Document:

Senior Secured Credit Facilities Commitment Letter, dated as of July 11, 2006

 Exhibit 10.1 
 CITIGROUP GLOBAL MARKETS INC. 
 390 Greenwich Street 
 New York, New York 10013 
 CONFIDENTIAL 
 July 11, 2006 
 Secure
Computing Corporation 
 4810 Harwood Road 
 San Jose, CA 95124 
 Attn: Tim Steinkopf, Chief Financial Officer 
 Project Savannah 
 Senior Secured Credit Facilities 
 Commitment Letter 
 Ladies and Gentlemen: 
  

	1.	Secure Computing Corporation, a Delaware corporation (the “Borrower” or “you”) has advised Citigroup (as defined below) that you propose to acquire
(the “Acquisition”) all of the outstanding capital stock of CipherTrust, Inc., a Georgia corporation (the “Acquired Business”). The Acquisition and the Credit Facilities (as defined below) are referred to herein as
the “Transactions.” For purposes of this Commitment Letter, “Citigroup,” “we” or “us” means Citigroup Global Markets Inc. (“CGMI”), Citibank, N.A., Citicorp USA, Inc., Citicorp North
America, Inc. and/or any of their affiliates as may be appropriate to consummate the transactions contemplated herein. 

  

	2.	 You have also advised us that you propose to finance a portion of the purchase price of the Acquisition, pay related transaction fees and expenses and provide for
ongoing working capital requirements of the Borrower and its subsidiaries with a package of debt financings in an aggregate principal amount of up to $135.0 million. You have requested senior secured first priority credit facilities consisting of
(a)(i) a senior secured first prior-ity term loan facility to Borrower of up to $90.0 million (the “First Priority Term Loan Facility”), as described in the Summary of Principal Terms and Conditions attached hereto as Annex
A-I (the “First Priority Term Sheet”) and (ii) a senior secured first priority revolving credit facility to Borrower of up to $20.0 million (the “Revolving Credit Facility” and, together with the First Priority
Term Loan Facility, the “First Priority Facilities”), as described in the First Priority Term Sheet and (b) a senior secured second priority term loan facility to Borrower of up to $25.0 million (the “Second Priority
Facility” and, together with the First Priority Term Loan Facility, the “Term Loan Facilities”; the Term Loan Facilities and the Revolving Credit Facility being collectively referred to as the “Credit
Facilities”), as described in the Summary of Principal Terms and Conditions attached hereto as Annex A-II (the “Second Priority Term Sheet”). The date on which 

 
the Acquisition, the advances and fundings under the Credit Facilities and the other elements of the Transactions are consummated shall be referred to as the
“Closing Date.” 
  

	3.	Based upon and subject to the foregoing and to the terms and conditions set forth below, set forth in the First Priority Term Sheet and the Second Priority Term Sheet and set forth
in the Conditions Precedent to the Closing Date contained in Exhibit B (collectively, the “Term Sheets”; and, together with this letter agreement, the “Commitment Letter”), Citigroup, acting alone or through
or with affiliates selected by it, is pleased to confirm to you its commitment to provide the entire principal amount of the Credit Facilities on the principal terms set forth herein and in the Term Sheets (such commitments being herein referred to
as the “Commitment”). 

  

	4.	The Commitment of the Citigroup and the undertakings of Citigroup hereunder are subject to (a) your written acceptance, and compliance with the terms and conditions, of a
letter from Citigroup to you of even date herewith (the “Fee Letter”) pursuant to which you agree to pay, or cause to be paid, to Citigroup certain fees in connection with the Credit Facilities; (b) there not having occurred a
Material Adverse Effect on the Company (as defined in the Acquisition Agreement (as defined in Exhibit B)) since December 31, 2005; (c) there not having occurred a Material Adverse Effect on Parent (as defined in the Acquisition
Agreement) since December 31, 2005; (d) Citigroup shall have had the opportunity to perform and be satisfied with the results of confirmatory due diligence with respect to the tax and accounting matters involving the Acquired Business; and
(e) satisfaction of all other conditions and requirements and the accuracy of representations described herein and in the Term Sheets. 

  

	5.	It is agreed that Citigroup, acting alone or through or with affiliates selected by it, will act as the sole bookrunner and the sole lead arranger for a syndicate of financial
institutions and other entities reasonably acceptable to Citigroup and you (together with Citigroup, the “Lenders”) that Citigroup intends to form to provide all or a portion of the Credit Facilities. You designate an affiliate of
Citigroup, as determined by Citigroup, as administrative agent for the Credit Facilities. Citigroup will perform the duties and exercise the authority customarily performed and exercised by it in such role. 

  

	6.	 You agree to use all commercially reasonable efforts to assist Citigroup in achieving a timely syndication of the Credit Facilities that is satisfactory to
Citigroup, which Citigroup intends to conduct before the Closing Date, and you agree that Citigroup shall have had a reasonable opportunity and reasonable period of time in which to complete such syndication. The syndication efforts will be
accomplished by a variety of means, including your facilitating direct contact during the syndication between senior management, advisors and affiliates of you and the Acquired Business, on the one hand, and the proposed Lenders, on the other hand,
and your hosting, with Citigroup and the Acquired Business, one or more meetings with prospective Lenders and various rating agencies at such times and places as we may reasonably request. You agree, upon our request, to use your commercially
reasonable efforts to (a) provide, and to cause your affiliates, advisors and, to the extent reasonably possible, the Acquired Business to provide, to Citigroup and each of the prospective Lenders all information reasonably requested by
Citigroup to successfully 

  

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complete the syndication, including the information and projections contemplated hereby, (b) assist, and cause your affiliates, advisors and the
Acquired Business to assist, Citigroup in the preparation of one or more confidential information memoranda and other marketing materials in accordance with customary banking industry practices, (c) obtain the rating agencies’ credit
ratings required by paragraph 7 below to be used in connection with the syndication and (d) make available your representatives and representatives of the Acquired Business on reasonable prior notice and at reasonable times and places. You also
agree to use your commercially reasonable efforts to assist our syndication efforts through your and the Acquired Business’s existing lending relationships. Citigroup reserves the right to engage the services of its affiliates in furnishing the
services to be performed as contemplated herein and to allocate (in whole or in part) to any such affiliates any fees payable to them in such manner as Citigroup and its respective affiliates may agree in their sole discretion. You agree that
Citigroup may share with any of its respective officers, affiliates and advisors any information related to the Transactions or any other matter contemplated hereby, subject to the confidentiality provisions set forth herein. 
  

	7.	You hereby agree to use commercially reasonable efforts to obtain for the Credit Facilities a debt rating from Moody’s Investors Service (“Moody’s”) and
from Standard & Poor’s Ratings Group (“S&P”). 

  

	8.	Citigroup (and/or one or more of its affiliates) will manage all aspects of the syndication of the Credit Facilities (in consultation with you), including decisions as to the
selection of potential Lenders reasonably acceptable to you to be approached and when they will be approached, when their commitments will be accepted, when Lenders reasonably acceptable to you will participate and the final allocations of the
commitments among the Lenders, and Citigroup will exclusively perform all functions and exercise all authority as customarily performed and exercised in such capacities, including selecting counsel for the Lenders and negotiating the definitive
credit agreement, guarantees, security arrangements and related documentation for the Credit Facilities consistent with the terms and conditions hereof and of the Term Sheets and otherwise in form and substance reasonably satisfactory to Citigroup
and to you (the “Credit Documentation”). Any agent, arranger or bookrunner titles awarded to other Lenders relating to the Credit Facilities are subject to Citigroup’s prior approval and in any event shall not entail any role
relating to the matters referred to in this paragraph without Citigroup’s prior consent. You agree that no Lender will receive compensation outside the terms contained herein and in the Fee Letter in order to obtain its commitment to
participate in the Credit Facilities. 

  

	9.	You hereby agree that, until the earlier of ninety (90) days after the Closing Date or the completion of successful syndication (as defined in the Fee Letter), there shall be
no competing issuance, or announcement of a competing issuance, of any securities, bank facilities or other debt of the Borrower, the Acquired Business or any of their respective subsidiaries being offered, placed or arranged, other than the Credit
Facilities, without the prior written consent of Citigroup. 

  

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	10.	You hereby represent and warrant that (a) all information (other than the Projections, as defined below) concerning you and your subsidiaries and, to your knowledge, the
Acquired Business and their subsidiaries and the Transactions (together, the “Information”) that has been or will be made available to Citigroup or the prospective Lenders and Lenders by you or any of your representatives, taken as
a whole, is, or will be when furnished, complete and correct in all material respects and, taken as a whole, does not, or will not when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements contained therein not materially misleading in light of the circumstances under which such statements are made, and (b) all financial projections concerning you and your subsidiaries and, to your knowledge, the Acquired
Business and their subsidiaries that have been or will be made available to Citigroup or the Lenders by you or any of your representatives (together, the “Projections”) have been or will be prepared in good faith based upon
reasonable assumptions at the time they were made (it being understood that future results of operations and financial condition may differ materially therefrom). You agree to supplement, or cause to be supplemented, the Information and the
Projections from time to time until the Closing Date so that the representations and warranties contained in the preceding sentence remain correct in all material respects. In syndicating the Credit Facilities, we will be entitled to use and rely
primarily on the Information and the Projections without responsibility for independent check or verification thereof. 

  

	11.	On the Closing Date (and only if the Closing Date occurs), you hereby agree to reimburse Citigroup for all of its reasonable out-of-pocket fees and expenses (including, without
limitation, all reasonable due diligence investigation expenses, fees of consultants, syndication expenses (including printing, distribution, and meetings with prospective Lenders), travel expenses, duplication fees and expenses, audit fees, search
fees, filing and recording fees and the reasonable fees, disbursements and other charges of counsel (including, without limitation, the reasonable fees, expenses and other charges of Cahill Gordon & Reindel LLP, as counsel to Citigroup (and
any necessary local or special counsel selected by them in connection with the Transactions), and any sales, use or similar taxes (and any additions to such taxes) related to any of the foregoing), incurred in connection with the preparation,
negotiation, execution and delivery, any waiver or modification and any collection or enforcement of this Commitment Letter, the Term Sheets, the Fee Letter and the Credit Documentation and all of the other transactions described herein and in any
definitive documentation and advice in connection therewith and thereafter from time to time on demand. 

