended under Section 7.1(d) and so long as the
replacement Liens only encumber those assets that secured the refinanced, renewed, or extended Indebtedness).





7.3  Restrictions on Fundamental Changes.





(a)  Enter into any
merger, consolidation or reorganization.





(b)  Liquidate, wind up, or dissolve itself (or suffer any
liquidation or dissolution).





(c)  Convey, sell, lease, license, assign, transfer, or otherwise dispose
of, in one transaction or a series of transactions, all or any substantial part of its assets; provided, however, that so long as no Default or Event of Default exists or would result therefrom:





(1)  any Guarantor may merge or consolidate with Borrower or any other Guarantor;





(2)  any of the Guarantors may sell, lease, transfer or otherwise dispose of any of its assets to Borrower or
any other Guarantor; and





(3)  any Guarantor may be dissolved or liquidated, so long as
such dissolution or liquidation results in all assets of such Guarantor being owned by Borrower or another Guarantor.





7.4  Disposal of Assets.  Other than Permitted Dispositions, convey, sell, lease, license, assign, transfer, or otherwise dispose of any of Borrowers assets.





7.5  Change Name.  Change Borrowers name, FEIN, corporate structure, or identity, or add any new
fictitious name; provided, however, that Borrower may change its name or add a new fictitious name upon at least 30 days prior written notice to Lender of such change or addition and so long as, at the time of such written
notification, Borrower provides any financing statements or fixture filings necessary to perfect and continue perfected the Lenders Liens.




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7.6  Guarantee.  Guarantee or otherwise become
in any way liable with respect to the obligations of any third Person except by endorsement of instruments or items of payment for deposit to the account of Borrower or which are transmitted or turned over to Lender; provided, that Borrower may
guarantee obligations of its Subsidiaries under leases to which any such Subsidiary is party, so long as such guaranty is (a) not secured by any of the assets or properties of Borrower or any of its Subsidiaries that are not otherwise subject to
such lease and (b) otherwise permitted under Section 7.20(b) assuming the underlying obligations under such leases are treated as capital expenditures for purposes thereof.





7.7  Nature of Business.  Make any change in the principal nature of its business.





7.8  Prepayments and Amendments.





(a) Except in connection with a refinancing permitted by Section 7.1(d), prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of Borrower, other than the Obligations in
accordance with this Agreement, and





(b) Except in connection with a refinancing permitted by Section
7.1(d), directly or indirectly, amend, modify, alter, increase, or change any of the terms or conditions of any agreement, instrument, document, indenture, or other writing evidencing or concerning Indebtedness permitted under Sections
7.1(b) or 7.1(c), except that Borrower may amend, modify, alter, increase or change any of the terms or conditions of any agreement, instrument, document, indenture or other writing evidencing or concerning Indebtedness permitted under
Section 7.1(b) or 7.1(c) in order to (i) cure ambiguities, (ii) correct inconsistencies, (iii) extend maturities, (iv) change conversion features or (v) waive or amend covenants or other provisions, which waivers or amendments would
not adversely affect Lender (provided, however, that Borrower shall immediately following the execution of any such amendment, modification, alteration or change, provide Lender with a copy thereof).





7.9  [Intentionally Omitted].





7.10  Consignments.  Consign any Inventory or sell any Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale.





7.11  Distributions.  Make any distribution or declare or pay any dividends (in cash or other
property, other than common Stock) on, or purchase, acquire, redeem, or retire any of Borrowers Stock, of any class, whether now or hereafter outstanding, except dividends paid by Borrowers Subsidiaries to Borrower.





7.12  Accounting Methods.  Modify or change its method of accounting (other than as may be
required to conform to GAAP) or enter into, modify, or terminate any agreement currently existing, or at any time hereafter entered into with any third party accounting firm or service bureau for the preparation or storage of Borrowers
accounting records without




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said accounting firm or service bureau agreeing to provide Lender information regarding the Collateral
or Borrowers financial condition.





