Document:

EXHIBIT 10.1

DE LAGE LANDEN FINANCIAL SERVICES, INC. 

LOAN AND SECURITY AGREEMENT

(Revolving Credit Loan and Floorplan Loan) 

EMTEC INC. (Delaware Corporation) 

EMTEC INC. (New Jersey Corporation) 

EMTEC VIASUB LLC (Delaware Limited Liability
Company) 

WESTWOOD COMPUTER CORPORATION (New Jersey Corporation) 

Borrower 

_________________________________________ 

  11 Diamond Road 

  Springfield, NJ 07081

Address 

_________________________________________

  87-0273300 (Emtec Delaware)

  22-3386933 (Emtec NJ) 

  68-0614277 (Emtec Viasub) 

  22-1913563 (Westwood) 

Borrower Fed ID Tax No. 

_________________________________________

  $32,000,000

Amount of Credit Facility 

_________________________________________

  December 7, 2006

  

  Date

TABLE OF CONTENTS 

	
      1.                
      
	
DEFINITIONS 
		 
		
1 
	
	

	  
	
1.1 
		
Defined Terms 
		 
		
1 
	
	

	  
	
1.2           
		
Other Terms 
		 
		
7 
	
	

	   

	
      2. 
      
	
LOANS; INTEREST RATE AND OTHER CHARGES 
		 
		
8 
	
	

	  
	
2.1 
		
Total Facility 
		 
		
8 
	
	

	  
	
2.2 
		
Loans 
		 
		
8 
	
	

	  
	
2.3 
		
Reconciliation Payments 
		 
		
8 
	
	

	  
	
2.4 
		
Floorplan Credit Line 
		 
		
8 
	
	

	  
	
2.5 
		
Loan Account 
		 
		
9 
	
	

	  
	
2.6 
		
Interest; Fees 
		 
		
9 
	
	

	  
	
2.7 
		
Default Interest Rate 
		 
		
9 
	
	

	  
	
2.8 
		
Examination Fees 
		 
		
9 
	
	

	  
	
2.9 
		
Excess Interest 
		 
		
9 
	
	

	  
	
2.10 
		
Principal Payments; Proceeds of Collateral 
		 
		
10 
	
	

	  
	
2.11 
		
Application of Collateral 
		 
		
12 
	
	

	   

	
      3. 
      
	
COLLATERAL 
		 
		
12 
	
	

	  
	
3.1 
		
Security Interest in the Collateral 
		 
		
12 
	
	

	  
	
3.2 
		
Perfection and Protection of Security Interest 
		 
		
12 
	
	

	  
	
3.3 
		
Preservation of Collateral 
		 
		
13 
	
	

	  
	
3.4 
		
Insurance 
		 
		
13 
	
	

	  
	
3.5 
		
Collateral Reporting 
		 
		
13 
	
	

	  
	
3.6 
		
Receivables 
		 
		
14 
	
	

	  
	
3.7 
		
Equipment 
		 
		
15 
	
	

	  
	
3.8 
		
Other Liens; No Disposition of Collateral 
		 
		
15 
	
	

	  
	
3.9 
		
Collateral Security 
		 
		
15 
	
	

	   

	
      4. 
      
	
CONDITIONS OF CLOSING 
		 
		
15 
	
	

	  
	
4.1 
		
Initial Advance 
		 
		
15 
	
	

	  
	
4.2 
		
Subsequent Advances 
		 
		
17 
	
	

	   

	
      5. 
      
	
REPRESENTATIONS AND WARRANTIES 
		 
		
17 
	
	

	  
	
5.1 
		
Due Organization 
		 
		
17 
	
	

	  
	
5.2 
		
Other Names 
		 
		
17 
	
	

	  
	
5.3 
		
Due Authorization 
		 
		
18 
	
	

	  
	
5.4 
		
Binding Obligation 
		 
		
18 
	
	

	  
	
5.5 
		
Intangible Property 
		 
		
18 
	
	

	  
	
5.6 
		
Capital 
		 
		
18 
	
	

	  
	
5.7 
		
Material Litigation 
		 
		
18 
	
	

	  
	
5.8 
		
Title; Security Interests of DLL 
		 
		
18 
	
	

	  
	
5.9 
		
Restrictive Agreements; Labor Contracts 
		 
		
18 
	
	

	  
	
5.10 
		
Laws 
		 
		
18 
	
	

	  
	
5.11 
		
Consents 
		 
		
18 
	
	

	  
	
5.12 
		
Defaults 
		 
		
18 
	
	

	  
	
5.13 
		
Financial Condition 
		 
		
19 
	
	

	  
	
5.14 
		
ERISA 
		 
		
19 
	
	

	  
	
5.15 
		
Taxes 
		 
		
19 
	
	

	  
	
5.16 
		
Locations; Federal Tax ID No 
		 
		
19 
	
	

	  
	
5.17 
		
Business Relationships 
		 
		
19 
	
	

	  
	
5.18 
		
Margin Stock 
		 
		
19 
	
	

	  
	
5.19 
		
Reaffirmations 
		 
		
20 
	
	

	   

	
      6. 
      
	
COVENANTS 
		 
		
20 
	

	

	  
	
6.1                
		
Affirmative Covenants 
		 
		
20 
	
	

	  
	
6.2 
		
Negative Covenants 
		 
		
21 
	
	

	   

	
      7.                
      
	
DEFAULT AND REMEDIES 
		 
		
23 
	
	

	  
	
7.1 
		
Events of Default 
		 
		
23 
	
	

	  
	
7.2 
		
Remedies 
		 
		
24 
	
	

	  
	
7.3 
		
Standards for Determining Commercial Reasonableness 
		 
		
25 
	
	

	   

	
      8. 
      
	
EXPENSES AND INDEMNITIES 
		 
		
25 
	
	

	  
	
8.1 
		
Expenses 
		 
		
25 
	
	

	  
	
8.2 
		
Environmental Matters 
		 
		
26 
	
	

	   

	
      9. 
      
	
MISCELLANEOUS 
		 
		
27 
	
	

	  
	
9.1 
		
Examination of Records; Financial Reporting 
		 
		
27 
	
	

	  
	
9.2 
		
Term; Termination 
		 
		
28 
	
	

	  
	
9.3 
		
Certain Waivers 
		 
		
28 
	
	

	  
	
9.4 
		
No Waiver by DLL 
		 
		
28 
	
	

	  
	
9.5 
		
Binding on Successor and Assigns 
		 
		
28 
	
	

	  
	
9.6 
		
Severability 
		 
		
28 
	
	

	  
	
9.7 
		
Amendments; Assignments 
		 
		
28 
	
	

	  
	
9.8 
		
Integration 
		 
		
29 
	
	

	  
	
9.9 
		
Survival 
		 
		
29 
	
	

	  
	
9.10 
		
Evidence of Obligations 
		 
		
29 
	
	

	  
	
9.11 
		
Loan Requests 
		 
		
29 
	
	

	  
	
9.12 
		
Notices 
		 
		
29 
	
	

	  
	
9.13 
		
Brokerage Fees 
		 
		
29 
	
	

	  
	
9.14 
		
Disclosure 
		 
		
29 
	
	

	  
	
9.15 
		
Publicity 
		 
		
29 
	
	

	  
	
9.16 
		
Captions 
		 
		
30 
	
	

	  
	
9.17 
		
Injunctive Relief 
		 
		
30 
	
	

	  
	
9.18 
		
Counterparts; Facsimile Execution 
		 
		
30 
	
	

	  
	
9.19 
		
Construction 
		 
		
30 
	
	

	  
	
9.20 
		
Time of Essence 
		 
		
30 
	
	

	  
	
9.21 
		
[RESERVED] 
		 
		
30 
	
	

	  
	
9.22 
		
Liability 
		 
		
30 
	
	

	  
	
9.23 
		
[RESERVED] 
		 
		
30 
	
	

	  
	
9.24 
		
Withholding and Other Tax Liabilities 
		 
		
30 
	
	

	  
	
9.25 
		
Power of Attorney 
		 
		
31 
	
	

	  
	
9.26 
		
GOVERNING LAW; WAIVERS 
		 
		
31 
	
	

	  
	
9.27 
		
MUTUAL WAIVER OF RIGHT TO JURY TRIAL 
		 
		
31 
	
	

	  
	
9.28 
		
Lien Termination 
		 
		
31 
	
	

	  
	
9.29 
		
Multiple Borrowers, Joint and Several Liability 
		 
		
31 
	
	

	  
	
9.30 
		
Right of Offset 
		 
		
33 
	

-ii-

THIS LOAN AND SECURITY AGREEMENT (collectively with the Schedule to Loan and Security Agreement (the “Schedule”) attached hereto, the “Agreement”) dated the date set forth on the cover page, is entered into by and between EMTEC INC. (a Delaware corporation), EMTEC INC. (a New Jersey corporation), EMTEC VIASUB LLC (a Delaware limited liability company), and WESTWOOD COMPUTER
CORPORATION (a New Jersey corporation) (jointly and severally, if more than one, the “Borrower”), whose address is set
forth on the cover page and DE LAGE LANDEN FINANCIAL SERVICES, INC. (“DLL”), whose
address is 1111 Old Eagle School Road, Wayne, PA 19087. 

1. DEFINITIONS. 

1.1 Defined Terms.  In addition to terms defined elsewhere in this Agreement, the following terms have the definitions set forth below. Without
limiting the generality of the foregoing any capitalized terms used in this Agreement that are not defined in this Section 1.1 but which are defined in the Schedule shall have the respective meanings given thereto in the Schedule: 

“Account Debtor” means any Person who is obligated to make payments or otherwise satisfy obligations owing on any Receivable to the owner of
such Receivable, including without limitation each Person who is an “account debtor” as defined in Section 9-102 of the Code with respect to any Receivable of Borrower. 

“Affiliate” means any Person controlling, controlled by or under common control with Borrower or any of its Subsidiaries. For purposes of
this definition, “control” means the possession, directly or indirectly, of the power to direct or cause direction of the management and policies of any Person, whether through ownership of common or preferred stock or other equity
interests, by contract or otherwise.  Without limiting the generality of the foregoing, with respect to Borrower or any of its Subsidiaries each of the following shall be an Affiliate: any officer, director, employee or other agent of Borrower or
such Subsidiary, any shareholder or subsidiary of Borrower or such Subsidiary, and any other Person with whom or which Borrower or such Subsidiary has common shareholders, officers or directors. 

“Applicable Usury Law” has the meaning set forth in Section 2.9. 

“Blocked Account” has the meaning set forth in Section 2.10(c) . 

“Borrowing Base Certificate” has the meaning set forth in the Schedule. 

“Business Day” means any day on which commercial banks in both Philadelphia, PA and New York, NY are open for business. 

“Capital Expenditures” means all expenditures made and liabilities incurred for the acquisition of any fixed asset or improvement,
replacement, substitution or addition thereto which has a useful life of more than one year and including, without limitation, those arising in connection with Capital Leases. 

“Capital Lease” means any lease of property by Borrower or any Subsidiary of Borrower that, in accordance with GAAP, should be capitalized for financial reporting purposes and reflected as a liability on the
balance sheet of Borrower and its Consolidated Subsidiaries. 

“Chattel Paper” has the meaning set forth in Section 9-102 of the Code, and includes all “electronic chattel paper” and “tangible chattel paper” as defined in Section 9-102 of the Code.

“Closing Date” has the meaning set forth in Section 4.1. 

“Code” means the Uniform Commercial Code as adopted and in effect in the Commonwealth of Pennsylvania from time to time.

“Collateral” has the meaning set forth in Section 3.1. 

“Commercial Tort Claim” has the meaning set forth in Section 9-102 of the Code. 

“Consolidated Subsidiary” means at any date any Subsidiary or other Person the accounts of which would be consolidated with those of
Borrower (or any other Person, as the context may require hereunder) in its consolidated financial statements if such statements were prepared as of such date in accordance with GAAP. 

“Deposit Accounts” has the meaning set forth in Section 9-102 of the Code.

“DLL Affiliate” has the meaning set forth in Section 9.22. 

“Document” has the meaning set forth in Section 9-102 of the Code. 

“Dominion Account” has the meaning set forth in Section 2.10(c) . 

“Due Date” has the meaning set forth in Section 2.10.

“Eligible Inventory” has the meaning set forth in the Schedule. 

“Eligible Receivables” has the meaning set forth in the Schedule. 

“Environmental Costs” has the meaning set forth in Section 8.2.2(c) . 

“Equipment” means all present and hereafter acquired machinery, molds, machine tools, motors, furniture, equipment, furnishings, trade
fixtures, motor vehicles, tools, parts, dyes, jigs, goods and other tangible personal property (other than Inventory) of every kind and description used in the applicable Person’s operations or owned by such applicable Person, specifically
including without limitation all “equipment” as defined in Section 9-102 of the Code, and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions or improvements to any of
the foregoing, wherever located. 

“ERISA” means the Employment Retirement Income Security Act of 1974, as amended, and the regulations thereunder. 

“ERISA Affiliate” means each trade or business (whether or not incorporated and whether or not foreign) which is or may hereafter become a
member of a group of which Borrower or any of its Subsidiaries is a member and which is treated as a single employer under ERISA Section 4001(b)(1), or IRC Section 414.

“Event of Default” means any of the events set forth in Section 7.1.

“Examination Fee” has the meaning set forth in the Schedule. 

“Excess Availability” has the meaning set forth in the Schedule. 

“Excess Revolver Availability” has the meaning set forth in the Schedule. 

“Existing Affiliated Subordinated Debt” shall mean all of the Indebtedness and other obligations and liabilities arising under (i) that
certain Subordinated Note in the original principal amount of $750,000 dated April 16, 2004 issued by Emtec Viasub LLC (as successor by merger to Darr Westwood Acquisition Corporation) in favor of Four Kings Management LLC, (ii) that
certain Subordinated Note in the original
    principal amount of $750,000 dated April 16, 2004 issued by Emtec Viasub LLC (as successor by merger to Darr Westwood Acquisition Corporation) in favor of Darr Westwood LLC and (iii)
that certain 8% Promissory Note in the original principal amount of $1,102,794
dated August 5, 2005 issued by Emtec Viasub LLC (as successor by merger to Darr
Westwood Technology Corporation) in favor of Darr Westwood LLC. 

“Facility Overloan” has the meaning set forth in Section 2.3. 

“Floorplan Borrowing Base Amount” has the meaning set forth in the Schedule. 

“Floorplan Collateral Coverage Reconciliation” has the meaning set forth in Section 2.3. 

“Floorplan Credit Line” has the meaning set forth in Section 2.4. 

“Floorplan Loans” has the meaning set forth in the Schedule. 

“Floorplanned Inventory” means all Inventory of Borrower from those Vendors and subject to a repurchase agreement from the applicable Vendor
financed by DLL pursuant to Section 2.4, so long as each such Vendor and repurchase agreement is acceptable to DLL in its sole discretion. 

“Floorplan Overloan” has the meaning set forth in Section 2.3.

“GAAP” means
generally accepted accounting principles in the United States of America as in
effect from time to time as set forth in the  opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public
Accountants and the statements and pronouncements of the Financial Accounting
Standards Boards which are applicable to the circumstances as  of the date of
determination consistently applied; provided, however, that if, after the occurrence
of any change in GAAP or the rules promulgated with respect thereto occurring
after the Closing Date, either Borrower or DLL shall object to  determining Borrower’s
compliance with this Agreement (specifically including without limitation the
financial covenants set forth herein) utilizing the “as in effect from time
to time” standard for determining GAAP and such objecting
party shall provide written notice to the other of such objection (including,
in the case of DLL, any such notice provided in connection with the delivery
of any financial statements or other reports or certificates required hereunder),
then from  and after the time of such objection (including in connection with
any financial statements or other reports or certificates delivered in connection
therewith), GAAP shall be deemed to mean such generally accepted accounting principles
as in effect immediately prior to and without giving effect to any such change.
If Borrower shall deliver any financial statements or other reports or certificates
required hereunder following any such change in GAAP as described in the foregoing
sentence giving effect to and without objecting to such change, DLL shall have
thirty (30) days to object to giving effect to such change and upon any such
objection, Borrower shall revise and resubmit such financial statements or other 

  - 2 -

reports or certificates in accordance with the provisions
of the foregoing sentence as though DLL had objected to such change in GAAP prior
to the delivery of such financial statements or other reports or certificates.
Either Borrower or DLL may deliver such an objection to any such change in GAAP
in its sole discretion. Upon DLL’s request, Borrower hereby agrees to enter into negotiations in order to amend the financial covenants and other terms of this Agreement if there occurs any change in GAAP or the rules promulgated with respect thereto that
have, or may reasonably be expected to have, a material effect on the financial statements of the Borrower so as to equitably reflect such changes with the desired result that the criteria for evaluating the financial condition of Borrower and such
other terms shall be the same in all respects after such changes as if such changes has not been made. All amounts used for purposes of financial calculations required to be made herein shall be without duplication. 

“General Intangibles” means
all general intangibles of any applicable Person, whether now owned or hereafter
created or acquired, including,  without limitation, all choses in action, causes
of action, corporate or other business records, inventions, designs, drawings,
blueprints, patents, patent applications, trademarks and the goodwill of the
business symbolized thereby, names, trade  names, trade secrets, goodwill, copyrights,
registrations, licenses, franchises, customer lists, security and other deposits,
rights in all litigation presently or hereafter pending for any cause or claim
(whether in contract, tort (other than  Commercial Tort Claims) or otherwise),
and all judgments now or hereafter arising therefrom, in the case of Borrower,
all claims of Borrower against DLL (other than Commercial Tort Claims), rights
to purchase or sell real or personal property,  rights as a licensor or licensee
of any kind other than rights that constitute Receivables, telephone numbers,
proprietary information, purchase orders, and all insurance policies and claims
(including without limitation credit, liability, property  and other insurance),
tax refunds and claims, computer programs, discs, tapes and tape files, claims
under guaranties, security interests or other security held by or granted to
such Person to secure payment of any of the Receivables by an Account Debtor,
all rights to indemnification and all other intangible property of every kind
and nature (other than Receivables), specifically including without limitation
all “general intangibles” as defined in Section 9-102 of the Code (including
all “payment intangibles” and “software” as
defined in Section 9-102 of the Code). 

“Goods” has the meaning set forth in Section 9-102 of the Code and includes all “fixtures” as defined in Section 9-102 of the
Code. 

“Guarantor” means each Person, if any, from time to time liable for the payment and performance of the Obligations as a guarantor and surety
pursuant to a written Guaranty executed by such Person in favor of DLL. 

“Guaranty” means each Guaranty and Suretyship Agreement, if any, issued by any Guarantor from time to time in favor of DLL, as any such
Guaranty and Suretyship Agreement may from time to time be amended, modified, restated or replaced. 

“Hazardous Substances” has the meaning set forth in Section 8.2.1(b) . 

“Indebtedness” means with respect to any Person, without duplication, (i) all indebtedness of such Person for borrowed money; (ii) all obligations of such Person for the deferred purchase price of property or
services (other than trade payables not overdue more than sixty (60) days or being contested in good faith); (iii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments or upon which interest payments are
customarily made; (iv) all reimbursement, payment or other obligations and liabilities of such Person created or arising under any conditional sale or other title retention agreement with respect to property used and/or acquired by such Person or
created or arising in connection with any letter of credit, acceptance, banker’s acceptance or similar facility or obligation; (v) all capital lease obligations of such Person; (vi) all obligations referred to in (i)-(vii) of this definition of
another Person secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) a lien upon property owned by such Person, regardless of whether such Person has assumed or become liable for
the payment of such indebtedness. 

 

  - 3 -

“Instrument” has
    the meaning set forth in Section 9-102 of the Code and includes all “promissory
notes” as defined in Section 9-102 of the Code. 

 “Inventory” means
    all of any Person’s now owned and hereafter acquired goods, merchandise
    or other personal property, wherever located,
    to be furnished under any contract of service or held for sale or lease,
    all raw materials, work in process, finished goods and materials and supplies
    of any kind, nature or description which are or might be used or consumed
    in such Person’s business or used in connection with the manufacture, packing, shipping, advertising, selling or finishing of such goods, merchandise or other personal property, specifically including without
  limitation all “inventory” as defined in Section 9-102 of the Code, and all Documents or other documents representing them.  Unless expressly indicated otherwise, all references herein to “Inventory” shall
  be references to the Inventory of Borrower (and not to the Inventory of any
  Subsidiary of Borrower that is not a Borrower entity). 

“Investment Property” means all of any Person’s right, title and interest in and to investment property of every kind, nature or
description, wherever located, whether now owned or hereafter acquired by such Person, specifically including without limitation all “investment property” as defined in Section 9-102 of the Code (including all of such Person’s
“securities” (whether certificated or uncertificated) and  “security entitlements” as defined in Section 8-102 of the Code, “securities accounts” as defined in Section 8-501 of the Code,  and “commodity
contracts” and “commodity accounts” as defined in Section 9-102 of the Code), and all present and future rights of exchange, subscription or substitution incident to or arising from any of the foregoing, and all present and future
rights and interest in and to dividends or distributions of any kind, profits, losses, or capital accounts incident to or arising from any of the foregoing. 

“IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 

“Letter-of-Credit Right” has the meaning set forth in Section 9-102 of the Code. 

“Loan” or Loans” has the meaning set forth in Section 2.2.

“Loan Documents” means, collectively, this Agreement (including the Schedule), any note or notes executed by Borrower and payable to DLL,
including the Secured Revolving Credit Note and the Secured Floorplan Note, each Guaranty (if any), each subordination agreement executed by any Subordinated Creditor with respect to any Subordinated Debt, any and all mortgages, pledge agreements or
other security agreements or documents executed by Borrower, any Subsidiary of Borrower, any Guarantor or any other person with respect to the Collateral or any other collateral pledged to or subject to a lien in favor DLL to secure the Obligations, any and all agreements relating to any Blocked Account or Dominion Account, and any other agreement entered into in connection with this Agreement, together with
all alterations, amendments, changes, extensions, modifications, refinancings, refundings, renewals, replacements, restatements, or supplements, of or to any of the foregoing. 

“Loan Party” means Borrower and each other party (other than DLL, but including each Guarantor and Subordinating Creditor, if any) to any of
the Loan Documents. 

“Loan Reserves” means, as of any date of determination, such amounts as DLL may from time to time establish and revise in the exercise of
its reasonable business judgment reducing the amount of Revolving Credit Loans which would otherwise be available to Borrower under the lending formula(s) provided in the Schedule: (a) to reflect events, conditions, contingencies or risks which, as
reasonably determined by DLL, do or may affect either (i) the Collateral or any other property which is security for the Obligations or its value, (ii) the assets, business or prospects of Borrower or any Subsidiary of Borrower or any Guarantor or
(iii) the security interests and other rights of DLL in the Collateral (including the enforceability, perfection and priority thereof), including without limitation reserves with respect to any rent or other obligations owing or to become owing to
any landlord, warehouseman or bailee on whose property any of the Collateral is stored or (b) to reflect DLL's reasonable belief that any collateral report or financial information furnished by or on behalf of Borrower or any Subsidiary of Borrower
or any Guarantor to DLL is or may have been incomplete, inaccurate or misleading in any material respect or (c) in respect of any state of facts which DLL reasonably determines constitutes an Event of Default or may, with notice or passage of time
or both, constitute an Event of Default or (c) to reflect DLL’s decision, in its Permitted Discretion, to consent to the establishment of a reserve against the Revolving Credit Borrowing Base Amount in the amount of any Floorplan Collateral
Coverage Reconciliation rather than requiring the immediate repayment of such Floorplan Collateral Coverage Reconciliation as provided for in Section 2.3 of this Agreement. 

 

  - 4 -

“Lockbox” has
the meaning set forth in Section 2.10(c) . 

 “Material
      Adverse Effect” means with respect
      to any event, act, condition or occurrence of whatever nature (including
      any adverse determination in any litigation, arbitration, or governmental
      investigation or proceeding), whether singly or in conjunction with any
      other event or events, act or acts, condition or conditions, occurrence
      or occurrences, whether or not related, which results or could reasonably be expected to result in a material adverse change in, or a material adverse effect upon, any of (i) the condition (financial or otherwise), operations,
  business, properties or prospects of all Borrower entities taken as a whole, (ii) the rights and remedies DLL under any Loan Document, or the ability of either of Emtec, Inc. (the New Jersey corporation) or Westwood Computer Corporation individually
  or of all Borrower entities taken as a whole to perform any of its material obligations under any Loan Document, (iii) the legality, validity or enforceability of any Loan Document, (iv) the existence, perfection or priority of any security interest
  granted in any Loan Document, or (v) a material amount of the value of any material Collateral. 

“Maximum Floorplan Amount” has the meaning set forth in the Schedule. 

“Maximum Interest Rate” has the meaning set forth in Section 2.9. 

“MRA Intercreditor Agreement” means the Subordination Agreement dated as of the Closing Date between DLL and MRA Systems, Inc. (d/b/a GE Access) regarding the respective rights and security interests of each of
them in the property and assets of Borrower. 

“Multiemployer Plan” means a “multiemployer plan” as defined in ERISA Sections 3(37) or 4001(a) (3) or IRC Section 414(f) which
covers employees of Borrower, any Subsidiary of Borrower or any ERISA Affiliate. 

“Obligations” means all present and future loans, advances, debts, liabilities, obligations, covenants, duties and indebtedness at any time
owing by Borrower to DLL, whether evidenced by this Agreement, any note or other instrument or document or otherwise, whether arising from an extension of credit, opening of a letter of credit, banker's acceptance, loan, guaranty, indemnification or
otherwise, whether direct or indirect (including, without limitation, those acquired by assignment and any participation by DLL in Borrower's debts owing to others), absolute or contingent, due or to become due, including, without limitation, all
interest (specifically including any interest accruing after the filing of any petition in bankruptcy or the commencement or any receivership or other insolvency proceeding regardless of whether a claim for such interest is allowable or allowed in
any such bankruptcy, receivership or other proceeding), charges, expenses, fees, attorney's fees, expert witness fees, examination fees, letter of credit fees, collateral monitoring fees, closing fees, facility fees, anniversary fees and any other sums chargeable to Borrower hereunder or under any other agreement with DLL. 

“Overloan” has the meaning set forth in Section 2.3. 

“PBGC” means the Pension Benefit Guarantee Corporation. 

“Permitted Discretion” means DLL's reasonably business judgment and discretion exercised in good faith based upon its consideration of any
factor which DLL reasonably believes in the exercise of its good faith business judgment: (i) will or could adversely affect the value of any Collateral, the enforceability or priority of DLL's liens thereon or the amount which DLL would be likely
to receive (after giving consideration to delays in payment and costs and expenses of enforcement including the satisfaction and/or payment of any other liens or encumbrances on the Collateral (including the claims for rent or other obligations of
any landlord, warehouseman or other bailee on whose property any of the Collateral is stored) in the liquidation of such Collateral; (ii) suggests that any collateral report or financial information delivered to DLL by any Person on behalf of
Borrower, any Subsidiary of Borrower or any Guarantor is incomplete, inaccurate or misleading in any material respect; (iii) materially increases the likelihood of a bankruptcy, reorganization or other insolvency proceeding involving Borrower, any
Subsidiary of Borrower, any other Loan Party (including any Guarantor) or any of the Collateral, or (iv) creates or reasonably could be expected to create an Event of Default.  In exercising such judgment, DLL may consider such factors already
included in or tested by the definition of Eligible Receivables or Eligible Inventory, as well as any of the following:  (a) the financial and business climate of Borrower's and its Subsidiary’s industry and general macroeconomic conditions,
(b) changes in collection history and dilution with respect to the Receivables, (c) changes in demand for, and pricing of, Inventory, (d) changes in any concentration of risk with respect to Receivables and/or Inventory, and (e) any other factors
that change the credit risk of lending to Borrower on the security of the Receivables and Inventory. The burden of establishing lack of good faith hereunder shall be on Borrower. 