  

	12.	 By your acceptance below, you hereby agree to indemnify and hold harmless Citigroup and the other Lenders and our and their respective affiliates (including,
without limitation, controlling persons) and the directors, officers, employees, advisors and agents of the foregoing (each, an “Indemnified Person”) from and against any and all losses, claims, costs, expenses, damages or
liabilities (or actions or other proceedings commenced or threatened in respect thereof) that arise out of or in connection with this Commitment Letter, the Term Sheets, the Fee Letter, the Credit Facilities or any of the transactions contemplated
hereby or thereby or the providing or syndication of the Credit Facilities (or the actual or proposed use of the proceeds thereof), and to reimburse each 

  

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Indemnified Person promptly upon its written demand for any legal or other expenses incurred in connection with investigating, preparing to defend or
defending against, or participating in, any such loss, claim, cost, expense, damage, liability or action or other proceeding (whether or not such Indemnified Person is a party to any action or proceeding); provided that any such obligation to
indemnify, hold harmless and reimburse an Indemnified Person shall not be applicable to the extent determined by a final, non-appealable judgment of a court of competent jurisdiction to have resulted primarily from the gross negligence or willful
misconduct of such Indemnified Person. You shall not be liable for any settlement of any such proceeding effected without your written consent, but if settled with such consent or if there shall be a final judgment against an Indemnified Person, you
shall, subject to the proviso in the first sentence of the preceding paragraph, indemnify such Indemnified Person from and against any loss or liability by reason of such settlement or judgment. You shall not, without the prior written consent of
any Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which such Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Person, unless such
settlement (i) includes an unconditional release of such Indemnified Person from all liability or claims that are the subject matter of such proceeding and (ii) does not include a statement as to or an admission of fault, culpability, or a
failure to act by or on behalf of such Indemnified Person. None of us or any other Lender (or any of their respective affiliates) shall be responsible or liable to Borrower, the Acquired Business or any of their respective subsidiaries, affiliates
or stockholders or any other person or entity for any indirect, punitive or consequential damages which may be alleged as a result of this Commitment Letter, the Term Sheets, the Fee Letter, the Credit Facilities or the transactions contemplated
hereby or thereby. 
  

	13.	Nothing contained herein shall limit or preclude Citigroup or any of its affiliates from carrying on any business with, providing banking or other financial services to, or from
participating in any capacity, including as an equity investor, in, any party whatsoever, including, without limitation, any competitor, supplier or customer of you, the Acquired Business or any of your or their affiliates, or any other party that
may have interests different than or adverse to such parties. 

  

	14.	You acknowledge that Citigroup and its affiliates (the term “Citigroup” as used in this paragraph being understood to include such affiliates) may be providing debt
financing, equity capital or other services (including financial advisory services) to other companies with which you, the Acquired Business or your or their respective affiliates may have conflicting interests regarding the Transactions and
otherwise. Citigroup will not use confidential information obtained from you or the Acquired Business in connection with the performance by Citigroup of services for other companies and will not furnish any such information to other companies. You
also acknowledge that Citigroup has no obligation in connection with the Transactions to use, or to furnish to you or the Acquired Business, confidential information obtained from other companies or entities. You further acknowledge and agree to the
disclosure by us (in consultation with you) of information relating to the Credit Facilities to “Gold Sheets” and other similar bank trade publications. 

  

 -5- 

	15.	This Commitment Letter, the Fee Letter and the contents hereof and thereof are confidential and, except for the disclosure hereof or thereof on a confidential basis to your or our
accountants, attorneys and other professional advisors retained in connection with the Transactions or as otherwise required by law, may not be disclosed in whole or in part by you or us to any person or entity without your or our prior written
consent; provided, however, it is understood and agreed that you may disclose (a) this Commitment Letter, but not the Fee Letter, on a confidential basis to the board of directors of, and advisors to, the Acquired Business in
connection with their consideration of the Transactions and (b) after your acceptance of this Commitment Letter and the Fee Letter, you may disclose such documents in any required filings with the Securities and Exchange Commission and other
applicable regulatory authorities and stock exchanges (with, if the Fee Letter is so required to be disclosed or filed, appropriate redactions in the Fee Letter acceptable to us). In addition, the Citigroup shall be permitted to use (in consultation
with you) information related to the syndication and arrangement of the Credit Facilities in connection with marketing, press releases or other transactional announcements or updates provided to investor or trade publications. Notwithstanding the
foregoing, Citigroup, the Lenders and their affiliates may disclose the Commitment Letter, the Fee Letter and the contents hereof and thereof (1) on a confidential basis to their affiliates or any of their or their affiliates’ directors,
officers, employees, advisors, representatives, attorneys, accountants, and auditors (collectively, the “Representatives”) whom they determine need to know such information in connection with the Transactions, (2) to any
governmental agency or regulatory body having or claiming to have authority to regulate or oversee any aspect of any of their business or that of their Representatives in connection with the exercise of such authority or claimed authority,
(3) except the Fee Letter and the contents thereof, to any bank or financial institution or other entity to which any of Citigroup, the Lenders, or any of their affiliates has sold or desires to sell an interest or participation in the
Transactions, provided that any such recipient agrees to keep the material confidential, (4) to the extent necessary or appropriate to effect or preserve the security (if any) for any loan or other extension of credit or to enforce any
right or remedy or in connection with any claims asserted by or against any of them or any of their Representatives or you or any other person or entity involved in the Transactions, (5) if any of them is requested or required (orally or in
writing, by interrogatory, court order, subpoena, administrative proceeding, civil investigatory demand, or any similar legal or regulatory process) to disclose any of such material and (6) to the extent such material becomes publicly available
other than as a result of a breach of this provision. Furthermore, Citigroup hereby notifies you that pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Patriot
Act”), it is required to obtain, verify and record information that identifies you in accordance with the Patriot Act. 

  

	16.	 The provisions of paragraphs 11, 12, 13, 14, 15 and 20 shall survive any termination or expiration of this Commitment Letter or the Commitment of Citigroup or the
undertakings of Citigroup set forth herein, and the provisions of paragraphs 6, 7, 8, 9 and 10 shall survive until completion of primary syndication of the Credit Facilities (as determined by Citigroup). If definitive documentation relating to the
Credit Facilities shall be executed and delivered, your obligations under this Commitment Letter in respect of the Credit Facilities, other than those relating to confidentiality, no competing issuance and to the syndication 

  

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(including provision of supplemental Information and Projections) of such Credit Facilities (which shall remain in full force and effect), shall
automatically terminate and be superseded by the provisions contained in such definitive documentation upon the execution and delivery thereof. 
  

	17.	This Commitment Letter and the Commitment of Citigroup and the undertakings of Citigroup set forth herein shall, in the event this Commitment Letter is accepted by you as provided
in paragraph 20 hereof, automatically terminate at 5:00 p.m. (New York time) on October 31, 2006, if the consummation of the Acquisition and the other elements of the Transactions, including the initial funding under the Credit Facilities,
shall not have occurred by such time. 

  

	18.	This Commitment Letter and the commitments, undertakings and agreements hereunder shall not be assignable by any party hereto without the prior written consent of the other parties
hereto, and any attempted assignment shall be void and of no effect; provided, however, that nothing contained in this paragraph shall prohibit us in our sole discretion from (a) performing any of our duties hereunder through any
of our affiliates, and you will owe any related duties (including those set forth above) to any such affiliate, and (b) granting participations in, or selling (in consultation with you) assignments of all or a portion of, the Commitment or the
advances under the Credit Facilities pursuant to arrangements reasonably satisfactory to us (provided that we shall remain obligated hereunder). This Commitment Letter is solely for the benefit of the parties hereto and does not confer any
benefits upon, or create any rights in favor of, any other person. 

  

	19.	Any notice given pursuant to this Commitment Letter shall be mailed or hand delivered in writing, if to (a) you, at your address set forth on page one hereof, with a copy to
John McNulty; and (b) Citicorp North America, Inc. and Citigroup Global Markets Inc., at 390 Greenwich Street, New York, New York 10013, Attention: David J. Wirdnam. 

  

	20.	 THIS COMMITMENT LETTER AND THE FEE LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, AND TOGETHER CONSTITUTE THE
ENTIRE AGREEMENT BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ANY PREVIOUS AGREEMENT, WRITTEN OR ORAL, BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF. EACH OF THE PARTIES HERETO
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER, THE FEE LETTER, EACH ELEMENT OF THE TRANSACTIONS OR THE PERFORMANCE BY
US OR ANY OF OUR AFFILIATES OF THE SERVICES CONTEMPLATED HEREBY. IN ADDITION, WITH RESPECT TO ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS COMMITMENT LETTER, THE FEE LETTER OR THE TRANSACTIONS OR THE PERFORMANCE OF ANY OF THE PARTIES
HEREUNDER, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY 

  

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(A) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK, NEW YORK; (B) AGREES THAT ALL CLAIMS WITH
RESPECT TO SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURT; (C) WAIVES THE DEFENSE OF ANY INCONVENIENT FORUM TO SUCH NEW YORK STATE OR FEDERAL COURT; (D) AGREES THAT A FINAL JUDGMENT IN ANY
SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANOTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; (E) TO THE EXTENT THAT SUCH PARTY OR ITS PROPERTIES OR ASSETS HAVE OR HEREAFTER MAY HAVE
ACQUIRED OR BE ENTITLED TO IMMUNITY (SOVEREIGN OR OTHERWISE) FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OF NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT OR FROM EXECUTION OF
A JUDGMENT OR OTHERWISE), FOR SUCH PARTY OR ITS PROPERTIES OR ASSETS, AGREES NOT TO CLAIM ANY SUCH IMMUNITY AND WAIVES SUCH IMMUNITY; AND (F) CONSENTS TO SERVICE OF PROCESS BY MAILING OR DELIVERING A COPY OF SUCH PROCESS TO SUCH PARTY AT ITS
ADDRESS SET FORTH ON THE FIRST PAGE OF THIS COMMITMENT LETTER AND AGREES THAT SUCH SERVICE SHALL BE EFFECTIVE WHEN SENT OR DELIVERED. This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in
writing signed by each of the parties hereto. This Commitment Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement. Delivery of an executed
counterpart of a signature page to this Commitment Letter by facsimile shall be effective as delivery of a manually-executed counterpart. 
  

	21.	The Borrower and each Guarantor (as defined in Exhibit A) acknowledge and agree that in connection with all aspects of the Transactions contemplated by this Commitment Letter, the
Borrower, each Guarantor and Citigroup have an arm’s-length business relationship that creates no fiduciary duty on the part of Citigroup and the Borrower and each Guarantor expressly disclaims any fiduciary relationship.

 [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] 
  

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 If you are in agreement with the foregoing, please indicate acceptance of the terms hereof by signing the
enclosed counterpart of this Commitment Letter and returning it to Citigroup, together with an executed counterpart of the Fee Letter, by no later than 5:00 p.m. (New York time) on July 11, 2006. This Commitment Letter, the Commitment of
Citigroup and the undertakings of Citigroup set forth herein shall automatically terminate at such time unless signed counterparts of this Commitment Letter and the Fee Letter shall have been delivered to Citigroup in accordance with the terms of
the immediately preceding sentence. 
  