7.13  Investments.  Except for
Permitted Investments, directly or indirectly, make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment; provided, however, that Borrower and its Subsidiaries
shall not have Permitted Investments (other than in the Cash Management Accounts) in deposit accounts or Securities Accounts in excess of $100,000 outstanding at any one time unless Borrower or its Subsidiary, as applicable, and the applicable
securities intermediary or bank have entered into Control Agreements governing such Permitted Investments, as Lender shall determine in its Permitted Discretion, to perfect (and further establish) the Lenders Liens in such Permitted
Investments; provided, further, however, that, with respect to the Permitted Investments held in Borrowers deposit account with CIBC Bank (Account number 7240-02-02312), Borrower shall have until 60 days after the Closing
Date to enter into, and deliver to Lender, a Control Agreement with CIBC Bank governing such Permitted Investments, as Lender shall determine in its Permitted Discretion, to perfect (and further establish) the Lenders Liens in such Permitted
Investments.





7.14  Transactions with Affiliates.  Directly or indirectly enter
into or permit to exist any transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of Borrowers business, upon fair and reasonable terms, that are fully disclosed to Lender, and that are no less
favorable to Borrower than would be obtained in an arms length transaction with a non-Affiliate.





7.15  Suspension.  Suspend or go out of a substantial portion of its business.





7.16  Compensation.  Pay excessive or unreasonable salaries or bonuses to its officers or senior managers.





7.17  Use of Proceeds.  Use the proceeds of the Advances for any purpose other than (a) on the Closing Date, (i) to repay, in full, the outstanding principal, accrued
interest, and accrued fees and expenses owing to Existing Lender, and (ii) to pay transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, and
(b) thereafter, consistent with the terms and conditions hereof, for its lawful and permitted purposes.





7.18  Change in Location of Chief Executive Office; Inventory and Equipment with Bailees.  Relocate its chief executive office to a new location without providing 30 days prior written notification
thereof to Lender and so long as, at the time of such written notification, Borrower provides any financing statements or fixture filings necessary to perfect and continue perfected the Lenders Liens and also provides to Lender a Collateral
Access Agreement with respect to such new location. The Inventory and Equipment shall not at any time now or hereafter be stored with a bailee, warehouseman, or similar party without Lenders prior written consent.




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7.19  Securities Accounts.  Establish or
maintain any Securities Account unless Lender shall have received a Control Agreement in respect of such Securities Account. Borrower shall not transfer assets out of any Securities Account; provided, however, that, so long as no Event
of Default has occurred and is continuing or would result therefrom, Borrower may use such assets (and the proceeds thereof) to the extent not prohibited by this Agreement.





7.20  Financial Covenants.





(a)  Fail to maintain:





(i)Minimum EBITDA. EBITDA, measured on a fiscal quarter-end basis, of not less than the required amount set forth in the following table for the applicable period set forth opposite thereto;





Applicable Amount

Applicable Period$3,680,000

For the 3 month period ending September
30, 2002$8,048,000

For the 6 month period ending December
31, 2002$12,779,000

For the 9 month period ending March 31,
2003$17,695,000

For the 12 month period ending June 30,
2003$19,402,000

For the 12 month period ending each
fiscal quarter thereafter





(b)  Make:





(i)Capital Expenditures.  Capital expenditures in any fiscal period in excess of the amount
set forth in the following table for the applicable period (it being understood and agreed by the parties that, for purposes of this Section 7.20(b)(i), capital expenditures shall not include payments made in respect of Capital Leases of
equipment that are currently subject to the operating leases set forth on Schedule C-2 (subject to the aggregate limitations set forth on such Schedule C-2) to the extent that the conversion of any such operating lease to a Capital
Lease did not require, and




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was not accompanied by, the expenditure of moneys of Borrower or
any of its Subsidiaries).





