Document:

Exhibit 10.1

ELEVENTH AMENDMENT TO THE

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT OF

THE MACERICH PARTNERSHIP, L.P.

THIS ELEVENTH AMENDMENT (the “Amendment”)
TO THE AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT DATED AS OF MARCH 16,
1994, AMENDED AS OF AUGUST 14, 1995, FURTHER AMENDED AS OF JUNE 27, 1997,
FURTHER AMENDED AS OF NOVEMBER 16, 1997, FURTHER AMENDED AS OF FEBRUARY 25,
1998, FURTHER AMENDED AS OF FEBRUARY 26, 1998, FURTHER AMENDED AS OF JUNE 17,
1998, FURTHER AMENDED AS OF DECEMBER 23, 1998, FURTHER AMENDED AS OF NOVEMBER
9, 2000, FURTHER AMENDED AS OF JULY 26, 2002, AND FURTHER AMENDED AS OF OCTOBER
26, 2006 (the “Agreement”) of THE MACERICH
PARTNERSHIP, L.P. (the “Partnership”)
is dated effective as of March 16, 2007.

RECITALS

WHEREAS, The Macerich Company,
the general partner of the Partnership (the “General
Partner”), will be issuing $950 million aggregate principal amount
of 3.25% Convertible Senior Notes due 2012 (the “Convertible
Notes”) pursuant to the Convertible Note Purchase Agreement;

WHEREAS,  Section 3.4 of
the Agreement authorizes the General Partner, notwithstanding anything to the
contrary in Section 3.3 of the Agreement, from time to time to advance
funds to the Partnership for any proper Partnership purpose as a loan (“Funding Loan”) or a preferred equity investment (“Preferred Investment”), provided that any such funds must
first be obtained by the General Partner from a third party lender, and then
all of such funds must be advanced or contributed by the General Partner to the
Partnership as a Funding Loan or Preferred Investment on substantially the same
terms and conditions, including principal amount or preferred equity amount,
rate of interest or preferred return, repayment or redemption schedule, and
costs and expenses, as shall be applicable with respect to or incurred in
connection with such loan with such third party lender;

WHEREAS, the General Partner
proposes to contribute the proceeds from the issuance of the Convertible Notes
as a Preferred Investment in the Partnership;

WHEREAS, Section 12.1(b)(iv)
of the Agreement provides that the General Partner has the power, without the
consent of the Limited Partners of the Partnership, to amend the Agreement to
reflect a change that is of an inconsequential nature and does not adversely
affect the Limited Partners in any material respect, or to cure any ambiguity,
correct or supplement any provision of the Agreement not inconsistent with law
or with other provisions, or make other changes with respect to matters arising
under the Agreement that will not be inconsistent with law or with the
provisions of the Agreement;

WHEREAS, the Preferred Units and
Series B Preferred Units, each as defined in the Agreement, are no longer
outstanding;

WHEREAS, the General Partner has
made the determination pursuant to Section 12.1(b)(iv) of the Agreement
that consent of the Limited Partners of the Partnership is not required with
respect to the matters set forth in this Amendment; and

WHEREAS, all things necessary to
make this Amendment a valid agreement of the Partnership have been done;

NOW, THEREFORE, pursuant to the
authority granted to the General Partner under the Agreement, the Agreement is
hereby amended as follows:

1.             Amendments:

(a)           Section 2.2 of the Agreement is hereby amended by
inserting the following new Section 2.2(i) to read as follows:

(i)            Convertible Preferred Units.  The General Partner hereby makes a capital
contribution to the Partnership in the amount of the gross proceeds from the
sale of the Convertible Notes, which amount is $950 million.  In exchange for such capital contribution,
the Partnership hereby issues to the General Partner 950,000 Convertible  Preferred Units, each Convertible Preferred Unit
representing a capital contribution of $1,000. 
Convertible Preferred Units shall entitle the General Partner to a
Convertible Preferred Return, all as described in Section 4.1 of the
Agreement.  At the time any Convertible
Notes are converted, a number of Convertible Preferred Units equal to the
principal amount of such converted Convertible Notes, divided by $1,000, shall
be converted into (i) to the extent common shares of the General Partner
are issued upon conversion of the Convertible Notes, a number of Common Units
equal to the total number of common shares of the General Partner issued in
connection with such conversion (less the number of common shares of the
General Partner, if any,  received by the
General Partner in connection with such conversion pursuant to the call options
to purchase common shares of the General Partner evidenced by confirmations
dated as of March 12, 2007, as amended as of March 15, 2007, between the
General Partner and each of JPMorgan Chase Bank, National Association and
Deutsche Bank AG acting through its London Branch) (the “Call Options”),
divided by the Conversion Factor, and (ii) to the extent cash is paid upon
conversion of the Convertible Notes, the Partnership shall pay the General
Partner in cash an amount equal to the cash amount paid by the General Partner
with respect to the Convertible Notes upon such conversion.  To the extent that any Convertible Notes are
redeemed, repurchased or repaid, the General Partner shall be obligated to put
to the Partnership a number of Convertible Preferred Units equal to the
principal amount of the Convertible Notes so redeemed, repurchased or repaid,
divided by $1,000.  Upon putting a
Convertible Preferred Unit to the Partnership, the General Partner will be
paid, in liquidation of each Convertible  Preferred Unit
put to the Partnership, an amount equal to $1,000 plus any accumulated, accrued
and unpaid Convertible Preferred Return on such Convertible Preferred Unit, plus
any other amounts 

 2
 

owed or to be paid
by the General Partner in connection with the redemption, repurchase or
repayment of the corresponding Convertible Note.  Notwithstanding the foregoing, the General
Partner shall not put the Convertible Preferred Units to the Partnership or
convert such Convertible Preferred Units if the payment in liquidation or
conversion of those Convertible Preferred Units would cause the Partnership or
the General Partner to be in violation of (i) any provision of any agreement
with respect to indebtedness to which the Partnership is an obligor (the “Debt Instruments”), or (ii) Section 17-607
of the Act.  Before any Convertible
Preferred Units may be converted or put to the Partnership, the General Partner
shall determine in good faith that such conversion, redemption, repurchase or
repayment, as the case may be, of such Convertible Preferred Units will not
cause a violation of the Debt Instruments or Section 17-607 of the Act.  To the extent the General Partner is not
permitted to make a payment in respect of the Convertible Notes by reason of a
restriction imposed by the Debt Instruments or the Convertible Note Indenture,
the Partnership shall not, and shall not be obligated to, make any such payment
to the General Partner with respect to the corresponding Convertible Preferred
Units.  For income tax purposes, it is
the intent that the Convertible Preferred Units and the Call Options shall be
treated as if (1) at the time any Convertible Notes are converted, (i) a number
of Convertible Preferred Units equal to the principal amount of such converted
Convertible Notes, divided by $1,000, were converted into a number of Common
Units equal to the total number of common shares, if any, into which such
Convertible Notes are converted, divided by the Conversion Factor, and (ii) the
Partnership were to pay the General Partner in cash an amount equal to the cash
amount, if any, paid by the General Partner upon such conversion; (2) common
shares of the General Partner, if any, received under the Call Options upon
their exercise were deemed received by the Partnership; and (3) such shares, if
any, were distributed to the General Partner in redemption of an equal number,
divided by the Conversion Factor, of Common Units converted pursuant to (1)(i)
of this sentence.

(b)           Section 4.1 of the Agreement is hereby amended to
read as follows:

4.1  Distribution of Net Cash Flow.  The General Partner shall cause the
Partnership to distribute all or a portion of Net Cash Flow to the Partners
from time to time as determined by the General Partner, but in any event not
less frequently than quarterly, in such amounts as the General Partner shall
determine.  Notwithstanding the
foregoing, the General Partner shall use its reasonable efforts to cause the
Partnership to distribute sufficient amounts to enable the General Partner to
pay shareholder dividends that will (a) satisfy the requirements for
qualifying as a REIT under the Code and Regulations (“REIT
Requirements”), and (b) avoid any federal income or excise tax
liability of the General Partner.  All
amounts withheld pursuant to the Code or a provision of any state or local tax
law with respect to any allocation, payment or distribution to the General
Partner or any Limited Partner shall be treated as amounts distributed to such
Partner.  Upon the receipt by the General
Partner of each Exercise Notice or Series D Exercise Notice pursuant to which
one or more Redemption Partners or Series D Redemption Partners exercise
Redemption Rights in accordance with the provisions of Article IX and
the Redemption Rights Exhibit or the Series D Redemption Rights Exhibit, the
General Partner shall, unless the General Partner has elected to issue only 

 3
 

Shares to such
Redemption Partners in respect of the Purchase Price of the Offered Interests
or Series D Preferred Shares to such Series D Redemption Partners in respect of
the Series D Purchase Price of the Series D Offered Interests, cause the
Partnership to distribute to the Partners, pro  rata in accordance
with their respective Percentage Interests as of the date of delivery of such
Exercise Notice or Series D Exercise Notice, all (or such lesser portion as the
General Partner shall reasonably determine to be prudent under the
circumstances) of Net Cash Flow, which distribution shall be made prior to the
closing of the redemption or purchase and sale of the Offered Interests or the
Series D Offered Interests specified in such Exercise Notice or Series D
Exercise Notice.  Subject to any
restrictions or limitations imposed by the Debt Instruments or Section 17-607
of the Act, distributions shall be made in accordance with the following order
of priority:

(a)           First, to the General Partner, with
respect to the Series A Preferred Units and Convertible Preferred Units, and to
the holders of the Series D Preferred Units, pro  rata, in an
amount equal to the cumulative and unpaid Series A Preferred Return on such
Series A Preferred Units, the cumulative and unpaid Series D Preferred Return
on such Series D Preferred Units and the cumulative and unpaid Convertible
Preferred Return on such Convertible Preferred Units in such a way as to allow
the General Partner to pay cumulative preferential dividends and any additional
amounts (including liquidated damages, if any) required on the Series A
Preferred Shares, the Series D Preferred Units and any outstanding Series D
Preferred Shares, respectively, and interest on the Convertible Notes, payable
to the holders thereof; and

(b)           Next, to the Partners holding Common
Units, pro  rata in accordance with such Partners’ then Percentage
Interests.

(c)           The definition of the term “Partnership Interest”
contained in the Glossary of Defined Terms of the Agreement is hereby amended
to read as follows:

“Partnership
Interest” shall mean an ownership interest of a Partner in the
Partnership from time to time, including, as applicable, such Partner’s Common
Units, Series A Preferred Units, Series D Preferred Units, Series N Preferred
Units, Series P Preferred Units, LTIP Units, Convertible  Preferred
Units and Percentage Interest and such Partner’s Capital Account, and any and
all other benefits to which the holder of such Partnership Interest may be
entitled as provided in this Agreement, together with all obligations of such
Person to comply with the terms of this Agreement.

(d)           The definition of the term “Partnership Unit” contained in
the Glossary of Defined Terms of the Agreement is hereby amended to read as
follows:

“Partnership
Unit” shall mean a Common Unit, Series A Preferred Unit, Series D
Preferred Unit, Series N Preferred Unit, Series P Preferred Unit, LTIP Unit or
Convertible Preferred Unit and shall constitute a fractional, undivided share
of the Partnership Interests corresponding to that particular class of Units.

 4
 

(e)           The definition of the term “Common Unit” contained in the
Glossary of Defined Terms of the Agreement is hereby amended to read as
follows:

“Common Unit”
shall mean Partnership Interests other than Series A Preferred Units, Series D
Preferred Units, Series N Preferred Units, Series P Preferred Units, LTIP Units
and Convertible Preferred Units.

(f)            The Glossary of Defined Terms of the Agreement is hereby
amended to include the following definitions:

 “Convertible Note Indenture”
shall mean the Indenture, dated as of March 16, 2007, among the General
Partner, the Partnership and Deutsche Bank Trust Company Americas, as trustee.

“Convertible
Note Purchase Agreement” shall mean the Purchase Agreement among the
General Partner, the Partnership, J.P. Morgan Securities Inc. and Deutsche Bank
Securities Inc., dated March 12, 2007, relating to the Convertible Notes.

“Convertible
Notes” shall mean those 3.25% Convertible Senior Notes due 2012
issued by the General Partner pursuant to the Convertible Note Indenture and
the Convertible Note Purchase Agreement.

“Convertible
Notes Registration Rights Agreement” shall mean the Registration
Rights Agreement among the General Partner, J.P. Morgan Securities Inc. and
Deutsche Bank Securities Inc., dated March 16, 2007, relating to the
Convertible Notes.

“Convertible
Preferred Return” shall mean an amount
per Convertible Preferred Unit equal to $32.50 per annum, payable semi-annually
in arrears on March 15 and September 15 in each year, commencing on September
15, 2007.  To the extent that the General
Partner is required to pay liquidated damages to holders of the Convertible
Notes pursuant to Section 2(e) of the Convertible Notes Registration Rights
Agreement, then the Convertible Preferred Return shall be increased by an
amount equal to such liquidated damages. 
It is intended that the Convertible Preferred Return will be equal to
the interest and any liquidated damages payable on the Convertible Notes to the
holders thereof so that the General Partner will receive a Convertible
Preferred Return in an amount sufficient for the General Partner to make all
payments in respect of the Convertible Notes.

“Convertible
Preferred Units” shall mean the
Partnership Units of the General Partner representing the Capital Contribution
of the Convertible Note proceeds, as set forth in Section 2.2(i) of the
Agreement.  For the purposes of this
Agreement, if the proceeds actually received by the General Partner are less
than the gross proceeds of the issuance of the Convertible Notes as a result of
any discount, placement fee or other expenses paid or incurred in connection
with such issuance (including, without limitation, the expense of General Partner
in purchasing the Call Options), then the General Partner 

 5
 

shall be deemed to have
made a Capital Contribution to the Partnership in the amount of the gross
proceeds of such issuance and the Partnership shall be deemed simultaneously to
have reimbursed the General Partner pursuant to Section 6.1 for the
amount of such discount, placement fee or other expenses.  Notwithstanding the foregoing, if either or
both of the Call Options are terminated and the General Partner receives cash
or common shares of the General Partner as a result of such termination then,
(i) any cash received will be repaid to the Partnership and, (ii) to the extent
any common shares of the General Partner are received, the number of Common
Units held by the General Partner will be reduced by a number of Common Units
equal to the number of shares of the General Partner received upon such
termination, divided by the Conversion Factor. 
For income tax purposes, it is the intent that clause (i) of the
preceding sentence shall be treated as a distribution to the General Partner
followed by a contribution to the Partnership of such cash, and clause (ii)
shall be treated as a distribution of such common shares of the General Partner
to the General Partner in redemption of such number of Common Units.

(g)           Sections 2.1 and 2.2 of Exhibit A (Allocations
Exhibit) are hereby amended to read as follows:

2.1           Net Income.  After giving effect to the special
allocations set forth in Article 3 of this Allocations Exhibit, Net Income
for any fiscal year or other applicable period shall be allocated in the
following order and priority:

(a)           First, to the Partners, until the
cumulative Net Income allocated pursuant to this subparagraph 2.1(a) for the
current and all prior periods equals the cumulative Net Loss allocated pursuant
to subparagraphs 2.2(c) and (d) hereof for all prior periods, which allocation
shall be made among the Partners in the reverse order that such Net Loss was
allocated to them (and, in the event of a shift of a Partner’s interest in the
Partnership, to the Partners in a manner that most equitably reflects the
successors in interest of such Partners);

(b)           Second, to the General Partner in
respect of the Series A Preferred Units and the Convertible Preferred Units,
and to the holders of the Series D Preferred Units, pro  rata to
such units, until the cumulative Net Income allocated pursuant to this
subparagraph 2.1(b) for the current and all prior periods equals the cumulative
Net Loss allocated pursuant to subparagraph 2.2(b) for all prior periods;

(c)           Third, to the General Partner in
respect of its Series A Preferred Units and Convertible Preferred Units, and to
the holders of the Series D Preferred Units, pro  rata to such
units, until the cumulative Net Income allocated pursuant to this subparagraph
2.1(c) equals the cumulative Series A Preferred Return on the Series A
Preferred Units, the cumulative Series D Preferred Return on the Series D
Preferred Units and the cumulative Convertible Preferred Return on the
Convertible Preferred Units, respectively;

(d)           Intentionally deleted;

(e)           Intentionally deleted;

 6
 

(f)            And thereafter, the balance of the
Net Income, if any, shall be allocated to the Partners holding Common Units in
accordance with their respective Percentage Interests.

2.2           Net Loss.  After giving effect to special allocations set
forth in Article 3 of this Allocation Exhibit, Net Loss of the Partnership for
each fiscal year or other applicable period shall be allocated as follows:

(a)           To the Partners holding Common Units
in accordance with their respective Percentage Interests until the Sub-Capital
Accounts attributable to such Common Units are all reduced to zero (determined
after all capital contributions, distributions, and special allocations under
Article 3 of this Allocations Exhibit allocable to the Partner for the Fiscal
Year have been reflected in the Partner’s Sub-Capital Account);

(b)           Second, to the General Partner in
respect of its Series A Preferred Units and Convertible Preferred Units, and to
the holders of the Series D Preferred Units in respect of their Series D
Preferred Units, pro  rata to such units, until their Sub-Capital
Accounts attributable to such units are reduced to zero;

(c)           Thereafter, to the Partners holding
Common Units in accordance with their respective Percentage Interests; and

(d)           Notwithstanding the preceding
provisions of this Section 2.2, to the extent any Net Losses allocated to a
Partner under this Section 2.2 would cause such Partner (hereinafter, a “Restricted Partner”) to have an Adjusted Capital Account
Deficit at the end of the fiscal year to which such Losses related, such Losses
shall not be allocated to such Restricted Partners and instead shall be
allocated to the other Partner(s) (herein, the “Permitted
Partners”) pro  rata in accordance with their relative
Percentage Interests.

(h)           A new Section 3.8A is hereby added to
Section 3 of Exhibit A (Allocations Exhibit) following Section 3.8:

3.8A        Call Options.  Income or gain attributable to the Call
Options shall be specially allocated to the General Partner.

(i)            A new Section 3.8B is hereby added
to Section 3 of Exhibit A (Allocations Exhibit) following Section
3.8A:

3.8B        Exercise of Conversion
Feature of Convertible Preferred Units.  Exercise of the conversion feature of a
Convertible Preferred Unit shall be treated pursuant to proposed, temporary or
final Treasury regulations addressing noncompensatory options.  Any special allocations of Liquidating Gains
or Liquidating Losses shall be made pursuant to such proposed, temporary or
final regulations prior to allocations made pursuant to Sections 3.9 through
3.11.

 7
 

2.             Defined Terms and Recitals.  As used in this Amendment, capitalized terms
used and defined in this Amendment shall have the meaning assigned to them in
this Amendment, and capitalized terms used in this Amendment but not defined
herein, shall have the meaning assigned to them in the Agreement.

3.             Ratification and Confirmation.  Except to the extent specifically amended by
this Amendment, the terms and provisions of the Agreement, as previously
amended, are hereby ratified and confirmed.

 8
 

IN WITNESS WHEREOF, the
undersigned has executed this Amendment effective as of the date first above
mentioned.