			
	 Sincerely,
	 	
	
	 CITIGROUP GLOBAL MARKETS INC.

		
	 By:
	 	 /s/ David J. Wirdnam

	 Name:
	 	 David J. Wirdnam

	 Title:
	 	 Director

	
	 SECURE COMPUTING CORPORATION

		
	 By:
	 	 /s/ John McNulty

	 Name:
	 	 John McNulty

	 Title:
	 	 Chairman, President and CEO

 EXHIBIT A-I 
 $110,000,000 
 SENIOR SECURED CREDIT FACILITIES 
 SUMMARY OF PROPOSED TERMS AND CONDITIONS 
 Capitalized terms not otherwise defined herein have the same meanings specified in the Commitment Letter to which this Summary of Proposed Terms and Conditions is attached. 
  

					
	 Borrower:
	  	Secure Computing Corporation, a Delaware corporation (the “Borrower”).
		
	 Sole Lead Arranger:
	  	Citigroup Global Markets Inc. will act as sole lead arranger for the Credit Facilities (as defined below) (in such capacity, the “Lead Arranger”), and will perform
the duties customarily associated with such role.
		
	 Sole Bookrunner:
	  	Citigroup Global Markets Inc. will act as sole bookrunner for the Credit Facilities, and will perform the duties customarily associated with such role.
		
	 Administrative Agent:
	  	An affiliate of Citigroup will act as sole administrative agent and collateral agent for the Lenders (as defined below) (in such capacities, collectively, the “Administrative
Agent”), and will perform the duties customarily associated with such roles.
		
	 Lenders:
	  	A syndicate of financial institutions and other entities (each, a “Lender” and, collectively, the “Lenders”) arranged by the Lead Arranger and
reasonably acceptable to the Borrower.
		
	 Credit Facilities:
	  	Senior first priority secured credit facilities (the “First Priority Facilities”) in an aggregate principal amount of up to $110.0 million, such First Priority
Facilities comprising:
			
		  	 (a)    
	  	First Priority Term Loan. A first priority term loan B facility in an aggregate principal amount of up to $90.0 million (the “First Priority Term Loan Facility”);
and
			
		  	 (b)    
	  	Revolving Credit Loans. A first priority revolving credit facility (with a subfacility for letters of credit in an amount to be agreed and a sub-facility

  

 A-I-1 

			
		  	 for swingline loans in an amount to be agreed, each on customary terms and conditions with compensation to be agreed (it being understood that, any swingline
borrowings will reduce availability under the Revolving Credit Facility on a dollar-for-dollar basis)) in an aggregate principal amount of $20.0 million (the “Revolving Credit Facility”).

		
	Use of Proceeds:	  	The proceeds of the First Priority Facilities shall be used, together with the proceeds of the Second Priority Facility, to (a) finance the Transactions; (b) pay related fees and
expenses incurred in connection with the Transactions; and (c) provide ongoing working capital and for other general corporate purposes of the Borrower and its subsidiaries.
		
	Availability:	  	Advances under the First Priority Term Loan Facility will be available in a single draw on the Closing Date. Advances repaid or prepaid may not be reborrowed.
		
		  	The entire amount of advances under the Revolving Credit Facility will be available after the Closing Date for working capital and general corporate purposes of the Borrower and its
subsidiaries. Advances repaid or prepaid may be reborrowed.
		
	Documentation:	  	The documentation for the First Priority Facilities will include, among others, a credit agreement (the “First Priority Credit Agreement”), guarantees and appropriate pledge,
security, mortgage and other collateral documents and an intercreditor agreement (collectively, the “First Priority Credit Documentation”) and containing the definitions set forth in Annex II hereto and customary terms for
facilities of such type. The Borrower and the Guarantors (as defined below under “Guarantors”) are herein referred to as the “Loan Parties” and individually as a “Loan Party.”
		
	Guarantors:	  	The obligations of the Borrower under the First Priority Facilities and under any interest rate protection or other hedging arrangements entered into with the Administrative Agent, the Lead
Arranger, a Lender or any affiliate of the foregoing (“Hedging Arrangements”) shall be unconditionally guaranteed, on a joint and several basis, by each direct and indirect wholly owned domestic subsidiary of the Borrower (each a
“Guarantor”; and its guarantee is referred to herein as a “Guarantee”).

  

 A-I-2 

			
	Security:	  	There shall be granted to the Administrative Agent and the Lenders valid and perfected first priority (subject to the second priority liens securing the obligations under the Second Priority
Credit Documentation pursuant to an intercreditor agreement customary for transactions of this kind and subject to certain other exceptions to be set forth in the First Priority Credit Documentation) liens and security interests in all of the
following:
		
		  	 (a)    All present and future shares of capital stock (or other ownership or profit interests in) of each of the
Borrower’s present and future domestic subsidiaries and 65% of the capital stock of Borrower’s and such subsidiaries’ first-tier foreign subsidiaries;

		
		  	 (b)    Substantially all of the material tangible and intangible properties and assets (including but not limited to
all equipment, inventory, receivables, contract and other intangible rights, material owned real property, cash and deposit accounts, intellectual property and proceeds of the foregoing and excluding, without limitation, vehicles, leaseholds,
contracts that contain a valid and enforceable prohibition on assignment, but only so long as such prohibition exists and is effective and valid notwithstanding applicable UCC anti-assignment provisions) of the Borrower and each of the
Guarantors;

		
		  	 (c)    All present and future intercompany debt of the Borrower and each Guarantor; and

		
		  	 (d)    All proceeds and products of the property and assets described in clauses (a), (b) and (c)
above.

		
		  	All the foregoing are collectively referred to as the “Collateral”; it being understood that, unless otherwise specified, none of the foregoing shall be subject to any other
liens or security interests except for certain exceptions to be agreed upon. All such security interests will be created pursuant to First Priority Credit Documentation

  

 A-I-3 

			
		  	reasonably satisfactory to the Lead Arranger. On the Closing Date, such security interests shall have become perfected (or arrangements for the perfection thereof reasonably satisfactory to
the Lead Arranger shall have been made) and shall also secure the Guarantees and any Hedging Arrangements. Notwithstanding the foregoing, no pledge or security interest shall be granted to the extent such pledge or security interest would be
prohibited by applicable law or would result in material adverse tax consequences or to the extent the cost of obtaining such pledge or security interest would be excessive in relation to the benefit thereof in the Lead Arranger’s reasonable
judgment after consultation with the Borrower.
		
	Final Maturity:	  	The final maturity of (a) the First Priority Term Loan Facility will occur on the seventh anniversary of the Closing Date and (b) the Revolving Credit Facility will occur on the sixth
anniversary of the Closing Date (in each case, the “Termination Date”) and the commitments with respect to the Revolving Credit Facility shall automatically terminate on such date.
		
	Amortization Schedule:	  	The First Priority Facilities will amortize as follows:
		
		  	(a) First Priority Term Loan Facility. The First Priority Term Loan Facility will amortize quarterly in amounts equal to 1% per annum in years one through six and the first three quarters
of year seven, with the remainder payable on the seventh anniversary of the Closing Date; and
		
		  	(b) Revolving Credit Facility. None.
		
	Interest Rates and Fees:	  	Interest rates and fees in connection with the First Priority Facilities will be as specified on Annex I hereto.
		
	Mandatory Prepayments/Reductions in Commitment:	  	  
 The First Priority Term Loan Facility will be required to be prepaid
(subject to baskets, exceptions and, in the case of clauses (b) and (e) below, the right (A) to reinvest (including in permitted acquisitions) proceeds within 365 days or (B) to commit pursuant to a binding contract to reinvest such proceeds within
365 days of receipt of proceeds, so long as the reinvestment is completed within (1) 180 days after such commitment, in

  

 A-I-4 

			
		  	the case of proceeds from asset sales, and (2) one year after such commitment, in the case of insurance and condemnation proceeds) with (a) beginning with fiscal year 2007, 50% of annual
Excess Cash Flow (as defined in Annex II hereto) (including a step-down to 25% if the Borrower’s Total Leverage Ratio is less than or equal to 2.00:1.00), (b) 100% of the net cash proceeds of asset sales and other asset dispositions by
the Borrower or any of its subsidiaries, (c) 100% of the net cash proceeds of the issuance or incurrence of debt (other than permitted debt) by the Borrower or any of its subsidiaries), (d) 50% of the net cash proceeds of issuances of equity of
Borrower and its subsidiaries, subject to limited exceptions to be agreed and (e) 100% of any Extraordinary Receipts (to be defined in the First Priority Credit Documentation as certain insurance proceeds and certain condemnation and casualty
proceeds (subject to the reinvestment rights described above)).
		
		  	Notwithstanding the foregoing, each Lender under the First Priority Term Loan Facility (each a “First Priority Term Lender”) shall have the right to reject its pro rata share
of any mandatory prepayment described above, in which case the amounts so rejected shall be offered ratably to each non-rejecting First Priority Term Lender, with any portion of such mandatory prepayment that is rejected by such First Priority Term
Lenders being offered to Lenders under the Second Priority Credit Facility.
		
		  	The above-described mandatory prepayments shall be applied to the remaining amortization payments under the First Priority Term Loan Facility in chronological order.
		
	Voluntary Prepayments/Reductions in Commitment:	  	
 Advances under the First Priority Facilities may be prepaid at the option of the Borrower, upon notice and in a minimum
principal amount and in multiples to be agreed upon, without premium or penalty (except, in the case of LIBOR borrowings, breakage costs related to prepayments not made on the last day of the relevant interest period).

		
		  	Any application of a voluntary prepayment to the First Priority Term Loan Facility shall be applied to the scheduled amortization payments of the First Priority Term Loan Facility as directed
by the Borrower.

  

 A-I-5 

			
	Conditions to Initial Advances:	  	The making of the initial advances under the First Priority Facilities shall be subject to (a) the conditions set forth in Exhibit B to the Commitment Letter and (b) accuracy in all
material respects of representations and warranties.
		
	Conditions to All Extensions of Credit:	  	Each extension of credit under the First Priority Facilities will be subject to (a) delivery of notice, (b) absence of any default and (c) continued accuracy in all material respects of
representations and warranties.
		