Applicable Amount

Applicable Period$5,998,000.00

For the 6 month period ending December 31,
2002$14,475,000.00

For the 12 month period ending December 31,
2003$14,700,000.00

For the 12 month period ending December 31,
2004$9,188,000.00

For the 8 month period ending August 30,
2005





7.21    MCI
Agreement.    Directly or indirectly, amend, modify, alter, increase, or change any of the terms or conditions of the MCI Agreement, except that Borrower may amend, modify, alter, increase or change any of the terms or
conditions of the MCI Agreement, provided that such amendments, modifications, alterations, increases or changes would not materially adversely affect Borrower or Lender (provided, however, that Borrower shall immediately
following the execution of any such amendment, modification, alteration or change, provide Lender with a copy thereof).





8.    EVENTS OF DEFAULT.





Any one or more of the following events shall
constitute an event of default (each, an Event of Default) under this Agreement:





8.1If
Borrower fails to pay when due and payable, or when declared due and payable, all or any portion of the Obligations (whether of principal, interest (including any interest which, but for the provisions of the Bankruptcy Code, would have accrued on
such amounts), fees and charges due Lender, reimbursement of Lender Expenses, or other amounts constituting Obligations);





8.2If (a) Borrower fails to perform, keep, or observe any term, provision, condition, covenant, or agreement contained in Sections 6.1, 6.2, 6.3, 6.4, 6.5 or 6.11 and such failure or
neglect continues for a period of five (5) days after the date on which such failure or neglect first occurs, or (b) Borrower fails to perform, keep, or observe any term, provision, condition, covenant, or agreement contained in any other section of
this Agreement or in any of the other Loan Documents; provided, however, that, during any period of time that any




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such failure or neglect of Borrower referred to in this Section 8.2 exists, even if such failure
or neglect is not yet an Event of Default by virtue of the existence of a grace period or the pre-condition of the giving of a notice, the Lenders shall be relieved of their obligations to extend any credit under this Agreement;





8.3If any material portion of Borrowers or any of its Subsidiaries assets is attached, seized, subjected to
a writ or distress warrant, levied upon, or comes into the possession of any third Person;





8.4If an
Insolvency Proceeding is commenced by Borrower or any of its Subsidiaries;





8.5If an Insolvency Proceeding
is commenced against Borrower, or any of its Subsidiaries, and any of the following events occur: (a) Borrower or the Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency
Proceeding is not timely controverted, (c) the petition commencing the Insolvency Proceeding is not dismissed within 60 calendar days of the date of the filing thereof; provided, however, that, during the pendency of such period,
Lender shall be relieved of its obligations to extend credit hereunder, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial portion of the
business of, Borrower or any of its Subsidiaries, or (e) an order for relief shall have been entered therein;





8.6If Borrower or any of its Subsidiaries is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs;





8.7If a notice of Lien, levy, or assessment is filed of record with respect to any of Borrowers or any of its
Subsidiaries assets by the United States, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, or if any taxes or debts owing at any time hereafter to any one or more of such
entities becomes a Lien, whether choate or otherwise, upon any of Borrowers or any of its Subsidiaries assets and the same is not paid before such payment is delinquent;





8.8If a judgment or other claim becomes a Lien or encumbrance upon any material portion of Borrowers or any of its Subsidiaries assets, unless (a) any
such judgment or claim is stayed, released or discharged within 30 days or (b) all such judgments and claims, in the aggregate do not exceed $100,000;





8.9If there is a default in any material agreement to which Borrower or any of its Subsidiaries is a party and such default (a) occurs at the final maturity of the obligations thereunder, or
(b) results in a right by the other party thereto, irrespective of whether exercised, to accelerate the maturity of Borrowers or its Subsidiaries obligations thereunder, to terminate such agreement, or to refuse to renew such agreement
pursuant to an automatic renewal right therein;




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8.10  If Borrower or any of its Subsidiaries makes any payment
on account of Indebtedness that has been contractually subordinated in right of payment to the payment of the Obligations, except to the extent such payment is permitted by the terms of the subordination provisions applicable to such Indebtedness;