 

- 5 - 

 “Permitted
      Encumbrance” means (i) liens
      granted to DLL by Borrower pursuant hereto; (ii) liens of warehousemen,
      mechanics, materialmen, workers, repairmen, fillers, packagers, processors,
      common carriers, landlords and other similar liens arising by operation
      of law or otherwise, not waived in connection herewith, for amounts that
      are not yet due and payable on any given day or which are being contested
by Borrower reasonably and in good faith through
proper proceedings (but only so long as appropriate reserves as shall be required
in conformity with GAAP have been established in respect of such contested obligations
    and the enforcement of such liens are effectively stayed pending the resolution
    of the applicable contest proceedings); (iii) liens for taxes, assessments
    or other governmental charges not yet due and payable on any given day or
    which are being contested by Borrower reasonably and in good faith through
    proper proceedings (but only so long as appropriate reserves as shall be
    required in conformity with GAAP have been established in respect of such
    contested obligations and the enforcement of such liens are effectively stayed
    pending the resolution of the applicable contest proceedings); (iv) deposits
    or pledges to secure obligations under workmen’s compensation, social
    security or similar laws, or under unemployment insurance; (v) deposits or
    pledges to secure bids, tenders, contracts (other than contracts for the
    payment of money), leases, regulatory or statutory obligations, surety and
    appeal bonds and other obligations of like nature arising in the ordinary
    course of business; (vi) liens to secure purchase money indebtedness, including
    Capital Leases, to the extent, if any, such purchase money indebtedness is
    permitted hereunder; provided that such lien(s), in each case
  under this clause (vi), may only attach to the specific asset(s) acquired by Borrower or any applicable Subsidiary with the proceeds of each particular item of permitted purchase money indebtedness and (vii) each of the other liens, mortgages and
other security interests, if any, set forth as Permitted Encumbrances in the Schedule, including any liens or security interest, if any, existing on the Closing Date and listed as Permitted Encumbrances in the Schedule. 

“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association,
corporation, limited liability company, government, or any agency or political division thereof, or any other entity. 

“Plan” means any plan described in ERISA Section 3(2) maintained for employees of Borrower or any Subsidiary of Borrower or any ERISA
Affiliate, other than a Multiemployer Plan. 

“Prepared Financials” means the initial audited balance sheets of Borrower and its Consolidated Subsidiaries as of the date(s) set forth in
the Schedule delivered to DLL on or prior to the Closing Date, and as of each subsequent date on which audited balance sheets are delivered to DLL from time to time hereunder, and the related statements of operations, changes in stockholder's equity and changes in cash flow for the periods ended on such dates. 

“Prohibited Transaction” means any transaction described in Section 406 of ERISA which is not exempt by reason of Section 408 of ERISA, and
any transaction described in Section 4975(c) of the IRC which is not exempt by reason of Section 4975(c)(2) of the IRC. 

“Property” has the meaning set forth in Section 8.2.1(c) . 

“Receivables” means all of any Person's now owned and hereafter acquired accounts and accounts receivable (whether or not earned by performance), proceeds of any letters of credit naming such Person as
beneficiary, contract rights, payment intangibles, chattel paper, instruments, documents and all other forms of obligations at any time owing to such Person, all guaranties and other security therefor, whether secured or unsecured, all merchandise
returned to or repossessed by such Person, and all rights of stoppage in transit and all other rights or remedies of an unpaid manufacturer or vendor, lienor or secured party, specifically including without limitation all “accounts” as
defined in Section 9-102 of the Code. Unless expressly indicated otherwise, all references herein to “Receivables” shall be references to the Receivables of Borrower (and not to the Inventory of any Subsidiary of Borrower that is not a
Borrower entity). 

“Reportable Event” means a reportable event described in Section 4043 of ERISA or the regulations thereunder, a withdrawal from a Plan
described in Section 4063 of ERISA, or a cessation of operations described in ERISA.

“Revolver Overloan” has the meaning set forth in Section 2.3. 

“Revolving Credit Loans” has the meaning set forth in the Schedule.

“Revolving Credit Borrowing Base Amount” has the meaning set forth in the Schedule. 

“RMA Credits” has the meaning set forth in the Schedule.

“Schedule” has the meaning set forth in the Preamble. 

 

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“Secured
      Floorplan Loan Note” means the
      Secured Floorplan Loan Note dated as of the date hereof issued by Borrower
      in favor of DLL to evidence the Floorplan Loans, as it may be amended,
modified, restated or replaced from time to time. 

 “Secured
      Revolving Credit Note” means
      the Secured Revolving Credit Note dated as of the date hereof issued by Borrower in favor of DLL to evidence the Revolving Credit Loans, as it may be amended, modified, restated or replaced from time to time. 

“Subordinating Creditor” means each Person, if any, from time to time to whom any Subordinated Debt is owing and who is a party to a
subordination agreement reasonably acceptable to DLL in its Permitted Discretion and, as of the Closing Date, specifically including Darr Westwood LLC and Four Kings Management LLC. 

“Subsidiary” means, with respect to any Person, (a) any corporation of which an aggregate of more than 50% of the outstanding capital stock
having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, capital stock of any other class or classes of such corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time, directly or indirectly, owned legally or beneficially by such Person or one or more Subsidiaries of such Person, or with respect to which any such Person has the right to vote or designate the vote
of more than 50% of such capital stock whether by proxy, agreement, operation of law or otherwise, and (b) any partnership or limited liability company in which such Person and/or one or more Subsidiaries of such Person shall have an interest
(whether in the form of voting or participation in profits or capital contribution) of more than 50% or of which any such Person is a general partner or may exercise the powers of a general partner. Unless the context otherwise requires, each
reference to a Subsidiary shall be a reference to a Subsidiary of a Borrower.

“Subordinated Debt” means indebtedness, obligations and liabilities of Borrower on terms and conditions reasonably acceptable to DLL in its
Permitted Discretion incurred with the prior written consent of DLL the repayment of which is subordinated to the payment and performance of the Obligations, pursuant to a subordination agreement reasonably acceptable to DLL in its Permitted
Discretion between the applicable Subordinating Creditor, Borrower and DLL.

“Supporting Obligation” has the meaning set forth in Section 9-102 of the Code. 

“Term” has the meaning set forth in Section 9.2(a) . 

“Total Facility” has the meaning set forth in Section 2.1. 

“Trademarks, Copyrights, Licenses and Patents” means all of any Person’s right, title and interest in and to, whether now owned or hereafter acquired:
    (i) trademarks, trademark registrations, trade names, trade name registrations,
    Internet domain names, Internet domain name registrations, and trademark,
    trade name or Internet domain name applications, including without limitation
    those listed on the Schedule, as the same may be amended from time to time,
    and (a) renewals thereof, (b) all income, royalties, damages and payments
    now and hereafter due and/or payable with respect thereto, including without
    limitation, damages and payments for past or future infringements thereof,
    (c) the right to sue for past, present and future infringements thereof,
    (d) all rights corresponding thereto throughout the world, and (e) the goodwill
    of the business operated by such Person connected with and symbolized by
    any trademarks or trade names; (ii) copyrights, copyright registrations and
    copyright applications, including without limitation those listed in the
    Schedule, as the same may be amended from time to time, and (a) renewals
    thereof, (b) all income, royalties, damages and payments now and hereafter
    due and/or payable with respect thereto, including without limitation, damages
    and payments for past or future infringements thereof, (c) the right to sue
    for past, present and future infringements thereof, and (d) all rights corresponding
    thereto throughout the world; (iii) license agreements with respect to any
    of the types of property described in clauses (i), (ii) or (iv), including
    without limitation those listed in the Schedule, and the right to prepare
    for sale, sell and advertise for sale any Inventory now or hereafter owned
    by such Person and now or hereafter covered by such licenses; and (iv) patents
    and patent applications, registered or pending, including without limitation
    those listed in the Schedule, as the same may be amended from time to time,
    together with (a) reissues, divisions, continuations, renewals, extensions
    and continuations-in-part thereof, (b) all income, royalties, shop rights,
    damages and payments thereto, now and hereafter due and/or payable with respect
    thereto, including without limitation, damages and payments for past or future
    infringements thereof, (c) the right to sue for infringements thereof, and
(d) all rights thereto throughout the world. 

“Valid Price Protection” means any credit memorandum issued by any Vendor of Floorplanned Inventory to reimburse Borrower for a decrease in
the value of 

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Borrower's Floorplanned Inventory
    supplied by such Vendor caused by such Vendor's reduction of the purchase
price from the Vendor of such Floorplanned Inventory. 

 “Vendor” means,
    with respect to any Floorplan Loan or Floorplanned Inventory, the manufacturer
    or vendor from whom any Floorplanned Inventory is purchased. 

 1.2 Other
      Terms. All accounting terms used in
      this Agreement, unless otherwise indicated, shall have the meanings
      given to such terms in accordance with GAAP. All other terms contained
      in this Agreement, unless otherwise indicated, shall have the meanings
      provided by the Code, to the extent such terms are defined therein. Any
      references herein to the “occurrence” of an Event of Default or the “existence” of
    an Event of Default shall refer to the occurrence or existence of any event,
    fact or circumstances constituting an Event of Default under Section 7.1
    of this Agreement after giving effect to and/or after the expiration of to
    any grace or cure period provided for with respect to such event, fact or
    circumstance in the applicable provision(s) of Section 7.1. 

2. LOANS; INTEREST RATE AND OTHER CHARGES. 

2.1 Total Facility. Upon the terms and conditions set forth herein and provided that no Event of Default or event which, with the giving of notice or
the passage of time, or both, would constitute an Event of Default, may have occurred and be continuing, DLL may (and, if and to the extent that the Schedule states that any portion of the facility to be provided is a committed facility, upon the
satisfaction of the appropriate conditions set forth in the Schedule and Section 4.2, DLL shall) upon Borrower's request, make advances to Borrower from time to time in an aggregate outstanding principal amount not to exceed the Total Facility
amount (the “Total Facility”) set forth in the Schedule, subject to deduction of reserves for accrued interest and such other reserves as DLL deems proper from
time to time in its Permitted Discretion, including Loan Reserves against the borrowing availability under the Revolving Credit Loans, and less amounts DLL may be obligated to pay in the future on behalf of Borrower. The Schedule is an integral part
of this Agreement and all references to “herein”, “herewith” and words of similar import shall for all purposes be deemed to include the Schedule. 

2.2 Loans. Advances hereunder (each, a “Loan” and
collectively, “Loans”) shall be comprised of the amounts and at the advance rates shown in the Schedule. DLL may, in its Permitted Discretion, adjust the
advance rates set forth in the Schedule. 

2.3 Reconciliation Payments. If at any time or for any reason (i) the outstanding principal amount of Revolving Credit Loans exceeds any of the
applicable dollar or percentage limitations contained in the Schedule (any such excess, a “Revolver Overloan”); (ii) the sum of (a) the aggregate outstanding
principal amount of Floorplan Loans plus (b) approvals given by DLL to a Vendor of Floorplanned Inventory exceeds the Maximum Floorplan Amount (any such excess a “Floorplan Overloan”);
(iii) the aggregate outstanding principal amount of Floorplan Loans exceeds the
sum of (x) the amount of Floorplanned Inventory plus (y) the Valid Price Protection
plus (z) the RMA Credits (any such excess, a “Floorplan Collateral Coverage Reconciliation”),
or (iv) the aggregate outstanding amount of all Loans exceeds the Total Facility
(a “Facility Overloan”),
then Borrower shall, upon DLL's demand, immediately pay to DLL, in cash, the
full amount of such Revolver Overloan, Floorplan
Overloan, Floorplan Collateral Coverage Reconciliation or Facility Overloan (each,
an “Overloan”). As long as no Event of Default shall have occurred, DLL may consent to reserve Floorplan Collateral Coverage Reconciliation amounts against Excess
Revolver Availability under the Revolving Line of Credit, to the extent of such Excess Revolver Availability, in lieu of a cash payment, which consent of DLL may be withdrawn at any time in DLL’s
Permitted Discretion. Without limiting Borrower's obligation to repay to DLL
on demand any such amount of any Overloan, (a) on the date on which any inventory
report is required to be delivered to DLL hereunder, Borrower shall repay in
full any Floorplan Collateral Coverage Reconciliation described therein to the
extent DLL has not consented to reserve such Floorplan Collateral Coverage Reconciliation
against and deduct such Floorplan Collateral Coverage Reconciliation from the
Excess Revolver Availability as described above (and, in the event that DLL should
initially consent to the establishment of such a reserve against the Excess Revolver
Availability, but later withdraws such consent in the exercise of its Permitted
Discretion, Borrower shall repay in full such Floorplan Collateral Coverage Reconciliation
immediately upon such withdrawal of consent by DLL), and (b) Borrower shall pay
DLL interest on the outstanding principal amount of any Revolver Overloan, Floorplan Overloan, Floorplan Collateral Coverage Reconciliation (unless such Floorplan Collateral Coverage Reconciliation is currently reserved against Excess Revolver Availability with the
consent of DLL) or Facility Overloan upon the earlier of demand by DLL or the next regularly scheduled payment date for interest on the Revolving Credit Loans as specified in the Schedule at the rate of interest applicable to Revolving Credit Loans

- 8 - 

as specified in the Schedule (subject
to any applicable default rate as provided for in Section 2.7) . 

 2.4 Floorplan
      Credit Line. At the request of Borrower
      and as part of the Total Facility, DLL may, in its Permitted Discretion,
      make Floorplan Loans to or for the account of Borrower for the purpose
      of financing Floorplanned Inventory proposed by Borrower to be financed
      pursuant to this Section 2.4 (the “Floorplan Credit Line”).
      At no time shall the sum of Borrower's Obligations to DLL in respect of
      the Floorplan Credit Line exceed the amount specified in the Schedule.
      Upon receipt by DLL of an invoice for Floorplanned
    Inventory from Borrower or the Vendor of such Floorplanned Inventory, which
    invoice is acceptable to DLL in its Permitted Discretion, DLL shall, if it
    elects to finance such Floorplanned Inventory, make a Floorplan Loan to Borrower
    in an amount not to exceed (subject to the other limitations set forth in
    this Agreement) the cost, as reflected on the Vendor’s invoice, of such
    Floorplanned Inventory, including freight. DLL may, in its Permitted Discretion,
    refuse to make a Floorplan Loan against any invoice. If DLL elects to make
    a Floorplan Loan, DLL may disburse the proceeds of such Floorplan Loan, less
    the amount of any discount agreed to between DLL and the Vendor of the Floorplanned
    Inventory, directly to such Vendor on Borrower's behalf in accordance with
    the payment arrangement then in effect between DLL and such Vendor. DLL will
    charge Borrower's loan account for the full amount of the Floorplan Loan
    without regard to any discount that DLL may be entitled to receive pursuant
    to any payment arrangement referred to in the immediately preceding sentence.
    The Floorplan Credit Line is an uncommitted line of credit, may be terminated
    in whole or in part by DLL, in its Permitted Discretion, at any time and,
    upon such termination, no further Floorplan Loans shall be available from
    DLL. 

2.5 Loan Account.  All advances made hereunder, including without limitation all Loans and any and all Overloans, shall be added to and deemed part of
the Obligations when made and shall be secured by the Collateral.  DLL may from time to time charge all Obligations of Borrower when due to Borrower's loan account with DLL. 

2.6 Interest; Fees.

(a) Revolving Credit Line. Borrower shall pay DLL interest on the daily outstanding balance of the Revolving Credit Loans at the per annum rates and
at the times set forth in the Schedule and the Secured Revolving Credit Note, as applicable. Borrower shall also pay DLL the fees at the rates and/or in the amounts and at the times set forth in the Schedule.

(b) Floorplan Credit Line. If Borrower fails to repay any Floorplan Loan on the applicable Due Date, Borrower shall pay DLL interest on the daily
amount past due at the applicable per annum rate set forth in the Schedule. In addition, in the event that DLL elects to make advances under the Floorplan Credit Line which are not subsidized by the Vendor, any such non-subsidized Floorplan Loan
will bear interest from the date such Floorplan Loan is made until the applicable Due Date at the rate agreed to by DLL (acting in its Permitted Discretion) and Borrower in connection with each such specific non-subsidized Floorplan Loan as evidenced by the transaction statement provided to Borrower by DLL in connection with each such specific non-subsidized Floorplan Loan. All such interest accruing from
time to time with respect to any Floorplan Loan shall be payable upon demand of DLL, or if not sooner demanded by DLL, upon the next regularly scheduled interest payment date for interest on the Revolving Credit Loans as specified in the Schedule.

2.7 Default Interest Rate.  Upon the occurrence and during the continuation of an Event of Default, Borrower shall pay DLL interest on the daily
outstanding balance of the Revolving Credit Loans and any other Obligations that are outstanding (other than the Floorplan Loans) at a rate per annum which is three percentage points (3.0%) in excess of the rate which would otherwise be applicable
to the Revolving Credit Loans pursuant to the Schedule. All such default interest shall be payable upon the earlier of demand by DLL or on the next regularly scheduled interest payment date for interest on the Revolving Credit Loans as specified in
the Schedule. 

2.8 Examination Fees. Borrower agrees to pay to DLL an Examination Fee in the amount set forth in the Schedule in connection with each audit or
examination of Borrower performed by DLL prior to or after the date hereof. Without limiting the generality of the foregoing, Borrower shall pay to DLL an initial Examination Fee in an amount equal to the amount set forth on the Schedule. Such
initial Examination Fee shall be deemed fully earned at the time of payment and due and payable upon the closing of this transaction, and shall be deducted from any good faith deposit paid by Borrower to DLL prior to the date of this Agreement.

2.9 Excess Interest.  It is the intent of the parties to comply with the usury laws and all other laws regarding the maximum lawful rate of interest
applicable to the Agreement and the transactions contemplated hereby of the Commonwealth of Pennsylvania (collectively, the “Applicable Usury Law”).
Accordingly, it is agreed that 

  - 9 -

notwithstanding any provisions to
    the contrary in this Agreement, or in any of the documents securing payment
    hereof or otherwise relating hereto, in no event shall this Agreement or
    such documents require the payment or permit the collection of interest in
    excess of the maximum contract rate permitted by the Applicable Usury Law
    (the “Maximum Interest Rate”).
    In the event that the effective rate of interest contracted for hereunder
    would exceed the Maximum Interest Rate under any circumstances, then in any
    such event (1) the provisions of this paragraph shall govern and control,
    (2) neither Borrower nor any other person or entity now or hereafter liable
    for the payment of the Obligations shall be obligated to pay the amount of
such interest to the extent that it is in excess of the Maximum Interest Rate, (3) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal amount of the Obligations or refunded to Borrower,
  at DLL's option, and (4) the effective rate of interest hereunder shall be automatically reduced to the Maximum Interest Rate.  It is further agreed, without limiting the generality of the foregoing, that to the extent permitted by the Applicable
  Usury Law; (x) all calculations of interest which are made for the purpose of determining whether the effective rate of interest hereunder would exceed the Maximum Interest Rate shall be made by amortizing, prorating, allocating and spreading during
  the period of the full stated term of the loan evidenced hereby, all interest at any time contracted for, charged or received from Borrower or otherwise in connection with such loan; and (y) in the event that the effective rate of interest on the
  loan should at any time exceed the Maximum Interest Rate, such excess interest that would otherwise have been collected had there been no ceiling imposed by the Applicable Usury Law shall be paid to DLL from time to time, if and when the effective
  interest rate on the loan otherwise falls below the Maximum Interest Rate, to the extent that interest paid to the date of calculation does not exceed the Maximum Interest Rate, until the entire amount of interest which would otherwise have been
collected had there been no ceiling imposed by the Applicable Usury Law has been paid in full.

2.10 Principal Payments; Proceeds of Collateral. 

(a) Principal Payments on Revolving Credit Loans and Floorplan Loans. Except where evidenced by notes or other instruments issued or made by Borrower
to DLL specifically containing payment provisions which are in conflict with this Section 2.10(a) (in which event the conflicting provisions of said notes or other instruments shall govern and control), that portion of the Obligations consisting of
principal payable on account of Revolving Credit Loans and Floorplan Loans shall be payable by Borrower to DLL immediately upon the earliest of (i) in the case of Revolving Credit Loans only, the receipt by DLL or Borrower of any proceeds of any of
the Collateral, to the extent of said proceeds, (ii) the occurrence of an Event of Default in consequence of which DLL elects to accelerate the maturity and payment of such loans, (iii) any termination of this Agreement pursuant to Section 9.2, or
(iv) in the case of any Floorplan Loan, the date that is the number of days after the invoice date for the Floorplanned Inventory purchased with the proceeds of such Floorplan Loan agreed to by DLL (acting in its Permitted Discretion and based on
the payment and repurchase arrangements then in effect between DLL and the applicable Vendor) and Borrower in connection with
the making of each such specific Floorplan Loan as evidenced by the transaction
statement (which may be delivered by electronic transmission or email) provided
to Borrower by DLL in connection with each such specific Floorplan Loan, subject
to any “commonized due date” program established and made applicable to Borrower by DLL in is sole discretion (provided that, notwithstanding anything to the contrary contained in the foregoing or otherwise in this
Agreement, DLL shall provide thirty (30) days prior notice to Borrower before making any change to any of the due dates under or any other aspect of any such “commonized due date” program)
under which payments that would ordinarily be due in respect of any Floorplan
Loans on any particular date of a month shall instead, along with other payments
that would ordinary be due on particular dates in a time period during the same
month established by DLL under such commonized due date program, will instead
come due on a common due date for the administrative convenience of DLL and Borrower
(e.g., and for illustrative purposes only, a commonized due date program whereby
all payments on any Floorplan Loans that would otherwise come due on the 1st of any month through the 10th of such month would all come due on the 5th day
of such month) and further subject to any changes in or the discontinuation of
any such commonized due date program as to Borrower by DLL in its sole discretion
(each, a “Due Date”), provided, however, that any Overloan shall be payable on demand (or, in the case
of a Floorplan Collateral Coverage Reconciliation originally reserved against the borrowing availability under the Revolving Credit Loans with the consent of DLL, immediately upon the withdrawal by DLL of such consent) pursuant to the provisions of
Section 2.3.  Notwithstanding anything to the contrary contained in the foregoing, on a case by case basis, DLL, acting in its Permitted Discretion, may agree with Borrower to extend the Due Date of any specific Floorplan Loan, on such terms and
conditions as are established by DLL in its Permitted Discretion, and consented to by Borrower. 

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(b) [RESERVED]. 

 (c) Collections.
    Borrower may make collection of all Receivables for DLL unless and until
    DLL shall notify Borrower to the contrary after the occurrence and during
    the continuance of an Event of Default. Unless Borrower shall be otherwise
    directed by DLL in writing, Borrower shall at all times direct all Account
    Debtors to remit all payments owing to Borrower on its customer Receivables
    to one or more lockboxes (each, a “Lockbox”)
    established with a bank or other financial institution selected by Borrower
    and acceptable to DLL pursuant to an arrangement with such bank or financial
    institution that is acceptable to DLL. Each such arrangement regarding each
    such Lockbox shall provide, inter alia, that all checks and payments
    received into such Lockbox shall be deposited on a daily basis into a related
    lockbox account or other “blocked account” (as
    DLL may require) (each, a “Blocked
  Account”), which such Blocked Account shall be subject to a tri-party agreement among DLL, Borrower and the applicable bank of other financial institution in form and substance acceptable to DLL which
  shall provide that DLL shall have exclusive authority and control over such Blocked Account and the funds deposited therein and that said bank or financial institution shall transfer funds deposited in such Blocked Account to DLL on a daily basis,
  either to any account maintained by DLL at said bank or financial institution or by wire transfer to appropriate account(s) of DLL at another bank or financial institution or otherwise as DLL may direct. In the event Borrower shall nevertheless
  directly receive any payments owing to Borrower on its customer Receivables, Borrower shall receive all such payments as trustee of DLL pursuant to an express trust hereunder and immediately deliver all payments to DLL in their original form as set
  forth below, duly endorsed in blank or cause the same to be deposited into the Blocked Accounts, and until such payments and proceeds are so deposited into a Blocked Account, Borrower shall segregate such payments and proceeds from and shall not
  commingle any such payments and proceeds with or in any of Borrower’s
  other deposit accounts or funds or monies or other assets. Alternatively, DLL
  may establish depository accounts in the name of DLL at the bank or other financial
  institution at which each Lockbox is maintained for the deposit of the checks,
  payment and other funds received into the Lockbox (each, a “Dominion Account”)
  and Borrower shall deposit all proceeds of customer Receivables or cause same
  to be deposited, in kind, in such Dominion Accounts of DLL in lieu of depositing
  same to Blocked Accounts. All funds deposited in a Blocked Account or Dominion
  Account shall immediately become the sole property of DLL and Borrower shall
  obtain the agreement by each applicable bank or financial institution to waive
  any offset rights against the funds so deposited. All funds deposited into
  any Blocked Account or Dominion Account, unless otherwise provided herein,
  shall be applied in payment of the Obligations in such order as DLL determines
  in its Permitted Discretion. DLL assumes no responsibility for any Lockbox,
  Blocked Account or Dominion Account arrangement, including without limitation,
  any claim of accord and satisfaction or release with respect to deposits accepted
  by any bank or financial institution thereunder. 

(d) Payments Without Deductions. Borrower shall pay principal, interest, and all other amounts payable hereunder, or under any related agreement,
without any deduction whatsoever, including, but not limited to, any deduction for any setoff or counterclaim. 

(e) Collection Days Upon Repayment; Time of Payments. Any payments made by or on behalf of Borrower with respect to the Obligations owing under this
Agreement and the other Loan Documents, including without limitation any payments made with the collections and payments and proceeds on any of Receivables or other Collateral as provided for in Sections 2.10(c) above, shall be credited (conditioned
upon final collection) to Borrower's loan account within the number of days referenced in the Schedule after DLL's receipt thereof. Any payments received by DLL after 1:00 PM Pennsylvania time on any Business Day or at any time on any day that is
not a Business Day shall be deemed to have been received on the next following Business Day. DLL is not however required to credit Borrower’s account for the amount of any uncollected payment which is unsatisfactory to DLL in its Permitted
Discretion and DLL may charge Borrower’s loan account for the amount of any item of payment which is returned to DLL unpaid. 

(f) Monthly Accountings, Floorplan Loan Transaction Statements. DLL shall provide Borrower monthly with an account of advances, charges, expenses and
payments made pursuant to this Agreement. Such account shall be deemed correct, accurate and binding on Borrower and DLL and an account stated (subject to final collection of all payments received and except for reverses and reapplications of
payments made and corrections of errors discovered by DLL), unless Borrower notifies DLL in writing to the contrary within forty-five (45) days after each account is rendered, describing the nature of any alleged errors or omissions. 

In addition, DLL shall also provide Borrower promptly
after making each Floorplan Loan to Borrower with a transaction statement (which
may be delivered by electronic transmission or email) for each such specific 

  - 11 -

Floorplan Loan, which statement shall,
    inter alia, list the amount of such specific Floorplan Loan, the number of
    days after the invoice date for the Floorplanned Inventory purchased with
    the proceeds of such Floorplan Loan after which repayment of such Floorplan
    Loan shall be due (subject to any commonized due date program applicable
    to DLL as described in Section 2.10(a) above)) and in the case of any non-subsidized
    Floorplan Loan as described in Section 2.4(b) above, the rate of interest
    applicable to such Floorplan Loan between the date such Floorplan Loan is
    made and the Due Date of such Floorplan Loan. Such transaction statement
    with respect to each such specific Floorplan Loan, including the terms regarding
    due dates and/or interest rates applicable to such specific Floorplan Loan,
    shall be deemed correct, accurate and binding on Borrower and DLL unless
Borrower notifies DLL in writing to the contrary within five (5) days after such transaction statement is provided by DLL to Borrower describing the nature of any alleged errors or omissions. 

