Document:

Loan Purchase and Sale Agreement

   
 LOAN PURCHASE AND SALE AGREEMENT
           THIS AGREEMENT (“Agreement”) is made this 4th day of November, 2002, by and between First Community Finance, Inc., hereinafter called “Seller,”
and American General Finance, Inc., hereinafter called “Buyer.”  As used herein, “Buyer” will also include any subsidiary or affiliate of American General Finance, Inc., to which Loans hereunder may be assigned.

                     WHEREAS, the Buyer has agreed to purchase Loans from Seller; and the Seller has
agreed to sell Loans to Buyer subject to the terms of this Agreement.
                      NOW, THEREFORE, Seller and Buyer agree as follows:

	 1.
 	 Definitions.
 
	  
 	  
 
	  
 	 Whenever used in this Agreement, the following words and phrases, shall have the following meanings:
 
	  
 	  
 
	  
 	 Agreement:  This Agreement together with all exhibits, schedules, addenda, and riders hereto, all as the same may be amended and supplemented from time to time in
accordance with the terms hereof.
 
	  
 	  
 
	  
 	 Closing Date:  The date on which Buyer purchases the Loans from Seller, November 6, 2002, or such other date as may be agreed upon in writing by the parties.

	  
 	  
 
	  
 	 Collateral: Any property listed in, and for which a security interest is granted by any Security Agreement.
 
	  
 	  
 
	  
 	 Cut Off Date:  The date as of which the Unpaid Balance of the Loans to be purchased hereunder is determined, and which shall be October 31, 2002.
 
	  
 	  
 
	  
 	 Excluded Loan:  Any Loan where as of the Closing Date: (a) with non-filing insurance; (b) any of the Obligors named in the Security Agreement or the Note are deceased;
(c) Loan which is subject to any pending bankruptcy action and has not been discharged in a previously pending action, and such Loan is not listed on the Valid Test Tape as being subject to any such action or previous action; (d) the Unpaid Balance
includes funds advanced for the purchase of single premium credit insurance covering the life, health, and/or employment of the any Obligor; (e) any Loan listed on Schedule A
 
	  
 	  
 
	  
 	 File:  As to each Loan, the documents and materials described in Section 6.C of this Agreement.
 
	  
 	  
 
	  
 	 Fixed Rate Loan:  A Loan with respect to which the Note is a Fixed Rate Note.
 
	  
 	  
 
	  
 	 Fixed Rate Note:  A Note which provides that the annual rate at which interest on the principal balance is calculated is fixed at a set percentage from origination to
maturity or which provides for precomputed interest.
 
	  
 	  
 
	  
 	 Loan:  A Loan or other loan, extension of credit, installment contract or other indebtedness listed on the Loan Purchase Schedule including without limitation consumer
loans, retail installment sales contracts, and revolving charge accounts and invoices.
 

 1
 

   
  

	  
 	 Loan Purchase Schedule:  A schedule of Loan(s) sold by Seller to Buyer on a Closing Date which schedule shall be furnished by Seller to Buyer and annexed as Schedule A to
the Bill of Sale by Seller with respect to the Loans purchased, which Schedule A shall contain the following required fields for each Loan: Account Number; Obligor(s) Name(s); Unpaid Balance as of Cutoff Date; Dollar Amount of Accrued Interest;
Number of Days of Accrued Interest; Current Note Rate; Per Diem Interest Amount; Interest Paid Through Date; Next Due Date; Last Paid Date; Lien Position; State of origination (and, if different, the state of the Obligors’ current residence);
Amount of Required Periodic Installment.  Seller shall furnish Buyer with a copy of the Loan Purchase Schedule at least one day prior Closing Date, in a format agreeable between Buyer and Seller.
 
	  
 	  
 
	  
 	 Note: A Note, or other evidence of indebtedness related to a Loan in whatever form or nature including without limitation, promissory note, loan contract, credit agreement,
installment loan contract, or retail installment sales contract.
 
	  
 	  
 
	  
 	 Note Rate:  For interest bearing loans, the annual rate at which interest accrues on the principal balance of the Note at the time of origination (which in the case of an
Adjustable Rate Note is subject to adjustment from time to time), in accordance with the terms of the Note.
 
	  
 	  
 
	  
 	 Purchase Price:  “Purchase Price” shall mean an amount equal to percent (0%) of the aggregate Unpaid Balance as of the Cut Off Date of the Loans set forth on
the Loan Purchase Schedule attached hereto plus one hundred percent (100%) of interest which has accrued at the Note Rate from the date interest is paid through to the Closing Date, to a maximum of 59 days of such accrued interest.

	  
 	  
 
	  
 	 Obligor:  The person or persons who are obligated to pay the Seller in accordance with the Loans.
 
	  
 	  
 
	  
 	 Repurchase Price:  The Unpaid Balance multiplied by the percentage shown in the definition of “Purchase Price,” above, plus, for interest bearing loans, accrued
interest at the Note Rate through the date of repurchase.
 
	  
 	  
 
	  
 	 Security Agreement:  The documents or instruments setting or establishing the security interest in collateral for Loans together with any and all certificates of title or
other evidences of ownership or the security interest.
 
	  
 	  
 
	  
 	 Servicing Transfer Date:  A date as agreed to by the Buyer and Seller, but in no event before  21 days after receipt of a Valid Test Tape as described in Section
5(A).  This date is currently estimated to be November 6, 2002
 
	  
 	  
 
	  
 	 Unpaid Balance:  For interest bearing Loans, the principal amount due.  For precomputed Loans, the gross balance due less any interest rebate that would be applied
to reduce the gross balance if the Loan were prepaid in full.  In no event shall the Unpaid Balance include any accrued but unpaid late fees or creditor-placed insurance covering the Mortgaged Property or other collateral.
 
	  
 	  
 
	 2.
 	 Purchases.  Seller has offered to sell and Buyer has agreed to buy, without recourse but subject to the terms of this Agreement, the Loans set forth on the Loan
Purchase Schedule together with all incidents thereof, including without limitation, all of Seller’s interest under each and every existing policy or certificate of insurance, if any, to the extent such relates to any collateral securing
any Loan; and as relate to the life or lives, health or employment of any Obligor, and all pending insurance claims and all claims filed in the future, if any, the proceeds thereof, and the insurance
 

 2
 
 

   
	  
 	 premium refunds, if any, in connection with any of the Loans purchased by Buyer. This Agreement shall govern the sale and transfer of such Loans, and other incidents
thereof.  The Purchase Price of the Loans will be established in accordance with the Purchase Price computation set forth in the Definitions in Section 1, above.  The Purchase Price shall be paid to the account of the Seller on the Closing
Date via wire transfer, in accordance with the written wiring instructions provided by Seller and attached hereto, or via such other payment method as may be agreed upon by the Buyer and Seller.  Seller shall designate said account no later
than within one (1) day prior to the Closing Date.  The purchase of the Loans from Seller shall be evidenced by an executed Bill of Sale, in the form attached as Exhibit A.
 
	  
 	  
 
	  
 	 Buyer and Seller agree that future purchases of Loans by Buyer from Seller may be made pursuant to this Agreement, as may be amended by a written Addendum as agreed to by
the parties.
 
	  
 	  
 
	 3.
 	 Adjustment to the Purchase Price.
 
	  
 	  
 
	  
 	 A.
 	 As soon as reasonably possible after the Closing Date but no later than 45 days after the Servicing Transfer Date, Buyer may, but is not required to, provide Seller with a detailed
statement (“Reconciliation Statement”) of the Purchase Price as of the close of business on the Cut Off Date.
 
	  
 	  
 	  
 
	  
 	 B.
 	 If Buyer provides Seller with a Reconciliation Statement, then, unless Seller, within sixty (60) days after delivery of the Reconciliation Statement, notifies Buyer in writing that
it objects to the computations shown on the Reconciliation Statement and specifies the basis for such objection (the “Objection Notice”), the Reconciliation Statement shall be binding upon the parties.
 
	  
 	  
 	  
 
	  
 	 C.
 	 If Seller does not give the Objection Notice, and if the Reconciliation Statement indicates that the change in the amount of the Purchase Price as of the close of business on the Cut
Off Date from the amount of the payment on the Closing Date (the “Adjustment Amount”) is a positive number, Buyer shall promptly pay Seller the Adjustment Amount as shown on the Reconciliation Statement.  If the Reconciliation
Statement indicates that the Adjustment Amount is a negative number, Seller shall promptly pay Buyer the Adjustment Amount.
 
	  
 	  
 	  
 
	 4.
 	 Excluded Loans.  Seller does not intend to sell, and Buyer does not intend to purchase, any Excluded Loans.  If at any time Buyer notifies Seller that an
Excluded Loan was sold and transferred to Buyer on the Closing Date, Seller will repurchase the Excluded Loan upon Buyer’s demand for the Repurchase Price within thirty (30) days of Buyer’s demand.  Buyer will execute and deliver such
assignments and other documents as Seller may reasonably request in order to transfer said Excluded Loan from Buyer to Seller.
 
	  
 	  
 
	 5.
 	 Closing.  The closing of the transaction evidenced by this Agreement shall occur as follows:
 
	  
 	  
 
	  
 	 A.
 	 If requested by Buyer, Seller shall provide Buyer with a computer tape and file layout thereof, or such other media as the parties may agree, containing such information as the Buyer
may require regarding the Loans for purposes of systems testing (“Valid Test Tape”) prior to the Closing Date.  Seller agrees to provide Buyer with all reasonable assistance that Buyer may request to insure that the information
received by Buyer from Seller is adequate for such testing purposes.
 

 3
 
 

	  
 	 B.
 	 Seller shall provide Buyer no less than three completed and executed sample Files for each type of Loan to be purchased hereunder, for each state in which such Loans were originated,
at least 21 days prior to the Closing Date.
 
	  
 	  
 	  
 
	  
 	 C.
 	 Seller shall provide Buyer with sample certificates of insurance for any credit insurance sold in conjunction with the Loans at least 21 days prior to the Closing Date.

	  
 	  
 	  
 
	  
 	 D.
 	 Seller shall cancel any creditor-placed insurance covering the collateral no later than the day immediately preceding the Closing Date.
 
	  
 	  
 	  
 
	  
 	 E.
 	 Seller shall cancel any credit insurance that is billed on a monthly basis and shall notify Obligors in the letter sent pursuant to Section 20.
 
	  
 	  
 	  
 
	  
 	 F.
 	 Seller shall provide Buyer with a copy of Seller’s Good-Bye Letter to  Obligors regarding the transfer of  Loans to Buyer, 7 days prior to the Closing Date.

	  
 	  
 	  
 
	  
 	 G.
 	 Left Blank Intentionally.
 
	  
 	  
 	  
 
	  
 	 H.
 	 Except as may be provided in Section 17, Seller shall, as of the Cut Off Date, create a computer tape in the same format as the Valid Test Tape, or such other medium as the parties
may agree, containing such information as Buyer may require regarding the Loans.  Such tape shall be provided to Buyer by Seller no later than two (2) business days after the Cut Off Date.
 
	  
 	  
 	  
 
	  
 	 I.
 	 Seller shall deliver all Files to Buyer no later than the Closing Date, or any files or portions of Files which are held by an independent third party bailee, such bailee shall
unconditionally acknowledge that it holds such portion of the Files for the benefit of Buyer,
 
	  
 	  
 	  
 
	  
 	 J.
 	 Between the Cut Off Date and the Closing Date, Seller shall continue to service the Loans in accordance with its customary servicing procedures as such Loans were serviced prior to
the Cut Off Date.
 
	  
 	  
 	  
 
	  
 	 K.
 	 Upon execution of this Agreement, the completion of all activities in Sections 5.A. through 5.I. above, and the fulfillment of all conditions to closing set forth in Section 14 of
this Agreement, Buyer shall wire the Purchase Price to Seller in accordance with Seller’s wiring instructions.
 
	  
 	  
 	  
 
	  
 	 L.
 	 Seller shall provide a copy of the Loan Purchase Schedule and a Closing Statement in the form as attached as Exhibit C at least one business day prior to the Closing Date.

	  
 	  
 	  
 
	  
 	 This Agreement may be terminated and abandoned at: (i) any time prior to the Closing Date by mutual written agreement of Buyer and Seller, or (ii) by Buyer if closing of
the transactions contemplated hereunder does not occur on the Closing Date.
 
	  
 	  
 
	 6.
 	 Seller’s Representations, Warranties and Covenants.  To induce Buyer to enter into this Agreement and purchase Loans from Seller, Seller makes the
following representations, warranties and covenants to Buyer, regardless of any independent investigation and/or review now, heretofore, or hereafter made by Buyer, its attorneys or agents and regardless of any opportunity for any such investigation
or review, which shall:  (i) be deemed to be true and correct as of the date of this 
 

 4
 
 

	  
 	 Agreement and on the Closing Date, and (ii) inure to the benefit of Buyer and any subsequent holder of the Loans.
 
	  
 	  
 
	  
 	 A.
 	 As to Seller.
 
	  
 	  
 	  
 
	  
 	 (i)
 	 Seller is duly organized, validly existing, and in good standing under the laws of its state of incorporation or, if not incorporated, under the laws of the state governing the
formation or creation of the legal entity through which Seller conducts its business, and Seller is qualified to transact business and is in good standing and will remain in good standing for the duration of this Agreement in each state where
required in order to perform this Agreement.
 
	  
 	  
 	  
 
	  
 	 (ii)
 	 Seller holds all requisite licenses, permits, and/or other governmental authorizations required by law to engage in the business of originating, servicing, and selling Loans to Buyer
in accordance with the terms of this Agreement.
 
	  
 	  
 	  
 
	  
 	 (iii)
 	 Seller has the full power and authority to make and hold each Loan, and neither the execution and delivery of this Agreement, the making of the Loans, the consummation of the
transactions contemplated herein, nor the fulfillment of or compliance with the terms or conditions of this Agreement will conflict with or result in a breach of any term, condition, or provision of Seller’s certificate of incorporation or
by-laws or any agreement to which Seller is a party or by which Seller is bound, or constitute a default or result in an acceleration under any of the foregoing. To the extent that any of the Loans to be sold and transferred hereunder are financed
by, and pledge to secure a warehouse line of credit or other funding vehicle, payment of the Purchase Price (together with any amounts held by such warehouse lender or other creditor) is sufficient to cause the release as collateral of all Loans and
the corresponding Notes and Files. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate or other actions, and no other
corporate or other proceedings on the part of Seller are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.
 
	  
 	  
 	  
 
	  
 	 (iv)
 	 No consent, approval, authorization, or order of any court, governmental body or any other person or entity is required for the execution, delivery, and performance by Seller of this
Agreement.
 
	  
 	  
 	  
 
	  
 	 (v)
 	 There is no suit, action, arbitration, or legal or administrative or other proceeding pending, or to Seller’s knowledge threatened, against Seller which would materially affect
its ability to perform its obligations under this Agreement.
 
	  
 	  
 	  
 
	  
 	 (vi)
 	 Upon execution and delivery of this Agreement, it shall be a valid and binding obligation of Seller, enforceable against Seller in accordance with its terms subject to bankruptcy,
insolvency, and similar laws affecting the rights of creditors generally.
 
	  
 	  
 	  
 
	  
 	 (vii)
 	 Neither this Agreement nor any statement, report or other document prepared by Seller and delivered to Buyer relating to this Agreement, the Loans or Seller’s ability to perform
its obligations under this Agreement, contains any untrue statement or fact or omits to state a fact or circumstance necessary to make the statements contained herein or therein accurate and not misleading.
 

 5
 
 

	  
 	 (viii)
 	 Seller is solvent, and sale of the Loans will not cause Seller to become insolvent.  The sale of the Loans is not undertaken with the intent to hinder, delay or defraud any of
the Seller’s creditors.
 
	  
 	  
 	  
 
	  
 	 (ix)
 	 Seller shall not represent to anyone that a Obligor whose Loan has been transferred to Buyer will receive any more favorable or different treatment from Buyer than would be received
if such Loan had not been transferred to Buyer by Seller.
 
	  
 	  
 	  
 
	 B.
 	 As to the Loans, on the Closing Date:
 
	  
 	  
 
	  
 	 (i)
 	 intentionally left blank.
 
	  
 	  
 	  
 
	  
 	 (ii)
 	 The terms of the Security Agreement and Note have not been impaired, waived, altered, or modified in any respect, except by agreement , and the original or certified true
copy of such agreement is contained in the File and the terms of which are reflected on the Loan Purchase Schedule.
 
	  
 	  
 	  
 
	  
 	 (iii)
 	 The Loan, including without limitation the origination, servicing and transfer thereof, the Security Agreement, the Note and any insurance policy, certificate and
coverage relating thereto, and Seller’s activities in connection therewith, comply with all applicable federal, state and local laws, rules, regulations and ordinances including without limitation all usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to the Loan.
 
	  
 	  
 	  
 
	  
 	 (iv)
 	 Subject to applicable law, the Security Agreement obligates the Obligor thereunder to maintain appropriate insurance at the Obligor’s cost and expense and allows but
does not obligate the Buyer  to advance funds to procure such insurance in the event Obligor does not and to seek reimbursement therefor from the Obligor.  The  Security Agreement further provides, subject to applicable law, that all
such sums as may be advanced by the holder of the Note for such insurance may be added to the Loan indebtedness and secured by the Security Agreement. All such insurance policies contain a standard mortgagee clause or lender loss payee naming the
Seller and its successors and assigns as loss payee.
 
	  
 	  
 	  
 
	  
 	 (v)
 	 Except as may be noted both in the applicable File of a Loan and on the Valid Test Tape, the Security Agreement has not been satisfied, cancelled, rescinded or
subordinated, in whole or in part.  The Obligor has not been released, in whole or in part, from such Obligor’s obligations under the Note, and the collateral has not been released, in whole or in part, from the lien of the  Security
Agreement.
 
	  
 	  
 	  
 
	  
 	 (vi)
 	 The Loan, as transferred to Buyer, is valid, and enforceable in accordance with its terms, subject, to bankruptcy, insolvency and similar laws affecting the rights of
creditors generally, provided however, this shall not be supercede or alter any other provision of this Agreement relating to the current or prior bankruptcy or insolvency status of any Loan.
 
	  
 	  
 	  
 
	  
 	 (vii)
 	 All parties to the Note and Security Agreement were the real parties in interest on each Loan and not mere nominees or accommodation parties for any other persons and had
full legal capacity to execute same.  None of the Obligors is deceased.  Each signature is the genuine and authentic signature of the person it purports to be.
 
				

 6
 
 

	  
 	 (viii)
 	 Except for the existing revolving credit facility with Bank of America, the Note and Security Agreement have not been assigned, pledged, or hypothecated, nor subject to any security
agreement by Seller. Seller has good and marketable title to the Loan and is the sole owner thereof and has full and unrestricted right to sell, assign and transfer the Loan, the Note, the Security Agreement and the File to Buyer free and clear of
any liens, encumbrances, equities, loans, pledges, charges, claims, or security interests.
 
	  
 	  
 	  
 
	  
 	 (ix)
 	 The Note and the Security Agreement are not subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, nor will the operation of any of the
terms of the Note and the Security Agreement, or the exercise of any right thereunder, render the Security Agreement unenforceable, in whole or in part, or subject to any such right of rescission, set-off, counterclaim or defense and no such right
of rescission, set-off, counterclaim or defense, including the defense of usury, has been asserted with respect thereto. There are no unresolved claims, defenses or disputes raised by the Obligor against any originator, dealer, lender or the
Seller.
 
	  
 	  
 	  
 
	  
 	 (x)
 	 Except as may be noted both in the applicable File of a Loan and on the Valid Test Tape, there is no default, breach, violation or event of default and/or acceleration existing under
the Note or Security Agreement , nor has there occurred any event which, with the passage of time or the giving of notice or both, could give rise to such default, breach, violation or event of default and/or acceleration.  Seller has not
waived any default, breach, violation or event of default or acceleration under the Note, or Security Agreement.
 
	  
 	  
 	  
 
	  
 	 (xi)
 	 Except as may be noted both in the applicable File of a Loan and on the Valid Test Tape, there are no liens or claims for work, labor or materials affecting the Collateral which are
or may be liens prior to, or equal or coordinate with, the lien of the Mortgage.
 
	  
 	  
 	  
 
	  
 	 (xii)
 	 The Note is not and has not been secured by any collateral except the Collateral specified in the Security Agreement.
 
	  
 	  
 	  
 
	  
 	 (xiii)
 	 The security interest of each of the Security Agreements constitutes a valid, enforceable and perfected (in accordance with applicable laws) lien of the type and priority shown in
the Files. The Security Agreement contains customary and enforceable provisions, subject to applicable law, so as to render the rights and remedies of the holder thereof adequate for the realization against the collateral of the benefits of the
security provided.
 
	  
 	  
 	  
 
	  
 	 (xiv)
 	 The proceeds of the Loan have been fully disbursed, there is no obligation on the part of the holder of the Note to make future advances thereunder, any and all requirements as to
completion of any on-site or off-site improvements have been complied with, and any disbursement of any escrow funds therefor has been made.  All costs, fees and expenses incurred in making, closing or recording the Loan have been paid. 
The Obligor is not entitled to any refund of any amounts paid or due under the Note or the Security Agreement.
 
	  
 	  
 	  
 
	  
 	 (xv)
 	 There is no obligation on the part of the Seller or any other party to make payments on account of the Loan which are in addition to those made by the Obligor.
 

 7
 
 

	  
 	 (xvi)
 	 All information and each document contained in each File is materially true, complete, accurate, and correct. The Seller has no actual knowledge of any circumstances or conditions
with respect to the Security Agreement, or collateral, the Obligor or the Obligor’s credit standing that, in the Seller’s opinion, could cause the Loan to become delinquent.
 
	  
 	  
 	  
 
	  
 	 (xvii)
 	 The transfer, assignment and conveyance of the Note and Security Agreement and related File by the Seller pursuant to this Agreement are not subject to the bulk transfer laws or any
similar statutory provisions in effect in any applicable jurisdiction.
 
	  
 	  
 	  
 
	  
 	 (xviii)
 	 No instruments other than those delivered to Buyer are required under applicable law to evidence the indebtedness represented by the Loan or to perfect the security interest in the
collateral.
 
	  
 	  
 	  
 
	  
 	 (xix)
 	 Seller has not made any agreement or reached any understanding with any Obligor for any variation of the Note Rate, amount of interest to be paid, schedule of payments or other terms
and conditions of the Loan not reflected in the Note, except by agreement, with respect of all Loans, the original or certified true copy of such agreement is contained in the File and the terms of which are reflected on the Loan Purchase
Schedule.
 
	  
 	  
 	  
 
	  
 	 (xx)
 	 Neither Seller nor any stockholder, director or officer of Seller has received any benefit, consideration or value, other than the increased business to Seller and its affiliated
corporations represented by the Loan, a prepaid finance charge disclosed to the Obligor on the Loan, or insurance commissions from time to time heretofore paid, from any Obligor or anyone else in connection with the Loan.
 
	  
 	  
 	  
 
	  
 	 (xxi)
 	 Each credit report obtained in connection with a Loan was properly obtained from a major credit reporting agency. Each credit report  obtained by Seller in connection with the
origination of a Loan directly originated by Seller was less than 90 days old at the time of origination.
 
	  
 	  
 	  
 
	  
 	 (xxii)
 	 The governing laws with respect to the origination, servicing and foreclosure of any Loans are the applicable provisions of the laws of the state in which the Obligors reside or
where the collateral is located, or the laws of the United States, and not any tribal law, and no tribal court has exclusive jurisdiction of the same.
 
	  
 	  
 	  
 
	  
 	 (xxiii)
 	 The Seller has not advanced funds, or induced, solicited or knowingly received any advance of funds from a party other than the Obligor, directly or indirectly, for the payment of
any amount required under the Loan. All payments shown on the records relating to the Loans were made on the dates indicated on said records, and none of the credits entered on the records were gratuitous or were given for a payment made by an
affiliate, employee or agent of Seller.
 
	  
 	  
 	  
 
	  
 	 (xxiv)
 	 The Obligor has not notified the Seller and the Seller has no actual knowledge of any relief requested by or allowed to the Obligor under the Soldiers’ and Sailors’ Civil
Relief Act of 1940.
 
	  
 	  
 	  
 
	  
 	 (xxv)
 	 The consideration received by Seller upon the sale of the Loans under this Agreement constitutes fair consideration and reasonably equivalent value for the Loans.
 

 8
 
 

	  
 	 (xxvi)
 	 Unless noted on the Valid Test Tape, the Loan is not subject to litigation, written threatened litigation, arbitration, collection or foreclosure proceedings,

	  
 	  
 	  
 
	  
 	 (xxvii)
 	 Seller has remitted to the appropriate insurance company all insurance premiums of any kind whatsoever for all insurance related to each Loan.
 
	  
 	  
 	  
 
	  
 	 (xxviii)
 	 There is no creditor placed-insurance, or all creditor-placed insurance covering the collateral has been cancelled effective no later than the day immediately preceding
the Closing Date.
 
	  
 	  
 	  
 
	  
 	 (xxix)
 	 All dealer reserves, holdbacks or participations have been paid, or are the responsibility of the Seller, and Buyer shall not be liable in any manner for any of the
foregoing.
 
	  
 	  
 	  
 
	  
 	 (xxx)
 	 The Loan was not designated to be used solely for the purchase of home improvement goods or services, with payments made directly to the provider of such home improvement
goods or services.
 
	  
 	  
 	  
 
	  
 	 (xxxi)
 	 The data tapes to be provided by the Seller pursuant to Section 5 fully and accurately reflect the true outstanding unpaid balance of the Loans and all receipts on the
Loans from Obligors and all credits to which the Obligors are entitled.
 
	  
 	  
 	  
 
	  
 	 (xxxii)
 	 The Collateral has not been seized by a governmental agency.
 
	  
 	  
 	  
 
	 C.
 	 Seller’s Covenants to Provide Documents.  Seller shall sell, assign and deliver to Buyer, with respect to each Loan, the following documents:

	  
 	  
 
	  
 	 i
 	 With respect of all the Loans:
 
	  
 	  
 	  
 
	  
 	  
 	 a)
 	 Note endorsed by Seller in blank without recourse pursuant to an effective and enforceable power of attorney.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 b)
 	 Any other instruments as reasonably requested by Buyer as necessary to record Buyer’s ownership of the Security Agreement.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 c)
 	 A list of all Loans on which creditor-placed insurance covering the collateral has been cancelled pursuant to Section 6.B.(xxviii), above.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 d)
 	 Original loan application signed by Obligor, and all credit and other information related to the collateral, including credit bureau reports, which Seller may possess concerning any
Obligor.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 e)
 	 The originals or certified true copies of all assumption, modification, consolidation or extension agreements, with evidence of recording thereon.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 f)
 	 Verification of employment and income.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 g)
 	 Federal Truth-in-Lending Disclosure Statement and other state or federally required notices or rescission forms.
 
					

 9
 
 

	  
 	  
 	 h)
 	 Obligor identification provided to the Seller, where permitted by law.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 i)
 	 All of its right, title and interest in all security instruments and the liens created thereunder with respect to the Loans.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 j)
 	 All filing receipts evidencing the recordation or filing in governmental filing or recording offices of financing statements and other filing instruments with respect to all Loans
secured by titled vehicles, including without limitation, motor vehicles, trailers, manufactured housing, watercraft or real estate, as well as all other receipts as are contained in the Files of the Loans.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 k)
 	 Ledger sheets, payment history from date of origination, collection notes, insurance claim files including correspondence with respect thereto, correspondence, current and historical
computerized data files, and all other processing, underwriting and closing papers and records which are customarily contained in a File and which are in the Seller’s possession and are contained in the File.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 l)
 	 A Limited Power of Attorney in the form set forth in Exhibit B.
 
	  
 	  
 	  
 	  
 
	 D.
 	 Insurance
 
	  
 	  
 
	  
 	 Seller shall assist Buyer in securing Long Form Loss Payable Clauses to be issued in favor of Buyer with respect to any insurance covering real property, and also an
assignment of Seller’s beneficial interest in any policy(ies) covering the life or lives and/or sickness or disability, involuntary unemployment and or insurance covering personal property of any obligors of such Loans.  Seller agrees to
notify the insurance carrier(s) of this Agreement and to instruct said carrier(s) to pay to Buyer any and all funds, unearned premiums that are refundable at the time of pay-off of a Receivable, and return premium claims due or hereafter to become
due to Seller.
 
	  
 	  
 
	 7.
 	 This section intentionally blank.
 
	  
 	  
 
	 8.
 	 This section intentionally blank
 
	  
 	  
 
	 9.
 	 Seller and Buyer not Joint Venturers or Agents.  Under no circumstances shall Buyer and Seller be considered agents or employees of each other, nor shall this
Agreement be construed as creating a partnership or joint venture.
 

 10
 
 

	 10.
 	 Indemnification.
 
	  
 	  
 
	  
 	 A.
 	 Indemnification of Buyer: Seller agrees to defend, indemnify and hold harmless Buyer from and against any and all losses, damages, claims, suits, proceedings, liabilities,
costs and expenses, including reasonable attorneys’ fees (“Losses” or “Claims” as the context requires), which may be imposed on, sustained, incurred or suffered by, or asserted against Buyer, directly or indirectly, as a
result of or relating to or arising out of (a) the breach by Seller of this Agreement or of any representation or warranty or covenant or agreement of the Seller contained in this Agreement, (b) any litigation, threatened litigation, arbitration,
threatened arbitration, or other legal or administrative proceeding,  (c)  Seller’s failure or inability to provide Buyer with accurate information regarding the term of any insurance sold under any Loan, or (d) any Claims or Losses
arising out of or relating to any act or omission of Seller or its affiliates with respect to the Loans.
 
	  
 	  
 	  
 
	  
 	 B.
 	 Indemnification of Seller: Buyer agrees to defend, indemnify and hold harmless Seller from and against any and all losses, damages, claims, suits, proceedings, liabilities,
costs and expenses, including reasonable attorneys’ fees (“Losses” or “Claims” as the context requires), which may be imposed on, sustained, incurred or suffered by, or asserted against Seller, directly or indirectly, as a
result of or relating to or arising out of (a) the breach by Buyer of this Agreement or of any representation or warranty or covenant or agreement of the Buyer contained in this Agreement, or arising from Buyer’s ownership of the Loans or other
assets purchased under this Agreement, at any time on or after the Closing Date , or (b)  any Claims or Losses arising out of or relating to any act or omission of Buyer or its affiliates after the Closing Date with respect to the
Loans.
 
	  
 	  
 	  
 
	  
 	 C.
 	 Procedure for Indemnification:
 
	  
 	  
 	  
 
	  
 	   (i)
 	 If a party to this Agreement entitled to assert a Claim under this Agreement shall receive notice of the assertion by a person who is not a party to this Agreement of any claim or of
the commencement by any such person of any action or proceeding (a “Third Party Claim”) with respect to which the Seller or the Buyer is obligated to provide indemnification, the indemnified party (the “Indemnitee”) shall give
the indemnifying party (the “Indemnitor”) prompt written notice thereof. Such notice shall describe the Third Party Claim in reasonable detail.
 
	  
 	  
 	  
 
	  
 	   (ii)
 	 The Indemnitor may elect to compromise or defend, at such Indemnitor’s own expense and by such Indemnitor’s own counsel, any Third Party Claim.  If an Indemnitor
elects to defend a Third Party Claim it shall, within thirty (30) days of receipt of the notice referred to in Section 10.C(i) above (or sooner, if the nature of such Third Party Claim so requires), notify the Indemnitee of its intent to do so, and
the Indemnitee shall reasonably cooperate in the compromise of, or defense against, such Third Party Claim.  Such Indemnitor shall pay such Indemnitee’s actual and reasonable out-of-pocket expenses
 

 11
 
 

	  
 	  
 	 incurred in connection with such cooperation.  After written notice from an Indemnitor to an Indemnitee of its election to assume the defense of a Third Party Claim, such
Indemnitor shall not be liable to such Indemnitee under Section 10.A or Section 10.B, as the case may be, for any legal expenses subsequently incurred by such Indemnitee in connection with the defense thereof; provided that such Indemnitee
shall have the right to employ one counsel for each Third Party Claim to represent the Indemnitee if, in the Indemnitee’s good faith judgment, (a) a conflict of interest between the Indemnitee and the Indemnitor exists in respect of such Third
Party Claim, or (b) where the Indemnitor is also a party to such Third Party Claim, different or conflicting claims or defenses may exist, in which events the fees and expenses of such separate counsel shall be paid by such Indemnitor.  If an
Indemnitor elects not to defend against a Third Party Claim, or fails to notify an Indemnitee of its election as provided herein, such Indemnitee may without advance written notice to the Indemnitor, pay, compromise or defend such Third Party Claim
reasonably and in good faith on behalf of and for the account and risk of the Indemnitor to the extent that the Indemnitee is entitled to receive indemnification from the Indemnitor hereunder.  Neither Indemnitor nor Indemnitee shall consent to
entry of any judgment or entry into any settlement against or with respect to any Indemnitee without the written consent of the other, unless such judgment or settlement, with respect to the Indemnitee, (a) provides solely for money damages or other
payments for which such Indemnitee is entitled to indemnification hereunder and (b) includes as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release for all liability in respect of such Third Party
Claim.
 
	  
 	  
 	  
 
	  
 	   (iii)
 	 With respect to any Claim or Loss other than a Third Party Claim, the Indemnitee shall give the Indemnitor prompt written notice of the Claim or Loss.  Such notice shall
describe the Claim or Loss in reasonable detail and include any and all written or electronic documentation pertaining to the Claim or Loss.
 
	  
 	  
 	  
 
	  
 	   (iv)
 	 If the amount of any Claim or Loss shall, at any time subsequent to payment pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction,
less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnitor.
 
	  
 	  
 	  
 
	  
 	 D.
 	 Certain Limitations on Indemnity
 
	  
 	 (i)
 	 Seller’s obligation to indemnify hereunder to Buyer for any Claims or Losses relating to (a) Third Party Claims with respect to the Loans, shall terminate on the applicable
statute of limitation for any such claim; (b) Seller’s breach of any representation or warranty set forth in subsection 6A of this Agreement, shall not expire;  and (c) for any other Claims or Losses, shall terminate on November 6,
2004.
 

 12
 
 

	  
 	 (ii)
 	 Buyer’s obligation to indemnify or any other liability hereunder to Seller for any Claims or Losses relating to (a) Third Party Claims with respect to the Loans, shall terminate
on the applicable statute of limitation for any such claim; (b) Buyer’s breach of any representation or warranty set forth in Section 12A through 12G, inclusive of this Agreement, shall not expire; and (c) any other liability hereunder to
Seller for any other Claims or Losses shall terminate on November 6, 2004.
 