	
  

  	
  GENERAL PARTNER:

  
	
   

  	
  THE MACERICH COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard A. Bayer

  
	
   

  	
   

  	
  Richard A. Bayer

  
	
   

  	
   

  	
  Chief Legal Officer,

  
	
   

  	
   

  	
  Executive Vice President

  
	
   

  	
   

  	
  and Secretary

  

 

 9EXHIBIT 10.1

 

 

 

LOAN
AND SECURITY AGREEMENT

between

NEW
STREAM COMMERCIAL FINANCE, LLC

as
Lender

and

COMPLETE
TOWER SOURCES, INC.

as
Borrower

Dated:
March 6, 2007

TABLE
OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  AMOUNT AND TERMS OF CREDIT

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Loans

  	
   

  	
  1

  
	
   

  	
  1.2

  	
  Term and Prepayment

  	
   

  	
  2

  
	
   

  	
  1.3

  	
  Use of Proceeds

  	
   

  	
  2

  
	
   

  	
  1.4

  	
  Single Loan

  	
   

  	
  2

  
	
   

  	
  1.5

  	
  Interest

  	
   

  	
  2

  
	
   

  	
  1.6

  	
  Cash Management System

  	
   

  	
  3

  
	
   

  	
  1.7

  	
  Fees

  	
   

  	
  3

  
	
   

  	
  1.8

  	
  Receipt of Payments

  	
   

  	
  3

  
	
   

  	
  1.9

  	
  Application and Allocation of Payments

  	
   

  	
  3

  
	
   

  	
  1.10

  	
  Accounting

  	
   

  	
  4

  
	
   

  	
  1.11

  	
  Indemnity

  	
   

  	
  4

  
	
   

  	
  1.12

  	
  Borrowing Base; Reserves

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  CONDITIONS PRECEDENT

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Conditions to the Initial Loans

  	
   

  	
  5

  
	
   

  	
  2.2

  	
  Further Conditions to the Loans

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  REPRESENTATIONS, WARRANTIES AND AFFIRMATIVE
  COVENANTS

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Corporate Existence; Compliance with Law

  	
   

  	
  6

  
	
   

  	
  3.2

  	
  Executive Offices; Corporate or Other Names

  	
   

  	
  6

  
	
   

  	
  3.3

  	
  Corporate Power; Authorization; Enforceable
  Obligations

  	
   

  	
  7

  
	
   

  	
  3.4

  	
  Financial Statements and Projections; Books and
  Records

  	
   

  	
  7

  
	
   

  	
  3.5

  	
  Material Adverse Change

  	
   

  	
  7

  
	
   

  	
  3.6

  	
  Real Estate; Leasehold Property and Equipment

  	
   

  	
  7

  
	
   

  	
  3.7

  	
  Ventures, Subsidiaries and Affiliates; Outstanding
  Stock and Indebtedness

  	
   

  	
  8

  
	
   

  	
  3.8

  	
  Government Regulation; Permits; Margin Regulations

  	
   

  	
  8

  
	
   

  	
  3.9

  	
  Taxes; Charges

  	
   

  	
  9

  
	
   

  	
  3.10

  	
  Payment of Obligations

  	
   

  	
  9

  
	
   

  	
  3.11

  	
  ERISA

  	
   

  	
  9

  
	
   

  	
  3.12

  	
  Litigation

  	
   

  	
  10

  
	
   

  	
  3.13

  	
  Intellectual Property

  	
   

  	
  10

  
	
   

  	
  3.14

  	
  Full Disclosure

  	
   

  	
  10

  
	
   

  	
  3.15

  	
  Hazardous Materials

  	
   

  	
  10

  
	
   

  	
  3.16

  	
  Insurance

  	
   

  	
  11

  
	
   

  	
  3.17

  	
  Deposit and Disbursement Accounts

  	
   

  	
  11

  
	
   

  	
  3.18

  	
  Accounts

  	
   

  	
  11

  
	
   

  	
  3.19

  	
  Conduct of Business

  	
   

  	
  12

  
	
   

  	
  3.20

  	
  Anti-Terrorism Laws

  	
   

  	
  12

  
	
   

  	
  3.21

  	
  Further Assurances

  	
   

  	
  12

  
						

 

 i
 

 

	
  

  	
  3.22

  	
  Brokers

  	
   

  	
  12

  
	
   

  	
  3.23

  	
  Solvency

  	
   

  	
  13

  
	
   

  	
  3.24

  	
  Indenture Designation

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  FINANCIAL MATTERS; REPORTS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Reports and Notices

  	
   

  	
  13

  
	
   

  	
  4.2

  	
  Financial Covenants

  	
   

  	
  15

  
	
   

  	
  4.3

  	
  Other Reports and Information

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  NEGATIVE COVENANTS

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  SECURITY INTEREST

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Grant of Security Interest

  	
   

  	
  17

  
	
   

  	
  6.2

  	
  Lender’s Rights

  	
   

  	
  18

  
	
   

  	
  6.3

  	
  Lender’s Appointment as Attorney-in-fact

  	
   

  	
  19

  
	
   

  	
  6.4

  	
  Grant of License to Use Intellectual Property
  Collateral

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  EVENTS OF DEFAULT: RIGHTS AND REMEDIES

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Events of Default

  	
   

  	
  20

  
	
   

  	
  7.2

  	
  Remedies

  	
   

  	
  22

  
	
   

  	
  7.3

  	
  Waivers by Borrower

  	
   

  	
  23

  
	
   

  	
  7.4

  	
  Proceeds

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  SUCCESSORS AND ASSIGNS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  MISCELLANEOUS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  No Oral Agreement; Complete Agreement; Modification
  of Agreement

  	
   

  	
  24

  
	
   

  	
  9.2

  	
  Expenses

  	
   

  	
  24

  
	
   

  	
  9.3

  	
  No Waiver

  	
   

  	
  24

  
	
   

  	
  9.4

  	
  Severability; Section Titles

  	
   

  	
  25

  
	
   

  	
  9.5

  	
  Authorized Signature

  	
   

  	
  25

  
	
   

  	
  9.6

  	
  Notices

  	
   

  	
  25

  
	
   

  	
  9.7

  	
  Counterparts

  	
   

  	
  26

  
	
   

  	
  9.8

  	
  Time of the Essence

  	
   

  	
  26

  
	
   

  	
  9.9

  	
  GOVERNING LAW

  	
   

  	
  26

  
	
   

  	
  9.10

  	
  SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL

  	
   

  	
  26

  
	
   

  	
  9.11

  	
  USA Patriot Act Notice

  	
   

  	
  27

  
	
   

  	
  9.12

  	
  Press Releases

  	
   

  	
  27

  
	
   

  	
  9.13

  	
  Reinstatement

  	
   

  	
  27

  
	
   

  	
  9.14

  	
  Maximum Legal Rate

  	
   

  	
  27

  

 

 ii

INDEX
OF EXHIBITS AND SCHEDULES

	
  Schedule A

  	
   

  	
  Definitions

  
	
  Schedule B

  	
   

  	
  Lender’s and Borrower’s Addresses for Notices

  
	
  Schedule C

  	
   

  	
  [Intentionally Omitted]

  
	
  Schedule D

  	
   

  	
  Cash Management System

  
	
  Schedule E

  	
   

  	
  Fees and Expenses

  
	
  Schedule F

  	
   

  	
  Schedule of Documents

  
	
  Schedule G

  	
   

  	
  Financial Covenants

  
	
   

  	
   

  	
   

  
	
  Disclosure Schedule (3.2)

  	
   

  	
  Places of Business; Corporate Names

  
	
  Disclosure Schedule (3.6)

  	
   

  	
  Real Estate

  
	
  Disclosure Schedule (3.7)

  	
   

  	
  Stock; Affiliates

  
	
  Disclosure Schedule (3.9)

  	
   

  	
  Taxes

  
	
  Disclosure Schedule (3.11)

  	
   

  	
  ERISA

  
	
  Disclosure Schedule (3.12)

  	
   

  	
  Litigation

  
	
  Disclosure Schedule (3.13)

  	
   

  	
  Intellectual Property

  
	
  Disclosure Schedule (3.15)

  	
   

  	
  Environmental Matters

  
	
  Disclosure Schedule (3.16)

  	
   

  	
  Insurance

  
	
  Disclosure Schedule (3.22)

  	
   

  	
  Broker’s Fees

  
	
  Disclosure Schedule (5(b))

  	
   

  	
  Indebtedness

  
	
  Disclosure Schedule (5(e))

  	
   

  	
  Liens

  
	
  Disclosure Schedule (6.1)

  	
   

  	
  Actions to Perfect Liens

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Notice of Revolving Credit Advance

  
	
  Exhibit B

  	
   

  	
  [Intentionally Omitted]

  
	
  Exhibit C

  	
   

  	
  Form of Borrowing Base Certificate

  
	
  Exhibit D

  	
   

  	
  Form of Accounts Payable Analysis

  
	
  Exhibit E

  	
   

  	
  Form of Accounts Receivable Rollforward Analysis

  
	
  Exhibit F

  	
   

  	
  Form of Revolving Credit Note

  
	
  Exhibit G

  	
   

  	
  [Intentionally Omitted]

  
	
  Exhibit H

  	
   

  	
  Form of Secretarial Certificate

  
	
  Exhibit I

  	
   

  	
  Form of Power of Attorney

  
	
  Exhibit J

  	
   

  	
  Form of Certificate of Compliance

  

 

 

 i

This
LOAN AND SECURITY AGREEMENT is dated as of March 6, 2007, and agreed to by and
between COMPLETE TOWER SOURCES, INC., a Louisiana corporation (“Borrower”),
and NEW STREAM COMMERCIAL FINANCE, LLC, a Delaware limited liability company (“Lender”).

RECITALS

A.            Borrower
desires to obtain the Loans and other financial accommodations from Lender and
Lender is willing to provide the Loans and accommodations all in accordance
with the terms of this Agreement.

B.            Capitalized
terms used herein shall have the meanings assigned to them in Schedule A
and, for purposes of this Agreement and the other Loan Documents, the rules of
construction set forth in Schedule A shall govern.  All schedules, attachments, addenda and
exhibits hereto, or expressly identified to this Agreement, are incorporated
herein by reference, and taken together with this Agreement, constitute but a
single agreement.

AGREEMENT

NOW,
THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, the parties hereto agree as follows:

1.             AMOUNT AND TERMS OF CREDIT

1.1           Loans.  (a) 
Subject to the terms and conditions of this Agreement, from the Closing
Date and until the Commitment Termination Date (i) Lender agrees to make
available to Borrower advances (each, a “Revolving Credit Advance”) in an
aggregate outstanding amount not to exceed the Borrowing Availability, and (ii)
Borrower may at its request from time to time borrow, repay and reborrow under
this Section 1.1.  The Revolving Credit
Loan shall be evidenced by, and be repayable in accordance with the terms of,
the Revolving Credit Note and this Agreement.

(b)           Borrower shall
request each Revolving Credit Advance by written notice to Lender substantially
in the form of Exhibit A (each a “Notice of Revolving Credit Advance”) given no
later than 11:00 a.m. New York City time on the Business Day of the proposed
advance.  Lender shall be fully protected
under this Agreement in relying upon, and shall be entitled to rely upon, (i)
any Notice of Revolving Credit Advance believed by Lender to be genuine, and
(ii) the assumption that the Persons making electronic requests or executing
and delivering a Notice of Revolving Credit Advance were duly authorized,
unless the responsible individual acting thereon for Lender shall have actual
knowledge to the contrary.  As an
accommodation to Borrower, Lender may permit telephonic, electronic, or
facsimile requests for a Revolving Credit Advance and electronic or facsimile
transmittal of instructions, authorizations, agreements or reports to Lender by
Borrower.  Unless Borrower specifically
directs Lender in writing not to accept or act upon telephonic, facsimile or
electronic communications from Borrower, Lender shall have no liability to
Borrower for any loss or damage suffered by Borrower as a result of Lender’s
honoring of any requests, execution of any instructions, authorizations or
agreements or reliance on any reports communicated to it

telephonically, by facsimile or electronically and purporting to have
been sent to Lender by Borrower and Lender shall have no duty to verify the
origin of any such communication or the identity or authority of the Person
sending it.

(c)           In making any Loan
hereunder Lender shall be entitled to rely upon the most recent Borrowing Base
Certificate delivered to Lender by Borrower and other information available to
Lender.  Lender shall be under no
obligation to make any further Revolving Credit Advance or incur any other
Obligation if Borrower shall have failed to deliver a Borrowing Base
Certificate to Lender by the time specified in Section 4.1(e).  At Lender’s option, all principal, interest,
fees, costs, expenses and other charges provided for in this Agreement or the
other Loan Documents may be charged directly to the loan account(s) of Borrower
maintained by Lender.

1.2           Term
and Prepayment.  (a)  Upon the Commitment Termination Date the
obligation of Lender to make Revolving Credit Advances and extend other credit
hereunder shall immediately terminate and Borrower shall pay to Lender in full,
in cash: (i) all outstanding Revolving Credit Advances and all accrued but
unpaid interest thereon; and (ii) all other non-contingent Obligations due to
or incurred by Lender.

(b)           If the Revolving
Credit Loan shall at any time exceed the Borrowing Availability, then Borrower
shall immediately repay the Revolving Credit Loan in the amount of such excess.

(c)           Borrower shall have
the right, at any time upon thirty (30) days’ prior written notice to Lender to
(i) terminate voluntarily Borrower’s right to receive or benefit from, and
Lender’s obligation to make and to incur, Revolving Credit Advances and (ii)
prepay all of the Obligations.  The
effective date of termination of the Revolving Credit Loan specified in such
notice shall be the Commitment Termination Date.

(d)           Lender and Borrower
may extend the Stated Expiry Date upon terms and conditions as set forth in the
Commitment Letter and such other terms and conditions satisfactory and
acceptable to Lender in its discretion. 
If the Stated Expiry Date is extended, no additional closing fee or
commitment fee shall be payable in connection with such extension.  Nothing contained herein shall be deemed to
be a commitment or agreement by Lender to extend the Stated Expiry Date, which
shall be in Lender’s sole discretion.

1.3           Use
of Proceeds.  Borrower shall use the
proceeds of the Loans, in part, to refinance existing indebtedness, for
transaction expenses, for working capital and other general corporate purposes,
and for such other purposes as set forth in the Authorization to Pay Proceeds.

1.4           Single
Loan.  The Loans and all of the other
Obligations of Borrower to Lender shall constitute one general obligation of
Borrower secured by all of the Collateral.

1.5           Interest.  (a) 
Borrower shall pay interest to Lender on the aggregate outstanding
Revolving Credit Advances at a floating rate equal to the greater of (i) 11%
per annum and (ii) the Index Rate plus 2.75% per annum (the “Revolving Credit
Rate”).  All computations of interest
shall be made by Lender on the basis of a three hundred and sixty (360) day
year, in each case for the actual number of days occurring in the period for
which such interest or fee is payable. 
The Index Rate is a floating

 2
 

rate determined for each day.  Each determination by Lender of an interest
rate and Fees hereunder shall be presumptive evidence of the correctness of
such rates and Fees.  Each determination
by Lender of an interest rate hereunder shall be conclusive and binding for all
purposes, absent manifest error.  In no
event will Lender charge interest at a rate that exceeds the Maximum Legal
Rate.

(b)           Interest shall be
payable on the outstanding Revolving Credit Advances (i) in arrears for the
preceding calendar month on the first day of each calendar month, (ii) on the
Commitment Termination Date, and (iii) if any interest accrues or remains
payable after the Commitment Termination Date, upon demand by Lender.

(c)           Effective upon the
occurrence of any Event of Default under Section 7.1(a) and for so long as such
Event of Default shall be continuing, the Revolving Credit Rate shall
automatically be increased by four percentage points (4%) per annum, and
effective upon any other Event of Default and for so long as such Event of
Default shall be continuing, the Revolving Credit Rate shall automatically be
increased by two percentage points (2%) per annum (each such increased rate,
the “Default Rate”; provided, however, in no event shall the Default Rate
exceed the Maximum Legal Rate), and all outstanding Obligations shall continue
to accrue interest from the date of such Event of Default at the Default Rate
applicable to such Obligations.

(d)           If any interest or
any other payment (including Unused Line Fee, Commissions and Collateral
Monitoring Fees) to Lender under this Agreement becomes due and payable on a
day other than a Business Day, such payment date shall be extended to the next
succeeding Business Day and interest thereon shall be payable at the then
applicable rate during such extension.

1.6           Cash
Management System.  On or prior to
the Closing Date and until the Termination Date, Borrower will establish and
maintain the cash management system described in Schedule D.  All payments in respect of the Collateral
shall be made to or deposited in the blocked or lockbox accounts described in Schedule
D in accordance with the terms thereof.

1.7           Fees.  Borrower agrees to pay to Lender the Fees set
forth in Schedule E.

1.8           Receipt
of Payments.  Borrower shall make
each payment under this Agreement (not otherwise made pursuant to Section 1.9)
without set-off, counterclaim or deduction and free and clear of all Taxes not
later than 12:00 noon New York City time on the day when due in lawful money of
the United States of America in immediately available funds to the Collection
Account.  If Borrower shall be required
by law to deduct any Taxes from any payment to Lender under any Loan Document,
then the amount payable to Lender shall be increased so that, after making all
required deductions, Lender receives an amount equal to that which it would
have received had no such deductions been made. 
For purposes of computing interest and Fees, all payments shall be
deemed received by Lender on the first (1st) Business Day following receipt of
immediately available funds in the Collection Account.  For purposes of determining the Borrowing
Availability, payments shall be deemed received by Lender upon receipt of
immediately available funds in the Collection Account.

1.9           Application
and Allocation of Payments.  Borrower
irrevocably agrees that Lender shall have the continuing and exclusive right to
apply any and all payments against the then due and payable Obligations in such
order as Lender may deem advisable. 
Lender is authorized to, and at its option

 3
 

may (without prior notice or
precondition and at any time or times), but shall not be obligated to, make or
cause to be made Revolving Credit Advances on behalf of Borrower for: (a)
payment of all Fees, expenses, indemnities, charges, costs, principal,
interest, or other Obligations owing by Borrower under this Agreement or any of
the other Loan Documents, (b) the payment, performance or satisfaction of any
of Borrower’s obligations with respect to preservation of the Collateral, or
(c) any premium in whole or in part required in respect of any of the policies
of insurance required by this Agreement, even if the making of any such
Revolving Credit Advance causes the outstanding balance of the Revolving Credit
Loan to exceed the Borrowing Availability, and Borrower agrees to repay
immediately, in cash, any amount by which the Revolving Credit Loan exceeds the
Borrowing Availability.

1.10         Accounting.  Lender is authorized to record on its books
and records the date and amount of each Loan and each payment of principal
thereof and such recordation shall constitute prima facie evidence of the
accuracy of the information so recorded absent manifest error.  Lender shall provide Borrower on a monthly
basis a statement and accounting of such recordations but any failure on the
part of the Lender to keep any such recordation (or any errors therein) or to
send a statement thereof to Borrower shall not in any manner affect the
obligation of Borrower to repay any of the Obligations.  Except to the extent that Borrower shall,
within thirty (30) days after such statement and accounting is sent, notify
Lender in writing of any objection Borrower may have thereto (stating with
particularity the basis for such objection), such statement and accounting
shall be deemed final, binding and conclusive upon Borrower, absent manifest
error.

1.11         Indemnity.  Borrower agrees to indemnify and hold Lender
and its Affiliates, and their respective employees, attorneys and agents (each,
an “Indemnified Person”), harmless from and against any and all suits, actions,
proceedings, claims, damages, losses, liabilities and expenses of any kind or
nature whatsoever (including attorneys’ fees and disbursements and other costs
of investigation or defense, including those incurred upon any appeal) that may
be instituted or asserted against or incurred by any such Indemnified Person as
the result of credit having been extended, suspended or terminated under this
Agreement and the other Loan Documents or with respect to the execution,
delivery, enforcement, performance and administration of, or in any other way
arising out of or relating to, this Agreement and the other Loan Documents or
any other documents or transactions contemplated by or referred to herein or
therein and any actions or failures to act with respect to any of the
foregoing, including any and all product liabilities, Environmental
Liabilities, Taxes, brokers’ fees and legal costs and expenses arising out of
or incurred in connection with disputes between or among any parties to any of
the Loan Documents (collectively, “Indemnified Liabilities”), except to the
extent that any such Indemnified Liability is finally determined by a court of
competent jurisdiction to have resulted solely from such Indemnified Person’s
gross negligence or willful misconduct. 
NO INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR LIABLE TO BORROWER, ANY
SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OR ANY OTHER PERSON ASSERTING
CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR ANY ACT OR FAILURE TO ACT UNDER ANY
POWER OF ATTORNEY OR FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES
THAT MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR
TERMINATED UNDER THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR AS A RESULT OF
ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER.

 4
 

1.12         Borrowing
Base; Reserves.  The Borrowing Base
shall be determined by Lender (including the eligibility of Accounts) based on
the most recent Borrowing Base Certificate delivered to Lender in accordance
with Section 4.1(e) and such other information available to Lender.  The Revolving Credit Loan shall be subject to
Lender’s continuing right to withhold from Borrowing Availability reserves, and
to increase and decrease such reserves from time to time, if and to the extent
that in Lender’s good faith credit judgment such reserves are necessary,
including to protect Lender’s interest in the Collateral or to protect Lender
against possible non-payment of Accounts for any reason by Account Debtors or
possible diminution of the value of any Collateral or possible non-payment of
any of the Obligations or for any Taxes or any amounts due any landlord, lessor
or any other Person by Borrower or in respect of any state of facts that could
constitute a Default.  Lender may, at its
option, implement reserves by designating as ineligible a sufficient amount of
Accounts that would otherwise be Eligible Accounts so as to reduce the
Borrowing Base by the amount of the intended reserves.