(g) Collections and Administration. DLL may, at any time, after the occurrence and during the continuance of an Event of Default, either (i) notify
any Account Debtor of the fact that the Receivables and other Collateral have been assigned to DLL by Borrower and of DLL’s security interest therein and that payment thereof is to be made to the order of and directly to DLL, and/or (ii)
demand, collect or enforce payment of any Receivables or such other Collateral, but without any duty to do so, and DLL shall not be liable for any failure to collect or enforce payment thereof. At DLL's request, after the occurrence and during the
continuance of an Event of Default, all invoices, or bills and statements sent to any Account Debtor, other obligor or bailee, shall state that the Receivables and such Collateral shall have been assigned to DLL and/or are payable directly and only
to DLL (other than with respect to federal government Receivables unless the procedures under the federal Assignment of Claims Act to assign the Receivable to DLL have been followed). DLL may charge any and all reasonable and documented costs and
expenses relating to the collection of Borrower’s Receivables to Borrower’s loan account. DLL shall have the right, at any time, whether or not an Event of Default has occurred, without notice to or assent of Borrower, in DLL's name,
Borrower’s name or in the name of a nominee of DLL, to verify the validity, amount or any other matter relating to the Receivables or the other Collateral, by mail, telephone or otherwise (except that, notwithstanding anything to the contrary
contained in the foregoing, unless an Event of Default has occurred and is continuing, DLL shall conduct all such verifications in the name of and/or on behalf of Borrower and not in DLL’s own name or the name of any nominee of DLL).

2.11 Application of Collateral.  Subject to the provisions of Section 2.10(a) above, DLL shall have the continuing and exclusive right to apply or
reverse and re-apply any and all payments to any portion of the Obligations, and such application or re-application can be in any order or manner that DLL deems necessary and appropriate in its Permitted Discretion.  To the extent that Borrower
makes a payment or DLL receives any payment or proceeds of the Collateral for Borrower's benefit which is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession,
receiver or any other party under any bankruptcy law, common law or equitable cause, then, to such extent, the Obligations or part thereof intended to be satisfied by such payment or proceeds shall be revived and continue as if such payment or proceeds had not been received by DLL and DLL shall adjust the balance of the Loans to
reflect the revival of such Obligations and reversal of such payment. 

3. COLLATERAL. 

3.1 Security Interest in the Collateral.  To secure the payment and performance of the Obligations when due, Borrower hereby grants to DLL (i) a first
priority security interest (subject only to Permitted Encumbrances) in all of Borrower's now owned or hereafter acquired or arising Receivables, Chattel Paper, Commercial Tort Claims, Deposit Accounts (and all funds and monies from time to time on
deposit therein), Documents, Equipment, General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, life insurance policies, Trademarks, Copyrights, Licenses and Patents, all of Borrower's money and cash, any
and all property now or at any time hereafter in DLL's possession (including claims and credit balances), and all proceeds of the foregoing (including proceeds of any insurance policies, proceeds of proceeds and claims against third parties) and all
Supporting Obligations, products, accessions and all books and records related to any of the foregoing and (ii) assigns, transfers and sets over to DLL all of its right, title and interest, powers, privileges and other benefits of all leases, rental
agreements and related documents entered into by Borrower with respect to any Equipment leased by Borrower as lessor or lessee together with all income, proceeds and other benefits thereof (all of the foregoing, together with all other property in
which DLL may be granted a lien or security interest, is referred to herein, collectively, as the “Collateral”). 

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 3.2 Perfection
      and Protection of Security Interest.
      Borrower shall, at its expense, take all actions reasonably requested by
      DLL at any time to perfect, maintain, protect and enforce DLL's security
      interest and other rights in the Collateral and the priority thereof from
      time to time, including, without limitation, (i) executing and filing financing
      statements and continuations and amendments thereof, all in form and substance
      satisfactory to DLL, (ii) maintaining a perpetual inventory and complete
      and accurate inventory stock records, (iii) delivering to DLL warehouse
      receipts covering any portion of the Collateral located in warehouses and
      for which warehouse receipts are issued, and transferring Inventory to
      warehouses designated by DLL, (iv) delivering to DLL any and all other
      Documents covering any portion of the Collateral; (iv) [RESERVED], and
      (v) upon the request of DLL, taking all actions necessary to give DLL “control” of
      any and all Deposit Accounts, Electronic Chattel Paper, Investment Property
and/or Letter-of-Credit Rights as defined and
provided for in Sections 9-104, 9-105, 9-106 and 9-107 of the Code respectively.
Borrower represents and covenants that as of the date hereof, Borrower has no
Commercial Tort Claims, and covenants and agrees that if Borrower shall at any
time hereafter acquire any Commercial Tort Claims, Borrower, promptly and in
any event within five (5) days of the filing of any complaint by Borrower with
respect to any such Commercial Tort Claim or Borrower otherwise becoming aware
that such a Commercial Tort Claim has arisen or been acquired, Borrower shall
    given written notice to DLL of the filing of such complaint and/or acquisition
    of such Commercial Tort Claim, which notice shall include a reasonably detailed
    description of such Commercial Tort Claim. Borrower shall provide any other
    information reasonably requested by DLL from time to time regarding any such
    Commercial Tort Claim and shall from time to time execute and deliver to
    DLL any security agreements or other documents requested by DLL in order
    to create, perfect, preserve and protect a security interest in favor of
    DLL in each such Commercial Tort Claim. Borrower hereby authorizes DLL to
    file, without Borrower's signature to the extent permitted by the Code and/or
    any other applicable law, one or more financing statements in such jurisdictions
    as DLL shall elect in its Permitted Discretion naming Borrower as the “debtor” and DLL as the “secured
  party” and indicating as the collateral covered thereby a description of the Collateral, which such description of the Collateral may consist of the words “all assets” or “all personal property” of Borrower, and Borrower
  further authorizes DLL to file, without Borrower's signature to the extent permitted by the Code and/or any other applicable law, any and all amendments to and continuations of such financing statements as DLL shall elect in its Permitted
  Discretion. Subject to any applicable provisions of the MRA Intercreditor Agreement, Borrower acknowledges and agrees that DLL will and is hereby authorized to send notices pursuant to Section 9-324(b) of the Code to any and all persons holding
  security interest that were created prior to the Closing Date and to any and all persons who have filed UCC-1 financing statements naming Borrower as the “debtor” prior to the Closing Date stating that DLL will be acquiring and expects to
  acquire a purchase-money security interest in the Floorplanned Inventory and giving a description of the Floorplanned Inventory. If any Collateral is at any time in the possession or control of any warehouseman, bailee or any of Borrower's agents or
  processors, Borrower shall notify such Person of DLL's security interest in such Collateral and, upon DLL's request, instruct them to hold all such Collateral for DLL's account subject to DLL's instructions and/or obtain a waiver from such Person of
that Person’s rights to such Collateral to the extent DLL shall require in its Permitted Discretion.  From time to time, Borrower shall, upon DLL's request, execute and deliver confirmatory written instruments pledging the Collateral to DLL, but
Borrower's failure to do so shall not affect or limit DLL's security interest or other rights in and to the Collateral. Until the Obligations have been fully satisfied and DLL's obligation to make further advances hereunder has terminated, DLL's
security interest in the Collateral shall continue in full force and effect. 

3.3 Preservation of Collateral. DLL may, in its Permitted Discretion, at any time following notice to Borrower (provided that no such notice shall be
required after the occurrence and during the continuance of an Event of Default) discharge any lien or encumbrance on the Collateral (including any past due rent or other obligations owing to any landlord, warehouseman or bailee on whose property
any of the Collateral is stored) or bond the same, pay any insurance, maintain guards, pay any service bureau, obtain any record or take any other action to preserve the Collateral and charge the cost thereof to Borrower's loan account as an
Obligation secured by the Collateral. 

3.4 Insurance.  Borrower will maintain and deliver evidence to DLL of such insurance as is reasonably required by DLL, including without limitation,
all insurance required pursuant to the Schedule, written by insurers, in amounts, and with Lender’s loss payee, additional insured and other endorsements, in each case reasonably satisfactory to DLL. All premiums shall be paid by Borrower as
and when due. Accurate and complete copies of all policies shall be delivered by Borrower to DLL. If Borrower fails to comply with this 

  - 13 -

section, DLL may (but shall not be
    required to) procure such insurance at Borrower’s expense and charge
    the cost thereof to Borrower’s loan account as an Obligation secured
by the Collateral. 

 3.5 Collateral
      Reporting.

 (a) Invoices.
    Borrower shall not re-date any invoice or sale from the original date thereof
    or make sales on extended terms beyond those customary in Borrower's industry,
    or otherwise extend or modify the term of any Receivable. Borrower shall
    deliver a copy of any invoice reasonably requested by DLL (provided that
    nothing contained in the foregoing shall limit DLL’s rights to when
    conducting its field examinations and audits of Borrower and the Collateral
    to request copies of and verify any invoice consistent with reasonable audit
    protocols). Each copy of an invoice delivered to DLL by Borrower will be
    a genuine copy of the original invoice sent to the Account Debtor named therein;
    and with respect to any invoice or accounts receivable aging report delivered to DLL, all goods described in each invoice (or in the respective invoice(s) underlying each Receivable listed on such aging report) will have been delivered to the Account Debtor and all services of Borrower
  described in each invoice (or in the respective invoice(s) underlying each Receivable listed on such aging report) will have been performed. 

(b) Instruments. If any Receivable is or becomes evidenced by a promissory note, trade acceptance or any other Instrument for the payment of money,
Borrower shall immediately deliver such Instrument to DLL appropriately endorsed to DLL or accompanied by an appropriate instrument of transfer executed in blank, and, regardless of the form of any presentment, demand, notice of dishonor, protest or
notice of protest with respect thereto, Borrower shall remain liable thereon until such instrument is paid in full. 

(c) Physical Inventory.  Borrower shall maintain a computerized perpetual inventory system and shall conduct a physical count of the Inventory at such
intervals as DLL requests (but not more frequently than annually unless an Event of Default has occurred and is continuing) and promptly supply DLL with a copy of such accounts accompanied by a report of the quantity and value (calculated at the
lower of cost or market value on a first in, first out basis) of the Inventory and such additional information with respect to the Inventory as DLL may reasonably request from time to time. 

(d) Returns. For so long as no Event of Default has occurred and is continuing and subject to the provisions of Section 3.6(b), if any Account Debtor
returns any Inventory to Borrower in the ordinary course of its business, Borrower shall promptly determine the reason for such return and may issue a credit memorandum to the Account Debtor in the appropriate amount. In the event any Account Debtor
returns Inventory to Borrower after the occurrence and during the continuance of any Event of Default, Borrower shall (i) hold the returned Inventory in trust for DLL, (ii) segregate all returned Inventory from all of Borrower's other property,
(iii) conspicuously label the returned Inventory as DLL's property, (iv) immediately notify DLL of the return of any Inventory, specifying the reason for such return, the location and condition of the returned Inventory, and on DLL's request deliver
such returned Inventory to DLL, and (v) not dispose of, or issue any credits or allowances with respect to, any returned Inventory without DLL’s prior written consent. 

(e) Consignments.  Borrower shall not consign any Inventory. 

3.6 Receivables. 

(a) Eligibility. (i) Borrower represents and warrants that as of the date of the issuance of the invoice for each Receivable and also as of the date
any such Receivable is reported to DLL as an Eligible Receivable, such Receivable covers and shall cover a bona fide sale or lease and delivery by Borrower of goods or a bona fide rendition by Borrower of services, in each case in the ordinary
course of its business, and shall be for a liquidated amount and shall not be subject to any offset, deduction,  or counterclaim, or any rights of return or cancellation (other than rights of return and cancellation granted to customers in the
ordinary course of business), or any lien (except for DLL’s security interest) or other condition.  If any representation or warranty herein is breached as to any Receivable or any Receivable ceases to be an Eligible Receivable for any reason
other than payment thereof, then DLL may, in addition to its other rights hereunder, and without limiting the generality of the first sentence of the definitions of Eligible Receivables or (if applicable) Eligible Inventory, designate any and all
Receivables owing by that Account Debtor as Receivables that are not Eligible Receivables; provided, that DLL shall in any such event retain its security interest in all
Receivables, whether or not Eligible Receivables, until the Obligations have been fully satisfied and DLL's obligation to provide loans hereunder has terminated. If prior to the date of providing the next Borrowing Base Certificate due and required
under this Agreement, Borrower becomes aware of any matter adversely affecting any one or more Receivable(s) which have previously been reported to DLL 

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as Eligible Accounts, including information
    affecting the credit of the Account Debtor thereon, Borrower shall promptly
    notify DLL in writing if the adverse effect on such Receivable would result
in a Material Adverse Effect.

 (ii) DLL at any and all times shall
    be entitled in the exercise of its Permitted Discretion to (i) establish
    and increase or decrease the Loan Reserves against the Revolving Credit Borrowing
    Base Amount as provided for in the definition of Loan Reserves and/or as
    otherwise provided for in the Agreement, (ii) reduce the advance rates in
    the Schedule or restore such advance rates to any level equal to or below
    the advance rates set forth in the Schedule or (iii) without
    limiting the generality of the first sentence of the definition of Eligible
    Receivables or the first sentence of the definition of Eligible Inventory
    (if applicable), impose additional restrictions (or eliminate the same) for
    or tighten or make more restrictive any standards of eligibility set forth
    in the definitions of “Eligible Receivables” and “Eligible
    Inventory” (if applicable) contained in the Schedule. DLL may but shall
    not be required to rely on the schedules and/or reports delivered to DLL
    in connection herewith in determining the then eligibility of Receivables
    and Inventory. Reliance thereon by DLL from time to time shall not be deemed to limit the right of DLL to revise advance rates or standards of eligibility as provided above. 

(b) Disputes. If prior to the date of providing the next Borrowing Base Certificate due and required under this Agreement, Borrower becomes aware of
an dispute or claims with respect to any one or more Receivable(s) which have previously been reported to DLL as Eligible Accounts, Borrower shall notify DLL promptly of all such disputes or claims with respect to any such Receivable(s) if the
failure of the Account Debtor to pay such Receivable(s) as a result of such dispute would have a Material Adverse Effect. With respect to any Receivable that becomes subject to any such dispute or claim, Borrower shall settle or adjust such disputes
or claims at no expense to DLL, but no discount, credit or allowance shall be granted to any Account Debtor and no returns of merchandise shall be accepted by Borrower without DLL's consent, except for discounts, credits and allowances made or given
and returns accepted in the ordinary course of Borrower's business. DLL may, at any time after the occurrence and during the continuance of an Event of Default, settle or adjust disputes or claims directly with Account Debtors for amounts and upon
terms which DLL considers advisable in its reasonable credit judgment and, in all cases, DLL shall credit Borrower's loan account with only the net amounts received by DLL in payment of any Receivables. 

3.7 Equipment. Borrower shall keep and maintain the Equipment in good operating condition and repair and make all necessary replacements thereto to
maintain and preserve the value and operating efficiency thereof at all times consistent with Borrower's past practice, ordinary wear and tear excepted. Borrower shall not permit any item of Equipment to become a fixture (other than a trade fixture)
to real estate or an accession to other property unless such real estate or property is subject to a first priority, perfected security interest in favor of DLL. 

3.8 Other Liens; No Disposition of Collateral. Borrower represents, warrants and covenants that except for DLL's security interest and, with respect
to Collateral other than Eligible Accounts, Eligible Inventory or Floorplanned Inventory, other Permitted Encumbrances, and such other liens, claims and encumbrances as may be permitted by DLL in its Permitted Discretion from time to time in
writing, all Collateral is and shall continue to be owned by it free and clear of all liens, claims and encumbrances whatsoever. Furthermore, Borrower shall not, without DLL's prior written approval, sell, encumber or dispose of or permit the sale,
encumbrance or disposal of any Collateral or any of its other assets (or any interest of Borrower therein), except as permitted by Section 6.2.1 below. In the event DLL gives any such prior written approval with respect to any such sale of Collateral,
the same may be conditioned on the sale price being equal to, or greater than, an amount acceptable to DLL.  The proceeds of any such sales, as well as all other sales of any of the Collateral, shall be remitted to DLL pursuant to this Agreement
(specifically including Section 2.10(c) hereof) for application to the Obligations. 

3.9 Collateral Security. The Obligations shall constitute one loan secured by the Collateral. DLL may, in its Permitted Discretion, (i) exchange,
enforce, waive or release any of the Collateral, (ii) after the occurrence and during the continuance of an Event of Default, apply Collateral and direct the order or manner of sale thereof as it may determine, and (iii) after the occurrence and
during the continuance of an Event of Default, settle, compromise, collect or otherwise liquidate any Collateral in any manner without affecting its right to take any other action with respect to any other Collateral. DLL shall have no obligation to
exercise its rights against the Collateral in any particular order, or to exercise its rights against any or all of the Collateral (or to forbear from exercising its rights against any or all of the Collateral) prior to exercising any other rights
it may have against Borrower and/or any rights it may have against any one or more Guarantors (if any exist) or to otherwise marshal any 

- 15 - 

of the Collateral or other assets
    of Borrower for the benefit of Borrower or any other party (including any
    Guarantor that may exist from time to time) and Borrower waives any and all
such rights of marshalling. 

 4. CONDITIONS
        OF CLOSING. 

 4.1 Initial
      Advance. DLL shall not, and, regardless
      of whether the Schedule provides that any portion of the Total Facility
      is a committed facility, shall not under any circumstances be deemed to
      have any obligation to, make the initial advance hereunder unless each
      of the following conditions and any additional conditions specified in
      the Schedule is fulfilled, to the satisfaction of DLL and its counsel in
      the exercise of their reasonable business judgment, and without limiting
      the generality of the foregoing, any and all documents, agreements, contracts
      or instruments required to be delivered under such conditions below or
      in the Schedule shall be in form and substance acceptable to DLL and its
      counsel in the exercise of their reasonable business judgment (the date
      of fulfillment of all such conditions, the “Closing
      Date”):

 (a) Loan
      Documents. DLL shall have received
      each of the following Loan Documents: (i) the Agreement and the Schedule
      hereto fully and properly executed by Borrower; (ii) promissory notes in
      such amounts and on such terms and conditions as DLL shall specify, executed by Borrower; (iii) such security agreements, intellectual property assignments, guaranty agreements, pledge agreements, mortgages and deeds of trust as DLL may
  require with respect to this Agreement, executed by each of the parties thereto and, if applicable, duly acknowledged for recording or filing in the appropriate governmental
  offices; (iv) such other documents, instruments and agreements in connection herewith as DLL shall require, executed, certified and/or acknowledged by such parties as DLL shall have designated; 

(b) Terminations/Subordinations by Existing Lender. Borrower's existing lender(s), if any, (other than MRA Systems, Inc.) shall have executed and
delivered UCC termination statements and other documentation evidencing the termination of its liens and security interests in the assets of Borrower or a subordination agreement in form and substance satisfactory to DLL in its Permitted Discretion,
and all loan documents of any kind between Borrower and any such existing lender that is not becoming a Subordinating Creditor shall have been terminated; and DLL shall have approved in its Permitted Discretion any outstanding payoff arrangements
with the foregoing creditors;

(c) Charter and Other Corporate Documents.  DLL shall have received copies of (i) Borrower's Bylaws and Articles or Certificate of Incorporation, as
amended, modified, or supplemented to the Closing Date, certified by the Secretary of Borrower; and (ii) Borrower’s registrations of fictitious names, trademarks, tradenames and Internet domain names.

(d) Good Standing.  DLL shall have received a certificate of status with respect to Borrower, and each other Loan Party (other than a Subordinating
Creditor), dated within ten (10) days prior to the Closing Date, by the Secretary of State or other similar official of the state of incorporation or organization of Borrower or such Loan Party (other than a Subordinating Creditor), which
certificate shall indicate that Borrower or such Loan Party(other than a Subordinating Creditor) is in good standing in such state;

(e) Foreign Qualification. DLL shall have received certificates of status with respect to Borrower and each other Loan Party (other than a
Subordinating Creditor), each dated within thirty (30) days prior to the Closing Date, issued by the Secretary of State or other similar official of each state in which such party's failure to be duly qualified or licensed would have a material
adverse effect on its business, operations, financial condition or assets, indicating that such party is in good standing;

(f) Authorizing Resolutions and Incumbency. DLL shall have received (i) a copy of resolutions of Borrower's Board of Directors authorizing the
execution and delivery of this Agreement and the other Loan Documents, (ii) a copy of resolutions of each other Loan Party’s (other than a Subordinating Creditor) Board of Directors authorizing the execution and delivery of the Loan Documents
to which such Loan Party is a party, and authorizing specific officers of such Loan Party to execute same, and (iii) a certificate from the Secretary of Borrower and each other Loan Party (other than a Subordinating Creditor), attesting to (A) the
adoption of the such resolutions, and (B) the authenticity of original specimen signatures of such officers;

(g) Insurance.  DLL shall have received the insurance certificates and certified copies of policies required by Section 3.4 hereof, in form and
substance satisfactory to DLL and its counsel, including if so required an additional insured endorsement in favor of DLL with respect to all liability policies and a lender’s loss payable endorsement in favor of DLL with respect to all
casualty and business interruption policies, each in form and substance acceptable to DLL and its counsel;

(h) Title Insurance.  DLL shall have received binding commitments to issue title insurance, in form and 

- 16 -

substance satisfactory to DLL and
    its counsel, with respect to any real property that constitutes part of the
Collateral;

 (i) Searches;
      Certificates of Title; Perfection.
      DLL shall have received searches reflecting the filing of its financing
      statements and fixture filings in such jurisdictions as it shall determine,
      and shall have received certificates of title with respect to any applicable
      Collateral and shall have received executed copies of any and all agreements
      and/or received possession of any certificates necessary for DLL to have “control” over
      any applicable Collateral as described in Section 3.2 above, all of which
      shall have been duly executed, filed and/or delivered in a manner sufficient
      to perfect all of the security interests granted to DLL;

 (j) Landlord,
      Bailee and Mortgagee Waivers. To the
      extent requested by DLL, DLL shall have received landlord, bailee and/or
      mortgagee waivers from the lessors, bailees and/or mortgagees of all locations
      where any Collateral is located;

 (k) Fees.
    Borrower shall have paid all fees payable by it on the Closing Date pursuant
    to this Agreement;

 (l) Opinion
      of Counsel. DLL shall have received
      an opinion of Borrower's counsel covering such matters as DLL shall determine
      in its Permitted Discretion;

(m) Officer Certificate.  DLL shall have received a certificate of the Chief Executive Officer or similar official of Borrower, attesting to the
  accuracy of each of the representations and warranties of Borrower set forth in this Agreement and the fulfillment of all conditions precedent to the initial advance hereunder;

(n) Solvency Certificate. DLL shall have received a signed certificate of the Borrower’s duly elected Chief Financial Officer or such other
officer of Borrower acceptable to DLL, concerning the solvency and financial condition of Borrower, on DLL's standard form;

(o) Blocked Account. Any Blocked Account or Dominion Account required by DLL, and any and all documents required to give DLL “control” over
any such account(s) as defined and provided for in Section 9-104 of the Code, shall have been established to the satisfaction of DLL in its Permitted Discretion; 

(p) [RESERVED]; 

(q) RESERVED; 

(r) Representations and Warranties; No Event of Default. The representations
an warranties of Borrower set forth in the Agreement shall be accurate in all material respects, before and after giving effect to such initial advance and to the application of any proceeds thereof; and no event which would constitute an Event of
Default, or an event which, with notice or the passage of time or both, would constitute an Event of Default, has occurred and is continuing, or would result from such initial advance or from the application of any proceeds thereof. 

(s) Minimum Excess Availability or Excess Revolver Availability. If required
by DLL, Borrower shall have Excess Availability and/or Excess Revolver Availability hereunder of not less than the amount specified in the Schedule, after giving effect to the initial advance hereunder.

(t) Schedule Conditions.  Borrower shall have complied with all additional conditions precedent as set forth in the Schedule. 

(u) Other Matters.  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 DLL and its counsel. 

4.2 Subsequent Advances. DLL shall not, and, regardless of whether the Schedule provides that any portion of the Total Facility is a committed
facility, shall not under any circumstances be deemed to have any obligation to, make any advance subsequent to the initial advance hereunder unless, on and as of the date of each such advance, each of the further conditions precedent shall be
fulfilled: (i) the representations and warranties of Borrower set forth in this Agreement as remade on the date of such advance pursuant to Section 5.18 below shall be accurate in all material respects, before and after giving effect to such advance
or issuance and to the application of any proceeds thereof; (ii) no Event of Default and no event which, with notice or passage of time or both, would constitute an Event of Default has occurred and is continuing, or would result from such advance
or issuance or from the application of any proceeds thereof;  (iii)  no material adverse change has occurred in the Borrower’s business, operations, financial condition, or assets or in the prospect of repayment of the Obligations; and (iv) DLL
shall have received such other approvals, opinions or documents as shall be required under and consistent with the provisions of this Agreement. 

- 17 - 

5. REPRESENTATIONS
AND WARRANTIES. 

 Borrower represents and warrants
    that: 

 5.1 Due
      Organization. Borrower and each of
      its Subsidiaries is a corporation duly organized, validly existing and
      in good standing under the laws of the State set forth on the Schedule,
      is qualified and authorized to do business and is in good standing in all
      states in which such qualification and good standing are necessary in order
      for it to conduct its business and own its property except to the extent
      that the failure to be so qualified in any such state(s) other than the
      applicable state of organization would not have a Material Adverse Effect
      (which states, as of the Closing Date, are listed on the Schedule), and
      has all requisite power and authority to conduct its business as presently
      conducted, to own its property and to execute and deliver each of the Loan
      Documents to which it is a party and perform all of its Obligations thereunder
      and has not taken any steps to wind up, dissolve or otherwise liquidate
      its assets. 

 5.2 Other
      Names. As of the Closing Date, neither
      Borrower nor any of its Subsidiaries has, during the preceding five (5)
      years, been known by or used any other corporate or fictitious name except
      as set forth in the Schedule, nor has Borrower nor any of its Subsidiaries
      been the surviving entity of a merger or consolidation or acquired all
      or substantially all of the assets of any person or acquired any assets
      of another person outside of the ordinary course of business during such
      time, except as set forth in the Schedule. 

5.3 Due Authorization. The execution, delivery and performance by each of Borrower and each of its Subsidiaries of the Loan Documents to which it is a
  party have been authorized by all necessary corporate action and do not and shall not constitute a violation of any applicable law or of such entity’s Articles or Certificate of Incorporation or By-Laws or any other document, agreement or
  instrument to which such entity is a party or by which such entity or its assets are bound. 

5.4 Binding Obligation. Each of the Loan Documents to which Borrower and each of its Subsidiaries is a party is the legal, valid and binding
obligation of such entity enforceable against such entity in accordance with its terms subject to the effect of any applicable bankruptcy, fraudulent transfer, moratorium, insolvency, reorganization or other similar laws affecting the rights of
creditors generally and the effect of general principles of equity whether applied by a court of equity or law. 

5.5 Intangible Property.  Borrower and each of its Subsidiaries possesses adequate Trademarks, Copyrights, Licenses and Patents for the present and
planned future conduct of its business without any known conflict with the rights of others, and each is valid and enforceable and has been duly registered or filed with the appropriate governmental or regulatory authorities; each of the patents,
patent applications, copyrights, Internet domain names, trademarks and trademark applications of Borrower and each of its Subsidiaries which have been registered or filed with any governmental or regulatory authority (including the U.S. Patent and
Trademark Office, U.S. Copyright Office and the Library of Congress) as of the Closing Date are listed by name, date and filing number in the Schedule and if any such assets have been acquired (whether by purchase from a third party or registration
or filing with any such governmental or regulatory authority by Borrower) since the date hereof, Borrower has given written notice of any such acquisition, filing or registration to DLL and has taken all actions requested by DLL to perfect
DLL’s rights and liens with respect to such assets. 