	  
 	  
 	  
 
	  
 	 Seller’s and Buyer’s obligation to indemnify the other for Claims or Losses that are included in subsections 10D(i)(c) and 10D(ii)(c), respectively shall each
be limited to an amount equal to the Purchase Price in the aggregate with respect to such claims.
 
	  
 	  
 
	 11.
 	 Cure of Breach and Repurchase by Seller.
 
	  
 	  
 
	  
 	 A.
 	 In the event of a claim by any Obligor which, if true, would be a breach of any of Seller’s representations, warranties or covenants, then, in addition to the remedies specified
in Section 10, above, Buyer may demand that Seller, at Seller’s option, either (a) cure the breach; or (b) repurchase such Loan forthwith, for the Repurchase Price.  Seller shall have a period of 30 days from its receipt of notice from
Buyer of such breach to either cure the breach or repurchase the loan.  If Seller elects to cure the breach but fails to effect a cure within this time period, then Seller shall repurchase the Loan without further demand from Buyer.

	  
 	  
 	  
 
	  
 	 B.
 	 Upon repurchase, Buyer shall reassign the Loan to Seller and execute any documents of assignment reasonably required to transfer the Loan to Seller.
 
	  
 	  
 	  
 
	 12.
 	 Buyer’s Representations, Warranties and Covenants.  To induce Seller to enter into this Agreement and sell Loans to Buyer, Buyer makes the following
representations, warranties and covenants to Seller regardless of any independent investigation and/or review now, heretofore, or hereafter made by Seller, its attorneys or agents and regardless of any opportunity for any such investigation or
review which shall:  (i) be deemed to have been true, correct and restated as of the Closing Date, and (ii) inure to the benefit of Seller.
 
	  
 	  
 
	  
 	 A.
 	 Buyer is duly organized, validly existing, and in good standing under the laws of the state of its incorporation and Buyer is qualified to transact business and is in good standing
in each state where required in order to perform this Agreement.
 
	  
 	  
 	  
 
	  
 	 B.
 	 Buyer holds all requisite licenses, permits, and/or other governmental authorizations required by law to consummate the transaction evidenced by this Agreement.
 
	  
 	  
 	  
 
	  
 	 C.
 	 Buyer has the full power and authority to purchase and hold each Loan; and neither the execution and delivery of this Agreement, nor the purchasing of the Loans, the consummation of
the transactions contemplated herein, nor the fulfillment of or compliance with the terms or conditions of this Agreement will conflict with or result in a breach of any term, condition, or provision of Buyer’s articles of incorporation or
by-laws or any agreement to which Buyer is a party or by which Buyer is bound, or constitute a default or result in an acceleration under any of the foregoing.
 

 13
 
 

	  
 	 D.
 	 No consent, approval, authorization, or order of any court, governmental body or any other person or entity is required for the execution, delivery, and performance by Buyer of this
Agreement.
 
	  
 	  
 	  
 
	  
 	 E.
 	 There is no suit, action, arbitration, or legal or administrative or other proceeding pending, or to Buyer’s knowledge threatened, against Buyer which would affect its ability
to perform its obligations under this Agreement.
 
	  
 	  
 	  
 
	  
 	 F.
 	 Upon execution of delivery of this Agreement, it shall be a valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to bankruptcy,
insolvency, and similar laws affecting the rights of creditors generally.
 
	  
 	  
 	  
 
	  
 	 G.
 	 The Buyer shall bear the cost of recording any required mortgage assignments.
 
	  
 	  
 	  
 
	  
 	 H.
 	 If the Leases are validly and effectively assigned to Buyer, Buyer shall accept all responsibility for such Leases, including the payment of rents.
 
	  
 	  
 	  
 
	 13.
 	 Employees; Leases.
 
	  
 	  
 	  
 
	  
 	 A.
 	 Effective as of the next business day after the Closing Date (the “Hire Date”), Buyer shall offer employment to such employees of Seller that Buyer, in its sole
discretion, decides to hire (the “New Employees”).  Offers must be accepted within 2 days, or they will be considered to be withdrawn.  Seller makes no representation as to whether any such employee will accept employment
with Buyer.  The continued employment of the New Employees shall not be construed to limit the ability of Buyer to terminate the employment of any New Employee at any time for any reason, and the employment of the New Employees shall be subject
to all of Buyer’s practices and policies, including its policy of employment-at-will.  Drug tests and credit checks will not be conducted for New Employees, but they will be subject to all of Buyer’s other pre-employment
requirements.
 
	  
 	  
 	  
 
	  
 	 B.
 	 Buyer shall employ the New Employees at a base salary customary for Buyer’s employees with similar prior experience at the applicable location.  Buyer shall provide the New
Employees with the employee benefits generally provided to other new employees of Buyer, subject to the terms and conditions of Buyer’s benefit plans, including applicable waiting periods. Buyer shall not have any responsibility or liability
for any obligations pursuant to or in connection with any welfare, medical, insurance, disability or other employee benefit plans of Seller.
 
	  
 	  
 	  
 
	  
 	 C.
 	 The New Employees shall be considered new hires with Buyer as of the Hire Date for purposes of any Employee Welfare Benefit Plans or Employee Pension Benefit Plans and all other
employee personnel programs (including, but not limited to vacation benefits, employee assistance programs, tuition reimbursement programs) maintained, sponsored, assumed by or contributed to by Buyer for its employees. For the purposes of this
Agreement, “Employee Welfare Benefit Plan” means any employee welfare benefit plan within the meaning of Section 3(1) of ERISA, regardless of whether any such plan is subject to ERISA, and “Employee Pension Benefit Plan” means
any employee pension benefit plan within the meaning of Section 3(2) of ERISA, regardless of whether any such plan is subject to ERISA.  Notwithstanding the foregoing, for purposes of
 

 14
 
 

	  
 	  
 	 calculating vacation benefits after the current year, Buyer will give the New Employees credit for the years they were employed with Seller in determining the amount of annual
vacation to which they are entitled to receive.  Vacation for New Employees for the remainder of the current year will be determined by calculating the number of vacation days which the employee would be entitled to receive pursuant to
Buyer’s vacation policy (giving credit for years of service with Seller), minus the number of vacation days which the employee took while employed by Seller during the current year.  Seller will provide Buyer with an updated list of all
vacation taken by New Employees up to the Closing Date.
 
	  
 	  
 	  
 
	  
 	 D.
 	 Any New Employee terminated after hire will be subject to the applicable severance policies of Buyer in effect from time to time (if applicable).
 
	  
 	  
 	  
 
	  
 	 E.
 	 Seller shall be responsible for satisfying obligations under Section 601 et seq. of ERISA and Section 4980B of the Internal Revenue Code, to provide continuation coverage to or with
respect to any employee of Seller as of the Closing Date in accordance with applicable law with respect to any “qualifying event” occurring on or prior to the Closing Date, including any “qualifying event” resulting from the
Closing hereunder.  Seller shall pay the employer’s share of the cost of continuing any medical and dental (as applicable) insurance pursuant to federal COBRA laws for any employee who is eligible under such laws and elects to continue
such insurance.
 
	  
 	  
 	  
 
	  
 	 F.
 	 Seller shall be responsible for providing notice for any “plant closing” or “mass layoff” as defined in the worker Adjustment and Retraining Notification Act (the
“WARN Act”), 29 U.S.C. §2101 et seq., up to and including the Closing Date.
 
	  
 	  
 	  
 
	  
 	 G.
 	 Nothing contained in this Agreement, whether expressed or implied, is intended to confer upon any employee of Seller or any New Employee or their legal representatives any rights or
remedies, including, without limitation, any rights of employment for any period of any nature or kind whatsoever under or by reason of this Agreement.
 
	  
 	  
 	  
 
	  
 	 H.
 	 Buyer shall not have any employment related liability or obligation for any claims arising as result of any actions or omissions taken or made by Seller to any employees, agents, or
independent contractors of Seller, whether or not employed by Buyer after the Closing.  In no way shall Seller be responsible for employment claims arising out of Buyer’s actions or omissions with respect to the hiring of employees through
the date of closing, or for any liability that arises out of Buyer’s actions in interviewing, selecting and hiring Seller’s former employees.  The Seller agrees to indemnify Buyer for any liability (including costs, expenses, and
attorneys’ fees) incurred by Buyer as a result of any claims arising out of this subsection 13H from the Seller’s acts or omissions.  The Buyer agrees to indemnify Seller for any liability (including costs, expenses, and
attorneys’ fees) incurred by Seller as a result of any claims arising out of this subsection 13H from the Buyers actions or omissions.  Each party initially shall bear its own costs and attorneys’ fees with respect to claims by
employees or independent contractors against either or both parties based on their actions.  If it is finally determined by a court or arbitrator that either the Buyer or the Seller is liable for breaches of legal duties to employees or
independent contractors, the party determined to be liable shall indemnify the other party for all damages, costs, expenses and attorneys’ fees which the non- breaching party pays or incurs.  If both parties are found liable in a given
case, each party 
 

 15
 
 

	  
 	  
 	 will bear its own costs (including damages and attorneys’ fees).  No party may settle a case where it may seek indemnification from the other party without the other
party’s consent.
 
	  
 	  
 	  
 
	  
 	 I.
 	 Seller confirms that it is not a party to any contract with any labor organization, and Seller has not recognized or agreed to recognize and is not required to recognize any union or
other collective bargaining unit.  No union or other collective bargaining unit been certified as representing any of Seller’s employees, nor has Seller received any requests from any party for recognition as a representative of employees
for collective bargaining purposes.  To Seller’s knowledge its employees are not engaged in organizing activity with respect to any labor organization.  Seller has no employment agreement of any kind, oral or written, express or
implied, that would require Buyer to employ any of Seller’s employees after the Closing Date.
 
	  
 	  
 	  
 
	  
 	 J.
 	 Buyer agrees that it will assume all of the Leases relating to the Branches as described on Exhibit D and will enter into such assignments of lease or sublease for the Branch Offices
as is necessary to effect an assumption of liabilities and release of Seller’s liability under the Lease. Buyer will not be liable for such assumption unless and until the landlord approves such assumption and all other requirements for such
assumption have been met. As between Buyer and Seller, Buyer accepts full responsibility for such after Assumption, whether or not Landlord has released Seller from such obligation.  To the extent any rent is paid in advance by Seller for the
time period in which Buyer will be responsible for such rent, Buyer shall provide Seller a credit  for such prorated amount or shall pay to Seller such prorated amount. Seller shall be entitled to all refunded security deposits for which it has
previously paid.
 
	  
 	  
 	  
 
	 14.
 	 Conditions to Closing.  The obligations of Buyer to consummate the transactions contemplated herein are subject to the fulfillment, at or prior to the Closing
Date, of each of the following conditions:
 
	  
 	  
 
	  
 	 A.
 	 No action or proceeding shall have been instituted and remain pending against Buyer or Seller that would restrain or prohibit the transactions contemplated by this
Agreement.
 
	  
 	  
 	  
 
	  
 	 B.
 	 The performance of all Seller’s obligations pursuant to Section 5.A through 5.I, within the time periods set forth in Section 5.
 
	  
 	  
 	  
 
	  
 	 C.
 	 Seller shall have delivered, in electronic format if reasonably available, and if not then in hard copy format, the payment history and collection notes for each Loan purchased by
Buyer hereunder.
 
	  
 	  
 	  
 
	  
 	 The obligations of Seller to consummate the transactions contemplated herein are subject to the fulfillment, at or prior to the Closing Date, of the condition that no
action or proceeding shall have been instituted and remain pending against Buyer or Seller that would restrain or prohibit the transactions contemplated by this Agreement.
 

 16
 
 

	 15.
 	 Seller to Assign Servicing.  Upon execution of this Agreement, and payment of the Purchase Price by Buyer, Seller assigns and releases all servicing rights
and responsibilities including without limitation, all rights to receive servicing fees and other servicing-related income and benefits, with respect to each Loan purchased under this Agreement to and for the benefit of Buyer, as of the Closing
Date.  Seller acknowledges and agrees that Buyer shall enjoy such servicing rights, all freely assignable, with no residual, contingent or other claims thereon remaining in Seller with respect to any right of Seller to service the Loans after
the Closing Date, until only such time, if any, as Seller repurchases any Loan from Buyer pursuant to the terms of this Agreement, and then only as to the Loans repurchased.  Buyer hereby agrees to assume the servicing obligations of the
assigned Loans at the Servicing Transfer Date; provided, however, that the obligations of Seller set forth in this Agreement shall survive such assignment as obligations of Seller.  Seller will notify the Obligor under each Loan purchased
hereunder of the transfer of servicing at Seller’s cost and in accordance with any applicable laws.
 
	  
 	  
 
	 16.
 	 Solicitation of Obligors.  Prior to and after the Closing Date, Seller shall not take any action or cause or allow any action to be taken by any of its
employees, agents, affiliates or by any independent contractors on Seller’s behalf, to solicit in any manner whatsoever the Obligors on the Loans purchased hereunder to prepay or refinance any Loan provided, however, that promotions undertaken
by Seller which (1) are directed to the general public and not specifically directed to the Obligors, (2) promotions for nonloan products, shall not constitute a breach of this paragraph.  The obligations under this paragraph shall continue for
a period of 36 months from the date of this Agreement.
 
	  
 	  
 
	 17.
 	 Interim Servicing.  Notwithstanding anything to the contrary contained in this Agreement, to the extent that the actual servicing of any Loan or Loans (a)
cannot be transferred from Seller to Buyer on the Closing Date(b) will not be transferred from Seller to Buyer by agreement of the parties, then Seller shall service such Loans as a subservicer on behalf and for the benefit of Buyer pursuant to the
terms and conditions of this Section 17.  Seller shall service such Loans from and after the Cut Off Date until the relative Servicing Transfer Date in compliance with reasonable and customary servicing practices and procedures of prudent 
loan servicers that service  loans similar to the  Loans.  Except as provided below, within five (5) business days after the Closing Date, and weekly thereafter, Seller shall remit to Buyer, by wire, all amounts received by Seller
after the Cutoff Date and to and including the Servicing Transfer Date (including without limitation, monies received or held in reserve for the payment of taxes, insurance premiums or other charges in connection with the Loan, plus interest
thereon), together with the following:
 
	  
 	  
 
	  
 	 (i)
 	 A summary of remittances (including the account numbers, amount of payments, amount of escrow and account reserves);
 
	  
 	 (ii)
 	 A trial balance of Loans;
 
	  
 	 (iii)
 	 A monthly collection report; and
 
	  
 	 (iv)
 	 As appropriate, arrears reports, prepaid reports, reports of Loans added or removed, and reports of prepaid monthly payments and of principal prepayments.
 
	  
 	  
 	  
 
	  
 	 Seller shall promptly post any payments received between the Cut Off Date and the Closing Date and remit such payments to Buyer no later than five (5) days after the
Closing Date.
 
	  
 	  
 
	  
 	 During the interim servicing period, which shall expire no later than  the Closing Date, Seller shall take no action to compromise, renew, modify or alter the terms
of a Loan or to commence any judicial or non-judicial action to collect a Loan without the prior written consent of Buyer.
 

 17
 
 

	  
 	 Any payments or monies received or held by Seller from or on behalf of a Obligor after the Servicing Transfer Date shall be held in trust by Seller for the benefit of Buyer. 
Any payments or monies received by Seller from or on behalf of a Obligor after the Servicing Transfer Date shall be delivered to Buyer within seven (7) business days of Seller’s receipt thereof.
 
	  
 	  
 
	  
 	 Seller shall, as of the Servicing Transfer Date, create a computer tape in the same format as the Valid Test Tape, or such other medium as the parties may agree, containing such
information as the Buyer may require regarding the Loans.  Such tape shall be provided to Buyer by Seller no later than two business days after the Servicing Transfer Date.
 
	  
 	  
 
	 18.
 	 Entire Agreement.  This Agreement contains the entire agreement between the parties hereto, supersedes and terminates any prior agreements between the parties with
respect to the matters contained herein and cannot be modified in any respect except by an amendment in writing signed both parties.  All notices under this Agreement shall be in writing and directed to the parties at the addresses shown in
Section 30.  All provisions of any terminated agreement which by such agreement’s terms survive termination shall so survive.
 
	  
 	  
 
	 19.
 	 Servicing Released;  All Loans sold by Seller under this Agreement shall be sold on a servicing-released basis.  Except as otherwise provided in this Agreement
including without limitation, Section 17, as of the Closing Date, all rights, obligations, liabilities and responsibilities with respect to the servicing of such Loan shall pass to Buyer, and Seller shall be discharged from all liabilities arising
from such servicing from and after the Closing Date. Seller and Buyer agree that , will be the transferee servicer for all Loans.
 
	  
 	  
 
	 20.
 	 “Goodbye Letter”.  No later than five (5) days after the Closing Date, send to all Obligors, via first class mail, postage prepaid, a letter, the text and
format of which shall have been pre-approved by Buyer, which shall advise Obligors that their account has been sold to Buyer.  The letter shall contain such other information as Buyer may reasonably request.
 
	  
 	  
 
	 21.
 	 Tax Reporting.  Buyer and Seller shall be separately responsible for filing and distributing any required federal and state income tax information returns, including Form
1098, for all amounts paid to each respectively in connection with the Loans in 2002.  Each shall be responsible for such filing and distribution only as to payments it posts to any Loan account.  Such filing and distribution for payments
received by Seller and forwarded to Buyer for posting shall be the obligation of the Buyer.
 
	  
 	  
 
	 22.
 	 Severability.  The invalidity of any portion of this Agreement shall in no way affect the balance thereof.  Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall be ineffective to the extent of such prohibition or unenforceability in such jurisdiction but shall not invalidate or render unenforceable the remaining provisions of this Agreement in such jurisdiction, and
shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, the parties hereto waive any provision of law which prohibits or renders unenforceable any provision
hereof.
 
	  
 	  
 
	 23.
 	 Additional Documents.  Each party shall execute and deliver or cause to be executed and delivered such additional instruments, assignments, endorsements, papers, and
documents as the other party may reasonably request for the purpose of carrying out this Agreement.
 

 18
 

	 24.
 	 Counterparts.  This Agreement may be executed in multiple counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall together
constitute one and the same agreement.
 
	  
 	  
 
	 25.
 	 GOVERNING LAW AND CONSENT TO JURISDICTION:  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF  NEW YORK WITHOUT REGARD TO INTERNAL CONFLICTS OF
LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
 
	  
 	  
 
	 26.
 	 Successors and Assigns:  This Agreement shall inure to the benefit of and be binding upon Seller and its assigns, and Buyer and its assigns, provided however that Seller
may not assign this Agreement without the prior written consent of Buyer.
 
	  
 	  
 
	 27.
 	 Confidentiality.  Buyer and Seller acknowledge that, in the course of the performance of this Agreement, certain information (“Information”) will be disclosed
by one party, to the other party, which Information the parties agree shall be treated as confidential.  Information shall mean the negotiation, existence and terms of this Agreement and the financial information of the parties.  Each
party agrees, as receiving party, to maintain the confidentiality of such Information, including the negotiation, existence and terms of this Agreement and the financial information of the parties and not to disclose such information except as
expressly permitted by this Agreement
 
	  
 	  
 
	  
 	 Buyer and Seller shall be permitted to disclose such Information (i) to the extent necessary to perform their respective obligations under this Agreement, to their respective
accounting, legal, financial, and marketing advisors and employees, who shall likewise be bound hereby, and (ii) as required by law or by any governmental regulatory authority, provided that, to the extent practicable, they will notify the other
party prior to any such disclosure and will provide the other party an opportunity to seek such appropriate exemptions or protective orders as may be available.  Buyer and Seller further acknowledge that damages at law may not provide an
adequate remedy for breach of this provision and that, therefore, in addition to such damages as may be available at law, the party shall be entitled to equitable relief, including injunction, in the event of breach of this provision by the
breaching party.  Buyer and Seller agree not to furnish, transfer, sell or indirectly provide any list of Obligors to any other party, except as necessary to perform under this Agreement or to service the Loans or other loans of the Obligors
held by Seller.
 
	  
 	  
 
	 28.
 	 Force Majeure: Notwithstanding any commitment by Buyer to purchase any Loan(s), Buyer shall not be obligated to purchase any Loan(s) Buyer is prevented or restricted from
purchasing because of matters beyond its control such as, but not limited to, circumstances resulting from changes in law or regulation, acts of God, outbreak of war hostilities, declared or undeclared, civil disruption and bank failure.

	  
 	  
 
	 29.
 	 Notice of Claim:  Buyer will promptly notify Seller in writing when Buyer becomes aware of any litigation or claims against Seller or any circumstances which, in any such
case, may affect any of the Loans sold by Seller to Buyer.
 

 19
 
 

	 30.
 	 Notices.  Any notice to be given or other documents to be delivered by any party to the other party may be delivered in person to such party, or may be
deposited in the United States certified mail, return receipt requested, with postage thereon fully prepaid and addressed to the party for whom intended at the address shown below:
 
	  
 	  
 
	  
 	                TO BUYER:
 	  
 	                TO SELLER:
 	  
 
	  
 	 American General Finance, Inc.
 	  
 	 First Community Finance. Inc.
 	  
 
	  
 	 601 N.W. Second Street
 	  
 	 5425 Robin Hood Road
 	  
 
	  
 	 Evansville, Indiana 47708
 	  
 	 Norfolk, VA  23513
 	  
 
	  
 	 Attention: General Counsel
 	  
 	 Attention: G. Kent Brooks
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 With a copy to:
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 John M. Paris, Jr., Esq.
 	  
 
	  
 	  
 	  
 	 Williams Mullen
 	  
 
	  
 	  
 	  
 	 900 One Columbus Center
 	  
 
	  
 	  
 	  
 	 Virginia Beach, Virginia 23462
 	  
 
	  
 	  
 	  
 	  
 	  
 
	 If to Guarantor, at the address after its signature.
 
	  
 
	  
 	 Any party to this Agreement may, from time to time by written notice to the other, designate a different address which shall be substituted for the one above. 
Notices sent by certified mail shall be deemed effective when receipted for.
 
	  
 	  
 
	 31.
 	 Parties Costs:  Except as is otherwise specifically provided in this Agreement, regardless of whether the closing takes place or whether this Agreement is
terminated, all parties shall pay their own cost and expenses in connection with this Agreement and the transactions contemplated hereby, including, but not by way of limitation, all regulatory fees, attorneys’ fees, accounting fees and other
expenses.
 
	  
 	  
 
	 32.
 	 Modification of Obligations:  Buyer may, without any notice to Seller, extend, compromise, renew, release, change, modify, adjust or alter, by operation of
law or otherwise, any of the obligations of the Obligors or other persons obligated under a Loan without releasing or otherwise affecting the obligations of Seller under this Agreement, or with respect to any Loan subject to this Agreement, except
to the extent that Buyer’s extension, compromise, release, change, modification, adjustment, or alteration affects Seller’s ability to collect the Loan or realize on the security of the collateral, but then only to the extent such action
has such effect.
 
	  
 	  
 
	 33.
 	 Advertising:  Seller shall not engage in any form of advertising whatsoever utilizing either the name of the Buyer or any subsidiaries or affiliates of
Buyer.
 
	  
 	  
 
	 34.
 	 Brokers:  Seller and Buyer each represent and warrant to the other that there are not currently and will not in the future be any claims for brokerage
commissions or finder’s fees in connection with
 

 20
 
 

	  
 	 the transactions contemplated by this Agreement resulting from any action taken by it for which the other party will be responsible.
 
	  
 	  
 
	 35.
 	 GUARANTY:  TFC Enterprises, Inc.  (“Guarantor”) unconditionally guarantees the payment when due of any and all indebtedness (collectively, the
“Obligations and Liabilities”) and performance of Seller under this Agreement. If any or all Obligations and Liabilities of the Seller hereunder are not timely satisfied by the Seller, the Guarantor unconditionally promises pay to the
Buyer, without deduction of any kind, in lawful money of the United States, the amount of the Obligations and Liabilities. The Guarantor acknowledges that a separate action may be brought and prosecuted against it whether or not action is brought
against the Seller, and whether or not the Seller is joined in any such actions. The Guarantor authorizes the Buyer, without notice or demand, and without affecting or impairing the liability of Guarantor in this Section 35, from time to time, in
accordance with the Agreement or by mutual agreement with the Seller to renew, compromise, extend, increase, accelerate or otherwise change the time for payment of, or otherwise change the terms of, any indebtedness of the Seller or to modify the
terms and time for performance of any or all Obligations and Liabilities under this Agreement. The Guarantor waives notice of dishonor, notice of acceptance, and any right to require Buyer to proceed against the Buyer or to pursue any other remedy
in Buyer’s power whatsoever.  Until all of the Obligations and Liabilities shall have been fully performed, and until all periods under applicable law to contest preferential or fraudulent payments have expired, Guarantor waives all rights
of contribution and subrogation. This Guaranty is for the benefit of the Buyer, its successors and permitted assigns. In the event there is a change in control of the Guarantor while this guaranty is in force and effect, the surviving entity shall
expressly assume this guaranty. Guarantor or Seller shall provide the financials of the surviving entity to Buyer at least 15days prior to such change in control. If the net book value of the surviving entity is less than one hundred and fifty
percent (150%) of the Purchase Price, Buyer must give its consent for the effective assumption of the guaranty by the surviving entity. Such consent shall not be unreasonable withheld or delayed.  If Buyer does not consent, then prior to, or
contemporaneous with such change in control, the Guarantor shall establish either a) an irrevocable letter of credit or an escrow account, in either case in an amount equal to the Purchase Price, and by or with an institution whose accounts are
insured by the Federal Deposit Insurance Corporation. The terms of such letter of credit or escrow account shall include, among any other provisions, that Buyer may draw an amount equal to any Loss or Claim it may have upon presentation to such bank
of a certification by Buyer that it has suffered such Loss or Claim with reasonable detail of the occurrence giving rise to such Loss or Claim. The term of such arrangement shall be equal to the time periods of the indemnification by Seller
contained in Section 11 of this Agreement. For the purposes of this provision, the term “change in control” shall mean: (i) the sale of all or substantially all the assets of the Guarantor; or (ii) the direct or indirect acquisition by any
person (or group of persons acting in concert) of ownership or control of a controlling interest in the voting securities (or the power to vote the same) of the Guarantor.
 
	  
 	  
 
	 [Remainder of page intentionally blank – signature page follows]
 

 21
 
 

            IN WITNESS WHEREOF, each party has caused its corporate seal to be affixed hereto and this instrument to be signed in
its corporate name on its behalf by its proper officials duly authorized.

	  
 	  
 	 AMERICAN GENERAL FINANCE, INC.,  Buyer
 
	  
 	  
 	  
 
	 Attest:
 	  
 	 BY:        /s/ Ben D. Hendrix
 	  
 
	  
 	  
 	  
 	 
 	  
 
	/s/ Keven Wilson 	  
 	 NAME:  Ben D. Hendrix
 	  
 
	 
 	  
 	 TITLE:   Executive Vice President 
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 First Community Finance, Inc., Seller 
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 
	 Attest:
 	  
 	 BY:      /s/ Robert S. Raley, Jr.
 	  
 
	  
 	  
 	  
 	 
 	  
 
	/s/ Ronald G. Tray 	  
 	 NAME: Robert S. Raley, Jr.
 	  
 
	 
 	  
 	 TITLE:  Executive Vice President, Chairman
 
	  
 	  
 	  
 	  	  
 
	  
 	  
 	  
 	  
 
	 Solely for the Guaranty contained in Section 35:
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 TFC Enterprises, Inc., Guarantor
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 
	 Attest:
 	  
 	 BY:     /s/ Robert S. Raley, Jr. 
 	  
 
	  
 	  
 	  
 	 
 	  
 
	/s/ Ronald G. Tray 	  
 	 NAME: Robert S. Raley, Jr. 
 	  
 
	 
 	  
 	 TITLE:  Chairman, CEO
 	  
 
	  
 	  
 	  
 	  	  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 ADDRESS For Purposes of Notice:
 	  
 
	  
 	  
 	 5425 Robin Hood Road
 	  
 
	  
 	  
 	 Norfolk, VA 23513
 	  
 
	  
 	  
 	 Attn: Ronald G. Tray
 	  
 
	  
 	  
 	  	  
 
	  
 	  
 	  
 	  
 
	 Loan Purchase Sale Agr - Am Gen
 	  
 	  
 	  
 
							

 22
 
 

   CLOSING STATEMENT

	 Seller:        First Community Finance, Inc.
 	  
 
	  
 	 
 	  
 
			

 Buyer:  American General Finance, Inc.

	 1.          Unpaid Balance of Loans as of the Cut Off Date
 	          	 $
 	 20,853,303.56
 	 
	  
 	 	  
 	 
 	 
	 2.          Times 100% of 1, above
 	 	 $
 	 20,853,303.56
 	 
	  
 	 	  
 	 
 	 
	 3.          Accrued but Unpaid Interest
 	 	 $
 	 268,072.78
 	 
	  
 	 	  
 	 
 	 
	 4.          Purchase Price (2 plus 3)
 	 	 $
 	 21,121,376.34
 	 

 The undersigned hereby accept and confirm this Closing Statement on behalf of Seller and Buyer, respectively, this 7th day of November, 2002.

	 Seller:   First Community Finance Inc.
 	  
 	 Buyer:    AMERICAN GENERAL FINANCE, INC.
 
	  
 	  	  
 	  
 
	 By:        /s/ Ronald G. Tray 
 	  
 	 By:         /s/ William E. Randel
 
	  
 	 
 	  
 	  
 	 
 
	 Name:   Ronald G. Tray
 	  
 	 Name:  William E. Randel
 
	 Its:        Chief Financial Officer
 	  
 	 Its:        Vice PresidentCredit Agreement - Final Redacted

Table of Contents

 

 [EXECUTION COPY]
 LOAN AND SECURITY AGREEMENT
 by and
among
 REPTRON ELECTRONICS, INC.,
as Borrower
 and
 CONGRESS FINANCIAL CORPORATION
(FLORIDA),
as Agent
 and
 THE FINANCIAL INSTITUTIONS NAMED HEREIN,
as Lenders
 Dated: October 10, 2002
 

  

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 TABLE OF CONTENTS

		 	 	Page
	SECTION 1. 	 	
DEFINITIONS	1
	 	 	 	 
	SECTION 2.	 	
CREDIT FACILITIES	23
	2.1	 	
Loans	23
	2.2	 	
Letter of Credit Accommodations	24
	2.3	 	
Commitments	28
	 	 	 	 
	SECTION 3.	 	
INTEREST AND FEES	28
	3.1	 	
Interest	28
	3.2	 	
Fees	29
	3.3	 	
Changes in Laws and Increased Costs of Loans	31
	 	 	 	 
	SECTION 4.	 	
CONDITIONS PRECEDENT	33
	4.1	 	
Conditions Precedent to Initial Loans and Letter of Credit Accommodations	33
	4.2	 	
Conditions Precedent to All Loans and Letter of Credit Accommodations	33
	 	 	 	 
	SECTION 5.	 	
GRANT AND PERFECTION OF SECURITY INTEREST	35
	 	 	 	 
	SECTION 6.	 	
COLLECTION AND ADMINISTRATION	40
	6.1	 	
Borrower Loan Account	40
	6.2	 	
Statements	40
	6.3	 	
Collection of Accounts	41
	6.4	 	
Payments	42
	6.5	 	
Authorization to Make Loans	42
	6.6	 	
Use of Proceeds	43
	6.7	 	
Pro Rata Treatment	43
	6.8	 	
Sharing of Payments, Etc	43
	6.9	 	
Settlement Procedures	44
	 	 	 	 
	SECTION 7.	 	
COLLATERAL REPORTING AND COVENANTS	47
	7.1	 	
Collateral Reporting	47
	7.2	 	
Accounts Covenants	47
	7.3	 	
Inventory Covenants	48
	7.4	 	
Equipment and Real Property Covenants	49
	7.5	 	
Power of Attorney	49
	7.6	 	
Right to Cure	50
	7.7	 	
Access to Premises	51
	 	 	 	 
	SECTION 8.	 	
REPRESENTATIONS AND WARRANTIES	51
	8.1	 	
Corporate Existence, Power and Authority	51
	8.2	 	
Name; State of Organization; Chief Executive Office; Collateral Locations	51
	8.3	 	
Financial Statements; No Material Adverse Change	52
	8.4	 	
Priority of Liens; Title to Properties	52
	8.5	 	
Tax Returns	52
	8.6	 	
Litigation	52

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	8.7	 	
Compliance with Other Agreements and Applicable Laws	53
	8.8	 	
Environmental Compliance	53
	8.9	 	
Employee Benefits	54
	 8.10	 	
Bank Accounts	55
	 8.11	 	
Intellectual Property	55
	 8.12	 	
Subsidiaries; Affiliates; Capitalization; Solvency	55
	 8.13	 	
Labor Disputes	56
	 8.14	 	
Restrictions on Subsidiaries	56
	 8.15	 	
Material Contracts	56
	 8.16	 	
Payable Practices	57
	 8.17	 	
Indenture.	57
	 8.18	 	
Accuracy and Completeness of Information	57
	 8.19	 	
Survival of Warranties; Cumulative	57
	 	 	 	 
	SECTION 9.	 	
AFFIRMATIVE AND NEGATIVE COVENANTS	57
	9.1	 	
Maintenance of Existence	57
	9.2	 	
New Collateral Locations	58
	9.3	 	
Compliance with Laws, Regulations, Etc	58
	9.4	 	
Payment of Taxes and Claims	59
	9.5	 	
Insurance	59
	9.6	 	
Financial Statements and Other Information	60
	9.7	 	
Sale of Assets, Consolidation, Merger, Dissolution, Etc.	61
	9.8	 	
Encumbrances	62
	9.9	 	
Indebtedness	64
	 9.10	 	
Loans, Investments, Etc.	66
	 9.11	 	
Dividends and Redemptions	67
	 9.12	 	
Transactions with Affiliates	67
	 9.13	 	
Compliance with ERISA	68
	 9.14	 	
End of Fiscal Years; Fiscal Quarters	68
	 9.16	 	
Limitation of Restrictions Affecting Subsidiaries	68
	 9.17	 	
Minimum EBITDA	68
	 9.18	 	
License Agreements	69
	 9.19	 	
Extension of Maturity Date of Indenture	69
	 9.20	 	
Tampa Sale-Leaseback Transaction	70
	 9.21	 	
After Acquired Real Property	71
	 9.22	 	
Costs and Expenses	72
	 9.23	 	
Further Assurances	72
	 	 	 	 
	SECTION 10.	 	
EVENTS OF DEFAULT AND REMEDIES	73
	10.1	 	
Events of Default	73
	10.2	 	
Remedies	76
	 	 	 	 