	Representations and Warranties:	  	Applicable to the Loan Parties and their subsidiaries (subject to baskets and exceptions to be agreed) as follows: accuracy of financial statements and preparation in accordance with GAAP;
corporate existence and capital structure; due authorization, execution and delivery of appropriate documents; subsidiaries; no conflict with laws or material agreements; legal, valid and binding agreements; absence of material litigation; absence
of material undisclosed liabilities; environmental regulations and liabilities; ERISA; possession of all necessary consents, approvals, licenses and permits; compliance with all applicable laws and regulations; payment of taxes; ownership of
properties; solvency; liens; no default; insurance; labor matters; accuracy of disclosure; absence of any material adverse change in the business, operations, assets, liabilities or condition (financial or otherwise) of the Loan Parties and their
subsidiaries, taken as a whole (not to be applicable to the first advance); validity, perfection and priority of liens on Collateral; Federal Reserve Regulations; Investment Company Act; Patriot Act compliance; and accuracy of representations and
warranties in acquisition documents.
		
	Affirmative Covenants:	  	Applicable to the Loan Parties and their subsidiaries and consistent with recent credit facilities similar to the First Priority Facilities for affiliates of Warburg Pincus LLC (subject to
baskets and exceptions to be agreed) as follows: use of proceeds; payment of taxes and performance of other material obligations; continuation of business and maintenance of existence and rights and privileges; maintenance of corporate
separateness;

  

 A-I-6 

			
		  	compliance with laws and material contractual obligations; maintenance of property and insurance; maintenance of books and records; inspection and visitation rights; notices of defaults,
litigation and other material events; financial and other information reporting (including annual audited and quarterly unaudited financial statements and annual updated budgets); use of commercially reasonable efforts to maintain a rating of the
First Priority Facilities by each of S&P and Moody’s; and guarantees, further assurances and security interests in after-acquired property.
		
	Negative Covenants:	  	Applicable to the Borrower and its subsidiaries (subject to baskets and exceptions to be agreed) as follows: limitations on indebtedness; liens; further negative pledges; acquisitions and
other investments; dividends, repurchases of equity interests and other restricted payments; mergers, consolidations and other fundamental changes; dispositions; sale-leaseback transactions; transactions with affiliates; further limitations on
dividend and other payment restrictions affecting subsidiaries; changes in business; amendment of documents relating to material indebtedness and organizational documents; prepayment, redemption or repurchase of subordinated indebtedness and Second
Priority Term Loans (as defined in Annex A-II to the Commitment Letter); and limitations on payments of principal or interest on the Merger Note (as defined in the Acquisition Agreement).
		
	Financial Covenants:	  	 The financial covenants will be applicable beginning with the fiscal quarter ending December 31, 2006 and will be the following covenants with
levels to be agreed:
  
 1.      Maximum Consolidated Leverage Ratio.
  
 2.      Minimum Ratio of EBITDA to Cash Interest Expense.
  
 3.      Maximum Capital
Expenditures.

		
		  	For purposes of determining compliance with the financial covenants, any equity investment made in the Borrower after the Closing Date and on or prior to the day that is 10 days after the day
on which financial statements are required to be delivered for a fiscal quarter

  

 A-I-7 

			
		  	will, at the request of the Borrower, be included in the calculation of EBITDA (as defined in Annex II hereto) for the purposes of determining compliance with financial covenants at
the end of such fiscal quarter and applicable subsequent periods (any such investment so included in the calculation of EBITDA, a “Specified Equity Contribution”); provided that (a) in each four fiscal quarter period there
shall be a period of a least one fiscal quarter in which no Specified Equity Contribution is made, (b) in each eight fiscal quarter period there shall be a period of at least four consecutive fiscal quarters during which no Specified Equity
Contribution is made and (c) the amount of any Specified Equity Contribution shall be no greater than the amount required to cause the Borrower to be in compliance with the financial covenants.
		
	Events of Default:	  	Defaults (with grace periods and thresholds to be agreed) as follows: nonpayment of principal, interest or other amounts; breach of representation or warranty; failure to perform or observe
of covenants and obligations; default on or acceleration of other indebtedness in a principal amount exceeding $10.0 million; unsatisfied judgments exceeding $10.0 million; bankruptcy or insolvency; ERISA; change of control; and actual or asserted
loss of validity, priority or enforceability, or impairment, of any First Priority Credit Documentation or Collateral impacting a substantial portion of the assets of the Borrower and its subsidiaries taken as a whole.
		
	Yield Protection and Increased Costs:	  	Customary for facilities and transactions of this type, including, without limitation, tax gross ups, increased cost provisions, breakage provisions, indemnities, and other customary
items.
		
	Assignments and Participations:	  	Each assignment under the Revolving Credit Facility shall require the consent of each issuing bank in respect of letters of credit issued thereunder, the swingline loan Lender thereunder and
the Borrower, such consents not to be unreasonably withheld or delayed; provided that such consent of the Borrower shall not be required (i) for assignments to another Lender or its affiliates or any Federal Reserve Bank or (ii) after the
occurrence and during the continuance of a payment or bankruptcy event of default. Each assignment under the First Priority

  

 A-I-8 

			
		  	Term Loan Facility shall require the consent of the Borrower, such consent not to be unreasonably withheld or delayed; provided that such consent of the Borrower shall not be required
(i) for assignments to another Lender or its affiliates or any Federal Reserve Bank or (ii) after the occurrence and during the continuance of a payment or bankruptcy event of default. All assignments will require the consent of the Administrative
Agent, not to be unreasonably withheld or delayed. Assignments will be in minimum amounts of $2,500,000 in respect of the Revolving Credit Facility and $1,000,000 in respect of the First Priority Term Loan Facility (or the lesser amount of the
assignor’s commitments and loans, as applicable).
		
		  	Participations shall be permitted without restriction subject to customary limitations on voting rights for participants.
		
	Required Lenders:	  	Lenders having a majority of the outstanding credit exposure (the “Required Lenders”), subject to amendments or waivers of certain provisions of the First Priority Credit
Documentation requiring the consent of Lenders having a greater share (or all) of the outstanding credit exposure or to protect against certain differential impacts (it being understood that there shall be no “class voting”). If any Lender
refuses to consent to any amendment or waiver requested by the Borrower that requires the consent of more than the Required Lenders and such amendment or waiver is consented to by the Required Lenders, the Borrower may require such Lender to assign
all of its interests, rights and obligations under the Credit Facilities to an eligible assignee that shall consent to such requested amendment or waiver.
		
	Expenses and Indemnification:	  	All reasonable out-of-pocket expenses of the Lead Arranger and the Agents (and of all Lenders in the case of enforcement costs and documentary taxes) associated with the negotiation,
preparation, execution and delivery or administration of, any waiver or modification (whether or not effective) of, the arranging and syndicating of, and the enforcement of, any First Priority Credit Documentation (including the reasonable fees,
disbursements and other charges of counsel for the Lead Arranger and the Agents) are to be paid by the Loan Parties on the Closing Date and thereafter from time to time on demand.

  

 A-I-9 

			
		  	The Loan Parties will indemnify the Lead Arranger, the Agents, the Lenders and their respective affiliates, successors and assigns and the officers, directors, employees, agents, advisors,
controlling persons and members of each of the foregoing (each, an “Indemnified Person”) and hold them harmless from and against all costs, expenses (including reasonable fees, disbursements and other charges of counsel) and all
liabilities arising out of or relating to any claim or litigation or other proceeding (regardless of whether such Indemnified Person is a party thereto or has commenced any litigation and regardless of whether such matter is initiated by a third
party or by the Borrower or any of its affiliates) that relate to the Transactions or any transactions related thereto, except to the extent determined in the final, non-appealable judgment of a court of competent jurisdiction to have resulted from
such Indemnified Person’s gross negligence or willful misconduct.
		
	Governing Law and Forum:	  	New York.
		
	Waiver of Jury Trial:	  	All parties to the First Priority Credit Documentation will waive the right to trial by jury.
		
	Counsel for the Lead Arranger:	  	Cahill Gordon & Reindel LLP

  

 A-I-10 

 EXHIBIT A-II 
 $25,000,000 
 SECOND PRIORITY CREDIT FACILITY 
 SUMMARY OF PROPOSED TERMS AND CONDITIONS 
 Capitalized terms not otherwise defined herein have the same meanings specified in the Commitment Letter to which this Summary of Proposed Terms and Conditions is attached. 
  

			
	Borrower:	  	Same as the Borrower under the Credit Facilities as set forth in the First Priority Term Sheet attached as Exhibit A-I to the Commitment Letter.
		
	Sole Lead Arranger:	  	Citigroup Global Markets Inc. will act as sole lead arranger for the Second Priority Credit Facility (as defined below) (in such capacity, the “Lead Arranger”), and will perform
the duties customarily associated with such role.
		
	Sole Bookrunner:	  	Citigroup Global Markets Inc. will act as sole bookrunner for the Second Priority Credit Facility, and will perform the duties customarily associated with such role.
		
	Administrative Agent:	  	An affiliate of Citigroup will act as sole administrative agent and collateral agent for the Lenders (as defined below) (in such capacities, collectively, the “Administrative
Agent”), and will perform the duties customarily associated with such roles.
		
	Lenders:	  	A syndicate of financial institutions and other entities (each, a “Lender” and collectively, the “Lenders”) arranged by the Lead Arranger and reasonably
acceptable to the Borrower.
		
	Second Priority Facility:	  	Senior second priority secured term loan facility (the “Second Priority Credit Facility”) in an aggregate principal amount of up to $25.0 million.
		
	Use of Proceeds:	  	The proceeds of the Second Priority Credit Facility shall be used to (a) finance in part the Transactions; and (b) pay related fees and expenses incurred in connection with the
Transactions.
		
	Availability:	  	Advances under the Second Priority Credit Facility will be available in a single draw on the Closing Date. Advances repaid or prepaid may not be reborrowed.
		
	Documentation:	  	The documentation for the Second Priority Credit Facility will include, among others, a credit agreement (the “Second Priority 

  

 B-1 

			
		  	Credit Agreement”), guarantees and appropriate pledge, security, mortgage and other collateral documents and an intercreditor agreement (collectively, the “Second Priority
Credit Documentation”) and containing the definitions set forth in Annex II to Exhibit A-I of the Commitment Letter. The Borrower and the Second Priority Guarantors (as defined below under “Guarantors”) are herein referred
to as the “Second Priority Loan Parties” and individually as a “Second Priority Loan Party.”
		
	Guarantors:	  	The obligations of the Borrower under the Second Priority Credit Facility shall be unconditionally guaranteed, on a joint and several basis, by each direct and indirect wholly owned domestic
subsidiary of the Borrower that guarantees the First Priority Facilities (each a “Second Priority Guarantor”; and its guarantee is referred to herein as a “Second Priority Guarantee”).
		