8.11  If any material misstatement or misrepresentation exists now or hereafter in any warranty,
representation, statement, or Record made to Lender by Borrower, its Subsidiaries, or any officer, employee, agent, or director of Borrower or any of its Subsidiaries;





8.12  If the obligation of Guarantor under the Guaranty is limited or terminated by operation of law or by Guarantor thereunder;





8.13  If this Agreement or any other Loan Document that purports to create a Lien, shall, for any reason, fail or cease
to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on or security interest in the Collateral covered hereby or thereby;





8.14  Any provision of any Loan Document shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall
be contested by Borrower, or a proceeding shall be commenced by Borrower, or by any Governmental Authority having jurisdiction over Borrower, seeking to establish the invalidity or unenforceability thereof, or Borrower shall deny that Borrower has
any liability or obligation purported to be created under any Loan Document;





8.15  If the MCI
Agreement is for any reason declared to be null and void, or the validity or enforceability thereof contested by the parties, or the MCI Agreement is terminated or amended (except in accordance with Section 7.21), or there is a default or
material breach of the MCI Agreement by any party thereto, or





8.16  If Borrower causes, permits
or suffers, directly or indirectly, any Change of Control.





9. LENDERS RIGHTS AND REMEDIES.





9.1 Rights and Remedies.    Upon the occurrence, and during the continuation, of an Event of Default,
Lender (at its election but without notice of its election and without demand) may do any one or more of the following, all of which are authorized by Borrower:





(a)    Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable;




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(b)    Cease advancing money or extending credit to or for
the benefit of Borrower under this Agreement, under any of the Loan Documents, or under any other agreement between Borrower and Lender;





(c)    Terminate this Agreement and any of the other Loan Documents as to any future liability or obligation of Lender, but without affecting any of the Lenders Liens in the Collateral and without
affecting the Obligations;





(d)    Settle or adjust disputes and claims directly with Account
Debtors for amounts and upon terms which Lender considers advisable, and in such cases, Lender will credit Borrowers Loan Account with only the net amounts received by Lender in payment of such disputed Accounts after deducting all Lender
Expenses incurred or expended in connection therewith;





(e)    Cause Borrower to hold all
returned Inventory in trust for Lender, segregate all returned Inventory from all other assets of Borrower or in Borrowers possession and conspicuously label said returned Inventory as the property of Lender;





(f)    Without notice to or demand upon Borrower or Guarantor, make such payments and do such acts as Lender considers
necessary or reasonable to protect its security interests in the Collateral. Borrower agrees to assemble the Personal Property Collateral if Lender so requires, and to make the Personal Property Collateral available to Lender at a place that Lender
may designate which is reasonably convenient to both parties. Borrower authorizes Lender to enter the premises where the Personal Property Collateral is located, to take and maintain possession of the Personal Property Collateral, or any part of it,
and to pay, purchase, contest, or compromise any Lien that in Lenders determination appears to conflict with the Lenders Liens and to pay all expenses incurred in connection therewith and to charge Borrowers Loan Account therefor.
With respect to any of Borrowers owned or leased premises, Borrower hereby grants Lender a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Lenders rights or remedies
provided herein, at law, in equity, or otherwise;





(g)    Without notice to Borrower (such
notice being expressly waived), and without constituting a retention of any collateral in satisfaction of an obligation (within the meaning of the Code), set off and apply to the Obligations any and all (i) balances and deposits of Borrower held by
Lender (including any amounts received in the Cash Management Accounts), or (ii) Indebtedness at any time owing to or for the credit or the account of Borrower held by Lender;





(h)    Hold, as cash collateral, any and all balances and deposits of Borrower held by Lender, and any amounts received in the Cash Management Accounts,
to secure the full and final repayment of all of the Obligations;