	SECTION 11.	 	
JURY TRIAL WAIVER; OTHER WAIVERS	79
	11.1	 	
Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver	79
	11.2	 	
Waiver of Notices	80
	11.3	 	
Amendments and Waivers	81
	11.4	 	
Waiver of Counterclaims	82
	11.5	 	
Indemnification	82

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	SECTION 12.	 	
THE AGENT	83
	12.1	 	
Appointment, Powers and Immunities	83
	12.2	 	
Reliance by Agent	84
	12.3	 	
Events of Default	84
	12.4	 	
Congress in its Individual Capacity	84
	12.5	 	
Indemnification	84
	12.6	 	
Non-Reliance on Agent and Other Lenders	85
	12.7	 	
Failure to Act	85
	12.8	 	
Additional Loans	85
	12.9	 	
Concerning the Collateral and the Related Financing Agreements	86
	 12.10	 	
Field Audit, Examination Reports and other Information; Disclaimer by Lenders	86
	 12.11	 	
Collateral Matters	87
	 12.12	 	
Agency for Perfection	88
	 	 	 	 
	SECTION 13.	 	
TERM OF AGREEMENT; MISCELLANEOUS	90
	13.1	 	
Term	90
	13.2	 	
Interpretative Provisions	91
	13.3	 	
Notices	93
	13.4	 	
Partial Invalidity	93
	13.6	 	
Successors	94
	13.7	 	
Assignments; Participations	95
	13.8	 	
Entire Agreement	97

 
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 INDEX TO
 EXHIBITS AND SCHEDULES
  

	Exhibit A	 	Form of Assignment and Acceptance	 
	Exhibit B	 	Information Certificate	 
	Exhibit C	 	Form of Compliance Certificate	 
	Schedule 1.39	 	Existing Lenders	 
	Schedule 1.40	 	Existing Letters of Credit	 
	Schedule 1.71	 	Permitted Holders	 

  (iv) 

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   LOAN AND SECURITY AGREEMENT
          This Loan and Security Agreement
dated as of October 10, 2002 is entered into by and among REPTRON ELECTRONICS, INC., a Florida corporation (“Borrower”), the financial institutions from time to time parties hereto as lenders, whether by execution of this Agreement or an
Assignment and Acceptance (each individually, a “Lender” and collectively, “Lenders”) and CONGRESS FINANCIAL CORPORATION (FLORIDA), a Florida corporation, in its capacity as agent for Lenders (in such capacity,
“Agent”).
 W I T N E S S E T H:
          WHEREAS, Borrower has requested that Agent and Lenders enter
into financing arrangements with Borrower pursuant to which Lenders may make loans and provide other financial accommodations to Borrower; and
          WHEREAS, each
Lender is willing to agree (severally and not jointly) to make such loans and provide such financial accommodations to Borrower on a pro rata basis
according to its Commitment (as defined below) on the terms and conditions set forth herein and Agent is willing to act as agent for Lenders on the terms and conditions set forth herein and the other Financing Agreements;
          NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:
 SECTION 1.      
DEFINITIONS
          For purposes of this Agreement, the following terms shall have the respective meanings given to them
below:
          1.1  “Accounts” shall mean, all present and future rights of Borrower to payment of a monetary obligation, whether or not earned
by performance, which is not evidenced by chattel paper or an instrument, (a) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (b) for services rendered or to be rendered, (c) for a secondary
obligation incurred or to be incurred, or (d) arising out of the use of a credit or charge card or information contained on or for use with the card.
          1.2  “Adjusted Eurodollar Rate” shall mean, with respect to each Interest Period for any Eurodollar Rate Loan, the rate per annum (rounded upwards, if necessary, to the next one-sixteenth (1/16) of one (1%) percent) determined by dividing (a) the Eurodollar Rate for such Interest Period by (b) a percentage equal to: (i) one (1) minus (ii) the Reserve Percentage. For purposes hereof,
“Reserve Percentage” shall mean the reserve percentage, expressed as a 
  

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   decimal, prescribed by any United States or foreign banking authority for determining the reserve requirement which is or would be applicable to deposits of United
States dollars in a non-United States or an international banking office of Reference Bank used to fund a Eurodollar Rate Loan or any Eurodollar Rate Loan made with the proceeds of such deposit, whether or not the Reference Bank actually holds or
has made any such deposits or loans. The Adjusted Eurodollar Rate shall be adjusted on and as of the effective day of any change in the Reserve Percentage.
          1.3  “Affiliate” shall mean, with respect to a specified Person, any other Person which directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with such Person,
and without limiting the generality of the foregoing, includes (i) any Person which beneficially owns or holds fifteen (15%) percent or more of any class of Voting Stock of such Person or other equity interests in such Person, (a) any
Person of which such Person beneficially owns or holds fifteen (15%) percent or more of any class of Voting Stock or in which such Person beneficially owns or holds fifteen (15%) percent or more of the equity interests and (b) any director or
executive officer of such Person. For the purposes of this definition, the term “control” (including with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Stock, by agreement or otherwise.
          1.4  “Agent” shall mean Congress Financial Corporation (Florida), in its capacity as agent on behalf of Lenders pursuant to the terms hereof and any
replacement or successor agent hereunder.
          1.5  “Agent Payment Account” shall mean account no. 5000 0000 30334 of Agent at Wachovia Bank,
National Association or such other account of Agent as Agent may from time to time designate to Borrower as the Agent Payment Account for purposes of this Agreement and the other Financing Agreements.
          1.6  “Applicable Margin” shall mean, at any time, as to the Interest Rate for Prime Rate Loans and the Interest Rate for Eurodollar Rate Loans, the
lower applicable percentage (on a per annum basis) set forth below set forth opposite either the Quarterly Average Excess Availability for the immediately preceding fiscal quarter or the Leverage Ratio as of the last day of the immediately preceding
fiscal quarter (which ratio for this purpose shall be calculated based on the four (4) immediately preceding fiscal quarters):

		Quarterly Average
Excess Availability	Leverage Ratio	Applicable
Prime Rate
Margin	Applicable
Eurodollar
Rate Margin
	 	 	 	 	 
	(a)	$40,000,000 or more	Less than 2.50 to 1.00	1/2%	2 1/2%

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	(b)	Greater than or equal to
        $30,000,000 and less
        than
$40,000,000 	Greater than 2.50 to 1.00 but equal to or less than 3.00 to 1.00	3/4%	2 3/4%
	 	 	 	 	 
	(c)	Greater than or equal to
        $20,000,000 and less
        than
$30,000,000 	Greater than 3.00 to 1.00 but equal to or less than 3.50 to 1.00	1%	3%
	 	 	 	 	 
	(d)	Greater than or equal to
        $10,000,000 and less
        than
$20,000,000	Greater than 3.50 to 1.00 but equal to or less than 4.00 to 1.00	1 1/4%	3 1/4%
	 	 	 	 	 
	(e)	Less than $10,000,000 	Greater than 4.00 to 1.00	1 1/2%	3 1/2%

 
 Provided, that, (i) the Applicable Margin shall be calculated and established once each fiscal quarter (commencing with the fiscal quarter ending on or about December 31, 2002) and shall remain in effect until such date
thereafter as it may be adjusted in accordance with Sections 1.53(b) or 1.53(c) hereof and (ii) the Applicable Margin shall be the lower percentage set forth above based on the Quarterly Average Excess Availability or the Leverage Ratio.

         1.7  “Assignment and Acceptance” shall mean an Assignment and Acceptance substantially in the form of Exhibit A attached hereto (with blanks
appropriately completed) delivered to Agent in connection with an assignment of a Lender’s interest hereunder in accordance with the provisions of Section 13.7 hereof.
          1.8  “Blocked Accounts” shall have the meaning set forth in Section 6.3 hereof.
          1.9  “Borrowing Base” shall mean, at any time, the amount equal to:
                   (a)  the lesser of: 
                            (i)  the amount equal to: (A) eighty-five (85%)
percent of the Net Amount of the Eligible Accounts plus (B) the lesser of (1) the Inventory Loan Limit or (2) the lesser of (x) thirty-five (35%) percent multiplied by the Value of the
Eligible Inventory of Borrower consisting of raw materials or finished goods or (y) eighty-five (85%) percent of the Net Recovery Percentage multiplied by the Value of such Eligible Inventory, or
                            (ii)  the Revolving Loan Limit;

	 	         minus	

  3 

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                      (b)  Reserves.
 For purposes only of applying the Inventory Loan Limit, Agent may treat the then undrawn amounts of outstanding Letter of Credit Accommodations for the purpose of purchasing Eligible Inventory as Revolving Loans to the extent Agent is in
effect basing the issuance of the Letter of Credit Accommodations on the Value of the Eligible Inventory being purchased with such Letter of Credit Accommodations. In determining the actual amounts of such Letter of Credit Accommodations to be so
treated for purposes of the sublimit, the outstanding Revolving Loans and Reserves shall be attributed first to any components of the lending formulas set forth above that are not subject to such sublimit, before being attributed to the components
of the lending formulas subject to such sublimit. 
          1.10  “Business Day” shall mean any day other than a Saturday, Sunday, or other day on
which commercial banks are authorized or required to close under the laws of the State of New York, or the State of North Carolina, and a day on which Agent is open for the transaction of business, except that if a determination of a Business
Day shall relate to any Eurodollar Rate Loans, the term Business Day shall also exclude any day on which banks are closed for dealings in dollar deposits in the London interbank market or other applicable Eurodollar Rate market.
          1.11  “Capital Leases” shall mean, as applied to any Person, any lease of (or any agreement conveying the right to use) any property (whether real,
personal or mixed) by such Person as lessee which in accordance with GAAP, is required to be reflected as a liability on the balance sheet of such Person.
          1.12  “Capital Stock” shall mean, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of such Person’s capital stock or partnership, limited liability
company or other equity interests at any time outstanding, and any and all rights, warrants or options exchangeable for or convertible into such capital stock or other interests (but excluding any debt security that is exchangeable for or
convertible into such capital stock).
          1.13  “Cash Equivalents” shall mean, at any time, (a) any evidence of Indebtedness with a maturity
date of ninety (90) days or less issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof; provided, that, the full faith and credit of the United States of America is pledged in support thereof; (b) certificates of deposit or bankers’ acceptances with a maturity of ninety (90) days or less of any financial
institution that is a member of the Federal Reserve System having combined capital and surplus and undivided profits of not less than $250,000,000; (c) commercial paper (including variable rate demand notes) with a maturity of ninety (90) days or
less issued by a corporation (except an Affiliate of Borrower) organized under the laws of any State of the United States of America or the District of Columbia and rated at least A-1 by Standard & Poor’s Ratings Service, a division of The
McGraw-Hill Companies, Inc. or at least P-1 by Moody’s Investors Service, Inc.; (d) repurchase obligations with a term of not more than thirty (30) days for underlying securities of the types described in clause (a) above entered into with any
financial institution having combined capital and surplus and undivided profits of not less than $250,000,000; (e) repurchase agreements and reverse repurchase agreements relating to marketable direct obligations issued or 
   4 

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   unconditionally guaranteed by the United States of America or issued by any governmental agency thereof and backed by the full faith and credit of the United States of
America, in each case maturing within ninety (90) days or less from the date of acquisition; provided, that, the terms of such agreements comply with the
guidelines set forth in the Federal Financial Agreements of Depository Institutions with Securities Dealers and Others, as adopted by the Comptroller of the Currency on October 31, 1985; and (f) investments in money market funds and mutual funds
which invest substantially all of their assets in securities of the types described in clauses (a) through (e) above.
          1.14  “Change of
Control” shall mean (a) the transfer (in one transaction or a series of transactions) of all or substantially all of the assets of Borrower or any Obligor to any Person or group (as such term is used in Section 13(d)(3) of the Exchange
Act); (b) the liquidation or dissolution of Borrower or any Obligor or the adoption of a plan by the stockholders of Borrower or any Obligor relating to the dissolution or liquidation of Borrower or any Obligor; (c) without the consent of
Agent and Required Lenders, the acquisition by any Person or group (as such term is used in Section 13(d)(3) of the Exchange Act), except for one or more Permitted Holders, of beneficial ownership, directly or indirectly, of a majority of the voting
power of the total outstanding Voting Stock of Borrower or any Obligor or the Board of Directors of Borrower or any Obligor; or (d) during any period of two (2) consecutive years, individuals who at the beginning of such period constituted the
Board of Directors of Borrower or any Obligor (together with any new directors whose nomination for election by the stockholders of Borrower or any Obligor, as the case may be, was approved by a vote of at least sixty-six and two-thirds (66 2/3%) percent of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for
any reason to constitute a majority of the Board of Directors of Borrower or any Obligor then still in office.
          1.15  “Code” shall mean
the Internal Revenue Code of 1986, as the same now exists or may from time to time hereafter be amended, modified, recodified or supplemented, together with all rules, regulations and interpretations thereunder or related thereto.
          1.16  “Collateral” shall have the meaning set forth in Section 5 hereof.
          1.17  “Collateral Access Agreement” shall mean an agreement in writing, in form and substance satisfactory to Agent, from any lessor of premises to
Borrower, or any other person to whom any Collateral is consigned or who has custody, control or possession of any such Collateral or is otherwise the owner or operator of any premises on which any of such Collateral is located, pursuant to which
such lessor, consignee or other person, inter alia, acknowledges the first priority security interest of Agent in such Collateral, agrees to waive any
and all claims such lessor, consignee or other person may, at any time, have against such Collateral, whether for processing, storage or otherwise, and agrees to permit Agent access to, and the right to remain on, the premises of such lessor,
consignee or other person so as to exercise Agent’s rights and remedies and otherwise deal with such Collateral and in the case of any consignee or other person who at any time has custody, control or possession of any Collateral, acknowledges
that it holds and will hold possession of the Collateral for the benefit of Agent and Lenders and agrees to follow all instructions of Agent with respect thereto.
  5 

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            1.18  “Commitment” shall mean, at any time, as to each Lender, the principal amount set forth
below such Lender’s signature on the signatures pages hereto designated as the Commitment or on Schedule 1 to the Assignment and Acceptance Agreement pursuant to which such Lender became a Lender hereunder in accordance with the provisions of
Section 13.7 hereof, as the same may be adjusted from time to time in accordance with the terms hereof; sometimes being collectively referred to herein as “Commitments”.
          1.19  “Congress” shall mean Congress Financial Corporation (Florida), a Florida corporation, in its individual capacity, and its successors and
assigns.
          1.20  “Consolidated Net Income” shall mean, with respect to any Person for any period, the aggregate of the net income (loss) of
such Person and its Subsidiaries, on a consolidated basis, for such period (excluding to the extent included therein any extraordinary or non-recurring gains and extraordinary non-cash charges and including any gains or non-cash charges relating to the Tampa Sale Leaseback Transaction*) after deducting all charges which should be deducted before arriving at the net income (loss) for such period and after deducting the Provision for Taxes
for such period, all as determined in accordance with GAAP; provided, that, (a) the net income of any Person that is not a wholly-owned Subsidiary or that is accounted for by the equity method of accounting shall be included only to the extent
of the amount of dividends or distributions paid or payable to such Person or a wholly-owned Subsidiary of such Person; (b) except to the extent included pursuant to the foregoing clause, the net income of any Person accrued prior to the date
it becomes a wholly-owned Subsidiary of such Person or is merged into or consolidated with such Person or any of its wholly-owned Subsidiaries or that Person’s assets are acquired by such Person or by any of its wholly-owned Subsidiaries shall
be excluded; and (c) the effect of any change in accounting principles adopted by such Person or its Subsidiaries after the date hereof shall be excluded. For the purposes of this definition, net income excludes any gain and non-cash loss (but
not any cash loss) together with any related Provision for Taxes for such gain and non-cash loss (but not any cash loss) realized upon the sale or other disposition of any assets that are not sold in the ordinary course of business (including,
without limitation, dispositions pursuant to sale and leaseback transactions) or of any capital stock of such Person or a Subsidiary of such Person and any net income realized as a result of changes in accounting principles or the application
thereof to such Person.
          1.21  “Credit Facility” shall mean the Loans and Letter of Credit Accommodations provided to or for the benefit
of Borrower pursuant to Sections 2.1 and 2.2 hereof.
          1.22  “Default” shall mean an act, condition or event which with notice or passage
of time or both would constitute an Event of Default.
          1.23  “Defaulting Lender” shall have the meaning set forth in Section 6.10
hereof.
          1.24  “Deposit Account Control Agreement” shall mean an agreement in writing, in form and substance satisfactory to Agent, by and
among Agent, Borrower or the Obligor with a deposit account at any bank and the bank at which such deposit account is at any time maintained which provides that such bank will comply with instructions originated by Agent directing disposition of the
funds in the deposit account without further consent by Borrower or 
 * Portions of this Exhibit have been deleted and filed separately with the Securities and Exchange
Commission pursuant to the Company's request for confidential treatment pursuant to Rule 24b-2 promulgated under the Securities Exchange Act.
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   such Obligor and such other terms and conditions as Agent may require, including as to any such agreement with respect to any Blocked Account, providing that all items
received or deposited in the Blocked Accounts are the property of Agent, that the bank has no lien upon, or right to setoff against, the Blocked Accounts, the items received for deposit therein, or the funds from time to time on deposit therein and
that the bank will wire, or otherwise transfer, in immediately available funds, on a daily basis to the Agent Payment Account all funds received or deposited into the Blocked Accounts.
          1.25  “EBITDA” shall mean, as to any Person, with respect to any period, an amount equal to: (a) the Consolidated Net Income of such Person for such
period, plus (b) depreciation and amortization for such period (to the extent deducted in the computation of Consolidated Net Income of such Person), all in accordance with GAAP, plus (c) Interest Expense for such period (to the extent deducted in
the computation of Consolidated Net Income of such Person), plus (d) the Provision of Taxes for such period (to the extent deducted in the computation of Consolidated Net Income of such Person).
          1.26  “Eligible Accounts” shall mean Accounts created by Borrower which are and continue to be acceptable to Agent based on the criteria set forth
below. In general, Accounts shall be Eligible Accounts if:
                   (a)  such Accounts arise from the
actual and bona fide sale and delivery of goods by such Borrower or rendition of services by such Borrower in the ordinary course of its business
which transactions are completed in accordance with the terms and provisions contained in any documents related thereto;
                   (b)  such Accounts are not unpaid more than the earlier of sixty (60) days after the original due date for
them or ninety (90) days after the date of the original invoice for them;
                   (c)  such Accounts
comply with the terms and conditions contained in Section 7.2(b) of this Agreement;
                   (d)  such
Accounts do not arise from sales on consignment, guaranteed sale, sale and return, sale on approval, or other terms under which payment by the account debtor may be conditional or contingent;
                   (e)  the chief executive office of the account debtor with respect to such Accounts is located in the
United States of America or Canada (provided, that, at any time promptly upon Agent’s request, Borrower shall execute and deliver, or cause to be
executed and delivered, such other agreements, documents and instruments as may be required by Agent to perfect the security interests of Agent in those Accounts of an account debtor with its chief executive office or principal place of business in
Canada in accordance with the applicable laws of the Province of Canada in which such chief executive office or principal place of business is located and take or cause to be taken such other and further actions as Agent may request to enable Agent
as secured party with respect thereto to collect such Accounts under the applicable Federal or Provincial laws of Canada) or, at Agent’s option, if the chief executive office and principal place of business of the account debtor with respect to
such Accounts is located other than in the 
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   United States of America or Canada, then if either: (i) the account debtor has delivered to such Borrower an irrevocable letter of credit issued or confirmed by a
bank satisfactory to Agent and payable only in the United States of America and in U.S. dollars, sufficient to cover such Account, in form and substance satisfactory to Agent and if required by Agent, the original of such letter of credit has been
delivered to Agent or Agent’s agent and the issuer thereof, and such Borrower has complied with the terms of Section 5.2(f) hereof with respect to the assignment of the proceeds of such letter of credit to Agent or naming Agent as transferee
beneficiary thereunder, as Agent may specify, or (ii) such Account is subject to credit insurance payable to Agent issued by an insurer and on terms and in an amount acceptable to Agent, or (iii) such Account is otherwise acceptable in all
respects to Agent (subject to such lending formula with respect thereto as Agent may determine);
                   (f)  such Accounts do not consist of progress billings (such that the obligation of the account debtors with respect to such Accounts is conditioned upon Borrower’s satisfactory completion of any further performance under the
agreement giving rise thereto), bill and hold invoices or retainage invoices, except as to bill and hold invoices, if Agent shall have received an agreement in writing from the account debtor, in form and substance satisfactory to Agent, confirming
the unconditional obligation of the account debtor to take the goods related thereto and pay such invoice; 
                   (g)  the account debtor with respect to such Accounts has not asserted a counterclaim, defense or dispute and does not have, and does not engage in transactions which may give rise to any right of setoff or recoupment against such
Accounts (but the portion of the Accounts of such account debtor in excess of the amount at any time and from time to time owed by such Borrower to such account debtor or claimed owed by such account debtor may be deemed Eligible
Accounts),
                   (h)  there are no facts, events or occurrences which would impair the validity,
enforceability or collectability of such Accounts or reduce the amount payable or delay payment thereunder; 
                   (i)  such Accounts are subject to the first priority, valid and perfected security interest of Agent and any goods giving rise thereto are not, and were not at the time of the sale thereof, subject to any liens except those
permitted in this Agreement (but not including for purposes of this exception (i) any purchase money security interests or liens that may be permitted under this Agreement, or (ii) any other security interests or liens that may have priority over
the security interests of Agent or (iii) any security interests or liens that are not subject to an intercreditor agreement in form and substance satisfactory to Agent between the holder of such security interest or lien and Agent);
                   (j)  neither the account debtor nor any officer or employee of the account debtor with respect to such
Accounts is an officer, employee, agent or other Affiliate of Borrower or any Obligor;
                   (k)  the account debtors with respect to such Accounts are not any foreign government, the United States of America, any State, political subdivision, department, agency 
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   or instrumentality thereof, unless, if the account debtor is the United States of America, any State, political subdivision, department, agency or instrumentality
thereof, upon Agent’s request, the Federal Assignment of Claims Act of 1940, as amended or any similar State or local law, if applicable, has been complied with in a manner satisfactory to Agent; 
                   (l)  there are no proceedings or actions which are threatened or pending against the account debtors with
respect to such Accounts which might result in any material adverse change in any such account debtor’s financial condition (including, without limitation, any bankruptcy, dissolution, liquidation, reorganization or similar proceeding);