	Security:	  	There shall be granted to the Administrative Agent and the Lenders valid and perfected second priority (subject to the first priority liens securing the obligations under the Credit
Documentation pursuant to an intercreditor agreement customary for transactions of this kind and subject to certain other exceptions to be set forth in the Second Priority Credit Documentation) liens and security interests in all of the
following:
		
		  	 (a)    All present and future shares of capital stock (or other ownership or profit interests in) of each of
Borrower’s present and future domestic subsidiaries and 65% of the capital stock of Borrower’s and such subsidiaries’ first-tier foreign subsidiaries;

		
		  	 (b)    Substantially all of the material tangible and intangible properties and assets (including but not limited to
all equipment, inventory, receivables, contract and other intangible rights, material owned real property, cash and deposit accounts, intellectual property and proceeds of the foregoing and excluding, without limitation, vehicles, leaseholds,
contracts that contain a valid and enforceable prohibition on assignment, but only so long as such prohibition exists and is effective and valid notwithstanding applicable UCC anti-assignment provisions) of the Borrower and each of the Second
Priority Guarantors;

		
		  	 (c)    All present and future intercompany debt of the Borrower and each Second Priority Guarantor;
and

  

 B-2 

			
		  	 (d)    All proceeds and products of the property and assets described in clauses (a), (b) and (c)
above.

		
		  	All the foregoing are collectively referred to as the “Collateral”; it being understood that, unless otherwise specified, none of the foregoing shall be subject to any other
liens or security interests, except as described above and except for certain exceptions to be agreed upon. All such security interests will be created pursuant to Second Priority Credit Documentation reasonably satisfactory to the Lead Arranger. On
the Closing Date, such security interests shall have become perfected (or arrangements for the perfection thereof reasonably satisfactory to the Lead Arranger shall have been made) and shall also secure the Second Priority Guarantees.
Notwithstanding the foregoing, no pledge or security interest shall be granted to the extent such pledge or security interest would be prohibited by applicable law or would result in material adverse tax consequences or to the extent the cost of
obtaining such pledge or security interest would be excessive in relation to the benefit thereof in the Lead Arranger’s reasonable judgment after consultation with the Borrower.
		
	Final Maturity:	  	The final maturity of the Second Priority Credit Facility will occur on the date that is 7.5 years after the Closing Date.
		
	Amortization Schedule:	  	None.
		
	Interest Rates and Fees:	  	Interest rates and fees in connection with the Second Priority Credit Facility will be as specified on Annex I attached hereto.
		
	Mandatory Prepayments/Reductions in Commitment:	  	  
 Subject to the requirements of the First Priority Credit Documentation and
the intercreditor agreement, the Second Priority Credit Facility will be required to be prepaid (subject to baskets, exceptions and, in the case of clauses (b) and (e) below, the right (A) to reinvest (including in permitted acquisitions) proceeds
within 365 days or (B) to commit pursuant to a binding contract to reinvest such proceeds within 365 days of receipt of proceeds, so long as the reinvestment is completed within (1) 180 days after such commitment, in the case of proceeds from asset
sales, and (2) one year after such commitment, in the case of insurance and condemnation proceeds) with (a) beginning with fiscal year 2007, 50% of annual Excess Cash Flow (as defined in Annex II to Exhibit A of the Commitment Letter) (including a
step-down to 25% if the Borrower’s Total Leverage Ratio is less than or equal to 2.00:1.00), (b) 100% of the net cash proceeds of asset sales and other asset dispositions by the Borrower or any of its subsidiaries, (c) 100% of
the

  

 B-3 

			
		  	net cash proceeds of the issuance or incurrence of debt (other than permitted debt) by the Borrower or any of its subsidiaries), (d) 50% of the net cash proceeds of issuances of equity
of Borrower and its subsidiaries, subject to limited exceptions to be agreed and (e) 100% of any Extraordinary Receipts (to be defined as certain insurance proceeds and certain condemnation and casualty proceeds (subject to the reinvestment
rights described above)); provided, however, that, until all loans under the First Priority Term Loan Facility shall have been paid in full, such prepayments shall first be offered to the lenders under the First Priority Term Loan
Facility, and shall not be required to be used to prepay loans under the Second Priority Credit Facility except to the extent rejected by the lenders under the First Priority Term Loan Facility.
		
		  	Notwithstanding the foregoing, each Lender under the Second Priority Credit Facility (each a “Second Lien Term Lender”) shall have the right to reject its pro rata share of
any mandatory prepayment described above, in which case the amounts so rejected shall be offered ratably to each non-rejecting Second Lien Term Lender. Any such amounts which are further rejected by such non-rejecting Second Lien Term Lenders may be
retained by the Borrower.
		
	Voluntary Prepayments/Reductions in Commitment:	  	  
 Advances under the Second Priority Credit Facility may be prepaid at the
option of the Borrower, upon notice and in a minimum principal amount and in multiples to be agreed upon, without premium or penalty (except, in the case of LIBOR borrowings, breakage costs related to prepayments not made on the last day of the
relevant interest period), and except that all voluntary prepayments and refinancings (in whole or in part) shall be accompanied by a premium of (i) during the first year following the Closing Date, 2% of the principal amount thereof, (ii) during
the second year following the Closing Date, 1% of the principal amount thereof and (iii) thereafter, none.

		
	Conditions to Advance:	  	The making of the advance under the Second Priority Credit Facility shall be subject to the conditions set forth on Exhibit B to the Commitment Letter and to the (a) delivery of
notice, (b) absence of any default except as set forth in clause (c) below and (c) accuracy in all material respects of representations and warranties.
		
	Representations and Warranties:	  	Same as for the First Priority Facilities to be applicable to the Second Priority Loan Parties and their subsidiaries.
		
	Affirmative Covenants:	  	Substantially the same as for the First Priority Facilities to be applicable to the Second Priority Loan Parties and their subsidiaries.

  

 B-4 

			
	Negative Covenants:	  	Substantially the same as for the First Priority Facilities to be applicable to the Second Priority Loan Parties and their subsidiaries.
		
	Financial Covenant:	  	Maximum Total Leverage Ratio covenant
		
		  	The financial covenant contemplated above shall have levels to be agreed and related defined terms to be mutually agreed in the Second Priority Credit Documentation (and consistent with the
corresponding provisions of the First Priority Credit Documentation). The financial covenant contemplated above will apply to the Borrower and its subsidiaries on a consolidated basis.
		
		  	The financial covenant will be applicable beginning with the fiscal quarter ending December 31, 2006, and the covenant levels shall be less restrictive than the corresponding covenant in the
First Priority Facilities by 0.5x EBITDA.
		
		  	For purposes of determining compliance with the financial covenant, any equity investment made in the Borrower after the Closing Date and on or prior to the day that is 10 days after the day
on which financial statements are required to be delivered for a fiscal quarter will, at the request of the Borrower, be included in the calculation of EBITDA (as defined in Annex II to Exhibit A-I of the Commitment Letter) for the purposes of
determining compliance with the financial covenant at the end of such fiscal quarter and applicable subsequent periods (any such investment so included in the calculation of EBITDA, a “Specified Equity Contribution”);
provided that (a) in each four fiscal quarter period there shall be a period of at least one fiscal quarter in which no Specified Equity Contribution is made, (b) in each eight fiscal quarter period there shall be a period of at least four
consecutive fiscal quarters during which no Specified Equity Contribution is made and (c) the amount of any Specified Equity Contribution shall be no greater than the amount required to cause the Borrower to be in compliance with the financial
covenants.
		
		  	The covenants applicable to the Second Priority Credit Facility will provide for increases in basket amounts by an amount to be agreed over those in the First Priority
Facilities.
		
	Events of Default:	  	Customary for recent facilities similar to the Second Priority Credit Facility (with grace periods and thresholds to be agreed) as follows: nonpayment of principal, interest or other amounts;
breach of representation or warranty; failure to perform or observe of covenants and obligations; default on or acceleration of other indebtedness in a principal amount exceeding $15.0 million; unsatisfied

  

 B-5 

			
		  	judgments exceeding $15.0 million; bankruptcy or insolvency; ERISA; change of control; and actual or asserted loss of validity or enforceability or impairment of any Second Priority Credit
Documentation or Collateral impacting a substantial portion of the assets of the Borrower and its subsidiaries taken as a whole.
		
	Yield Protection and Increased Costs:	  	Customary for facilities and transactions of this type, including, without limitation, tax gross ups, increased cost provisions, breakage provisions, indemnities, and other customary
items.
		
	Assignments and Participations:	  	Each assignment under the Second Priority Credit Facility shall require the consent of the Administrative Agent and notice to (but not the consent of) the Borrower. Assignments will be in
minimum amounts of $1,000,000 (or the lesser amount of the assignor’s commitments and loans, as applicable).
		
		  	Participations shall be permitted without restriction subject to customary limitations on voting rights for participants.
		
	Required Lenders:	  	Lenders having a majority of the outstanding credit exposure (the “Required Lenders”), subject to amendments or waivers of certain provisions of the Second Priority Credit
Documentation requiring the consent of Lenders having a greater share (or all) of the outstanding credit exposure or to protect against certain differential impacts. If any Lender refuses to consent to any amendment or waiver requested by the
Borrower that requires the consent of more than the Required Lenders and such amendment or waiver is consented to by the Required Lenders, the Borrower may require such Lender to assign all of its interests, rights and obligations under the Second
Priority Credit Facility to an eligible assignee that shall consent to such requested amendment or waiver.
		
	Expenses and Indemnification:	  	All reasonable out-of-pocket expenses of the Lead Arranger and the Agents (and of all Lenders in the case of enforcement costs and documentary taxes) associated with the negotiation,
preparation, execution and delivery or administration of, any waiver or modification (whether or not effective) of, the arranging and syndicating of, and the enforcement of, any Second Priority Credit Documentation (including the reasonable fees,
disbursements and other charges of counsel for the Lead Arranger and the Agents) are to be paid by the Second Priority Loan Parties on the Closing Date and thereafter from time to time on demand.
		
		  	The Second Priority Loan Parties will indemnify the Lead Arranger, the Agents, the Lenders and their respective affiliates, successors

  

 B-6 

			
		  	and assigns and the officers, directors, employees, agents, advisors, controlling persons and members of each of the foregoing (each, an “Indemnified Person”) and hold them
harmless from and against all costs, expenses (including reasonable fees, disbursements and other charges of counsel) and all liabilities arising out of or relating to any claim or litigation or other proceeding (regardless of whether such
Indemnified Person is a party thereto or has commenced any litigation and regardless of whether such matter is initiated by a third party or by the Borrower or any of its affiliates) that relate to the Transactions or any transactions related
thereto, except to the extent determined in the final, non-appealable judgment of a court of competent jurisdiction to have resulted from such Indemnified Person’s gross negligence or willful misconduct.
		