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(i)    Ship, reclaim, recover, store, finish, maintain,
repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein) the Personal Property Collateral. Borrower hereby grants to Lender a license or other right to use, without charge, Borrowers labels, patents,
copyrights, trade secrets, trade names, trademarks, service marks, and advertising matter, or any property of a similar nature, as it pertains to the Personal Property Collateral, in completing production of, advertising for sale, and selling any
Personal Property Collateral and Borrowers rights under all licenses and all franchise agreements shall inure to Lenders benefit;





(j)    Sell the Personal Property Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and
at such places (including Borrowers premises) as Lender determines is commercially reasonable. It is not necessary that the Personal Property Collateral be present at any such sale;





(k)    Lender shall give notice of the disposition of the Personal Property Collateral as follows:





(i)    Lender shall give Borrower a notice in writing of the time and place of public sale, or, if the sale is a private sale or
some other disposition other than a public sale is to be made of the Personal Property Collateral, then the time on or after which the private sale or other disposition is to be made; and





(ii)    The notice shall be personally delivered or mailed, postage prepaid, to Borrower as provided in Section 12, at least 10
days before the earliest time of disposition set forth in the notice; no notice needs to be given prior to the disposition of any portion of the Personal Property Collateral that is perishable or threatens to decline speedily in value or that is of
a type customarily sold on a recognized market;





(l)    Lender may credit bid and purchase at
any public sale; and





(m)    Lender may seek the appointment of a receiver or keeper to take
possession of all or any portion of the Collateral or to operate same and, to the maximum extent permitted by law, may seek the appointment of such a receiver without the requirement of prior notice or a hearing;





(n)    Lender shall have all other rights and remedies available at law or in equity or pursuant to any other Loan
Document; and





(o)    Any deficiency that exists after disposition of the Personal Property
Collateral as provided above will be paid immediately by Borrower. Any excess




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will be returned, without interest and subject to the rights of third Persons, by Lender to Borrower.





9.2Remedies Cumulative. The rights and remedies of Lender under
this Agreement, the other Loan Documents, and all other agreements shall be cumulative. Lender shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Lender of one right or
remedy shall be deemed an election, and no waiver by Lender of any Event of Default shall be deemed a continuing waiver. No delay by Lender shall constitute a waiver, election, or acquiescence by it.





10. TAXES AND EXPENSES.





If Borrower fails to pay any monies (whether taxes, assessments, insurance premiums, or, in the case of leased properties or assets, rents or other amounts payable under such leases) due to third Persons, or fails to make any
deposits or furnish any required proof of payment or deposit, all as required under the terms of this Agreement, then, Lender, in its sole discretion and without prior notice to Borrower, may do any or all of the following: (a) make payment of the
same or any part thereof, (b) set up such reserves in Borrowers Loan Account as Lender deems necessary to protect Lender from the exposure created by such failure, or (c) in the case of the failure to comply with Section 6.7 hereof,
obtain and maintain insurance policies of the type described in Section 6.8 and take any action with respect to such policies as Lender deems prudent. Any such amounts paid by Lender shall constitute Lender Expenses and any such payments
shall not constitute an agreement by Lender to make similar payments in the future or a waiver by Lender of any Event of Default under this Agreement. Lender need not inquire as to, or contest the validity of, any such expense, tax, or Lien and the
receipt of the usual official notice for the payment thereof shall be conclusive evidence that the same was validly due and owing.





11. WAIVERS; INDEMNIFICATION.





11.1    Demand; Protest.
Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and
guarantees at any time held by Lender on which Borrower may in any way be liable.




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11.2    Lenders Liability for Collateral.
Borrower hereby agrees that: (a) so long as Lender complies with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto
occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or
destruction of the Collateral shall be borne by Borrower.