2.             CONDITIONS PRECEDENT

2.1           Conditions
to the Initial Loans.  Lender shall
not be obligated to make any of the Loans perform any other action hereunder,
until the following conditions have been satisfied in a manner satisfactory to
Lender in its sole discretion, or waived in writing by Lender:

(a)           the Loan Documents
to be delivered on or before the Closing Date shall have been duly executed and
delivered by the appropriate parties, all as set forth in the Schedule of
Documents (Schedule F);

(b)           Lender shall have
received evidence satisfactory to it that the insurance policies provided for
in Section 3.16 are in full force and effect, together with appropriate
evidence showing loss payable or additional insured clauses or endorsements in
favor of Lender as required under such Section;

(c)           as of the Closing
Date, Net Borrowing Availability shall be not less than $500,000 after giving effect
to the initial Revolving Credit Advance (on a pro forma basis, with trade
payables being paid currently, and expenses and liabilities being paid in the
ordinary course of business and without acceleration of sales); and

(d)           Lender shall have
received an opinion(s) of counsel to the Borrower with respect to the Loan
Documents in form and substance satisfactory to Lender.

2.2           Further
Conditions to the Loans.  Lender
shall not be obligated to fund any Loan (including the initial Loans), if, as
of the date thereof:

(a)           any representation
or warranty by Borrower contained herein or in any of the other Loan Documents
shall be untrue or incorrect as of such date, except to the extent that any
such representation or warranty is expressly stated to relate to a specific
earlier date, in which case, such representation and warranty shall be true and
correct as of such earlier date; or

(b)           any event or
circumstance that has had or reasonably could be expected to have a Material
Adverse Effect shall have occurred since the Closing Date; or

 5
 

(c)           any Default shall
have occurred and be continuing or would result after giving effect to such
Loan; or

(d)           after giving effect
to such Loan, the Revolving Credit Loan would exceed the Borrowing
Availability;

The request and acceptance by
Borrower of the proceeds of any Loan shall be deemed to constitute, as of the
date of such request and the date of such acceptance, (i) a representation and
warranty by Borrower that the conditions in this Section 2.2 have been
satisfied and (ii) a restatement by Borrower of each of the representations and
warranties made by it in any Loan Document and a reaffirmation by Borrower of
the granting and continuance of Lender’s Liens pursuant to the Loan Documents.

3.             REPRESENTATIONS, WARRANTIES AND AFFIRMATIVE COVENANTS

To induce Lender to enter into this
Agreement and to make the Loans, Borrower represents and warrants to Lender
(each of which representations and warranties shall survive the execution and
delivery of this Agreement), and promise to and agree with Lender until the
Termination Date as follows:

3.1           Corporate
Existence; Compliance with Law. 
Borrower: (a) is, as of the Closing Date, and will continue to be (i) a
corporation duly organized, validly existing and in good standing under the
laws of the State of Louisiana, (ii) duly qualified to do business and in good
standing in each other jurisdiction where its ownership or lease of property or
the conduct of its business requires such qualification, except where the
failure to be so qualified could not reasonably be expected to have a Material
Adverse Effect, and (iii) in compliance with all Requirements of Law and
Contractual Obligations, except to the extent failure to comply therewith could
not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect; and (b) has and will continue to have (i) the
requisite corporate power and authority and the legal right to execute, deliver
and perform its obligations under the Loan Documents, and to own, pledge, mortgage
or otherwise encumber and operate its properties, to lease the property it
operates under lease, and to conduct its business as now, heretofore or
proposed to be conducted, and (ii) all licenses, permits, franchises, rights,
powers, consents or approvals from or by all Persons or Governmental
Authorities having jurisdiction over Borrower that are necessary or appropriate
for the conduct of its business, except where the failure to maintain such
licenses, permits, franchises, rights, powers, consents or approvals could not
reasonably be expected to have a Material Adverse Effect.

3.2           Executive
Offices; Corporate or Other Names. 
(a) Borrower’s name as it appears in official filings in the state of
its incorporation, (b) the type of entity of Borrower, (c) the organizational
identification number issued by Borrower’s state of incorporation or a
statement that no such number has been issued, (d) Borrower’s state of
incorporation, and (e) the location of Borrower’s chief executive office,
corporate offices, warehouses, other locations of Collateral and locations
where records with respect to Collateral are kept (including in each case the
county of such locations) are as set forth in Disclosure Schedule (3.2).  As of the Closing Date, during the prior five
years, except as set forth in Disclosure Schedule (3.2), Borrower has
been known as or conducted business in any other name (including trade
names).  Borrower has only one state of
incorporation or organization.

 6
 

3.3           Corporate
Power; Authorization; Enforceable Obligations.  The execution, delivery and performance by
Borrower of the Loan Documents to which it is a party, and the creation of all
Liens provided for herein and therein: (a) are and will continue to be within
Borrower’s power and authority; (b) have been and will continue to be duly
authorized by all necessary or proper action; (c) are not and will not be in
violation of any Requirement of Law or Contractual Obligation of Borrower (d)
do not and will not result in the creation or imposition of any Lien (other
than Permitted Encumbrances) upon any of the Collateral; and (e) do not and
will not require the consent or approval of any Governmental Authority or any
other Person.  As of the Closing Date,
each Loan Document shall have been duly executed and delivered on behalf of
Borrower, and each such Loan Document upon such execution and delivery shall be
and will continue to be a legal, valid and binding obligation of Borrower,
enforceable against it in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency and other similar laws affecting
creditors’ rights generally.

3.4           Financial
Statements and Projections; Books and Records.  (a) The Financial Statements delivered by
Borrower to Lender for its most recently ended Fiscal Year and Fiscal Month,
are true, correct and complete in all material respects and reflect fairly and
accurately the financial condition of Borrower as of the date of each such
Financial Statement in accordance with GAAP. 
The Projections most recently delivered by Borrower to Lender have been
prepared in good faith, with care and diligence and use assumptions that are
reasonable under the circumstances at the time such Projections were prepared
and as of the date delivered to Lender and all such assumptions are disclosed
in the Projections.

(b)           Borrower shall keep
adequate Books and Records with respect to the Collateral and its business
activities in which proper entries, reflecting all consolidated and
consolidating financial transactions, and payments and credits received on, and
all other dealings with, the Collateral, will be made in accordance with GAAP
and all Requirements of Law and on a basis consistent with the Financial
Statements.

3.5           Material
Adverse Change.  Between the date of
Borrower’s most recently audited Financial Statements delivered to Lender and
the Closing Date and except as otherwise disclosed in writing to the Lender by
Borrower: (a) Borrower has not incurred any obligations, contingent or
non-contingent liabilities, or liabilities for Charges, long-term leases or
unusual forward or long-term commitments that are not reflected in the
Projections delivered on the Closing Date and which could, alone or in the
aggregate, reasonably be expected to have a Material Adverse Effect; (b) there
has been no material deviation from such Projections; and (c) no events have
occurred that alone or in the aggregate has had or could reasonably be expected
to have a Material Adverse Effect.  No
Requirement of Law or Contractual Obligation of Borrower has or have had or
could reasonably be expected to have a Material Adverse Effect.  Borrower is not in default, and to Borrower’s
knowledge no third party is in default, under or with respect to any of its
Contractual Obligations, that alone or in the aggregate has had or could
reasonably be expected to have a Material Adverse Effect.

3.6           Real
Estate; Leasehold Property and Equipment. 
The Real Property listed in Disclosure Schedule (3.6) constitutes
all of the Real Property owned, leased, or used by Borrower in its business,
and Borrower will not execute any material agreement or contract in respect of
such Real

 7
 

Property after the date of this
Agreement, other than in the ordinary course of business, without giving Lender
prompt prior written notice thereof. 
Borrower holds and will continue to hold good and marketable leasehold
title to all of its owned real estate, and good and marketable title to all of
its other properties and assets, and valid and insurable leasehold interests in
all of its leases (both as lessor and lessee, sublessee or assignee), and none
of the properties and assets of Borrower are or will be subject to any Liens,
except Permitted Encumbrances.  With
respect to the Real Property, Leasehold Property and Equipment, Borrower shall use
the Real Property, Leasehold Property and Equipment with all reasonable care
and caution and in accordance with applicable standards of any insurance and in
conformity with all applicable laws; and Borrower shall assume all
responsibility and liability arising from the use of the Real Property,
Leasehold Property and Equipment.

3.7           Ventures,
Subsidiaries and Affiliates; Outstanding Stock and Indebtedness.  Except as set forth in Disclosure Schedule
(3.7), as of the Closing Date Borrower has no Subsidiaries, and is not
engaged in any joint venture or partnership with any other Person.  All of the issued and outstanding Stock of
Borrower (including all rights to purchase, options, warrants or similar rights
or agreements pursuant to which Borrower may be required to issue, sell,
repurchase or redeem any of its Stock) as of the Closing Date is owned by each
of the Stockholders (and in the amounts) set forth in Disclosure
Schedule (3.7).  All outstanding
Indebtedness of Borrower as of the Closing Date is described in Disclosure
Schedule (5(b)).

3.8           Government
Regulation; Permits; Margin Regulations.

(a)           Borrower is not
subject to or regulated under any Federal or state statute, rule or regulation
that restricts or limits such Person’s ability to incur Indebtedness, pledge
its assets, or to perform its obligations under the Loan Documents.  The making of the Loans, the application of
the proceeds and repayment thereof, and the consummation of the transactions
contemplated by the Loan Documents do not and will not violate any Requirement
of Law by Borrower.

(b)           Borrower is not
engaged, nor will it engage, in the business of extending credit for the
purpose of “purchasing” or “carrying” any “margin security” as such terms are
defined in Regulation U of the Federal Reserve Board as now and hereafter in
effect (such securities being referred to herein as “Margin Stock”).  Borrower does not own any Margin Stock, and
none of the proceeds of the Loans or other extensions of credit under this
Agreement will be used, directly or indirectly, for the purpose of purchasing
or carrying any Margin Stock or reducing or retiring any Indebtedness that was
originally incurred to purchase or carry any Margin Stock.  Borrower will not take or permit to be taken
any action that might cause any Loan Document to violate any regulation of the
Federal Reserve Board.

(c)           Borrower has
obtained all permits, licenses, approvals, authorizations, licenses, filings,
registrations, consents, permits, exemptions, registrations, qualifications,
designations, declarations, or other actions or undertakings, consents,
certificates, orders or authorizations of any Governmental Authority,
including, without limitation, any certificates of public convenience and all
grants, approvals, licenses, filings and registrations from or to the FCC or
any PUC or any other Communications Regulatory Authority or under
Communications Law necessary for the lawful conduct of its business as
presently conducted, including the provision of the telecommunication services
set forth in any Permits (the “Permits”) unless the failure to have any of the
same would not

 8
 

individually or in the aggregate result in a Material Adverse
Effect.  All of the Permits are valid and
subsisting and in full force and effect. 
There are no investigations, actions, claims or proceedings pending or
to the best of Borrower’s knowledge, as the result of the practices of Borrower
or any of its Affiliates pursuant to any violations of or failure to comply
with any Communications Laws or otherwise, or threatened in writing that seek
the revocation, cancellation, non-renewal, suspension or modification of any of
the Permits except where such investigations, actions, claims or proceedings
could not be reasonably expected to have a Material Adverse Effect.  Lender will not, by reason of the execution,
delivery and performance of this Agreement or any of the other Loan Documents,
be subject to the regulation or control of either the FCC or any PUC.

3.9           Taxes;
Charges.  Except as disclosed in Disclosure
Schedule (3.9) all tax returns, reports and statements required by any
Governmental Authority to be filed by Borrower have, as of the Closing Date,
been filed and will, until the Termination Date, be filed with the appropriate
Governmental Authority, except where the failure to file such tax returns,
reports and statements could not reasonably be expected to have a Material
Adverse Effect, and no tax Lien has been filed against Borrower or its
property.  Proper and accurate amounts
have been and will be withheld by Borrower from its employees for all periods
in compliance with all Requirements of Law and such withholdings have and will
be timely paid to the appropriate Governmental Authorities, except where the
failure to comply with such Requirements of Law could not reasonably be
expected to have a Material Adverse Effect. 
Disclosure Schedule (3.9) sets forth as of the Closing Date
those taxable years for which Borrower’s tax returns are currently being
audited by the IRS or any other applicable Governmental Authority and any
assessments or threatened assessments in connection with such audit, or
otherwise currently outstanding.  Except
as described on Disclosure Schedule (3.9), Borrower is not liable for
any Charges: (a) under any agreement (including any tax sharing agreements or
agreement extending the period of assessment of any Charges) or (b) to Borrower’s
knowledge, as a transferee.  As of the
Closing Date, except as described on Disclosure Schedule (3.9), Borrower
has not agreed or been requested to make any adjustment under IRC Section
481(a), by reason of a change in accounting method or otherwise, which could
reasonably be expected to have a Material Adverse Effect.

3.10         Payment
of Obligations.  Borrower will pay,
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all of its Charges and other obligations of
whatever nature, except where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of Borrower and
none of the Collateral is or could reasonably be expected to become subject to
any Lien or forfeiture or loss as a result of such contest.

3.11         ERISA.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other existing ERISA
Events, could reasonably be expected to result in a liability of Borrower of
more than the Minimum Actionable Amount. 
Except as disclosed in Disclosure Schedule (3.11), the present
value of all accumulated benefit obligations of Borrower under each Plan (based
on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent Financial
Statements reflecting such amounts, exceed the fair market value of the assets
of such Plan by more than the Minimum Actionable Amount, and the present value
of all accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Account Standards No.
87) did not,

 9
 

as of the date of the most recent
Financial Statements reflecting such amounts, exceed the fair market value of
the assets of such underfunded Plans by more than the Minimum Actionable
Amount.  Neither Borrower nor any ERISA
Affiliate has incurred or reasonably expects to incur any Withdrawal Liability
in excess of the Minimum Actionable Amount.

3.12         Litigation.  No Litigation is pending or, to the knowledge
of Borrower, threatened by or against Borrower or against Borrower’s properties
or revenues (a) with respect to any of the Loan Documents or any of the
transactions contemplated hereby or thereby, or (b) that could reasonably be
expected to have a Material Adverse Effect. 
Except as set forth in Disclosure Schedule (3.12), as of the
Closing Date there is no Litigation pending or to the knowledge of Borrower
threatened against Borrower that seeks damages in excess of $250,000 or
injunctive relief or alleges criminal misconduct of Borrower.  Borrower shall notify Lender promptly in
writing upon learning of the existence, threat or commencement of any
Litigation against Borrower, any ERISA Affiliate or any Plan or any allegation
of Criminal misconduct against Borrower.

3.13         Intellectual
Property.  As of the Closing Date,
all material registered Intellectual Property owned or used by Borrower is
listed, together with application or registration numbers, where applicable, in
Disclosure Schedule (3.13). 
Borrower owns, or is licensed to use, all Intellectual Property
necessary to conduct its business as currently conducted except for such
Intellectual Property the failure of which to own or license could not
reasonably be expected to have a Material Adverse Effect.  Borrower will maintain the patenting and
registration of all Intellectual Property necessary to conduct its business as
currently conducted (except for such Intellectual Property the failure of which
to own or license could not reasonably be expected to have a Material Adverse
Effect) with the United States Patent and Trademark Office, the United States
Copyright Office, or other appropriate Governmental Authority and Borrower will
promptly patent or register, as the case may be, all new Intellectual Property
and notify Lender in writing five (5) Business Days prior to filing any such
new patent or registration.

3.14         Full
Disclosure.  No information contained
in any Loan Document, the Financial Statements or any written statement
furnished by or on behalf of Borrower under any Loan Document, or to induce
Lender to execute the Loan Documents, contains any untrue statement of a
material fact or omits to state a material fact necessary to make the
statements contained herein or therein not misleading in light of the
circumstances under which they were made.

3.15         Hazardous
Materials.  Except as set forth in Disclosure
Schedule (3.15), as of the Closing Date, (a) each Real Property location
owned, leased or occupied by Borrower is maintained free of contamination from
any Hazardous Material, (b) Borrower is not subject to any Environmental
Liabilities or, to Borrower’s knowledge, potential Environmental Liabilities,
in excess of $250,000 in the aggregate, (c) no notice has been received by
Borrower identifying it as a “potentially responsible party” or requesting
information under CERCLA or analogous state statutes, and to the knowledge of
Borrower, there are no facts, circumstances or conditions that may result in
Borrower being identified as a “potentially responsible party” under CERCLA or
analogous state statutes; and (d) Borrower has provided to Lender copies of all
existing environmental reports, reviews and audits and all written information
pertaining to actual or potential Environmental Liabilities, in each case
relating to Borrower.  Borrower: (i)
shall comply in all material respects with all applicable Environmental Laws
and environmental permits; (ii) shall notify Lender in writing within seven (7)

 10
 

days if and when it becomes aware of
any Release, on, at, in, under, above, to, from or about any of its Real
Property; and (iii) shall promptly forward to Lender a copy of any order,
notice, permit, application, or any communication or report received by it in
connection with any such Release.

3.16         Insurance.  As of the Closing Date, Disclosure
Schedule (3.16) lists all insurance of any nature maintained for current
occurrences by Borrower, as well as a summary of the terms of such
insurance.  Borrower shall deliver to
Lender certified copies and endorsements to all of its and those of its
Subsidiaries (if any) (a) “All Risk” insurance policies naming Lender loss
payee, and (b) general liability and other liability policies naming Lender as
an additional insured.  All policies of
insurance on real and personal property will contain an endorsement, in form
and substance acceptable to Lender, showing loss payable to Lender (Form 438
BFU or equivalent).  Such endorsement, or
an independent instrument furnished to Lender, will provide that the insurance companies
will give Lender at least thirty (30) days’ prior written notice before any
such policy or policies of insurance shall be altered or canceled and that no
act or default of Borrower or any other Person shall affect the right of Lender
to recover under such policy or policies of insurance in case of loss or
damage.  Borrower shall direct all
present and future insurers under its “All Risk” policies of insurance to pay
all proceeds payable thereunder directly to Lender.  If any insurance proceeds are paid by check,
draft or other instrument payable to Borrower and Lender jointly, Lender may
endorse Borrower’s name thereon and do such other things as Lender may deem
advisable to reduce the same to cash.

3.17         Deposit
and Disbursement Accounts. 
Attachment I to Schedule D lists all banks and other financial
institutions at which Borrower maintains deposits and/or other accounts,
including the Disbursement Account, and such Attachment correctly identifies
the name, address and telephone number of each such depository, the name in
which the account is held, a description of the purpose of the account, and the
complete account number.

3.18         Accounts.  As of the date of each Borrowing Base
Certificate delivered to Lender, each Account listed thereon as an Eligible
Account shall be an Eligible Account. 
Borrower has not made, and will not make, any agreement with any Account
Debtor for any extension of time for the payment of any Account, any compromise
or settlement for less than the full amount thereof, any release of any Account
Debtor from liability therefor, or any deduction therefrom except a discount or
allowance for prompt or early payment allowed by Borrower in the ordinary
course of its business consistent with historical practice and as previously
disclosed to Lender in writing. Disclosure Schedule (3.18) sets forth
each Contract of the Borrower with any Account Debtor that gives such Account
Debtor the right (under such Contract, under common law or otherwise) to offset
any Accounts for Borrower’s failure to perform under such Contract and Borrower
has obtained an offset waiver for each such contract in form and substance
satisfactory to Lender.  With respect to
the Accounts pledged as collateral pursuant to any Loan Document (a) the
amounts shown on all invoices, statements and reports that may be delivered to
the Lender with respect thereto are actually and absolutely owing to Borrower
as indicated thereon and are not in any way contingent; (b) no payments have
been or shall be made thereon except payments immediately delivered to the
applicable accounts described in paragraph 1 to Schedule D or the Lender as
required hereunder; and (c) to Borrower’s knowledge all Account Debtors have
the capacity to contract. Borrower shall notify Lender promptly of any event or
circumstance that to Borrower’s knowledge would cause Lender to consider any
then existing Account as no longer constituting an Eligible Account.