5.6 Capital. Borrower and each of its Subsidiaries has capital sufficient to conduct its business, is able to pay its debts as they mature and owns
property having a fair salable value greater than the amount required to pay all of its debts (including contingent debts). 

5.7 Material Litigation. There is no pending or overtly threatened litigation, actions or proceedings against Borrower nor any of its Subsidiaries
which if determined adversely to Borrower or such Subsidiary, would have a Material Adverse Effect. 

5.8 Title; Security Interests of DLL. Borrower has good, indefeasible and merchantable title to the Collateral and, upon the execution and delivery of
the Loan Documents, filing of UCC-1 Financing Statements in the appropriate offices, delivery of the certificate(s) evidencing any pledged securities, the filing of any collateral assignments or security agreements regarding Borrower’s
Trademarks, Copyrights, Licenses and Patents, if any, with the appropriate governmental or regulatory authorities, the recording of any mortgages or deeds of trust with respect to real property in the appropriate offices, the notation of DLL’s
security interest on any certificate of title for any of the Collateral and all necessary steps being taken and all necessary agreements and documents being executed to give DLL “control” as provided for under Sections 9-104 and 9-107 with
respect to all of Borrower’s Deposit Accounts and Letter-of-Credit Rights, this Agreement and such documents shall create valid and perfected first priority liens in and to the Collateral, subject only to Permitted Encumbrances. Each Subsidiary
of Borrower 

  - 18 -

has good, indefeasible and merchantable
    title to all of its property and assets, free and clear of all liens and
security interest other than Permitted Encumbrances. 

 5.9 Restrictive
      Agreements; Labor Contracts. Neither
      Borrower nor any of its Subsidiaries is a party or subject to any contract,
      or subject to any charge, corporate restriction, judgment, decree or order,
      in either such case materially and adversely affecting its business, assets,
      operations, prospects or condition, financial or otherwise, or which restricts
      its right or ability to incur Indebtedness, and it is not party to any
      material labor dispute. In addition, no labor contract to which Borrower
      or any of its Subsidiaries is a party is scheduled to expire during the
      Term of this Agreement, except as disclosed to DLL in writing prior to
      the date hereof. 

 5.10 Laws.
    Neither Borrower nor any of its Subsidiaries is in violation of any applicable
    statute, regulation, ordinance or any order of any court, tribunal or governmental
    agency, which such violation could reasonably be expected to materially and
    adversely affect the Collateral or its business, assets, operations, prospects
    or condition, financial or otherwise. 

 5.11 Consents.
    Borrower has obtained or caused to be obtained or issued any required consent
    of a governmental agency or other Person in connection with the financing
    contemplated hereby. 

 5.12 Defaults.
    Neither Borrower nor any of its Subsidiaries is in default, nor has any event
    occurred which, with the giving of notice or the lapse of time, or both, would cause such a default, with respect to any note, indenture, loan agreement, mortgage, lease, deed or other agreement to which it is a party or by which it or its assets are bound, if in any such case, the result
  of such default, and/or of any termination or acceleration of such note, indenture, loan agreement, mortgage, lease, deed or other agreement occurring or permitted to occur as a result of such default, would have a Material Adverse
  Effect.

5.13 Financial Condition.  The Prepared Financials fairly present the financial condition and results of operations of Borrower and its Consolidated
Subsidiaries and those of such other Persons described therein as of the respective dates thereof in accordance with GAAP; there are no material omissions from the Prepared Financials or other facts or circumstances existing as of the respective
dates thereof not reflected in the Prepared Financials; and there has been no material and adverse change in such financial condition or operations since the date of the latest initial Prepared Financials delivered to DLL hereunder on or prior to
the Closing Date. 

5.14 ERISA.  None of Borrower, any of its Subsidiaries, any ERISA Affiliate, or any Plan is or has been in violation of any of the provisions of
ERISA, any of the qualification requirements of IRC Section 401(a) or any of the published interpretations thereunder, nor has Borrower or any Subsidiary of Borrower or any ERISA Affiliate received any notice to such effect. No notice of intent to
terminate a Plan has been filed under Section 4041 of ERISA, nor has any Plan been terminated under ERISA. The PBGC has not instituted proceedings to terminate, or appointed a trustee to administer, a Plan. No lien upon the assets of Borrower or any
Subsidiary of Borrower has arisen with respect to a Plan. No prohibited transaction or Reportable Event has occurred with respect to a Plan. Neither Borrower nor any of its Subsidiaries nor any ERISA Affiliate has incurred any withdrawal liability
with respect to any Multiemployer Plan. Borrower and each of its Subsidiaries and each ERISA Affiliate have made all contributions required to be made by them to any Plan or Multiemployer Plan when due. There is no accumulated funding deficiency in
any Plan, whether or not waived. 

5.15 Taxes. Borrower and its Subsidiaries have filed all material tax returns and such other reports as each is required by law to file and has paid
or made adequate provision for the payment on or prior to the date when due of all taxes, assessments and similar charges that are due and payable except to the extent such obligation is being contested by Borrower reasonably and in good faith
through proper proceedings (but only so long as appropriate
reserves as shall be required in conformity with GAAP have been established in
respect of such contested obligations and the enforcement of any liens that may
arise in favor of the applicable taxing authority or other governmental body
as a result of the Borrower’s failure to pay are effectively stayed pending
the resolution of the applicable contest proceedings). 

5.16 Locations; Federal Tax ID No.
The chief executive office of Borrower and each of its Subsidiaries and the offices
and locations where Borrower and each of its Subsidiaries keeps the Collateral
(or, in the case of any Subsidiary, any of its other assets and property) (except
for Inventory in transit) are at the locations set forth in the Schedule, except
to the extent that such locations may have been changed or established after
notice to DLL in accordance with Section 6.1.4. The federal tax identification
number of Borrower and each Subsidiary of Borrower is as shown in the Schedule.
Notwithstanding anything to the contrary contained in this Agreement, regardless
of whether DLL shall have required Borrower to provide an acceptable landlord,
bailee or warehouseman 

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waiver with respect to any particular
    location where any Collateral is located for the purposes of Section 4.1(j)
    or the first sentence of Section 6.1.11, no Collateral that is located at
    any location which is not owned by Borrower and with respect to which Borrower
    has not provided to DLL an acceptable landlord, bailee or warehouseman waiver
    shall be considered Eligible Inventory for any purposes under this Agreement
    unless DLL, acting in its Permitted Discretion, shall have agreed otherwise
    in writing and, if DLL shall so elect in its Permitted Discretion, an appropriate
    Loan Reserve shall have been established by DLL against the Revolving Credit
    Borrowing Base Amount for the rent and/or other obligations that will from
    time to time be owing to the applicable landlord, bailee or warehouseman
    with respect to such location. 

 5.17 Business
      Relationships. There exists no actual
      or threatened termination, cancellation or limitation of, or any modification
      or change in, the business relationship between Borrower or any Subsidiary
      of Borrower and any customer or any group of customers whose purchases
      individually or in the aggregate are material to the business of Borrower
      or such Subsidiary, or with any material supplier, and there exists no
      present condition or state of facts or circumstances which would materially
      and adversely affect Borrower or such Subsidiary or prevent Borrower or
      such Subsidiary from conducting such business after the consummation of
      the transactions contemplated by this Agreement in substantially the same
      manner in which it has heretofore been conducted. 

 5.18 Margin
      Stock. As of the Closing Date, neither
      Borrower nor any of its Subsidiaries owns any margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System), and none of the Indebtedness of Borrower or any of its Subsidiaries in existence on the Closing Date, whether such
  Indebtedness is being paid off with the proceeds of the initial Loans being made hereunder or is permitted to remain outstanding under the provisions of Section 6.2.11, was incurred for the purpose of purchasing or carrying any such margin stock.
      

5.19 Reaffirmations. Each request for a loan made by Borrower pursuant to this Agreement shall constitute (i) an automatic representation and warranty
by Borrower to DLL that there does not then exist (nor will there result from such advance or issuance or from the application of any proceeds thereof) any Event of Default or event which, with notice or the passage of time or both, would constitute
an Event of Default, (ii) a reaffirmation as of the date of said request (or, if such representation expressly related to an earlier date, as of such earlier date) that all of the representations and warranties of Borrower contained in this
Agreement and the other Loan Documents are accurate in all material respects; and (iii) a representation and warranty that all of the conditions precedent to such advance specified in Section 4.2 above have been satisfied as of such date.

6. COVENANTS. 

6.1 Affirmative Covenants. Borrower covenants that, so long as any Obligation remains outstanding and this Agreement is in effect, it shall and shall
cause it of its Subsidiaries to: 

          6.1.1 Taxes. File all tax returns and pay or make adequate provision for the payment of all taxes, assessments and other
charges on or prior to the date when due except to the extent such obligation is being contested by Borrower reasonably and in good faith through proper proceedings (but only so long as appropriate reserves as shall be required in conformity with
GAAP have been established in respect of such contested obligations and the enforcement of any liens that may arise in favor of the applicable taxing authority or other governmental body as a result of the Borrower’s failure to pay are
effectively stayed pending the resolution of the applicable contest proceedings). 

          6.1.2 Notice of Litigation. Promptly notify DLL in writing of any litigation, suit or administrative proceeding which
may materially and adversely affect the Collateral or Borrower's or any Subsidiary’s business, assets, operations, prospects or condition, financial or otherwise, whether or not the claim is covered by insurance. 

          6.1.3 ERISA.  Notify DLL in writing (i) promptly upon the occurrence of any event described in Paragraph 4043 of ERISA,
other than a termination, partial termination or merger of a Plan or a transfer of a Plan's assets and (ii) prior to any termination, partial termination or merger of a Plan or a transfer of a Plan's assets. 

          6.1.4 Change in Location.  Notify DLL in writing forty-five (45) days prior to any change in the location of Borrower's
or any Subsidiary’s chief executive office or any change in the location of any Collateral (or any other assets or property of any Subsidiary) to a location not previously disclosed to DLL on the Schedule or pursuant to this Section 6.1.4, or
Borrower's or any Subsidiary’s opening or closing of any other place of business. 

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          6.1.5 Corporate
      Existence. Maintain its corporate
      existence and good standing in its jurisdiction of organization and its
      qualification to do business and good standing in all other states necessary
      for the conduct of its business (except to the extent any such failure
      to be so qualified and/or in good standing in any state other than its
      jurisdiction of incorporation would not have a Material Adverse Effect)
      and the ownership of its property and maintain adequate assets and Trademarks,
      Copyrights, Licenses and Patents for the conduct of its business (except
      to the extent any such failure to maintain ownership and adequate assets
      and Trademarks, Copyrights, Licenses and Patents would not have a Material
Adverse Effect). 

           6.1.6 Labor
      Disputes. Promptly notify DLL in writing
      of any material labor dispute to which Borrower or any Subsidiary of Borrower
      is or may become subject and the expiration of any labor contract to which
      Borrower or any Subsidiary of Borrower is a party or bound. 

           6.1.7 Violations
      of Law. Promptly notify DLL in writing
      of any violation of any law, statute, regulation or ordinance of any governmental
      entity, or of any agency thereof, applicable to Borrower or any Subsidiary
      of Borrower which may materially and adversely affect the Collateral or
      Borrower's or such Subsidiary’s business, assets, prospects, operations
      or condition, financial or otherwise. 

           6.1.8 Defaults.
    Notify DLL in writing within five (5) Business Days of the occurrence of
    Borrower's or any Subsidiary’s default under any Indebtedness, note,
    indenture, loan agreement, mortgage, lease or other similar agreement to
    which Borrower or any Subsidiary of Borrower is a party or by which Borrower
    or any Subsidiary of Borrower is bound, if any such case the result of such
    default, and/or any termination or acceleration of such Indebtedness, note, indenture, loan agreement, mortgage, lease or other similar agreement occurring or permitted to occur as a result of such default, would have a Material Adverse Effect,. Without
  limiting the generality of the foregoing and for the avoidance of doubt, Borrower shall so notify DLL of the occurrence of any Event of Default under this Agreement or any event which, which notice or the passage of time or both would constitute an
  Event of Default under this Agreement. 

          6.1.9 Capital Expenditures. Promptly notify DLL in writing of the making of any Capital Expenditure materially affecting
Borrower's or any Subsidiary’s business, assets, prospects, operations or condition, financial or otherwise. 

          6.1.10 Books and Records. Keep records and books of account with respect to its business activities in which proper
entries are made in accordance with GAAP, reflecting all of its financial transactions. 

          6.1.11 Leases; Warehouse Agreements. Both (i) provide DLL with copies of all agreements between Borrower or any
Subsidiary of Borrower and any landlord, bailee or warehouseman which owns any premises at which any Collateral may, from time to time, be located, and (ii) subject to the provisions of the Post-Closing Conditions section of the Schedule with
respect to the locations of Borrower in existence as of the Closing Date, use its commercially reasonable best efforts to provide landlord, bailee, warehouseman and mortgagee waivers in form acceptable to DLL with respect to all locations where any
Collateral is hereafter located to the extent requested by DLL. 

          6.1.12 Additional Documents.  At DLL's request, promptly execute or cause to be executed and delivered to DLL any and
all documents, instruments or agreements reasonably deemed necessary by DLL to give effect to or carry out the terms or intent of this Agreement or any of the other Loan Documents with respect to the Obligations or the Collateral, including all such
all documents, instruments or agreements reasonably deemed necessary establish, create, preserve, protect and perfect a first priority Lien (subject only to Permitted Encumbrances) in favor of DLL on the Collateral (including Collateral acquired
after the date hereof). Without limiting the generality of the foregoing, if any of the Receivables with a face value in excess of the amount set forth in the Schedule arises out of a contract with the United States of America or any department,
agency, subdivision or instrumentality thereof, Borrower shall promptly notify DLL of such fact in writing and shall execute any instruments and take any other action required or requested by DLL to comply with the provisions of the Federal Assignment of Claims Act. 

          6.1.13 Financial Covenants. Comply with the financial covenants set forth in the Schedule. 

          6.1.14 Issuing of Credit Memoranda. Borrower shall issue credit memoranda in the ordinary course of its business no
later than the number of Business Days referenced in the Schedule after: (i) Borrower's receipt of returned goods or merchandise; or (ii) any Account Debtor shall become entitled to a credit from Borrower under any other circumstances. 

          6.1.15 Other Covenants.  Borrower shall and shall cause its Subsidiaries (as and if applicable) to 

  - 21 -

comply with any other covenants set
forth in the Schedule at Section 6.1.15 of the Schedule. 

 6.2 Negative
      Covenants. Without DLL's prior written
      consent, which consent DLL may withhold in its Permitted Discretion, so
      long as any Obligation remains outstanding and this Agreement is in effect,
      Borrower shall not and shall not permit any of its Subsidiaries to:

           6.2.1 Mergers,
      Consolidations, Fundamental Changes of Business.
      Merge, reorganize, consolidate or amalgamate with or acquire any other
      Person (except that any Borrower entity may merge into any other Borrower
      entity), or wind up its affairs or dissolve itself; or acquire by purchase,
      lease or otherwise all of substantially all or any material part of the
      assets or capital stock or other equity interests of any Person or any
      business or division of any Person; or make any other material change in
      its capital structure or in its business or operations which might adversely
      affect the repayment of the Obligations. Without contradicting or limiting
      the generality of the foregoing, Borrower shall not and shall not permit
      any Subsidiary to sell, transfer, lease or otherwise dispose of any of
      its property or assets, except for (i) the sale of Inventory of Borrower
      and its Subsidiaries in the ordinary course of business or (ii) sales of
      equipment or other assets or property (excluding any and all Inventory
      of Borrower and any Subsidiary of Borrower and Receivables of Borrower
      and any Subsidiary of Borrower) that is obsolete, worn-out or no longer
      useful in the conduct of Borrower’s or such Subsidiary’s business
      so long as (x) any such sale or disposition of obsolete, worn-out or no
      longer useful assets shall be made for fair market value and (y) Borrower
      shall give at least five (5) days prior written notice to DLL of each and
      any such proposed sale or disposition if, after giving effect thereto,
      the aggregate fair market value of all such Property disposed of in any
      fiscal year of Borrower and its Subsidiaries (taken as a whole) pursuant
      to this clause (y) will exceed $50,000 (even if such a notice has already been given with respect to one or more prior transactions in such fiscal year). 

          6.2.2 Loans.  Make advances, loans or extensions of credit to, or invest in, any Person except as set forth in the
Schedule. 

          6.2.3 Dividends.  Declare or pay cash dividends or distributions upon any of its stock or other equity interests, except
as permitted on the Schedule, or distribute any of its property or redeem, retire, purchase or acquire directly or indirectly any of its stock or other equity interests. 

          6.2.4 [RESERVED].  .

          6.2.5 Indebtedness of Others.  Become directly or contingently liable for the Indebtedness of any Person (other than for
any Indebtedness of another Borrower that is permitted to be outstanding under Section 6.2.11 below), except by endorsement of instruments for deposit; and except for the existing guarantees made by Borrower or any Subsidiary of Borrower prior to
the date hereof, if any, which are set forth in the Schedule. 

          6.2.6 Repurchase.  Make a sale to any customer on a bill-and-hold, guaranteed sale, sale and return, sale on approval,
consignment, or any other repurchase or return basis. 

          6.2.7 Name. Use any corporate or fictitious name other than its corporate name as set forth in its Articles or
Certificate of Incorporation on the date hereof or as set forth in the Schedule; or change its legal name or jurisdiction of organization, or become organized in any additional jurisdiction, or change the nature of its entity organization (e.g.,
change from a corporation to a limited liability company), whether by merger, conversion under state law or otherwise, without giving at least thirty (30) days prior written notice of any such change to DLL. 

          6.2.8 Payment of Subordinated Debt. Make any payment (whether of principal or interest or any other fee or obligations
of any kind) under and/or in respect of any Subordinated Debt (specifically including the Existing Affiliated Subordinated Debt) except to the extent that such payment is expressly permitted to be make pursuant to the Subordination Agreement
governing such Subordinated Debt. 

          6.2.9 Compensation. Pay total compensation (considering Borrower and its Subsidiaries taken together as a whole)
(exclusive of any cash dividends or distributions permitted under Section 6.2.3, if any), including
salaries, withdrawals, fees, bonuses, commissions, drawing accounts and other
payments, whether directly or indirectly, in money or otherwise, during any fiscal
year to all of Borrower's and its Subsidiary’s
executives, officers and directors (or any relative thereof) in an amount in
excess of the amount set forth in the Schedule. 

          6.2.10 Capital Expenditure. Make or incur any Capital Expenditure if, after giving effect thereto, the aggregate amount
of all Capital Expenditures by Borrower and its Subsidiaries (taken together as a whole) in any fiscal year would exceed the amount set forth in the Schedule. 

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          6.2.11 Indebtedness.
    Create, incur, assume or permit to exist any Indebtedness, other than (i)
    the Obligations, (ii) trade payables and other contractual obligations to
    suppliers and customers incurred in the ordinary course of business, (iii)
    other Indebtedness existing on the date of this Agreement and reflected in
    the latest initial Prepared Financials delivered to DLL hereunder on or prior
    to the Closing Date (except Indebtedness paid on the date of this Agreement
    from proceeds of the initial advances hereunder); (iv) purchase money indebtedness
    incurred in connection with Capital Expenditures, including Capital Leases,
    not in excess of the amount set forth in the Schedule (v) Subordinated Debt
    (specifically including the Existing Affiliated Subordinated Debt); and (vi)
any other Indebtedness specifically permitted in the Schedule. 

           6.2.12 Affiliate
      Transactions. Except as set forth
      below or on the Schedule, or as permitted under Sections 6.2.2, 6.2.3 and
      6.2.9, sell, transfer, distribute or pay any money or property to any Affiliate,
      or invest in (by capital contribution or otherwise) or purchase or repurchase
      any stock or Indebtedness, or any property, of any Affiliate, or become
      liable on any guaranty of the indebtedness, dividends or other obligations
      of any Affiliate. Notwithstanding the foregoing, if no Event of Default
      has occurred, Borrower and its Subsidiaries may engage in transactions
      with Affiliates in the ordinary course of business, in amounts and upon
      terms which are fully disclosed to DLL and which are no less favorable
      to Borrower or to such Subsidiary than would be obtainable in a comparable
      arm's length transaction with a Person who is not an Affiliate.

           6.2.13 Nature
      of Business. Enter into any new business
      (other than any business or business line reasonably related to the business(es)
      and business line(s) engaged in by Borrower as of the Closing Date) or
      make any material change in any of Borrower's or any Subsidiary’s
      business objectives, purposes or operations inconsistent with this Section. 

          6.2.14 DLL's Name. Use the name of DLL in connection with any of Borrower's or any Subsidiary’s business or
  activities, except in connection with internal business matters or as required in dealings with governmental agencies and financial institutions or with trade creditors of Borrower or any Subsidiary of Borrower, solely for credit reference purposes.

          6.2.15 Permitted Uses of Proceeds of Loans; Margin Security. Use the proceeds of any Floorplan Loan for any purpose
other than the purchase and/or financing of Floorplan Inventory to be sold to Borrower’s customers (or, in the case of any Refinancing Floorplan Loan, the refinancing and/or payoff of similar “floorplan” loans made to Borrower by its
prior lender(s) to fund the purchase and/or finance of Inventory) or use the proceeds any Revolving Credit Loan for any purpose other than Borrower’s general corporate purposes consistent with past practices and, if applicable, the refinancing
and/or payoff of prior Indebtedness in existence on the Closing Date required to be refinanced and/or paid off pursuant to Section 4.1 of the Agreement. Without limiting the generality of the foregoing, Borrower shall not and shall not permit any
Subsidiary of Borrower to engage (and has not in the past) engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U
issued by the Board of Governors of the Federal Reserve System); use any proceeds of any Loan or other advance to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock, or in any
manner which might cause such Loan or other advance or the application of such proceeds to violate (or require any regulatory filing under) Regulation T, Regulation U, Regulation X or any other regulation of the Board of Governors of the Federal
Reserve System, in each case as in effect on the date or dates of such Loan or other advance and such use of proceeds; or use any proceeds of any Loan or other advance to acquire any security of a class which is registered pursuant to Section 12 of
the Securities Exchange Act of 1934. 

          6.2.16 Real Property.  Purchase or acquire any real property without DLL’s prior written consent (which consent
shall not be unreasonably conditioned, withheld or delayed), a condition of which consent shall include delivery of appropriate title and environmental reports and analysis, in form and substance satisfactory to DLL and its counsel. 

          6.2.17 Liens. Create, incur, assume or suffer to exist any lien upon any of its Property, whether now owned or hereafter acquired, except Permitted Encumbrances. 

          6.2.18 Change in Fiscal Year; Auditors. Change the commencement or ending date of the fiscal year of Borrower and its
Consolidated Subsidiaries or retain the independent public auditors for purposes of preparing the Borrower’s and its Consolidated Subsidiaries’ audited financial statements which are different than those retained by Borrower and its
Consolidated Subsidiaries at the time of the Closing Date, in each case, without providing at least thirty (30) days prior written notice to DLL.

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          6.2.19 Issuance
      of Stock. Except as permitted in the
      Schedule, issue or permit any subsidiary to issue any capital stock after
the Closing Date without the prior written approval of DLL.

 7. DEFAULT
        AND REMEDIES. 

 7.1 Events
      of Default. Any one or more of the
      following events shall constitute an Event of Default under this Agreement:

 (a) Borrower fails to pay when due
    and payable any portion of the Obligations, whether at stated maturity, upon
    acceleration or otherwise;

 (b) Borrower or any other Loan Party
    fails or neglects to perform, keep, or observe in any respect (i) any term,
    provision, condition, covenant or agreement contained in Section 6.1.13 (subject
    to any express cure provisions provided for in Section 6.1.13 as set forth
    here and/or as supplemented in the Schedule) or any of the subsections/provisions
    of Section 6.2 or (ii) any other any term, provision, condition, covenant
    or agreement contained in this Agreement or any other Loan Document to which
    Borrower or such other Loan Party is a party, and such failure or neglect
    shall continue unremedied for more than ten (10) days;

 (c) Any material adverse change occurs
    in the business, assets, operations, prospects or condition, financial or
    otherwise, of Borrower entities taken as a whole;

 (d) The prospect of repayment of
    any portion of the Obligations or the value or priority of DLL's security
    interest in the Collateral is materially impaired;

 (e) Any portion of Borrower's or
    any Subsidiary’s assets is seized, attached, subjected to a writ or
    distress warrant, is levied upon or comes into the possession of any judicial
    officer unless such action is stayed and such attachment is dismissed within
    thirty (30) days;

(f) Borrower or any Subsidiary of Borrower shall generally not pay its debts as they become due or shall enter into any agreement (whether written or oral), or offer to enter into any agreement, with all or a significant
  number of its creditors regarding any moratorium or other indulgence with respect to its debts or the participation of such creditors or their representatives in the supervision, management or control of the business of Borrower or of  such
  Subsidiary or make a general assignment in favor of its creditors; 

(g) Any bankruptcy or other insolvency proceeding is commenced by Borrower or any Subsidiary of Borrower, or any such proceeding is commenced against Borrower or any Subsidiary of Borrower and remains undischarged or
unstayed for sixty (60) days (or an order for relief is entered in any such proceeding commenced against Borrower or such Subsidiary); 

(h) Any notice of lien (other than with respect to a Permitted Encumbrance provided that, if such lien ceases at any time to be a Permitted Encumbrance, the provisions of this paragraph shall apply to such lien and any
notice filed with respect thereto) or levy or is filed of record with respect to any of Borrower’s or any Subsidiary’s assets;

(i) Any judgments are entered against Borrower or any Subsidiary of Borrower in an aggregate amount exceeding the amount set forth in the Schedule unless each such judgment is stayed and such each such judgment is dismissed
or satisfied within thirty (30) days;

(j) Any default (after giving effect to any applicable notice and cure periods), including without limitation in the case of either clause (i) or (ii), any default which would result in a right by any third party to
accelerate the maturity of any such Indebtedness of Borrower or such Subsidiary of Borrower to such third party, shall occur under (i) any Indebtedness between Borrower or any Subsidiary of Borrower if the acceleration and/or exercise of remedies by
the applicable creditor with respect to such Indebtedness would result in a Material Adverse Effect; (ii) any Subordinated Debt or (iii) any other agreement to which Borrower or any Subsidiary is a party or by which its property is bound if the
termination and/or exercise of remedies under which would result in a Material Adverse Effect,;

(k) Any representation or warranty made or deemed to be made by Borrower, any Subsidiary of Borrower, any Affiliate of Borrower or any Subsidiary of Borrower or any other Loan Party in any Loan Document or any other
statement, document or report made or delivered to DLL in connection therewith shall prove to have been misleading in any material respect when made;

(l) Any Prohibited Transaction or Reportable Event shall occur with respect to a Plan which would have a material adverse effect on the financial condition of Borrower or any Subsidiary of Borrower; any lien upon the assets
of Borrower or any Subsidiary of Borrower in connection with any Plan shall arise; Borrower or any of its Subsidiaries or any of their ERISA 

  - 24 -

Affiliates shall fail to make full
    payment when due of all amounts which Borrower or such Subsidiary or any
    of their ERISA Affiliates may be required to pay to any Plan or any Multiemployer
    Plan as one or more contributions thereto; Borrower or any Subsidiary of
    Borrower or any of their ERISA Affiliates creates or permits the creation
of any accumulated funding deficiency, whether or not waived; or

 (m) If any of the Loans are guaranteed:
    (i) any Guarantor revokes, terminates or attempts to revoke or terminate
    its Guaranty or any security therefor, or becomes subject to any bankruptcy
    or other insolvency proceeding; (ii) any Guarantor other than an individual
    Guarantor, is dissolved, liquidated, merged, reorganized or terminated; or
    (iii) any individual Guarantor dies or becomes disabled; or

 (n) Any transfer of the issued and
    outstanding shares of common stock or other equity interests of Borrower
    or other change in ownership or management of Borrower in violation of Change
    of Control restrictions forth in the Schedule or if Borrower shall fail to
    own all of the equity interests of each of its Subsidiaries 

           NOTWITHSTANDING
    ANYTHING TO THE CONTRARY HEREIN, DLL RESERVES THE RIGHT TO CEASE MAKING ANY
    ADVANCES OR LOANS IF AN EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING. 