                   (m)  such Accounts are not evidenced by or arising under any instrument or chattel
paper;
                   (n)  the aggregate amount of such Accounts owing by a single account debtor do not
constitute more than ten (10%) percent of the aggregate amount of all otherwise Eligible Accounts, provided that, in the case of Accounts owing by
Diebold, Incorporated, such Accounts do not constitute more than eighteen (18%) percent of the aggregate amount of all otherwise Eligible Accounts, provided further that from and after the sale of Borrower’s Reptron Distribution Division as permitted under Section 9.7(b)(v), the aggregate amount of such Accounts
owing by Diebold, Incorporated do not constitute more than twenty-five (25%) percent of the aggregate amount of all otherwise Eligible Accounts; except that, in the event that the short term commercial paper rating of Diebold, Incorporated is less than A or higher by Moody’s Investors Service, Inc. or A-3 or higher by Standard & Poor’s Ratings Service, a division of The McGraw-Hill
Companies, Inc. or Diebold, Incorporated’s long term unsecured debt rating is less than A or higher by Standard & Poor’s Ratings Service, a division of The McGraw-Hill Companies, Inc. or Moody’s Investors Service, Inc., then the
aggregate amount of Accounts owing by Diebold, Incorporated do not constitute more than ten (10%) percent of the aggregate amount of all otherwise Eligible Accounts (but, in each case, with respect to all of the foregoing, the portion of the
Accounts not in excess of the applicable percentages set forth above may be deemed Eligible Accounts);
                   (o)  such Accounts are not owed by an account debtor who has Accounts unpaid more than the earlier of sixty (60) days after the original due date for them or ninety (90) days after the original invoice date for them which constitute
more than fifty (50%) percent of the total Accounts of such account debtor;
                   (p)  the account
debtor is not located in a state requiring the filing of a Notice of Business Activities Report or similar report in order to Borrower to seek judicial enforcement in such State of payment of such Account, unless Borrower has qualified to do
business in such state or has filed a Notice of Business Activities Report or equivalent report for the then current year or such failure to file and inability to seek judicial enforcement is capable of being remedied without any material delay or
material cost; and 
                   (q)  such Accounts are owed by account debtors deemed creditworthy at all
times by Agent.
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   The criteria for Eligible Accounts set forth above may only be changed and any new criteria for Eligible Accounts may only be established by Agent in good faith based
on either: (i) an event, condition or other circumstance arising after the date hereof, or (ii) an event, condition or other circumstance existing on the date hereof to the extent Agent has no written notice thereof from Borrower prior to the date
hereof, in either case under clause (i) or (ii) which adversely affects or could reasonably be expected to adversely affect the Accounts in the good faith determination of Agent. Any Accounts which are not Eligible Accounts shall nevertheless be
part of the Collateral. 
          1.27  “Eligible Inventory” shall mean, Inventory consisting of finished goods held for resale in the ordinary
course of the business of Borrower and raw materials for such finished goods, in each case which are acceptable to Agent based on the criteria set forth below. In general, Eligible Inventory shall not include (a) work-in-process; (b) spare
parts for equipment; (c) packaging and shipping materials; (d) supplies used or consumed in Borrower’s business; (e) Inventory at premises other than those owned or leased and controlled by Borrower; provided, that, (i) as to locations which are leased by Borrower, if Agent shall not have received a Collateral Access Agreement from the owner and operator with
respect to such location, duly authorized, executed and delivered by such owner and operator (or Agent shall determine to accept a Collateral Access Agreement that does not include all required provisions or provisions in the form otherwise required
by Agent), Agent may, at its option, establish such Reserves in respect of amounts at any time due or to become due to the owner and lessor thereof as Agent shall determine, and (ii) as to locations owned and operated by a third person, if
Agent shall not have received a Collateral Access Agreement from the owner and operator with respect to such location, duly authorized, executed and delivered by such owner and operator (or Agent shall determine to accept a Collateral Access
Agreement that does not include all required provisions or provisions in the form otherwise required by Agent), Agent may, at its option, establish such Reserves in respect of amounts at any time due or to become due to the owner and operator
thereof as Agent shall determine, provided that, in addition, if required by Agent, in order for such Inventory at locations owned and operated by a
third person to be Eligible Inventory, Agent shall have received: (A) UCC financing statements between the owner and operator, as consignee or bailee and Borrower, as consignor or bailor, in form and substance satisfactory to Agent, which are duly
assigned to Agent and (B) a written notice to any lender to the owner and operator of the first priority security interest in such Inventory of Agent; (f) Inventory subject to a security interest or lien in favor of any Person other than
Agent except those permitted in this Agreement (but not including for purposes of this exception (i) any purchase money security interests or liens that may be permitted under this Agreement, or (ii) any other security interests or liens that may
have priority over the security interests of Agent or (iii) any security interests or liens that are not subject to an intercreditor agreement in form and substance satisfactory to Agent between the holder of such security interest or lien and
Agent); (g) bill and hold goods; (h) obsolete or slow moving Inventory; (i) Inventory which is not subject to the first priority, valid and perfected security interest of Agent; (j) returned, damaged and/or defective Inventory; (k) Inventory
purchased or sold on consignment and (l) Inventory located outside the United States of America. The criteria for Eligible Inventory set forth above may only be changed and any new criteria for Eligible Inventory may only be established by Agent in
good faith based on either: (i) an event, condition or other circumstance arising after the date hereof, or (ii) an event, 
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   condition or other circumstance existing on the date hereof to the extent Agent has no written notice thereof from Borrower prior to the date hereof, in either case
under clause (i) or (ii) which adversely affects or could reasonably be expected to adversely affect the Inventory in the good faith determination of Agent. Any Inventory which is not Eligible Inventory shall nevertheless be part of the
Collateral.
          1.28  “Eligible Transferee” shall mean (a) any Lender; (b) the parent company of any Lender and/or any Affiliate of such
Lender which is at least fifty (50%) percent owned by such Lender or its parent company; (c) any person (whether a corporation, partnership, trust or otherwise) that is engaged in the business of making, purchasing, holding or otherwise investing in
bank loans and similar extensions of credit in the ordinary course of its business and is administered or managed by a Lender or with respect to any Lender that is a fund which invests in bank loans and similar extensions of credit, any other fund
that invests in bank loans and similar extensions of credit and is managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor, and in each case is approved by Agent; and (d) any other commercial bank,
financial institution or “accredited investor” (as defined in Regulation D under the Securities Act of 1933) approved by Agent, provided, that,
(i) neither Borrower nor any Obligor or any Affiliate of Borrower or any Obligor shall qualify as an Eligible Transferee and (ii) no Person to whom any Indebtedness which is in any way subordinated in right of payment to any other Indebtedness of
Borrower or Obligor shall qualify as an Eligible Transferee, except as Agent may otherwise specifically agree.
          1.29  “Environmental Laws”
shall mean all foreign, Federal, State and local laws (including common law), legislation, rules, codes, licenses, permits (including any conditions imposed therein), authorizations, judicial or administrative decisions, injunctions or agreements
between Borrower and any Governmental Authority, (a) relating to pollution and the protection, preservation or restoration of the environment (including air, water vapor, surface water, ground water, drinking water, drinking water supply, surface
land, subsurface land, plant and animal life or any other natural resource), or to human health or safety, (b) relating to the exposure to, or the use, storage, recycling, treatment, generation, manufacture, processing, distribution,
transportation, handling, labeling, production, release or disposal, or threatened release, of Hazardous Materials, or (c) relating to all laws with regard to recordkeeping, notification, disclosure and reporting requirements respecting
Hazardous Materials. The term “Environmental Laws” includes (i) the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Federal Superfund Amendments and Reauthorization Act, the Federal Water
Pollution Control Act of 1972, the Federal Clean Water Act, the Federal Clean Air Act, the Federal Resource Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments thereto), the Federal Solid Waste Disposal and the
Federal Toxic Substances Control Act, the Federal Insecticide, Fungicide and Rodenticide Act, and the Federal Safe Drinking Water Act of 1974, (ii) applicable state counterparts to such laws and (iii) any common law or equitable doctrine
that may impose liability or obligations for injuries or damages due to, or threatened as a result of, the presence of or exposure to any Hazardous Materials.
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            1.30  “Equipment” shall mean all of Borrower’s now owned and hereafter acquired
equipment, wherever located, including machinery, data processing and computer equipment (whether owned or licensed and including embedded software), vehicles, tools, furniture, fixtures, all attachments, accessions and property now or hereafter
affixed thereto or used in connection therewith, and substitutions and replacements thereof, wherever located.
          1.31  “ERISA” shall mean
the United States Employee Retirement Income Security Act of 1974, together with all rules, regulations and interpretations thereunder or related thereto.
          1.32  “ERISA Affiliate” shall mean any person required to be aggregated with Borrower or any of its Subsidiaries under Sections 414(b), 414(c), 414(m) or 414(o) of the Code.
          1.33  “ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043(c) of ERISA or the regulations issued thereunder,
with respect to a Plan; (b) the adoption of any amendment to a Plan that would require the provision of security pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA; (c) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (d) the filing pursuant to Section 412 of the Code or Section 303(d) of ERISA of an application for a waiver of
the minimum funding standard with respect to any Plan; (e) the occurrence of a “prohibited transaction” with respect to which Borrower or any Obligor, or any of its or their respective Subsidiaries is a “disqualified person”
(within the meaning of Section 4975 of the Code) or with respect to which Borrower, any Obligor or any of its or their respective Subsidiaries could otherwise be liable; (f) a complete or partial withdrawal by Borrower, any Obligor or any ERISA
Affiliate from a Multiemployer Plan or a cessation of operations which is treated as such a withdrawal or notification that a Multiemployer Plan is in reorganization; (g) the filing of a notice of intent to terminate, the treatment of a Plan
amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the Pension Benefit Guaranty Corporation to terminate a Plan; (h) an event or condition which might reasonably be expected to constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (i) the imposition of any liability under Title IV of ERISA, other than the Pension Benefit Guaranty Corporation premiums due but
not delinquent under Section 4007 of ERISA, upon Borrower, any Obligor or any ERISA Affiliate in excess of $25,000 and (j) any other event or condition with respect to a Plan including any Plan subject to Title IV of ERISA maintained, or contributed
to, by any ERISA Affiliate that could reasonably be expected to result in liability of Borrower in excess of $25,000.
          1.34 “Eurodollar Rate”
shall mean with respect to the Interest Period for a Eurodollar Rate Loan, the interest rate per annum equal to the arithmetic average of the rates of interest per annum (rounded upwards, if necessary, to the next one-sixteenth (1/16) of one (1%) percent) at which Reference Bank is offered deposits of United States dollars in the London interbank market (or other Eurodollar Rate market selected by Borrower or and
approved by Agent) on or about 9:00 a.m. (New York time) two (2) Business Days prior to the commencement of such Interest Period in amounts substantially equal to the principal amount of the Eurodollar Rate Loans requested by and available to
Borrower in accordance with this Agreement, with a maturity of comparable duration to the Interest Period selected by or on behalf of Borrower.
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            1.35  “Eurodollar Rate Loans” shall mean any Loans or portion thereof on which interest is
payable based on the Adjusted Eurodollar Rate in accordance with the terms hereof.
          1.36  “Event of Default” shall mean the occurrence or
existence of any event or condition described in Section 10.1 hereof.
          1.37  “Excess Availability” shall mean, the amount, as determined
by Agent, calculated at any date, equal to: (a) the lesser of: (i)  the Borrowing Base and (ii) the Revolving Loan Limit (in each case under (i) or (ii) after giving effect to any Reserves other than any Reserves in respect of Letter of Credit
Accommodations), minus (b) the sum of: (i) the amount of all then outstanding and unpaid Obligations (but not including for this purpose the then outstanding aggregate principal amount of any
outstanding Letter of Credit Accommodations), plus (ii) the amount of all Reserves then established in respect of Letter of Credit Accommodations, plus (iii) the aggregate amount of all then outstanding and unpaid trade payables and other
obligations of Borrower which are outstanding more than sixty (60) days past due as of such time (other than trade payables or other obligations being contested or disputed by Borrower in good faith).
          1.38  “Exchange Act” shall mean the Securities Exchange Act of 1934, together with all rules, regulations and interpretations thereunder or related
thereto.
          1.39  “Existing Lenders” shall mean the lenders to Borrower listed on Schedule 1.39 hereto (and including PNC Bank in its
capacity as agent acting for such lenders) and their respective predecessors, successors and assigns.
          1.40  “Existing Letters of Credit”
shall mean, collectively, the letters of credit issued for the account of Borrower or any Obligor or for which Borrower is otherwise liable listed on Schedule 1.40 hereto, as the same now exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced.
          1.41  “Fee Letter” shall mean the letter agreement, dated of even date herewith, by and between
Borrower and Agent, setting forth certain fees payable by Borrower to Agent for the benefit of itself and Lenders, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.
          1.42  “Financing Agreements” shall mean, collectively, this Agreement and all notes, guarantees, security agreements, deposit account control
agreements, investment property control agreements, intercreditor agreements and all other agreements, documents and instruments now or at any time hereafter executed and/or delivered by Borrower or any Obligor in connection with this
Agreement.
          1.43  “Funded Debt” shall mean, with respect to any Person, any Indebtedness of such Person and its Subsidiaries consisting of
any liability (a) in respect of borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof) or evidenced by bonds, notes, debentures or similar instruments; (b) representing
the balance deferred and unpaid of the purchase price of any property or services (except any such balance that constitutes an account payable to a trade creditor (whether or not an Affiliate) 
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   created, incurred, assumed or guaranteed by such Person in the ordinary course of business of such Person in connection with obtaining goods, materials or services that
is not overdue by more than ninety (90) days, unless the trade payable is being contested in good faith); and (c) all obligations as lessee under leases which have been, or should be, in accordance with GAAP recorded as Capital Leases.
          1.44  “GAAP” shall mean generally accepted accounting principles in the United States of America as in effect from time to time as set forth in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements and pronouncements of the Financial Accounting Standards Board which are applicable to the circumstances as
of the date of determination consistently applied, except that, for purposes of Section 9.17 hereof, GAAP shall be determined on the basis of such principles in effect on the date hereof and consistent with those used in the preparation of the most
recent audited financial statements delivered to Agent prior to the date hereof.
          1.45  “Governmental Authority” shall mean any nation or
government, any state, province, or other political subdivision thereof, 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.
          1.46  “Hazardous Materials” shall mean any hazardous, toxic or dangerous substances, materials and wastes,
including hydrocarbons (including naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive materials, biological substances, polychlorinated biphenyls, pesticides,
herbicides and any other kind and/or type of pollutants or contaminants (including materials which include hazardous constituents), sewage, sludge, industrial slag, solvents and/or any other similar substances, materials, or wastes and including any
other substances, materials or wastes that are or become regulated under any Environmental Law (including any that are or become classified as hazardous or toxic under any Environmental Law).
          1.47  “Indebtedness” shall mean, with respect to any Person, any liability, whether or not contingent, (a) in respect of borrowed money (whether or not
the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof) or evidenced by bonds, notes, debentures or similar instruments; (b) representing the balance deferred and unpaid of the purchase price of any
property or services (except any such balance that constitutes an account payable to a trade creditor (whether or not an Affiliate) created, incurred, assumed or guaranteed by such Person in the ordinary course of business of such Person in
connection with obtaining goods, materials or services that is not overdue by more than ninety (90) days, unless the trade payable is being contested in good faith); (c) all obligations as lessee under leases which have been, or should be, in
accordance with GAAP recorded as Capital Leases; (d) any contractual obligation, contingent or otherwise, of such Person to pay or be liable for the payment of any indebtedness described in this definition of another Person, including, without
limitation, any such indebtedness, directly or indirectly guaranteed, or any agreement to purchase, repurchase, or otherwise acquire such indebtedness, obligation or liability or any security therefor, or to provide funds for the payment or
discharge thereof, or to maintain solvency, assets, level of income, or other financial condition; (e) all obligations with respect to redeemable stock and
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   redemption or repurchase obligations under any Capital Stock or other equity securities issued by such Person; (f) all reimbursement obligations and other liabilities
of such Person with respect to surety bonds (whether bid, performance or otherwise), letters of credit, banker’s acceptances, drafts or similar documents or instruments issued for such Person’s account; (g) all indebtedness of such Person
in respect of indebtedness of another Person for borrowed money or indebtedness of another Person otherwise described in this definition which is secured by any consensual lien, security interest, collateral assignment, conditional sale, mortgage,
deed of trust, or other encumbrance on any asset of such Person, whether or not such obligations, liabilities or indebtedness are assumed by or are a personal liability of such Person, all as of such time; (h) all obligations, liabilities and
indebtedness of such Person (marked to market) arising under swap agreements, cap agreements and collar agreements and other agreements or arrangements designed to protect such person against fluctuations in interest rates or currency or commodity
values; and (i) all obligations owed by such Person under License Agreements with respect to non-refundable, advance or minimum guarantee royalty payments.
          1.48  “Information Certificate” shall mean the Information Certificates of Borrower constituting Exhibit B hereto containing material information with respect to Borrower, its businesses and assets provided by or on behalf
of Borrower to Agent in connection with the preparation of this Agreement and the other Financing Agreements and the financing arrangements provided for herein.
          1.49  “Intellectual Property” shall mean Borrower’s now owned and hereafter arising or acquired: patents, patent rights, patent applications, copyrights, works which are the subject matter of copyrights, copyright
registrations, trademarks, trade names, trade styles, trademark and service mark applications, and licenses and rights to use any of the foregoing; all extensions, renewals, reissues, divisions, continuations, and continuations-in-part of any of the
foregoing; all rights to sue for past, present and future infringement of any of the foregoing; inventions, trade secrets, formulae, processes, compounds, drawings, designs, blueprints, surveys, reports, manuals, and operating standards; goodwill
(including any goodwill associated with any trademark or the license of any trademark); customer and other lists in whatever form maintained; trade secret rights, copyright rights, rights in works of authorship, domain names and domain name
registration; software and contract rights relating to computer software programs, in whatever form created or maintained.
          1.50  “Interest
Expense” shall mean, for any period, as to any Person, as determined in accordance with GAAP, the total interest expense of such Person, whether paid or accrued during such period (including the interest component of Capital Leases for such
period), including, without limitation, discounts in connection with the sale of any Accounts and bank fees, commissions, discounts and other fees and charges owed with respect to letters of credit, banker’s acceptances or similar instruments,
but excluding interest paid in property other than cash and any other interest expense not payable in cash.
          1.51  “Interest Period”
shall mean for any Eurodollar Rate Loan, a period of approximately one (1), two (2), or three (3) months duration as Borrower may elect, the exact duration to be determined in accordance with the customary practice in the applicable
Eurodollar
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   Rate market; provided, that, Borrower may not elect an Interest Period
which will end after the last day of the then-current term of this Agreement.
          1.52  “Interest Rate” shall mean, 
                   (a)  Commencing as of the date of this Agreement and subject to clauses (b) and (c) of this definition
below:
                            (i)  as to Prime Rate Loans, a
rate equal to one and one-quarter (1 1⁄4%) percent per annum in excess of the Prime Rate, 
                            (ii)  as to Eurodollar Rate Loans, a rate equal to
three and one-quarter (3 1⁄4%) percent per annum in excess of the Adjusted Eurodollar Rate (in each case, based on the Eurodollar Rate applicable for the Interest Period selected by Borrower, as in effect two (2) Business Days prior to the
commencement of such Interest Period, whether such rate is higher or lower than any rate previously quoted to Borrower).
                   (b)  Subject to clause (c) of this definition below, effective as of the first (1st) day of the second
month of each fiscal quarter (commencing with the fiscal quarter ending on or about December 31, 2002), the Interest Rate payable by Borrower shall be increased or decreased, as the case may be, (i) as to Prime Rate Loans, to the rate equal to
the Applicable Margin on a per annum basis in excess of the Prime Rate, and (ii) as to Eurodollar Rate Loans, to the rate equal to the Applicable Margin on a per annum basis in excess of the Adjusted Eurodollar Rate.
                   (c)  Notwithstanding anything to the contrary contained in clauses (a) and (b) of this definition, (i) from
the date hereof up to the six (6) month anniversary of the date hereof, the Applicable Margin used to calculate the Interest Rate for Prime Rate Loans shall not be less than one (1%) percent and the Applicable Margin used to calculate the Interest
Rate for Eurodollar Rate Loans shall be not less than three (3%) percent, and (ii) the Applicable Margin otherwise used to calculate the Interest Rate for Prime Rate Loans and Eurodollar Rate Loans shall be the highest percentage set forth in
the definition of the term Applicable Margin for each category of Loans (without regard to the amount of Quarterly Average Excess Availability or the Leverage Ratio) plus two (2%) percent per annum, at Lender’s option, (A) for the period
(1) from and after the effective date of termination or non-renewal hereof until Lender has received full and final payment of all outstanding and unpaid Obligations which are not contingent and cash collateral or letter of credit, as Lender
may specify, in the amounts and on the terms required under Section 12.1 hereof for contingent Obligations (notwithstanding entry of a judgment against Borrower or any Obligor) and (2) from and after the date of the occurrence of an Event of
Default and for so long as such Event of Default is continuing, and (B) on Revolving Loans to Borrower at any time outstanding in excess of the Borrowing Base or the Revolving Loan Limit (whether or not such excess(es) arise or are made with or
without the knowledge or consent of Lender and whether made before or after an Event of Default).
          1.53  “Inventory” shall mean all of
Borrower’s now owned and hereafter existing or acquired goods, wherever located, which (a) are leased by Borrower as lessor; (b) are held by 
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   Borrower for sale or lease or to be furnished under a contract of service; (c) are furnished by Borrower under a contract of service; or (d) consist of raw materials,
work in process, finished goods or materials used or consumed in its business.
          1.54  “Inventory Loan Limit” shall mean, the amount of
$25,000,000; except that, from and after the date that Borrower consummates the sale of Borrower’s Reptron Distribution Division, as permitted
under Section 9.7(b)(v) hereof, the Inventory Loan Limit shall mean the amount of $12,000,000. 
          1.55  “Investment Property Control
Agreement” shall mean an agreement in writing, in form and substance satisfactory to Agent, by and among Agent, Borrower or any Obligor (as the case may be) and any securities intermediary, commodity intermediary or other person who has
custody, control or possession of any investment property of Borrower or such obligor acknowledging that such securities intermediary, commodity intermediary or other person has custody, control or possession of such investment property on behalf of
Agent, that it will comply with entitlement orders originated by Agent with respect to such investment property, or other instructions of Agent, or (as the case may be) apply any value distributed on account of any commodity contract as directed by
Agent, in each case, without the further consent of Borrower or such obligor and including such other terms and conditions as Agent may require.
          1.56  “Lenders” shall mean the financial institutions who are signatories hereto as Lenders and other persons made a party to this Agreement as a Lender in accordance with Section 13.7 hereof, and their respective
successors and assigns; each sometimes being referred to herein individually as a “Lender”.
          1.57  “Letter of Credit
Accommodations” shall mean, collectively, the letters of credit, merchandise purchase or other guaranties which are from time to time either (a) issued or opened by Agent or any Lender for the account of Borrower or any Obligor or (b) with
respect to which Agent or Lenders have agreed to indemnify the issuer or guaranteed to the issuer the performance by Borrower or any Obligor of its obligations to such issuer; sometimes being referred to herein individually as “Letter of Credit
Accommodation”.
          1.58  “Leverage Ratio” shall mean, at any time, the ratio of: (a) the Funded Debt of Borrower as of such time (and
including for this purpose, (i) the Indebtedness of Borrower evidenced by or arising under the Senior Subordinated Notes, (ii) all Funded Debt of Borrower, whether foreign or domestic and (iii) the Obligations) to (b) the EBITDA of Borrower for the
four (4) immediately preceding fiscal quarters of Borrower (treated as a single accounting period). 
          1.59  “License Agreements” shall
have the meaning set forth in Section 8.11 hereof.
          1.60  “Loans” shall mean the Revolving Loans.
          1.61  “Material Adverse Effect” shall mean a material adverse effect on (a) the financial condition, business, performance or operations of Borrower,
or (b) the legality, validity or enforceability of this Agreement or any of the other Financing Agreements; (c) the legality,
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   validity, enforceability, perfection or priority of the security interests and liens of Agent upon the Collateral; (d) the Collateral or its value; (e) the ability
of Borrower to repay the Obligations or of Borrower to perform its obligations under this Agreement or any of the other Financing Agreements as and when to be performed; or (f) the ability of Agent or any Lender to enforce the Obligations or realize
upon the Collateral or otherwise with respect to the rights and remedies of Agent and Lenders under this Agreement or any of the other Financing Agreements.
          1.62  “Material Contract” shall mean (a) any contract or other agreement (other than the Financing Agreements and assembly, distribution or supply agreements entered in the ordinary course of business), written or oral, of
Borrower involving monetary liability of or to any Person in an amount in excess of $1,000,000 in any fiscal year and (b) any other contract or other agreement (other than the Financing Agreements), whether written or oral, to which Borrower is a
party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto would have a Material Adverse Effect.
          1.63  “Maximum Credit” shall mean the amount of $60,000,000.
          1.64  “Mortgages” shall mean, individually and
collectively, each of the following (as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced): the Mortgage, dated of even date herewith, by Borrower in favor of Agent with respect to the
Real Property and related assets of Borrower located in Gaylord, Michigan.
          1.65  “Multiemployer Plan” shall mean a “multi-employer
plan” as defined in Section 4001(a)(3) of ERISA which is or was at any time during the current year or the immediately preceding six (6) years contributed to by Borrower or any ERISA Affiliate.
          1.66  “Net Amount of Eligible Accounts” shall mean, the gross amount of the Eligible Accounts less (a) sales, excise or similar taxes included in the
amount thereof and (b) returns, discounts, claims, credits and allowances of any nature at any time issued, owing, granted, outstanding, available or claimed with respect thereto.
          1.67  “Net Recovery Percentage” shall mean the fraction, expressed as a percentage, (a) the numerator of which is the amount equal to the amount
of the recovery in respect of the Inventory at such time a “net orderly liquidation value” basis as set forth in the most recent acceptable appraisal of Inventory received by Agent in accordance with Section 7.3, net of operating expenses,
liquidation expenses and commissions, and (b) the denominator of which is the applicable original cost of the aggregate amount of the Inventory subject to such appraisal.
          1.68  “Obligations” shall mean any and all Loans, Letter of Credit Accommodations and all other obligations, liabilities and indebtedness of every
kind, nature and description owing by Borrower to Agent or any Lender and/or any of their Affiliates, including principal, interest, charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or
otherwise, arising under this Agreement or any of the other Financing Agreements, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of this Agreement or after the commencement of any
case with respect to Borrower under the United States Bankruptcy Code or any similar statute (including the payment 
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   of interest and other amounts which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or
in part in such case), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, or secured or unsecured.
          1.69  “Obligor” shall mean any guarantor, endorser, acceptor, surety or other person liable on or with respect to the Obligations or who is the owner
of any property which is security for the Obligations, other than Borrower. 
          1.70  “Participant” shall mean any financial institution
that acquires and holds a participation in the interest of any Lender in any of the Loans and Letter of Credit Accommodations in conformity with the provisions of Section 13.7 of this Agreement governing participations.
          1.71  “Permitted Holders” shall mean the persons listed on Schedule 1.71 hereto and their respective successors and assigns.
          1.72  “Person” or “person” shall mean any individual, sole proprietorship, partnership, corporation (including any corporation which elects
subchapter S status under the Code), limited liability company, limited liability partnership, business trust, unincorporated association, joint stock corporation, trust, joint venture or other entity or any government or any agency or
instrumentality or political subdivision thereof.
          1.73    “Plan” means an employee benefit plan (as defined in Section 3(3) of
ERISA) which Borrower or any Obligor sponsors, maintains, or to which it makes, is making, or is obligated to make contributions, or in the case of a Multiemployer Plan has made contributions at any time during the immediately preceding six (6) plan
years.
          1.74    “Prime Rate” shall mean the rate from time to time publicly announced by Wachovia Bank, National Association, or
its successors, as its prime rate, whether or not such announced rate is the best rate available at such bank.
          1.75  “Prime Rate Loans”
shall mean any Loans or portion thereof on which interest is payable based on the Prime Rate in accordance with the terms thereof.
          1.76  “Pro
Rata Share” shall mean as to any Lender, the fraction (expressed as a percentage) the numerator of which is such Lender’s Commitment and the denominator of which is the aggregate amount of all of the Commitments of Lenders, as adjusted
from time to time in accordance with the provisions of Section 13.7 hereof; provided, that, if the Commitments have been terminated, the numerator shall be
the unpaid amount of such Lender’s Loans and its interest in the Letter of Credit Accommodations and the denominator shall be the aggregate amount of all unpaid Loans and Letter of Credit Accommodations. 
          1.77  “Provision for Taxes” shall mean an amount equal to all taxes imposed on or measured by net income, whether Federal, State, Provincial, county or
local, and whether foreign
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   or domestic, that are paid or payable by any Person in respect of any period in accordance with GAAP.
          1.78  “Quarterly Average Excess Availability” shall mean, at any time, the daily average of the Excess Availability of Borrower for the immediately
preceding fiscal quarter as calculated by Lender in good faith.
          1.79  “Real Property” shall mean all now owned and hereafter acquired
real property of Borrower, including leasehold interests, together with all buildings, structures, and other improvements located thereon and all licenses, easements and appurtenances relating thereto, wherever located, including the real property
and related assets more particularly described in the Mortgages.
          1.80  “Receivables” shall mean all of the following now owned or
hereafter arising or acquired property of Borrower: (a) all Accounts; (b) all interest, fees, late charges, penalties, collection fees and other amounts due or to become due or otherwise payable in connection with any Account; (c) all payment
intangibles of Borrower; (d) letters of credit, indemnities, guarantees, security or other deposits and proceeds thereof issued payable to Borrower or otherwise in favor of or delivered to Borrower in connection with any Account; or (e) all other
accounts, contract rights, chattel paper, instruments, notes, general intangibles and other forms of obligations owing to Borrower, whether from the sale and lease of goods or other property, licensing of any property (including Intellectual
Property or other general intangibles), rendition of services or from loans or advances by Borrower or to or for the benefit of any third person (including loans or advances to any Affiliates or Subsidiaries of Borrower) or otherwise associated with
any Accounts, Inventory or general intangibles of Borrower (including, without limitation, choses in action, causes of action, tax refunds, tax refund claims, any funds which may become payable to Borrower in connection with the termination of any
Plan or other employee benefit plan and any other amounts payable to Borrower from any Plan or other employee benefit plan, rights and claims against carriers and shippers, rights to indemnification, business interruption insurance and proceeds
thereof, casualty or any similar types of insurance and any proceeds thereof and proceeds of insurance covering the lives of employees on which Borrower is a beneficiary).
          1.81  “Records” shall mean all of Borrower’s present and future books of account of every kind or nature, purchase and sale agreements, invoices,
ledger cards, bills of lading and other shipping evidence, statements, correspondence, memoranda, credit files and other data relating to the Collateral or any account debtor, together with the tapes, disks, diskettes and other data and software
storage media and devices, file cabinets or containers in or on which the foregoing are stored (including any rights of Borrower with respect to the foregoing maintained with or by any other person).
          1.82  “Reference Bank” shall mean Wachovia Bank, National Association, or such other bank as Agent may from time to time designate.
          1.83  “Register” shall have the meaning set forth in Section 13.7 hereof.
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            1.84  “Reptron Computer Products Division” shall mean the Borrower’s division consisting
of Reptron Computer Products, which division, as of the date hereof, sells memory modules.
          1.85   “Reptron Distribution Division”
shall mean the Borrower’s division consisting of Reptron Distribution, which division, as of the date hereof, sells vendor lines of semiconductors, passive products and electromechanical components and provides custom logistics and supply chain
management services. 
          1.86  “Required Lenders” shall mean, at any time, those Lenders whose Pro Rata Shares aggregate sixty-six and
two-thirds (66 2/3%) percent or more of the aggregate of the Commitments of all Lenders, or if the Commitments shall have been terminated, Lenders to whom at least sixty-six and two-thirds
(66 2/3%) percent of the then outstanding Obligations are owing.
          1.87  “Reserves” shall mean as of any date of determination, such amounts as Agent may from time to time establish and revise in good faith reducing the amount of Revolving Loans and Letter of Credit Accommodations which
would otherwise be available to Borrower under the lending formula(s) provided for herein: (a) to reflect events, conditions, contingencies or risks which, as determined by Agent in good faith, adversely affect, or would have a reasonable likelihood
of adversely affecting, either (i) the Collateral or any other property which is security for the Obligations or its value or (ii) the assets or business of Borrower or any Obligor or (iii) the security interests and other rights of Agent or any
Lender in the Collateral (including the enforceability, perfection and priority thereof) or (b) to reflect Agent’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrower or any Obligor to
Agent is or may have been incomplete, inaccurate or misleading in any material respect or (c) to reflect outstanding Letter of Credit Accommodations as provided in Section 2.2 hereof or (d) in respect of any state of facts which Agent
determines in good faith constitutes a Default or an Event of Default or (e) to reflect any increases from and after the date of this Agreement in the percentage of Inventory on hand in excess of demand or in the percentage of Inventory owned by
Borrower greater than 180 days from the date of purchase, in each case, as a percentage of total Inventory against the respective percentages as set forth in the Inventory appraisal of the Borrower’s Inventory conducted by Dovebid Valuation
Services, Inc., dated August 30, 2002 or to reflect any increase from and after the date of this Agreement in the obsolete and slow moving inventory reserves as set forth on Borrower’s general ledger. Without limiting the generality of the
foregoing, Reserves may be established to reflect that dilution with respect to the Accounts (based on the ratio of the aggregate amount of non-cash reductions in Accounts for any period to the aggregate dollar amount of the sales of Borrower for
such period) as calculated by Agent for any period is or is reasonably anticipated to be greater than five (5%) percent. To the extent Agent may revise the lending formulas used to determine the Borrowing Base or establish new criteria or revise
existing criteria for Eligible Accounts or Eligible Inventory so as to address any circumstances, condition, event or contingency in a manner satisfactory to Agent, Agent shall not establish a Reserve for the same purpose. The amount of any Reserve
established by Agent shall have a reasonable relationship to the event, condition or other matter which is the basis for such reserve as determined by Agent in good faith.
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            1.88  “Revolving Loan Limit” shall mean, at any time, the amount equal to
$60,000,000.
          1.89  “Revolving Loans” shall mean the loans now or hereafter made by or on behalf of any Lender or by Agent for the account
of any Lender on a revolving basis pursuant to the Credit Facility (involving advances, repayments and readvances) as set forth in Section 2.1 hereof.
          1.90  “Senior Subordinated Indenture” shall mean the Indenture dated as of August __, 1997 among Borrower and Reliance Trust Company, as trustee, as the same now exists or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced, pursuant to which Borrower issued the Senior Subordinated Notes on and subject to the terms and conditions set forth therein.
          1.91  “Senior Subordinated Indenture Extension Agreement” shall have the meaning set forth in Section 9.19.
          1.92  “Senior Subordinated Indenture Trustee” shall mean Reliance Trust Company, in its capacity as trustee under the Senior Subordinated Indenture for
the holders of the Senior Subordinated Notes and any successor, replacement or additional trustee under the Senior Subordinated Indenture, and their respective successors and assigns.
          1.93  “Senior Subordinated Notes” shall mean, collectively, the 6 3/4% Convertible
Subordinated Notes due August 1, 2004, pursuant to the Senior Subordinated Indenture, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.
          1.94  “Solvent” shall mean, at any time with respect to any Person, that at such time such Person (a) is able to pay its debts as they mature and
has (and has a reasonable basis to believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry on its business consistent with its practices as of the date hereof, and (b) the assets and properties of such
Person at a fair valuation (and including as assets for this purpose at a fair valuation all rights of subrogation, contribution or indemnification arising pursuant to any guarantees given by such Person) are greater than the Indebtedness of such
Person, and including subordinated and contingent liabilities computed at the amount which, such person has a reasonable basis to believe, represents an amount which can reasonably be expected to become an actual or matured liability (and including
as to contingent liabilities arising pursuant to any guarantee the face amount of such liability as reduced to reflect the probability of it becoming a matured liability).
          1.95  “Special Agent Advances” shall have the meaning set forth in Section 12.11 hereof.
          1.96  “Subsidiary” or “subsidiary” shall mean, with respect to any Person, any corporation, limited liability company, limited liability
partnership or other limited or general partnership, trust, association or other business entity of which an aggregate of at least a majority of the outstanding Capital Stock or other interests entitled to vote in the election of the board of
directors of such corporation (irrespective of whether, at the time, Capital Stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency), managers, trustees or other
controlling persons, or an equivalent 
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   controlling interest therein, of such Person is, at the time, directly or indirectly, owned by such Person and/or one or more subsidiaries of such Person.
          1.97  “Tampa Real Property” shall mean the Borrower’s real property commonly known as 13750 Reptron Boulevard, Tampa, Florida .
          1.98  “Tampa Sale-Leaseback Transaction” shall mean any arrangement with any Person providing for the leasing by Borrower of the Tampa Real Property,
which property has been or is to be sold or transferred by Borrower to such Person in contemplation of such leasing.
          1.99  “UCC” shall
mean the Uniform Commercial Code as in effect in the State of Florida, and any successor statute, as in effect from time to time (except that terms used herein which are defined in the Uniform Commercial Code as in effect in the State of Florida on
the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute except as Agent may otherwise determine). 
          1.100  “Value” shall mean, as determined by Agent in good faith, with respect to Inventory, the lower of (a) cost computed on a first-in first-out basis in accordance with GAAP or (b) market value, provided, that, for purposes of the calculation of the Borrowing Base, (i) the Value of the Inventory shall not include: (A) the portion of the value of Inventory equal to
the profit earned by any Affiliate on the sale thereof to Borrower or (B) write-ups or write-downs in value with respect to currency exchange rates and (ii) notwithstanding anything to the contrary contained herein, the cost of the Inventory
shall be computed in the same manner and consistent with the most recent appraisal of the Inventory received and accepted by Agent prior to the date hereof, if any.
          1.101  “Voting Stock” shall mean with respect to any Person, (a) one (1) or more classes of Capital Stock of such Person having general voting powers to elect at least a majority of the board of directors, managers or
trustees of such Person, irrespective of whether at the time Capital Stock of any other class or classes have or might have voting power by reason of the happening of any contingency, and (b) any Capital Stock of such Person convertible or
exchangeable without restriction at the option of the holder thereof into Capital Stock of such Person described in clause (a) of this definition.
 SECTION
2.      
CREDIT FACILITIES
          2.1  
Loans.
                   (a)  Subject to and upon the terms and
conditions contained herein, each Lender severally (and not jointly) agrees to fund its Pro Rata Share of Revolving Loans to Borrower from time to time in amounts requested by Borrower up to the amount outstanding at any time equal to the
lesser of: (i) the Borrowing Base at such time or (ii) the Revolving Loan Limit.
                   (b)  Agent
may, in its discretion, from time to time, upon not less than five (5) days prior notice to Borrower, reduce the lending formula(s) with respect to Eligible Inventory to the extent that Agent determines in good faith that: (i) the number of
days of the turnover of the 
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   Inventory for any period has adversely changed or (ii) the liquidation value of the Eligible Inventory, or any category thereof, has decreased, including any decrease
attributable to a change in the nature, quality or mix of the Inventory. The amount of any decrease in the lending formulas shall have a reasonable relationship to the event, condition or circumstance which is the basis for such decrease as
determined by Agent in good faith. In determining whether to reduce the lending formula(s), Agent may consider events, conditions, contingencies or risks which are also considered in determining Eligible Accounts, Eligible Inventory or in
establishing Reserves.
                   (c)  Except in Agent’s discretion, with the consent of all
Lenders, or as otherwise provided herein, (i) the aggregate amount of the Loans and the Letter of Credit Accommodations outstanding at any time shall not exceed the Maximum Credit, (ii) the aggregate principal amount of the Revolving Loans and
Letter of Credit Accommodations outstanding at any time to Borrower shall not exceed the lesser of the Borrowing Base or the Revolving Loan Limit, and (iii) the aggregate principal amount of the Revolving Loans outstanding at any time to Borrower
based on the Eligible Inventory shall not exceed the Inventory Loan Limit.
                   (d)  In the event
that the aggregate principal amount of the Revolving Loans and Letter of Credit Accommodations outstanding to Borrower exceed the Borrowing Base or the Revolving Loan Limit of Borrower, or the aggregate principal amount of Revolving Loans and Letter
of Credit Accommodations based on the Eligible Inventory exceed the Inventory Loan Limit, or the aggregate amount of the outstanding Letter of Credit Accommodations exceed the sublimit for Letter of Credit Accommodations set forth in Section 2.2(e),
or the aggregate amount of the Loans and Letter of Credit Accommodations exceed the Maximum Credit, such event shall not limit, waive or otherwise affect any rights of Agent or Lenders in such circumstances or on any future occasions and Borrower
shall, upon demand by Agent, which may be made at any time or from time to time, immediately repay to Agent the entire amount of any such excess(es) for which payment is demanded.
          2.2  
Letter of Credit Accommodations.
                   (a)  Subject
to and upon the terms and conditions contained herein, at the request of Borrower, Agent agrees, for the ratable risk of each Lender according to its Pro Rata Share, to provide or arrange for Letter of Credit Accommodations for the account of
Borrower containing terms and conditions acceptable to Agent and the issuer thereof. Any payments made by or on behalf of Agent or any Lender to any issuer thereof and/or related parties in connection with the Letter of Credit Accommodations
provided to or for the benefit of Borrower shall constitute additional Revolving Loans to Borrower pursuant to this Section 2.
                   (b)  In addition to any charges, fees or expenses charged by any bank or issuer in connection with the
Letter of Credit Accommodations, Borrower shall pay to Agent, for the benefit of Lenders, a letter of credit fee at a rate equal to two and one-half (2 1⁄2%) percent per annum, on the daily outstanding balance of the Letter of Credit
Accommodations for the immediately preceding month (or part thereof), payable in arrears as of the first day of each succeeding month, except that Agent may, and upon the written direction of Required Lenders shall, require Borrower to pay to Agent
for the ratable benefit of Lenders such letter of credit fee, at a rate equal to four and one-half (4 1⁄2%) percent per annum on such daily outstanding balance 
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   for: (i) the period from and after the date of termination hereof until Agent and Lenders have received full and final payment of all Obligations (notwithstanding entry
of a judgment against Borrower) and (ii) the period from and after the date of the occurrence of an Event of Default for so long as such Event of Default is continuing as determined by Agent. Such letter of credit fee shall be calculated on the
basis of a three hundred sixty (360) day year and actual days elapsed and the obligation of Borrower to pay such fee shall survive the termination of this Agreement.
                   (c)  Borrower shall give Agent two (2) Business Days’ prior written notice of Borrower’s request
for the issuance of a Letter of Credit Accommodation. Such notice shall be irrevocable and shall specify the original face amount of the Letter of Credit Accommodation requested, the effective date (which date shall be a Business Day) of issuance of
such requested Letter of Credit Accommodation, whether such Letter of Credit Accommodations may be drawn in a single or in partial draws, the date on which such requested Letter of Credit Accommodation is to expire (which date shall be a Business
Day), the purpose for which such Letter of Credit Accommodation is to be issued, and the beneficiary of the requested Letter of Credit Accommodation. Borrower shall attach to such notice the proposed terms of the Letter of Credit Accommodation.