11.3    Indemnification. Borrower shall pay, indemnify, defend, and hold the Lender-Related Persons and each of their respective officers, directors, employees, agents, and attorneys-in-fact (each,
an Indemnified Person) harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, and damages, and all reasonable attorneys fees and disbursements
and other costs and expenses actually incurred in connection therewith (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a
result of or related to the execution, delivery, enforcement, performance, or administration of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby, and (b) with respect to any investigation,
litigation, or proceeding related to this Agreement, any other Loan Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or
circumstance in any manner related thereto (all the foregoing, collectively, the Indemnified Liabilities). The foregoing to the contrary notwithstanding, Borrower shall have no obligation to any Indemnified Person under this
Section 11.3 with respect to any Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person. This provision shall survive the
termination of this Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrower was required to indemnify the Indemnified
Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Borrower with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH
RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON.





|12. |  | NOTICES.
|--- |  | --------




Unless otherwise provided in this Agreement, all notices or demands by Borrower or Lender to the other relating to this Agreement or any other Loan Document shall be in writing and (except for financial statements and other
informational documents




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which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by
registered or certified mail (postage prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as Borrower or Lender, as applicable, may designate to each other in accordance herewith), or telefacsimile to
Borrower or Lender, as the case may be, at its address set forth below:





If to Borrower:

RMH TELESERVICES, INC.15 Campus Blvd.Newtown Square, Pennsylvania 19073Attn: James PerryFax No. (610) 492-0042with copies to:

WOLF,BLOCK, SCHORR AND SOLIS-COHENLLP1650 Arch StreetPhiladelphia, Pennsylvania 19103-2097Attn: Bruce R. Lesser, Esq.Fax No. (215) 977-2334If to Lender:

FOOTHILL CAPITAL CORPORATIONOne Boston Place, 18th FloorBoston, Massachusetts 02108Attn: Business Finance Division ManagerFax No.: (617) 523-5839with copies to:

MORRISON & FOERSTER LLP1290 Avenue of the AmericasNew York, New York 10104Attn: Mark B. Joachim, Esq.Fax No. (212) 468-7900





Lender and Borrower may change the address at which
they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other party. All notices or demands sent in accordance with this Section 12, other than notices by Lender in connection with enforcement rights against
the Collateral under the provisions of the Code, shall be deemed received on the earlier of the date of actual receipt or three (3) Business Days after the deposit thereof in the mail. Borrower acknowledges and agrees that notices sent by Lender in
connection with the exercise of enforcement rights against Collateral under the provisions of the Code shall be deemed sent when deposited in the mail or personally delivered, or, where permitted by law, transmitted by telefacsimile or any other
method set forth above.




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13.  CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.





(a)     THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN
ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR
RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.





(b)    THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN
THE COUNTY OF NEW YORK, STATE OF NEW YORK, PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT LENDERS OPTION, IN THE COURTS OF ANY JURISDICTION WHERE LENDER ELECTS TO
BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER AND LENDER WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO
OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 13(b).





(c)    BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER AND LENDER REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.





14.  ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.





14.1 Assignments
and Participations.


.




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(a)    Lender may assign and delegate to one or more
assignees (each, an Assignee) all, or any ratable part of all, of the Obligations and the other rights and obligations of Lender hereunder and under the other Loan Documents; provided, however, that Borrower may
continue to deal solely and directly with Lender in connection with the interest so assigned to an Assignee until (i) written notice of such assignment, together with payment instructions, addresses, and related information with respect to the
Assignee, have been given to Borrower by Lender and the Assignee, and (ii) Lender and its Assignee have delivered to Borrower an appropriate assignment and acceptance agreement.





(b)    From and after the date that Lender provides Borrower with such written notice and executed assignment and acceptance agreement, (i) the
Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such assignment and acceptance agreement, shall have the assigned and delegated rights and obligations of
Lender under the Loan Documents, and (ii) Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned and delegated by it pursuant to such assignment and acceptance agreement, relinquish
its rights (except with respect to Section 11.3) and be released from its obligations under this Agreement (and in the case of an indemnification, assignment and acceptance covering all or the remaining portion of Lenders rights and
obligations under this Agreement and the other Loan Documents, Lender shall cease to be a party hereto and thereto), and such assignment shall effect a novation between Borrower and the Assignee.