 11

3.19         Conduct
of Business.  Borrower (a) shall
conduct its business substantially as now conducted or as otherwise permitted
hereunder, and (b) shall at all times maintain, preserve and protect all of the
Collateral and Borrower’s other property, used or useful in the conduct of its
business and keep the same in good repair, working order and condition and
make, or cause to be made, all necessary or appropriate repairs, replacements
and improvements thereto consistent with industry practices.

3.20         Anti-Terrorism
Laws.

(a)           Neither Borrower
nor, to the knowledge of Borrower, any of its Affiliates is in violation of any
laws relating to terrorism or money laundering (“Anti-Terrorism Laws”),
including Executive Order No. 13224 on Terrorist Financing, effective September
24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Public Law 107-56.

(b)           Neither Borrower
nor, to the knowledge of Borrower, any Affiliate or other agent of Borrower
acting or benefiting in any capacity in connection with the Loans is any of the
following: (i) a person that is listed in the annex to, or is otherwise subject
to the provisions of, the Executive Order; (ii) a person owned or controlled
by, or acting for or on behalf of, any person that is listed in the annex to,
or is otherwise subject to the provisions of, the Executive Order; (iii) a
person with which the Lender is prohibited from dealing or otherwise engaging
in any transaction by any Anti-Terrorism Law; (iv) a person that commits,
threatens or conspires to commit or supports “terrorism” as defined in the
Executive Order; or (v) a person that is named as a “specially designated
national and blocked person” on the most current list published by the U.S.
Treasury Department Office of Foreign Assets Control (“OFAC”) at its official
website or any replacement website or other replacement official publication of
such list.

(c)           Neither Borrower
nor, to the knowledge of Borrower, any agent of any Affiliate acting in any
capacity in connection with the Loans (i) conducts any business or engages in
making or receiving any contribution of funds, goods or services to or for the
benefit of any person described in paragraph (b) above, (ii) deals in, or
otherwise engages in any transaction relating to, any property or interests in
property blocked pursuant to the Executive Order, or (iii) engages in or
conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in any Anti-Terrorism Law.

3.21         Further
Assurances.  At any time and from
time to time, upon the written request of Lender and at the sole expense of
Borrower, Borrower shall promptly and duly execute and deliver any and all such
further instruments and documents and take such further action as Lender may
reasonably deem necessary (a) to obtain the full benefits of this Agreement and
the other Loan Documents, (b) to protect, preserve and maintain Lender’s rights
in any Collateral, or (c) to enable Lender to exercise all or any of the rights
and powers herein granted.

3.22         Brokers.  Except as set forth on Disclosure Schedule
(3.22), no broker or finder acting on behalf of Borrower or Affiliate
thereof brought about the obtaining, making or closing of the Loans and neither
Borrower nor any Affiliate of Borrower has any obligation to any Person in
respect of any finder’s or brokerage fees in connection therewith.

 12
 

3.23         Solvency.  Both before and after giving effect to (a)
the Loans to be made or incurred on the Closing Date or such other date as
Loans requested hereunder are made or incurred, (b) the disbursement of the
proceeds of such Loans pursuant to the instructions of Borrower, and (c) the
payment and accrual of all transaction costs in connection with the foregoing,
Borrower is and will be Solvent.  With
respect thereto, Lender shall have received an executed Officer’s Certificate,
in form and substance satisfactory to Lender, certifying the Borrower is
Solvent as of the Closing Date and after giving effect to the initial
transactions contemplated hereunder.

3.24         Indenture
Designation.  The Obligations
hereunder are “Designated Secured Indebtedness” under the Indenture. The
execution and delivery of this Agreement is expressly conditioned upon the
subordination of the Securities (as defined in the Indenture) to the
indefeasible payment in full of the Obligations.

4.             FINANCIAL MATTERS; REPORTS

4.1           Reports
and Notices.  From the Closing Date
until the Termination Date, Borrower shall deliver to Lender:

(a)           within
five (5) days following the end of each Fiscal Month, or such other time as
Lender may request, an accounts receivable aging and accounts payable aging
(and including information indicating the amounts owing to owners and lessors
of leased premises, warehouses, processors and other third parties from time to
time in possession of any Collateral);

(b)           within
fifteen (15) days following the end of each Fiscal Month, an aged trial balance
by Account Debtor (as requested by Lender) and as soon as available but in no
event later than fifteen (15) days following the end of each Fiscal Month, a
reconciliation of the aged trial balance (as the case may be) to the Borrower’s
general ledger and from the general ledger to the Financial Statements for such
Fiscal Month accompanied by supporting detail and documentation as Lender may
request;

(c)           within
fifteen (15) days following the end of each Fiscal Month, an Accounts Payable
Analysis in the Form of Exhibit D (together with an accounts
payable aging) and an Accounts Receivable Roll Forward Analysis in the Form of Exhibit
E, each certified as true and correct by the Chief Financial Officer of
Borrower or such other officer as is acceptable to Lender;

(d)           within
thirty (30) days following the end of each Fiscal Month, the Financial
Statements for such Fiscal Month, which shall provide comparisons to budget and
actual results for the corresponding period during the prior Fiscal Year, both
on a monthly and year-to-date basis, and accompanied by a certification in the
form of Exhibit J by the Chief Executive Officer or Chief Financial
Officer of Borrower that such Financial Statements are complete and correct,
that there was no Default (or specifying those Defaults of which he or she was
aware), and showing in reasonable detail the calculations used in determining
compliance with the financial covenants hereunder;

(e)           as
frequently as Lender may request and in any event no later than fifteen (15) days
following the end of each Fiscal Month, a Borrowing Base Certificate in the
form of Exhibit C as of the last day of the previous Fiscal Month
detailing ineligible Accounts for adjustment to the 

 13
 

Borrowing Base, certified as true and correct
by the Chief Financial Officer of Borrower or such other officer as is
acceptable to Lender;

(f)            within forty-five
(45) days following the end of each Fiscal Quarter, the Financial Statements
for such Fiscal Quarter, which shall provide comparisons to budget and actual
results for the corresponding period during the prior Fiscal Year, both on a
quarterly and year-to-date basis, and accompanied by a certification in the
form of Exhibit J by the Chief Executive Officer or Chief Financial
Officer of Borrower that such Financial Statements are complete and correct,
that there was no Default (or specifying those Defaults of which he or she was
aware), and showing in reasonable detail the calculations used in determining
compliance with the financial covenants hereunder;

(g)           within one hundred
and five (105) days following the close of each Fiscal Year, the Financial
Statements for such Fiscal Year certified without qualification by an
independent certified accounting firm acceptable to Lender, which shall provide
comparisons to the prior Fiscal Year, and shall be accompanied by any
management letter that may be issued and accompanied by a certification in the
form of Exhibit J by the Chief Executive Officer or Chief Financial
Officer of Borrower that such Financial Statements are complete and correct,
that there was no Default (or specifying those Defaults of which he or she was
aware), and showing in reasonable detail the calculations used in determining
compliance with the financial covenants hereunder;

(h)           within thirty (30)
days following the end of each Fiscal Year, an annual operating plan for
Borrower, approved by the Board of Directors of Borrower, for the following
year, which will include a statement of all of the material assumptions on
which such plan is based, will include monthly balance sheets and a monthly
budget for the following year and will integrate sales, gross profits,
operating expenses, operating profit, cash flow projections and Borrowing
Availability projections all prepared on the same basis and in similar detail
as that on which operating results are reported (and in the case of cash flow
projections, representing management’s good faith estimates of future financial
performance based on historical performance), and including plans for
personnel, Capital Expenditures and facilities;

(i)            not less than
thirty (30) days prior to the close of each Fiscal Year, the Projections, which
will be prepared by Borrower in good faith, with care and diligence, and using
assumptions that are reasonable under the circumstances at the time such
Projections are delivered to Lender and disclosed therein when delivered;

(j)            within forty-five
(45) days following the end of each Fiscal Quarter, the Financial Statements
for such Fiscal Quarter for Parent, which shall provide comparisons to actual
results for the corresponding period during the prior Fiscal Year, both on a
quarterly and year-to-date basis, and accompanied by a certification in the
form of Exhibit J by the Chief Executive Officer or Chief Financial
Officer of Parent that such Financial Statements are complete and correct;

(k)           within one hundred
and five (105) days following the close of each Fiscal Year for Parent, the
Financial Statements for such Fiscal Year certified without qualification by an
independent certified accounting firm acceptable to Lender, which shall provide
comparisons to actual results for the prior Fiscal Year, and shall be
accompanied by any management letter that may 

 14
 

be issued and accompanied by a certification in the form of Exhibit
J by the Chief Executive Officer or Chief Financial Officer of Parent that
such Financial Statements are complete and correct; and

(l)            all the reports and
other information as Lender may reasonably request from time to time.

4.2           Financial
Covenants.  Borrower shall not breach
any of the financial covenants set forth in Schedule G.  For purposes of Section 7.1, a breach of a
financial covenant set forth in Schedule G shall be deemed to have
occurred as of any date of determination by Lender or as of the last day of any
specified measurement period, regardless of when the Financial Statements
reflecting such breach are delivered to Lender.

4.3           Other
Reports and Information.  Borrower
shall advise Lender promptly, in reasonable detail, of: (a) any Lien, other
than Permitted Encumbrances, attaching to or asserted against any of the
Collateral or any occurrence causing a material loss or decline in value of any
Collateral and the estimated (or actual, if available) amount of such loss or
decline; (b) any material change in the composition of the Collateral; and (c)
the occurrence of any Default or other event that has had or could reasonably
be expected to have a Material Adverse Effect. 
Borrower shall, upon request of Lender, furnish to Lender such other
reports and information in connection with the affairs, business, financial
condition, operations, prospects or management of Borrower or the Collateral as
Lender may request, all in reasonable detail.

5.             NEGATIVE COVENANTS

Borrower covenants and agrees that,
without Lender’s prior written consent, from the Closing Date until the
Termination Date, Borrower shall not, directly or indirectly, by operation of
law or otherwise:

(a)           form
any Subsidiary or merge with, consolidate with, acquire all or substantially
all of the assets or Stock of, or otherwise combine with or make any investment
in or, except as provided in Section 5(c) below, loan or advance to, any
Person;

(b)           cancel
any debt owing to it or create, incur, assume or permit to exist any
Indebtedness, except: (i) the Obligations, (ii) Indebtedness existing as of the
Closing Date set forth in Disclosure Schedule (5(b)), (iii) deferred
taxes, (iv) by endorsement of Instruments or items of payment for deposit to
the general account of Borrower, (v) for Guaranteed Indebtedness incurred for
the benefit of Borrower if the primary obligation is permitted by this
Agreement; and (vi) additional Indebtedness (including Purchase Money
Indebtedness) incurred after the Closing Date in an aggregate outstanding
amount not exceeding $500,000;

(c)           enter
into any lending, borrowing or other commercial transaction with any of its
employees, directors or Affiliates (including upstreaming and downstreaming of
cash and intercompany advances and payments by Borrower that are not otherwise permitted
hereunder) other than loans or advances to employees in the ordinary course of
business in an aggregate outstanding amount not exceeding $100,000;

 15
 

(d)           make
any changes in any of its business objectives, purposes, or operations that
could reasonably be expected to adversely affect repayment of the Obligations
or could reasonably be expected to have a Material Adverse Effect or engage in
any business other than that presently engaged in or proposed to be engaged in
the Projections delivered to Lender on the Closing Date or amend its charter or
by-laws or other organizational documents;

(e)           create or permit any
Lien on any of its properties or assets, except for Permitted Encumbrances;

(f)            sell, transfer,
issue, convey, assign or otherwise dispose of any of its assets or properties,
including its Accounts or any shares of its Stock or engage in any
sale-leaseback, synthetic lease or similar transaction (provided, that the
foregoing shall not prohibit the sale of Inventory or obsolete or unnecessary Equipment
in the ordinary course of its business);

(g)           change (i) its name
as it appears in official filings in the state of its incorporation or
organization, (ii) its chief executive office, corporate offices, warehouses or
other Collateral locations, or location of its records concerning the
Collateral, (iii) the type of legal entity that it is, (iv) its organization
identification number, if any, issued by its state of incorporation or
organization, or (v) its state of incorporation or organization, or acquire,
lease or use any real estate after the Closing Date without such Person, in
each instance, giving thirty (30) days prior written notice thereof to Lender
and taking all actions deemed necessary or appropriate by Lender to
continuously protect and perfect Lender’s Liens upon the Collateral;

(h)           establish any
depository or other bank account of any kind with any financial institution
(other than the accounts set forth in Attachment 1 to Schedule D)
without Lender’s prior written consent;

(i)            make or permit any
Restricted Payment except for (i) management, consulting or other fees for
management or similar services of Parent to Borrower for legal, accounting,
insurance (including premiums for such insurance), marketing, payroll and
similar types of services paid for by Parent to or on behalf of Borrower and
(ii) in the event the Borrower files a consolidated income tax return with
Parent, Borrower may make distributions to Parent to permit Parent to pay
federal and state income taxes then due and owing, franchise taxes and other
similar licensing expenses incurred in the ordinary course of business
provided, that the amount of such distribution shall not be greater, nor the
receipt by the Borrower of tax benefits less, than they would have been had the
Borrower not filed a consolidated return with Parent;

(j)            (i) knowingly
conduct any business or engage in making or receiving any contribution of
funds, goods or services to or for the benefit of any Person described in
Section 3.20 above, (ii) knowingly deal in, or otherwise engage in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order or any other Anti-Terrorism Law, (iii) knowingly engage
in or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in any Anti-Terrorism Law (and Borrower shall deliver to the Lender
any certification or other evidence requested from time to time by Lender in
its reasonable discretion, confirming Borrower’s compliance with this Section),
or (iv) cause or permit any of the funds of Borrower that are used to repay the
Loans to be 

 16
 

derived from any unlawful activity with the
result that the making of the Loans would be in violation of law; or

(k)           knowingly cause or
permit (i) any of the funds or properties of Borrower that are used to repay
the Loans to constitute property of, or be beneficially owned directly or
indirectly by, any Person subject to sanctions or trade restrictions under
United States law (“Embargoed Person” or “Embargoed Persons”) that is
identified on (A) the “List of Specially Designated Nationals and Blocked
Persons” (the “SDN List”) maintained by OFAC and/or on any other similar list (“Other
List”) maintained by OFAC pursuant to any authorizing statute including, but
not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§
1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any
Executive Order or regulation promulgated thereunder, with the result that the
investment in the Borrower (whether directly or indirectly) is prohibited by
law, or the Loans made by the Lender would be in violation of law, or (B) the
Executive Order, any related enabling legislation or any other similar
Executive Orders, or (ii) any Embargoed Person to have any direct or indirect
interest, of any nature whatsoever in the Borrower, with the result that the
investment in the Borrower (whether directly or indirectly) is prohibited by
law or the Loans are in violation of law.

6.             SECURITY INTEREST

6.1           Grant
of Security Interest.  (a)  As collateral security for the prompt and
complete payment and performance of the Obligations, Borrower hereby grants to
the Lender a security interest in and Lien upon all of its property and assets,
whether real or personal, tangible or intangible, and whether now owned or
hereafter acquired, or in which it now has or at any time in the future may
acquire any right, title, or interest, including all of the following property
in which it now has or at any time in the future may acquire any right, title
or interest: all Accounts; all Deposit Accounts, all other bank accounts and
all funds on deposit therein; all money, cash and cash equivalents; all
Investment Property; all stock;  all
Goods (including Inventory, Equipment and Fixtures); all Chattel Paper,
Documents and Instruments; all Books and Records; all General Intangibles
(including all Intellectual Property, contract rights, choses in action,
Payment Intangibles and Software); all Letter-of-Credit Rights; all Supporting
Obligations; and to the extent not otherwise included, all Proceeds, tort
claims, insurance claims and other rights to payment not otherwise included in
the foregoing and products of all and any of the foregoing and all accessions
to, substitutions and replacements for, and rents and profits of, each of the
foregoing, but excluding in all events Hazardous Waste (all of the foregoing,
together with any other collateral pledged to the Lender pursuant to any other
Loan Document, collectively, the “Collateral”).

(b)           Borrower and Lender
agree that this Agreement creates, and is intended to create, valid and
continuing Liens upon the Collateral in favor of Lender.  Borrower executing this Agreement represents,
warrants and promises to Lender that: (i) Borrower has rights in and the power
to transfer each item of the Collateral upon which it purports to grant a Lien
pursuant to the Loan Documents, free and clear of any and all Liens or claims
of others, other than Permitted Encumbrances; (ii) the security interests
granted pursuant to this Agreement, upon filing of Uniform Commercial Code
financing statements in the jurisdictions listed on Disclosure Schedule
(6.1) will constitute valid perfected security interests in all of the
Collateral (to the extent such Collateral may be perfected by filing of a
financing statement) in favor of the Lender as security for the prompt and 

 17
 

complete payment and performance of the Obligations, enforceable in
accordance with the terms hereof against any and all creditors of and
purchasers from Borrower (other than purchasers of Inventory in the ordinary
course of business) and such security interests are prior to all other Liens on
the Collateral in existence on the date hereof except for Permitted
Encumbrances that have priority by operation of law; and (iii) no effective
security agreement, mortgage, deed of trust, financing statement, equivalent
security or Lien instrument or continuation statement covering all or any part
of the Collateral is or will be on file or of record in any public office,
except those relating to Permitted Encumbrances.  Borrower promises to defend the right, title
and interest of Lender in and to the Collateral against the claims and demands
of all Persons whomsoever, and each shall take such actions, including (A) all
actions necessary to grant Lender “control” of any Investment Property, Deposit
Accounts, Letter-of-Credit Rights or electronic Chattel Paper owned by
Borrower, with any agreements establishing control to be in form and substance
satisfactory to Lender, (B) the prompt delivery of all original Instruments,
Chattel Paper, negotiable Documents and certificated Stock owned by Borrower
(in each case, accompanied by stock powers, allonges or other instruments of
transfer executed in blank, (C) notification of Lender’s interest in Collateral
at Lender’s request, and (D) the institution of litigation against third
parties as shall be prudent in order to protect and preserve Borrower’s and Lender’s
respective and several interests in the Collateral.  Borrower shall mark its Books and Records
pertaining to the Collateral to evidence the Loan Documents and the Liens
granted under the Loan Documents.  If
Borrower retains possession of any Chattel Paper or Instrument with Lender’s
consent, such Chattel Paper and Instruments shall be marked with the following
legend:  “This writing and the
obligations evidenced or secured hereby are subject to the security interest of
New Stream Commercial Finance, LLC.” 
Borrower shall promptly, and in any event within two (2) Business Days
after the same is acquired by it, notify Lender of any commercial tort claims
(as defined in the Code) acquired by it and unless otherwise consented by
Lender, Borrower shall enter into a supplement to this Loan Agreement granting
to Lender a Lien in such commercial tort claim.

6.2           Lender’s Rights. (a)  Lender may, (i) at any time in Lender’s own
name or in the name of Borrower, communicate with Account Debtors, parties to
Contracts, and obligors in respect of Instruments, Chattel Paper or other
Collateral to verify to Lender’s satisfaction, the existence, amount and terms
of, and any other matter relating to, Accounts, Payment Intangibles,
Instruments, Chattel Paper or other Collateral, and (ii) at any time after a
Default has occurred and is continuing and without prior notice to Borrower,
notify Account Debtors and other Persons obligated on any Collateral that
Lender has a security interest therein and that payments shall be made directly
to Lender.  Upon the request of Lender,
Borrower shall so notify such Account Debtors, parties to Contracts, and
obligors in respect of Instruments, Chattel Paper or other Collateral.  Borrower hereby constitutes Lender or Lender’s
designee as Borrower’s attorney with power to endorse Borrower’s name upon any
notes, acceptance drafts, money orders or other evidences of payment or
Collateral.

(b)           Borrower shall
remain liable under each Contract, Instrument and License to observe and
perform all the conditions and obligations to be observed and performed by it
thereunder, and Lender shall have no obligation or liability whatsoever to any
Person under any Contract, Instrument or License (between Borrower and any
Person other than Lender) by reason of or arising out of the execution,
delivery or performance of this Agreement, and Lender shall not be required or
obligated in any manner (i) to perform or fulfill any of the obligations of
Borrower, (ii) to make any payment or inquiry, or (iii) to take any action of
any kind to collect, compromise or enforce any performance 

 18
 

or the payment of any amounts which may have been assigned to it or to
which it may be entitled at any time or times under or pursuant to any
Contract, Instrument or License.