                   (d)  In addition to being subject to the satisfaction of the applicable conditions precedent
contained in Section 4 hereof and the other terms and conditions contained herein, no Letter of Credit Accommodations shall be available unless each of the following conditions precedent have been satisfied in a manner satisfactory to Agent: (i)
Borrower shall have delivered to the proposed issuer of such Letter of Credit Accommodation at such times and in such manner as such proposed issuer may require, an application, in form and substance satisfactory to such proposed issuer and Agent,
for the issuance of the Letter of Credit Accommodation and such other documents as may be required pursuant to the terms thereof, and the form and terms of the proposed Letter of Credit Accommodation shall be satisfactory to Agent and such proposed
issuer, (ii) as of the date of issuance, no order of any court, arbitrator or other Governmental Authority shall purport by its terms to enjoin or restrain money center banks generally from issuing letters of credit of the type and in the
amount of the proposed Letter of Credit Accommodation, and no law, rule or regulation applicable to money center banks generally and no request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction
over money center banks generally shall prohibit, or request that the proposed issuer of such Letter of Credit Accommodation refrain from, the issuance of letters of credit generally or the issuance of such Letters of Credit Accommodation; and
(iii) the Excess Availability, prior to giving effect to any Reserves with respect to such Letter of Credit Accommodations, on the date of the proposed issuance of any Letter of Credit Accommodations, shall be equal to or greater than: (A) if
the proposed Letter of Credit Accommodation is for the purpose of purchasing Eligible Inventory and the documents of title with respect thereto are consigned to the issuer, the sum of (1) the percentage equal to one hundred (100%) percent minus
the then applicable percentage with respect to Eligible Inventory set forth in the definition of the term Borrowing Base multiplied by the Value of such Eligible Inventory, plus (2) freight, taxes, duty and other amounts which Agent estimates
must be paid in connection with such Inventory upon arrival and for delivery to one of Borrower’s locations for Eligible Inventory within the United States of America and (B) if the proposed Letter of Credit 
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   Accommodation is for any other purpose or the documents of title are not consigned to the issuer in connection with a Letter of Credit Accommodation for the purpose of
purchasing Inventory, an amount equal to one hundred (100%) percent of the face amount thereof and all other commitments and obligations made or incurred by Agent with respect thereto. Effective on the issuance of each Letter of Credit
Accommodation, a Reserve shall be established in the applicable amount set forth in Section 2.2(d)(iii)(A) or Section 2.2(d)(iii)(B).
                   (e)  Except in Agent’s discretion, with the consent of all Lenders, the amount of all outstanding
Letter of Credit Accommodations and all other commitments and obligations made or incurred by Agent or any Lender in connection therewith shall not at any time exceed $10,000,000. 
                   (f)  Borrower shall indemnify and hold Agent and Lenders harmless from and against any and all losses,
claims, damages, liabilities, costs and expenses which Agent or any Lender may suffer or incur in connection with any Letter of Credit Accommodations and any documents, drafts or acceptances relating thereto, including any losses, claims, damages,
liabilities, costs and expenses due to any action taken by any issuer or correspondent with respect to any Letter of Credit Accommodation, except for such losses, claims, damages, liabilities, costs or expenses that are a direct result of the gross
negligence or wilful misconduct of Agent or any Lender as determined pursuant to a final non-appealable order of a court of competent jurisdiction. Borrower assumes all risks with respect to the acts or omissions of the drawer under or beneficiary
of any Letter of Credit Accommodation and for such purposes the drawer or beneficiary shall be deemed such Borrower’s agent. Borrower assumes all risks for, and agrees to pay, all foreign, Federal, State and local taxes, duties and levies
relating to any goods subject to any Letter of Credit Accommodations or any documents, drafts or acceptances thereunder. Borrower hereby releases and holds Agent and Lenders harmless from and against any acts, waivers, errors, delays or omissions,
whether caused by Borrower, by any issuer or correspondent or otherwise with respect to or relating to any Letter of Credit Accommodation, except for the gross negligence or wilful misconduct of Agent or any Lender as determined pursuant to a final,
non-appealable order of a court of competent jurisdiction. The provisions of this Section 2.2(f) shall survive the payment of Obligations and the termination of this Agreement.
                   (g)  In connection with Inventory purchased pursuant to Letter of Credit Accommodations, Borrower shall, at
Agent’s request, instruct all suppliers, carriers, forwarders, customs brokers, warehouses or others receiving or holding cash, checks, Inventory, documents or instruments in which Agent holds a security interest to deliver them to Agent and/or
subject to Agent’s order, and if they shall come into Borrower’s possession, to deliver them, upon Agent’s request, to Agent in their original form. Borrower shall also, at Agent’s request, designate Agent as the consignee on all
bills of lading and other negotiable and non-negotiable documents.
                   (h)  Borrower hereby
irrevocably authorizes and directs any issuer of a Letter of Credit Accommodation to name Borrower as the account party therein and to deliver to Agent all instruments, documents and other writings and property received by issuer pursuant to the
Letter of Credit Accommodations and to accept and rely upon Agent’s instructions and agreements with respect to all matters arising in connection with the Letter of Credit Accommodations or the 
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   applications therefor. Nothing contained herein shall be deemed or construed to grant Borrower any right or authority to pledge the credit of Agent or any Lender in any
manner. Agent and Lenders shall have no liability of any kind with respect to any Letter of Credit Accommodation provided by an issuer other than Agent or any Lender unless Agent has duly executed and delivered to such issuer the application or a
guarantee or indemnification in writing with respect to such Letter of Credit Accommodation. Borrower shall be bound by any reasonable interpretation made in good faith by Agent, or any other issuer or correspondent under or in connection with any
Letter of Credit Accommodation or any documents, drafts or acceptances thereunder, notwithstanding that such interpretation may be inconsistent with any instructions Borrower. Agent shall have the sole and exclusive right and authority to, and
Borrower shall not: (i) at any time an Event of Default exists or has occurred and is continuing, (A) approve or resolve any questions of non-compliance of documents, (B) give any instructions as to acceptance or rejection of any documents or
goods or (C) execute any and all applications for steamship or airway guaranties, indemnities or delivery orders, and (ii) at all times (provided that if no Event of Default has occurred, Agent shall not exercise any of the following unless agreed
to by or on behalf of Borrower), (A) grant any extensions of the maturity of, time of payment for, or time of presentation of, any drafts, acceptances, or documents, and (B) agree to any amendments, renewals, extensions, modifications, changes
or cancellations of any of the terms or conditions of any of the applications, Letter of Credit Accommodations, or documents, drafts or acceptances thereunder or any letters of credit included in the Collateral. Agent may take such actions either in
its own name or in Borrower’s name.
                   (i)  Any rights, remedies, duties or obligations
granted or undertaken by Borrower to any issuer or correspondent in any application for any Letter of Credit Accommodation, or any other agreement in favor of any issuer or correspondent relating to any Letter of Credit Accommodation, shall be
deemed to have been granted or undertaken Borrower to Agent for the ratable benefit of Lenders. Any duties or obligations undertaken by Agent to any issuer or correspondent in any application for any Letter of Credit Accommodation, or any other
agreement by Agent in favor of any issuer or correspondent to the extent relating to any Letter of Credit Accommodation, shall be deemed to have been undertaken by Borrower to Agent for the ratable benefit of Lenders and to apply in all respects to
Borrower.
                   (j)  Immediately upon the issuance or amendment of any Letter of Credit
Accommodation, each Lender shall be deemed to have irrevocably and unconditionally purchased and received, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Pro Rata Share of the liability with
respect to such Letter of Credit Accommodation (including, without limitation, all Obligations with respect thereto).
                   (k)  Borrower is irrevocably and unconditionally obligated, without presentment, demand or protest, to pay
to Agent any amounts paid by an issuer of a Letter of Credit Accommodation with respect to such Letter of Credit Accommodation (whether through the borrowing of Loans in accordance with Section 2.2(a) or otherwise). In the event that Borrower fails
to pay Agent on the date of any payment under a Letter of Credit Accommodation in an amount equal to the amount of such payment, Agent (to the extent it has actual notice thereof) shall promptly notify each Lender of the unreimbursed amount of such
payment and each Lender 
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   agrees, upon one (1) Business Day’s notice, to fund to Agent the purchase of its participation in such Letter of Credit Accommodation in an amount equal to its Pro
Rata Share of the unpaid amount. The obligation of each Lender to deliver to Agent an amount equal to its respective participation pursuant to the foregoing sentence is absolute and unconditional and such remittance shall be made notwithstanding the
occurrence or continuance of any Event of Default, the failure to satisfy any other condition set forth in Section 4 or any other event or circumstance. If such amount is not made available by a Lender when due, Agent shall be entitled to recover
such amount on demand from such Lender with interest thereon, for each day from the date such amount was due until the date such amount is paid to Agent at the interest rate then payable by Borrower in respect of Loans that are Prime Rate Loans as
set forth in Section 3.1(a) hereof.
          2.3   
Commitments.  The aggregate amount of each Lender’s Pro Rata Share of the Loans and Letter of Credit Accommodations shall not exceed the amount of such Lender’s Commitment, as the
same may from time to time be amended in accordance with the provisions hereof.
 SECTION 3.      
INTEREST AND FEES
          3.1  
Interest.
                   (a)  Borrower shall pay to Agent, for
the benefit of Lenders, interest on the outstanding principal amount of the Loans at the Interest Rate. All interest accruing hereunder on and after the date of any Event of Default or termination hereof shall be payable on demand.
                   (b)  Borrower may from time to time request Eurodollar Rate Loans or may request that Prime Rate Loans be
converted to Eurodollar Rate Loans or that any existing Eurodollar Rate Loans continue for an additional Interest Period. Such request from Borrower shall specify the amount of the Eurodollar Rate Loans or the amount of the Prime Rate Loans to be
converted to Eurodollar Rate Loans or the amount of the Eurodollar Rate Loans to be continued (subject to the limits set forth below) and the Interest Period to be applicable to such Eurodollar Rate Loans. Subject to the terms and conditions
contained herein, three (3) Business Days after receipt by Agent of such a request from Borrower, such Eurodollar Rate Loans shall be made or Prime Rate Loans shall be converted to Eurodollar Rate Loans or such Eurodollar Rate Loans shall continue,
as the case may be, provided, that, (i) no Default or Event of Default shall exist or have occurred and be continuing, (ii) no party hereto shall have sent
any notice of termination of this Agreement, (iii) Borrower shall have complied with such customary procedures as are established by Agent and specified by Agent to Borrower for Eurodollar Rate Loans, (iv) no more than four (4) Interest Periods may
be in effect at any one time, (v) the aggregate amount of the Eurodollar Rate Loans must be in an amount not less than $5,000,000 or an integral multiple of $1,000,000 in excess thereof, and (vi) Agent and each Lender shall have determined that
the Interest Period or Adjusted Eurodollar Rate is available to Agent and such Lender and can be readily determined as of the date of the request for such Eurodollar Rate Loan by Borrower. Any request by or on behalf of Borrower for Eurodollar Rate
Loans or to convert Prime Rate Loans to Eurodollar Rate Loans or to continue any existing Eurodollar Rate Loans shall be irrevocable. Notwithstanding anything to the contrary contained herein, Agent and Lenders shall not be required to purchase
United States Dollar deposits in the London interbank market or other 
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   applicable Eurodollar Rate market to fund any Eurodollar Rate Loans, but the provisions hereof shall be deemed to apply as if Agent and Lenders had purchased such
deposits to fund the Eurodollar Rate Loans.
                   (c)  Any Eurodollar Rate Loans shall
automatically convert to Prime Rate Loans upon the last day of the applicable Interest Period, unless Agent has received and approved a request to continue such Eurodollar Rate Loan at least three (3) Business Days prior to such last day in
accordance with the terms hereof. Any Eurodollar Rate Loans shall, at Agent’s option, upon notice by Agent to Borrower, be subsequently converted to Prime Rate Loans in the event that this Agreement shall terminate or not be renewed. Borrower
shall pay to Agent, for the benefit of Lenders, upon demand by Agent (or Agent may, at its option, charge any loan account Borrower) any amounts required to compensate any Lender or Participant for any loss (including loss of anticipated profits),
cost or expense incurred by such person, as a result of the conversion of Eurodollar Rate Loans to Prime Rate Loans pursuant to any of the foregoing.
                   (d)  Interest shall be payable by Borrower to Agent, for the account of Lenders, monthly in arrears not
later than the first day of each calendar month and shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed. The interest rate on non-contingent Obligations (other than Eurodollar Rate Loans) shall increase
or decrease by an amount equal to each increase or decrease in the Prime Rate effective on the first day of the month after any change in such Prime Rate is announced based on the Prime Rate in effect on the last day of the month in which any such
change occurs. In no event shall charges constituting interest payable by Borrower to Agent and Lenders exceed the maximum amount or the rate permitted under any applicable law or regulation, and if any such part or provision of this Agreement is in
contravention of any such law or regulation, such part or provision shall be deemed amended to conform thereto.
          3.2  
Fees. 
                   (a)  Borrower shall pay to Agent, for
its own account, monthly a servicing fee in an amount equal to $4,000 in respect of the services of Agent for each month (or part thereof) while this Agreement remains in effect and for so long thereafter as any Obligations are outstanding. Such fee
shall be fully earned as of and payable in advance on the date hereof and on the first day of each month hereafter.
                   (b)  Borrowers shall pay to Agent for the ratable benefit of Lenders monthly an unused line fee at a rate
equal to the percentage (on a per annum basis) set forth below calculated upon the amount by which the Maximum Credit as then in effect exceeds the average daily principal balance of the outstanding Loans and Letter of Credit Accommodations during
the immediately preceding month (or part thereof) while this Agreement is in effect and for so long thereafter as any Obligations are outstanding. Such fee shall be payable on the first day of each month in arrears. The percentage used for
determining the unused line fee shall be one-half (1⁄2%) percent, provided, that, effective as of the first (1st) day of the second month of each fiscal quarter (commencing with the fiscal quarter ending on or about December 31, 2002), the
percentage used for determining the unused line fee shall be as set forth below if either the Quarterly Average Excess Availability for the immediately preceding fiscal quarter is at or 
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   within the amounts indicated for such percentage or the Leverage Ratio as of the last day of the immediately preceding fiscal quarter (which ratio for this purpose
shall be calculated based on the four (4) immediately preceding fiscal quarters) is at or within the levels indicated for such percentage: 

		Quarterly Average
Excess Availability	 Leverage Ratio
 	 Unused Line
 Fee Percentage
 
	 	 	 	 
	(i)	$40,000,000 or more	Less than 2.50 to 1.00	3/8%
	 	 	 	 
	(ii)	Greater than or equal
    to $30,000,000 and less
    than $40,000,000 	Greater than 2.50 to 1.00
but equal to or less than
3.00 to 1.00	3/8%
	 	 	 	 
	(iii)	Greater than or equal
    to $20,000,000 and less
    than $30,000,000 	Greater than 3.00 to 1.00
but equal to or less than
3.50 to 1.00	3/8%

 
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	 (iv)	Greater than or equal to
    $10,000,000 and less than
    $20,000,000	Greater than 3.50 to 1.00
but equal to or less than
4.00 to 1.00	1/2%
	 	 	 	 
	(v)	Less than $10,000,000	Greater than 4.00 to 1.00	1/2%

 
 provided, that, (A) the unused line fee percentage shall be
calculated and established once each fiscal quarter (commencing with the fiscal quarter ending on or about December 31, 2002) and (B) the unused line fee percentage shall be the lower applicable percentage set forth above opposite either the
Quarterly Average Excess Availability or the Leverage Ratio.
                   (c)  Borrower agrees to pay to
Agent the other fees and amounts set forth in the Fee Letter in the amounts and at the times specified therein.
          3.3  
Changes in Laws and Increased Costs of Loans.
                   (a)  If after the date hereof, either (i) any change in, or in the interpretation of, any law or regulation is introduced, including, without limitation, with respect to reserve requirements, applicable to any Lender or any
banking or financial institution from whom any Lender borrows funds or obtains credit (a “Funding Bank”), or (ii) a Funding Bank or any Lender complies with any future guideline or request from any central bank or other Governmental
Authority or (iii) a Funding Bank or any Lender determines that the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof has or would have the effect described below, or a Funding Bank or any Lender complies with any request or directive regarding
capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, and in the case of any event set forth in this clause (iii), such adoption, change or compliance has or would have the direct or
indirect effect of reducing the rate of return on any Lender’s capital as a consequence of its obligations hereunder to a level below that which such Lender could have achieved but for such adoption, change or compliance (taking into
consideration the Funding Bank’s or Lender’s policies with respect to capital adequacy) by an amount deemed by such Lender to be material, and the result of any of the foregoing events described in clauses (i), (ii) or (iii) is or results
in an increase in the cost to any Lender of funding or maintaining the Loans, the Letter of Credit Accommodations or its Commitment, then Borrower shall from time to time upon demand by Agent pay to Agent additional amounts sufficient to indemnify
Lenders against such increased cost on an after-tax basis (after taking into account applicable deductions and credits in respect of the amount indemnified). A certificate as to the amount of such increased cost shall be submitted to Borrower by
Agent and shall be conclusive, absent manifest error.
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                      (b)  If prior to the first day of any Interest
Period, (i) Agent shall have determined in good faith (which determination shall be conclusive and binding upon Borrower) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the
Eurodollar Rate for such Interest Period, (ii) Agent has received notice from the Required Lenders that the Eurodollar Rate determined or to be determined for such Interest Period will not adequately and fairly reflect the cost to such Lenders of
making or maintaining their Eurodollar Rate Loans during such Interest Period, or (iii) Dollar deposits in the principal amounts of the Eurodollar Rate Loans to which such Interest Period is to be applicable are not generally available in the London
interbank market, Agent shall give telecopy or telephonic notice thereof to Borrower and Lenders as soon as practicable thereafter, and will also give prompt written notice to Borrower when such conditions no longer exist. If such notice is given
(A) any Eurodollar Rate Loans requested to be made on the first day of such Interest Period shall be made as Prime Rate Loans, (B) any Loans that were to have been converted on the first day of such Interest Period to or continued as Eurodollar Rate
Loans shall be converted to or continued as Prime Rate Loans and (C) each outstanding Eurodollar Rate Loan shall be converted, on the last day of the then-current Interest Period thereof, to Prime Rate Loans. Until such notice has been withdrawn by
Agent, no further Eurodollar Rate Loans shall be made or continued as such, nor shall Borrower have the right to convert Prime Rate Loans to Eurodollar Rate Loans.
                   (c)  Notwithstanding any other provision herein, if the adoption of or any change in any law, treaty, rule
or regulation or final, non-appealable determination of an arbitrator or a court or other Governmental Authority or in the interpretation or application thereof occurring after the date hereof shall make it unlawful for Agent or any Lender to make
or maintain Eurodollar Rate Loans as contemplated by this Agreement, (i) Agent or such Lender shall promptly give written notice of such circumstances to Borrower and Agent (which notice shall be withdrawn whenever such circumstances no longer
exist), (ii) the commitment of such Lender hereunder to make Eurodollar Rate Loans, continue Eurodollar Rate Loans as such and convert Prime Rate Loans to Eurodollar Rate Loans shall forthwith be canceled and, until such time as it shall no longer
be unlawful for such Lender to make or maintain Eurodollar Rate Loans, such Lender shall then have a commitment only to make a Prime Rate Loan when a Eurodollar Rate Loan is requested and (iii) such Lender’s Loans then outstanding as Eurodollar
Rate Loans, if any, shall be converted automatically to Prime Rate Loans on the respective last days of the then current Interest Periods with respect to such Loans or within such earlier period as required by law. If any such conversion of a
Eurodollar Rate Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section 3.3(d) below.
                   (d)  Borrower shall indemnify Agent and each Lender and hold Agent and each Lender harmless from any loss
or expense which Agent or such Lender may sustain or incur as a consequence of (i) default by Borrower in making a borrowing of, conversion into or extension of Eurodollar Rate Loans after Borrower has given a notice requesting the same in
accordance with the provisions of this Agreement, (ii) default by Borrower in making any prepayment of a Eurodollar Rate Loan after Borrower has given a notice thereof in accordance with the provisions of this Loan Agreement, and (iii) the making of
a prepayment of Eurodollar Rate Loans on a day which is not the last day of an Interest Period with respect thereto. With respect
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   to Eurodollar Rate Loans, such indemnification may include an amount equal to the excess, if any, of (A) the amount of interest which would have accrued on the amount
so prepaid, or not so borrowed, converted or extended, for the period from the date of such prepayment or of such failure to borrow, convert or extend to the last day of the applicable Interest Period (or, in the case of a failure to borrow, convert
or extend, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Eurodollar Rate Loans provided for herein over (B) the
amount of interest (as determined by Agent or such Lender) which would have accrued to Agent or such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market. This covenant
shall survive the termination or non-renewal of this Agreement and the payment of the Obligations.
 SECTION 4.      
CONDITIONS PRECEDENT.
          4.1  
Conditions Precedent to Initial Loans and Letter of Credit Accommodations. Each of the following is a condition precedent to Agent and Lenders making the initial Loans and providing the initial Letter
of Credit Accommodations hereunder:
                   (a)  Agent shall have received, in form and substance
satisfactory to Agent, all releases, terminations and such other documents as Agent may request to evidence and effectuate the termination by the Existing Lenders of their respective financing arrangements with Borrower and the termination and
release by it or them, as the case may be, of any interest in and to any assets and properties of Borrower, duly authorized, executed and delivered by it or each of them, including, but not limited to, (i) UCC termination statements for all UCC
financing statements previously filed by it or any of them or their predecessors, as secured party and Borrower, as debtor; and (ii) satisfactions and discharges of any mortgages, deeds of trust or deeds to secure debt by Borrower in favor of it or
any of them, in form acceptable for recording with the appropriate Governmental Authority;
                   (b)  all requisite corporate action and proceedings in connection with this Agreement and the other Financing Agreements shall be satisfactory in form and substance to Agent, and Agent shall have received all information and copies
of all documents, including records of requisite corporate action and proceedings which Agent may have requested in connection therewith, such documents where requested by Agent or its counsel to be certified by appropriate corporate officers or
Governmental Authority (and including a copy of the certificate of incorporation of Borrower certified by the Secretary of State (or equivalent Governmental Authority) which shall set forth the same complete corporate name of Borrower as is set
forth herein and such document as shall set forth the organizational identification number of Borrower, if one is issued in its jurisdiction of incorporation);
                   (c)  no material adverse change shall have occurred in the assets, business or prospects of Borrower since
the date of Agent’s latest field examination (not including for this purpose the field review referred to in clause (d) below) and no change or event shall have occurred which would impair the ability of Borrower or any Obligor to perform its
obligations hereunder or under any of the other Financing Agreements to which it is a party or of Agent or any Lender to enforce the Obligations or realize upon the Collateral;
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                      (d)  Agent shall have completed a field review of
the Records and such other information with respect to the Collateral as Agent may require to determine the amount of Loans available to Borrower (including, without limitation, current perpetual inventory records and/or roll-forwards of Accounts
and Inventory through the date of closing and test counts of the Inventory in a manner satisfactory to Agent, together with such supporting documentation as may be necessary or appropriate, and other documents and information that will enable Agent
to accurately identify and verify the Collateral), the results of which in each case shall be satisfactory to Agent, not more than three (3) Business Days prior to the date hereof;
                   (e)  Agent shall have received, in form and substance satisfactory to Agent, all consents, waivers,
acknowledgments and other agreements from third persons which Agent may deem necessary or desirable in order to permit, protect and perfect its security interests in and liens upon the Collateral or to effectuate the provisions or purposes of this
Agreement and the other Financing Agreements, including, without limitation, Collateral Access Agreements by owners and lessors of leased premises of Borrower and by processors and warehouses at which Collateral is located;
                   (f)  the Excess Availability as determined by Agent, as of the date hereof, shall be not less than
$10,000,000 after giving effect to the initial Loans made or to be made and Letter of Credit Accommodations issued or to be issued in connection with the initial transactions hereunder;
                   (g)  Agent shall have received, in form and substance satisfactory to Agent, Deposit Account Control
Agreements by and among Agent, Borrower, as the case and each bank where Borrower has a deposit account, in each case, duly authorized, executed and delivered by such bank and Borrower, as the case may be (or Agent shall be the bank’s customer
with respect to such deposit account as Agent may specify);
                   (h)  Agent shall have received
evidence, in form and substance satisfactory to Agent, that Agent has a valid perfected first priority security interest in all of the Collateral;
                   (i)  Agent shall have received and reviewed lien and judgement search results for the jurisdiction of
incorporation of Borrower, the jurisdiction of the chief executive office of Borrower and all jurisdictions in which assets of Borrower is located, which search results shall be in form and substance satisfactory to Agent;
                   (j)  Agent shall have received, in form and substance satisfactory to Agent, a valid and effective title
insurance policy issued by a company and agent acceptable to Agent: (i) insuring the priority, amount and sufficiency of the Mortgages, (ii) insuring against matters that would be disclosed by surveys and (iii) containing any legally
available endorsements, assurances or affirmative coverage requested by Agent for protection of its interests;
                   (k)  Agent shall have received evidence of insurance and loss payee endorsements required hereunder and under the other Financing Agreements, in form and substance satisfactory to Agent, and certificates of insurance policies and/or
endorsements naming Agent as loss payee;
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                      (l)  Agent shall have received participations
from Participants and/or Commitments in the Loans and in the financing arrangements under this Agreement in such amounts and on terms acceptable to Agent;
                   (m)  Agent shall have received, in form and substance satisfactory to Agent, such opinion letters of
counsel to Borrower with respect to the Financing Agreements and such other matters as Agent may request; and
                   (n)  the other Financing Agreements and all instruments and documents hereunder and thereunder shall have been duly executed and delivered to Agent, in form and substance satisfactory to Agent.
          4.2  
Conditions Precedent to All Loans and Letter of Credit Accommodations.Each of the following is an additional condition precedent to the Loans and/or providing Letter of Credit Accommodations to
Borrower, including the initial Loans and Letter of Credit Accommodations and any future Loans and Letter of Credit Accommodations: 
                   (a)  all representations and warranties contained herein and in the other Financing Agreements shall be
true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date of the making of each such Loan or providing each such Letter of Credit Accommodation and after giving
effect thereto, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date);

                  (b)  no law, regulation, order, judgment or decree of any Governmental Authority shall exist, and no
action, suit, investigation, litigation or proceeding shall be pending or threatened in any court or before any arbitrator or Governmental Authority, which (i) purports to enjoin, prohibit, restrain or otherwise affect (A) the making of the Loans or
providing the Letter of Credit Accommodations, or (B) the consummation of the transactions contemplated pursuant to the terms hereof or the other Financing Agreements or (ii) has or has a reasonable likelihood of having a Material Adverse Effect;
and
                   (c)  no Default or Event of Default shall exist or have occurred and be continuing on and
as of the date of the making of such Loan or providing each such Letter of Credit Accommodation and after giving effect thereto. 
 SECTION 5.      
GRANT AND PERFECTION OF SECURITY INTEREST
          5.1  Grant of Security Interest. To secure payment and performance of all Obligations, Borrower hereby grants to Agent, for itself and the ratable benefit of Lenders, a continuing security interest in, a lien upon, and a right of set off against, and hereby assigns to
Agent, for itself and the ratable benefit of Lenders, as security, all personal and real property and fixtures, and interests in property and fixtures, of Borrower, whether now owned or hereafter acquired or existing, and wherever located (together
with all other collateral security for the Obligations at any time granted to or held or acquired by Agent or any Lender, collectively, the “Collateral”):
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                      (a)  all Accounts;
                   (b)  all general intangibles, including, without limitation, all Intellectual Property; 
                   (c)  all goods, including, without limitation, Inventory and Equipment;
                   (d)  all Real Property and fixtures;
                   (e)  all chattel paper, including, without limitation, all tangible and electronic chattel
paper;
                   (f)  all instruments, including, without limitation, all promissory notes;

                  (g)  all documents;
                   (h)  all deposit accounts;
                   (i)  all letters of credit, banker’s acceptances and similar instruments and including all
letter-of-credit rights;
                   (j)  all supporting obligations and all present and future liens,
security interests, rights, remedies, title and interest in, to and in respect of Receivables and other Collateral, including (i) rights and remedies under or relating to guaranties, contracts of suretyship, letters of credit and credit and other
insurance related to the Collateral, (ii) rights of stoppage in transit, replevin, repossession, reclamation and other rights and remedies of an unpaid vendor, lienor or secured party, (iii) goods described in invoices, documents, contracts or
instruments with respect to, or otherwise representing or evidencing, Receivables or other Collateral, including returned, repossessed and reclaimed goods, and (iv) deposits by and property of account debtors or other persons securing the
obligations of account debtors;
                   (k)  all (i) investment property (including securities,
whether certificated or uncertificated, securities accounts, security entitlements, commodity contracts or commodity accounts) and (ii) monies, credit balances, deposits and other property of Borrower now or hereafter held or received by or in
transit to Agent, any Lender or its Affiliates or at any other depository or other institution from or for the account of Borrower, whether for safekeeping, pledge, custody, transmission, collection or otherwise;
                   (l)  all commercial tort claims, including, without limitation, those identified in the Information
Certificate;
                   (m)  to the extent not otherwise described above, all Receivables; 

                  (n)  all Records; and
                   (o)  all products and proceeds of the foregoing, in any form, including insurance proceeds and all claims
against third parties for loss or damage to or destruction of or other involuntary conversion of any kind or nature of any or all of the other Collateral.
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            5.2  Perfection of Security Interests.
                   (a)  Borrower irrevocably and unconditionally authorizes Agent (or its agent) to file at any time and from
time to time such financing statements with respect to the Collateral naming Agent or its designee as the secured party and Borrower as debtor, as Agent may require, and including any other information with respect to Borrower or otherwise required
by part 5 of Article 9 of the Uniform Commercial Code of such jurisdiction as Agent may determine, together with any amendment and continuations with respect thereto, which authorization shall apply to all financing statements filed on, prior to or
after the date hereof. Borrower hereby ratifies and approves all financing statements naming Agent or its designee as secured party and Borrower, as debtor with respect to the Collateral (and any amendments with respect to such financing statements)
filed by or on behalf of Agent prior to the date hereof and ratifies and confirms the authorization of Agent to file such financing statements (and amendments, if any). Borrower hereby authorizes Agent to adopt on behalf of Borrower any symbol
required for authenticating any electronic filing. In the event that the description of the collateral in any financing statement naming Agent or its designee as the secured party and Borrower as debtor includes assets and properties of Borrower
that do not at any time constitute Collateral, whether hereunder, under any of the other Financing Agreements or otherwise, the filing of such financing statement shall nonetheless be deemed authorized by such Borrower to the extent of the
Collateral included in such description and it shall not render the financing statement ineffective as to any of the Collateral or otherwise affect the financing statement as it applies to any of the Collateral. In no event shall Borrower at any
time file, or permit or cause to be filed, any correction statement or termination statement with respect to any financing statement (or amendment or continuation with respect thereto) naming Agent or its designee as secured party and Borrower as
debtor.
                   (b)  Borrower does not have any chattel paper (whether tangible or electronic) or
instruments as of the date hereof, except as set forth in the Information Certificate. In the event that Borrower shall be entitled to or shall receive any chattel paper or instrument after the date hereof, Borrower shall promptly notify Agent
thereof in writing. Promptly upon the receipt thereof by or on behalf of Borrower (including by any agent or representative), Borrower shall deliver, or cause to be delivered to Agent, all tangible chattel paper and instruments that such Borrower
has or may at any time acquire, accompanied by such instruments of transfer or assignment duly executed in blank as Agent may from time to time specify, in each case except as Agent may otherwise agree. At Agent’s option, Borrower shall, or
Agent may at any time on behalf of Borrower, cause the original of any such instrument or chattel paper to be conspicuously marked in a form and manner acceptable to Agent with the following legend referring to chattel paper or instruments as
applicable: “This [chattel paper][instrument] is subject to the security interest of Congress Financial Corporation and any sale, transfer, assignment or encumbrance of this [chattel paper][instrument] violates the rights of such secured
party.”
                   (c)  In the event that Borrower shall at any time hold or acquire an interest in
any electronic chattel paper or any “transferable record” (as such term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the
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   Uniform Electronic Transactions Act as in effect in any relevant jurisdiction), Borrower shall promptly notify Agent thereof in writing. Promptly upon Agent’s
request, Borrower shall take, or cause to be taken, such actions as Agent may request to give Agent control of such electronic chattel paper under Section 9-105 of the UCC and control of such transferable record under Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as in effect in such jurisdiction.
                   (d)  Borrower does not have any deposit accounts as of the date hereof, except as set forth in the
Information Certificate. Borrower shall not, directly or indirectly, after the date hereof open, establish or maintain any deposit account unless each of the following conditions is satisfied: (i) Agent shall have received not less than five (5)
Business Days prior written notice of the intention of Borrower to open or establish such account which notice shall specify in reasonable detail and specificity acceptable to Agent the name of the account, the owner of the account, the name and
address of the bank at which such account is to be opened or established, the individual at such bank with whom Borrower is dealing and the purpose of the account, (ii) the bank where such account is opened or maintained shall be acceptable to
Agent, and (iii) on or before the opening of such deposit account, Borrower or shall as Agent may specify either (A) deliver to Agent a Deposit Account Control Agreement with respect to such deposit account duly authorized, executed and delivered by
Borrower and the bank at which such deposit account is opened and maintained or (B) arrange for Agent to become the customer of the bank with respect to the deposit account on terms and conditions acceptable to Agent. The terms of this subsection
(d) shall not apply to deposit accounts specifically and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s salaried employees.
                   (e)  Borrower does not own or hold, directly or indirectly, beneficially or as record owner or both, any
investment property, as of the date hereof, or have any investment account, securities account, commodity account or other similar account with any bank or other financial institution or other securities intermediary or commodity intermediary as of
the date hereof, in each case except as set forth in the Information Certificate.
                            (i)  In the event that Borrower shall be entitled to
or shall at any time after the date hereof hold or acquire any certificated securities, Borrower shall promptly endorse, assign and deliver the same to Agent, accompanied by such instruments of transfer or assignment duly executed in blank as Agent
may from time to time specify. If any securities, now or hereafter acquired by Borrower is uncertificated and are issued to Borrower or its nominee directly by the issuer thereof, Borrower shall immediately notify Agent thereof and shall as Agent
may specify, either (A) cause the issuer to agree to comply with instructions from Agent as to such securities, without further consent of Borrower or such nominee, or (B) arrange for Agent to become the registered owner of the securities.