 7.2 Remedies.
    Upon the occurrence of an Event of Default, DLL may, at its option and in
    its Permitted Discretion and in addition to all of its other rights under
    the Loan Documents, terminate this Agreement and declare all of the Obligations
    to be immediately payable in full. DLL shall also have all of its rights
    and remedies under applicable law, including, without limitation, the default
    rights and remedies of a secured party under the Code, and upon the occurrence
    of an Event of Default Borrower hereby consents to the appointment of a receiver
    by DLL in any action initiated by DLL pursuant to this Agreement and to the
    jurisdiction and venue set forth in Section 9.26, and Borrower waives notice
    and posting of a bond in connection therewith. Further, DLL may, at any time,
    take possession of the Collateral and keep it on Borrower's
    premises, at no cost to DLL, or remove any part of it to such other place(s)
    as DLL may desire, or Borrower shall, upon DLL's demand, at Borrower's sole
    cost, assemble the Collateral and make it available to DLL at a place reasonably
    convenient to DLL. DLL may sell and deliver any Collateral at public or private
    sales, for cash, upon credit or otherwise, at such prices and upon such terms
    as DLL deems advisable, at DLL's discretion, and may, if DLL deems it reasonable,
    postpone or adjourn any sale of the Collateral by an announcement at the
    time and place of sale or of such postponed or adjourned sale without giving
    a new notice of sale. Borrower agrees that DLL has no obligation to preserve
    rights to the Collateral or marshal any Collateral for the benefit of any
    Person. DLL is hereby granted a non-exclusive license or other right to use,
    without charge, Borrower's Trademarks, Copyrights, Licenses and Patents or
    any similar property, in completing production, advertising or selling any
    Collateral and Borrower's rights under all licenses and all franchise agreements
    shall inure to DLL's benefit. Any requirement of reasonable notice shall
    be met if such notice is mailed postage prepaid to Borrower at its address
    set forth in the heading to this Agreement at least ten (10) days before
    sale or other disposition. The proceeds of sale shall be applied, first,
    to all attorneys fees and other expenses of sale, and second, to the Obligations
    in such order as DLL shall elect, in its sole discretion. DLL shall return
    any excess to Borrower and Borrower shall remain liable for any deficiency
    to the fullest extent permitted by law. DLL shall also have the right to
    reduce the Total Facility amount, the Revolving Credit Borrowing Base Amount,
    the Floorplan Borrowing Base Amount, or any portion of either borrowing base,
    or the advance rates or to modify the terms and conditions upon which DLL
    is willing to consider making advances under the Total Facility or to take
    additional reserves against the Revolving Credit Borrowing Base Amount or
    the Floorplan Borrowing Base Amount for any reason. 

7.3 Standards for Determining Commercial Reasonableness.  Borrower and DLL agree that the following conduct by DLL with respect to any disposition of
Collateral shall conclusively be deemed commercially reasonable (but other conduct by DLL, including, but not limited to, DLL's use in its sole discretion of other or different times, places and manners of noticing and conducting any disposition of
Collateral shall not be deemed unreasonable): Any public or private disposition: (i) as to which on no later than the tenth calendar day prior thereto written notice thereof is mailed or personally delivered to Borrower and, with respect to any
public disposition, on no later than the tenth calendar day prior thereto notice thereof describing in general non-specific terms, the Collateral to be disposed of is published once in a newspaper of general circulation in the county where the sale is to be conducted; (provided that no notice of any public or private disposition need be given to the Borrower if the
Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market); (ii) which commences at any time between 8:00 a.m. and 5:00 p.m. Without limiting the generality of the foregoing, Borrower
expressly agrees that, with respect to any disposition of accounts, Receivables, Instruments and General Intangibles, it shall be commercially reasonable for DLL to direct any 

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prospective purchaser thereof to ascertain
    directly from Borrower any and all information concerning the same, including,
    but not limited to, the terms of payment, aging and delinquency, if any,
    the financial condition of any obligor or Account Debtor thereon or guarantor
thereof, and any collateral therefor. 

 8. EXPENSES
        AND INDEMNITIES. 

 8.1 Expenses.

 (a) Borrower covenants that, so long
    as any Obligation remains outstanding and/or this Agreement remains in effect,
    it shall promptly reimburse DLL for all reasonable and documented costs,
    fees and expenses incurred by DLL in connection with the negotiation, preparation,
    execution, delivery, administration and enforcement of each of the Loan Documents,
    including, but not limited to, the attorneys' and paralegals' fees of outside
    counsel, expert witness fees, lien, title search and insurance fees, appraisal
    fees, all charges and expenses reasonably incurred in connection with any
    and all environmental reports and environmental remediation activities, and
    all other costs, expenses, taxes and filing or recording fees payable in
    connection with the transactions contemplated by this Agreement, including
    without limitation all such reasonable and documented costs, fees and expenses
    as DLL shall incur or for which DLL shall become obligated (subject to any
    restrictions otherwise set forth in the Loan Documents with respect to DLL’s
    liability for any such particular costs, fees and expenses) in connection
    with (i) any inspection, audit or verification of the Collateral, (ii) any
    proceeding relating to the Loan Documents or the Collateral, (iii) actions
    taken with respect to the Collateral and DLL's security interest therein,
    including, without limitation, the defense or prosecution of any action involving
    DLL and Borrower or any third party, (iv) enforcement of any of DLL's rights
    and remedies with respect to the Obligations or Collateral, and (v) consultation
    with DLL's attorneys and participation in any workout, bankruptcy or other
    insolvency or other proceeding involving any Loan Party or any Affiliate,
    whether or not suit is filed. Borrower shall also pay all DLL charges in
    connection with bank wire or electronic funds transfers, forwarding of loan
    proceeds, deposits of checks and other items
    of payment, returned checks, establishment and maintenance of lockboxes and
    other Blocked Accounts, and all other bank and administrative matters, in
    accordance with DLL's schedule of bank and administrative fees and charges
    in effect from time to time. All costs, fees, expense, charges and other
    obligations payable by Borrower under this Section 8.1(a) shall be due and
    payable on demand, and Borrower’s covenants and obligations
  under this Section 8.1(a) shall survive the termination of this Agreement.

 (b) Borrower hereby agrees to indemnify DLL and its directors, officers, employees, attorneys and agents from, and hold each of them harmless against, any and all losses, liabilities, claims, damages or expenses
incurred by any of them arising out of or relating to relating to this Agreement or the other Loan Documents, the Total Facility, the Loans hereunder or any actual or proposed use by Borrower of the proceeds of any of the Loans hereunder, including
any investigation or litigation or other proceedings (including any threatened investigation or litigation or other proceedings) relating to any of the foregoing, including, without limitation, the reasonable and documented fees and disbursements of
counsel incurred in connection with any such investigation or litigation or other proceedings (but excluding any such losses, liabilities, claims, damages or expenses incurred by reason of the gross negligence or willful misconduct of the Person to
be indemnified). DLL agrees to give the Borrower notice of any such investigations, litigation or other proceedings, within a reasonable time after Lender’s actual discovery of the same; provided that DLL’s failure to provide such notice
shall not affect Borrower’s obligations under this paragraph.  All indemnification obligations of Borrower under this Section 8.1(b) shall be payable on demand, and Borrower’s covenants and obligations under this Section 8.1(b) shall
survive the termination of this Agreement. 

8.2 Environmental Matters. 

          8.2.1 Definitions. The following definitions apply to the provisions of this Section 8.2: (a) the term
“Applicable Law” shall include, but shall not be limited to, all local, state and/or federal laws, rules, regulations or ordinances, whether currently in
existence or hereafter enacted, which govern, to the extent applicable to the Property or to Borrower, (i) the existence, cleanup and/or remedy of contamination on real property; (ii) the protection of the environment from soil, air or water
pollution, or from spilled, deposited or otherwise
emplaced contamination; (iii) the emission or discharge of hazardous substances
into the environment; (iv) the control of hazardous wastes; or (v) the use, generation,
transport, treatment, removal or recovery of Hazardous Substances, and shall
include without limitation including, the Comprehensive Environmental Response,
Compensation and Liability Act (“CERCLA”), 42 USC §§ 9601 et seq.;
the Resource Conservation and Recovery Act (“RCRA”), 42 USC §§ 6901 et seq.; the Hazardous Materials
Transportation Act, 49 USC §§ 1801 et seq.; 

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and the Federal Water Pollution Control
    Act, 33 USC §§ 1251 et seq; (b) the term “Hazardous
    Substance” shall mean (i) any
    oil, flammable substance, explosives, radioactive materials, hazardous wastes
    or substances, toxic wastes or substances or any other wastes, materials
    or pollutants which either pose a hazard to the Property or to persons on
    or about the Property or cause the Property to be in violation of any Applicable
    Law; (ii) asbestos in any form which is or could become friable, urea formaldehyde
    foam insulation, transformers or other equipment which contain dielectric
    fluid containing levels of polychlorinated biphenyls, or radon gas; (iii)
    any chemical, material or substance defined as or included in the definition
    of “hazardous substances,” “waste,” “hazardous wastes,” “hazardous
    materials,” “extremely hazardous waste,” “restricted
    hazardous waste,” or “toxic substances” or words of similar
    import under any Applicable Law.; (iv) any other chemical, material or substance,
    exposure to which is prohibited, limited or regulated by any governmental
    authority which may or could pose a hazard to the health or safety of the
    occupants of the Property or the owners and/or occupants of property adjacent
    to or surrounding the Property, or any other person coming upon the Property
    or adjacent property; and (v) any other chemical, materials or substance
    which may or could pose a hazard to the environment; and (c) the term “Property” shall
    mean all real property, wherever located, in which Borrower or any Affiliate
    of Borrower has any right, title or interest, whether now existing or hereafter
arising, and including, without limitation, as owner, lessor or lessee. 

          8.2.2 Covenants
      and Representations.

 (a) Borrower represents and warrants
    that there have not been during the period of Borrower's possession of any
    interest in the Property and, to the best of its knowledge after reasonable
    inquiry, there have not been at any other times, any activities by Borrower
    or any other Person for which Borrower could reasonably expected to be responsible
    under Applicable Law on the Property involving, directly or indirectly, the
    use, generation, treatment, storage or disposal of any Hazardous Substances,
    except in compliance in all material respects with Applicable Law, either
    (i) under, on or in the land included in the Property, whether contained
    in soil, tanks, sumps, ponds, lagoons, barrels, cans or other containments, structures or equipment, (ii) incorporated in the buildings, structures or improvements included in the Property, including any building material containing
  asbestos, or (iii) used in connection with any operations of Borrower or its Affiliates on or in the Property. 

(b) Without limiting the generality of the foregoing and to the extent not included within the scope of this Section 8.2.2, Borrower represents and warrants that it is in compliance in all material respects with Applicable
Law and has received no notice from any person or any governmental agency or other entity of any violation by Borrower or its Affiliates of any Applicable Law which could reasonably be expected to result in a liability or remediation or clean-up
costs in excess of $250,000. 

(c) Borrower shall be solely responsible for and agrees to indemnify DLL, protect and defend DLL with counsel reasonably acceptable to DLL, and hold DLL harmless from and against any claims, actions, administrative
proceedings, judgments, damages, punitive damages, penalties, fines, costs, liabilities (including sums paid in settlements of claims), interest or losses, reasonable attorneys' fees (including any fees and expenses incurred in enforcing this
indemnity), consultant fees, expert fees, and other out-of-pocket costs or expenses actually incurred by DLL (collectively, the “Environmental Costs”), that
may, at any time or from time to time, arise directly or indirectly from or in connection with: (i) the presence, suspected presence, disposal, release or suspected release of any Hazardous Substance whether into the air, soil, surface water or
groundwater of or at the Property, or any other violation of Applicable Law, or (ii) any breach of the foregoing representations and covenants; except to the extent any of the foregoing result from the actions of DLL, its employees, agents and
representatives. All Environmental Costs incurred or advanced by DLL if incurred by DLL in good faith shall constitute Obligations hereunder. 

9. MISCELLANEOUS. 

9.1 Examination of Records; Financial Reporting. 

(a) Examinations. DLL, and any agents or auditors retained by DLL, shall at all reasonable times and upon reasonable prior notice (except that no such
notice shall be required after the occurrence and during the continuance of an Event of Default) have full access to and the right to examine, audit, make abstracts and copies from and inspect Borrower's records, files, books of account and all
other documents, instruments and agreements
relating to the Collateral and full access to Borrower’s business locations and the right to examine, audit, inspect check, test and appraise the Collateral. Borrower shall deliver to DLL any instrument
necessary for DLL to obtain records from any service bureau maintaining records for Borrower. All instruments and certificates prepared by Borrower showing the value of any of the Collateral shall be accompanied, upon DLL's request, by copies of
related purchase orders and invoices. DLL may, at any time after 

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the occurrence and during the continuance
    of an Event of Default, remove from Borrower's premises Borrower's books
    and records (or copies thereof) or require Borrower to deliver such books
    and records or copies to DLL. If originals are removed, DLL shall permit
    Borrower to make copies prior to such removal. Subject to any limitations
    on Borrower’s liability for Examination Fees set forth on the Schedule,
    DLL may, without expense to DLL, use Borrower's personnel, supplies and premises
    as may be reasonably necessary for auditing or examining the Collateral or
for maintaining or enforcing DLL's security interest. 

 (b) Reporting
      Requirements. Borrower shall furnish
      DLL, upon reasonably request, such information and statements as DLL shall
      request from time to time regarding Borrower's business affairs, financial
      condition and the results of its operations. Without limiting the generality
      of the foregoing, Borrower shall provide DLL with all information and reports
      required under the Schedule. 

 (c) Guarantor's
      Financial Statements and Tax Returns.
      If any of the Loans are guaranteed, Borrower shall cause each of the Guarantors
      to deliver to DLL such Guarantor's signed annual financial statement (in
      form acceptable to DLL) and a copy of such Guarantor's federal income tax
      return with respect to the corresponding year, in each case on the date
      when such tax return is due or, if earlier, on the date when available.
      Without limiting the generality of the foregoing, in the case of any Guarantor
      that is not an individual, if DLL shall so require, Borrower shall cause
      each of the Guarantors to deliver to DLL such Guarantor's annual audited financial
      statements for such Borrower within ninety (90) days after the end of each
      of such Guarantor’s fiscal years. 

 (d) Confidentiality.
    DLL agrees to maintain the confidentiality of the Information (as defined
    below), except that Information may be disclosed (i) to its affiliates and
    to its and its affiliates’ respective partners, directors, officers,
    employees, agents, advisors and other representatives on a confidential basis,
    (ii) to the extent requested by any regulatory authority purporting to have
    jurisdiction over DLL, (iii) to the extent required by applicable laws or
    regulations or by any subpoena or similar legal process, (iv) in connection
    with the exercise of any remedies hereunder
    or under any other Loan Document or any action or proceeding relating to
    this Agreement or any other Loan Document or the enforcement of rights hereunder
    or thereunder, (v) to any assignee of or participant in, or any prospective
    assignee of or participant in, any of its rights or obligations under this
    Agreement on a confidential basis, (vi) with the consent of Borrower or (vii)
    to the extent such Information (x) becomes publicly available other than
    as a result of a breach of this Section or (y) becomes available to DLL or
    any of its affiliates on a nonconfidential basis from a source other than
    Borrower. For purposes of this Section, “Information” means all
    information received from Borrower relating to Borrower or its business,
    other than any such information that is available to DLL on a nonconfidential
    basis prior to disclosure by Borrower. Any Person required to maintain the
    confidentiality of Information as provided in this Section shall be considered
    to have complied with its obligation to do so if such Person has exercised
    the same degree of care to maintain the confidentiality of such Information
    as such Person would accord to its own confidential information 

9.2 Term; Termination.

(a) Term. The term of this Agreement shall be as set forth in the Schedule (the “Term”), unless earlier terminated as provided herein. 

(b) [RESERVED]. 

(c) Payment in Full.  Upon the effective date of termination, the Obligations shall become immediately due and payable in full in cash. 

(d) Early Termination. Borrower may terminate this Agreement at any time prior to the expiration of the Term but only upon ninety (90) days' prior
written notice and prepayment of the Obligations.

9.3 Certain Waivers. All Obligations shall be payable by Borrower as provided for herein and, in full, at the termination of this Agreement.  Borrower
waives presentment and protest of any instrument and notice thereof, notice of default and, to the extent permitted by applicable law, all other notices to which Borrower might otherwise be entitled. 

9.4 No Waiver by DLL.  Neither DLL's failure to exercise any right, remedy or option under this Agreement, any supplement, the Loan Documents or other
agreement between DLL and Borrower nor any delay by DLL in exercising the same shall operate as a waiver. An Event of Default shall exist or continue or be continuing until such Event of Default is waived in writing by DLL as herein provided. No waiver by DLL shall be effective unless in writing and then only to the extent stated. No waiver by DLL shall affect its right to
otherwise require strict performance of this Agreement either at such time or in the future.  DLL's rights and remedies, whether arising hereunder, under any other Loan Document or otherwise 

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at law or in equity and whether against
    Borrower, any Guarantor (if any) or any other Person liable for the Obligations,
    and/or any of their assets (including the Collateral), or any Subordinating
    Creditor (if any), shall be cumulative and not exclusive, and DLL may exercise,
    or forebear from exercising, any one or more of such rights or remedies against
    any one or more of such Persons or their assets in such order and at such
times as DLL shall determine in the exercise of its sole discretion.

 9.5 Binding
      on Successor and Assigns. All terms,
      conditions, promises, covenants, provisions and warranties hereof and of
      the Loan Documents shall inure to the benefit of and bind DLL's and Borrower's
      respective representatives, successors and assigns. 

 9.6 Severability.
    Any provision of this Agreement that is prohibited or unenforceable in any
    jurisdiction shall, as to such jurisdiction, be ineffective to the extent
    of such prohibition or unenforceability without invalidating the remaining
    provisions hereof, and any such prohibition or unenforceability in any jurisdiction
    shall not invalidate or render unenforceable such provision in any other
    jurisdiction. 

 9.7 Amendments;
      Assignments. This Agreement may not
      be modified, altered or amended, except by an agreement in writing signed
      by Borrower and DLL. Borrower may not sell, assign or transfer any interest
      in this Agreement or any other Loan Document, or any portion thereof, including,
      without limitation, any of Borrower's obligations, rights, title, interests,
      remedies, powers and duties hereunder or thereunder. Borrower hereby consents
      to DLL's participation, sale, assignment, transfer or other disposition,
      at any time or times if an Event of Default has occurred and is continuing,,
      of this Agreement and any of the other Loan Documents, or of any portion
      hereof or thereof, including, without limitation, DLL's rights, title,
      interests, remedies, powers and duties hereunder or thereunder and without
      limiting the generality of Section 9.1(d) above, in connection therewith,
      DLL may disclose all documents and information which DLL now or hereafter
      may have relating to Borrower or Borrower's business. Notwithstanding anything
      to the contrary contained in the foregoing, unless an Event of Default
      has occurred and is continuing, DLL may not participate, sell, assign or
      transfer or otherwise dispose of this Agreement or any of the other Loan
      Documents without Borrower’s prior
      written consent (which such consent shall not be unreasonably conditioned,
      withheld or delayed) and DLL will not make disclosures regarding this Agreement
      and the other Loan Document to any such potential participant, buyer, assignee
      or transferee without Borrower’s prior written consent (which such
      consent will not be unreasonably conditioned, withheld or delayed). To
      the extent that DLL assigns its rights and obligations hereunder to a third
      party, DLL shall thereafter be released from such assigned obligations
      to Borrower and such assignment shall effect a novation between Borrower
      and such third party. 

9.8 Integration.  This Agreement, together with the Schedule (which is a part hereof) and the other Loan Documents, reflect the entire understanding
of the parties with respect to the transactions contemplated hereby. 

9.9 Survival. All of the representations and warranties of Borrower contained in this Agreement shall survive the execution, delivery and acceptance
of this Agreement by the parties.  No termination of this Agreement or of any guaranty of the Obligations shall affect or impair the provisions of Sections 8.1(a) and (b) or Section 9.13 or any other provision hereof or any Loan Documents providing
for the payment by Borrower of DLL’s costs and expenses or indemnification by Borrower of DLL and all such provisions shall survive any such termination. 

9.10 Evidence of Obligations. Each Obligation may, in DLL's Permitted Discretion, be evidenced by notes or other instruments issued or made by
Borrower to DLL. If not so evidenced, such Obligation shall be evidenced solely by entries upon DLL's books and records. 

9.11 Loan Requests. Each oral or written request for a loan by any Person who purports to be any employee, officer or authorized agent of Borrower
shall be made to DLL on or prior to 11:00 a.m., Pennsylvania time, on the Business Day on which the proceeds thereof are requested to be paid to Borrower and shall be conclusively presumed to be made by a Person authorized by Borrower to do so and
the crediting of a loan to Borrower's operating account shall conclusively establish Borrower's obligation to repay such loan. Notwithstanding anything to the contrary contained in this Agreement, the coming due of any payment under this Agreement,
whether for principal (including required payments of principal on Floorplan Loans), interest, fees, costs and expenses of DLL or otherwise, at the sole option of DLL, may be deemed to be an automatic request by Borrower for a Revolving Credit Loan
in an amount equal to such payment due, and DLL, in its sole option, may make such Revolving Credit Loan and use the proceeds of such Revolving Credit Loan to satisfy such payment due regardless of whether the conditions otherwise required by the making of a
Revolving Credit Loan under Section 4.2 have been satisfied and regardless of whether the total outstanding balance of all Revolving Credit Loans (after giving effect 

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to the making of such Revolving Credit
    Loan) would exceed any dollar or percentage limitation otherwise applicable
    to Revolving Credit Loans, including the Revolving Credit Borrowing Base
    Amount, the Revolving Credit Limit or the amount of the Total Facility. Unless
    and until Borrower otherwise directs DLL in writing, all loans shall be wired
to Borrower's operating account set forth on the Schedule. 

 9.12 Notices.
    Any written notice, consent or other communication provided for in this Agreement
    shall be delivered personally (effective upon delivery), via facsimile (effective
    upon confirmation of transmission), via overnight courier (effective upon
    delivery) or via U.S. certified or registered Mail (effective upon delivery)
    to each party at its address(es) and/or facsimile number(s) set forth below
    its signature, or to such other address as either party shall specify to
    the other in writing from time to time. Notwithstanding anything to the contrary
    contained in the foregoing, Borrower and DLL agree that the transaction statement
    for each Floorplan Loan described under Section 2.10(f) above for each such
    Floorplan Loan, may at the option of DLL be delivered by DLL to Borrower
    via electronic transmission or email (effective upon transmission) at such
    addresses for electronic transmission or email as Borrower shall specify
    to DLL from time to time. 

 9.13 Brokerage
      Fees. Borrower represents and warrants
      to DLL that, with respect to the financing transaction herein contemplated,
      no Person is entitled to any brokerage fee or other commission and Borrower
      agrees to indemnify and hold DLL harmless against any and all such claims. 

 9.14 Disclosure.
    No representation or warranty made by Borrower in this Agreement, or in any
    financial statement, report, certificate or any other document furnished
    in connection herewith contains any untrue statement of a material fact or
    omits to state any material fact necessary to make the statements herein
    or therein not misleading.

 9.15 Publicity.
    Upon receipt of Borrower’s prior written consent (which shall not be
    unreasonably conditioned, withheld or delayed), DLL is hereby authorized
    to issue appropriate press releases and to cause a tombstone to be published
    announcing the consummation of this transaction and the aggregate amount
    thereof. 

9.16 Captions.  The Section titles contained in this Agreement are without substantive meaning and are not part of this Agreement. 

9.17 Injunctive Relief. Borrower recognizes that, in the event Borrower fails to perform, observe or discharge any of its Obligations under this
Agreement, any remedy at law may prove to be inadequate relief to DLL.  Therefore, DLL, if it so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages. 

9.18 Counterparts; Facsimile Execution.  This Agreement may be executed in one or more counterparts, each of which taken together shall constitute one
and the same instrument, admissible into evidence. Delivery of an executed counterpart of this Agreement by facsimile or other electronic transmission shall be equally as effective as delivery of a manually executed counterpart of this Agreement.
Any party delivering an executed counterpart of this Agreement by facsimile or other electronic transmission shall also deliver a manually executed counterpart of this Agreement, but the failure to deliver a manually executed counterpart shall not
affect the validity, enforceability, and binding effect of this Agreement. 

9.19 Construction. The parties acknowledge that each party and its counsel have reviewed this Agreement and that the normal rule of construction to
the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. 

9.20 Time of Essence. Time is of the essence for the performance by Borrower of the Obligations set forth in this Agreement. 

9.21 [RESERVED].

9.22 Liability. Neither DLL nor any DLL Affiliate shall be liable for any indirect, special, incidental or consequential damages in connection with
any breach of contract, tort or other wrong relating to this Agreement or the Obligations or the establishment, administration or collection thereof (including without limitation damages for loss of profits, business interruption, or the like),
whether such damages are foreseeable or unforeseeable, even if DLL has been advised of the possibility of such damages. Neither DLL, nor any DLL Affiliate shall be liable for any claims, demands, losses or damages, of any kind whatsoever, made,
claimed, incurred or suffered by the Borrower through the ordinary negligence of DLL, or any
DLL Affiliate. “DLL Affiliate” shall mean DLL’s
directors, officers, employees, agents, attorneys or other person or entity affiliated
with or representing DLL. 

9.23 [RESERVED].

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9.24 Withholding
      and Other Tax Liabilities. DLL shall
      have the right to refuse to make any advances from time to time unless
      Borrower shall, at DLL's request, have given to DLL evidence, reasonably
      satisfactory to DLL, that Borrower has properly deposited or paid, as required
      by law, all withholding taxes and all federal, state, city, county or other
      taxes due up to and including the date of the advance. Until all of Borrower's
      liabilities and obligations to DLL have been paid in full (and notwithstanding
      any termination or expiration of this Agreement), DLL shall be entitled
      to continue to hold any and all of the Collateral until Borrower has given
      to DLL evidence, reasonably satisfactory to DLL, that Borrower has properly
      deposited or paid, as required by law, all federal withholding taxes due
      up to and including the date of such expiration or termination. Copies
      of validated deposit slips showing payment shall likewise constitute satisfactory
      evidence for such purpose. In the event that any lien, assessment or tax
      liability against Borrower shall arise in favor of any taxing authority,
      whether or not notice thereof shall be filed or recorded as may be required
      by law, DLL shall have the right (but shall not be obligated, nor shall
      DLL hereby assume the duty) upon reasonable prior notice to Borrower (which
      notice shall not be required after the occurrence and during the continuance
      of an Event of Default) to pay any such lien, assessment or tax liability
      by virtue of which such charge shall have arisen; provided,
      however, that DLL shall not pay any
      such tax, assessment or lien if the amount, applicability or validity thereof
      is being contested by Borrower reasonably and in good faith through proper
      proceedings (but only so long as appropriate reserves as shall be required
      in conformity with GAAP have been established in respect of such contested
      obligations and the enforcement of such liens are effectively stayed pending
      the resolution of the applicable contest proceedings) and further provided
      that Borrower's title to and its right to use, the Collateral are not materially
      adversely affected and DLL's lien and priority in the Collateral are not
      affected, altered or impaired thereby. In order to pay any such lien, assessment
      or tax liability, DLL shall not be obliged to wait until said lien, assessment
      or tax liability is filed before taking such action permitted hereby. Any
      sum or sums which DLL shall have paid for the discharge of any such lien
      shall constitute an Obligation secured by the Collateral and shall be added
      to the Revolving Loans and shall be paid by Borrower to DLL with interest
      thereon, upon demand, and DLL shall be subrogated to all rights of such
taxing authority against Borrower. DLL may establish reserves against the Revolving Loans Borrowing Base Amount for any amounts paid by DLL pursuant to this paragraph or for any amounts being contested in good faith under this paragraph. 