(c)           Borrower shall, with
respect to each owned, leased, or controlled property, during normal business
hours and upon reasonable advance notice (unless a Default shall have occurred
and be continuing, in which event no notice shall be required and Lender shall
have access at any and all times): (i) provide access to such property to
Lender and any of its officers, employees and agents, as frequently as Lender
determines to be appropriate; (ii) permit Lender and any of its officers,
employees and agents to inspect, audit and make extracts and copies (or take
originals if reasonably necessary) from all of Borrower’s Books and Records;
and (iii) permit Lender to inspect, review, evaluate and make physical
verifications and appraisals of the Inventory and other Collateral in any
manner and through any medium that Lender considers advisable, and Borrower
agrees to render to Lender, at Borrower’s cost and expense, such clerical and
other assistance as may be reasonably requested with regard thereto.

(d)           After the occurrence
and during the continuance of a Event of Default, Borrower, at its own expense,
shall cause the certified public accountant then engaged by Borrower to prepare
and deliver to Lender at any time and from time to time, promptly upon Lender’s
request, the following reports: (i) a reconciliation of all Accounts; (ii) an
aging of all Accounts; (iii) trial balances; and (iv) test verifications of
such Accounts as Lender may request. 
Borrower, at its own expense, shall cause its certified independent
public accountants to deliver to Lender the results of any physical
verifications of all or any portion of the Inventory made or observed by such
accountants when and if such verification is conducted.  Lender shall be permitted to observe and
consult with Borrower’s accountants in the performance of these tasks.

6.3           Lender’s Appointment as Attorney-in-fact. 
On the Closing Date, Borrower shall execute and deliver a Power of
Attorney in the form attached as Exhibit I.  The power of attorney granted pursuant to the
Power of Attorney and all powers granted under any Loan Document are powers
coupled with an interest and shall be irrevocable until the Termination
Date.  The powers conferred on Lender
under the Power of Attorney are solely to protect Lender’s interests in the
Collateral and shall not impose any duty upon it to exercise any such
powers.  Lender agrees not to exercise
any power or authority granted under the Power of Attorney unless an Event of
Default has occurred and is continuing. 
Borrower also hereby (i) authorizes Lender to file any financing
statements, continuation statements or amendments thereto that (A) indicate the
Collateral (1) as all assets of the Borrower (or any portion of Borrower’s
assets) or words of similar effect, regardless of whether any particular asset
comprised in the Collateral falls within the scope of Article 9 of the Code of
such jurisdiction, or (2) as being of an equal or lesser scope or with greater
detail, and (B) contain any other information required by Part 5 of Article 9 of
the Code for the sufficiency or filing office acceptance of any financing
statement, continuation statement or amendment and (ii) ratifies its
authorization for Lender to have filed any initial financial statements, or
amendments thereto if filed prior to the date hereof.  Borrower acknowledges that it is not
authorized to file any financing statement or amendment or termination
statement with respect to any financing statement without the prior written
consent of Lender and agrees that it will not do so without the prior written
consent of Lender, subject to Borrower’s rights under Section 9-509(d)(2) of
the Code.

 19
 

6.4           Grant
of License to Use Intellectual Property Collateral.  Borrower hereby grants to Lender an
irrevocable, non-exclusive license (exercisable upon the occurrence and during
the continuance of an Event of Default without payment of royalty or other
compensation to Borrower) to use, transfer, license or sublicense any
Intellectual Property now owned, licensed to, or hereafter acquired by Borrower,
and wherever the same may be located, and including in such license access to
all media in which any of the licensed items may be recorded or stored and to
all computer software and programs used for the compilation or printout
thereof, and represents, promises and agrees that any such license or
sublicense is not and will not be in conflict with the contractual or
commercial rights of any third Person; provided, that such license will
terminate on the Termination Date.

7.             EVENTS OF DEFAULT: RIGHTS AND REMEDIES

7.1           Events
of Default.  The occurrence of any
one or more of the following events (regardless of the reason therefor) shall
constitute an “Event of Default” hereunder which shall be deemed to be
continuing until waived in writing by Lender in accordance with Section 9.3:

(a)           Borrower shall fail
to make any payment in respect of any Obligations when due and payable or
declared due and payable (and such failure shall continue for a period of five
(5) Business Days with respect to interest and fees); or

(b)           Borrower shall fail
or neglect to perform, keep or observe any of the covenants, promises,
agreements, requirements, conditions or other terms or provisions contained in
this Agreement or any of the other Loan Documents; or

(c)           an event of default shall
occur under any Contractual Obligation of the Borrower (other than this
Agreement and the other Loan Documents), and such event of default (i) involves
the failure to make any payment (whether or not such payment is blocked
pursuant to the terms of an intercreditor agreement or otherwise), whether of
principal, interest or otherwise, and whether due by scheduled maturity,
required prepayment, acceleration, demand or otherwise, in respect of any
Indebtedness (other than the Obligations) of such Person in an aggregate amount
exceeding the Minimum Actionable Amount, or (ii) causes (or permits any holder
of such Indebtedness or a trustee to cause) such Indebtedness, or a portion
thereof, in an aggregate amount exceeding the Minimum Actionable Amount to become
due prior to its stated maturity or prior to its regularly scheduled date of
payment; or

(d)           any representation
or warranty in this Agreement or any other Loan Document, or in any written
statement pursuant hereto or thereto, or in any report, financial statement or
certificate made or delivered to Lender by Borrower shall be untrue or
incorrect in any material respect as of the date when made or deemed made; or

(e)           there shall be
commenced against the Borrower any Litigation seeking issuance of a warrant of
attachment, execution, distraint or similar process against all or any
substantial part of its assets that results in the entry of an order for any
such relief that remains unstayed or undismissed for thirty (30) consecutive
days; or Borrower shall have concealed, removed or permitted to be concealed or
removed, any part of its property with intent to hinder, delay or defraud any
of its 

 20
 

creditors or made or suffered a transfer of any of its property or the
incurring of an obligation that may be fraudulent under any bankruptcy,
fraudulent transfer or other similar law; or

(f)            a case or
proceeding shall have been commenced involuntarily against Borrower in a court
having competent jurisdiction seeking a decree or order: (i) under the United
States Bankruptcy Code or any other applicable Federal, state or foreign
bankruptcy or other similar law, and seeking either (A) the appointment of a
custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar
official) for such Person or of any substantial part of its properties, or (B)
the reorganization or winding up or liquidation of the affairs of any such
Person, and such case or proceeding shall remain undismissed or unstayed for
sixty (60) consecutive days or such court shall enter a decree or order
granting the relief sought in such case or proceeding; or (ii) invalidating or
denying any Person’s right, power, or competence to enter into or perform any
of its obligations under any Loan Document or invalidating or denying the
validity or enforceability of this Agreement or any other Loan Document or any
action taken hereunder or thereunder; or

(g)           Borrower shall (i)
commence any case, proceeding or other action under any existing or future law
of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, conservatorship or relief of debtors, seeking to have an order
for relief entered with respect to it or seeking appointment of a custodian,
receiver, liquidator, assignee, trustee or sequestrator (or similar official)
for it or any substantial part of its properties, (ii) make a general
assignment for the benefit of creditors, (iii) consent to or take any action in
furtherance of, or, indicating its consent to, approval of, or acquiescence in,
any of the acts set forth in paragraphs (e) or (f) of this Section 7.1 or
clauses (i) and (ii) of this paragraph (g), or (iv) shall admit in writing its
inability to, or shall be generally unable to, pay its debts as such debts
become due; or

(h)           a final judgment or
judgments for the payment of money in excess of the Minimum Actionable Amount
in the aggregate shall be rendered against Borrower, unless the same shall be
(i) fully covered by insurance, or (ii) vacated, stayed, bonded, paid or
discharged within a period of fifteen (15) days from the date of such judgment;
or

(i)            any provision of
any Loan Document shall for any reason cease to be valid, binding and
enforceable in accordance with its terms, or any Lien granted, or intended by
the Loan Documents to be granted, to Lender shall cease to be a valid and
perfected Lien having the first priority (or a lesser priority if expressly
permitted in the Loan Documents) in any of the Collateral (or Borrower shall so
assert any of the foregoing); or

(j)            a Change of Control
shall have occurred with respect to the Borrower; or

(k)           if Carrol Castille
is not engaged in the day to day business operations of the Borrower consistent
with his responsibilities as an officer of the Borrower as of the date hereof;
or

(l)            the occurrence of
an Event of Default under any agreement between Lender and Borrower’s
Affiliates, Crochet & Borel Services, Inc. and Ayin Tower Management
Services, Inc., or under any other agreement between Lender and any Affiliate
of Parent; or

 

 21

(m)          an ERISA Event shall
have occurred that, in the opinion of the Lender, when taken together with all
other ERISA Events that have occurred and are then continuing, could reasonably
be expected to result in liability of Borrower in an aggregate amount exceeding
the Minimum Actionable Amount, or

(n)           the occurrence of
any Regulatory Event.

7.2           Remedies.  (a)  If
any Default shall have occurred and be continuing, then Lender may terminate or
suspend its obligation to make further Revolving Credit Advances.  In addition, if any Event of Default shall
have occurred and be continuing, Lender may, without notice, take any one or
more of the following actions: (i) declare all or any portion of the
Obligations to be forthwith due and payable, whereupon such Obligations shall
become and be due and payable; or (ii) exercise any rights and remedies
provided to Lender under the Loan Documents or at law or equity, including all
remedies provided under the Code; provided, that upon the occurrence of any
Event of Default specified in Sections 7.1(e), (f) or (g), the Obligations
shall become immediately due and payable (and any obligation of Lender to make
further Loans, if not previously terminated, shall immediately be terminated)
without declaration, notice or demand by Lender.

(b)           Without limiting the
generality of the foregoing, Borrower expressly agrees that upon the occurrence
of any Event of Default, Lender may collect, receive, assemble, process,
appropriate and realize upon the Collateral, or any part thereof, and may
forthwith sell, lease, assign, give an option or options to purchase or
otherwise dispose of and deliver said Collateral (or contract to do so), or any
part thereof, in one or more parcels at public or private sale or sales, at any
exchange at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk.  Lender shall have the right upon any such
public sale, to the extent permitted by law, to purchase for the benefit of
Lender the whole or any part of said Collateral so sold, free of any right of
equity of redemption, which right Borrower hereby releases.  Such sales may be adjourned, or continued
from time to time with or without notice. 
Lender shall have the right to conduct such sales on Borrower’s premises
or elsewhere and shall have the right to use Borrower’s premises without rent
or other charge for such sales or other action with respect to the Collateral
for such time as Lender deems necessary or advisable.

(c)           Upon the occurrence
and during the continuance of an Event of Default and at Lender’s request,
Borrower agrees, to assemble the Collateral and make it available to Lender at
places that Lender shall reasonably select, whether at its premises or
elsewhere.  Until Lender is able to effect
a sale, lease, or other disposition of the Collateral, Lender shall have the
right to complete, assemble, use or operate the Collateral or any part thereof,
to the extent that Lender deems appropriate, for the purpose of preserving such
Collateral or its value or for any other purpose.  Lender shall have no obligation to Borrower
to maintain or preserve the rights of Borrower as against third parties with
respect to any Collateral while such Collateral is in the possession of
Lender.  Lender may, if it so elects,
seek the appointment of a receiver or keeper to take possession of any
Collateral and to enforce any of Lender’s remedies with respect thereto without
prior notice or hearing.  To the maximum
extent permitted by applicable law, Borrower waives all claims, damages, and
demands against Lender, its Affiliates, agents, and the officers and employees
of any of them arising out of the repossession, retention or sale of any
Collateral except such as are determined in a final judgment by a court of
competent jurisdiction to have arisen solely out of the gross negligence 

 22
 

or willful misconduct of such Person. 
Borrower agrees that ten (10) days’ prior notice by Lender to Borrower
of the time and place of any public sale or of the time after which a private sale
may take place is reasonable notification of such matters.  Borrower shall remain liable for any
deficiency if the proceeds of any sale or disposition of the Collateral are
insufficient to pay all amounts to which Lender is entitled.

(d)           Lender’s rights and
remedies under this Agreement shall be cumulative and nonexclusive of any other
rights and remedies that Lender may have under any Loan Document or at law or
in equity.  Recourse to the Collateral
shall not be required.  All provisions of
this Agreement are intended to be subject to all applicable mandatory
provisions of law that may be controlling and to be limited, to the extent
necessary, so that they do not render this Agreement invalid or unenforceable,
in whole or in part.

7.3           Waivers
by Borrower.  Except as otherwise
provided for in this Agreement and to the fullest extent permitted by
applicable law, Borrower waives: (a) presentment, demand and protest, and
notice of presentment, dishonor, intent to accelerate, acceleration, protest,
default, nonpayment, maturity, release, compromise, settlement, extension or
renewal of any or all Loan Documents, the Notes or any other notes, commercial
paper, Accounts, Contracts, Documents, Instruments, Chattel Paper and
guaranties at any time held by Lender on which Borrower may in any way be
liable, and hereby ratifies and confirms whatever Lender may do in this regard;
(b) all rights to notice and a hearing prior to Lender’s taking possession or
control of, or to Lender’s replevy, attachment or levy upon, any Collateral or
any bond or security that might be required by any court prior to allowing
Lender to exercise any of its remedies; and (c) the benefit of all valuation,
appraisal and exemption laws.  Borrower
acknowledges that it has been advised by counsel of its choices and decisions
with respect to this Agreement, the other Loan Documents and the transactions
evidenced hereby and thereby.

7.4           Proceeds.  The Proceeds of any sale, disposition or
other realization upon any Collateral shall be applied by Lender upon receipt
to the Obligations in such order as Lender may deem advisable in its sole
discretion, and after the indefeasible payment and satisfaction in full in cash
of all of the Obligations, and after the payment by Lender of any other amount
required by any provision of law, including Sections 9-608(a)(1) and
9-615(a)(3) of the Code (but only after Lender has received what Lender
considers reasonable proof of a subordinate party’s security interest), the
surplus, if any, shall be paid to Borrower or its representatives or to
whomsoever may be lawfully entitled to receive the same, or as a court of
competent jurisdiction may direct.

8.             SUCCESSORS AND ASSIGNS

Each Loan Document shall be binding
on and shall inure to the benefit of Borrower, Lender, and their respective
successors and assigns, except as otherwise provided herein or therein.  Borrower may not assign, transfer,
hypothecate, delegate or otherwise convey its rights, benefits, obligations or
duties under any Loan Document without the prior express written consent of
Lender.  Any such purported conveyance by
Borrower without the prior express written consent of Lender shall be
void.  There shall be no third party beneficiaries
of any of the terms and provisions of any of the Loan Documents.  Lender reserves the right at any time to
create and sell participations in the Loans and 

 23
 

the Loan Documents and to sell,
transfer or assign any or all of its rights in the Loans and under the Loan
Documents.

9.             MISCELLANEOUS

9.1           No
Oral Agreement; Complete Agreement; Modification of Agreement.  THIS WRITTEN AGREEMENT AND THE
OTHER LOAN DOCUMENTS REFERENCED HEREIN OR CONTEMPLATED HEREBY REPRESENT THE
FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES
HERETO.  THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.  This
Agreement and the other Loan Documents constitute the complete agreement
between the parties with respect to the subject matter hereof and thereof,
supersede all prior agreements, commitments, understandings or inducements
(oral or written, expressed or implied). 
No Loan Document may be modified, altered or amended except by a written
agreement signed by Lender and Borrower. 
Borrower shall have all duties and obligations under this Agreement and
such other Loan Documents from the date of its execution and delivery,
regardless of whether the initial Loan has been funded at that time.

9.2           Expenses.  Borrower agrees to pay or reimburse Lender
for all costs and expenses (including the fees and expenses of all counsel,
advisors, consultants (including environmental and management consultants) and
auditors retained in connection therewith), incurred in connection with: (a)
the preparation, negotiation, execution, delivery, performance and enforcement
of the Loan Documents and the preservation of any rights thereunder; (b)
collection including deficiency collections; (c) the forwarding to Borrower or
any other Person on behalf of Borrower by Lender of the proceeds of any Loan
(including a wire transfer fee of $25 per wire transfer); (d) any amendment,
waiver or other modification or waiver of, or consent with respect to any Loan
Document or advice in connection with the administration of the Loans or the rights
thereunder; (e) any litigation, dispute, suit, proceeding or action (whether
instituted by or between any combination of Lender, Borrower or any other
Person), and an appeal or review thereof, in any way relating to the
Collateral, any Loan Document, or any action taken or any other agreements to
be executed or delivered in connection therewith, whether as a party, witness
or otherwise; and (f) any effort to verify, protect, evaluate, assess,
appraise, collect, sell, liquidate or otherwise dispose of the Collateral.

9.3           No
Waiver.  Neither Lender’s failure, at
any time, to require strict performance by Borrower of any provision of any
Loan Document, nor Lender’s failure to exercise, nor any delay in exercising,
any right, power or privilege hereunder, shall operate as a waiver thereof or
waive, affect or diminish any right of Lender thereafter to demand strict
compliance and performance therewith.  No
single or partial exercise of any right, power or privilege hereunder shall
preclude any other or future exercise thereof or the exercise of any other
right, power or privilege.  Any
suspension or waiver of a Default or other provision under the Loan Documents
shall not suspend, waive or affect any other Default or other provision under
any Loan Document, and shall not be construed as a bar to any right or remedy
that Lender would otherwise have had on any future occasion.  None of the undertakings, indemnities,
agreements, warranties, covenants and representations of Borrower to Lender
contained in any Loan Document and no Default by Borrower under any Loan
Document shall be deemed to have been suspended or waived by Lender, unless
such waiver or suspension is by an instrument in 

 24
 

writing signed by an officer or other
authorized employee of Lender and directed to Borrower specifying such
suspension or waiver (and then such waiver shall be effective only to the
extent therein expressly set forth), and Lender shall not, by any act (other
than execution of a formal written waiver), delay, omission or otherwise, be
deemed to have waived any of its rights or remedies hereunder.

9.4           Severability;
Section Titles.  Wherever possible,
each provision of the Loan Documents shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of any Loan
Document shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of such
Loan Document.  Except as otherwise
expressly provided for in the Loan Documents, no termination or cancellation
(regardless of cause or procedure) of any financing arrangement under the Loan
Documents shall in any way affect or impair the Obligations, duties, covenants,
representations and warranties, indemnities, and liabilities of Borrower or the
rights of Lender relating to any unpaid Obligation, (due or not due,
liquidated, contingent or unliquidated), or any transaction or event occurring
prior to such termination, or any transaction or event, the performance of
which is not required until after the Commitment Termination Date, all of which
shall not terminate or expire, but rather shall survive such termination or
cancellation and shall continue in full force and effect until the Termination
Date; provided, that all indemnity obligations of the Borrower under the Loan
Documents shall survive the Termination Date. 
The Section titles contained in any Loan Document are and shall be
without substantive meaning or content of any kind whatsoever and are not a
part of the agreement between the parties thereto.

9.5           Authorized
Signature.  Until Lender shall be
notified in writing by Borrower to the contrary, the signature upon any
document or instrument delivered pursuant hereto and believed by Lender or any
of Lender’s officers, agents, or employees to be that of an officer of Borrower
shall bind Borrower and be deemed to be the act of Borrower affixed pursuant to
and in accordance with resolutions duly adopted by Borrower’s Board of
Directors, and Lender shall be entitled to assume the authority of each
signature and authority of the person whose signature it is or appears to be
unless the person acting in reliance thereon shall have actual knowledge to the
contrary.

9.6           Notices.  Except as otherwise provided herein, whenever
any notice, demand, request or other communication shall or may be given to or
served upon any party by any other party, or whenever any party desires to give
or serve upon any other party any communication with respect to this Agreement,
each such communication shall be in writing and shall be deemed to have been
validly served, given or delivered (a) upon the earlier of actual receipt and
three (3) days after deposit in the United States Mail, registered or certified
mail, return receipt requested, with proper postage prepaid, (b) upon
transmission, when sent by telecopy or other similar facsimile transmission
(with such telecopy or facsimile promptly confirmed by delivery of a copy by personal
delivery or United States Mail as otherwise provided in this Section 9.6), (c)
one (1) Business Day after deposit with a reputable overnight courier with
all charges prepaid or (d) when hand-delivered, all of which shall be addressed
to the party to be notified and sent to the address or facsimile number
indicated in Schedule B or to such other address (or facsimile number)
as may be substituted by notice given as herein provided.  Failure or delay in delivering copies of any
such communication to any Person 

 25
 

(other than Borrower or Lender)
designated in Schedule B to receive copies shall in no way adversely
affect the effectiveness of such notice, demand, request or other
communication.