                            (ii)  Borrower shall not, directly or
indirectly, after the date hereof open, establish or maintain any investment account, securities account, commodity account or any other similar account (other than a deposit account) with any securities intermediary or commodity intermediary unless
each of the following conditions is satisfied: (A) Agent shall
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   have received not less than five (5) Business Days prior written notice of the intention of Borrower to open or establish such account which notice shall specify in
reasonable detail and specificity acceptable to Agent the name of the account, the owner of the account, the name and address of the securities intermediary or commodity intermediary at which such account is to be opened or established, the
individual at such intermediary with whom Borrower is dealing and the purpose of the account, (B) the securities intermediary or commodity intermediary (as the case may be) where such account is opened or maintained shall be acceptable to Agent, and
(C) on or before the opening of such investment account, securities account or other similar account with a securities intermediary or commodity intermediary, Borrower shall as Agent may specify either (1) execute and deliver, and cause to be
executed and delivered to Agent, an Investment Property Control Agreement with respect thereto duly authorized, executed and delivered by Borrower and such securities intermediary or commodity intermediary or (2) arrange for Agent to become the
entitlement holder with respect to such investment property on terms and conditions acceptable to Agent.
                   (f)  Borrower is not the beneficiary or otherwise entitled to any right to payment under any letter of credit, banker’s acceptance or similar instrument as of the date hereof, except as set forth in the Information Certificate.
In the event that Borrower shall be entitled to or shall receive any right to payment under any letter of credit, banker’s acceptance or any similar instrument, whether as beneficiary thereof or otherwise after the date hereof, Borrower shall
promptly notify Agent thereof in writing. Borrower shall immediately, as Agent may specify, either (i) deliver, or cause to be delivered to Agent, with respect to any such letter of credit, banker’s acceptance or similar instrument, the written
agreement of the issuer and any other nominated person obligated to make any payment in respect thereof (including any confirming or negotiating bank), in form and substance satisfactory to Agent, consenting to the assignment of the proceeds of the
letter of credit to Agent by Borrower and agreeing to make all payments thereon directly to Agent or as Agent may otherwise direct or (ii) cause Agent to become, at Borrower’s expense, the transferee beneficiary of the letter of credit,
banker’s acceptance or similar instrument (as the case may be).
                   (g)  Borrower does not
have any commercial tort claims as of the date hereof, except as set forth in the Information Certificate. In the event that Borrower shall at any time after the date hereof have any commercial tort claims, Borrower shall promptly notify Agent
thereof in writing, which notice shall (i) set forth in reasonable detail the basis for and nature of such commercial tort claim and (ii) include the express grant by Borrower to Agent of a security interest in such commercial tort claim (and the
proceeds thereof). In the event that such notice does not include such grant of a security interest, the sending thereof by Borrower to Agent shall be deemed to constitute such grant to Agent. Upon the sending of such notice, any commercial tort
claim described therein shall constitute part of the Collateral and shall be deemed included therein. Without limiting the authorization of Agent provided in Section 5.2(a) hereof or otherwise arising by the execution by Borrower of this Agreement
or any of the other Financing Agreements, Agent is hereby irrevocably authorized from time to time and at any time to file such financing statements naming Agent or its designee as secured party and Borrower as debtor, or any amendments to any
financing statements, covering any such commercial tort claim as Collateral. In addition, Borrower shall promptly upon Agent’s request, execute and deliver, or
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   cause to be executed and delivered, to Agent such other agreements, documents and instruments as Agent may require in connection with such commercial tort
claim.
                   (h)  Borrower does not have any goods, documents of title or other Collateral in the
custody, control or possession of a third party as of the date hereof, except as set forth in the Information Certificate and except for goods located in the United States in transit to a location of Borrower permitted herein in the ordinary course
of business of Borrower in the possession of the carrier transporting such goods. In the event that any goods, documents of title or other Collateral are at any time after the date hereof in the custody, control or possession of any other person not
referred to in the Information Certificate or such carriers, Borrower shall promptly notify Agent thereof in writing. Promptly upon Agent’s request, Borrower shall deliver to Agent a Collateral Access Agreement duly authorized, executed and
delivered by such person and Borrower.
                   (i)  Borrower shall take any other actions reasonably
requested by Agent from time to time to cause the attachment, perfection and first priority of, and the ability of Agent to enforce, the security interest of Agent in any and all of the Collateral, including, without limitation, (i) executing,
delivering and, where appropriate, filing financing statements and amendments relating thereto under the UCC or other applicable law, to the extent, if any, that Borrower’s signature thereon is required therefor, (ii) causing Agent’s name
to be noted as secured party on any certificate of title for a titled good if such notation is a condition to attachment, perfection or priority of, or ability of Agent to enforce, the security interest of Agent in such Collateral, (iii) complying
with any provision of any statute, regulation or treaty of the United States as to any Collateral if compliance with such provision is a condition to attachment, perfection or priority of, or ability of Agent to enforce, the security interest of
Agent in such Collateral, (iv) obtaining the consents and approvals of any Governmental Authority or third party, including, without limitation, any consent of any licensor, lessor or other person obligated on Collateral, and taking all actions
required by any earlier versions of the UCC or by other law, as applicable in any relevant jurisdiction.
 SECTION 6.      
COLLECTION AND ADMINISTRATION
          6.1  
Borrower Loan Account. Agent shall maintain one or more loan account(s) on its books in which shall be recorded (a) all Loans, Letter of Credit Accommodations and other Obligations and the Collateral,
(b) all payments made by or on behalf of Borrower and (c) all other appropriate debits and credits as provided in this Agreement, including fees, charges, costs, expenses and interest. All entries in the loan account(s) shall be made in accordance
with Agent’s customary practices as in effect from time to time.
          6.2  
Statements. Agent shall render to Borrower each month a statement setting forth the balance in the Borrower’s loan account(s) maintained by Agent for Borrower pursuant to the provisions of this
Agreement, including principal, interest, fees, costs and expenses. Each such statement shall be subject to subsequent adjustment by Agent but shall, absent manifest errors or omissions, be considered correct and deemed accepted by Borrower and
conclusively binding upon Borrower as an account stated except to the extent that Agent receives a written notice from Borrower of any specific exceptions of Borrower thereto within thirty (30) days after the date
  
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   such statement has been received by Borrower. Until such time as Agent shall have rendered to Borrower a written statement as provided above, the balance in
Borrower’s loan account(s) shall be presumptive evidence of the amounts due and owing to Agent and Lenders by Borrower.
          6.3  
Collection of Accounts.
                   (a)  Borrower shall
establish and maintain, at their expense, blocked accounts or lockboxes and related blocked accounts (in either case, “Blocked Accounts”), as Agent may specify, with such banks as are acceptable to Agent into which Borrower shall promptly
deposit and direct their respective account debtors to directly remit all payments on Receivables and all payments constituting proceeds of Inventory or other Collateral in the identical form in which such payments are made, whether by cash, check
or other manner. Borrower shall deliver, or cause to be delivered to Agent a Deposit Account Control Agreement duly authorized, executed and delivered by each bank where a Blocked Account is maintained as provided in Section 5.2 hereof or at any
time and from time to time Agent may become the bank’s customer with respect to any of the Blocked Accounts and promptly upon Agent’s request, Borrower shall execute and deliver such agreements and documents as Agent may require in
connection therewith. Borrower agrees that all payments made to such Blocked Accounts or other funds received and collected by Agent or any Lender, whether in respect of the Receivables, as proceeds of Inventory or other Collateral or otherwise
shall be treated as payments to Agent and Lenders in respect of the Obligations and therefore shall constitute the property of Agent and Lenders to the extent of the then outstanding Obligations.
                   (b)  For purposes of calculating the amount of the Loans available to Borrower, such payments will be
applied (conditional upon final collection) to the Obligations on the Business Day of receipt by Agent of immediately available funds in the Agent Payment Account provided such payments and notice thereof are received in accordance with Agent’s
usual and customary practices as in effect from time to time and within sufficient time to credit Borrower’s loan account on such day, and if not, then on the next Business Day. For the purposes of calculating interest on the Obligations, such
payments or other funds received will be applied (conditional upon final collection) to the Obligations one (1) Business Day following the date of receipt of immediately available funds by Agent in the Agent Payment Account provided such payments or
other funds and notice thereof are received in accordance with Agent’s usual and customary practices as in effect from time to time and within sufficient time to credit Borrower’s loan account on such day, and if not, then on the next
Business Day. 
                   (c)  Borrower and its shareholders, directors, employees, agents, Subsidiaries
or other Affiliates shall, acting as trustee for Agent, receive, as the property of Agent, any monies, checks, notes, drafts or any other payment relating to and/or proceeds of Accounts or other Collateral which come into their possession or under
their control and immediately upon receipt thereof, shall deposit or cause the same to be deposited in the Blocked Accounts, or remit the same or cause the same to be remitted, in kind, to Agent. In no event shall the same be commingled with
Borrower’s own funds. Borrower agrees to reimburse Agent on demand for any amounts owed or paid to any bank at which a Blocked Account or any other deposit account is established or any other bank or person involved in the transfer of funds to
or from the Blocked Accounts arising out of Agent’s payments to or indemnification of such bank or person.
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   The obligations of Borrower to reimburse Agent for such amounts pursuant to this Section 6.3 shall survive the termination of this Agreement.
          6.4  
Payments. 
                   (a)  All Obligations shall be
payable to the Agent Payment Account as provided in Section 6.3 or such other place as Agent may designate from time to time. Agent shall apply payments received or collected from Borrower or any Obligor or for the account of Borrower (including the
monetary proceeds of collections or of realization upon any Collateral) as follows: first, to pay any fees, indemnities or expense reimbursements then due to Agent and Lenders from Borrower;
second, to pay interest due in respect of any Loans (and including any Special Agent Advances); third, to pay or prepay principal in respect of Special
Agent Advances; fourth, principal due in respect of the Loans; fifth, to pay or prepay any other Obligations whether or not then due, in such order and
manner as Agent determines. Notwithstanding anything to the contrary contained in this Agreement, (i) unless so directed by Borrower, or unless a Default or an Event of Default shall exist or have occurred and be continuing, Agent shall not apply
any payments which it receives to any Eurodollar Rate Loans, except (A) on the expiration date of the Interest Period applicable to any such Eurodollar Rate Loans or (B) in the event that there are no outstanding Prime Rate Loans and (ii) to the
extent Borrower uses any proceeds of the Loans or Letter of Credit Accommodations to acquire rights in or the use of any Collateral or to repay any Indebtedness used to acquire rights in or the use of any Collateral, payments in respect of the
Obligations shall be deemed applied first to the Obligations arising from Loans and Letter of Credit Accommodations that were not used for such purposes and second to the Obligations arising from Loans and Letter of Credit Accommodations the
proceeds of which were used to acquire rights in or the use of any Collateral in the chronological order in which Borrower acquired such rights in or the use of such Collateral.
                   (b)  At Agent’s option, all principal, interest, fees, costs, expenses and other charges provided for
in this Agreement or the other Financing Agreements may be charged directly to the loan account(s) of Borrower maintained by Agent. Borrower shall make all payments to Agent and Lenders on the Obligations free and clear of, and without deduction or
withholding for or on account of, any setoff, counterclaim, defense, duties, taxes, levies, imposts, fees, deductions, withholding, restrictions or conditions of any kind. If after receipt of any payment of, or proceeds of Collateral applied to the
payment of, any of the Obligations, Agent or any Lender is required to surrender or return such payment or proceeds to any Person for any reason, then the Obligations intended to be satisfied by such payment or proceeds shall be reinstated and
continue and this Agreement shall continue in full force and effect as if such payment or proceeds had not been received by Agent or such Lender. Borrower shall be liable to pay to Agent, and does hereby indemnify and hold Agent and Lenders harmless
for the amount of any payments or proceeds surrendered or returned. This Section 6.4(b) shall remain effective notwithstanding any contrary action which may be taken by Agent or any Lender in reliance upon such payment or proceeds. This Section 6.4
shall survive the payment of the Obligations and the termination of this Agreement.
          6.5  
Authorization to Make Loans. Agent and Lenders are authorized to make the Loans and provide the Letter of Credit Accommodations based upon telephonic or other instructions
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   received from anyone purporting to be an officer of Borrower or other authorized person or, at the discretion of Agent, if such Loans are necessary to satisfy any
Obligations. All requests for Loans or Letter of Credit Accommodations hereunder shall specify the date on which the requested advance is to be made or Letter of Credit Accommodations established (which day shall be a Business Day) and the amount of
the requested Loan. Requests received after 11:00 a.m. Miami, Florida time on any day shall be deemed to have been made as of the opening of business on the immediately following Business Day. All Loans and Letter of Credit Accommodations under this
Agreement shall be conclusively presumed to have been made to, and at the request of and for the benefit of, Borrower or when deposited to the credit of Borrower or otherwise disbursed or established in accordance with the instructions of Borrower
or in accordance with the terms and conditions of this Agreement.
          6.6  
Use of Proceeds. Borrower shall use the initial proceeds of the Loans provided by Agent to Borrower hereunder only for: (a) payments to each of the persons listed in the disbursement direction
letter furnished by Borrower to Agent on or about the date hereof and (b) costs, expenses and fees in connection with the preparation, negotiation, execution and delivery of this Agreement and the other Financing Agreements. All other Loans made or
Letter of Credit Accommodations provided to or for the benefit of Borrower pursuant to the provisions hereof shall be used by Borrower only for general operating, working capital and other proper corporate purposes of Borrower not otherwise
prohibited by the terms hereof. None of the proceeds will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security or for the purposes of reducing or retiring any indebtedness which was originally incurred to
purchase or carry any margin security or for any other purpose which might cause any of the Loans to be considered a “purpose credit” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, as
amended.
          6.7  
Pro Rata Treatment. Except to the extent otherwise provided in this Agreement: (a) the making and conversion of Loans shall be made among the Lenders based on their respective Pro Rata Shares as to
the Loans and (b) each payment on account of any Obligations to or for the account of one or more of Lenders in respect of any Obligations due on a particular day shall be allocated among the Lenders entitled to such payments based on their
respective Pro Rata Shares and shall be distributed accordingly.
          6.8  
Sharing of Payments, Etc
                   (a)  Borrower agrees that, in addition to
(and without limitation of) any right of setoff, banker’s lien or counterclaim Agent or any Lender may otherwise have, each Lender shall be entitled, at its option (but subject, as among Agent and Lenders, to the provisions of Section 12.3(b)
hereof), to offset balances held by it for the account of Borrower at any of its offices, in dollars or in any other currency, against any principal of or interest on any Loans owed to such Lender or any other amount payable to such Lender
hereunder, that is not paid when due (regardless of whether such balances are then due to Borrower), in which case it shall promptly notify Borrower and Agent thereof; provided, that, such Lender’s failure to give such notice shall not affect the validity thereof.
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                      (b)  If any Lender (including Agent) shall obtain
from Borrower payment of any principal of or interest on any Loan owing to it or payment of any other amount under this Agreement or any of the other Financing Agreements through the exercise of any right of setoff, banker’s lien or
counterclaim or similar right or otherwise (other than from Agent as provided herein), and, as a result of such payment, such Lender shall have received more than its Pro Rata Share of the principal of the Loans or more than its share of such other
amounts then due hereunder or thereunder by Borrower to such Lender than the percentage thereof received by any other Lender, it shall promptly pay to Agent, for the benefit of Lenders, the amount of such excess and simultaneously purchase from such
other Lenders a participation in the Loans or such other amounts, respectively, owing to such other Lenders (or such interest due thereon, as the case may be) in such amounts, and make such other adjustments from time to time as shall be equitable,
to the end that all Lenders shall share the benefit of such excess payment (net of any expenses that may be incurred by such Lender in obtaining or preserving such excess payment) in accordance with their respective Pro Rata Shares or as otherwise
agreed by Lenders. To such end all Lenders shall make appropriate adjustments among themselves (by the resale of participation sold or otherwise) if such payment is rescinded or must otherwise be restored.
                   (c)  Borrower agrees that any Lender purchasing a participation (or direct interest) as provided in this
Section may exercise, in a manner consistent with this Section, all rights of setoff, banker’s lien, counterclaim or similar rights with respect to such participation as fully as if such Lender were a direct holder of Loans or other amounts (as
the case may be) owing to such Lender in the amount of such participation.
                   (d)  Nothing
contained herein shall require any Lender to exercise any right of setoff, banker’s lien, counterclaims or similar rights or shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such right with respect to
any other Indebtedness or obligation of Borrower. If, under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a setoff to which this Section applies, such Lender shall, to the extent
practicable, assign such rights to Agent for the benefit of Lenders and, in any event, exercise its rights in respect of such secured claim in a manner consistent with the rights of Lenders entitled under this Section to share in the benefits of any
recovery on such secured claim.
          6.9  
Settlement Procedures.
                   (a)  In order to
administer the Credit Facility in an efficient manner and to minimize the transfer of funds between Agent and Lenders, Agent may, at its option, subject to the terms of this Section, make available, on behalf of Lenders, the full amount of the Loans
requested or charged to Borrower’s loan account(s) or otherwise to be advanced by Lenders pursuant to the terms hereof, without requirement of prior notice to Lenders of the proposed Loans.
                   (b)  With respect to all Loans made by Agent on behalf of Lenders as provided in this Section, the amount
of each Lender’s Pro Rata Share of the outstanding Loans shall be computed weekly, and shall be adjusted upward or downward on the basis of the amount of the outstanding Loans as of 5:00 p.m. Miami, Florida time on the Business Day immediately
preceding the date of each settlement computation; provided, that, Agent retains the absolute
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   right at any time or from time to time to make the above described adjustments at intervals more frequent than weekly, but in no event more than twice in any week.
Agent shall deliver to each of the Lenders after the end of each week, or at such lesser period or periods as Agent shall determine, a summary statement of the amount of outstanding Loans for such period (such week or lesser period or periods being
hereinafter referred to as a “Settlement Period”). If the summary statement is sent by Agent and received by a Lender prior to 12:00 p.m. Miami, Florida time, then such Lender shall make the settlement transfer described in this Section by
no later than 3:00 p.m. Miami, Florida time on the same Business Day and if received by a Lender after 12:00 p.m. Miami, Florida time, then such Lender shall make the settlement transfer by not later than 3:00 p.m. Miami, Florida time on the next
Business Day following the date of receipt. If, as of the end of any Settlement Period, the amount of a Lender’s Pro Rata Share of the outstanding Loans is more than such Lender’s Pro Rata Share of the outstanding Loans as of the end of
the previous Settlement Period, then such Lender shall forthwith (but in no event later than the time set forth in the preceding sentence) transfer to Agent by wire transfer in immediately available funds the amount of the increase. Alternatively,
if the amount of a Lender’s Pro Rata Share of the outstanding Loans in any Settlement Period is less than the amount of such Lender’s Pro Rata Share of the outstanding Loans for the previous Settlement Period, Agent shall forthwith
transfer to such Lender by wire transfer in immediately available funds the amount of the decrease. The obligation of each of the Lenders to transfer such funds and effect such settlement shall be irrevocable and unconditional and without recourse
to or warranty by Agent. Agent and each Lender agrees to mark its books and records at the end of each Settlement Period to show at all times the dollar amount of its Pro Rata Share of the outstanding Loans and Letter of Credit Accommodations. Each
Lender shall only be entitled to receive interest on its Pro Rata Share of the Loans to the extent such Loans have been funded by such Lender. Because the Agent on behalf of Lenders may be advancing and/or may be repaid Loans prior to the time when
Lenders will actually advance and/or be repaid such Loans, interest with respect to Loans shall be allocated by Agent in accordance with the amount of Loans actually advanced by and repaid to each Lender and the Agent and shall accrue from and
including the date such Loans are so advanced to but excluding the date such Loans are either repaid by Borrower or actually settled with the applicable Lender as described in this Section.
                   (c)  To the extent that Agent has made any such amounts available and the settlement described above shall
not yet have occurred, upon repayment of any Loans by Borrower, Agent may apply such amounts repaid directly to any amounts made available by Agent pursuant to this Section. In lieu of weekly or more frequent settlements, Agent may, at its option,
at any time require each Lender to provide Agent with immediately available funds representing its Pro Rata Share of each Loan, prior to Agent’s disbursement of such Loan to Borrower. In such event, all Loans under this Agreement shall be made
by the Lenders simultaneously and proportionately to their Pro Rata Shares. No Lender shall be responsible for any default by any other Lender in the other Lender’s obligation to make a Loan requested hereunder nor shall the Commitment of any
Lender be increased or decreased as a result of the default by any other Lender in the other Lender’s obligation to make a Loan hereunder.
                   (d)  If Agent is not funding a particular Loan to Borrower pursuant to this Section on any day, Agent may
assume that each Lender will make available to Agent such Lender’s Pro 
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   Rata Share of the Loan requested or otherwise made on such day and Agent may, in its discretion, but shall not be obligated to, cause a corresponding amount to be made
available to or for the benefit of Borrower on such day. If Agent makes such corresponding amount available to Borrower and such corresponding amount is not in fact made available to Agent by such Lender, Agent shall be entitled to recover such
corresponding amount on demand from such Lender together with interest thereon for each day from the date such payment was due until the date such amount is paid to Agent at the Federal Funds Rate for each day during such period (as published by the
Federal Reserve Bank of New York or at Agent’s option based on the arithmetic mean determined by Agent of the rates for the last transaction in overnight Federal funds arranged prior to 9:00 a.m. (New York City time) on that day by each of the
three leading brokers of Federal funds transactions in New York City selected by Agent) and if such amounts are not paid within three (3) days of Agent’s demand, at the highest Interest Rate provided for in Section 3.1 hereof applicable to
Prime Rate Loans. During the period in which such Lender has not paid such corresponding amount to Agent, notwithstanding anything to the contrary contained in this Agreement or any of the other Financing Agreements, the amount so advanced by Agent
to or for the benefit of Borrower shall, for all purposes hereof, be a Loan made by Agent for its own account. Upon any such failure by a Lender to pay Agent, Agent shall promptly thereafter notify Borrower of such failure and Borrower shall pay
such corresponding amount to Agent for its own account within five (5) Business Days of Borrower’s receipt of such notice. A Lender who fails to pay Agent its Pro Rata Share of any Loans made available by the Agent on such Lender’s behalf,
or any Lender who fails to pay any other amount owing by it to Agent, is a “Defaulting Lender”. Agent shall not be obligated to transfer to a Defaulting Lender any payments received by Agent for the Defaulting Lender’s benefit, nor
shall a Defaulting Lender be entitled to the sharing of any payments hereunder (including any principal, interest or fees). Amounts payable to a Defaulting Lender shall instead be paid to or retained by Agent. Agent may hold and, in its discretion,
relend to Borrower the amount of all such payments received or retained by it for the account of such Defaulting Lender. For purposes of voting or consenting to matters with respect to this Agreement and the other Financing Agreements and
determining Pro Rata Shares, such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero (0). This Section shall remain effective with respect to a Defaulting Lender until such
default is cured. The operation of this Section shall not be construed to increase or otherwise affect the Commitment of any Lender, or relieve or excuse the performance by Borrower or any Obligor of their duties and obligations
hereunder.
                   (e)  Nothing in this Section or elsewhere in this Agreement or the other
Financing Agreements shall be deemed to require Agent to advance funds on behalf of any Lender or to relieve any Lender from its obligation to fulfill its Commitment hereunder or to prejudice any rights that Borrower may have against any Lender as a
result of any default by any Lender hereunder in fulfilling its Commitment.
          6.10  Obligations Several; Independent Nature of
Lenders’ Rights. The obligation of each Lender hereunder is several, and no Lender shall be responsible for the obligation or commitment of any other Lender hereunder. Nothing contained in this Agreement or any of the
other Financing Agreements and no action taken by the Lenders pursuant hereto or thereto shall be deemed to constitute the Lenders to be a partnership, an association, a joint venture or any
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   other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and subject to Section 12.3 hereof, each Lender
shall be entitled to protect and enforce its rights arising out of this Agreement and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.
 SECTION 7.  
COLLATERAL REPORTING AND COVENANTS
          7.1  
Collateral Reporting.
                   (a)     Borrower shall provide Agent with the following documents in a form satisfactory to Agent: 
                            (i)  on a weekly basis (or more frequently as Agent
may request), schedules of sales made, credits issued and cash received;
                            (ii)  as soon as possible after the end of each month
(but in any event within ten (10) Business Days after the end thereof), on a monthly basis or more frequently as Agent may request, (A) perpetual inventory reports, (B) inventory reports by location and category (and including the amounts of
Inventory and the value thereof at any leased locations and at premises of warehouses, processors or other third parties), (C) reports setting forth Inventory on hand in excess of demand and Inventory on hand greater than 180 days from the date of
purchase; (D) agings of accounts receivable (together with a reconciliation to the previous month’s aging and general ledger) and (E) agings of accounts payable (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);
                            (iii)  upon Agent’s request, (A) copies of
customer statements and credit memos, remittance advices and reports, and copies of deposit slips and bank statements, (B) copies of shipping and delivery documents, and (C) copies of purchase orders, invoices and delivery documents for
Inventory and Equipment acquired by Borrower; 
                            (iv)  such other reports as to the Collateral as Agent shall request from time to time.
                   (b)  If Borrower’s records or reports of the Collateral are prepared or maintained by an accounting service, contractor, shipper or other agent, Borrower hereby irrevocably authorizes such service, contractor, shipper or agent
to deliver such records, reports, and related documents to Agent and to follow Agent’s instructions with respect to further services at any time that an Event of Default exists or has occurred and is continuing.
          7.2  
Accounts Covenants.
                   (a)  Borrower shall notify
Agent promptly of: (i) any material delay in Borrower’s performance of any of its material obligations to any account debtor or the assertion of any material claims, offsets, defenses or counterclaims by any account debtor, or any material
disputes with account debtors, or any settlement, adjustment or compromise thereof, (ii) all 
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   material adverse information known to Borrower relating to the financial condition of any account debtor and (iii) any event or circumstance which, to the best of
Borrower’s knowledge, would cause Agent to consider any then existing Accounts as no longer constituting Eligible Accounts. No credit, discount, allowance or extension or agreement for any of the foregoing shall be granted to any account debtor
without Agent’s consent, except in the ordinary course of Borrower’s business in accordance with practices and policies previously disclosed in writing to Agent and except as set forth in the schedules delivered to Agent pursuant to
Section 7.1(a) above. So long as no Event of Default exists or has occurred and is continuing, Borrower shall, in the ordinary course of its business, settle, adjust or compromise to settle, adjust or compromise any claim, offset, counterclaim or
dispute with any account debtor. At any time that an Event of Default exists or has occurred and is continuing, Agent shall, at its option, have the exclusive right to settle, adjust or compromise any claim, offset, counterclaim or dispute with
account debtors or grant any credits, discounts or allowances.
                   (b)  With respect to each
Account: (i) the amounts shown on any invoice delivered to Agent or schedule thereof delivered to Agent shall be true and complete, (ii) no payments shall be made thereon except payments immediately delivered to Agent pursuant to the terms of this
Agreement, (iii) no credit, discount, allowance or extension or agreement for any of the foregoing shall be granted to any account debtor except as reported to Agent in accordance with this Agreement and except for credits, discounts, allowances or
extensions made or given in the ordinary course of Borrower’s business in accordance with practices and policies previously disclosed to Agent, (iv) there shall be no setoffs, deductions, contras, defenses, counterclaims or disputes existing or
asserted with respect thereto except as reported to Agent in accordance with the terms of this Agreement, (v) none of the transactions giving rise thereto will violate any applicable foreign, Federal, State or local laws or regulations, all
documentation relating thereto will be legally sufficient under such laws and regulations and all such documentation will be legally enforceable in accordance with its terms.
                   (c)  Agent shall have the right at any time or times, in Agent’s name or in the name of a nominee of
Agent, to verify the validity, amount or any other matter relating to any Receivables or other Collateral, by mail, telephone, facsimile transmission or otherwise. 
          7.3  
Inventory Covenants. With respect to the Inventory: (a) Borrower shall at all times maintain inventory records reasonably satisfactory to Agent, keeping correct and accurate records itemizing and
describing the kind, type, quality and quantity of Inventory, Borrower’s cost therefor and daily withdrawals therefrom and additions thereto; (b) Borrower shall conduct a physical count of the Inventory either through periodic cycle counts or
otherwise at least once each year but at any time or times as Agent may request on or after an Event of Default, and promptly following such physical inventory (whether pursuant to periodic cycle counts or otherwise) shall supply Agent with a report
in the form and with such specificity as may be satisfactory to Agent concerning such physical count; (c) Borrower shall not remove any Inventory from the locations set forth or permitted herein, without the prior written consent of Agent, except
for sales of Inventory in the ordinary course of its business and except to move Inventory directly from one location set forth or permitted herein to another such location and except for Inventory shipped from the manufacturer thereof to Borrower
which is in transit to the
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   locations set forth or permitted herein; (d) upon Agent’s request, Borrower shall, at its expense, no more than two (2) times in any twelve (12) month period, but
at any time or times as Agent may request on or after an Event of Default, deliver or cause to be delivered to Agent written appraisals as to the Inventory in form, scope and methodology acceptable to Agent and by an appraiser acceptable to Agent,
addressed to Agent and Lenders and upon which Agent and Lenders are expressly permitted to rely; (e) Borrower shall produce, use, store and maintain the Inventory with all reasonable care and caution and in accordance with applicable standards of
any insurance and in conformity with applicable laws (including the requirements of the Federal Fair Labor Standards Act of 1938, as amended and all rules, regulations and orders related thereto); (f) none of the Inventory or other Collateral
constitutes farm products or the proceeds thereof; (g) Borrower assumes all responsibility and liability arising from or relating to the production, use, sale or other disposition of the Inventory; (h) Borrower shall not sell Inventory to any
customer on approval, or any other basis which entitles the customer to return or may obligate Borrower to repurchase such Inventory; (i) Borrower shall keep the Inventory in good and marketable condition; and (j) Borrower shall not, without prior
written notice to Agent or the specific identification of such Inventory in a report with respect thereto provided by Borrower to Agent pursuant to Section 7.1(a) hereof, acquire or accept any Inventory on consignment or approval. In addition to the
foregoing, in the event that the Borrower, at any time, has Inventory on consignment having a value in excess of $1,000,000 in the aggregate, Borrower, at the request of Agent, shall obtain consignee waivers, which shall be in form and substance
satisfactory to Agent, from any consignee in possession or control of Inventory having a value in excess of $300,000.
          7.4  
Equipment and Real Property Covenants. With respect to the Equipment and Real Property: (a) at any time or times as Agent may request on or after an Event of Default, deliver or cause to be delivered to
Agent, at Borrower’s sole cost and expense, written appraisals as to the Equipment and/or the Real Property in form, scope and methodology acceptable to Agent and by an appraiser acceptable to Agent, addressed to Agent and upon which Agent is
expressly permitted to rely; (b) Borrower shall keep the Equipment in good order, repair, running and marketable condition (ordinary wear and tear excepted); (c) Borrower shall use the Equipment and Real Property with all reasonable care and caution
and in accordance with applicable standards of any insurance and in conformity with all applicable laws; (d) the Equipment is and shall be used in the business of Borrower and not for personal, family, household or farming use; (e) Borrower shall
not remove any Equipment from the locations set forth or permitted herein, except to the extent necessary to have any Equipment repaired or maintained in the ordinary course of its business or to move Equipment directly from one location set forth
or permitted herein to another such location and except for the movement of motor vehicles used by or for the benefit of Borrower in the ordinary course of business; (f) the Equipment is now and shall remain personal property and Borrower shall not
permit any of the Equipment to be or become a part of or affixed to real property; and (g) Borrower assumes all responsibility and liability arising from the use of the Equipment and Real Property.
          7.5  
Power of Attorney. Borrower hereby irrevocably designates and appoints Agent (and all persons designated by Agent) as Borrower’s true and lawful attorney-in-fact, and authorizes Agent, in
Borrower’s, or Agent’s name, to: (a) at any time an Event of Default exists 
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   or has occurred and is continuing (i) demand payment on Receivables or other Collateral, (ii) enforce payment of Receivables by legal proceedings or otherwise, (iii)
exercise all of Borrower’s rights and remedies to collect any Receivable or other Collateral, (iv) sell or assign any Receivable upon such terms, for such amount and at such time or times as the Agent deems advisable, (v) settle, adjust,
compromise, extend or renew an Account, (vi) discharge and release any Receivable, (vii) prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or other similar document against an account debtor or other obligor in respect
of any Receivables or other Collateral, (viii) notify the post office authorities to change the address for delivery of remittances from account debtors or other obligors in respect of Receivables or other proceeds of Collateral to an address
designated by Agent, and open and dispose of all mail addressed to Borrower and handle and store all mail relating to the Collateral; and (ix) do all acts and things which are necessary, in Agent’s determination, to fulfill Borrower’s
obligations under this Agreement and the other Financing Agreements and (b) at any time to (i) take control in any manner of any item of payment in respect of Receivables or constituting Collateral or otherwise received in or for deposit in the
Blocked Accounts or otherwise received by Agent or any Lender, (ii) have access to any lockbox or postal box into which remittances from account debtors or other obligors in respect of Receivables or other proceeds of Collateral are sent or
received, (iii) endorse Borrower’s name upon any items of payment in respect of Receivables or constituting Collateral or otherwise received by Agent and any Lender and deposit the same in Agent’s account for application to the
Obligations, (iv) endorse Borrower’s name upon any chattel paper, document, instrument, invoice, or similar document or agreement relating to any Receivable or any goods pertaining thereto or any other Collateral, including any warehouse or
other receipts, or bills of lading and other negotiable or non-negotiable documents, (v) clear Inventory the purchase of which was financed with Letter of Credit Accommodations through U.S. Customs or foreign export control authorities in
Borrower’s name, Agent’s name or the name of Agent’s designee, and to sign and deliver to customs officials powers of attorney in Borrower’s o name for such purpose, and to complete in Borrower’s or Agent’s name, any
order, sale or transaction, obtain the necessary documents in connection therewith and collect the proceeds thereof, and (vi) sign such Borrower’s name on any verification of Receivables and notices thereof to account debtors or any
secondary obligors or other obligors in respect thereof. Borrower hereby releases Agent and Lenders and their respective officers, employees and designees from any liabilities arising from any act or acts under this power of attorney and in
furtherance thereof, whether of omission or commission, except as a result of Agent’s or any Lender’s own gross negligence or wilful misconduct as determined pursuant to a final non-appealable order of a court of competent
jurisdiction.
          7.6  
Right to Cure. Agent may, at its option, upon notice to Borrower, (a) cure any default by Borrower under any material agreement with a third party that affects the Collateral, its value or the ability
of Agent to collect, sell or otherwise dispose of the Collateral or the rights and remedies of Agent or any Lender therein or the ability of Borrower or any Obligor to perform its obligations hereunder or under any of the other Financing Agreements,
(b) pay or bond on appeal any judgment entered against Borrower, (c) discharge taxes, liens, security interests or other encumbrances at any time levied on or existing with respect to the Collateral and (d) pay any amount, incur any expense or
perform any act which, in Agent’s judgment, is necessary or appropriate to preserve, protect, insure or maintain the Collateral and the rights of 
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   Agent and Lenders with respect thereto. Agent may add any amounts so expended to the Obligations and charge Borrower’s account therefor, such amounts to be
repayable by Borrower on demand. Agent and Lenders shall be under no obligation to effect such cure, payment or bonding and shall not, by doing so, be deemed to have assumed any obligation or liability of Borrower or any Obligor. Any payment made or
other action taken by Agent or any Lender under this Section shall be without prejudice to any right to assert an Event of Default hereunder and to proceed accordingly.
          7.7  
Access to Premises. From time to time as requested by Agent, at the cost and expense of Borrower, (a) Agent or its designee shall have complete access to all of Borrower’s premises during normal
business hours and after notice to, or at any time and without notice to Borrower if an Event of Default exists or has occurred and is continuing, for the purposes of inspecting, verifying and auditing the Collateral and all of Borrower’s books
and records, including the Records, and (b) Borrower shall promptly furnish to Agent such copies of such books and records or extracts therefrom as Agent may request, and (c) Agent or any Lender or Agent’s designee may use during normal
business hours such of Borrower’s personnel, equipment, supplies and premises as may be reasonably necessary for the foregoing and if an Event of Default exists or has occurred and is continuing for the collection of Receivables and realization
of other Collateral.
 SECTION 8.  
REPRESENTATIONS AND WARRANTIES
          Borrower hereby represents and warrants to Agent and Lenders the following (which shall survive
the execution and delivery of this Agreement), the truth and accuracy of which are a continuing condition of the making of Loans and providing Letter of Credit Accommodations to Borrower:
          8.1  
Corporate Existence, Power and Authority. Borrower is a corporation duly organized and in good standing under the laws of its state of incorporation and is duly qualified as a foreign corporation and in
good standing in all states or other jurisdictions where the nature and extent of the business transacted by it or the ownership of assets makes such qualification necessary, except for those jurisdictions in which the failure to so qualify would
not have a material adverse effect on Borrower’s financial condition, results of operation or business or the rights of Agent in or to any of the Collateral. The execution, delivery and performance of this Agreement, the other Financing
Agreements and the transactions contemplated hereunder and thereunder (a) are all within Borrower’s corporate powers, (b) have been duly authorized, (c) are not in contravention of law or the terms of Borrower’s certificate of
incorporation, by-laws, or other organizational documentation, or any indenture, agreement or undertaking to which Borrower is a party or by which Borrower or its property are bound and (d) will not result in the creation or imposition of, or
require or give rise to any obligation to grant, any lien, security interest, charge or other encumbrance upon any property of Borrower. This Agreement and the other Financing Agreements to which Borrower is a party constitute legal, valid and
binding obligations of Borrower enforceable in accordance with their respective terms. 
          8.2  
Name; State of Organization; Chief Executive Office; Collateral Locations.
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                      (a)  The exact legal name of Borrower is as set
forth on the signature page of this Agreement and in the Information Certificate. Borrower has not, during the past five years, been known by or used any other corporate or fictitious name or been a party to any merger or consolidation, or acquired
all or substantially all of the assets of any Person, or acquired any of its property or assets out of the ordinary course of business, except as set forth in the Information Certificate.
                   (b)  Borrower is an organization of the type and organized in the jurisdiction set forth in the Information
Certificate. The Information Certificate accurately sets forth the organizational identification number of Borrower or accurately states that Borrower has none and accurately sets forth the federal employer identification number of
Borrower.
                   (c)  The chief executive office and mailing address of Borrower and Borrower’s
Records concerning Accounts are located only at the address identified as such in Schedule 8.2 to the Information Certificate and its only other places of business and the only other locations of Collateral, if any, are the addresses set forth in
Schedule 8.2 to the Information Certificate, subject to the rights of Borrower to establish new locations in accordance with Section 9.2 below. The Information Certificate correctly identifies any of such locations which are not owned by Borrower
and sets forth the owners and/or operators thereof.
          8.3  
Financial Statements; No Material Adverse Change. All financial statements relating to Borrower which have been or may hereafter be delivered by Borrower to Agent and Lenders have been
prepared in accordance with GAAP (except as to any interim financial statements, to the extent such statements are subject to normal year-end adjustments and do not include any notes) and fairly present in all material respects the financial
condition and the results of operation of Borrower as at the dates and for the periods set forth therein. Except as disclosed in any interim financial statements furnished by Borrower to Agent prior to the date of this Agreement, there has been no
act, condition or event which has had or is reasonably likely to have a Material Adverse Effect since the date of the most recent audited financial statements of Borrower furnished by Borrower to Agent prior to the date of this Agreement.