9.25 Power of Attorney. Borrower appoints DLL and its designees as Borrower's attorney, with the power (i) to endorse Borrower's name on any checks,
notes, acceptances, money orders or other forms of payment or security that come into DLL's possession and on verifications of accounts and on financing statements and other public lien or security interests records, (ii) after the occurrence and
during the continuance of an Event of Default, to endorse Borrower’s name on notices of assignment and other notices to customers or Account Debtors; (iii) after the occurrence and during the continuance of an Event of Default, to sign
Borrower's name on any invoice or bill of lading relating to any Receivable, on drafts against customers and, on assignments of Receivables; (iv) to send requests for verification of Receivables to customers or Account Debtors in a manner consistent
with the provisions of Section 2.10(g) below; (v) after the occurrence and during the continuance of an Event of Default, to notify the post office authorities to change the address for delivery of Borrower's mail to an address designated by DLL and
to open and dispose of all mail addressed to Borrower; and (vi) after the occurrence and during the continuance of an Event of Default, to do all other things DLL reasonably deems necessary to carry out the terms of this Agreement. Borrower hereby
ratifies and approves all acts of such attorney. Neither DLL nor any of its designees shall be liable for any acts or omissions nor for any error of judgment or mistake of fact or law while acting as Borrower's attorney. This power, being coupled
with an interest, is irrevocable until the Obligations have been fully satisfied and DLL's obligation to provide loans hereunder shall have terminated. 

9.26 GOVERNING LAW; WAIVERS.  THIS AGREEMENT, AND ALL MATTERS RELATING HERETO AND ARISING HEREFROM (WHETHER SOUNDING IN CONTRACT LAW, TORT
LAW OR OTHERWISE), INCLUDING WITHOUT LIMITATION ENFORCEMENT OF THE OBLIGATIONS, SHALL BE INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE CONFLICT OF LAWS RULES) OF THE COMMONWEALTH OF PENNSYLVANIA GOVERNING CONTRACTS TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE. BORROWER HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTIES OF DELAWARE OR PHILADELPHIA, THE COMMONWEALTH OF PENNSYLVANIA OR, AT THE SOLE OPTION OF DLL, IN ANY OTHER 

  - 31 -

COURT IN WHICH DLL SHALL INITIATE
      LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION
      OVER THE MATTER IN CONTROVERSY. BORROWER WAIVES ANY OBJECTION OF FORUM
      NON CONVENIENS AND VENUE IN CONNECTION WITH ANY PROCEEDINGS COMMENCED BY
      DLL IN ANY OF THE FOREGOING COURTS. BORROWER WAIVES PERSONAL SERVICE OF
      ANY AND ALL PROCESS UPON IT, AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS
      BE MADE BY MESSENGER, CERTIFIED MAIL OR REGISTERED MAIL DIRECTED TO BORROWER
      AT THE ADDRESS SET FORTH BELOW ITS SIGNATURE HERETO AND SERVICE SO MADE
      SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT. BORROWER FURTHER WAIVES
      ANY RIGHT IT MAY OTHERWISE HAVE TO COLLATERALLY ATTACK ANY JUDGMENT ENTERED
AGAINST IT. 

 9.27 MUTUAL WAIVER OF RIGHT
        TO JURY TRIAL. DLL AND BORROWER EACH HEREBY WAIVES THE RIGHT TO TRIAL
        BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN
        ANY WAY RELATING TO: (i) THIS AGREEMENT; (ii) ANY OTHER PRESENT OR FUTURE
        INSTRUMENT OR AGREEMENT BETWEEN DLL AND BORROWER; OR (iii) ANY CONDUCT,
        ACTS OR OMISSIONS OF DLL OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS,
        EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH DLL
        OR BORROWER; IN EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT
        OR TORT OR OTHERWISE.  

9.28 Lien
          Termination. In recognition of DLL’s right to have all of its
          attorneys’ fees and other expenses incurred in connection with
          this Agreement secured by the Collateral, notwithstanding the payment
          in full of the Obligations, DLL shall not be required to execute or
          record any terminations or satisfactions of any of its liens on the
          Collateral unless and until Borrower and all Guarantors (if any) have
          executed and delivered to DLL general releases of all claims, in form
          and substance satisfactory to DLL in its sole discretion.

 9.29 Multiple Borrowers, Joint
      and Several Liability. If more than one Person is named as the “Borrower” on
      the cover page hereof, or hereafter becomes a “Borrower” hereunder
      by means of a joinder, amendment or other modification
      hereto, then all references herein to “Borrower” shall be deemed
      to be a joint and several reference to each and every such Borrower entity
      and to any such Borrower entity. The liability of all such Borrower entities
      for the Loans and other Obligations shall be joint and several, and each
      such Borrower entity hereby acknowledges and agrees that it shall be unconditionally
      liable in accordance with the terms hereof and of the other Loan Agreements
      for the repayment of all of the Obligations of all Borrower entities under
      this Agreement, including without limitation all Loans and any other extensions
      of credit made to the Borrower entities, regardless of which Borrower entity
      actually receives the proceeds of any Loan or the benefit of any other
      extensions of credit hereunder and/or whether any particular Loan is made
      in reliance on or based on the value of the property and assets, including
      the Collateral, belonging to any particular one or more of the Borrower
      entities. The ultimate scope of liability of the Borrower entities shall
      be such that DLL may proceed against any one or more Borrower entities
      in any order and on any basis provided for hereunder or under any other
      Loan Agreement to collect the Obligations and each Borrower entity shall
      be directly, primarily and unconditionally liable for the repayment of
      the Loans and other extensions of credit and Obligations and interest thereon.       

To the extent that applicable law,
    including any fraudulent conveyance or fraudulent transfer law (specifically
    including the provisions of Section 548 of the federal Bankruptcy Code, 11
    U.S.C. §§101 et seq.),
    otherwise would render the full amount of the joint and several Obligations of any Borrower entity hereunder and under the other Loan Documents invalid or unenforceable, such Borrower entity’s
    obligations hereunder and under the other Loan Documents shall be limited
    to the maximum amount which does not result in such invalidity or unenforceability; provided, however,
    that each Borrower entity’s obligations hereunder and under the other
    Loan Documents shall be presumptively valid and enforceable to their fullest
    extent in accordance with the terms hereof or thereof, as if this Section
    were not a part of this Agreement.       

Each Borrower entity hereby authorizes DLL, without notice or demand and without affecting the liability of any Borrower entity hereunder, to, at any time and from time to time, (i) renew, extend or otherwise increase the
      time for payment of the Obligations; (ii) with the written agreement of any Borrower entity accelerate or otherwise change the terms relating to the Obligations or otherwise modify, amend or change the terms of any promissory note or other
    agreement, document or instrument now or hereafter executed by any Borrower
  entity and delivered to Administrative Agent and/or any Lender; (iii) accept 

  - 32 -

partial payments of the Obligations;
    (iv) take and hold security or collateral for the payment of the Obligations
    or for the payment of any guarantees of the Obligations and exchange, enforce,
    waive and release any such security or collateral; (v) apply such security
    or collateral and direct the order or manner of sale thereof as DLL, in its
    sole discretion, may determine; and (vi) settle, release, compromise, collect
    or otherwise liquidate the Obligations and any security or collateral therefor
    in any manner, without affecting or impairing the obligations of any Borrower
    entity. Except as specifically provided in this Agreement or any of the other
    Loan Documents, DLL shall have the exclusive right to determine the time
    and manner of application of any payments or credits, whether received from
    any Borrower entity or any other source, and such determination shall be
    binding on all Borrower entity. All such payments and credits may be applied,
    reversed and reapplied, in whole or in part, to any of the Obligations as
    DLL shall determine in its sole discretion without affecting the validity
or enforceability of the Obligations of any other Borrower entity.  

Each Borrower entity hereby agrees
    that its obligations hereunder shall be unconditional, irrespective of (i)
    the absence of any attempt to collect the Obligations from any other Borrower
    entity or obligor or other action to enforce the same; (ii) the waiver or
    consent by DLL with respect to any provision of any instrument evidencing
    the Obligations, or any part thereof, or any other agreement heretofore,
    now or hereafter executed by a Borrower entity and delivered to DLL; (iii)
    failure by DLL to take any steps to perfect and maintain its security interest
    in, or to preserve its rights to, any security or collateral (including the
    Collateral) for the Obligations; (iv) the institution of any proceeding under
    the United States Bankruptcy Code, or any similar proceeding, by or against
    any other Borrower entity or DLL’s election in any such proceeding of
    the application of Section 1111(b)(2) of the United States Bankruptcy Code;
    (v) any borrowing or grant of a security interest by any other Borrower entity
    as debtor-in-possession, under Section 364 of the United States Bankruptcy
    Code; (vi) the disallowance, under Section 502 of the United States Bankruptcy
    Code, of all or any portion of DLL’s claim(s) in any such bankruptcy
    or similar proceeding against any other Borrower entity for repayment of
    any of the Obligations; or (vii) any other circumstance other than payment
    in full of the Obligations which might otherwise constitute a legal or equitable
    discharge or defense of a guarantor or surety. 

 Any notice given by one Borrower
    entity hereunder shall constitute and be deemed to be notice given by all
    Borrower entities, jointly and severally. Notice given by DLL to any one
    Borrower entity hereunder or pursuant to any other Loan Documents in accordance
    with the terms hereof shall constitute notice
    to each and every Borrower entity. The knowledge of one Borrower entity shall
    be imputed to all Borrower entities and any consent by one Borrower entity
    shall constitute the consent of and shall bind all Borrower entities. Without
    limiting the generality of the foregoing, each Borrower entity hereby irrevocably
    designates and appoints the Borrower entity designated as the “Borrowing
    Agent” on
    the Schedule, in such capacity, to be its attorney and agent-in-fact and
    to borrow, request Revolving Credit Loans, Floorplan Loans and/or Letters
    of Credit (to the extent each is available hereunder), to make elections
    regarding the interest rate options applicable to any Loans (if any such
    options are available hereunder), sign and endorse notes, consent to waivers
    and amendments, supplements, modifications and restatements of this Agreement
    and the other Loan Documents and execute and deliver all instruments, documents,
    writings and further assurances now or hereafter required hereunder (including
    any such amendments, supplements, modifications and restatements), all on
    behalf of each such Borrower entity, and hereby authorizes DLL to pay over
    or credit all proceeds of any Loans hereunder in accordance with the requests
    and instructions of such Borrowing Agent (including without limitation, instructions
    to pay such proceeds to Borrowing Agent or an account maintained and/or controlled
    by Borrowing Agent) and to give all notices required under or in connection
    with this Agreement and the other Loan Documents to such Borrowing Agent.   

No payment made by or for the account
    of any Borrower entity including, without limitation, (i) a payment made
    by such Borrower entity on behalf of another Borrower entity’s Obligations
    or (ii) a payment made by any other person under any guaranty, shall entitle
    such Borrower entity, by subrogation or otherwise, to any payment from such
    other Borrower entity or from or out of such other Borrower entity's property
    and such Borrower entity shall not exercise any right or remedy against such
    other Borrower entity or any property of such other Borrower entity by reason
    of any performance of such Borrower entity of its joint and several obligations
    hereunder, in any such case until such time as this Agreement and all obligations
    of DLL to make loans and extend credit hereunder has been terminated and
    all of the Obligations have been paid in full.    

9.30 Right of Offset.  In addition
    to and not in limitation of all rights of offset that DLL may have under
    applicable law, DLL shall, whether or not amounts owed by 

- 33 - 

Borrower are due
        and payable, have the right to appropriate and apply to the payment of
      all amounts, indebtedness, obligations or liabilities then or thereafter
      owing to the Borrower from DLL or any of DLL’s affiliates, including without limitation any indebtedness,
            obligation or liability owing to Borrower from DLL or any of DLL’s affiliates
            with respect to  any financing of the acquisition of any Inventory by DLL
            or any of DLL’s
        affiliates, whether such financing is made by DLL or its affiliate on
            its own behalf or on behalf of any other customer of DLL or its affiliate
            (whether in connection with a leasing contract or any other relationship
            between DLL or its affiliate and such other customer). 

  [SIGNATURES ON FOLLOWING PAGE] 

  [REMAINDER OF PAGE LEFT 

  INTENTIONALLY BLANK] 

- 34 - 

          IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto have executed this Loan and Security Agreement as of the date first set forth above. 

Executed under Seal by: 

Borrower: 

EMTEC INC. (a Delaware corporation) 

Tax I.D. No. 87-0273300 

By: /s/ Stephen C. Donnelly___  (SEAL) 

Name: Stephen C. Donnelly 

Title:      President or Vice President 

EMTEC INC. (a New Jersey corporation) 

Tax I.D. No. 22-3386933 

By: /s/ Stephen C. Donnelly___  (SEAL) 

Name: Stephen C. Donnelly 

Title:      President or Vice President 

EMTEC VIASUB LLC (a Delaware limited liability company) 

Tax I.D. No. 68-0614277 

By: /s/ Stephen C. Donnelly___  (SEAL) 

    Name: Stephen C. Donnelly 

    Title:      President
or Vice President 

WESTWOOD COMPUTER CORPORATION 

(a New Jersey corporation) 

Tax I.D. No. 82-1913563 

By: /s/ Stephen C. Donnelly___  (SEAL) 

Name: Stephen C. Donnelly 

Title:      President or Vice President 

Borrower’s address for notices:

  [Borrower to Specify contact information]  

Attn:

  Facsimile:  

 

[Signature Page 1 of 2 to De Lage Landen/Emtech Loan Agreement] 

- 35 - 

DE LAGE LANDEN FINANCIAL SERVICES, INC. 

/s/ Michael L. Jordan

By:      Michael L. Jordan         (SEAL)

    Title:  Credit Process Manager          

    

    DLL’s address for notices: 

  

    De Lage Landen Financial Services 

    1111 Old Eagle School Road 

    Wayne, PA 19087 

    Attn:      Vice President – Operations – Commercial
    Finance 

    Telephone:      (800)
    800-0345 

    Facsimile:        (800)
347- 3936 

[[Signature Page 2 of 2 to De Lage Landen/Emtech Loan Agreement]

- 36 -EXHIBIT 10.2 

DE LAGE LANDEN FINANCIAL SERVICES, INC. 

  Schedule to Loan and Security Agreement

  (Revolving Credit Loan and Floorplan Loan) 

	 	 
	
Borrower: 
		
EMTEC INC. (Delaware Corporation) 
	
	 	 
	 

		
EMTEC INC. (New Jersey Corporation) 
	
	 	 
	 

		
EMTEC VIASUB LLC (Delaware Limited Liability Company) 
	
	 	 
	 

		
WESTWOOD COMPUTER CORPORATION (New Jersey Corporation) 
	
	 	 
	
Address: 
		
11 Diamond Road 
	
	 

		
Springfield, NJ 07081 
	
	 	 
	 

	
	
Federal Tax ID#:                
		
87-0273300 (Emtec Delaware) 
	
	 

		
22-3386933 (Emtec NJ)   
	
	 

		
68-0614277 (Emtec Viasub) 
	
	 

		
22-1913563 (Westwood)  
	
	 

	
	 
	
Date: 
		
December 7, 2006 
	

This Schedule forms an integral part of the Loan and Security Agreement between the above Borrower and De Lage Landen Financial Services, Inc. dated the above date, and all references herein and therein to “this
Agreement” shall be deemed to refer to said Agreement and to this Schedule. 

If more than one Person is named as the “Borrower” above, or hereafter becomes a “Borrower” hereunder by means of a joinder, amendment or other modification hereto, then all references herein to
“Borrower” shall be deemed to be a joint and several reference to each and every such Borrower entity and/or to any such Borrower entity as the context shall require. The liability of all such Borrower entities for the Loans and other
Obligations shall be joint and several as further provided for in Section 9.29 of the Agreement. 

 

DEFINITIONS (SECTION 1): 

               “Base Rate” means the rate of interest published in the “Money Rates” section of The Wall Street Journal as the “Prime Rate.” If The Wall Street
Journal listing of “Money Rates” is discontinued or substantially altered, DLL may, in its Permitted Discretion, choose another index of annual interest rates for nonconsumer loans; in such event, the
substitute index shall be considered the Base Rate, although it may be necessary for DLL adjust the number of percentage points above or below the Base Rate charged under Section 2.6 of this Schedule below so that the rate of interest under the
substitute index shall be substantially equivalent to the rate of interest under the prior index. 

               “Borrowing Base Certificate” has the meaning set forth in Section 9.1(b)(a) of this Schedule. 

               “Eligible Inventory” NOT APPLICABLE. Notwithstanding anything to the contrary set forth in the Agreement, no
Loans shall be advanced to Borrower based on any Inventory other than Floorplan Loans relating to Floorplan Inventory of Borrower as further described herein. 

               “Eligible Receivables” means Receivables of Borrower arising in the ordinary course of Borrower's business
from the sale of goods or rendition of services by Borrower, which DLL, in its Permitted Discretion, shall deem eligible based on such commercially reasonable considerations as DLL may from time to time deem appropriate. Without limiting the
foregoing, no Receivable of Borrower shall qualify as an Eligible Receivable if (i) the Account Debtor has failed to pay the Receivable within a period ending as of the earlier of ninety (90) days after invoice date or sixty (60) days after original
due date, provided that, in the case of Receivables on which the Account Debtor is the United States federal government or a department or agency thereof, then from October
1st of each year through March 31st of the following year, no such Receivable shall be deemed
to be ineligible due solely to the provisions of this clause (i) unless such Receivable remains unpaid more than one hundred twenty (120) days after invoice date or ninety (90) days after original due date; (ii) the Account Debtor has failed to pay
more than the percentage specified below (“Cross-Age Percentage”) of all outstanding Receivables owed by it to Borrower within a period ending as of the earlier of
ninety (90) days after invoice date or sixty (60) days after original due date (or, if applicable under the proviso to the preceding clause (i), within the earlier of one hundred twenty (120) days after invoice date or ninety (90) days after
original due date), provided that, for purposes of this clause (ii), each department or agency of the United States federal government shall be treated as a separate Account
Debtor; (iii) the Account Debtor is an Affiliate of Borrower (including, if applicable, any account owing from one Borrower entity to another Borrower entity); (iv) Borrower is not the lawful and unconditional owner of the Receivable; (v) the goods
relating thereto are placed on consignment, guaranteed sale, “bill and hold,” “COD” or other terms pursuant to which payment by the Account Debtor may be conditional; (vi) the Account Debtor is not located in the United States or
Canada, unless the Receivable is supported by a letter of credit, credit insurance, or other form of guaranty or security, in each case in form and substance satisfactory to
DLL; (vii) the Account Debtor is the United States of America or any department, agency or instrumentality thereof, unless the provisions of the Federal Assignment of Claims Act has been complied with, provided
that, notwithstanding the foregoing, no such Receivable shall be deemed to be ineligible solely due to the provisions of this clause (vii) unless such Receivable arises out of a single invoice for an amount of
$5,000,000 or more provided that, notwithstanding anything to the contrary contained in the foregoing, no Receivable that would otherwise be subject to this clause (vii)
which was in existence on the Closing Date shall be deemed to be ineligible solely due to a failure of Borrower to comply with the provisions of this clause (vii) with respect to any such Receivable existing as of the Closing Date; (viii) Borrower
is or may become liable to the Account Debtor for goods sold or services rendered by the Account Debtor to Borrower; (ix) the Account Debtor's total obligations to Borrower exceed the percentage specified below (“Concentration Limit”) of all Eligible Receivables, to the extent of such excess, provided that, for purposes of this
clause (ii), each department or agency of the United States federal government shall be treated as a separate Account Debtor; (x) the Account Debtor disputes liability or makes any claim with respect thereto (up to the amount of such liability or
claim), or is subject to any insolvency or bankruptcy proceeding, or becomes insolvent, fails or goes out of a material portion of its business; (xi) the amount thereof consists of late charges or finance charges, to the extent of such late charges
or finance charges; (xii) the amount thereof consists of a credit
 balance more than ninety (90) days after invoice date (or, if applicable under the proviso to the clause (i) of this definition above, within the earlier of one hundred twenty (120) days after invoice date), to the extent of such credit balance;
(xiii) such Receivable arises from the sale of goods and the face amount thereof exceeds the amount specified below (“Proof of Shipment Threshold”), unless evidence
of shipment of the goods relating thereto satisfactory to DLL in its Permitted Discretion is provided by Borrower to DLL; (xiv) the invoice constitutes a progress billing on a project not yet completed, except that the final billing at such time as
the matter has been completed and delivered to the customer may be deemed an Eligible Receivable, provided that, notwithstanding anything to the contrary, invoiced progress
billings that are not the final billing on a completed matter shall not be deemed to be ineligible solely due to the provisions of this clause (xiv) to the extent that the total amount of such invoiced progress billings described in this proviso do
not exceed ten percent (10%) of the total amount of Eligible Receivables of Borrower as of the applicable date of determination; (xv) the amount thereof is not yet represented by an invoice or bill issued in the name of the applicable Account
Debtor; (xvi) the Receivable represents a “pre-billed” amount for services not yet provided; or (xvii) the Account Debtor on the Receivable is an individual. 

	
      (ii) 
      
	
      Cross-Age Percentage 
      
	
      50% 
      

2 

	
(ix) 
		
Concentration Limit 
		
25%. 
	
	 	 	 
	
(xiii) 
		
Proof of Shipment Threshold 
		
$2,000,000 
	

               If from time to time more than one Person is named as the Borrower above, or hereafter becomes a Borrower hereunder, the Cross-Age Percentage and Concentration Limit are to be calculated on a
consolidated basis for all Borrower entities. Without contradicting or limiting the generality of the first sentence of this definition, DLL may from time to time, acting in its Permitted Discretion, elect to waive or adjust the requirements of the
specific terms of any of clauses (i) through (xvi) above (specifically including without limitation clauses (ii) and (ix)) with respect to any particular Receivable and/or Account Debtor, and in particular DLL may from time to time acting in its
Permitted Discretion elect to increase the concentration limit provided for in clause (ix) above with respect to any particular Account Debtor and/or any particular Receivable of such Account Debtor, but further
provided that, (x) DLL may at any time in its Permitted Discretion revoke its decision to waive or adjust any such requirements with respect to any such particular Receivable and/or Account Debtor and thereafter
strictly apply the requirements of clauses (i) through (xvi) to such Receivable and/or Account Debtor and (y) no such waiver or adjustment granted by DLL with respect to any particular Receivable and/or Account Debtor at any time or from time to
time shall create a course of dealing or course of conduct binding upon DLL or create any other expectation or obligation for DLL to maintain such waiver or adjustment or grant any similar waiver or adjustment at that time or in the future with
respect to such Receivable and/or Account Debtor or any similar Receivable and/or Account Debtor. In order to permit DLL to measure compliance with this Agreement, specifically including the details of the provisions hereof regarding Eligible
Receivables, upon request of DLL, all reports delivered by Borrower regarding Borrower’s Receivables, including Borrower’s Borrowing Base Certificates and monthly accounts receivable agings, shall include information regarding the actual
federal departments and agencies placing the orders for all purchase orders/invoices payable by Defense Finance & Accounting Services but only if (1) such information is readily available to Borrower and (2) the disclosure of such information by
Borrower is not prohibited or otherwise restricted by applicable law or by the terms of any contract or purchase order relating to any such Receivable (it being understood that if such information is not readily available or cannot be disclosed to
Borrower with respect to any Receivable pursuant to the foregoing, this fact may affect DLL’s determination as to whether such Receivable shall be an Eligible Receivable hereunder). For the avoidance of doubt, notwithstanding the amount of the
Proof of Shipment Threshold set forth above, DLL shall be entitled when conducting its field examinations and audits of Borrower and the Collateral to request copies of and verify the proof of shipment as to any invoice regardless of its size
consistent with reasonable audit protocols. 

               “Emtec Parent” means Emtec, Inc., the Delaware corporation. 

               “Examination Fee” has the meaning set forth in Section 2.6 of this Schedule. 

               “Excess Availability” means, at a particular date, mean an amount equal to (a) the Revolving Credit Borrowing
Base Amount plus the Floorplan Borrowing Base Amount minus (b) the sum of (i) the outstanding principal amount of all Loans plus (ii) fees and expenses for which Borrower is liable under the Loan Agreement but which have not been paid. 

               “Excess Revolver Availability” means, at a particular date, mean an amount equal to (a) the Revolving Credit
Borrowing Base Amount minus (b) the sum of (i) the outstanding principal amount of all Revolving Credit Loans plus (ii) all amounts due and owing to Borrower's and its Subsidiaries’ trade creditors which are outstanding beyond normal trade terms (such trade terms not to exceed 30 days) plus (iii) fees and expenses for which Borrower is liable under the Loan Agreement but which have not been paid. 

               “Floorplan Borrowing Base Amount” has the meaning set forth in Section 2.2 of this Schedule. 

               “Floorplan Loans” has the meaning set forth in Section 2.2 of this Schedule. 

               “Letter of Credit” has the meaning set forth in Section 2.4 of this Schedule.

3 

               “Loan Year” means each twelve month period commencing on the Closing Date. 

               “Maximum Floorplan
  Amount” has the meaning set forth in Section 2.2 of this Schedule. 

               “Refinancing Floorplan Loan” has the meaning set forth in
    Section 2.2 of this Schedule. 

               “Revolving Credit Borrowing Base Amount” has the meaning set forth in Section 2.2 of this Schedule. 

               “Revolving Credit Limit” has the meaning set forth in Section 2.2 of this Schedule. 

               “Revolving Credit Loans” has
    the meaning set forth in Section 2.2 of this Schedule. 

               “RMA Credits” means credit memoranda for return merchandise authorizations issued by Vendors of Floorplanned
Inventory which are within forty-five (45) days of their issuance date. 

 

TOTAL FACILITY (SECTION 2.1): 

Thirty-Two Million Dollars ($32,000,000) 

 

LOANS (SECTION 2.2):

  Revolving Credit Loans: A
      revolving line of credit consisting of loans made to Borrower against Borrower's
      Eligible Receivables and against Borrower's Eligible Inventory (collectively,
      the “Revolving Credit Loans”)
      in an aggregate outstanding principal amount not to exceed the lesser of
      (a) or (b) below (the “Revolving
      Credit Borrowing Base Amount”),
subject to the overall credit limit specified in this Section 2.2 below:

  (a) Thirty-Two Million Dollars ($32,000,000)
      (the “Revolving Credit Limit”), less any Loan Reserves,
      or 

  (b) the sum of: 

  	                (i)               	 an amount equal to eighty-five percent
          (85%) of the net amount of Eligible Receivables; less
	 
	                (ii)	 any Loan Reserves.

  DLL acting in its Permitted Discretion
      shall have the right at all times and from time to time (i) to establish,
      increase or decrease Loan Reserves against the Revolving Credit Borrowing
      Base Amount as provided for in the definition of Loan Reserves and/or as
      otherwise provided for in the Agreement and/or (ii) to reduce the advance
      rates under the Revolving Credit Borrowing Base Amount with respect to
      Eligible Receivables or restore such advance rates at any level equal to
      or below the advance rates set forth above and/or (iii) (without limiting
      the generality of the first sentence of the definition of Eligible Receivables
      impose additional restrictions (or eliminate the same) for or tighten or
      make more restrictive any standards of eligibility set forth in the definition
      of Eligible Receivables. 