	Governing Law and Forum:	  	New York.
		
	Waiver of Jury Trial:	  	All parties to the Second Priority Credit Documentation will waive the right to trial by jury.
		
	Counsel for the Lead Arranger:	  	Cahill Gordon & Reindel LLP.

  

 B-7Form of Warrant Agreement

 EXHIBIT 4.7 
 THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAWS, OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 
 INTERMETRO COMMUNICATIONS, INC. 
 WARRANT 
                  SHARES OF COMMON STOCK 
                     , 2006 
 This Warrant (this “Warrant”) of InterMetro Communications, Inc., a corporation duly organized and validly existing under the laws of the State of Delaware (the “Company”), is being issued pursuant
to that certain Underwriting Agreement, dated                     , 2006 (the “Underwriting Agreement”), by and between the Company
and Ladenburg Thalmann & Co., Inc., as representative (“Ladenburg”), relating to a firm commitment public offering (the “Offering”) of 2,225,000 shares of common stock, par value $0.001 per share (the “Common
Stock”), of the Company underwritten by the several Underwriters named therein. 
 FOR VALUE RECEIVED, the Company hereby grants
Ladenburg and its permitted successors and assigns (collectively, the “Holder”) the right to purchase from the Company up to
                    
(                    ) shares of Common Stock (the “Warrant Shares”), at a per share purchase price equal to
$             [120% OF THE PUBLIC OFFERING PRICE] (the “Exercise Price”), subject to the terms, conditions and adjustments set forth below in this Warrant. 
 1. Vesting of Warrant. This Warrant shall vest and become exercisable on the first anniversary of the date hereof (the “Vesting Date”).
Except as otherwise provided for herein or as permitted by applicable rules of the National Association of Securities Dealers, Inc. (the “NASD”), this Warrant shall not be sold, transferred, assigned, pledged or hypothecated prior to the
Vesting Date. 
 2. Expiration of Warrant. This Warrant shall expire at 5:00pm, prevailing Eastern Time, on the day immediately
preceding the fifth anniversary of the date hereof (the “Expiration Date”). 
 3. Exercise of Warrant. This Warrant shall be
exercisable in accordance with the terms of this Section. 
  

 1 

 3.1 Manner of Exercise. 
 (a) This Warrant may only be exercised by the Holder hereof on or after the Vesting Date and on or prior to the Expiration Date, in
accordance with the terms and conditions hereof, in whole or in part (but not as to fractional shares of Common Stock) with respect to any portion of this Warrant, on any day other than a Saturday or a Sunday or a day on which commercial banking
institutions in New York, New York are authorized by law to be closed (a “Business Day”), by surrender of this Warrant to the Company at its office maintained pursuant to Section 10.2(a) hereof, accompanied by a written exercise
notice in the form attached as Exhibit A to this Warrant (or a reasonable facsimile thereof) duly executed by the Holder, together with payment of the aggregate Exercise Price for the number of Warrant Shares purchased upon exercise of this Warrant.
Upon surrender of this Warrant, the Company shall cancel it and shall, in the event of partial exercise, replace it with a new Warrant of like tenor in accordance with Section 3.3. 
 (b) Except as provided for below, each exercise of this Warrant shall be accompanied by payment in full of the aggregate Exercise Price in
cash, by check or wire transfer for the number of Warrant Shares being purchased by the Holder upon such exercise. The aggregate Exercise Price for the number of Warrant Shares being purchased may, however, also be paid in full or in part at the
election of the Holder (i) in the form of Warrant Shares (as defined below) withheld by the Company from the Warrant Shares otherwise to be received upon exercise of this Warrant having an aggregate Fair Market Value on the date of exercise
equal to the aggregate Exercise Price of the Warrant Shares being purchased by the Holder, or (ii) by a combination of the foregoing, provided that the combined value of all cash and other payments and the Fair Market Value of any Warrant
Shares withheld by the Company is at least equal to the aggregate Exercise Price of the number of Warrant Shares being purchased by the Holder. 
 (c) For purposes of this Warrant, the term “Fair Market Value” means, with respect to a particular date, the average closing price of the Common Stock for the 15 trading days ending on the third trading day
immediately preceding such date on the principal securities exchange or market on which shares of Common Stock are listed or quoted, if the shares of Common Stock are so listed or quoted or, if not so listed or quoted, as determined by the Board of
Directors of the Company in good faith based on the information available to it. 
 3.2 When Exercise Effective.
Subject to compliance with the provisions of Section 3.1 hereof, each exercise of this Warrant shall be deemed to have been effected at 9:00am, prevailing Eastern Time, on the Business Day on which this Warrant shall have been duly surrendered
to the Company as provided in Sections 3.1 and 12 hereof, and, at such time, the Holder in whose name any certificate or certificates for Warrant Shares shall be issuable upon exercise as provided in Section 3.3 hereof shall be deemed to have
become the holder of record of the number of Warrant Shares then purchased upon exercise of this Warrant. 
 3.3 Delivery
of Common Stock Certificates and New Warrant. As soon as reasonably practicable after each exercise of this Warrant, in whole or in part, and in any event within five Business Days thereafter, the Company, at its expense (including the payment
by it of any applicable issue taxes), shall cause to be issued in the name of and delivered to the Holder 

  

 -2- 

 
hereof or, subject to Sections 9 and 10 hereof, as the Holder (upon payment by the Holder of any applicable transfer taxes) may direct: 
 (a) a certificate or certificates for the number of duly authorized, validly issued, fully paid and nonassessable Warrant Shares to which
the Holder shall be entitled upon exercise; and 
 (b) in case exercise is in part only, a new Warrant of like tenor, dated
the date hereof, for the remaining number of Warrant Shares issuable upon exercise of this Warrant after giving effect to the partial exercise of this Warrant (including the delivery of any Warrant Shares as payment of the Exercise Price for such
partial exercise of this Warrant). 
 4. Certain Adjustments. For so long as this Warrant is outstanding: 
 4.1 Mergers or Consolidations. If at any time after the date hereof there shall be a capital reorganization (other than a
combination or subdivision of Common Stock otherwise provided for herein) resulting in a reclassification to or change in the terms of securities issuable upon exercise of this Warrant (a “Reorganization”), or a merger or consolidation of
the Company with another corporation, association, partnership, organization or business (a “Person” or the “Persons”), other than a merger with another Person in which the Company is the continuing corporation and that does not
result in any reclassification or change in the terms of securities issuable upon exercise of this Warrant (a “Merger”), then, as a part of such Reorganization or Merger, lawful provision and adjustment shall be made so that the Holder
shall thereafter be entitled to receive, upon exercise of this Warrant, the number of shares of stock or any other equity or debt securities or property receivable upon such Reorganization or Merger by a holder of the maximum number of shares of
Common Stock that could have been purchased upon exercise of this Warrant immediately prior to such Reorganization or Merger. In any such case, appropriate adjustment shall be made in the application of the provisions of this Warrant with respect to
the rights and interests of the Holder after the Reorganization or Merger to the end that the provisions of this Warrant (including adjustment of the Exercise Price then in effect and the number of Warrant Shares) shall be applicable after that
event, as near as reasonably may be, in relation to any shares of stock, securities, property or other assets thereafter deliverable upon exercise of this Warrant. The provisions of this Section 4.1 shall similarly apply to successive
Reorganizations and/or Mergers. 
 4.2 Splits and Subdivisions; Dividends. In the event the Company should at any time
or from time to time effectuate a split or subdivision of the outstanding shares of Common Stock or pay a dividend in or make a distribution payable in additional shares of Common Stock or other securities or rights convertible into, or entitling
the holder thereof to receive, directly or indirectly, additional shares of Common Stock (hereinafter referred to as the “Common Stock Equivalents”) without payment of any consideration by such holder for the additional shares of Common
Stock or Common Stock Equivalents (including the additional shares of Common Stock issuable upon conversion or exercise thereof), then, as of the applicable record date (or the date of such distribution, split or subdivision if no record date is
fixed), the per share Exercise Price shall be appropriately decreased and the number of Warrant Shares shall be appropriately increased in proportion to such increase (or potential increase) of outstanding 

  

 -3- 

 
shares; provided, however, that no adjustment shall be made in the event the split, subdivision, dividend or distribution is not effectuated. 
 4.3 Combination of Shares. If the number of shares of Common Stock outstanding at any time after the date hereof is decreased by a
combination of the outstanding shares of Common Stock, the per share Exercise Price shall be appropriately increased and the number of shares of Warrant Shares shall be appropriately decreased in proportion to such decrease in outstanding shares.

 4.4 Adjustments for Other Distributions. In the event the Company shall declare a distribution payable in
securities of other Persons, evidences of indebtedness issued by the Company or other Persons, assets (excluding cash dividends or distributions to the holders of Common Stock paid out of current or retained earnings and declared by the
Company’s board of directors) or options or rights not referred to in Sections 4.1, 4.2 or 4.3, then, in each such case for the purpose of this Section 4.4, upon exercise of this Warrant, the Holder shall be entitled to a proportionate
share of any such distribution as though the Holder was the actual record holder of the number of Warrant Shares as of the record date fixed for the determination of the holders of Common Stock entitled to receive such distribution. 
 5. No Impairment. The Company shall not, by amendment of its certificate of incorporation or by-laws or through any consolidation, merger,
reorganization, transfer of assets, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but shall at all times in good faith assist in the
carrying out of all of the terms and in the taking of all actions necessary or appropriate in order to protect the rights of the Holder against impairment. 
 6. Chief Financial Officer’s Report as to Adjustments. With respect to each adjustment pursuant to Section 4 of this Warrant, the Company, at its expense, shall promptly compute the adjustment or
re-adjustment in accordance with the terms of this Warrant and cause its Chief Financial Officer to certify the computation and prepare a report setting forth, in reasonable detail, the event requiring the adjustment or re-adjustment and the amount
of such adjustment or re-adjustment, the method of calculation thereof and the facts upon which the adjustment or re-adjustment is based, and the Exercise Price and the number of Warrant Shares or other securities purchasable hereunder after giving
effect to such adjustment or re-adjustment, which report shall be provided to the Holder as set forth in Section 12 hereof. 
 7.
Reservation of Shares. The Company shall, solely for the purpose of effecting the exercise of this Warrant, at all times during the term of this Warrant, reserve and keep available out of its authorized shares of Common Stock, free from all
taxes, liens and charges with respect to the issue thereof and not subject to preemptive rights or other similar rights of shareholders of the Company, such number of its shares of Common Stock as shall from time to time be sufficient to effect in
full the exercise of this Warrant. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect in full the exercise of this Warrant, in addition to such other remedies as shall be available to
Holder, the Company shall promptly take such corporate action as may, in the opinion of its counsel, be necessary to increase the number of authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such
purposes, including without limitation, using all reasonable 