          8.4  
Priority of Liens; Title to Properties. The security interests and liens granted to Agent under this Agreement and the other Financing Agreements constitute valid and perfected first priority liens and
security interests in and upon the Collateral subject only to the liens indicated on Schedule 8.4 to the Information Certificate and the other liens permitted under Section 9.8 hereof. Borrower has good and marketable fee simple title to or valid
leasehold interests in all of its Real Property and good, valid and merchantable title to all of its other properties and assets subject to no liens, mortgages, pledges, security interests, encumbrances or charges of any kind, except those granted
to Agent and such others as are specifically listed on Schedule 8.4 to the Information Certificate or permitted under Section 9.8 hereof.
          8.5  
Tax Returns. Borrower has filed, or caused to be filed, in a timely manner all tax returns, reports and declarations which are required to be filed by it. All information in such tax returns, reports
and declarations is complete and accurate in all material respects. Borrower has paid or caused to be paid all taxes due and payable or claimed due and payable in any assessment received by it, except taxes the validity of which are being contested
in good faith by appropriate 
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   proceedings diligently pursued and available to Borrower and with respect to which adequate reserves have been set aside on its books. Adequate provision has been made
for the payment of all accrued and unpaid Federal, State, county, local, foreign and other taxes whether or not yet due and payable and whether or not disputed.
          8.6  
Litigation. Except as set forth on Schedule 8.6 to the Information Certificate, (a) there is no investigation by any Governmental Authority pending, or to the best of Borrower’s knowledge
threatened, against or affecting Borrower, its or their assets or business and (b) there is no action, suit, proceeding or claim by any Person pending, or to the best of Borrower’s knowledge threatened, against Borrower or its or their assets
or goodwill, or against or affecting any transactions contemplated by this Agreement, in each case, which if adversely determined against Borrower has or could reasonably be expected to have a Material Adverse Effect. 
          8.7  
Compliance with Other Agreements and Applicable Laws. 
                   (a)  Borrower is not in default in any respect under, or in violation in any respect of the terms of, any material agreement, contract, instrument, lease or other commitment to which it is a party or by which it or any of its assets
are bound. Borrower is in compliance with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority relating to their respective businesses, including, without limitation, those set forth in or promulgated
pursuant to the Occupational Safety and Health Act of 1970, as amended, the Fair Labor Standards Act of 1938, as amended, ERISA, the Code, as amended, and the rules and regulations thereunder, and all Environmental Laws.
                   (b)  Borrower has obtained all material permits, licenses, approvals, consents, certificates, orders or
authorizations of any Governmental Authority required for the lawful conduct of its business (the “Permits”). All of the Permits are valid and subsisting and in full force and effect. There are no actions, claims or proceedings pending or
to the best of Borrower’s knowledge, threatened that seek the revocation, cancellation, suspension or modification of any of the Permits.
          8.8  
Environmental Compliance.
                   (a)  Except as set
forth on Schedule 8.8 to the Information Certificate, Borrower and any Subsidiary of Borrower have not generated, used, stored, treated, transported, manufactured, handled, produced or disposed of any Hazardous Materials, on or off its premises
(whether or not owned by it) in any manner which at any time violates in any material respect any applicable Environmental Law or Permit, and the operations of Borrower and any Subsidiary of Borrower complies in all material respects with all
Environmental Laws and all Permits.
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                      (b)  Except as set forth on Schedule 8.8 to the
Information Certificate, to the best of Borrower’s knowledge, there has been no investigation by any Governmental Authority or any proceeding, complaint, order, directive, claim, citation or notice by any Governmental Authority or any other
person nor is any pending or to the best of Borrower’s knowledge threatened, with respect to any non-compliance with or violation of the requirements of any Environmental Law by Borrower and any Subsidiary of Borrower or the release, spill or
discharge, threatened or actual, of any Hazardous Material or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials or any other environmental, health or safety matter,
which adversely affects or could reasonably be expected to adversely affect in any material respect Borrower or its or their business, operations or assets or any properties at which Borrower has transported, stored or disposed of any Hazardous
Materials.
                   (c)  Except as set forth on Schedule 8.8 to the Information Certificate, Borrower
and its Subsidiaries have no material liability (contingent or otherwise) in connection with a release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture,
handling, production or disposal of any Hazardous Materials.
                   (d)  Borrower and its
Subsidiaries have all Permits required to be obtained or filed in connection with the operations of Borrower under any Environmental Law and all of such licenses, certificates, approvals or similar authorizations and other Permits are valid and in
full force and effect.
          8.9  
Employee Benefits.
                   (a)  Each Plan is in compliance in all material
respects with the applicable provisions of ERISA, the Code and other Federal or State law. Each Plan which is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service and to
the best of Borrower’s knowledge, nothing has occurred which would cause the loss of such qualification. Borrower and its ERISA Affiliates have made all required contributions to any Plan subject to Section 412 of the Code, and no application
for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.
                   (b)  There are no pending, or to the best of Borrower’s knowledge, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan.
                   (c)  (i)  No ERISA Event has occurred or is reasonably expected to occur; (ii) the current
value of each Plan’s assets (determined in accordance with the assumptions used for funding such Plan pursuant to Section 412 of the Code) are not less than such Plan’s liabilities under Section 4001(a)(16) of ERISA; (iii) Borrower
and its ERISA Affiliates, have not incurred and do not reasonably expect to incur, any liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) Borrower

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   and its ERISA Affiliates, have not incurred and do not reasonably expect to incur, any liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) Borrower and its ERISA Affiliates, have not engaged in a transaction that would be subject to Section 4069
or 4212(c) of ERISA.
          8.10  
Bank Accounts. All of the deposit accounts, investment accounts or other accounts in the name of or used by Borrower maintained at any bank or other financial institution are set forth on Schedule 8.10
to the Information Certificate, subject to the right of Borrower to establish new accounts in accordance with Section 5.2 hereof.
          8.11  
Intellectual Property. Borrower owns or licenses or otherwise has the right to use all Intellectual Property necessary for the operation of its business as presently conducted or proposed to be
conducted. As of the date hereof, Borrower does not have any Intellectual Property registered, or subject to pending applications, in the United States Patent and Trademark Office or any similar office or agency in the United States, any State
thereof, any political subdivision thereof or in any other country, other than those described in Schedule 8.11 to the Information Certificate and has not granted any licenses with respect thereto other than as set forth in Schedule 8.11 to the
Information Certificate. Except as set forth on Schedule 8.11, no event has occurred which permits or would permit after notice or passage of time or both, the revocation, suspension or termination of such rights. To the best of Borrower’s
knowledge, no slogan or other advertising device, product, process, method, substance or other Intellectual Property or goods bearing or using any Intellectual Property presently contemplated to be sold by or employed by Borrower infringes any
patent, trademark, servicemark, tradename, copyright, license or other Intellectual Property owned by any other Person presently and no claim or litigation is pending or threatened against or affecting Borrower contesting its right to sell or use
any such Intellectual Property. Schedule 8.11 to the Information Certificate sets forth all of the agreements or other arrangements of Borrower pursuant to which Borrower has a license or other right to use any trademarks, logos, designs,
representations or other Intellectual Property owned by another person as in effect on the date hereof and the dates of the expiration of such agreements or other arrangements of Borrower as in effect on the date hereof (collectively, together with
such agreements or other arrangements as may be entered into by Borrower after the date hereof, collectively, the “License Agreements” and individually, a “License Agreement”). No trademark, servicemark, copyright or other
Intellectual Property at any time used by Borrower which is owned by another person, or owned by Borrower subject to any security interest, lien, collateral assignment, pledge or other encumbrance in favor of any person other than Agent, is affixed
to any Eligible Inventory, except (a) to the extent permitted under the term of the license agreements listed on Schedule 8.11 to the Information Certificate and (b) to the extent the sale of Inventory to which such Intellectual Property is affixed
is permitted to be sold by Borrower under applicable law (including the United States Copyright Act of 1976).
          8.12  
Subsidiaries; Affiliates; Capitalization; Solvency.
                   (a)  Borrower does not have any direct or indirect Subsidiaries or Affiliates and is not engaged in any joint venture or partnership except as set forth in Schedule 8.12 to the Information Certificate.
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                      (b)  Borrower is the record and beneficial owner
of all of the issued and outstanding shares of Capital Stock of each of the Subsidiaries listed on Schedule 8.12 to the Information Certificate as being owned by Borrower and there are no proxies, irrevocable or otherwise, with respect to such
shares and no equity securities of any of the Subsidiaries are or may become required to be issued by reason of any options, warrants, rights to subscribe to, calls or commitments of any kind or nature and there are no contracts, commitments,
understandings or arrangements by which any Subsidiary is or may become bound to issue additional shares of it Capital Stock or securities convertible into or exchangeable for such shares.
                   (c)  Each Person who beneficially owns or holds five (5%) percent or more of any class of the issued and
outstanding shares of Capital Stock of Borrower are indicated in the Information Certificate. All of the issued and outstanding shares of Capital Stock of Borrower have been duly authorized and issued.
                   (d)  Borrower is Solvent and will continue to be Solvent after the creation of the Obligations, the
security interests of Agent and the other transaction contemplated hereunder.
          8.13  
Labor Disputes.
                   (a)  Set forth on Schedule
8.13 to the Information Certificate is a list (including dates of termination) of all collective bargaining or similar agreements between or applicable to Borrower and any union, labor organization or other bargaining agent in respect of the
employees of Borrower on the date hereof.
                   (b)  There is (i) no significant unfair labor
practice complaint pending against Borrower or, to the best of Borrower’s knowledge, threatened against it, before the National Labor Relations Board, and no significant grievance or significant arbitration proceeding arising out of or under
any collective bargaining agreement is pending on the date hereof against Borrower or, to best of Borrower’s knowledge, threatened against it, and (ii) no significant strike, labor dispute, slowdown or stoppage is pending against Borrower
or, to the best of Borrower’s knowledge, threatened against Borrower.
          8.14  
Restrictions on Subsidiaries. Except for restrictions contained in this Agreement or any other agreement with respect to Indebtedness of Borrower permitted hereunder as in effect on the date hereof,
there are no contractual or consensual restrictions on Borrower or any of its Subsidiaries which prohibit or otherwise restrict (a) the transfer of cash or other assets (i) between Borrower and any of its Subsidiaries or (ii) between
any Subsidiaries of Borrower or (b) the ability of Borrower or any of its Subsidiaries to incur Indebtedness or grant security interests to Agent or any Lender in the Collateral.
          8.15  
Material Contracts. Schedule 8.15 to the Information Certificate sets forth all Material Contracts to which Borrower is a party or is bound as of the date hereof. Borrower has delivered true, correct
and complete copies of such Material Contracts to Agent on or before the date hereof. Borrower are not in breach or in default in any material respect of or under any Material Contract and have not received any notice of the intention of any other
party thereto to terminate any Material Contract.
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            8.16  
Payable Practices. Borrower has not made any material change in the historical accounts payable practices from those in effect immediately prior to the date hereof.
          8.17  
Indenture. Borrower hereby acknowledges, confirms and agrees that the Obligations constitute “Designated Senior Indebtedness”, as defined in the Senior Subordinated Indenture. 
          8.18  
Accuracy and Completeness of Information. All information furnished by or on behalf of Borrower in writing to Agent or any Lender in connection with this Agreement or any of the other Financing
Agreements or any transaction contemplated hereby or thereby, including all information on the Information Certificate is true and correct in all material respects on the date as of which such information is dated or certified and does not omit any
material fact necessary in order to make such information not misleading. No event or circumstance has occurred which has had or could reasonably be expected to have a Material Adverse Affect, which has not been fully and accurately disclosed to
Agent in writing prior to the date hereof.
          8.19  
Survival of Warranties; Cumulative. All representations and warranties contained in this Agreement or any of the other Financing Agreements shall survive the execution and delivery of this Agreement and
shall be deemed to have been made again to Agent and Lenders on the date of each additional borrowing or other credit accommodation hereunder and shall be conclusively presumed to have been relied on by Agent and Lenders regardless of any
investigation made or information possessed by Agent or any Lender. The representations and warranties set forth herein shall be cumulative and in addition to any other representations or warranties which Borrower shall now or hereafter give, or
cause to be given, to Agent or any Lender.
 SECTION 9.      
AFFIRMATIVE AND NEGATIVE COVENANTS
          9.1  
Maintenance of Existence.
                   (a)  Borrower shall
at all times preserve, renew and keep in full force and effect its corporate existence and rights and franchises with respect thereto and maintain in full force and effect all licenses, trademarks, tradenames, approvals, authorizations, leases,
contracts and Permits necessary to carry on the business as presently or proposed to be conducted.
                   (b)  Borrower shall not change its name unless each of the following conditions is satisfied: (i) Agent shall have received not less than thirty (30) days prior written notice from Borrower of such proposed change in its corporate
name, which notice shall accurately set forth the new name; and (ii) Agent shall have received a copy of the amendment to the Certificate of Incorporation of Borrower providing for the name change certified by the Secretary of State of the
jurisdiction of incorporation or organization of Borrower as soon as it is available.
                   (c)  Borrower shall not change its chief executive office or its mailing address or organizational identification number (or if it does not have one, shall not acquire one) unless Agent shall have received not less than thirty (30)
days’ prior written notice from Borrower of such proposed change, which notice shall set forth such information with respect thereto as Agent may require and Agent shall have received such agreements as Agent may reasonably 
 
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   require in connection therewith. Borrower shall not change its type of organization, jurisdiction of organization or other legal structure.
          9.2  
New Collateral Locations. Borrower may only open any new location within the continental United States provided Borrower (a) gives Agent thirty (30) days prior written notice of the intended opening of
any such new location and (b) executes and delivers, or causes to be executed and delivered, to Agent such agreements, documents, and instruments as Agent may deem reasonably necessary or desirable to protect its interests in the Collateral at such
location.
          9.3  
Compliance with Laws, Regulations, Etc.
                   (a)  Borrower shall, and shall cause any Subsidiary to, at all times, comply in all material respects with all laws, rules, regulations, licenses, approvals, orders and other Permits applicable to it and duly observe all
requirements of any foreign, Federal, State or local Governmental Authority, including ERISA, the Code, the Occupational Safety and Health Act of 1970, as amended, the Fair Labor Standards Act of 1938, as amended, and all statutes, rules,
regulations, orders, permits and stipulations relating to environmental pollution and employee health and safety, including all of the Environmental Laws.
                   (b)  Borrower shall give written notice to Agent immediately upon Borrower’s receipt of any notice of,
or Borrower’s otherwise obtaining knowledge of, (i) the occurrence of any event involving the release, spill or discharge, threatened or actual, of any Hazardous Material or (ii) any investigation, proceeding, complaint, order,
directive, claims, citation or notice with respect to: (A) any non-compliance with or violation of any Environmental Law by Borrower or (B) the release, spill or discharge, threatened or actual, of any Hazardous Material other than in the
ordinary course of business and other than as permitted under any applicable Environmental Law. Copies of all environmental surveys, audits, assessments, feasibility studies and results of remedial investigations shall be promptly furnished, or
caused to be furnished, by Borrower to Agent. Borrower shall take prompt action to respond to any material non-compliance with any of the Environmental Laws and shall regularly report to Agent on such response.
                   (c)  Without limiting the generality of the foregoing, whenever Agent reasonably determines that there is
non-compliance, or any condition which requires any action by or on behalf of Borrower in order to avoid any non-compliance, with any Environmental Law, Borrower shall, at Agent’s request and Borrower’s expense: (i) cause an
independent environmental engineer reasonably acceptable to Agent to conduct such tests of the site where non-compliance or alleged non-compliance with such Environmental Laws has occurred as to such non-compliance and prepare and deliver to Agent a
report as to such non-compliance setting forth the results of such tests, a proposed plan for responding to any environmental problems described therein, and an estimate of the costs thereof and (ii) provide to Agent a supplemental report of
such engineer whenever the scope of such non-compliance, or Borrower’s response thereto or the estimated costs thereof, shall change in any material respect.
                   (d)  Borrower shall indemnify and hold harmless Agent and Lenders and their respective directors, officers,
employees, agents, invitees, representatives, successors and 
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   assigns, from and against any and all losses, claims, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees and expenses) directly or
indirectly arising out of or attributable to the use, generation, manufacture, reproduction, storage, release, threatened release, spill, discharge, disposal or presence of a Hazardous Material, including the costs of any required or necessary
repair, cleanup or other remedial work with respect to any property of Borrower and the preparation and implementation of any closure, remedial or other required plans. All representations, warranties, covenants and indemnifications in this Section
9.3 shall survive the payment of the Obligations and the termination of this Agreement.
          9.4  
Payment of Taxes and Claims. Borrower shall, and shall cause each Subsidiary to, duly pay and discharge all taxes, assessments, contributions and governmental charges upon or against it or its
properties or assets, except for taxes the validity of which are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower or such Subsidiary, as the case may be, and with respect to which adequate
reserves have been set aside on its books. Borrower shall be liable for any tax or penalties imposed on Agent or any Lender as a result of the financing arrangements provided for herein and Borrower agrees to indemnify and hold Agent harmless with
respect to the foregoing, and to repay to Agent, for the benefit of Lenders, on demand the amount thereof, and until paid by Borrower such amount shall be added and deemed part of the Loans, provided,
that, nothing contained herein shall be construed to require Borrower to pay any income or franchise taxes attributable to the income of Lenders from any amounts charged or paid hereunder to Lenders.
The foregoing indemnity shall survive the payment of the Obligations and the termination of this Agreement.
          9.5  
Insurance. Borrower shall, and shall cause each Subsidiary to, at all times, maintain with financially sound and reputable insurers insurance with respect to the Collateral against loss or damage and
all other insurance of the kinds and in the amounts customarily insured against or carried by corporations of established reputation engaged in the same or similar businesses and similarly situated. Said policies of insurance shall be reasonably
satisfactory to Agent as to form, amount and insurer. Borrower shall furnish certificates, policies or endorsements to Agent as Agent shall reasonably require as proof of such insurance, and, if Borrower fails to do so, Agent is authorized, but not
required, to obtain such insurance at the expense of Borrower. All policies shall provide for at least thirty (30) days prior written notice to Agent of any cancellation or reduction of coverage and that Agent may act as attorney for Borrower in
obtaining, and at any time an Event of Default exists or has occurred and is continuing, adjusting, settling, amending and canceling such insurance. Borrower shall cause Agent to be named as a loss payee and an additional insured (but without any
liability for any premiums) under such insurance policies and Borrower shall obtain non-contributory lender’s loss payable endorsements to all insurance policies in form and substance satisfactory to Agent. Such lender’s loss payable
endorsements shall specify that the proceeds of such insurance shall be payable to Agent as its interests may appear and further specify that Agent and Lenders shall be paid regardless of any act or omission by Borrower or any of its or their
Affiliates. Without limiting any other rights of Agent or Lenders, any insurance proceeds received by Agent at any time may be applied to payment of the Obligations, whether or not then due, in any order and in such manner as Agent may determine.
Upon application of such proceeds to the Revolving Loans, Revolving Loans may be available subject and pursuant to the terms hereof to be used for
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   the costs of repair or replacement of the Collateral lost or damages resulting in the payment of such insurance proceeds.
          9.6  
Financial Statements and Other Information.
                   (a)  Borrower shall, and shall cause each Subsidiary to, keep proper books and records in which true and complete entries shall be made of all dealings or transactions of or in relation to the Collateral and the business of Borrower
and its Subsidiaries in accordance with GAAP. Borrower shall promptly furnish to Agent and Lenders all such financial and other information as Agent shall reasonably request relating to the Collateral and the assets, business and operations of
Borrower, and Borrower shall notify the auditors and accountants of Borrower that Agent is authorized to obtain such information directly from them. Without limiting the foregoing, Borrower shall furnish or cause to be furnished to Agent, the
following: (i) within thirty (30) days after the end of each fiscal month, monthly unaudited consolidated financial statements, and unaudited consolidating financial statements (including in each case balance sheets, statements of income and loss,
statements of cash flow, and statements of shareholders’ equity), all in reasonable detail, fairly presenting the financial position and the results of the operations of Borrower and its Subsidiaries as of the end of and through such fiscal
month, certified to be correct by the chief financial officer of Borrower, subject to normal year-end adjustments and no footnotes and accompanied by a compliance certificate substantially in the form of Exhibit C hereto, along with a schedule in a
form satisfactory to Agent of the calculations used in determining, as of the end of such month, whether Borrower is in compliance with the covenants set forth in Section 9.17 of this Agreement for such month and (ii) within ninety (90) days after
the end of each fiscal year, audited consolidated financial statements and unaudited consolidating financial statements of Borrower and its Subsidiaries (including in each case balance sheets, statements of income and loss, statements of cash flow,
and statements of shareholders’ equity), and the accompanying notes thereto, all in reasonable detail, fairly presenting the financial position and the results of the operations of Borrower and its Subsidiaries as of the end of and for such
fiscal year, together with the unqualified opinion of independent certified public accountants with respect to the audited consolidated financial statements, which accountants shall be an independent accounting firm selected by Borrower and
acceptable to Agent, that such audited consolidated financial statements have been prepared in accordance with GAAP, and present fairly the results of operations and financial condition of Borrower and its Subsidiaries as of the end of and for the
fiscal year then ended.
                   (b)  Borrower shall promptly notify Agent in writing of the details
of (i) any loss, damage, investigation, action, suit, proceeding or claim relating to Collateral having a value of more than $250,000 or which if adversely determined would result in any material adverse change in Borrower’s business,
properties, assets, goodwill or condition, financial or otherwise, (ii) any Material Contract being terminated or amended or any new Material Contract entered into (in which event Borrower shall provide Agent with a copy of such Material
Contract), (iii) any order, judgment or decree in excess of $250,000 shall have been entered against Borrower any of its properties or assets, (iv) any notification of a material violation of laws or regulations received by Borrower,
(v) any ERISA Event, and (vi) the occurrence of any Default or Event of Default.
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                      (c)  Borrower shall promptly after the sending or
filing thereof furnish or cause to be furnished to Agent copies of all reports which Borrower sends to its stockholders generally and copies of all reports and registration statements which Borrower files with the Securities and Exchange Commission,
any national securities exchange or the National Association of Securities Dealers, Inc.
                   (d)  Borrower shall furnish or cause to be furnished to Agent such budgets, forecasts, projections and other information respecting the Collateral and the business of Borrower, as Agent may, from time to time, reasonably request.
Agent is hereby authorized to deliver a copy of any financial statement or any other information relating to the business of Borrower to any court or other Governmental Authority, or to any Lender or Participant or prospective Lender or Participant,
or any Affiliate of any Lender or Participant. Borrower hereby irrevocably authorizes and directs all accountants or auditors to deliver to Agent, at Borrower’s expense, copies of the financial statements of Borrower and any reports or
management letters prepared by such accountants or auditors on behalf of Borrower and to disclose to Agent and Lenders such information as they may have regarding the business of Borrower. Any documents, schedules, invoices or other papers delivered
to Agent or any Lender may be destroyed or otherwise disposed of by Agent or such Lender one (1) year after the same are delivered to Agent or such Lender, except as otherwise designated by Borrower to Agent or such Lender in writing.
          9.7  
Sale of Assets, Consolidation, Merger, Dissolution, Etc. Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly, 
                   (a)  merge into or with or consolidate with any other Person or permit any other Person to merge into or
with or consolidate with it;
                   (b)  sell, issue, assign, lease, license, transfer, abandon or
otherwise dispose of any Capital Stock or Indebtedness to any other Person or any of its assets to any other Person, except for
                            (i)  sales of Inventory in the ordinary course of
business,
                            (ii)  the sale or other
disposition of Equipment (including worn-out or obsolete Equipment or Equipment no longer used or useful in the business of Borrower) so long as such sales or other dispositions do not involve Equipment having an aggregate fair market value in
excess of $500,000 for all such Equipment disposed of in any fiscal year of Borrower or as Agent may otherwise agree, and 
                            (iii)  the issuance and sale by Borrower of Capital
Stock of Borrower after the date hereof; provided, that, (A) Agent shall have received not less than ten (10) Business Days’ prior written notice of
such issuance and sale by Borrower, which notice shall specify the parties to whom such shares are to be sold, the terms of such sale, the total amount which it is anticipated will be realized from the issuance and sale of such stock and the net
cash proceeds which it is anticipated will be received by Borrower from such sale, (B) Borrower shall not be required to pay any cash dividends or repurchase or redeem such Capital Stock or make any 
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   other payments in respect thereof, except as otherwise permitted in Section 9.11 hereof, (C) the terms of such Capital Stock, and the terms and conditions of the
purchase and sale thereof, shall not include any terms that include any limitation on the right of Borrower to request or receive Loans or Letter of Credit Accommodations or the right of Borrower to amend or modify any of the terms and conditions of
this Agreement or any of the other Financing Agreements or otherwise in any way relate to or affect the arrangements of Borrower with Agent and Lenders or are more restrictive or burdensome to Borrower than the terms of any Capital Stock in effect
on the date hereof, (D) except as Agent may otherwise agree in writing, all of the proceeds of the sale and issuance of such Capital Stock shall be paid to Agent for application to the Obligations in such order and manner as Agent may determine and
may be reborrowed subject to the provisions of Section 2.1, and (E) as of the date of such issuance and sale and after giving effect thereto, no Default or Event of Default shall exist or have occurred,
                            (iv)  the issuance of Capital Stock of Borrower
consisting of common stock pursuant to an employee stock option or grant or similar equity plan or 401(k) plans of Borrower for the benefit of its employees, directors and consultants, provided,
that, in no event shall Borrower be required to issue, or shall Borrower issue, Capital Stock pursuant to such stock plans or 401(k) plans which would result in a change of Control or other Event of
Default,
                            (v)   *  
                            (vi)  *  
                            (vii)  sale of the Tampa Real Property pursuant to the Tampa Sale-Leaseback Transaction as permitted under Section 9.20;
                   (c)  wind up, liquidate or dissolve;
                   (d)  agree to do any of the foregoing.
          9.8  
Encumbrances. Borrower shall not, and shall not permit any Subsidiary to, create, incur, assume or suffer to exist any security interest, mortgage, pledge, lien, charge or other encumbrance of any
nature whatsoever on any of its assets or properties, including the Collateral, or file or permit the filing of, or permit to remain in effect, any financing statement or other similar notice of any security interest or lien with respect to any such
assets or properties, except: 
                   (a)  the
security interests and liens of Agent for itself and the benefit of Lenders; 
                   (b)  liens
securing the payment of taxes, assessments or other governmental charges or levies either not yet overdue or the validity of which are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower or
Subsidiary, as the case may be and with respect to which adequate reserves have been set aside on its books; 
                   (c)  non-consensual statutory liens (other than liens securing the payment of taxes) arising in the ordinary course of Borrower ‘s or such Subsidiary’s business to the extent: (i) such liens secure Indebtedness which is
not overdue or (ii) such liens secure Indebtedness relating to 
 
 *     Portions of this Exhibit have been deleted and filed separately with the Securities and Exchange Commission pursuant to
the Company's request for confidential treatment pursuant to Rule 24b-2 promulgated under the Securities Exchange Act.
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   claims or liabilities which are fully insured and being defended at the sole cost and expense and at the sole risk of the insurer or being contested in good faith by
appropriate proceedings diligently pursued and available to Borrower or such Subsidiary, in each case prior to the commencement of foreclosure or other similar proceedings and with respect to which adequate reserves have been set aside on its books;

                   (d)  zoning restrictions, easements, licenses, covenants and other restrictions affecting
the use of Real Property which do not interfere in any material respect with the use of such Real Property or ordinary conduct of the business of Borrower or such Subsidiary as presently conducted thereon or materially impair the value of the Real
Property which may be subject thereto; 
                   (e)  purchase money security interests in Equipment
(including Capital Leases) and purchase money mortgages on Real Property to secure Indebtedness permitted under Section 9.9(b) hereof; 
                   (f)  pledges and deposits of cash by Borrower after the date hereof in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types of social security benefits consistent with the current practices of Borrower as of the date hereof;
                   (g)  pledges and deposits of cash by Borrower after the date hereof to secure the performance of tenders,
bids, leases, trade contracts (other than for the repayment of Indebtedness), statutory obligations and other similar obligations in each case in the ordinary course of business consistent with the current practices of Borrower as of the date
hereof; provided, that, in connection with any performance bonds issued by a surety or other person, the issuer of such bond shall have waived in writing
any rights in or to, or other interest in, any of the Collateral in an agreement, in form and substance satisfactory to Agent;
                   (h)  liens arising from (i) operating leases and the precautionary UCC financing statement filings in
respect thereof and (ii) equipment or other materials which are not owned by Borrower located on the premises of Borrower (but not in connection with, or as part of, the financing thereof) from time to time in the ordinary course of business
and consistent with current practices of Borrower and the precautionary UCC financing statement filings in respect thereof;
                   (i)  judgments and other similar liens arising in connection with court proceedings that do not constitute
an Event of Default, provided, that, (i) such liens are being contested in good faith and by appropriate proceedings diligently pursued,
(ii) adequate reserves or other appropriate provision, if any, as are required by GAAP have been made therefor, (iii) a stay of enforcement of any such liens is in effect and (iv) Agent may establish a Reserve with respect thereto;
and
                   (j)  the security interests and liens set forth on Schedule 8.4 to the Information
Certificate.
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            9.9  
Indebtedness. Borrower shall not, and shall not permit any Subsidiary to, incur, create, assume, become or be liable in any manner with respect to, or permit to exist, any Indebtedness, or guarantee,
assume, endorse, or otherwise become responsible for (directly or indirectly), the Indebtedness, performance, obligations or dividends of any other Person, except: 
                   (a)  the Obligations;
                   (b)  purchase money Indebtedness (including Capital Leases) arising after the date hereof to the extent
secured by purchase money security interests in Equipment (including Capital Leases) and purchase money mortgages on Real Property not to exceed, in any calendar year, $2,000,000 in the aggregate at any time outstanding so long as such security
interests and mortgages do not apply to any property of Borrower or any Subsidiary other than the Equipment or Real Property so acquired, and the Indebtedness secured thereby does not exceed the cost of the Equipment or Real Property so acquired, as
the case may be; 
                   (c)  the Indebtedness set forth on Schedule 9.9 to the Information
Certificate; provided, that, (i) Borrower may only make regularly scheduled payments of principal and interest in respect of such Indebtedness in
accordance with the terms of the agreement or instrument evidencing or giving rise to such Indebtedness as in effect on the date hereof, (ii) Borrower shall not, directly or indirectly, (A) amend, modify, alter or change the terms of such
Indebtedness or any agreement, document or instrument related thereto as in effect on the date hereof except, that, Borrower may, after prior written
notice to Agent, amend, modify, alter or change the terms thereof so as to extend the maturity thereof, or defer the timing of any payments in respect thereof, or to forgive or cancel any portion of such Indebtedness (other than pursuant to payments
thereof), or to reduce the interest rate or any fees in connection therewith, or (B) redeem, retire, defease, purchase or otherwise acquire such Indebtedness, or set aside or otherwise deposit or invest any sums for such purpose, and (iii) Borrower
shall furnish to Agent all notices or demands in connection with such Indebtedness either received by Borrower or on its behalf, promptly after the receipt thereof, or sent by Borrower or on its behalf, concurrently with the sending thereof, as the
case may be;
                   (d)  unsecured Indebtedness of Borrower evidenced by or arising under the Senior
Subordinated Notes as in effect on the date hereof, provided, that:
                            (i)  the aggregate principal amount of such
Indebtedness shall not exceed $76,315,000, which is the principal amount outstanding as of the date of this Agreement, less the aggregate amount of all repayments, repurchases or redemptions, whether optional or mandatory, in respect thereof, made
from and after the date of this Agreement, plus interest thereon at the rate provided for in the Senior Subordinated Notes as in effect on the date hereof,
                            (ii)  Borrower and any Obligor shall not, directly or
indirectly, make any payments in respect of such Indebtedness; except that, 
                                     (A) Borrower may make payments of interest in respect of the Senior Subordinated Notes in accordance with the terms of the Senior Subordinated Note and/or Senior Subordinated
Indenture as in effect on the date hereof;
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                                        (B)  Borrower may use not greater than $10,000,000 of proceeds of Revolving Loans made hereunder to make a prepayment in respect of the principal Indebtedness evidenced by the
Senior Subordinated Notes, provided, that, (1) Borrower provides Agent with not less than ten (10) days prior written notice of any intended payment,
(2) such prepayment is made in connection with the contemporaneous execution and delivery of the Senior Subordinated Indenture Extension Agreement, (3) as of the date of such prepayment, Borrower * has consummated the Tampa Sale-Leaseback
Transaction as permitted under Sections 9.7(b)(vii) and 9.20, (4) as of the last day of the month immediately preceding the date of such intended prepayment, Borrower’s EBITDA was in an amount not less than the minimum EBITDA amount for such
month as set forth in the table in Section 9.17, notwithstanding that as of such date, Borrower may not be required to comply with such covenant pursuant to the terms of Section 9.17, (5) no Default or Event of Default exists, immediately prior to
and after giving effect to the making of such payment, (6) for the consecutive thirty (30) days immediately prior to such payment Borrower had Excess Availability of not less than $12,500,000, and (7) immediately after giving effect to
such payment, Borrower has Excess Availability of not less than $12,500,000, and 
                                     