   The revolving line of credit described
      in the foregoing is a committed line of credit, and DLL shall be obligated
      upon Borrower’s request from time to time, so long as no Event of
      Default or event which, with the giving of notice or passage of time or
      both, would constitute an Event of Default

4

  

  shall have occurred and remain
      outstanding at the time of such request, to make Revolving Credit Loans
      to Borrower as described above, subject to all of the limitations set forth
      above and the other provisions of this Agreement, including without limitation
      the provisions of Section 4.2 of the Agreement. 

  Floorplan Loans: A
      floorplan line of credit consisting of loans made to Borrower against Floorplanned
      Inventory (“Floorplan Loans”)
      of Borrower in an aggregate principal amount not to exceed at any time
      Thirty-Two Million Dollars ($32,000,000) (“Maximum
      Floorplan Amount”) less the
      amount of any outstanding approvals given by DLL to any Vendor of Floorplanned
      Inventory. No individual Floorplan Loan shall exceed one hundred percent
      (100%) of the Vendor’s invoice price for the applicable Floorplanned
      Inventory financed through such Floorplan Loan (the aggregate of all such
      amounts for all Floorplanned Inventory at any time, the “Floorplan
      Borrowing Base Amount”).

  On the Closing Date, DLL shall,
      at the request of Borrower, make a Floorplan Loan pursuant to Sections
      2.2 and 2.4 to refinance and pay in full all “floorplan loans” previously
      advanced to Borrower by its prior lender, GE Commercial Distribution Finance
      Corporation, to finance the purchase of inventory by Borrower from Vendors
      with whom DLL has appropriate repurchase agreements (the “Refinancing
      Floorplan Loan”), which shall
      not exceed one hundred percent (100%) of the aggregate invoice prices for
      all such previously financed Floorplan Inventory. Such Refinancing Floorplan
      Loan shall have a maturity and repayment date (subject to clauses (i),
      (ii) and (iii) of Section 2.10(a) of the Agreement) of forty-five (45)
      days after the date of funding thereof, subject to any applicable commonized
      due date established by DLL that is applicable to such Refinancing Floorplan
      Loan. Notwithstanding anything to the contrary contained in the foregoing,
      at the request of Borrower but subject to all of the other applicable terms
      and conditions of this Agreement, DLL may instead make a Revolving Credit
      Loan to refinance and pay in full all such previous “floorplan loans” from
      the prior lender, and in such a case, any such Revolving Credit Loan shall
      be made on the same terms and conditions applicable to any other Revolving
      Credit Loan and shall not be subject to or governed by any special provisions
      of this Agreement relating to any possible “Refinancing Floorplan
      Loan”.

  Overall Credit Limit: Subject
      to Section 9.11 of the Agreement, in no event may the sum of the Revolving
      Credit Loans and Floorplan Loans (including outstanding approvals) exceed
      the Total Facility. and no Revolving Credit Loan or Floorplan Loan shall
      be made if, after giving effect to such Revolving Credit Loan or Floorplan
      Loan, the provisions of this sentence would be violated. If notwithstanding
      the forgoing at any time the sum of the aggregate outstanding principal
      amount of all Revolving Credit Loans and Floorplan Loans does exceed the
      Total Facility, such excess (which shall be an Obligation secured by the
      Collateral) shall be treated as an Overloan subject to all the provisions
      of Section 2.3 of this Agreement and any other provisions of this Agreement
      dealing Overloans. 
  

 

LETTERS OF CREDIT (SECTION 2.4):

[RESERVED]

 

INTEREST AND FEES (SECTION 2.6):

Interest Rate:

  Revolving Interest Rate.
      Borrower shall pay DLL interest on the daily outstanding balance of Borrower's
      Revolving Credit Loans at a per annum rate of the Base Rate minus one-half
      of one percent (0.50%) (subject to the provisions of Section 2.7 of the
      Agreement regarding default rates). 

5

  Floorplan Credit Line Interest.
      No Floorplan Loan shall accrue interest until and unless any portion of
      such Floorplan Loan shall remain outstanding after the Due Date on each
      such specific Floorplan Loan as established under Section 2.10(a) of the
      Agreement, provided that,
      notwithstanding the foregoing, any Floorplan Loan that DLL elects to make
      that is not subsidized by the Vendor shall begin to accrue interest immediately
      upon the date any such specific non-subsidized Floorplan Loan is made and
      shall continue to so accrue interest until the Due Date thereon at the
      rate agreed to by DLL (acting in its Permitted Discretion) and Borrower
      in connection with each such specific non-subsidized Floorplan Loan as
      evidenced by the transaction statement provided to Borrower by DLL in connection
      with each such specific non-subsidized Floorplan Loan, all as provided
      for in Section 2.6(b) of the Agreement. Interest on any outstanding amount
      of any specific Floorplan Loan not repaid in full on or prior to the applicable
      Due Date for such Floorplan Loan (subject to any extension of such Due
      Date for such Floorplan Loan as provided for in Section 2.10(a)), including
      any Refinancing Floorplan Loan, shall
      accrue at a per annum rate of two and one-half percent (2.50%) in excess
      of the Base Rate. 

   Refinancing Floorplan Loan.
      Notwithstanding anything to the contrary set forth above or anywhere else
      in this Agreement, if DLL shall make any Refinancing Floorplan Loan at
      the request of Borrower as provided for in Section 2.2 of this Schedule
      above. Borrower shall pay to DLL a one-time refinancing loan fee in an
      amount equal to the amount of the Refinancing Floorplan Loan funded on
      the Closing Date multiplied by a per annum rate of the Base Rate minus
      one-half of one percent (0.50%) calculated for a period equal to forty-five
      (45) after the date of funding thereof as described in Section 2.2 above
      (the “Refinancing Floorplan Loan
      Financing Fee”). This Refinancing
      Floorplan Loan Financing Fee shall be due and payable in advance and fully-earned
      and non-refundable on the Closing Date. If any Event of Default shall occur
      and be continuing at on any date prior to the initial maturity and repayment
      date for such Refinancing Floorplan Loan as established under Section 2.2
      above, Borrower shall pay to DLL an additional default financing fee with
      respect to the Refinancing Floorplan Loan equal to the amount of the Refinancing
      Floorplan Loan outstanding on such date multiplied by a per annum rate
      of three percent (3.00%) calculated for each such day prior to the initial
      maturity and repayment date for such Refinancing Floorplan Loan on which
      an Event of Default shall exist, and such default financing fee shall be
      due and payable and fully-earned and non-refundable upon demand.

   Floating Rate.
      In all applications, unless a fixed interest rate is specified, the interest
      rate chargeable hereunder shall be increased or decreased as the case may
      be, without notice or demand of any kind, upon each change in the Base
      Rate with each such change effective immediately as of the date of such
      change. In all applications unless specified otherwise, interest charges
      and all other fees and charges shall be computed on the basis of a year
      of 360 days and actual days elapsed 

  Interest Payment Dates.
      All interest accrued and owing on any and all Revolving Credit Loans shall
      be due and payable to DLL in arrears on the first Business Day of each
      month. All interest accruing from time to time with respect to any Floorplan
      Loan shall be payable upon demand of DLL, or if not sooner demanded by
      DLL, upon the next regularly scheduled interest payment date for interest
      on the Revolving Credit Loans as specified in the preceding sentence. 

  

  Amount of Fees:

  Examination Fee.
      Borrower shall pay DLL an examination fee equal to Seven Hundred Fifty
      Dollars ($750) per day per field examiner, plus all out-of-pocket costs and expenses
      incurred by each such field examiner for each field examination and/or
      audit conducted by DLL regarding Borrower and its Collateral (the “Examination Fee”), which
      shall be deemed fully earned and non-refundable as of the end of each such
      day of each such field examination and/or audit and shall be due and payable
      on demand ,provided that,
      unless an Event of Default has occurred and remains outstanding, (i) Borrower
      shall not be liable for any Examination Fee in excess of Two Thousand Two
      Hundred Fifty

6

  ($2,250) with
      respect to any particular field examination and audit and (ii) Borrower
      shall not be liable for any Examination Fee with respect to more than four
      (4) such field examinations and audits in any year, but provided
      further that Borrower acknowledges
      that the foregoing limitations shall not apply with respect to any field
      examination or audit conducted by DLL at any time when an Event of Default
      has occurred and remains outstanding. Borrower acknowledges and agrees
      that DLL shall conduct such field examinations and audits at least quarterly.
      Notwithstanding anything to the contrary contained in the foregoing but
      subject to the other terms in the Agreement, nothing shall limit DLL’s
      (and its agents’ or auditors’) rights of access upon reasonable
      notice and at reasonable times (except that no such notice shall be required
      at any time after the occurrence and during the continuance of an Event
      of Default) at any time to Borrower's records, files, books of account
      and all other documents, instruments and agreements relating to the Collateral
      and to Borrower’s business locations and the Collateral as provided
      for under Section 9.1(a) of the Agreement or the number of field examinations
      and/or audits with respect to Borrower and its Collateral that DLL (and
      its agents or auditors) may conduct at DLL’s own expense from time
      to time or to limit DLL’s rights to determine the appropriate scope
      of any field examination or audit or the number of field examiners DLL
      may send to conduct any field examination or audit.

  

 

COLLECTION DAYS (SECTION 2.10(e)): 

	               	
Collection Days for Purposes of Calculating Availability: 
		
  Same day as receipt of payment. 
	
	 

	
	 	
Collection Days for Purposes of Calculating Interest: 
		
One (1) day after receipt of 
	
	 	 

		
payment.] 
	

 

INSURANCE (SECTION 3.4): 

  General Business Liability Insurance
      required in the amount of Two Million Dollars ($2,000,000).

          Property
    Casualty Insurance required in the aggregate amount for all locations of
    Six Million Dollars ($6,000,000). but, to the extent that inventory levels
    of Borrower exceed Six Million  Dollars ($6,000,000) (on a consistent
    basis), the insurance shall be increased to amounts sufficient to cover the
    higher inventory levels.

 

CONDITIONS OF CLOSING (SECTION 4.1): 

  The obligation of DLL to make the
      initial advance is subject to the fulfillment of each of the following
      conditions (as determined by DLL and its counsel in the exercise of their
      reasonable business judgment) in addition to the conditions set forth in
      Sections 2.1 and 2.2 above and in Section 4.1 of the Agreement, subject
      to any applicable Post Closing Conditions and Covenants set forth under
      the heading “Additional Provisions and Covenants” below. All
      documents and agreements to be provided below must be in form and substance
      and have terms and conditions satisfactory to DLL and their counsel in
      their reasonable business judgment. 

   1. Landlord
      Waivers with respect to the following locations of Borrower:

  11 Diamond Road, Springfield, NJ
      07081 

7 

  500 Satellite Boulevard, Suwanee, GA 30024

      

      7843 Bayberry Road, Jacksonville, FL 32256

  

	     	
2.     	
Payoff and termination of existing credit facilities and liens and related payoff letters as follows:
	 
	 	 	
Delivery by Borrower to DLL of an executed payoff letter from GE Commercial Distribution Finance Corporation addressed to Borrower and DLL which shall include, without limitation, provisions stating that upon receipt of a
payoff amount specified in such payoff letter, all obligations of Borrower to such lender will have been paid in full and that upon such lender’s receipt of such payoff amount, any and all liens and security interests held by such lender in any
property or assets of Borrower shall automatically be released terminated and Borrower and/or DLL shall be authorized to terminate any UCC-1 financing statements filed by such lender against Borrower.
	 
	 	
3.	
Subordination/Intercreditor Agreements of existing credit facilities and existing liens and security interests that will continue as Indebtedness permitted under Section 2.2.11 and Permitted Encumbrances as
follows:
	 
	 	 	
Delivery by Borrower of an executed Subordination Agreement among Borrower, DLL and MRA Systems, Inc. d/b/a GE Access (“MRA/GE Access”) providing for the subordination of any and all liens and security interests
now or hereafter held by MRA/GE Access in the property or assets of Borrower (other than security interests in favor of MRA/GE Access with respect to Borrower’s inventory and the cash and insurance proceeds thereof and with respect to
uninvoiced “End User Payments” relating to Sum Microsystems Support Service Maintenance Contracts) to the liens and security interests on the property and assets of Borrower granted to DLL to secure the Obligations on terms and conditions
acceptable to DLL in its sole discretion.
	 
	 	
4.	
Payoff and/or subordination of existing insider/affiliate Indebtedness as follows:
	 
	 	 	
(a)                     Delivery by Borrower to DLL of evidence that all Indebtedness owing to the following insider/affiliate creditors has been paid in full, including an acknowledgement executed by each such creditor either acknowledging
that all such Indebtedness has been paid in full or that upon receipt of a sum stated in such acknowledgement on or before a date specified in such acknowledgement, all such Indebtedness will be paid in full:

  Indebtedness owing to Michael John
      Grabel pursuant to that certain 5% Junior Subordinated Note dated April
      16, 2004 issued by Westwood Computer Corporation.

   Indebtedness owing to Megan Patricia
      Grabel pursuant to that certain 5% Junior Subordinated Note dated April
      16, 2004 issued by Westwood Computer Corporation. 

   Indebtedness owing to Mary Margaret
      Grabel pursuant to that certain 5% Junior Subordinated Note dated April
      16, 2004 issued by Westwood Computer Corporation. 

   Indebtedness owing to Keith R.
      Grabel pursuant to that certain 5% Junior Subordinated Note dated April
      16, 2004 issued by Westwood Computer Corporation. 

   Indebtedness owing to Michael John
      Grabel pursuant to that certain 8% Junior Subordinated Note dated April
      16, 2004 issued by Westwood Computer Corporation.

   Indebtedness owing to Megan Patricia
      Grabel pursuant to that certain 8% Junior Subordinated Note dated April
      16, 2004 issued by Westwood Computer Corporation. 

  

8

  Indebtedness owing to Mary Margaret
      Grabel pursuant to that certain 8% Junior Subordinated Note dated April
      16, 2004 issued by Westwood Computer Corporation. 

   Indebtedness owing to Keith R.
      Grabel pursuant to that certain 8% Junior Subordinated Note dated April
16, 2004 issued by Westwood Computer Corporation.

  (b)                Delivery by Borrower to DLL
      of an executed Subordination Agreement from each of the following affiliated
      creditors providing for the subordination to the Obligations by each such
      creditor of the Indebtedness now or hereafter payable to such creditor
      by Borrower, which such Subordination Agreements shall, inter alia, permit
      regularly scheduled payments of principal and interest and other obligations
      with respect to the Indebtedness owing to each such creditor to be paid
      by Borrower absent the occurrence and continuance of an Event of Default: 

  Darr Westwood LLC

    (such Subordination Agreement shall expressly
    include subordination of the Indebtedness owing pursuant to that certain
    Subordinated Note dated April 16, 2004 issued by Westwood Computer Corporation
    (as successor by merger to Darr Westwood Acquisition Corporation) and that
    certain 8% Promissory Note dated August 5, 2005 issued by Emtec Viasub LLC
    (as successor by merger to Darr Westwood Technology Corporation)). 

   Four Kings Management LLC

    (such Subordination Agreement shall expressly
    include subordination of the Indebtedness owing pursuant to that certain
    Subordinated Note dated April 16, 2004 issued by Westwood Computer Corporation
    (as successor by merger to Darr Westwood Acquisition Corporation)). 

	     	
5.     	
Establishment of Lockbox, Blocked Accounts and/or Dominion Accounts as follows:
	 
	 	 	
Execution of new Blocked Account Agreement among DLL, Borrower and PNC Bank re the existing PNC Bank Lockbox for Emtec, Inc. (the New Jersey corporation) as more fully provided for in Section 2.10(c) of the Agreement. Also,
delivery of a letter executed by GE Commercial Distribution Finance Corporation addressed to Borrower and PNC Bank regarding the immediate termination of the existing Blocked Account Agreement among GE Commercial Distribution Finance Corporation,
Borrower and PNC Bank with respect to such existing PNC Bank Lockbox and of all rights of GE Commercial Distribution Finance Corporation under such existing Blocked Account Agreement and/or with respect to such existing lockbox.
	 
	 	 	
Execution of new Blocked Account Agreement among DLL, Borrower and Wachovia Bank re the existing Wachovia Bank Lockbox for Emtec, Inc. (the New Jersey corporation) as more fully provided for in Section 2.10(c) of the
Agreement. Also, delivery of a letter executed by GE Commercial Distribution Finance Corporation addressed to Borrower and Wachovia Bank regarding the immediate termination of the existing Blocked Account Agreement among GE Commercial Distribution
Finance Corporation, Borrower and Wachovia Bank with respect to such existing Wachovia Bank Lockbox and of all rights of GE Commercial Distribution Finance Corporation under such existing Blocked Account Agreement and/or with respect to such
existing lockbox.
	 
	 	
6.	
Execution and delivery by Borrower and each bank at which Borrower maintains any Deposit Accounts other than the Blocked Accounts and/or Dominion Accounts described in item #5 above, including without limitation Wachovia
Bank, of a Deposit Account Assignment and Control Agreement acceptable to DLL in its sole discretion which shall provide DLL with “control” (as defined in the Code) with respect to each such Deposit Account.
	 
	 	
7.	
Execution and delivery by each of Emtec Parent and Emtec Viasub LLC of a Collateral Pledge Agreement pursuant to which each such Borrower entity shall pledge and grant a security interest in
	 

9

	 	 	
favor of DLL in all of the equity interests of its Subsidiaries to secure the Obligations of Borrower owing to DLL.
	 
	     	
8.     	
Delivery by Borrower to DLL of a Borrowing Base Certificate dated as of the Closing Date, which shall demonstrate that Borrower shall have Minimum Excess Availability on the Closing Date of at least Five Million Dollars
($5,000,000).

Borrower shall cause the conditions precedent set forth in Section 4.1 of this Agreement and set forth above in this Schedule to be satisfied, and shall provide evidence to DLL that all such conditions precedent have been
satisfied, on or before the Closing Date. 

 

REPRESENTATIONS (SECTION 5): 

FOR ALL BORROWERS: 

	
      Permitted Encumbrances (Sections 1.1 and 5.8): 
      
	
Lien in favor of Wachovia Bank, National 
	
	 

		
Association in Borrower’s deposit account 
	
	 

		
#2000018630716 and up to $150,000 of cash 
	
	 

		
collateral on deposit therein to secure 
	
	 

		
Borrower’s obligations in connection with that 
	
	 

		
certain standby letter of credit #SM215639W 
	
	 

		
issued by Wachovia for the account of Borrower 
	
	 

		
to beneficiary Vandergrand Properties Co., L.P. 
	
	 

		
in the face amount of $150,000 (or any similar 
	
	 

		
letter of credit issued in the same face amount to 
	
	 

		
such beneficiary in replacement of or 
	
	 

		
substitution for this specified letter of credit) 
	
	 	 
	 

		
Liens in favor of MRA Systems, Inc. (d/b/a GE 
	
	 

		
Access) in the assets of Emtec, Inc. (the New 
	
	 

		
Jersey corporation) as described in and 
	
	 

		
contemplated by the MRA Intercreditor 
	
	 

		
Agreement, but only so long as such MRA 
	
	 

		
Intercreditor Agreement shall remain in full 
	
	 

		
force and effect among the parties thereto. 
	
	 	 
	 

		
Liens on and/or collateral assignments of key 
	
	 

		
executive life insurance policies obtained by 
	
	 

		
Borrower insuring the life of Keith Grabel in 
	
	 

		
favor of Darr Westwood LLC to secure the 
	
	 

		
obligations owing to Darr Westwood LLC from 
	
	 

		
Westwood Computer Corporation under that 
	
	 

		
certain Subordinated Note in the amount of 
	
	 

		
$750,000 dated April 16, 2004 issued by 
	
	 

		
Westwood Computer Corporation to Darr 
	
	 

		
Westwood LLC as necessary to satisfy any 
	
	 

		
requirement to provide such security contained 
	
	 

		
in such Subordinated Note. 
	
	 

	
	 

		
Liens on and/or collateral assignments of key 
	
	 

		
executive life insurance policies obtained by 
	
	 

		
Borrower insuring the life of Keith Grabel in 
	

10 

	 	
favor of Four Kings Management LLC to secure 
	
	 	
the obligations owing to Four Kings 
	
	 	
Management LLC from Westwood Computer 
	
	 	
Corporation under that certain Subordinated 
	
	 	
Note in the amount of $750,000 dated April 16, 
	
	 	
2004 issued by Westwood Computer 
	
	 	
Corporation to Four Kings Management LLC as 
	
	 	
necessary to satisfy any requirement to provide 
	
	 	
such security contained in such Subordinated 
	
	 	
Note. 
	
	 	 
	 	
Liens in favor of Susquehanna Patriot 
	
	 	
Commercial Leasing Company, Inc. covering 
	
	 	
the equipment specified in the UCC-1. 
	
	 	 
	 	
Judgment Lien in favor the State of New Jersey 
	
	 	
for $2,692.31. 
	
	 	 
	 	
Liens in favor of Pinnacle Business Systems, 
	
	 	
Inc. covering the equipment specified in the 
	
	 	
UCC-1 
	
	 	 
	 	
Liens in favor of Susquehanna Patriot 
	
	 	
Commercial Leasing Company, Inc covering 1- 
	
	 	
Used 1999 TCM Propane Powered Forklift, 
	
	 	
Model FCG28T7T. 
	
	 	 
	 	
Liens in favor of Pinnacle Business Systems, 
	
	 	
Inc. covering various products such as software 
	
	 	
and rack monitors. 
	

    FOR EACH INDIVIDUAL BORROWER:

SEE ATTACHED EXHIBIT A

 

AFFIRMATIVE COVENANTS (SECTION 6.1):

  Government Receivables (Section
      6.1.12): Borrower shall provide notice to DLL of and use its commercially
      reasonable efforts to comply with the Federal Assignment of Claims Act
      with respect to each Receivable of Borrower that arises out of a single
      invoice for an amount of $5,000,000 or more provided
      that, notwithstanding anything to
      the contrary contained in the foregoing, Borrower shall not be required
      to comply with the Federal Assignment of Claims Act (although Borrower
      shall comply with the notice provisions of this Section 6.1.12) with respect
      to any Receivable that would otherwise be subject to this Section 6.1.12
      which was in existence on the Closing Date. For the avoidance of doubt,
      while the failure of Borrower to comply with the Federal Assignment of
      Claims Act with respect to any Receivable meeting the criteria under the
      foregoing sentence shall not be a violation of this covenant so long as
      Borrower has provided notice to DLL of such Receivable and used its commercially
      reasonable efforts to comply with the Federal Assignment of Claims Act
      with respect to such Receivable, no such Receivable shall be an “Eligible
      Receivable” for any purpose under this Agreement unless the provisions
      of the Federal Assignment of Claims Act have actually been complied with
      as to such Receivable as required by clause (vii) of the definition of “Eligible
      Receivables”. 

11

  Financial Covenants (Section
      6.1.13):

   All calculations relating the financial
      covenants specified below shall be done on a consolidated basis for Borrower
      and its Consolidated Subsidiaries. If from time to time more than one Person
      is named as the Borrower above, or hereafter becomes a Borrower hereunder
      by means of a joinder, amendment or other modification hereto, then all
      financial covenants are to be calculated on a consolidated basis for all
      Borrower entities and their respective Consolidated Subsidiaries taken
      together as a whole and all references to “Borrower” in the financial
      covenants set forth below or in any defined terms used in such covenants
      shall be deemed to be references to all Borrower entities and their respective
      Consolidated Subsidiaries on a consolidated basis. 

  Positive Annual Net Income.
      Borrower shall maintain a positive net income as determined in accordance
      with GAAP for each fiscal year of Borrower beginning with Borrower’s
      fiscal year ending August 31, 2007. 

   Minimum Excess Revolver Availability.
      Borrower shall maintain at all times a Minimum Excess Availability of at
      least $5,000,000 tested in connection with each delivery of a Borrowing
      Base Certificate by Borrower., provided
      that, subject to the provisions of
      the immediately following exception clause, notwithstanding anything to
      the contrary contained in this Agreement, and without limiting or contradicting
      any of the provisions of Sections 2.3 or 7.2, if at any time Borrower shall
      fail to be in compliance with this Minimum Excess Availability covenant,
      Borrower shall, upon DLL’s demand, immediately repay the Loans in
      the amount necessary to bring Borrower back into compliance with this covenant, except
      that, (i) if at any time Borrower
      shall have a Minimum Excess Availability of less than $5,000,000 but
      equal to or more than $4,000,000, Borrower shall have a cure period
      of not more than ten (10) Business Days to cure such Default by either
      demonstrating that it has a Minimum Excess Availability of at least $5,000,000
      (including by delivery of a new Borrowing Base Certificate showing such
      a Minimum Excess Availability) and/or repaying the Loans in the amount
      necessary to create a Minimum Excess Availability of at least $5,000,000,
      (ii) if at any time Borrower shall have a Minimum Excess Availability of
      less $4,000,000 but equal to or more than $3,000,000, Borrower
      shall have a cure period of not more than five (5) Business Days to cure
      such Default by either demonstrating that it has a Minimum Excess Availability
      of at least $5,000,000 (including by delivery of a new Borrowing Base
      Certificate showing such a Minimum Excess Availability) and/or repaying
      the Loans in the amount necessary to create a Minimum Excess Availability
      of at least $5,000,000 and (3) for the avoidance of doubt, if at any
      time Borrower shall have a Minimum Excess Availability of less than $3,000,000,
      Borrower shall have no cure rights with respect to this covenant and an
      immediate and automatic Event of Default shall be deemed to have occurred
      consistent with the other provisions of this paragraph and Section 7.1(b)
      of the Agreement. 

  Credit Memoranda (Sections
      3.6 and 6.1.14): Ten (10) Business
      Days.

  Additional Covenants (Section
  6.1.15):

   Westwood Federal Services, LLC
        as Inactive Subsidiary. Borrower
        represents and warrants that as of the Closing Date, Westwood Federal
        Services, LLC (“Westwood Services”), a wholly-owned Subsidiary
        of Borrower entity Emtec, Inc. (the Delaware corporation), has
        no significant or material assets and does not conduct any business.
        From and after the Closing Date, Borrower shall not permit Westwood Services
        to own or acquire any significant assets or to conduct any business,
        and, without limiting the generality of any other provisions of this
        Agreement (specifically including without limitation Section 6.2.2, 6.2.1
        and 6.2.12), no Borrower entity shall make any intercompany loans or
        capital contributions or otherwise 

12

  transfer any assets of any kind
      (including sales or transfers of inventory) to or engage in any other transactions
      of any kind with Westwood Services without the prior written consent of
      DLL. 

  Insider/Affiliated Indebtedness.
      Borrower represents and warrants that as of the Closing Date, and after
      giving effect to the payments required under item 4(a) of Section 4.1 of
      this Schedule above, the only Indebtedness for borrowed money owing by
      any Borrower entity to any Affiliate, shareholder (or former shareholder),
      employee (or former employee), officer (or former officer) or director
      (or former director) of any Borrower entity, or any relative of any of
      the foregoing, is as follows: 

  Indebtedness owing to Darr Westwood
      LLC pursuant to that certain Subordinated Note dated April 16, 2004 issued
      by Westwood Computer Corporation (as successor by merger to Darr Westwood
  Acquisition Corporation). 

  Indebtedness owing to Darr Westwood
        LLC pursuant to that certain 8% Promissory Note dated August 5, 2005 issued
        by Emtec Viasub LLC (as successor by merger to Darr Westwood Technology
        Corporation). 

   Indebtedness owing to Four Kings
      Management LLC pursuant to that certain Subordinated Note dated April 16,
      2004 issued by Westwood Computer Corporation (as successor by merger to
      Darr Westwood Acquisition Corporation). 

   Indebtedness owing to Joyce Tischler
      pursuant to that certain Separation Agreement dated April 16, 2004 between
      Joyce Tischler and Westwood Computer Corporation. 