  

 -4- 

 
efforts to obtain the requisite stockholder approval necessary to increase the number of authorized shares of Common Stock. The Company hereby represents,
warrants, covenants and agrees that all shares of Common Stock issuable upon exercise of this Warrant shall be duly authorized and, when issued and paid for upon exercise in accordance with the terms hereof, shall be validly issued, fully paid and
nonassessable. 
 8. Registration and Listing. 
 8.1 Definition of Registrable Securities; Majority. As used herein, the term “Registrable Securities” means any shares
of Common Stock issuable upon the exercise of this Warrant and all other warrants of even date herewith issued pursuant to the Underwriting Agreement (collectively, with the Warrant, the “Warrants”), until the date (if any) on which such
shares shall have been transferred or exchanged and new certificates for them not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent disposition of them shall not require registration or
qualification of them under the Securities Act of 1933, as amended (the “Securities Act”), or any similar state law then in force. For purposes of this Warrant, the term “Majority,” in reference to the holders of Registrable
Securities, shall mean in excess of 50% of the then outstanding Warrant Shares (assuming the exercise in full of each of the Warrants) that (i) are not held by the Company, an affiliate, officer, creditor, employee or agent thereof or any of
their respective affiliates, members of their family, Persons acting as nominees or in conjunction therewith and (ii) have not been resold to the public pursuant to a registration statement filed under the Securities Act . 
 8.2 Required Registration. 
 (a) At any time on or after the first anniversary of the date hereof and on or before the Expiration Date, but in no event on more than one occasion, upon the written request of the holders of the Registrable
Securities representing a Majority thereof, the Company shall use its best efforts to effect the registration of the respective shares of the holders of Registrable Securities under the Securities Act to the extent requisite to permit the
disposition thereof as expeditiously as reasonably possible, but in no event later than 120 days after the date of such request. 
 (b) Registration of Registrable Securities under this Section 8.2 shall be on such appropriate registration form: (i) as shall be selected by the Company, and (ii) as shall permit the disposition of such Registrable
Securities in accordance with this Section 8.2. The Company shall include in any such registration statement all information that the requesting holders of Registrable Securities shall reasonably request, that is required to be contained
therein. The Company shall pay all Registration Expenses in connection with each registration of Registrable Securities pursuant to this Section 8.2, except for fees and costs of counsel to the holders of Registrable Securities. 
 (c) A registration requested pursuant to this Section 8.2 shall not be deemed to have been effected: (i) unless a registration
statement with respect thereto has become effective or (ii) if, after it has become effective, such registration is interfered with by any stop order, injunction or other order or requirement of the Securities and Exchange 

  

 -5- 

 
Commission (the “SEC”) or other governmental agency or court of competent jurisdiction for any reason, other than by reason of some act or omission
by a holder of Registrable Securities. 
 8.3 Incidental Registration Rights. 
 (a) If the Company, at any time on or after the first anniversary of the date hereof and on or before the Expiration Date, proposes to
register any of its securities under the Securities Act (other than in connection with a registration on Form S-4 or S-8 or any successor forms) whether for its own account or for the account of any holder or holders of its shares other than
Registrable Securities (any shares of such holder or holders (but not those of the Company and not Registrable Securities) with respect to any registration are referred to herein as, “Other Shares”), the Company shall each such time give
prompt (but not less than 30 days prior to the anticipated effectiveness thereof) written notice to the holders of Registrable Securities of its intention to do so; provided, however, that in no event shall the Company have the obligation to send
any such notice, and the holders of Registrable Securities shall not have any registration rights under this Section 8.3, if registration rights have been exercised previously pursuant to this Section 8.3 (except if the Company shall have
elected not to proceed with any such registrations, shall have withdrawn such registrations or otherwise shall have failed to cause such registrations to become and remain effective until disposition by the Holder of all Common Stock registered for
its account thereunder). Upon the written request of any such holder of Registrable Securities made within 20 days after the receipt of any such notice (which request shall specify the Registrable Securities intended to be disposed of by such
holder), except as set forth in Section 8.3(b), the Company will use all reasonable efforts to effect the registration under the Securities Act of all of the Registrable Securities that the Company has been so requested to register by such
holder, to the extent requisite to permit the disposition of the Registrable Securities so to be registered, by inclusion of such Registrable Securities in the registration statement that covers the securities that the Company proposes to register;
provided, however, that if, at any time after giving written notice of its intention to register any securities and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for
any reason in its sole discretion to not register, to delay or to withdraw registration of such securities, the Company may, at its election, give written notice of such determination to such holder and, thereupon, (i) in the case of a
determination not to register, shall be relieved of its obligation to register any Registrable Securities in connection with such registration (but not from its obligation to pay the Registration Expenses in connection therewith), (ii) in the
case of a determination to delay registration, shall be permitted to delay registering any Registrable Securities for the same period as the delay in registering such other securities (including the Other Shares), and (iii) in the case of a
determination to withdraw registration, shall be permitted to withdraw registration, in each of the foregoing cases, without prejudice, however, to the rights of the holders of Registrable Securities entitled to request that such registration be
effected as a registration under Section 8.2 and/or to again request after an appropriate interval that such registration be effected under this Section 8.3. No registration effected under this Section 8.3 shall relieve the Company of
its obligation to effect any registration upon request under Section 8.2, nor shall any such registration hereunder be deemed to have been effected pursuant to Section 8.2. The Company shall pay all Registration Expenses in connection with
each registration of Registrable Securities pursuant to this Section 8.3, except for fees and costs of counsel to the holders of Registrable Securities. 
  

 -6- 

 (b) If the Company at any time proposes to register any of its securities under the
Securities Act as contemplated by this Section 8.3 and such securities are to be distributed by or through one or more underwriters, the Company shall, if requested by a holder of Registrable Securities, use all reasonable efforts to arrange
for such underwriters to include all the Registrable Securities to be offered and sold by such holder among the securities to be distributed by such underwriters, provided that if the managing underwriter of such underwritten offering shall inform
the Company in writing of its good faith belief that inclusion in such distribution of such securities proposed to be distributed by such underwriters would interfere with the successful marketing of the securities being distributed by such
underwriters, then the Company may, upon written notice to such holder, the other holders of Registrable Securities, and holders of such Other Shares, reduce pro rata in accordance with the number of shares of Common Stock desired to be included in
such registration (if and to the extent stated by such managing underwriter to be necessary to eliminate such effect) the number of such Registrable Securities and Other Shares the registration of which shall have been requested by each holder
thereof so that the resulting aggregate number of such Registrable Securities and Other Shares so included in such registration, together with the number of securities to be included in such registration for the account of the Company, shall be
equal to the number of shares that is acceptable to such managing underwriters. 
 8.4 Registration Procedures.
Whenever the holders of Registrable Securities have properly requested that any Registrable Securities be registered pursuant to the terms of this Warrant, the Company shall use its best efforts to effect the registration and the sale of such
Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company shall: 
 (a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective; 
 (b) notify such holders of the effectiveness of each registration statement filed hereunder and prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to (i) keep such registration statement effective and the prospectus included therein usable for a period commencing
on the date that such registration statement is initially declared effective by the SEC and ending on the earlier of (A) the date when all Registrable Securities covered by such registration statement have been sold pursuant to the registration
statement or cease to be Registrable Securities or (B) the date that is 15 months after such effective date keep such registration statement effective and the prospectus included therein usable, and (ii) comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such registration statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement;

 (c) furnish to such holders such number of copies of such registration statement, each amendment and supplement thereto,
the prospectus included in such registration statement (including each preliminary prospectus) and such other documents as such seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such holders;

  

 -7- 

 (d) use all reasonable efforts to cause any Registrable Securities covered by such
registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the sellers thereof to consummate the disposition of such Registrable Securities; 
 (e) use all reasonable efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such
jurisdictions as such holders reasonably request and do any and all other acts and things that may be reasonably necessary or advisable to enable such holders to consummate the disposition in such jurisdictions of the Registrable Securities owned by
such holders; provided, however, that the Company shall not be required to: (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph; (ii) subject itself to
taxation in any such jurisdiction; or (iii) consent to general service of process in any such jurisdiction; 
 (f) notify
such holders, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement contains an untrue statement
of a material fact or omits any material fact necessary to make the statements therein, in light of the circumstances in which they are made, not materially misleading, and, at the reasonable request of such holders, prepare a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances in which they are made, not materially misleading; 
 (g) provide a transfer
agent and registrar for all such Registrable Securities not later than the effective date of such registration statement; 
 (h) otherwise use all reasonable efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement of the Company, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act and, at the option of the Company, Rule 158 thereunder; and 
 (i) in the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification
of any Registrable Securities included in such registration statement for sale in any jurisdiction, the Company shall use its best efforts promptly to obtain the withdrawal of such order. 
 8.5 Listing. The Company shall secure the listing of the Common Stock underlying this Warrant upon each national securities
exchange or automated quotation system upon which shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain such listing of shares of Common Stock. 
 8.6 Expenses. The Company shall pay all Registration Expenses relating to the registration and listing obligations set forth in
this Section 8. For purposes of this Warrant, 

  

 -8- 

 
the term “Registration Expenses” means: (a) all registration, filing and NASD fees, (b) all reasonable fees and expenses of complying
with securities or blue sky laws, (c) all word processing, duplicating and printing expenses, (d) the fees and disbursements of counsel for the Company and of its independent public accountants, including the expenses of any special audits
or “cold comfort” letters required by or incident to such performance and compliance, and (e) premiums and other costs of policies of insurance (if any) against liabilities arising out of the public offering of the Registrable
Securities being registered if the Company desires such insurance, provided however, that, in any case where Registration Expenses are not to be borne by the Company, such expenses shall not include (and such expenses shall be borne by the Company):
(i) salaries of Company personnel or general overhead expenses of the Company, (ii) auditing fees, (iii) premiums or other expenses relating to liability insurance required by underwriters of the Company, or (iv) other expenses
for the preparation of financial statements or other data, to the extent that any of the foregoing either is normally prepared by the Company in the ordinary course of its business or would have been incurred by the Company had no public offering
taken place. Registration Expenses shall not include any underwriting discounts and commissions that may be incurred in the sale of any Registrable Securities, transfer taxes of the selling holders of Registrable Securities and fees or disbursements
of counsel for the selling holders of Registrable Securities. 
 8.7 Information Provided by Holders. Any holder of
Registrable Securities included in any registration shall furnish to the Company such information as the Company may reasonably request in writing to enable the Company to comply with the provisions hereof in connection with any registration
referred to in this Warrant. In the event that a holder of Registrable Securities fails to provide such information on a timely basis, and in any event within 10 Business Days after the Company’s written request, then the Company shall be
entitled to exclude the Registrable Securities of such holder from such registration and the Company shall nevertheless be deemed to have satisfied its obligations hereunder with respect to such registration. 
 9. Restrictions on Transfer. 
 9.1 Restrictive Legends. This Warrant and each Warrant issued upon transfer or in substitution for this Warrant pursuant to Section 10 hereof, each certificate for Common Stock issued upon the exercise of the Warrant and each
certificate issued upon the transfer of any such Common Stock shall be transferable only upon satisfaction of the conditions specified in this Section 9. Each of the foregoing securities shall be stamped or otherwise imprinted with a legend
reflecting the restrictions on transfer set forth herein and any restrictions required under the Securities Act or other applicable securities laws. 
 9.2 Notice of Proposed Transfer. Prior to any transfer of any securities that are not registered under an effective registration statement under the Securities Act (the “Restricted Securities”), which
transfer may only occur if there is an exemption from the registration provisions of the Securities Act and all other applicable securities laws, the Holder will give written notice to the Company of the Holder’s intention to effect a transfer
(and shall describe the manner and circumstances of the proposed transfer). The following provisions shall apply to any proposed transfer of Restricted Securities: 
  