9.7           Counterparts.  Any Loan Document may be authenticated in any
number of separate counterparts by any one or more of the parties thereto, and
all of said counterparts taken together shall constitute one and the same
instrument.  Any Loan Document may be
authenticated by manual signature, facsimile or, if approved in writing by
Lender, electronic means, all of which shall be equally valid.

9.8           Time
of the Essence.  Time is of the
essence for performance of the Obligations under the Loan Documents.

9.9           GOVERNING
LAW.  THE LOAN DOCUMENTS AND THE
OBLIGATIONS ARISING UNDER THE LOAN DOCUMENTS SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CONNECTICUT
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE
PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

9.10         SUBMISSION
TO JURISDICTION; WAIVER OF JURY TRIAL. 
(A)  BORROWER AND LENDER HEREBY
CONSENT AND AGREE THAT THE STATE OR FEDERAL COURTS LOCATED IN CONNECTICUT SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES
BETWEEN BORROWER AND LENDER PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED, THAT LENDER AND BORROWER ACKNOWLEDGE
THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED
OUTSIDE OF CONNECTICUT; AND FURTHER PROVIDED, THAT NOTHING IN THIS AGREEMENT
SHALL BE DEEMED OR OPERATE TO PRECLUDE LENDER FROM BRINGING SUIT OR TAKING
OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO
REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO
ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF LENDER.  BORROWER AND LENDER EXPRESSLY SUBMIT AND
CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY
SUCH COURT, AND BORROWER AND LENDER HEREBY WAIVE ANY OBJECTION THAT IT MAY HAVE
BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON
CONVENIENS.  BORROWER AND LENDER HEREBY
WAIVE PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN
ANY SUCH ACTION OR SUIT AND AGREE THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND
OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO BORROWER
OR LENDER AT THE ADDRESS SET FORTH IN SCHEDULE B OF THIS AGREEMENT AND
THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF BORROWER’S
OR LENDER’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S.
MAILS, PROPER POSTAGE PREPAID.

 26
 

(B)           THE PARTIES HERETO
WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO
RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN
LENDER, AND BORROWER ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO
THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THE LOAN DOCUMENTS
OR THE TRANSACTIONS RELATED THERETO.

9.11         USA
Patriot Act Notice.  The Lender
hereby notifies the Borrower that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)),
it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow the Lender to identify the Borrower in
accordance therewith.

9.12         Press
Releases.  Neither Borrower nor any
of its Affiliates will in the future issue any press release or other public
disclosure using the name of New Stream Commercial Finance, LLC or its
affiliates or referring to this Agreement or the other Loan Documents without
at least two (2) Business Days’ prior notice to Lender and without the prior
written consent of Lender unless (and only to the extent that) Borrower or
Affiliate is required to do so under law and then, in any event, Borrower or
Affiliate will consult with Lender before issuing such press release or other
public disclosure.

9.13         Reinstatement.  This Agreement shall continue to be
effective, or be reinstated, as the case may be, if at any time payment of all
or any part of the Obligations is rescinded or must otherwise be returned or
restored by Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of Borrower, or otherwise, all as though such payments had not
been made.

9.14         Maximum
Legal Rate.  It is expressly
stipulated and agreed to be the intent of Borrower and Lender at all times to
comply with applicable state law or applicable United States federal law (to
the extent that it permits Lender to contract for, charge, take, reserve, or
receive a greater amount of interest than under state law) and that this
provision shall control every other covenant and agreement in this Agreement,
the Revolving Note and the other Loan Documents.  If applicable state or federal law should at
any time by judicially interpreted so as to render usurious any amount called
for under this Revolving Credit Note or under any of the other Loan Documents,
or contracted for, charged, taken , reserved, or received with respect to the
Loans, or if Lender’s exercise of the option to accelerate the Stated Expiry Date,
or if any prepayment by Borrower results in Borrower having paid any interest
in excess of that permitted by applicable law, then it is Lender’s express
intent that all excess amounts theretofore collected by Lender shall be
credited on the principal balance of this Revolving Credit Note and all other
indebtedness secured by this Agreement, and the provisions of this Agreement,
the Revolving Credit Note and the other Loan Documents shall immediately be
deemed reformed and the amounts thereafter collectible hereunder and thereunder
reduced, without the necessity of the execution of any new documents, so as to
comply with the applicable law, but so as to permit the recovery of the fullest
amount otherwise called for hereunder or thereunder.  All sums paid or agreed to be paid to Lender
for the use or forbearance of the Loans shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full stated term of the Loans.

[SIGNATURE
PAGE FOLLOWS]

 27

IN WITNESS WHEREOF, this Loan and Security Agreement
has been duly executed as of the date first written above.

	
   

  	
  COMPLETE TOWER SOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carroll Castille

  
	
   

  	
  Name:

  	
  Carroll Castille

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
  NEW STREAM COMMERCIAL FINANCE, LLC

  
	
   

  	
  BY ITS MANAGER

  
	
   

  	
  NEW STREAM CAPITAL, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bart Gutekunst

  
	
   

  	
  Name:

  	
  Bart Gutekunst

  
	
   

  	
  Title:

  	
  Managing Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald Porter

  
	
   

  	
  Name:

  	
  Donald Porter

  
	
   

  	
  Title:

  	
  Managing Partner

  
				

 

SCHEDULE
A - DEFINITIONS

Capitalized terms used in this
Agreement and the other Loan Documents shall have (unless otherwise provided
elsewhere in this Agreement or in the other Loan Documents) the following
respective meanings:

“Account Debtor”
shall mean any Person who is or may become obligated with respect to, or on
account of, an Account, Chattel Paper or General Intangible (including a
Payment Intangible).

“Accounts” means
all “accounts,” as such term is defined in the
Code, now owned or hereafter acquired by any Person, including: (a) all
accounts receivable, other receivables, book debts and other forms of
obligations (other than forms of obligations evidenced by Chattel Paper or
Instruments) (including any such obligations which may be characterized as an
account or contract right under the Code); (b) all of such Person’s rights
in, to and under all purchase orders or receipts for goods or services;
(c) all of such Person’s rights to any goods represented by any of the
foregoing (including unpaid sellers’ rights of rescission, replevin,
reclamation and stoppage in transit and rights to returned, reclaimed or
repossessed goods); (d) all rights to payment due to such Person for Goods
or other property sold, leased, licensed, assigned or otherwise disposed of,
for a policy of insurance issued or to be issued, for a secondary obligation
incurred or to be incurred or to be incurred, for energy provided or to be
provided, for the use or hire of a vessel under a charter or other contract,
arising out of the use of a credit card or charge card, or for services
rendered or to be rendered by such Person or in connection with any other
transaction (whether or not yet earned by performance on the part of such
Person), and (e) all health care insurance receivables; and (vi) all
collateral security of any kind given by any Account Debtor or any other Person
with respect to any of the foregoing.

“Accounts Payable Analysis”
means a certificate in the form of Exhibit D.

“Accounts Receivable Roll
Forward Analysis” means a certificate in the form of Exhibit E.

“Affiliate”
means, with respect to any Person: (a) each other Person that, directly or
indirectly, owns or controls, whether beneficially, or as a trustee, guardian
or other fiduciary, ten percent (10%) or more of the Stock having ordinary
voting power for the election of directors of such Person; (b) each other
Person that controls, is controlled by or is under common control with such
Person or any Affiliate of such Person; or (c) each of such Person’s
officers, directors, joint venturers and partners.  For the purpose of this definition, “control”
of a Person shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of its management or policies, whether through
the ownership of voting securities, by contract or otherwise.

“Agreement”
means this Agreement including all appendices, exhibits or schedules attached
or otherwise identified thereto, restatements and modifications and supplements
thereto, and any appendices, exhibits or schedules to any of the foregoing,
each as effect at the time such reference becomes operative; provided, that
except as specifically set forth in this Agreement, any reference to the
Disclosure Schedules to this Agreement shall be deemed a reference to the
Disclosure Schedules as in effect on the Closing Date or in a written amendment
thereto executed by Borrower and Lender.

 A-1
 

“Availability Block”
means $1,000,000.

“Books and Records”
means all books, records, board minutes, contracts, licenses, insurance policies,
environmental audits, business plans, files, computer files, computer discs and
other data and software storage and media devices, accounting books and
records, financial statements (actual and pro forma), filings with Governmental
Authorities and any and all records and instruments relating to the Collateral
or Borrower’s business.

“Borrower” means
the Person identified as such in the preamble of this Agreement.

“Borrowing Availability”
means, at any time, the lesser of (a) the Maximum Amount minus the Availability
Block or (b) the Borrowing Base, in each case less reserves established by
Lender from time to time.

“Borrowing Base”
means at any time an amount equal to the sum of (a) 85% of the value of
Borrower’s Eligible Accounts which are equal to or less than 90 days from its
invoice date , and (b) 50% of the value of Borrower’s Eligible Accounts which
are greater than 90 days but not more than 180 days from invoice date; provided
that, in each case, Lender shall reduce the foregoing percentage by two
percentage points for each percentage point that the dilution of Borrower’s
Accounts (calculated by Lender as the average dilution over the most recent
rolling twelve month period) exceeds 5%. 
For the purposes of calculating the Borrowing Base, the value of
Eligible Accounts shall be determined by Lender in its discretion.

“Borrowing Base Certificate”
means a certificate in the form of Exhibit C.

“Business Day”
means any day that is not a Saturday, a Sunday or a day on which banks are
required or permitted to be closed in the State of Connecticut.

“Capital Expenditures”
means all payments or accruals (including Capital Lease Obligations) for any
fixed assets or improvements or for replacements, substitutions or additions
thereto, that have a useful life of more than one year and that are required to
be capitalized under GAAP.

“Capital Lease”
means, with respect to any Person, any lease of any property (whether real,
personal or mixed) by such Person as lessee that, in accordance with GAAP,
either would be required to be classified and accounted for as a capital lease
on a balance sheet of such Person or otherwise would be disclosed as such in a
note to such balance sheet, other than, in the case of Borrower, any such lease
under which Borrower is the lessor.

“Capital Lease Obligation”
means, with respect to any Capital Lease, the amount of the obligation of the
lessee thereunder that, in accordance with GAAP, would appear on a balance
sheet of such lessee in respect of such Capital Lease or otherwise be disclosed
in a note to such balance sheet.

“Cash Collateral Account”
has the meaning assigned to it in Schedule C.

 A-2
 

“Change of Control”
means, with respect to any Person on or after the Closing Date, that any change
in the composition of such Person’s stockholders as of the Closing Date shall
occur which would result in any stockholder or group acquiring 49.9% or more of
any class of Stock of such Person, or that any Person (or group of Persons
acting in concert) shall otherwise acquire, directly or indirectly (including
through Affiliates), the power to elect a majority of the Board of Directors of
such Person or otherwise direct the management or affairs of such Person by
obtaining proxies, entering into voting agreements or trusts, acquiring
securities or otherwise.

“Charges” means
all Federal, state, county, city, municipal, local, foreign or other
governmental taxes (including taxes owed to PBGC at the time due and payable),
levies, customs or other duties, assessments, charges, liens, and all
additional charges, interest, penalties, expenses, claims or encumbrances upon
or relating to (a) the Collateral, (b) the Obligations, (c) the employees,
payroll, income or gross receipts of Borrower, (d) the ownership or use of any
assets by Borrower, or (e) any other aspect of Borrower’s business.

“Chattel Paper”
means all “chattel paper,” as such term is defined in the Code, including
electronic chattel paper, now owned or hereafter acquired by any Person.

“Closing Date”
means the Business Day on which the conditions precedent set forth in Section 2
have been satisfied or specifically waived in writing by Lender, and the
initial Loan has been made.

“Closing Fee”
has the meaning assigned to it in Schedule E.

“Code” means the
Uniform Commercial Code as the same may, from time to time, be in effect in the
State of Connecticut; provided, that in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of, or
remedies with respect to, Lender’s Lien on any Collateral is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than the State of
Connecticut, the term “Code” shall mean the Uniform Commercial Code as in
effect in such other jurisdiction for purposes of the provisions of this
Agreement relating to such attachment, perfection, priority or remedies and for
purposes of definitions related to such provisions; provided further, that to
the extent that the Code is used to define any term herein or in any Loan
Document and such term is defined differently in different Articles or
Divisions of the Code, the definition of such term contained in Article or
Division 9 shall govern.

“Collateral” has
the meaning assigned to it in Section 6.1.

“Collection Account”
means that certain account of Lender, account number 1050454734 in the name of
Lender at Citibank, F.S.B. in Ridgefield, Connecticut, ABA No. 221172610, or
such other account as may be specified in writing by Lender as the “Collection
Account”.

“Commitment Letter” means the
Commitment Letter, dated as of February 16, 2007, between Borrower and Lender.

“Commitment Termination
Date” means the earliest of (a) the Stated Expiry Date, (b) the date
Lender’s obligation to advance funds is terminated pursuant to Section 7.2, and
(c) the date of

 A-3
 

indefeasible prepayment
in full by Borrower of the Obligations in accordance with the provisions of
Section 1.2(c).

“Communications Act”
shall mean the Communications Act of 1934, as the same now exists or may from
time to time hereafter be amended (and including as amended pursuant to the
Telecommunications Act of 1996), modified, recodified or supplemented, together
with all rules, regulations and interpretations thereunder or related thereto.

“Communications Laws”
shall mean the Communications Act and any similar or successor Federal statute
or statutes and any applicable State or foreign law governing the provision of
telecommunications services, as the same now exist or may from time to time
hereafter be amended, modified, recodified or supplemented, together with all
rules and regulations thereunder or related thereto.

“Communications Regulatory
Authority” shall mean the FCC, any PUC and any future federal, state
or local communications regulatory commission, agency, department board or
authority.

“Contracts” means
all the contracts, undertakings, or agreements (other than rights evidenced by
Chattel Paper, Documents or Instruments) in or under which any Person may now
or hereafter have any right, title or interest, including any agreement
relating to the terms of payment or the terms of performance of any Account.

“Contractual Obligation”
means as to any Person, any provision of any security issued by such Person or
of any agreement, instrument, or other undertaking to which such Person is a
party or by which it or any of its property is bound.

“Copyright License”
means rights under any written agreement now owned or hereafter acquired by any
Person granting the right to use any Copyright or Copyright registration.

“Copyrights”
shall mean all of the following now owned or hereafter adopted or acquired by
any Person: (a) all copyrights in any original work of authorship fixed in
any tangible medium of expression, now known or later developed, all
registrations and applications for registration of any such copyrights in the
United States or any other country, including registrations, recordings and
applications, and supplemental registrations, recordings, and applications in
the United States Copyright Office; and (b) all Proceeds of the foregoing,
including license royalties and proceeds of infringement suits, the right to
sue for past, present and future infringements, all rights corresponding
thereto throughout the world and all renewals and extensions thereof.

“Default” means
any Event of Default or any event that, with the passage of time or notice or
both, would, unless cured or waived, become an Event of Default.

“Default Rate”
has the meaning assigned to it in Section 1.5(c).

“Deposit Accounts”
means all “deposit accounts” as such term is defined in the Code, now or
hereafter held in the name of any Person.

 A-4
 

“Documents”
means all “documents,” as such term is defined in the Code, now owned or
hereafter acquired by any Person, wherever located, including all bills of
lading, dock warrants, dock receipts, warehouse receipts, and other documents
of title, whether negotiable or non-negotiable.

“EBITDA” means,
for any period, the Net Income (Loss) of Borrower and its Subsidiaries on a
consolidated basis for such period, plus interest expense, income tax expense,
amortization expense, depreciation expense and extraordinary losses and minus
extraordinary gains, in each case, of Borrower and its Subsidiaries on a
consolidated basis for such period determined in accordance with GAAP to the
extent included in the determination of such Net Income (Loss).

“Eligible Accounts”
means as at the date of determination, all Accounts of the Borrower except any
Account:

(a)           that
does not arise from the sale of goods or the performance of services by
Borrower in the ordinary course of Borrower’s business;

(b)           upon
which (i) Borrower’s right to receive payment is not absolute or is contingent
upon the fulfillment of any condition whatsoever or (ii) Borrower is not able
to bring suit or otherwise enforce its remedies against the Account Debtor
through judicial process;

(c)           against
which any defense, counterclaim or setoff, whether well-founded or otherwise,
is asserted or which is a “contra” Account;

(d)           that
is not a true and correct statement of a bona fide indebtedness incurred in the
amount of the Account for merchandise sold or services performed and accepted
by the Account Debtor obligated upon such Account;

(e)           with
respect to which  an invoice, acceptable
to Lender in form and substance, has not been sent;

(f)            that
is not owned by Borrower or is subject to any right, claim, or interest of
another Person, other than the Lien in favor of Lender;

(g)           that
arises from a sale to or performance of services for an employee, Affiliate,
Subsidiary or Stockholder of Borrower or any other Credit Party, or an entity
which has common officers or directors with Borrower or any other Credit Party;

(h)           that
is the obligation of an Account Debtor that is the Federal (or local)
government or a political subdivision thereof, unless Lender has agreed to the
contrary in writing and Borrower has complied with the Federal Assignment of
Claims Act of 1940 (or the state equivalent thereof, if any) with respect to
such obligation;

(i)            that
is the obligation of an Account Debtor located in a foreign country unless such
Account is supported by a letter of credit in which Lender has a first priority
perfected security interest by control (as contemplated by the Code) or credit
insurance acceptable to Lender (and naming Lender as loss payee);

 A-5
 

(j)            that
is the obligation of an Account Debtor to whom Borrower is or may become liable
for goods sold or services rendered by the Account Debtor to Borrower, to the
extent of Borrower’s liability to such Account Debtor;

(k)           that
arises with respect to goods which are delivered on a cash-on-delivery basis or
placed on consignment, guaranteed sale or other terms by reason of which the
payment by the Account Debtor may be conditional;

(l)            that
is an obligation for which the total unpaid Accounts of the Account Debtor
exceed 20%  of the aggregate of all Accounts, to
the extent of such excess;

(m)          that
is not paid within 60 days from its due date or 180 days from its invoice date
(provided that with respect to all Accounts which are more than 90 days from
invoice date, such Accounts are verified by Lender) or that are Accounts of an
Account Debtor if 50% or more of the Accounts owing from such Account Debtor
remain unpaid within such time periods;

(n)           is
an obligation of an Account Debtor that has suspended business, made a general
assignment for the benefit of creditors, is unable to pay its debts as they
become due or as to which a petition has been filed (voluntary or involuntary)
under any law relating to bankruptcy, insolvency, reorganization or relief of
debtors;

(o)           that
arises from any bill-and-hold or other sale of goods which remain in Borrower’s
possession or under Borrower’s control;

(p)           as
to which Lender’s interest therein is not a first priority perfected security
interest;

(q)           to
the extent that such Account exceeds any credit limit established by Lender in
Lender’s good faith credit judgment;

(r)            as
to which any of Borrower’s representations or warranties pertaining to Accounts
are untrue;

(s)           that
represents interest payments, late or finance charges, or service charges owing
to Borrower; or

(t)            that
is not otherwise acceptable in the good faith discretion of Lender, provided,
that Lender shall have the right to create and adjust eligibility standards and
related reserves from time to time in its good faith credit judgment.

“Environmental Laws”
means all Federal, state and local laws, statutes, ordinances and regulations,
now or hereafter in effect, and in each case as amended or supplemented from
time to time, and any applicable judicial or administrative interpretation thereof
relating to the regulation and protection of human health, safety, the
environment and natural resources (including ambient air, surface water,
groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic
species and vegetation).

 A-6
 

“Environmental Liabilities”
means all liabilities, obligations, responsibilities, remedial actions, removal
costs, losses, damages of whatever nature, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts and consultants
and costs of investigation and feasibility studies), fines, penalties,
sanctions and interest incurred as a result of any claim, suit, action or
demand of whatever nature by any Person and which relate to any health or
safety condition regulated under any Environmental Law, environmental permits
or in connection with any Release, threatened Release, or the presence of a
Hazardous Material.