  Without limiting the generality
      of Section 6.2.11 of this Agreement, from and after the Closing Date, Borrower
      shall not incur any additional Indebtedness for borrowed money from any
      Affiliate, shareholder (or former shareholder), employee (or former employee),
      officer (or former officer) or director (or former director) of any Borrower
      entity, or any relative of any of the foregoing, unless such Indebtedness
      is incurred as Subordinated Debt with the specific prior written consent
      of DLL. However, notwithstanding anything to the contrary contained in
      the foregoing or otherwise provided for in this Agreement, DLL agrees that:

                                                     (a)           it shall consent to and approve
      of the issuance by Borrower to either or both of Keith Grabel or Mary Margaret
      Grabel of one or more promissory note(s) in an aggregate amount not to
      exceed $1,600,000 as payment
        in respect of the compensation owing to either or both of Keith Grabel
        or Mary Margaret Grabel as employees and/or officers of Borrower pursuant
        to that certain Employment Agreement dated as of April 16, 2004 between
        Westwood Computer Corporation and Keith Grabel and/or that certain Employment
        Agreement dated as of April 16, 2004 between Westwood Computer Corporation
        and Mary Margaret Grabel (as applicable) (each such agreement, a “Grabel
        Employment Agreement”) so long
        as (i) any and all such promissory
        note(s) are issued within six (6) months of the Closing Date, (ii) the
        interest under any such promissory note(s) shall be payable monthly and
        shall accrue at a rate of no more than five percent (5.00%) per annum,
        (iii) the principal under any such promissory note shall be payable in
        equal monthly principal installments commencing in the first full calendar
        month following the issuance thereof according to a straight line/equal
        principal payment amortization schedule with a final monthly installment
        and maturity date during April 2009, (iv) no such promissory note shall
        provide for the payment of additional obligations or payments (including
        any type of revenue sharing payments) (excluding customary provisions for
        the payment by Borrower of costs and expenses of the holders of such notes
        and/or of indemnities in favor of such holders), (v) all other terms and
        provisions of such promissory note(s) and any related note or loan documents
        shall otherwise be reasonably acceptable to DLL in its Permitted Discretion,
        (vi) the Indebtedness under each such promissory note(s) shall be Subordinated
        Debt subject to, and each or both of Keith Grabel and/or Mary Margaret
        Grabel (as applicable) shall execute in favor of DLL, a Subordination Agreement
        reasonably acceptable to DLL in its Permitted Discretion, provided
        that, DLL shall agree in any such
        Subordination Agreement to permit the payment by Borrower of regularly 

13

  scheduled payments of principal
      and interest as provided for under each such promissory note absent the
      occurrence and continuance of an Event of Default, and (vii) each such
      promissory note shall bear a legend reasonably acceptable to DLL in its
      Permitted Discretion indicating that such promissory note is subject to
      the subordination agreement in favor of DLL described in the foregoing
      clause (vi); and 

                                                    (b)           it shall consent to and approve
      of the issuance by Borrower to DARR Global Holdings, Inc. (“DARR Global”) of a promissory
        note in an amount not to exceed $875,000 as payment in full of all
        past, current and future obligations of Westwood Computer Corporation to
        DARR Global under that certain Management Services Agreement dated as of
        April 16, 2004 between Westwood Computer Corporation and DARR Global (the “DARR
        Management Agreement”) so long
        as (i) such promissory note is issued
        within six (6) months of the Closing Date, (ii) the interest under any
        such promissory note shall be payable monthly and shall accrue at a rate
        of no more than five percent (5.00%) per annum, (iii) the principal under
        any such promissory note shall payable in equal monthly principal installments
        commencing in the first full calendar month following the issuance thereof
        according to a straight line/equal principal payment amortization schedule
        with a final monthly installment and maturity date during April 2009, (iv)
        no such promissory note shall provide for the payment of additional obligations
        or payments (including any type of revenue sharing payments) (excluding
        customary provisions for the payment by Borrower of costs and expenses
        of the holders of such notes and/or of indemnities in favor of such holders),
        (v) all other terms and provisions of such promissory note(s) and any related
        note or loan documents shall otherwise be reasonably acceptable to DLL
        in its Permitted Discretion, (vi) the Indebtedness under any such promissory
        note shall be Subordinated Debt subject to, and DARR Global shall execute
        in favor of DLL, a Subordination Agreement reasonably acceptable to DLL
        in its Permitted Discretion, provided
        that, DLL shall agree in any such
        Subordination Agreement to permit the payment by Borrower of regularly
        scheduled payments of principal and interest as provided for under any
        such promissory note absent the occurrence and continuance of an Event
        of Default and (vii) any such promissory note shall bear a legend reasonably
        acceptable to DLL in its Permitted Discretion indicating that such promissory
        note is subject to the subordination agreement in favor of DLL described
        in the foregoing clause (vi) and (viii) DARR Global shall execute and deliver
        to Borrower at the time any such promissory note is issued a written agreement
        providing that upon the issuance of such promissory note, the DARR Management
        Agreement will be terminated in full and all of the obligations of Westwood
        Computer Corporation to DARR Global thereunder shall be deemed to have
        been satisfied in full. 

   Borrower shall not make any payments
      of any kind, whether or principal, interest or otherwise and whether regularly
      scheduled, upon maturity or acceleration or otherwise, in respect of any
      such Indebtedness for borrowed money existing from time to time owing to
      any Affiliate, shareholder (or former shareholder), employee (or former
      employee), officer (or former officer) or director (or former director)
      of any Borrower entity, or any relative of any of the foregoing, unless
      and except as and if expressly permitted pursuant to the Subordination
      Agreement executed between such insider/affiliated creditor and DLL; provided
      however that, notwithstanding anything to the contrary contained in the
      foregoing, (x) DLL shall not require, and Borrower shall not be obligated
      to obtain or deliver, a Subordination Agreement from Joyce Tischler regarding
      the Indebtedness owing to Joyce Tischler pursuant to that certain Separation
      Agreement dated April 16, 2004 between Joyce Tischler and Westwood Computer
      Corporation (“Tischler Separation Indebtedness”) and such Tischler
      Separation Indebtedness shall be permitted under this Agreement regardless
      of the fact that it is not Subordinated Debt and (y) Borrower may, at any
      time and from time to time as it may elect, make payments to Joyce Tischler
      in such amounts as Borrower may elect (including any regularly scheduled
      payment thereof or any full or partial prepayment thereof) so long as,
      at the time of any such proposed payment and after giving effect thereto,
      no Default or Event of Default shall have occurred and remain outstanding
      and no such Default or Event of Default would occur as a result of the
      making of such proposed payment. 

14

NEGATIVE COVENANTS (SECTION 6.2):

  Permitted Loans and Investments (Section
      6.2.2):

   Loans and advances to employees
      in the ordinary course of Borrower’s business consistent with past
      practices provided that the
      outstanding principal amount of any such individual loan or advance at
      any time shall not exceed Two Hundred Fifty Thousand Dollars ($250,000)
      and that the aggregate principal amount of all such loans and advances
      outstanding at any one time shall not exceed Two Hundred Fifty Thousand
      Dollars ($250,000).  

   Intercompany loans owing from one
      Borrower entity to another Borrower entity and guarantees by one Borrower
      entity of any Indebtedness of another Borrower entity permitted to be outstanding
      under Section 6.2, in each case in the ordinary course of business consistent
      with the past practices of the Borrower entities. 

   Investments by any Borrower entity
      in any of the following: (a) obligations issued or guaranteed by the United
      States of America or any agency thereof, (b) commercial paper with maturities
      of not more than 180 days and a published rating of not less than A-1 or
      P-1 (or the equivalent rating), (c) certificates of time deposit and bankers’ acceptances
      having maturities of not more than 180 days and repurchase agreements backed
      by United States government securities of a commercial bank if (i) such
      bank has a combined capital and surplus of at least $500,000,000, or
      (ii) its debt obligations, or those of a holding company of which it is
      a Subsidiary, are rated not less than A (or the equivalent rating) by a
      nationally recognized investment rating agency, and (d) U.S. money market
      funds that invest solely in obligations issued or guaranteed by the United
      States of America or an agency thereof 

   Permitted Dividends and Distributions (Section
      6.2.3):

   At any time, dividends may be paid
      by any wholly-owned direct or indirect Subsidiary of Borrower (including
      any such wholly-owned Subsidiary of a Borrower entity that is also a Borrower
      entity hereunder) to its parent Borrower (and/or to any intermediate wholly-owned
      direct or indirect Subsidiary of such parent Borrower). 

   Borrower may also make other distributions
      and dividends to its shareholders so long as both prior and after giving
      effect to any such distribution or dividend, no Event of Default, or event
      that with the passage of time or giving of notice or both with become an
      Event of Default, has occurred and is continuing or will occur, and, without
      limiting the generality of the foregoing, Borrower is and will be and remain
      in compliance with the financial covenants set forth in Section 6.1.13
      above. 

   Existing Guarantees as of
          the Closing Date (Section
          6.2.5):

  NONE

   Maximum Permitted Compensation
          to Executives, Officers and Directors (Section
          6.2.9): 

   Notwithstanding anything to the
      contrary in Section 6.2.9 of the Agreement, no such limitation on compensation
      to executives, officers and directors shall be effective so long as all
      such compensation shall be paid in the ordinary course of business consistent
      with past practices or as may be approved from time to time by the compensation
      committee of Emtec Parent. 

  Capital Expenditures (Section
6.2.10).

15

  Borrower and its Subsidiaries shall
      not make or incur any Capital Expenditure if, after giving effect thereto,
      the aggregate amount of all Capital Expenditures by Borrower and its Subsidiaries
      in any fiscal year would exceed One Million Five Hundred Thousand Dollars
      ($1,500,000). If from time to time more than one Person is named as
      the Borrower above, or hereafter becomes a Borrower hereunder by means
      of a joinder, amendment or other modification hereto, compliance with the
      provisions of Section 6.2.10 of the Agreement shall be computed on a consolidated
      basis for all Borrower entities taken as a whole.

  Indebtedness (Section
  6.2.11):

   If from time to time more than
      one Person is named as the Borrower above, or hereafter becomes a Borrower
      hereunder by means of a joinder, amendment or other modification hereto,
      compliance with the provisions of Section 6.2.11 of the Agreement shall
      be computed on a consolidated basis for all Borrower entities taken as
      a whole. 

   Purchase Money Indebtedness (including
      Capital Leases) for Capital Expenditures:

   One Million Five Hundred Thousand
      Dollars ($1,500,000) outstanding at any one time.

 

	          	
      Other Specific Indebtedness: 
      
	 
		
Intercompany loans owing from one Borrower entity to another 
	
	 	 

		 
		
Borrower entity in the ordinary course of business consistent 
	
	 	 

		 
		
with the past practices of the Borrower entities. 
	
	 

	
	 	 

		 
		
Indebtedness owing to Wachovia Bank, National Association, in 
	
	 	 

		 
		
connection with that certain standby letter of credit 
	
	 	 

		 
		
#SM215639W issued by Wachovia for the account of Borrower 
	
	 	 

		 
		
to beneficiary Vandergrand Properties Co., L.P. in the face 
	
	 	 

		 
		
amount of $150,000 (or any similar letter of credit issued in the 
	
	 	 

		 
		
same face amount to such beneficiary in replacement of or 
	
	 	 

		 
		
substitution for this specified letter of credit). 
	
	 	 	 	 
	 	 

		 
		
Indebtedness owing to MRA Systems, Inc. (d/b/a GE Access) 
	
	 	 

		 
		
with respect to any Inventory of Borrower purchased from and 
	
	 	 

		 
		
financed by MRA Systems, Inc. (d/b/a GE Access) but only so 
	
	 	 

		 
		
long as such MRA Intercreditor Agreement shall remain in full 
	
	 	 

		 
		
force and effect among the parties thereto. 
	
	 

	
	 	 

		 
		
The Tischler Separation Indebtedness as described and provided 
	
	 	 

		 
		
for in Section 6.1.15 above. 
	

  Affiliate Transaction (Section
      6.2.12): 

   Intercompany loans owing from one
      Borrower entity to another Borrower entity and guarantees by one Borrower
      entity of any Indebtedness of another Borrower entity permitted to be outstanding
      under Section 6.2.11, in each case to the extent permitted by Section 6.2.2
      and 6.2.11. 

   Intercompany sales and other transfers
      of inventory from one Borrower entity to another Borrower entity in the
      ordinary course of business consistent with the past practices of the Borrower
      entities. 

   Westwood Computer Corporation may
      continue to pay management fees to Darr Global Holdings, Inc. as provided
      for under that certain Management Services Agreement dated April 16, 2004
      between Westwood Computer Corporation and Darr Global Holdings, Inc. so
      long as both prior and after giving 

16 

  effect to any such payment, no Event
      of Default, or event that with the passage of time or giving of notice
      or both with become an Event of Default, has occurred and is continuing
      or will occur, and, without limiting the generality of the foregoing, Borrower
      is and will be and remain in compliance with the financial covenants set
      forth in Section 6.1.13 above. 

   Borrower may continue to make rental
      payments to Affiliates with respect to business locations leased from such
      Affiliates as described in the 10-K Annual Report for the Fiscal Year ending
      August 31, 2005 filed by Emtec Parent.

  Issuance of Stock (Section
  6.2.19)

   Emtec Parent may issue additional
      shares of capital stock without the prior written approval of DLL so long
      as (i) neither the issuance of such stock nor the consummation of the transactions
      related to such issuance (including any underwriting or sale thereof) will
      not result in a “Change of Control” event prohibited by Section
      7.1(n) of the Agreement and (ii) no such capital stock so issued shall
      consist of stock which is subject to (x) a mandatory redemption or “put” right
      in favor of the holders thereof or (y) a mandatory dividend the payment
      of which is required, in each case if the rights to receive payments in
      respect of such mandatory redemption or “put” rights or mandatory
      dividend will mature and such payments will be due and payable prior to
      the expiration of the Term of this Agreement as in effect when such stock
      is issued (provided that, for the avoidance of doubt, the terms of the foregoing clause
      (y) shall not be deemed to include or prohibit the issuance of any class
      of stock that provides for a stated or fixed dividend, even if such dividends
      shall accrue and be cumulative if unpaid, so long as the rights of the
      holders of such stock to receive such dividend shall mature and such dividend
      shall be payable only if, when and as declared by the Board of Directors
      of Emtec Parent). 

  

 

DEFAULT AND REMEDIES (SECTION 7):

           Judgments (Section 7.1(i)): Any judgment in an amount large enough that the payment or satisfaction thereof could result in a Material
Adverse Effect.

           Change of Control Restrictions (Section 7.1(n)): A prohibited Change of Control shall occur under Section 7.1(n) of the Agreement upon the
occurrence of any of the following events: (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), excluding Dinesh Desai and/or Keith R. Grabel and/or Mary Margaret Grabel (the “Permitted Investors”), shall become, or obtain rights (whether by means or warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the
Exchange Act), directly or indirectly, of more than [twenty percent (20%) of the outstanding common interests of Emtec Parent, or (b) the board of directors of Emtec Parent shall cease to consist of a majority of Continuing Directors (as defined
below; or (e) Emtec Parent shall cease to own and control, directly or indirect, one hundred percent (100%) of all of the equity interests of each other Borrower entity. “Continuing Directors” shall mean the directors of Emtec Parent on the Closing Date and each other director of Emtec Parent, if, in each case, such other director’s nomination for election to the board of directors of Emtec Parent is
recommended by at least 66 % of the then Continuing Directors or such other director receives the vote of the Permitted Investors in his or her election by the shareholders of the
Parent. 

 

BORROWER REPORTING REQUIREMENTS (SECTION 9.1(b)) 

Borrower shall deliver the following reports and information to DLL within the time periods specified below:

17

          (a)           in connection with each request by Borrower for a Revolving Credit Loan and in any event, no less frequently than on a weekly basis, DLL’s standard form collateral and loan report, which shall be accompanied by
accounts receivable certifications and notice of assignment documents and cash receipt and revenue reports as required by DLL from time to time (collectively, each a “Borrowing Base
Certificate”). 

          (b)           upon DLL’s reasonable request, copies of sales journals, cash receipt journals, and deposit slips, copies of all sales or services invoices, customer statements and credit memoranda issued, remittance advices and
reports, evidence of billing and copies of shipping and delivery documents. 

          (c)           [RESERVED]. 

          (d)
          within fifteen (15) days after the end of each month, (1) monthly agings (aged
from invoice date) and reconciliations of Receivables (with listings of concentrated
accounts), (2) monthly  agings (aged from invoice date)
of accounts payable, with outstanding and held check registers, and (3) monthly
perpetual inventory reports for the Inventory valued on a first  in, first out
basis at the lower of cost or market.

          (e)
          within thirty (30) days after the end of each month which is not also the last
month in a fiscal quarter or fiscal year, unaudited consolidated and consolidating
financial statements for  Borrower and its Consolidated Subsidiaries with respect
to the prior month and the year-to-date period ending as of such month with comparative
figures for the same monthly and year to date periods in the prior fiscal year
(as available), certified  by a senior financial officer of Borrower as fairly
representing the financial condition of Borrower and having been prepared on
a basis consistent with such statements prepared in prior months in accordance
with GAAP, except without footnotes and  subject to normal year-end audit adjustments
prepared. 

          (f)
          within forty-five (45) days after the end of each quarter which is not also the
last quarter in a fiscal year, unaudited consolidated and consolidating financial
statements for Borrower and  its Consolidated Subsidiaries, with respect to the
prior month and the year-to-date period ending as of such month, certified by
a senior financial officer of Borrower of Borrower and any subsidiaries of Borrower
(if any) as fairly representing the  financial condition of Borrower and having
been prepared on a basis consistent with such statements prepared in prior months
in accordance with GAAP, except without footnotes and subject to normal year-end
audit adjustments prepared, provided that, if Emtec
Parent shall obtain a valid extension of the time to file its 10-Q report for
such quarter with the SEC, the deadline hereunder for delivery of the financial
statements  required under this paragraph shall be extended through the last
day of such extension. 

          (g)
          within ninety (90) days after the end of each fiscal year of Borrower, audited
annual consolidated and consolidating financial statements for Borrower and its
Consolidated Subsidiaries,  prepared in accordance with GAAP, including balance
sheets, income and cash flow statements, and including comparative figures for
the prior fiscal year, accompanied by the unqualified report thereon of independent
certified public accountants  reasonably acceptable to DLL, provided
that, if Emtec Parent shall obtain a valid
extension of the time to file its 10-K report for such fiscal year with the SEC,
the deadline  hereunder for delivery of the financial statements required under
this paragraph shall be extended through the last day of such extension. Borrower
shall also deliver to DLL promptly upon receipt thereof any and all audit committee
report(s) or  management letter(s) (as applicable) provided by such accountants
to the audit committee of Emtec Parent or Emtec Parent’s management (as
applicable) in connection with the annual review of Borrower’s financial
statements 

          (h)
         prior to the end of each
fiscal year, projections of Borrower annual financial statements and operating
budgets (including income statement, balance sheets and cash flow statements,
by month) for the upcoming fiscal year of Borrower. 

          (i)          within ten (10) Business Days of the filing thereof, copies of Borrower signed
federal income tax return of Borrower for each tax year. 

          (j)           such certificates relating to the foregoing as DLL may request, including, without limitation, a 

18 

monthly certificate from the chief financial officer and another senior financial officer of Borrower (“Compliance Certificate”) showing Borrower's compliance with each of the financial covenants set forth in this Agreement, and stating whether any Event of Default, or event which, with giving of notice or
the passage of time, or both, would constitute an Event of Default, has occurred and if so, the steps being taken with respect thereto, and such other certificates relating to the reporting requirements set forth in this Section 9.1 as DLL shall
request. All reports or financial statements submitted by Borrower shall be in reasonable detail and shall be certified by the principal financial officer of Borrower as being true and correct.

          (k)           Borrower
shall make available to DLL (including by filing with the SEC on the expectation
that the SEC will promptly make such filing publicly available)  Emtec Parent’s
SEC Form 10-Q within forty-five (45) days after the end of each fiscal quarter
and SEC Form 10-K within ninety (90) days after the end of each fiscal year, provided
that, if Emtec Parent shall obtain a valid extension of the time to
file any such 10-Q report or 10-K report with the SEC, the deadline hereunder
for delivery of such report shall be extended through the last day of such extension,
and  Borrower shall also provide DLL with copies of each other filing or report
filed by Emtec Parent with the Securities and Exchange Commission within five
(5) days of the filing thereof. 

 

TERM (SECTION 9.2):

  The term of this Agreement shall
      be two (2) years from the date hereof (the “Term”),
      unless earlier terminated as provided in Section 7 or 9.2 above or elsewhere
      in this Agreement. 

  

 

TERMINATION FEE (SECTION 9.2):

[RESERVED]

 

DISBURSEMENT (SECTION 9.11): 

  Unless and until Borrower otherwise
      directs DLL in writing (which instructions may relate to one loan or to
      future loans generally), all loans shall be wired to Borrower's following
      operating account:

	          	
Name of Bank:	
Wachovia Bank, National Association
	 	 	 
	 	
Address of Bank:	
1525 West WT Harris Blvd, Charlotte, NC 28262\
	 	 	 
	 	
ABA Tracking Number: 	021200025
	 	 	 
	 	
Account Number:	
2100011513853
	 	 	 
	 	
Account Name:	
MAIN OPERATING / DISBURSEMENT ACCOUNT

 

BORROWING AGENT (SECTION 9.29): 

          Emtec, Inc. (the Delaware corporation) 

 

ADDITIONAL PROVISIONS AND COVENANTS: 

Post Closing Conditions and Covenants. 

          Borrower and DLL acknowledge that as of the Closing Date, Borrower was unable to satisfy certain of the conditions precedent to closing set forth in Section 4.1 of this Agreement and
that, as a result of Borrower’s inability to immediately take such actions and/or deliver such documents and/or otherwise fulfill such conditions, Borrower may fail to be in compliance with certain of the other covenants and provisions of this

19 

Agreement and the other Loan Documents. Borrower and DLL acknowledge that they have agreed to establish fixed time periods for the satisfaction of such conditions precedent under Section 4.1 and for Borrower to come into
compliance with those other related covenants and provisions. Therefore, as a condition to the effectiveness of this Agreement, Borrower and DLL hereby agree that, notwithstanding anything to the contrary set forth in this Agreement or any Loan
Document, specifically including without limitation anything set forth in Section 4.1 of this Agreement, Borrower shall fulfill the following conditions (the “Post Closing Conditions”) within the respective time periods set forth below:  

          A:           Within sixty (60) days following the Closing Date, Borrower shall
    deliver to DLL the landlord waiver required under item #1 in Section 4.1
    of this Schedule above with respect to the location in Suwanee, GA provided that, if Borrower shall be unable to deliver such landlord waiver within such time period despite using its commercially
  reasonable best efforts to satisfy this requirement, and if DLL determines that it is reasonably likely that Borrower will be able to obtain such landlord waiver within a reasonably short period of time following the expiration of such sixty (60)
  day period, DLL shall extend such deadline by the reasonably anticipated additional time needed to obtain the applicable waiver. Notwithstanding anything to the contrary contained in the foregoing, Borrower acknowledges that if Borrower is unable to
  provide such landlord waiver by the end of such sixty (60) day period, then, regardless of whether such sixty (60) day period may have been extended with respect to such location in accordance with the proviso of the foregoing sentence, DLL may in
  its Permitted Discretion establish appropriate Loan Reserves with respect to up to three (3) months of the rent and any other obligations owing or to become owing to the landlord for such location. 

          B:           Within thirty (30) days following the Closing Date, Borrower shall deliver to DLL copies of the subordinated promissory notes issued by Westwood Computer Corporation and Emtec Viasub LLC in favor of Darr Westwood LLC
and the subordinated promissory note issued by Westwood Computer Corporation in favor of Four Kings Management LLC, in each case as described Item #4(b) in Section 4.1 of this Schedule, showing that the legends required pursuant to the respective
Subordination Agreements executed by each of Darr Westwood LLC and Four Kings Management LLC have been added thereto.

          C:           Within thirty (30) days following the Closing Date, Borrower shall deliver to DLL (i) one or more original stock certificates (together with corresponding stock powers undated and executed in blank) representing all of
the shares of capital stock of Emtec, Inc. (the New Jersey corporation) pledged to DLL by Emtec Parent under the Collateral Pledge Agreement dated as of the Closing Date executed by Emtec Parent in favor of DLL and (ii) one or more original stock
certificates (together with corresponding stock powers undated and executed in blank) representing all of the shares of capital stock of Westwood Computer Corporation pledged to DLL by Emtec Viasub LLC under the Collateral Pledge Agreement dated as
of the Closing Date executed by Emtec Viasub LLC in favor of DLL. 

          D.           Within sixty (60) days following the Closing Date (unless such date is extended in writing by DLL in the exercise of its Permitted Discretion), Borrower shall execute and deliver, and cause Bank of America to execute
and deliver, one or more deposit account control agreements acceptable to DLL in its reasonable discretion which shall provide DLL with “control” (as defined in the Code) with respect to each such Deposit Account of Borrower maintained at
Bank of America, provided that, if Borrower, using its commercially reasonable efforts, has not been able to satisfy the requirements of the foregoing clause (i) by such date
(including any applicable extension of such date), Borrower may instead comply with the provisions of this paragraph D by closing any and all such Deposit Accounts maintained with Bank of America and transferring all funds previously held therein to
one or more Deposit Accounts at PNC Bank, National Association and/or Wachovia Bank, National Association that are subject to such a deposit account control agreements providing DLL with “control” (as defined in the Code) with respect to
each such Deposit Account (or to one or more Deposit Accounts with any other bank that will agree to execute such a deposit account control agreement in favor of DLL). 

 

20

          E.           Within thirty (30) days following the Closing Date, Borrower shall deliver to DLL a good standing certificate with respect to each Borrower entity from each jurisdiction in which such Borrower is qualified to do
business as a foreign corporation/entity and for which Borrower did not deliver such a good standing certificate on the Closing Date. 

          Borrower and DLL hereby further agree that failure by Borrower to fully comply with and satisfy the provisions of and conditions set forth in this section regarding Post Closing Conditions and Covenants within the
respective time periods stated shall constitute an Event of Default under this Agreement and shall entitle DLL to exercise any and all remedies DLL may have under this Agreement or any other Loan Document, at law or in equity as a result of the
occurrence of such an Event of Default. 

 

[SIGNATURES ON FOLLOWING PAGE]

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

21

      IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto have executed this Schedule to Loan and Security Agreement as of the date first set forth above. 

Executed under Seal by: 

BORROWER: 

EMTEC INC. (a Delaware corporation) 

Tax I.D. No. 87-0273300 

 

By: Stephen C. Donnelly  (SEAL) 

    Name: Stephen C. Donnelly 

    Title:      President
or Vice President 

EMTEC INC. (a New Jersey corporation) 

Tax I.D. No. 22-3386933 

By: Stephen C. Donnelly  (SEAL) 

    Name: Stephen C. Donnelly 

    Title:      President
or Vice President 

EMTEC VIASUB LLC (a Delaware limited liability company) 

Tax I.D. No. 68-0614277 

 

By: Stephen C. Donnelly  (SEAL) 

    Name: Stephen C. Donnelly 

    Title:      President or Vice President 

  WESTWOOD COMPUTER CORPORATION 

(a New Jersey corporation) 

Tax I.D. No. 82-1913563 

By: Stephen C. Donnelly  (SEAL) 

    Name: Stephen C. Donnelly 

    Title:      President
or Vice President

 [Signature Page 1 of 2 to De Lage Landen/Emtech Schedule to Loan Agreement] 

22 

DE LAGE LANDEN FINANCIAL SERVICES, INC. 

By:  /s/ Michael L. Jordan                    (SEAL)

Name:   Michael L. Jordan                     

Title:     Credit Process Manager          

 

[Signature Page 2 of 2 to De Lage Landen/Emtech Schedule to Loan Agreement]

23

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