 -9- 

 (a) If in the opinion of counsel for the Holder reasonably satisfactory to the Company
the proposed transfer may be effected without registration of the Restricted Securities under the Securities Act (which opinion shall state in detail the basis of the legal conclusions reached therein), the Holder shall thereupon be entitled to
transfer the Restricted Securities in accordance with the terms of the notice delivered by the Holder to the Company. Each certificate representing the Restricted Securities issued upon or in connection with any transfer shall bear the restrictive
legends required by Section 9.1 hereof. 
 (b) If the opinion called for in (a) above is not delivered, the Holder
shall not be entitled to transfer the Restricted Securities until either (i) receipt by the Company of a further notice from such Holder pursuant to the foregoing provisions of this Section 9.2 and fulfillment of the provisions of clause
(a) above, or (ii) such Restricted Securities have been effectively registered under the Securities Act. 
 9.3
Certain Other Transfer Restrictions. Notwithstanding any other provision of this Section 9: (a) prior to the Vesting Date, this Warrant or the Restricted Securities thereunder may only be transferred or assigned to the Persons
permitted under NASD Rule 2710(g), and (b) no opinion of counsel shall be necessary for a transfer of Restricted Securities by the holder thereof to any Person who is a NASD member that participated in the Offering or is an officer or owner of
equity in the Holder, if the transferee agrees in writing to be subject to the terms hereof to the same extent as if the transferee were the original purchaser hereof and such transfer is permitted under applicable securities laws. 
 9.4 Termination of Restrictions. Except as set forth in Section 9.3 hereof, the restrictions imposed by this Section 9
upon the transferability of Restricted Securities shall cease and terminate as to any particular Restricted Securities: (a) which shall have been effectively registered under the Securities Act, or (b) when, in the opinions of both counsel
for the holder thereof and counsel for the Company, such restrictions are no longer required in order to insure compliance with the Securities Act or Section 10 hereof. Whenever such restrictions shall cease and terminate as to any Restricted
Securities, the Holder thereof shall be entitled to receive from the Company, without expense (other than applicable transfer taxes, if any), new securities of like tenor not bearing the applicable legends required by Section 9.1 hereof.

 10. Ownership, Transfer and Substitution of Warrant. 
 10.1 Ownership of Warrant. The Company may treat any Person in whose name this Warrant is registered in the Warrant Register
maintained pursuant to Section 10.2(b) hereof as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, except that, if and when any Warrant is properly assigned in blank, the Company may (but shall not be
obligated to) treat the bearer thereof as the owner of such Warrant for all purposes, notwithstanding any notice to the contrary. Subject to Sections 9 and 10 hereof, this Warrant, if properly assigned, may be exercised by a new holder without a new
Warrant first having been issued. 
 10.2 Office; Exchange of Warrant. 
  

 -10- 

 (a) The Company will maintain its principal office at the location identified in the
prospectus relating to the Offering or at such other offices as set forth in the Company’s most current filing (as of the date notice is to be given) under the Securities Exchange Act of 1934, as amended, or as the Company otherwise notifies
the Holder. 
 (b) The Company shall cause to be kept at its office maintained pursuant to Section 10.2(a) hereof a
Warrant Register for the registration and transfer of the Warrant. The name and address of the holder of the Warrant, the transfers thereof and the name and address of the transferee of the Warrant shall be registered in such Warrant Register. The
Person in whose name the Warrant shall be so registered shall be deemed and treated as the owner and holder thereof for all purposes of this Warrant, and the Company shall not be affected by any notice or knowledge to the contrary. 
 (c) Upon the surrender of this Warrant, properly endorsed, for registration of transfer or for exchange at the office of the Company
maintained pursuant to Section 10.2(a) hereof, the Company at its expense will (subject to compliance with Section 9 hereof, if applicable) execute and deliver to or upon the order of the Holder thereof a new Warrant of like tenor, in the
name of such holder or as such holder (upon payment by such holder of any applicable transfer taxes) may direct, calling in the aggregate on the face thereof for the number of shares of Common Stock called for on the face of the Warrant so
surrendered (after giving effect to any previous adjustment(s) to the number of Warrant Shares). 
 10.3 Replacement of
Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, upon delivery of indemnity reasonably
satisfactory to the Company in form and amount or, in the case of any mutilation, upon surrender of this Warrant for cancellation at the office of the Company maintained pursuant to Section 10.2(a) hereof, the Company, at its expense, will
execute and deliver, in lieu thereof, a new Warrant of like tenor and dated the date hereof. 
 11. No Rights or Liabilities as
Stockholder. No Holder shall be entitled to vote or receive dividends or be deemed the holder of any shares of Common Stock or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor
shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings,
or to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the shares of Common Stock purchasable upon the exercise hereof shall have become deliverable, as provided herein. The Holder will not be
entitled to share in the assets of the Company in the event of a liquidation, dissolution or the winding up of the Company. 
 12.
Notices. Any notice or other communication in connection with this Warrant shall be given in writing and directed to the parties hereto as follows: (a) if to the Holder, Ladenburg Thalmann & Co., Inc., 153 East 53rd Street, New York, New York 10022, Attn: Peter 

  

 -11- 

 
Blum, Fax No: (212) 409-2169; or (b) if to the Company, to the attention of its Chief Executive Officer at its office maintained pursuant to
Section 10.2(a) hereof; provided, that the exercise of the Warrant shall also be effected in the manner provided in Section 3 hereof. Notices shall be deemed properly delivered and received when delivered to the notice party (a) if
personally delivered, upon receipt or refusal to accept delivery, (b) if sent via facsimile, upon mechanical confirmation of successful transmission thereof generated by the sending telecopy machine, (c) if sent by a commercial overnight
courier for delivery on the next Business Day, on the first Business Day after deposit with such courier service, or (d) if sent by registered or certified mail, five (5) Business Days after deposit thereof in the U.S. mail. 
 13. Payment of Taxes. The Company will pay all documentary stamp taxes attributable to the issuance of shares of Common Stock underlying this
Warrant upon exercise of this Warrant; provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the transfer or registration of this Warrant or any certificate for shares of
Common Stock underlying this Warrant in a name other that of the Holder. The Holder is responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving shares of Common Stock underlying this
Warrant upon exercise hereof. 
 14. Condition to Issuance. The issuance of this Warrant is conditioned upon delivery to the Company
by the Holder of a written representation to the effect that it is an “accredited investor,” as that term is defined in Rule 501 of Regulation D promulgated under Section 4(2) of the Securities Act. 
 15. Miscellaneous. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by
the party against which enforcement of the change, waiver, discharge or termination is sought. This Warrant shall be construed and enforced in accordance with and governed by the laws of the State of New York, except that body of law relating to
choice of laws. The section headings in this Warrant are for purposes of convenience only and shall not constitute a part hereof. 
  

 -12- 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date first
above written. 
  

									
		 		 	INTERMETRO COMMUNICATIONS, INC.
					
		 		 		 	 By:
	 	  
		 		 		 		 	Name:
		 		 		 		 	Title:

 [Signature Page to Underwriter’s Warrant] 
  

 -13- 

 EXHIBIT A 
 FORM OF EXERCISE NOTICE 
 [To be executed only upon exercise of Warrant] 
 To INTERMETRO COMMUNICATIONS, INC.: 
 The undersigned registered holder of the within Warrant hereby irrevocably exercises the Warrant pursuant to Section 3.1 of the Warrant with respect to
                     Warrant Shares, at an exercise price per share of
$            , and requests that the certificates for such Warrant Shares be issued, subject to Sections 9 and 10, in the name of, and delivered to: 
  

	
	  
	  
	  
	  

 The undersigned is hereby making payment for the Warrant Shares in the following manner:
                                 [describe desired payment method as provided for
in 3.1 of the Warrant]. 
 The undersigned hereby represents and warrants that it is, and has been since its acquisition of the Warrant, the
record and beneficial owner of the Warrant. 
 Dated:
                         
  

	
	  
	Print or Type Name
	
	  
	(Signature must conform in all respects to name of holder as specified on the face of Warrant)
	  
	 (Street Address)

	  
	 (City)                    (State)                 
   (Zip Code)

 EXHIBIT B 
 FORM OF ASSIGNMENT 
 [To be executed only upon transfer of Warrant] 
 For value received, the undersigned registered holder of the within Warrant hereby sells, assigns and transfers unto
                                 [include name and addresses] the rights
represented by the Warrant to purchase                      shares of Common Stock of INTERMETRO COMMUNICATIONS, INC. to which the Warrant
relates, and appoints                                  Attorney to make such
transfer on the books of INTERMETRO COMMUNICATIONS, INC. maintained for the purpose, with full power of substitution in the premises. 
  

			
	Dated:	 	
		 	                                      
                                        
                                        
                                        
         
		 	(Signature must conform in all respects to
name of holder as specified on the face of
Warrant)
		 	  
                                       
                                        
                                        
                                        
         

		 	(Street Address)
		 	  
                                       
                                        
                                        
                                        
         

		 	(City)            (State)            (Zip Code)
	Signed in the presence of:	 	
		 	                                      
                                        
                                        
                                        
         
		 	(Signature of Transferee)
		 	  
                                       
                                        
                                        
                                        
         

		 	(Street Address)
		 	  
                                       
                                        
                                        
                                        
         

		 	(City)            (State)            (Zip Code)
	Signed in the presence of:

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