“Equipment”
means all “equipment” as such term is defined in the Code, now owned or
hereafter acquired by any Person, wherever located, including any and all
machinery, apparatus, equipment, fittings, furniture, fixtures, cell towers,
communication equipment, motor vehicles and other tangible personal property
(other than Inventory) of every kind and description that may be now or
hereafter used in such Person’s operations or which are owned by such Person or
in which such Person may have an interest, and all parts, accessories,
attachments and accessions thereto and substitutions and replacements therefor.

“ERISA” means
the Employee Retirement Income Security Act of 1974 (or any successor
legislation thereto), as amended from time to time, and any regulations
promulgated thereunder.

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with
Borrower, is treated as a single employer under Section 414(b), (c), (m) or (o)
of the IRC, or, solely for the purposes of Section 302 of ERISA and Section 412
of the IRC, is treated as a single employer under Section 414 of the IRC.

“ERISA Event” shall
mean (a) any “reportable event”, as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for
which the 30-day notice period is waived); (b) the existence with respect to
any Plan of an “accumulated funding deficiency” (as defined in Section 412 of
the IRC or Section 302 of ERISA), whether or not waived; (c) the filing
pursuant to Section 412(b) of the IRC or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by Borrower or any ERISA Affiliate of any liability
under Title IV of ERISA with respect to the termination of any Plan; (e) the
receipt by Borrower or any ERISA Affiliate from the PBGC or a plan administrator
of any notice relating to an intention to terminate any Plan or to appoint a
trustee to administer any Plan; (f) the incurrence by Borrower or any ERISA
Affiliate of any liability with respect to any withdrawal or partial withdrawal
from any Plan or Multiemployer Plan; or (g) the receipt by Borrower or any
ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from
Borrower or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV
of ERISA.

“Event of Default”
has the meaning assigned to it in Section 7.1.

“FCC” shall mean
the Federal Communications Commission of the United States of America, and any
successor, in whole or in part, to its jurisdiction.

“Fees” means the
fees due to Lender as set forth in Schedule E.

 A-7
 

“Financial Statements”
means the consolidated and consolidating income statement, balance sheet and
statement of cash flows of Borrower and its Subsidiaries, internally prepared
for each Fiscal Month, and audited for each Fiscal Year, prepared in accordance
with GAAP.

“Fiscal Month”
means any of the monthly accounting periods of Borrower.

“Fiscal Quarter”
means any of the quarterly accounting periods of Borrower.

“Fiscal Year”
means the 12 month period of Borrower ending April 30 of each year.  Subsequent changes of the fiscal year of
Borrower shall not change the term “Fiscal Year” unless Lender shall consent in
writing to such change.

“Fixtures” means
all “fixtures” as such term is defined in the Code, now owned or hereafter
acquired by any Person.

“Funded Debt”
shall mean, with respect to any Person, all Indebtedness for borrowed money
evidenced by notes, bonds, debentures, or similar evidences of Indebtedness and
which by its terms matures more than one year from, or is directly or
indirectly renewable or extendible at such Person’s option under a revolving
credit or similar agreement obligating the lender or lenders to extend credit
over a period of more than one year from the date of creation thereof, and
specifically including Capital Lease Obligations, current maturities of
long-term debt, revolving credit and short-term debt extendible beyond one year
at the option of the debtor, and also including, in the case of Borrower, the
Obligations and, without duplication, Guaranteed Indebtedness consisting of
guaranties of Funded Debt of other Persons.

“GAAP” means
generally accepted accounting principles in the United States of America as in
effect from time to time, consistently applied.

“General Intangibles”
means all “general intangibles,” as such term is defined in the Code, now owned
or hereafter acquired by any Person, including all right, title and interest
that such Person may now or hereafter have in or under any Contract, all
Payment Intangibles, customer lists, Licenses, Intellectual Property, interests
in partnerships, joint ventures and other business associations, permits,
proprietary or confidential information, inventions (whether or not patented or
patentable), technical information, procedures, designs, knowledge, know-how,
software, data bases, data, skill, expertise, experience, processes, models,
drawings, materials, Books and Records, Goodwill (including the Goodwill
associated with any Intellectual Property), all rights and claims in or under
insurance policies (including insurance for fire, damage, loss, and casualty,
whether covering personal property, real property, tangible rights or
intangible rights, all liability, life, key-person, and business interruption
insurance, and all unearned premiums), uncertificated securities, choses in
action, deposit accounts, rights to receive tax refunds and other payments,
rights to receive dividends, distributions, cash, Instruments and other
property in respect of or in exchange for pledged Stock and Investment
Property, and rights of indemnification.

“Goods” means
all “goods,” as such term is defined in the Code, now owned or hereafter
acquired by any Person, wherever located, including embedded software to the
extent included in

 A-8
 

“goods” as defined in the
Code, manufactured homes, standing timber that is cut and removed for sale and
unborn young of animals.

“Goodwill” means
all goodwill, trade secrets, proprietary or confidential information, technical
information, procedures, formulae, quality control standards, designs,
operating and training manuals, customer lists, and distribution agreements now
owned or hereafter acquired by any Person.

“Governmental Authority”
shall mean any nation or government, any state, province, or other political
subdivision or department thereof, including, without limitation, any
Communications Regulatory Authority, any central bank (or similar monetary or
regulatory authority) thereof, and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

“Guaranteed Indebtedness”
means, as to any Person, any obligation of such Person guaranteeing any
indebtedness, lease, dividend, or other obligation (“primary obligations”) of
any other Person (the “primary obligor”) in any manner, including any
obligation or arrangement of such guaranteeing Person (whether or not
contingent): (a) to purchase or repurchase any such primary obligation;
(b) to advance or supply funds (i) for the purchase or payment of any such
primary obligation or (ii) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency or any
balance sheet condition of the primary obligor; (b) to purchase property,
securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment
of such primary obligation; or (d) to indemnify the owner of such primary
obligation against loss in respect thereof.

“Guarantor”
means each Person that executes a guaranty or a support, put or other similar
agreement in favor of Lender in connection with the transactions contemplated
by this Agreement.

“Guaranty” means
any agreement to perform all or any portion of the Obligations on behalf of
Borrower, in favor of, and in form and substance satisfactory to, Lender,
together with all amendments, modifications and supplements thereto, and shall
refer to such Guaranty as the same may be in effect at the time such reference
becomes operative.

“Hazardous Material”
means any substance, material or waste that is regulated by or forms the basis
of liability now or hereafter under, any Environmental Laws, including any
material or substance that is (a) defined as a “solid waste,” “hazardous waste,”
“hazardous material,” “hazardous substance,” “extremely hazardous waste,” “restricted
hazardous waste,” “pollutant,” “contaminant,” “hazardous constituent,” “special
waste,” “toxic substance” or other similar term or phrase under any
Environmental Laws, (b) petroleum or any fraction or by-product thereof,
asbestos, polychlorinated biphenyls (PCB’s), or any radioactive substance.

“Hazardous Waste”
has the meaning ascribed to such term in the Resource Conservation and Recovery
Act (42 U.S.C. §§ 6901 et. seq.).

“Indebtedness”
of any Person means:  (a) all
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services (including reimbursement and all

 A-9
 

other obligations with
respect to surety bonds, letters of credit and bankers’ acceptances, whether or
not matured, but not including obligations to trade creditors incurred in the
ordinary course of business and not paid in the ordinary course of Borrower’s
business consistent with past practices); (b) all obligations evidenced by
notes, bonds, debentures or similar instruments; (c) all indebtedness
created or arising under any conditional sale or other title retention
agreements with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such property); (d) all
Capital Lease Obligations; (e) all Guaranteed Indebtedness; (f) all
Indebtedness referred to in clauses (a), (b), (c), (d) or (e) above secured by
(or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien upon or in property (including
accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Indebtedness; (g) the
Obligations; and (h) all liabilities under Title IV of ERISA.

“Indemnified Liabilities”
and “Indemnified Person” have the respective
meanings assigned to them in Section 1.11.

“Indenture” means the Indenture,
dated as of February 16, 2007, between (i) Parent; (ii) the subsidiaries of the
Parent; and (iii) The Bank of New York Corporate Trust Company, N.A., a
national banking association, as trustee.

“Index Rate”
means, for any day, a floating rate equal to the higher of (a) the rate
publicly quoted from time to time by The Wall Street Journal
as the “prime rate” (or, if The Wall Street Journal ceases
quoting a prime rate, the highest per annum rate of interest published by the
Federal Reserve Board in Federal Reserve statistical release H.15 (519)
entitled “Selected Interest Rates” as the Bank prime loan rate or its
equivalent), and (b) the Federal Funds Rate plus 50 basis points per
annum.   Each change in any interest rate
provided for in the Agreement based upon the Index Rate shall take effect at
the time of such change in the Index Rate.

“Instruments”
means all “instruments,” as such term is defined in the Code, now owned or
hereafter acquired by any Person, wherever located, including all certificated
securities and all promissory notes and other evidences of indebtedness, other
than instruments that constitute, or are a part of a group of writings that
constitute, Chattel Paper.

“Intellectual Property”
means any and all Licenses, Patents, Copyrights, Trademarks, trade secrets and
customer lists.

“Interest Coverage Ratio” shall mean, with respect to any
Person for any period, the ratio of (i) EBITDA less Capital Expenditures
less Taxes paid in cash to (ii) Interest Expense.

“Interest Expense” shall mean, with respect to any Person for
any fiscal period, interest expense (whether cash or non-cash) of such Person
determined in accordance with GAAP for the releveant period ended on such date,
including, in any event, interest expense with respect to any Funded Debt of
such Person and interest expense for the relevant period that has been
capitalized on the balance sheet of such Person.

 A-10

“Inventory”
means all “inventory,” as such term is defined in the Code, now owned or
hereafter acquired by any Person, wherever located, including all inventory,
merchandise, goods and other personal property that are held by or on behalf of
such Person for sale or lease or are furnished or are to be furnished under a
contract of service or that constitute raw materials, work in process, finished
goods, returned goods or materials or supplies of any kind, nature or
description used or consumed or to be used or consumed in such Person’s
business or in the processing, production, packaging, promotion, delivery or
shipping of the same, including all supplies and embedded software.

“Investment Property”
means all “investment property,” as such term is defined in the Code, now owned
or hereafter acquired by any Person, wherever located.

“IRC” and “IRS” mean respectively, the Internal Revenue Code of 1986
and the Internal Revenue Service, and any successors thereto.

“Lease Expenses”
shall mean, with respect to any Person for any fiscal period, the aggregate
rental obligations of such Person determined in accordance with GAAP which are
payable in respect of such period under leases of real and/or personal property
(net of income from subleases thereof, but 
including taxes, insurance, utilities, maintenance and similar expenses
which the lessee is obligated to pay under the terms of such leases), whether
or not such obligations are reflected as liabilities or commitments on a
consolidated balance sheet of such Person or in the notes thereto, excluding,
however, any such obligations under Capital Leases.

“Leasehold Property”
means, with respect to any Person, such Person’s present and future leasehold
estate in any Real Property

“Lender” means
New Stream Commercial Finance, LLC and, if at any time Lender shall decide to
assign or syndicate all or any of the Obligations, such term shall include such
assignee or such other members of the syndicate.

“Letter-of-Credit Rights”
means “letter-of-credit rights” as such term is defined in the Code, now owned
or hereafter acquired by any Person, including rights to payment or performance
under a letter of credit, whether or not such Person, as beneficiary, has
demanded or is entitled to demand payment or performance.

“Leverage Ratio”
shall mean, as to any Person and its Subsidiaries, on a consolidated basis, the
ratio of (a) Indebtedness of such person as of the last day of such period to
(b) EBITDA of such Person during such period

“License” means
any Copyright License, Patent License, Trademark License or other license of
rights or interests now held or hereafter acquired by any Person.

“Lien” means any
mortgage, security deed or deed of trust, pledge, hypothecation, assignment,
deposit arrangement, lien, charge, claim, security interest, security title,
easement or encumbrance, or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including any lease
or title retention agreement, any financing lease 

 A-11
 

having substantially the
same economic effect as any of the foregoing, and the filing of, or agreement
to give, any financing statement perfecting a security interest under the Code
or comparable law of any jurisdiction).

“Litigation”
means any claim, lawsuit, litigation, investigation or proceeding of or before
any arbitrator or Governmental Authority.

“Loan Documents”
means this Agreement, the Financial Statements, each Guaranty, the Power of
Attorney, the Lock Box Account Agreements, and the other documents and
instruments listed in Schedule F, and all security agreements, mortgages
and all other documents, instruments, certificates, and notices at any time
delivered by any Person (other than Lender) in connection with any of the
foregoing.

“Loans” means
the Revolving Credit Loan.

“Lock Box Account”
and “Lock Box Account Agreement” have the
meanings assigned to such terms in Schedule D.

“Material Adverse Effect”
means a material adverse effect on (a) the business, assets, operations,
prospects or financial or other condition of Borrower or the industry within
which Borrower operates, (b) Borrower’s ability to pay or perform the
Obligations under the Loan Documents to which it is a party in accordance with
the terms thereof, (c) the Collateral or Lender’s Liens on the Collateral
or the priority of any such Lien, or (d) Lender’s rights and remedies
under this Agreement and the other Loan Documents.

“Maximum Amount”
means $10,000,000.

“Maximum Legal Rate”
shall mean the maximum lawful interest rate which may be contracted for, charged,
taken, received or reserved under this Agreement or the other Loan Documents by
Lender in accordance with applicable state or federal law (whichever provides
for the highest permitted rate), taking into account all items contracted for,
charged or received in connection with the Obligations evidenced hereby which
are treated as interest under the applicable state or federal law, as such rate
may change from time to time. The Maximum Legal Rate shall be calculated in a
manner that takes into account any and all fees, payments and other charges in
respect of the Loan Documents that constitute interest under applicable
law.  Each change in any interest rate
provided for herein based upon the Maximum Legal Rate resulting from a change
in the Maximum Legal Rate shall take effect without notice to the Borrower at
the time of such change in the Maximum Legal Rate.

“Minimum Actionable Amount”
means $250,000.

“Multiemployer Plan”
means a “multiemployer plan,” as defined in Section 4001(a) (3) of ERISA, to
which Borrower or any ERISA Affiliate is making, is obligated to make, has made
or been obligated to make, contributions on behalf of participants who are or
were employed by any of them.

 A-12
 

“Net Borrowing Availability”
means at any time the Borrowing Availability less the Revolving Credit Loan.

“Net Income (Loss)”
means with respect to any Person and for any period, the aggregate net income
(or loss) after taxes of such Person for such period, determined in accordance
with GAAP.

“Notes” means
the Revolving Credit Note.

“Notice of Revolving Credit
Advance” has the meaning assigned to it in Section 1.1(b).

“Obligations”
means all loans, advances, debts, expense reimbursement, fees, liabilities, and
obligations for the performance of covenants, tasks or duties or for payment of
monetary amounts (whether or not such performance is then required or
contingent, or amounts are liquidated or determinable) owing by Borrower to
Lender, of any kind or nature, present or future, whether or not evidenced by
any note, agreement or other instrument, whether arising under any of the Loan
Documents or under any other agreement between Borrower and Lender, and all
covenants and duties regarding such amounts. 
This term includes all principal, interest (including interest accruing
at the then applicable rate provided in this Agreement after the maturity of
the Loans and interest accruing at the then applicable rate provided in this
Agreement after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding, whether or not a claim
for post-filing or post-petition interest is allowed in such proceeding), Fees,
Charges, expenses, attorneys’ fees and any other sum chargeable to Borrower
under any of the Loan Documents, and all principal and interest due in respect
of the Loans and all obligations and liabilities of any Guarantor under any
Guaranty.

“Parent” shall
mean Charys Holding Company, Inc. and its permitted successors and assigns.

“Patent License”
means rights under any written agreement now owned or hereafter acquired by any
Person granting any right with respect to any invention on which a Patent is in
existence.

“Patents” means
all of the following in which any Person now holds or hereafter acquires any
interest: (a) all letters patent of the United States or any other
country, all registrations and recordings thereof, and all applications for
letters patent of the United States or any other country, including
registrations, recordings and applications in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
State or Territory thereof, or any other country; and (b) all reissues,
continuations, continuations-in-part or extensions thereof.

“Payment Intangibles”
means all “payment intangibles” as such term is defined in the Code, now owned
or hereafter acquired by any Person.

“PBGC” means the
Pension Benefit Guaranty Corporation or any successor thereto.

“Permitted Encumbrances”
means the following encumbrances: (a) Liens for taxes or assessments or other
governmental Charges or levies, either not yet due and payable or to the extent
that nonpayment thereof is permitted by the terms of Section 3.10; (b)
pledges or deposits securing obligations under worker’s compensation,
unemployment insurance, social security or public liability laws or similar
legislation; (c) pledges or deposits securing bids, tenders, contracts
(other than 

 A-13
 

contracts for the payment
of money) or leases to which Borrower is a party as lessee made in the ordinary
course of business; (d) deposits securing public or statutory obligations
of Borrower; (e) inchoate and unperfected workers’, mechanics’, or similar
liens arising in the ordinary course of business so long as such Liens attach
only to Equipment, fixtures or real estate; (f) carriers’, warehousemans’,
suppliers’, landlords’ or other similar statutory liens arising in the ordinary
course of business and securing indebtedness not yet due and payable;
(g) deposits of money securing, or in lieu of, surety, appeal or customs
bonds in proceedings to which Borrower is a party; (h) zoning restrictions,
easements, licenses, or other restrictions on the use of real property or other
minor irregularities in title (including leasehold title) thereto, so long as
the same do not materially impair the use, value, or marketability of such real
estate; (i) Purchase Money Liens securing Purchase Money Indebtedness (or
rent) to the extent permitted under Section 5(b)(vi); (j) Liens in
existence on the Closing Date as disclosed on Disclosure Schedule (5(e))
provided that no such Lien is spread to cover additional property after the
Closing Date and the amount of Indebtedness secured thereby is not increased.;
(k) Liens in favor of Lender securing the Obligations; and (l) other Liens
in an aggregate amount not to exceed $50,000 at any time outstanding.

“Person” or “person” means any individual, sole proprietorship,
partnership, limited liability partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability
company, institution, public benefit corporation, entity or government (whether
Federal, state, county, city, municipal or otherwise, including any
instrumentality, division, agency, body or department thereof), and shall
include such Person’s successors and assigns.

“Plan” means any
employee pension benefit plan (other than a Multiemployer Plan) subject to the
provisions of Title IV of ERISA or Section 412 of the IRC or Section 302 of
ERISA, and in respect of which Borrower or any ERISA Affiliate is (or, if such
plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

“Proceeds” means
“proceeds,” as such term is defined in the Code and, in any event, shall
include: (a) any and all proceeds of any insurance, indemnity, warranty or
guaranty payable to Borrower with respect to any Collateral; (b) any and
all payments (in any form whatsoever) made or due and payable to Borrower in
connection with any requisition, confiscation, condemnation, seizure or
forfeiture of any Collateral by any governmental body, authority, bureau or
agency (or any person acting under color of governmental authority);
(c) any claim of Borrower against third parties (i) for past, present
or future infringement of any Intellectual Property or (ii) for past,
present or future infringement or dilution of any Trademark or Trademark
License or for injury to the goodwill associated with any Trademark, Trademark
registration or Trademark licensed under any Trademark License; (d) any
recoveries by Borrower against third parties with respect to any litigation or
dispute concerning any Collateral, including claims arising out of the loss or
nonconformity of, interference with the use of, defects in, or infringement of
rights in, or damage to, Collateral; (e) all amounts collected on, or
distributed on account of, other Collateral, including dividends, interest,
distributions and Instruments with respect to Investment Property and pledged
Stock; and (f) any and all other amounts, rights to payment or other
property acquired upon the sale, lease, license, exchange or other disposition
of Collateral and all rights arising out of Collateral.

“Projections”
means as of any date the consolidated and consolidating balance sheet,
statements of income and cash flow for Borrower and its Subsidiaries (including
forecasted Capital 

 A-14
 

Expenditures and Net
Borrowing Availability) (a) by month for the next Fiscal Year, and (b) by
year for the following three Fiscal Years, in each case prepared in a manner
consistent with GAAP and accompanied by senior management’s discussion and
analysis of such plan.

“PUCs” shall
mean, collectively, the public utilities commissions or boards for any State or
any other jurisdiction in which Borrower operates its telecommunications
business or any successor agency, and any successor, in whole or in part, to
its functions or jurisdictions, sometimes being referred to herein individually
as a “PUC”.