(c)    Immediately upon Borrowers receipt of such fully executed assignment and acceptance agreement, this Agreement shall be deemed to be
amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the rights and duties of Lender arising therefrom.





(d)    Lender may at any time sell to one or more commercial banks, financial institutions, or other Persons not Affiliates of such Lender (a
Participant) participating interests in the Obligations and the other rights and interests of Lender hereunder and under the other Loan Documents; provided, however, that (i) Lender shall remain the
Lender for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating interest in the Obligations and the other rights and interests of Lender shall not constitute a Lender
hereunder or under the other Loan Documents and Lenders obligations under this Agreement shall remain unchanged, (ii) Lender shall remain solely responsible for the performance of such obligations, (iii) Borrower and Lender shall continue to
deal solely and directly with each other in connection with Lenders rights and obligations under this Agreement and the other Loan Documents, (iv) Lender shall not transfer or grant any participating interest under which the Participant has
the right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document
would




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(A) extend the final maturity date of the Obligations hereunder in which such Participant is
participating, (B) reduce the interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release all or a material portion of the Collateral or guaranties (except to the extent expressly provided herein or
in any of the Loan Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such Participant through Lender, or (E) change the
amount or due dates of scheduled principal repayments or prepayments or premiums, and (v) all amounts payable by Borrower hereunder shall be determined as if Lender had not sold such participation, except that, if amounts outstanding under this
Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set-off in respect of its participating interest in
amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as Lender under this Agreement. The rights of any Participant only shall be derivative through Lender and no Participant
shall have any rights under this Agreement or the other Loan Documents or any direct rights as to Borrower, the Collections, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate directly in
the making of decisions by Lender.





(e)  In connection with any such assignment or participation or
proposed assignment or participation, a Lender may disclose all documents and information which it now or hereafter may have relating to Borrower or Borrowers business, provided that the prospective assignee or participant has agreed in
writing to comply with the provisions of Section 16.10.





(f)  Any other provision in this
Agreement notwithstanding, Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal
Reserve Bank or U.S. Treasury Regulation 31 CFR §203.14, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law.





14.2  Successors.    This Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the
parties; provided, however, that Borrower may not assign this Agreement or any rights or duties hereunder without Lenders prior written consent and any prohibited assignment shall be absolutely void ab initio. No consent
to assignment by Lender shall release Borrower from its Obligations. Lender may assign this Agreement and the other Loan Documents and its rights and duties hereunder and thereunder pursuant to Section 14.1 hereof and, except as expressly
required pursuant to Section 14.1 hereof, no consent or approval by Borrower is required in connection with any such assignment.




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15.  AMENDMENTS; WAIVERS.





15.1  Amendments and Waivers.    No amendment or waiver of any provision of this Agreement or any other Loan Document, and no
consent with respect to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by Lender and Borrower and then any such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.





15.2  No Waivers; Cumulative
Remedies.    No failure by Lender to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Lender in exercising the same, will operate as a waiver thereof. No waiver by Lender
will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by Lender on any occasion shall affect or diminish Lenders rights thereafter to require strict performance by Borrower of any provision of
this Agreement. Lenders rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Lender may have.





16.  GENERAL PROVISIONS.





16.1  Effectiveness.    This Agreement shall be binding and deemed effective when executed by Borrower and Lender.





16.2  Section Headings.    Headings and numbers have been set forth herein for convenience only. Unless the contrary is
compelled by the context, everything contained in each Section applies equally to this entire Agreement.





16.3  Interpretation.    Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against Lender or Borrower, whether under any rule of construction or otherwise.
On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto.





16.4  Severability of Provisions.    Each provision of this Agreement shall be
severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.