“Purchase Money
Indebtedness” means (a) any Indebtedness incurred for the
payment of all or any part of the purchase price of any fixed asset,
(b) any Indebtedness incurred for the sole purpose of financing or
refinancing all or any part of the purchase price of any fixed asset, and
(c) any renewals, extensions or refinancings thereof (but not any
increases in the principal amounts thereof outstanding at that time).

“Purchase Money Lien”
means any Lien upon any fixed assets which secures the Purchase Money
Indebtedness related thereto but only if such Lien shall at all times be
confined solely to the asset the purchase price of which was financed or
refinanced through the incurrence of the Purchase Money Indebtedness secured by
such Lien and only if such Lien secures only such Purchase Money Indebtedness.

“Real Property”
means, with respect to any Person, such Person’s present and future right,
title and interest (including, without limitation, any leasehold estate) in:

(a)           any
plots, pieces or parcels of land;

(b)           any
improvements, buildings, structures and fixtures now or hereafter located or
erected thereon or attached thereto of every nature whatsoever (the rights and
interest described in clauses (a) and (b) being the “Premises”);

(c)           any
other interests in property constituting appurtenances to the Premises, or which
hereafter shall in any way belong, relate or be appurtenant thereto; and

(d)           all
other rights and privileges thereunto belonging or appertaining and all
extensions, additions, improvements, betterments, renewals, substitutions and
replacements to or of any of the rights and interests described in clause (c)
above.

“Regulatory Event”
shall mean any of the following events: (a) Lender becomes subject to
regulation as a “carrier”, a “telephone company”, a “common carrier”, a “public
utility” or otherwise under any applicable liability or common carrier law or
governmental regulation, Federal, State or local, solely as result of the
transactions contemplated by this Agreement and the other Financing Agreements,
or (b) Borrower becomes subject to a statute or regulation by any Governmental
Authority different from the statutes or regulations existing as of the date
hereof and that could have a Material Adverse Effect, or (c) the FCC, any PUC
or any other Communications Regulatory Authority issues an order or other
statement revoking, denying or refusing to renew, or recommending the
revocation, denial or non-renewal of, any material Permit (except for any such
order or statement that is being appealed or contested in good faith by
Borrower by appropriate 

 A-15
 

proceedings diligently
pursued and available to Borrower, so long as during such appeal or contest,
Borrower may continue to receive the benefit of, and operate pursuant to, such
Permit) except where the failure to have such a Permit does not or could not reasonably
be expected to result in a Material Adverse Effect.

“Release” means
as to any Person, any release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of
Hazardous Materials in the indoor or outdoor environment by such Person,
including the movement of Hazardous Materials through or in the air, soil,
surface water, ground water or property.

“Requirement of Law”
means as to any Person, the Certificate or Articles of Incorporation and By-Laws
or other organizational or governing documents of such Person, and any law,
treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case binding upon such Person or any of
its property or to which such Person or any of its property is subject.

“Restricted Payment”
means, after the Closing Date: (a) the declaration or payment of any
dividend or the incurrence of any liability to make any other payment or
distribution of cash or other property or assets on or in respect of Borrower’s
Stock; (b) any payment or distribution made in respect of any subordinated
Indebtedness of Borrower in violation of any subordination or other agreement
made in favor of Lender; (c) any payment on account of the purchase,
redemption, defeasance or other retirement of Borrower’s Stock or Indebtedness
or any other payment or distribution made in respect of any thereof, either
directly or indirectly; other than (i) that arising under this Agreement or
(ii) interest and principal, when due without acceleration or modification of
the amortization as in effect on the Closing Date, under Indebtedness (not
including subordinated Indebtedness, payments of which shall be permitted only
in accordance with the terms of the relevant subordination agreement made in
favor of Lender) described in Disclosure Schedule (5(b)) or otherwise
permitted under Section 5(b)(vi); or (iii) any payment, loan,
contribution, or other transfer of funds or other property to any Stockholder
of such Person which is not expressly and specifically permitted in this
Agreement; provided, that no payment to Lender shall constitute a Restricted
Payment.

“Revolving Credit Advance”
has the meaning assigned to it in Section 1.1(a).

“Revolving Credit Loan”
means at any time the sum of (a) the aggregate amount of Revolving Credit
Advances then outstanding, plus (b) the amount of accrued but unpaid
interest thereon, plus (c) the amount of accrued but unpaid costs, fees
and expenses payable hereunder.

“Revolving Credit Note”
means the promissory note of Borrower dated the Closing Date, substantially in
the form of Exhibit F.

“Revolving Credit Rate”
has the meaning assigned to it in Section 1.5(a).

“Software” means
all “software” as such term is defined in the Code, now owned or hereafter
acquired by any Person, including all computer programs and all supporting
information provided in connection with a transaction related to any program.

 A-16
 

“Solvent” means,
with respect to any Person on a particular date, that on such date (a) the fair
value of the property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person; (b) the present
fair salable value of the assets of such Person is not less than the amount
that will be required to pay the probable liability of such Person on its debts
as they become absolute and matured; (c) such Person does not intend to, and
does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay as such debts and liabilities mature; and (d) such Person is not
engaged in a business or transaction, and is not about to engage in a business
or transaction, for which such Person’s property would constitute an
unreasonably small capital.  The amount
of contingent liabilities (such as litigation, guaranties and pension plan
liabilities) at any time shall be computed as the amount that, in light of all
the facts and circumstances existing at the time, represents the amount that
can be reasonably be expected to become an actual or matured liability.

“Stated Expiry Date”
means May 31, 2007.

“Stock” means
all certificated and uncertificated shares, options, warrants, membership
interests, general or limited partnership interests, participation or other
equivalents (regardless of how designated) of or in a corporation, partnership,
limited liability company or equivalent entity whether voting or nonvoting,
including common stock, preferred stock, or any other “equity security” (as
such term is defined in Rule 3a11-1 of the General Rules and Regulations
promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934).

“Stockholder”
means each holder of Stock of Borrower.

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

“Supporting Obligations”
means all “supporting obligations” as such term is defined in the Code,
including letters of credit and guaranties issued in support of Accounts,
Chattel Paper, Documents, General Intangibles, Instruments, or Investment
Property.

“Tangible Net Worth”
means, with respect to any Person, at any date, the total assets (excluding any
assets attributable to any issuances by such Person of any Stock after the
Closing Date and excluding any intangible assets) minus the total liabilities,
in each case, of such Person at such date determined in accordance with GAAP.

 A-17
 

“Taxes” means
taxes, levies, imposts, deductions, Charges or withholdings, and all
liabilities with respect thereto, excluding taxes imposed on or measured by the
net income of Lender.

“Termination Date”
means the date on which all Obligations under this Agreement are indefeasibly
paid in full, in cash, and Borrower shall have no further right to borrow any
moneys or obtain other credit extensions or financial accommodations under this
Agreement.

“Trademark License”
means rights under any written agreement now owned or hereafter acquired by any
Person granting any right to use any Trademark or Trademark registration.

“Trademarks”
means all of the following now owned or hereafter adopted or acquired by any
Person: (a) all trademarks, trade names, corporate names, business names, trade
styles, service marks, logos, other source or business identifiers, prints and
labels on which any of the foregoing have appeared or appear, designs and
general intangibles of like nature (whether registered or unregistered) all
registrations and recordings thereof, and all applications in connection
therewith, including all registrations, recordings and applications in the
United States Patent and Trademark Office or in any similar office or agency of
the United States, any State or Territory thereof, or any other country or any
political subdivision thereof: (b) all reissues, extensions or renewals
thereof; and (c) all goodwill associated with or symbolized by any of the
foregoing.

“Transaction Summary”
means the Transaction Summary set forth in the Recitals to this Agreement.

“Withdrawal Liability”
means liability to a Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

Any accounting term used in this
Agreement or the other Loan Documents shall have, unless otherwise specifically
provided therein, the meaning customarily given such term in accordance with
GAAP, and all financial computations thereunder shall be computed, unless
otherwise specifically provided therein, in accordance with GAAP consistently
applied; provided, that all financial covenants and calculations in the Loan
Documents shall be made in accordance with GAAP as in effect on the Closing
Date unless Borrower and Lender shall otherwise specifically agree in
writing.  That certain items or
computations are explicitly modified by the phrase “in accordance with GAAP”
shall in no way be construed to limit the foregoing.  All other undefined terms contained in this
Agreement or the other Loan Documents shall, unless the context indicates
otherwise, have the meanings provided for by the Code.  The words “herein,” “hereof” and “hereunder”
or other words of similar import refer to this Agreement as a whole, including
the exhibits and schedules thereto, as the same may from time to time be
amended, modified or supplemented, and not to any particular section,
subsection or clause contained in this Agreement.

For purposes of this Agreement and
the other Loan Documents, the following additional rules of construction shall
apply, unless specifically indicated to the contrary: (a) wherever from
the context it appears appropriate, each term stated in either the singular or
plural shall include the singular and the plural; (b) the term “or” is not
exclusive; (c) the term “including” (or any form thereof) shall not be
limiting or exclusive; (d) all references to statutes and related
regulations shall include any 

 A-18
 

amendments of same and any successor
statutes and regulations; and (e) all references to any instruments or
agreements, including references to any of the Loan Documents, shall include
any and all modifications or amendments thereto and any and all extensions or
renewals thereof.

 

 A-19

SCHEDULE B

LENDER’S
AND BORROWER’S ADDRESS FOR NOTICES

	
  Lender’s Address

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  NEW STREAM COMMERCIAL FINANCE, LLC

  	
   

  	
   

  
	
   

  	
  Address:

  	
  38C Grove Street

  	
   

  	
   

  
	
   

  	
   

  	
  Ridgefield, Connecticut 06877

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Dennis Diczok

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
  (203) 431-0330

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  (203) 702-5377

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrower’s Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  COMPLETE TOWER SOURCES, INC.

  	
   

  	
   

  
	
   

  	
  Address:

  	
  715 Vatican Road

  	
   

  	
   

  
	
   

  	
   

  	
  Carencro, LA 70520

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Telephone:     (      )
        -        

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  (      )       -        

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  CHARYS HOLDING COMPANY, INC.

  	
   

  	
   

  
	
   

  	
  Address:

  	
  1117 Perimeter Center, Suite N 415

  	
   

  	
   

  
	
   

  	
   

  	
  Atlanta, Georgia 30338-5417

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Billy V. Ray, Jr.

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
  (678) 443-2300

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  (678) 443-2320

  	
   

  	
   

  

 

 B-1

 

SCHEDULE
C

[INTENTIONALLY
OMITTED]

 

 C-1

SCHEDULE
D - CASH MANAGEMENT

Borrower agrees to establish, and to
maintain, until the Termination Date, the cash management system described
below:

1.             Borrower:
(i) shall not (nor shall it permit any of its Subsidiaries to) open or maintain
any deposit, checking, operating or other bank account, or similar money
handling account, with any bank or other financial institution except for those
accounts identified in Attachment I hereto (to include a petty cash account not
to exceed $5,000 during any Fiscal Month, and a payroll account not to exceed
an amount equal to one regular payroll at any time); and (ii) shall close or
permit to be closed any of the accounts listed in Attachment I
hereto, in each case without Lender’s prior written consent, and then only after
Borrower has implemented agreements with such bank or financial institution and
Lender acceptable to Lender.

2.             Commencing
on the Closing Date and until the Termination Date, Borrower shall cause to be
deposited directly all cash, checks, notes, drafts or other similar items
relating to or constituting proceeds of or payments made in respect of any and
all Collateral into blocked accounts or lock box accounts in Borrower’s or
Lender’s name (collectively, the “Lock Box Accounts”) set forth in
paragraph 1 of Attachment I hereto.

3.             On
or before the Closing Date, each bank at which the Lock Box Accounts are held
shall have entered into tri-party lock box agreements (the “Lock Box Account
Agreements”) with Lender and Borrower, in form and substance acceptable to
Lender.  Each such Lock Box Account
Agreement shall provide, among other things, that (a) such bank executing
such agreement has no rights of setoff or recoupment or any other claim against
such Lock Box Account, other than for payment of its service fees and other
charges directly related to the administration of such account, and
(b) such bank agrees to sweep on a daily basis all amounts in the Lock Box
Account to the Collection Account.

4.             On
the Closing Date, (a) the lock box and blocked account arrangements shall
immediately become operative at the banks at which the Lock Box Accounts are
maintained, and (b) amounts outstanding under the Revolving Credit Loan
(for purposes of the Borrowing Availability) shall be reduced through daily
sweeps, by wire transfer, of the Lock Box Accounts into the Collection
Account.  Borrower acknowledges that it
shall have no right to gain access to any of the moneys in the Lock Box
Accounts until after the Termination Date.

5.             Borrower
may maintain, in its name, accounts (the “Disbursement Accounts”) at a
bank or banks acceptable to Lender into which Lender shall, from time to time,
deposit proceeds of Revolving Credit Advances made pursuant to Section 1.1
for use solely in accordance with the provisions of Section 1.3.  All of the Disbursement Accounts as of the
Closing Date are listed in paragraph 2 of Attachment I hereto.

6.             Upon
the request of Lender, Borrower shall forward to Lender, on a daily basis,
evidence of the deposit of all items of payment received by Borrower into the
Lock Box Accounts and copies of all such checks and other items, together with
a statement showing the application of those items 

 D-1
 

relating to payments on Accounts to
outstanding Accounts and a collection report with regard thereto in form and
substance satisfactory to Lender.

 D-2
 

ATTACHMENT
I TO SCHEDULE D

LIST
OF BANK ACCOUNTS

 

 D-3

SCHEDULE
E - FEES

1.             UNUSED LINE FEE:  For each day from the Closing Date, and
through and including the Termination Date, an amount equal to the Maximum
Amount less the Revolving Credit Loan for such day multiplied by one-half of
one (.50%) percent, the product of which is then divided by 360.  The Unused Line Fee for each month (except
for the month in which the Termination Date occurs) is payable on the first day
of each calendar month following the Closing Date; the final monthly
installment of the Unused Line Fee is payable on the Termination Date.  Notwithstanding the foregoing, any unpaid
Unused Line Fee is immediately due and payable on the Commitment Termination
Date.

2.             COMMITMENT FEE; CLOSING FEE: 
A non-refundable commitment fee of $100,000, less the amount of such
commitment fee previously received by Lender prior to the Closing Date, which
commitment fee shall be paid at closing. 
A non-refundable closing fee of $200,000, payable and fully earned at
closing (the “Closing Fee”).

3.             COLLATERAL MONITORING FEE: 
A fully earned and non-refundable collateral monitoring fee of $40,000
per year, which collateral monitoring fee for the first year of the Agreement
shall be fully earned as of the Closing Date and for each subsequent year of
the Agreement, on the first day of each such year.  The collateral monitoring fee shall be
payable in four (4) consecutive quarterly installments of $10,000 each.  For the first year of the Agreement, the
first installment shall be payable on the Closing Date and on the first day of
each calendar quarter thereafter, commencing July 1, 2007.  For each subsequent year thereafter, each
quarterly installment shall be paid on the first day of each calendar quarter
commencing April 1 of each year.

5.             AUDIT FEES:  Borrower
will reimburse Lender per person per day at the then prevailing rate (which
rate as of the Closing Date is $800), plus out of pocket expenses, for the
audit reviews, field examinations and collateral examinations conducted by
Lender.

6.             COMMISSIONS:  A
commission at a rate of .25% of the gross face amount of each Account of
Borrower deposited in the Lock Box Accounts or otherwise collected by Borrower
or Lender or their respective agents or designees after the Closing Date (the “Commissions”).  Commissions shall be earned on a daily basis
and shall be payable to Lender on the last day of each month; except that, any
earned and unpaid Commissions shall be payable on the Termination Date.

 

 E-1

SCHEDULE
F

SCHEDULE OF DOCUMENTS

The obligation of Lender to make the
initial Revolving Credit Advances and extend other credit is subject to
satisfaction of the condition precedent that Lender shall have received the
following, each, unless otherwise specified below or the context otherwise
requires, dated the Closing Date, in form and substance satisfactory to Lender
and its counsel:

PRINCIPAL LOAN DOCUMENTS

1.             Agreement.  The Loan and Security Agreement duly executed
by Lender, Borrower and Parent.

2.             Note(s).  Duly executed Note(s) to the order of Lender
evidencing the Loan(s).

3.             Borrowing
Base Certificate.  An original
Borrowing Base Certificate duly executed by a responsible officer of
Borrower(s).

4.             Notice
of Revolving Credit Advance.  An
original Notice of Revolving Credit Advance duly executed by a responsible
officer of Borrower(s).

COLLATERAL DOCUMENTS

1.             Acknowledgment
Copies of Financing Statements. 
Acknowledgment copies of proper Financing Statements (Form UCC-l) (the “Financing
Statements”) duly filed under the Code in all jurisdictions as may be necessary
or, in the opinion of Lender, desirable to perfect Lender’s Lien on the
Collateral.

2.             UCC
Searches.  Certified copies of UCC
Searches, or other evidence satisfactory to Lender, listing all effective
financing statements which name Borrower(s) (under present name, any previous
name or any trade or doing business name) as debtor and covering all
jurisdictions referred to in paragraph (1) immediately above, together with
copies of such other financing statements.

3.             Other
Recordings and Filings.  Evidence of
the completion of all other recordings and filings (including UCC-3 termination
statements and other Lien release documentation) as may be necessary or, in the
opinion of and at the request of Lender, desirable to perfect Lender’s Lien on
the Collateral and ensure such Collateral is free and clear of other Liens.

4.             Power
of Attorney.  Power of Attorney duly
executed by Borrower and Parent.

 F-1
 

THIRD
PARTY AGREEMENTS

1.             Cash
Management System.  Duly executed
Lock Box Account Agreements and, if required by Lender, pledged account
agreements in respect of the Disbursement Accounts as contemplated by Schedule
D.

2.             Guarantees.  Guarantees executed by each of Parent and
Ayin Tower Management Services, Inc.

3.             Landlord
and Mortgagee Consents. Unless otherwise agreed to in writing by Lender,
duly executed landlord and mortgagee waivers and consents from the landlords
and mortgagees of all of Borrower’s leased or owned locations where Collateral
is held, in each case, in form and substance satisfactory to Lender.

OTHER DOCUMENTS

1.             Secretary
Certificate.  A Secretary Certificate
in the form of Exhibit H to the Agreement duly completed and executed by
the Secretary of Borrower, together with all attachments thereto.

2.             Insurance
Policies.  Certified copies of
insurance policies described in Section 3.16, together with evidence showing
loss payable or additional insured clauses or endorsements in favor of Lender.

4.             Existing
Lease Agreements.  Copies of any
existing real property leases and equipment leases to which (each) Borrower is
a party and any other document or instrument evidencing or relating to existing
Indebtedness of Borrower(s), together with all certificates, opinions,
instruments, security documents and other documents relating thereto, all of
which shall be satisfactory in form and substance to Lender, certified by an
authorized officer of Borrower(s) as true, correct and complete copies thereof.

5.             Officer’s
Certificate.  Lender shall have received
an executed Officer’s Certificate, in form and substance satisfactory to
Lender, certifying the Borrower is Solvent as of the Closing Date and after
giving effect to the initial transactions contemplated hereunder.

6.             Leasehold
Mortgages.  Copies of any existing
real property leases and equipment leases to which Borrower is a party and any
other document or instrument evidencing or relating to existing Indebtedness of
Borrower, together with all certificates, opinions, instruments, security
documents, leasehold mortgages and other documents relating thereto, all of
which shall be satisfactory in form and substance to Lender, certified by an
authorized officer of Borrower as true, correct and complete copies thereof.

7.             Real
Property/Leasehold Property Documents. 
Copies of any existing title insurance policies and searches, surveys
and environmental reports for all Real Property and Leasehold Property.

8.             Opinions
of Counsel.  Original opinions of
counsel for Borrower and Guarantors which shall each be in form and substance
acceptable to Lender.  Such opinion
letters shall provide, among other 

 F-2
 

things, that the execution and
delivery of the Agreement and the Loan Documents, including the Parent
Guarantee, are permitted under the Indenture.

 

 F-3

SCHEDULE
G

FINANCIAL
COVENANTS

1.             Minimum
Interest Coverage Ratio.  Borrower shall have at the end of each
Fiscal Month, an Interest Coverage Ratio for the 12-month period then ended of
not less than 1.50:1.00.

2.             Net
Borrowing Availability.  Net Borrowing Availability shall be not less
than $500,000 at any time.

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