16.5  Withholding Taxes.    All payments made by Borrower hereunder or under any note will be made without setoff, counterclaim, or other defense, except as required by applicable
law other than for Taxes (as defined below). All such payments will be made free and clear of, and without deduction or withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now
or hereafter imposed by any jurisdiction (other than the United States) or by any political subdivision or taxing authority thereof or therein (other than of the United States) with respect to such




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payments (but excluding, any tax imposed by any jurisdiction or by any political subdivision or taxing
authority thereof or therein (i) measured by or based on the net income or net profits of Lender, or (ii) to the extent that such tax results from a change in the circumstances of Lender, including a change in the residence, place of organization,
or principal place of business of Lender, or a change in the branch or lending office of Lender participating in the transactions set forth herein) and all interest, penalties or similar liabilities with respect thereto (all such non-excluded taxes,
levies, imposts, duties, fees, assessments or other charges being referred to collectively as Taxes). If any Taxes are so levied or imposed, Borrower agrees to pay the full amount of such Taxes, and such additional amounts as may
be necessary so that every payment of all amounts due under this Agreement or under any note, including any amount paid pursuant to this Section 16.5 after withholding or deduction for or on account of any Taxes, will not be less than the
amount provided for herein; provided, however, that Borrower shall not be required to increase any such amounts payable to Lender if the increase in such amount payable results from Lenders own willful misconduct or gross
negligence. Borrower will furnish to Lender as promptly as possible after the date the payment of any Taxes is due pursuant to applicable law certified copies of tax receipts evidencing such payment by Borrower.





16.6    Amendments in Writing.    This Agreement only can be amended by a writing
signed by Lender and Borrower.





16.7    Counterparts; Telefacsimile
Execution.    This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of
which, when taken together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any
party delivering an executed counterpart of this Agreement by telefacsimile also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity,
enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis.





16.8    Revival and Reinstatement of Obligations.    If the incurrence or payment of the Obligations by Borrower or Guarantor or the transfer to Lender of any property
should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable
or recoverable payments of money or transfers of property (collectively, a Voidable Transfer), and if Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable
advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that Lender is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of Lender related thereto, the liability of
Borrower or Guarantor




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automatically shall be revived, reinstated, and restored and shall exist as though such Voidable
Transfer had never been made.





16.9    Integration.    This
Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the
date hereof.





16.10    Confidentiality.    Lender agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to Lenders directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement and their directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to Section 14.1(e), to any participant or prospective participant of Lender or to any assignee of, or any prospective assignee of, any
of its rights or obligations under this Agreement, (g) with the consent of Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to Lender on a
nonconfidential basis from a source other than Borrower. For the purposes of this Section, Information means all information received from Borrower or any of its Subsidiaries relating to Borrower or any of its Subsidiaries or
their respective businesses, other than any such information that is available to the Lender on a nonconfidential basis prior to disclosure by Borrower.





[Signature page to follow.]







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IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed and delivered as of the date
first above written.





RMH TELESERVICES, INC. a Pennsylvania corporationBy:

/s/    J. Scot BrunkeTitle:

Executive Vice President





FOOTHILL CAPITAL CORPORATION, a California corporationBy:

/s/    Garrick E. TanTitle:

Vice President





SIGNATURE PAGE FOR LOAN AND SECURITY AGREEMENT




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SCHEDULE D-1


DESIGNATED ACCOUNT





Account number 861-142-2858 of Borrower maintained with
Borrowers Designated Account Bank, or such other deposit account of Borrower (located within the United States) that has been designated as such, in writing, by Borrower to Lender.





Designated Account Bank means PNC Bank, National Association, whose office is located at 1600 Market Street, Philadelphia, PA 19103, and whose ABA number
is 031000053.




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SCHEDULE L-1


LENDERS ACCOUNT





An account at a bank designated by
Lender from time to time as the account into which Borrower shall make all payments to Lender under this Agreement and the other Loan Documents; unless and until Lender notifies Borrower to the contrary, Lenders Account shall be that certain
deposit account bearing account number 323-266193 and maintained by Lender with JPMorgan Chase Bank, 4 New York Plaza, 15th Floor, New York, New York 10004, ABA #021000021.