(C)  Borrower may use Designated Equity Proceeds (as defined below) to make a prepayment in respect of the principal Indebtedness evidenced by the Senior Subordinated Notes, provided,
that, (1) Borrower provides Agent with not less than ten (10) days prior written notice of any intended payment, (2) such payment shall be made either from proceeds of a cash equity contribution
received by Borrower within ten (10) days prior to the date of such intended payment or from proceeds of a cash equity contribution made to Borrower not within such ten day period so long as such cash equity contribution is continuously held in a
segregated bank or attorney trust account and not commingled with any other funds (the “Designated Equity Proceeds”), (3) such payment shall not exceed the Designated Equity Proceeds and is made in connection with the contemporaneous
execution and delivery of the Senior Subordinated Indenture Extension Agreement, (4) no Default or Event of Default exists, immediately prior to and after giving effect to the making of such payment, (5) for the consecutive thirty (30) days
immediately prior to such payment Borrower had Excess Availability of not less than $12,500,000, and (6) immediately after giving effect to such payment, Borrower has Excess Availability of not less than $12,500,000; and
                                     
(D)  Borrower may only use amounts permitted under Sections (d)(ii)(B) and (C) above if such amounts are used contemporaneously in connection with the execution and delivery by the Borrower of the Senior Subordinated Indenture Extension
Agreement and the consummation of the transactions thereunder as permitted under such subsections.
                            (iii)  the Obligations of Borrower shall at all times
constitute “Designated Senior Indebtedness” (as such term is defined in the Senior Subordinated Indenture),
                            (iv)  Borrower shall not, directly or indirectly,
(A) amend, modify, alter or change in any material respect any terms of such Indebtedness or any of the Senior Subordinated Notes, the Senior Subordinated Indenture or any related agreements, documents or instruments, except that Borrower may,
subject to the provisions of Section 9.19 hereof, extend the maturity thereof or defer the timing of any payments in respect thereof, or Borrower may forgive or
 * Portions of this Exhibit have been deleted and
filed separately with the Securities and Exchange Commission pursuant to the Company's request for confidential treatment pursuant to Rule 24b-2 promulgated under the Securities Exchange Act.
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   cancel any portion of such Indebtedness other than pursuant to payments thereof, or reduce the interest rate or any fees in connection therewith, or (B) redeem,
retire, defease, purchase or otherwise acquire such Indebtedness, or set aside or otherwise deposit or invest any sums for such purpose, and
                            (v)  Borrower shall furnish to Lender all notices or
demands in connection with such Indebtedness received by Borrower or on its behalf, promptly after receipt thereof or sent by Borrower or on its behalf concurrently with the sending thereof.
          9.10  
Loans, Investments, Etc. Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly, make any loans or advance money or property to any person, or invest in (by capital
contribution, dividend or otherwise) or purchase or repurchase the Capital Stock or Indebtedness or all or a substantial part of the assets or property of any person, or form or acquire any Subsidiaries, or agree to do any of the foregoing,
except:
                   (a)  the endorsement of instruments
for collection or deposit in the ordinary course of business;
                   (b)  investments in cash or
Cash Equivalents, provided, that, (i) no Loans are then outstanding and (ii) the terms and conditions of Section 5.2 hereof shall have been satisfied with
respect to the deposit account, investment account or other account in which such cash or Cash Equivalents are held;
                   (c)  the existing equity investments of Borrower as of the date hereof in its Subsidiaries, provided, that, Borrower shall not have any further obligations or liabilities to make any capital contributions or other additional investments or other payments to or in
or for the benefit of any of such Subsidiaries;
                   (d)  loans and advances by Borrower to
employees of Borrower not to exceed the principal amount of $100,000 in the aggregate at any time outstanding for: (i) reasonable and necessary work-related travel or other ordinary business expenses to be incurred by such employee in connection
with their work for Borrower and (ii) reasonable and necessary relocation expenses of such employees (including home mortgage financing for relocated employees); 
                   (e)  stock or obligations issued to Borrower by any Person (or the representative of such Person) in
respect of Indebtedness of such Person owing to Borrower in connection with the insolvency, bankruptcy, receivership or reorganization of such Person or a composition or readjustment of the debts of such Person; provided, that, the original of any such stock or instrument evidencing such obligations shall be promptly delivered to Agent, upon Agent’s request, together with
such stock power, assignment or endorsement by Borrower as Agent may request;
                   (f)  obligations of account debtors to Borrower arising from Accounts which are past due evidenced by a promissory note made by such account debtor payable to Borrower; provided,
that, promptly upon the receipt of the original of any such promissory note by
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   Borrower, such promissory note shall be endorsed to the order of Agent by Borrower and promptly delivered to Agent as so endorsed;
                   (g)  the loans and advances set forth on Schedule 9.10 to the Information Certificate; provided, that, as to such loans and advances, (i) Borrower shall not, directly or indirectly, amend, modify, alter or change the terms of such loans and advances or any
agreement, document or instrument related thereto and (ii) Borrower shall furnish to Agent all notices or demands in connection with such loans and advances either received by Borrower or on its behalf, promptly after the receipt thereof, or sent by
Borrower or on its behalf, concurrently with the sending thereof, as the case may be.
          9.11  
Dividends and Redemptions. Borrower shall not, directly or indirectly, declare or pay any dividends on account of any shares of class of any Capital Stock of Borrower now or hereafter outstanding, or
set aside or otherwise deposit or invest any sums for such purpose, or redeem, retire, defease, purchase or otherwise acquire any shares of any class of Capital Stock (or set aside or otherwise deposit or invest any sums for such purpose) for any
consideration or apply or set apart any sum, or make any other distribution (by reduction of capital or otherwise) in respect of any such shares or agree to do any of the foregoing, exceptthat:
                   (a)  Borrower may declare and pay
such dividends or redeem, retire, defease, purchase or otherwise acquire any shares of any class of Capital Stock for consideration in the form of shares of common stock (so long as after giving effect thereto no Change of Control or other Default
or Event of Default shall exist or occur);
                   (b)  Borrower may pay dividends to the extent
permitted in Section 9.12 below; 
                   (c)  Borrower may repurchase Capital Stock consisting of
common stock held by employees pursuant to any employee stock ownership plan thereof upon the termination, retirement or death of any such employee in accordance with the provisions of such plan, provided, that, as to any such repurchase, each of the following conditions is satisfied: (i) as of the date of the payment for such repurchase and after giving effect thereto, no Default or Event of
Default shall exist or have occurred and be continuing, (ii) such repurchase shall be paid with funds legally available therefor, (iii) such repurchase shall not violate any law or regulation or the terms of any indenture, agreement or
undertaking to which Borrower is a party or by which Borrower or its or their property are bound, and (iv) the aggregate amount of all payments for such repurchases in any calendar year shall not exceed $100,000.
          9.12  
Transactions with Affiliates. Borrower shall not, directly or indirectly: 
                   (a)  purchase, acquire or lease any property from, or sell, transfer or lease any property to, any officer,
director or other Affiliate of Borrower, except in the ordinary course of and pursuant to the reasonable requirements of Borrower’s business (as the case may be) and upon fair and reasonable terms no less favorable to Borrower than Borrower
would obtain in a comparable arm’s length transaction with an unaffiliated person; or
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                      (b)  make any payments (whether by dividend, loan
or otherwise) of management, consulting or other fees for management or similar services, or of any Indebtedness owing to any officer, employee, shareholder, director or any other Affiliate of Borrower, except reasonable compensation to officers, employees and directors for services rendered to Borrower in the ordinary course of business.
          9.13  
Compliance with ERISA. Borrower shall, and shall cause each of its ERISA Affiliates, to: (a) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the
Code and other Federal and State law; (b) cause each Plan which is qualified under Section 401(a) of the Code to maintain such qualification; (c) not terminate any of such Plans so as to incur any material liability to the Pension Benefit
Guaranty Corporation; (d) not allow or suffer to exist any prohibited transaction involving any of such Plans or any trust created thereunder which would subject Borrower or such ERISA Affiliate to a material tax or penalty or other liability
on prohibited transactions imposed under Section 4975 of the Code or ERISA; (e) make all required contributions to any Plan which it is obligated to pay under Section 302 of ERISA, Section 412 of the Code or the terms of such Plan; (f) not
allow or suffer to exist any accumulated funding deficiency, whether or not waived, with respect to any such Plan; or (g) allow or suffer to exist any occurrence of a reportable event or any other event or condition which presents a material
risk of termination by the Pension Benefit Guaranty Corporation of any such Plan that is a single employer plan, which termination could result in any material liability to the Pension Benefit Guaranty Corporation.
          9.14  
End of Fiscal Years; Fiscal Quarters. Borrower shall, for financial reporting purposes, cause its, and each of its Subsidiaries’ (a) fiscal years to end on December 31 of each year and
(b) fiscal quarters to end on March 31, June 30, September 30 and December 31 of each year.
          9.15  Change in
Business. Borrower shall not engage in any business other than the business of Borrower on the date hereof and any business reasonably related, ancillary or complimentary to the business in which Borrower is engaged on the
date hereof.
          9.16  
Limitation of Restrictions Affecting Subsidiaries. Borrower shall not, directly, or indirectly, create or otherwise cause or suffer to exist any encumbrance or restriction which prohibits or limits the
ability of any Subsidiary of Borrower to (a) pay dividends or make other distributions or pay any Indebtedness owed to Borrower or any Subsidiary of Borrower; (b) make loans or advances to Borrower or any Subsidiary of Borrower,
(c) transfer any of its properties or assets to Borrower or any Subsidiary of Borrower; or (d) create, incur, assume or suffer to exist any lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other
than encumbrances and restrictions arising under (i) applicable law, (ii) this Agreement, (iii) customary provisions restricting subletting or assignment of any lease governing a leasehold interest of Borrower or any Subsidiary of
Borrower, (iv) customary restrictions on dispositions of real property interests found in reciprocal easement agreements of Borrower or any Subsidiary of Borrower, (v) any agreement relating to permitted Indebtedness incurred by a
Subsidiary of Borrower prior to the date on which such Subsidiary was acquired by Borrower and outstanding on such acquisition date, and (vi) the extension or continuation of contractual obligations in existence on the date hereof;
provided, that, any such encumbrances or
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   restrictions contained in such extension or continuation are no less favorable to Agent and Lenders than those encumbrances and restrictions under or pursuant to the
contractual obligations so extended or continued.
          9.17  
Minimum EBITDA. At any time that the Excess Availability of Borrower is less than $17,500,000, the EBITDA of Borrower for the immediately preceding three (3) consecutive month period (treated as a
single accounting period) ending on the dates set forth below shall not be less than the corresponding Minimum EBITDA amount set forth below:

	Minimum EBITDA Amounts*
	Date	 	 	 	 
	October 31, 2002	$2,000	 	 	 
	November 30, 2002	$508,000	 	 	 
	December 31, 2002	$1,160,000	 	 	 
	January 31, 2003	$1,401,000	 	 	 
	February 28, 2003	$1,821,000	 	 	 
	March 31, 2003	$2,362,000	 	 	 
	April 30, 2003	$2,467,000	 	 	 
	May 31, 2003	$2,652,000	 	 	 
	June 30, 2003	$2,888,000	 	 	 
	July 31, 2003	$3,048,000	 	 	 
	August 31, 2003	$3,329,000	 	 	 
	September 30, 2003	$3,689,000	 	 	 
	October 31, 2003	$4,043,000	 	 	 
	November 30, 2003	$4,663,000	 	 	 
	December 31, 2003, and as at the end of each calendar month thereafter	$5,460,000	 	 	 

 
 
          9.18  
License Agreements.
 * Portions of Exhibit have been deleted and filed separately with the Securities and Exchange Commission pursuant to the Company's request for
confidential treatment pursuant to Rule 24b-2 promulgated under the Securities Exchange Act.
  
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                      (a)  Borrower shall (i) promptly and
faithfully observe and perform all of the material terms, covenants, conditions and provisions of the material License Agreements to which it is a party to be observed and performed by it, at the times set forth therein, if any, (ii) not do,
permit, suffer or refrain from doing anything that could reasonably be expected to result in a default under or breach of any of the terms of any material License Agreement, (iii) not cancel, surrender, modify, amend, waive or release any
material License Agreement in any material respect or any term, provision or right of the licensee thereunder in any material respect, or consent to or permit to occur any of the foregoing; except,
that, subject to Section 9.18(b) below, Borrower may cancel, surrender or release any material License Agreement in the ordinary course of the business of Borrower; provided, that, Borrower (as the case may be) shall give Agent not less than thirty (30) days prior written notice of its intention to so cancel, surrender and release any
such material License Agreement, (iv) give Agent prompt written notice of any material License Agreement entered into by Borrower after the date hereof, together with a true, correct and complete copy thereof and such other information with
respect thereto as Agent may request, (v) give Agent prompt written notice of any material breach of any obligation, or any default, by any party under any material License Agreement, and deliver to Agent (promptly upon the receipt thereof by
Borrower in the case of a notice to Borrower and concurrently with the sending thereof in the case of a notice from Borrower ) a copy of each notice of default and every other notice and other communication received or delivered by Borrower in
connection with any material License Agreement which relates to the right of Borrower to continue to use the property subject to such License Agreement, and (vi) furnish to Agent, promptly upon the request of Agent, such information and
evidence as Agent may reasonably require from time to time concerning the observance, performance and compliance by Borrower or the other party or parties thereto with the material terms, covenants or provisions of any material License
Agreement.
                   (b)  Borrower will either exercise any option to renew or extend the term of each
material License Agreement to which it is a party in such manner as will cause the term of such material License Agreement to be effectively renewed or extended for the period provided by such option and give prompt written notice thereof to Agent
or give Agent prior written notice that Borrower does not intend to renew or extend the term of any such material License Agreement or that the term thereof shall otherwise be expiring, not less than sixty (60) days prior to the date of any such
non-renewal or expiration. In the event of the failure of Borrower to extend or renew any material License Agreement to which it is a party, Agent shall have, and is hereby granted, the irrevocable right and authority, at its option, to renew or
extend the term of such material License Agreement, whether in its own name and behalf, or in the name and behalf of a designee or nominee of Agent or in the name and behalf of Borrower, as Agent shall determine at any time that an Event of Default
shall exist or have occurred and be continuing. Agent may, but shall not be required to, perform any or all of such obligations of Borrower under any of the License Agreements, including, but not limited to, the payment of any or all sums due from
Borrower thereunder. Any sums so paid by Agent shall constitute part of the Obligations.
          9.19  
Extension of Maturity Date of Indenture. Borrower shall extend the maturity date of the Senior Subordinated Indenture and Senior Subordinated Note from August 1, 2004 to a date not earlier than November
30, 2005 pursuant to the terms and provisions of a written agreement
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    (the “Senior Subordinated Indenture Extension Agreement”), which Senior Subordinated Indenture Extension Agreement (a) shall be duly executed and valid and
binding upon the Indenture Trustee, Borrower and the Holders of the Securities (as such terms re defined in the Senior Subordinated Indenture), (b) shall extend the maturity date of the Senior Subordinated Indenture and Senior Subordinated Note from
August 1, 2004 to a date not earlier than November 30, 2005, (c) shall not require Borrower to make payments in respect of the principal balance of such Indebtedness (or any fees other than reasonably and customary fees) during the term of this
Agreement, (d) shall not increase the principal amount of the Indebtedness under the Senior Subordinated Notes, (e) shall not include terms and conditions that affect or limit the ability of Borrower to borrow from Agent and Lenders, to amend,
supplement or extend any of the terms of the financing arrangements of Agent and Lenders with Borrower pursuant to the terms hereof and of the other Financing Agreements or contain any other terms and conditions that are more restrictive or
burdensome with respect to Borrower in any material respect than those included in the Senior Subordinated Indenture or Senior Subordinated Notes as in effect on the date hereof, and (f) shall be in form and substance satisfactory to Agent and
Lenders in all respects. 
          9.20  
Tampa Sale-Leaseback Transaction. (a) Notwithstanding anything to the contrary contained in this Agreement, Borrower shall, on or prior to January 31, 2003, be permitted to sell the Tampa Real Property
in connection with the Tampa Sale-Leaseback Transaction, provided, that, (i) Agent shall have received not less than ten (10) Business Days prior written
notice of any such proposed transaction which notice shall set forth, in reasonable detail, the terms of the Tampa Sale-Leaseback Transaction, (ii) the sale is a single, bona fide arms-length transaction to a Person that is not an Affiliate of Borrower, (iii) Agent shall have received such information with respect thereto as Agent may request, (iv) Agent shall have received true, correct
and complete copies of all agreements, documents and instruments relating to the Tampa Sale-Leaseback Transaction, (v) the closing of the Tampa Sale-Leaseback Transaction shall occur on or prior to January 31, 2003, (vi) the aggregate purchase price
for the Tampa Real Property shall not be less than $8,000,000, (vii) the net cash proceeds from such sale, after payment of any Indebtedness outstanding as of the date hereof which is secured by the Tampa Real Property, shall be immediately remitted
to Agent for application against the Obligations in such order and manner as Agent shall elect and may be reborrowed subject to the provisions of Section 2.1, (viii) if applicable, Borrower pledges and assigns to Agent, for the ratable benefit of
Lenders, as additional security for the Obligations, any documents, notes or instruments evidencing the deferred portion of the purchase price, (ix) no Default or Event of Default exists, immediately prior to and after giving effect to the Tampa
Sale-Leaseback Transaction, and (x) the purchaser of the Tampa Real Property shall deliver to Agent a Collateral Access Agreement, which shall be in form and substance satisfactory to Agent. 
                   (b)  In the event that the Tampa Sale-Leaseback Transaction does not close by January 31, 2003, if Borrower
elects to sell the Tampa Real Property after February 1, 2003, Agent and Lenders agree to consent to such sale provided, that, (i) Agent shall have
received not less than ten (10) Business Days prior written notice of any such proposed transaction which notice shall set forth, in reasonable detail, the terms of such sale, (ii) the sale is a single, bona fide arms-length transaction to a Person that is not an Affiliate of Borrower, (iii) Agent shall have received 
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   such information with respect thereto as Agent may request, (iv) Agent shall have received true, correct and complete copies of all agreements, documents and
instruments relating to such sale, (v) the aggregate purchase price for the Tampa Real Property shall not be less than $8,000,000, (vi) if applicable, Borrower pledges and assigns to Agent, for the ratable benefit of Lenders, as additional
security for the Obligations, any documents, notes or instruments evidencing the deferred portion of the purchase price, (vii) no Default or Event of Default exists, immediately prior to and after giving effect to such sale, and (viii) the purchaser
of the Tampa Real Property shall deliver to Agent a Collateral Access Agreement, which shall be in form and substance satisfactory to Agent. In addition to and not in limitation of the foregoing, the net cash proceeds from such sale, after payment
of any Indebtedness outstanding as of the date hereof which is secured by the Tampa Real Property shall be immediately remitted to Agent for application against the Obligations in such order and manner as Agent shall elect and, after the
establishment by Agent of a Reserve in the amount of $2,000,000 (which Reserve shall be in addition to and not in limitation of any other Reserves established under this Agreement) may be reborrowed subject to the provisions of Section
2.1.
          9.21  
After Acquired Real Property. If Borrower hereafter acquires any Real Property, fixtures or any other property that is of the kind or nature described in the Mortgages and such Real Property, fixtures
or other property is adjacent to, contiguous with or necessary or related to or used in connection with any Real Property then subject to a Mortgage, or if such Real Property is not adjacent to, contiguous with or related to or used in connection
with such Real Property, then if such Real Property, fixtures or other property at any location (or series of adjacent, contiguous or related locations, and regardless of the number of parcels) has a fair market value in an amount equal to or
greater than $500,000 (or if a Default or Event of Default exists, then regardless of the fair market value of such assets), without limiting any other rights of Agent or any Lender, or duties or obligations of Borrower, promptly upon Agent’s
request, Borrower shall execute and deliver to Agent a mortgage, deed of trust or deed to secure debt, as Agent may determine, in form and substance substantially similar to the Mortgages and as to any provisions relating to specific state laws
satisfactory to Agent and in form appropriate for recording in the real estate records of the jurisdiction in which such Real Property or other property is located granting to Agent a first and only lien and mortgage on and security interest in such
Real Property, fixtures or other property (except as Borrower would otherwise be permitted to incur hereunder or under the Mortgages or as otherwise consented to in writing by Agent) and such other agreements, documents and instruments as Agent may
require in connection therewith.
          9.22  
Costs and Expenses. Borrower shall pay to Agent on demand all costs, expenses, filing fees and taxes paid or payable in connection with the preparation, negotiation, execution, delivery, recording,
administration, collection, liquidation, enforcement and defense of the Obligations, Agent’s rights in the Collateral, this Agreement, the other Financing Agreements and all other documents related hereto or thereto, including any amendments,
supplements or consents which may hereafter be contemplated (whether or not executed) or entered into in respect hereof and thereof, including: (a) all costs and expenses of filing or recording (including Uniform Commercial Code financing statement
filing taxes and fees, documentary taxes, intangibles taxes and mortgage recording taxes and fees, if applicable); (b) costs and expenses 
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   and fees for insurance premiums, appraisal fees and search fees, costs and expenses of remitting loan proceeds, collecting checks and other items of payment, and
establishing and maintaining the Blocked Accounts, together with Agent’s customary charges and fees with respect thereto; (c) charges, fees or expenses charged by any bank or issuer in connection with the Letter of Credit Accommodations; (d)
costs and expenses of preserving and protecting the Collateral; (e) costs and expenses paid or incurred in connection with obtaining payment of the Obligations, enforcing the security interests and liens of Agent, selling or otherwise realizing upon
the Collateral, and otherwise enforcing the provisions of this Agreement and the other Financing Agreements or defending any claims made or threatened against Agent or any Lender arising out of the transactions contemplated hereby and thereby
(including preparations for and consultations concerning any such matters); (f) all out-of-pocket expenses and costs heretofore and from time to time hereafter incurred by Agent during the course of periodic field examinations of the Collateral and
Borrower ‘s operations, plus a per diem charge at the then standard rate for Agent’s field examiners in the field and office (which rate as of the date hereof is of $750 per person per day); and (g) the fees and disbursements of counsel
(including legal assistants) to Agent in connection with any of the foregoing.
          9.23  
Further Assurances. At the request of Agent at any time and from time to time, Borrower shall, at its expense, duly execute and deliver, or cause to be duly executed and delivered, such further
agreements, documents and instruments, and do or cause to be done such further acts as may be necessary or proper to evidence, perfect, maintain and enforce the security interests and the priority thereof in the Collateral and to otherwise
effectuate the provisions or purposes of this Agreement or any of the other Financing Agreements. Agent may at any time and from time to time request a certificate from an officer of Borrower representing that all conditions precedent to the making
of Loans and providing Letter of Credit Accommodations contained herein are satisfied. In the event of such request by Agent, Agent and Lenders may, at Agent’s option, cease to make any further Loans or provide any further Letter of Credit
Accommodations until Agent has received such certificate and, in addition, Agent has determined that such conditions are satisfied. 
 SECTION 10.      
EVENTS OF DEFAULT AND REMEDIES
          10.1  
Events of Default. The occurrence or existence of any one or more of the following events are referred to herein individually as an “Event of Default”, and collectively as “Events of
Default”: 
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                      (a)  (i)  Borrower fails to pay any of
the Obligations when due or (ii) Borrower fails to perform any of the covenants contained in Sections 9.4, 9.14, 9.15, and 9.16 of this Agreement and such failure shall continue for ten (10) days; provided, that, such ten (10) day period shall not apply in the case of: (A) any failure to observe any such covenant which is not capable of being cured at all or within such ten (10) day period or
which has been the subject of a prior failure within a six (6) month period or (B) an intentional breach by Borrower of any such covenant or (iii) Borrower fails to perform any of the covenants contained in Section 9.3 of this Agreement
and such failure shall continue for forty-five (45) days, after giving effect to any extensions of time allowed by any Governmental Authority; provided, that, such forty-five (45) day period shall not apply in the case of: (A) any failure to observe any such covenant which is not capable of being cured at all or within such forty-five (45) day period or which has been the subject of a prior
failure within a six (6) month period or (B) an intentional breach by Borrower of any such covenant or (iv) Borrower fails to perform any of the covenants contained in Section 9.13 of this Agreement and such failure shall continue for
sixty (60) days; provided, that, such sixty (60) day period shall not apply in the case of: (A) any failure to observe any such covenant which is not
capable of being cured at all or within such sixty (60) day period or which has been the subject of a prior failure within a six (6) month period or (B) an intentional breach by Borrower of any such covenant, or (v) Borrower fails to
perform any of the terms, covenants, conditions or provisions contained in this Agreement or any of the other Financing Agreements other than those described in Sections 10.1(a)(i),(ii), (iii) and (iv) above;
                   (b)  any representation, warranty or statement of fact made by Borrower to Agent in this Agreement, the
other Financing Agreements or any other written agreement, schedule, confirmatory assignment or otherwise shall when made or deemed made be false or misleading in any material respect; 
                   (c)  any Obligor revokes or terminates, or purports to revoke or terminate, or fails to perform any of the
terms, covenants, conditions or provisions of any guarantee, endorsement or other agreement of such party in favor of Agent or any Lender;
                   (d)  any judgment for the payment of money is rendered against Borrower or any Obligor in excess of
$100,000 in any one case or in excess of $500,000 in the aggregate (to the extent not covered by insurance where the insurer has assumed responsibility in writing for such judgment) and shall remain undischarged or unvacated for a period in excess
of thirty (30) days or execution shall at any time not be effectively stayed, or any judgment other than for the payment of money, or injunction, attachment, garnishment or execution is rendered against Borrower or any Obligor or any of the
Collateral having a value in excess of $100,000;
                   (e)  any Obligor (being a natural person or
a general partner of an Obligor which is a partnership) dies or Borrower or any Obligor, which is a partnership, limited liability company, limited liability partnership or a corporation, dissolves or suspends or discontinues doing
business;
                   (f)  Borrower or any Obligor makes an assignment for the benefit of creditors,
makes or sends notice of a bulk transfer or calls a meeting of its creditors or principal creditors in connection with a moratorium or adjustment of the Indebtedness due to them; 
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                      (g)  a case or proceeding under the bankruptcy
laws of the United States of America now or hereafter in effect or under any insolvency, reorganization, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at law or
in equity) is filed against Borrower or any Obligor or all or any part of its properties and such petition or application is not dismissed within thirty (30) days after the date of its filing or Borrower or any Obligor shall file any answer
admitting or not contesting such petition or application or indicates its consent to, acquiescence in or approval of, any such action or proceeding or the relief requested is granted sooner;
                   (h)  a case or proceeding under the bankruptcy laws of the United States of America now or hereafter in
effect or under any insolvency, reorganization, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at a law or equity) is filed by Borrower or any Obligor or for all
or any part of its property; 
                   (i)  any default under the Senior Subordinated Indenture or any
default in respect of any Indebtedness of Borrower or any Obligor (other than Indebtedness owing to Agent and Lenders hereunder), in any case in an amount in excess of $500,000, which default continues for more than the applicable cure period, if
any, with respect thereto and/or is not waived in writing by the other parties thereto, or any default by Borrower or any Obligor under any Material Contract, which default continues for more than the applicable cure period, if any, with respect
thereto and/or is not waived in writing by the other parties thereto;
                   (j)  any material
provision hereof or of any of the other Financing Agreements shall for any reason cease to be valid, binding and enforceable with respect to any party hereto or thereto (other than Agent) in accordance with its terms, or any such party shall
challenge the enforceability hereof or thereof, or shall assert in writing, or take any action or fail to take any action based on the assertion that any provision hereof or of any of the other Financing Agreements has ceased to be or is otherwise
not valid, binding or enforceable in accordance with its terms, or any security interest provided for herein or in any of the other Financing Agreements shall cease to be a valid and perfected first priority security interest in any of the
Collateral purported to be subject thereto (except as otherwise permitted herein or therein);
                   (k)  an ERISA Event shall occur which results in or could reasonably be expected to result in liability of Borrower in an aggregate amount in excess of $500,000;
                   (l)  any Change of Control;
                   (m)  the indictment by any Governmental Authority, or as Agent may reasonably and in good faith determine,
the threatened indictment by any Governmental Authority of Borrower or any Obligor of which Borrower, such Obligor or Agent receives notice, in either case, as to which there is a reasonable possibility of an adverse determination, in the good faith
determination of Agent, under any criminal statute, or commencement or threatened commencement of criminal or civil proceedings against Borrower or any Obligor, pursuant to which statute or proceedings the penalties or remedies sought or available
include forfeiture of
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    (i) any of the Collateral having a value in excess of $100,000, or (ii) any other property of Borrower which is necessary or material to the conduct of its
business;
                   (n)  the failure by Borrower to deliver to Agent a duly executed Senior
Subordinated Indenture Extension Agreement by June 30, 2004; 
                   (o)  there shall be a material
adverse change in the business, assets or prospects of Borrower or any Obligor after the date hereof; or
                   (p)  there shall be an event of default under any of the other Financing Agreements.
          10.2  
Remedies.
                   (a)  At any time an Event of Default
exists or has occurred and is continuing, Agent and Lenders shall have all rights and remedies provided in this Agreement, the other Financing Agreements, the UCC and other applicable law, all of which rights and remedies may be exercised without
notice to or consent by Borrower or any Obligor, except as such notice or consent is expressly provided for hereunder or required by applicable law. All rights, remedies and powers granted to Agent and Lenders hereunder, under any of the other
Financing Agreements, the UCC or other applicable law, are cumulative, not exclusive and enforceable, in Agent’s discretion, alternatively, successively, or concurrently on any one or more occasions, and shall include, without limitation, the
right to apply to a court of equity for an injunction to restrain a breach or threatened breach by Borrower or any Obligor of this Agreement or any of the other Financing Agreements. Subject to Section 12 hereof, Agent may, and at the direction of
the Required Lenders shall, at any time or times, proceed directly against Borrower or any Obligor to collect the Obligations without prior recourse to the Collateral.
                   (b)  Without limiting the foregoing, at any time an Event of Default exists or has occurred and is
continuing, Agent may, in its discretion, and upon the direction of the Required Lenders, shall (i) accelerate the payment of all Obligations and demand immediate payment thereof to Agent for itself and the ratable benefit of Lenders (provided,
that, upon the occurrence of any Event of Default described in Sections 10.1(g) and 10.1(h), all Obligations shall automatically become immediately due and payable), (ii) with or without judicial process or the aid or assistance of others, enter
upon any premises on or in which any of the Collateral may be located and take possession of the Collateral or complete processing, manufacturing and repair of all or any portion of the Collateral, (iii) require Borrower or any Obligor, at
Borrower’s expense, to assemble and make available to Agent any part or all of the Collateral at any place and time designated by Agent, (iv) collect, foreclose, receive, appropriate, setoff and realize upon any and all Collateral, (v) remove
any or all of the Collateral from any premises on or in which the same may be located for the purpose of effecting the sale, foreclosure or other disposition thereof or for any other purpose, (vi) sell, lease, transfer, assign, deliver or otherwise
dispose of any and all Collateral (including entering into contracts with respect thereto, public or private sales at any exchange, broker’s board, at any office of Agent or elsewhere) at such prices or terms as Agent may deem reasonable, for
cash, upon credit or for future delivery, with the Agent having the right to purchase the whole or any part of the Collateral at any such public sale, all of the foregoing being free from any right or equity of redemption of Borrower or any Obligor,
which
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   right or equity of redemption is hereby expressly waived and released by Borrower and Obligors and/or (vii) terminate this Agreement. If any of the Collateral is
sold or leased by Agent upon credit terms or for future delivery, the Obligations shall not be reduced as a result thereof until payment therefor is finally collected by Agent. If notice of disposition of Collateral is required by law, ten (10) days
prior notice by Agent to Borrower designating the time and place of any public sale or the time after which any private sale or other intended disposition of Collateral is to be made, shall be deemed to be reasonable notice thereof and Borrower
waives any other notice. In the event Agent institutes an action to recover any Collateral or seeks recovery of any Collateral by way of prejudgment remedy, Borrower waives the posting of any bond which might otherwise be required. At any time an
Event of Default exists or has occurred and is continuing, upon Agent’s request, Borrower will either, as Agent shall specify, furnish cash collateral to the issuer to be used to secure and fund Agent’s reimbursement obligations to the
issuer in connection with any Letter of Credit Accommodations or furnish cash collateral to Agent for the Letter of Credit Accommodations. Such cash collateral shall be in the amount equal to one hundred ten (110%) percent of the amount of the
Letter of Credit Accommodations plus the amount of any fees and expenses payable in connection therewith through the end of the latest expiration date of such Letter of Credit Accommodations.
                   (c)  At any time or times that an Event of Default exists or has occurred and is continuing, Agent may, in
its discretion, and upon the direction of the Required Lenders, Agent shall, enforce the rights of Borrower or any Obligor against any account debtor, secondary obligor or other obligor in respect of any of the Accounts or other Receivables. Without
limiting the generality of the foregoing, Agent may, in its discretion, and upon the direction of the Required Lenders, Agent shall, at such time or times (i) notify any or all account debtors, secondary obligors or other obligors in respect thereof
that the Receivables have been assigned to Agent and that Agent has a security interest therein and Agent may direct any or all account debtors, secondary obligors and other obligors to make payment of Receivables directly to Agent, (ii) extend the
time of payment of, compromise, settle or adjust for cash, credit, return of merchandise or otherwise, and upon any terms or conditions, any and all Receivables or other obligations included in the Collateral and thereby discharge or release the
account debtor or any secondary obligors or other obligors in respect thereof without affecting any of the Obligations, (iii) demand, collect or enforce payment of any Receivables or such other obligations, but without any duty to do so, and Agent
and Lenders shall not be liable for any failure to collect or enforce the payment thereof nor for the negligence of its agents or attorneys with respect thereto and (iv) take whatever other action Agent may deem necessary or desirable for the
protection of its interests and the interests of Lenders. At any time that an Event of Default exists or has occurred and is continuing, at Agent’s request, all invoices and statements sent to any account debtor shall state that the Accounts
and such other obligations have been assigned to Agent and are payable directly and only to Agent and Borrower shall deliver to Agent such originals of documents evidencing the sale and delivery of goods or the performance of services giving rise to
any Accounts as Agent may require. In the event any account debtor returns Inventory when an Event of Default exists or has occurred and is continuing, Borrower shall, upon Agent’s request, hold the returned Inventory in trust for Agent,
segregate all returned Inventory from all of its other property, dispose of the returned Inventory solely according to Agent’s instructions,
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   and not issue any credits, discounts or allowances with respect thereto without Agent’s prior written consent. 
                   (d)  To the extent that applicable law imposes duties on Agent or any Lender to exercise remedies in a
commercially reasonable manner (which duties cannot be waived under such law), Borrower acknowledges and agrees that it is not commercially unreasonable for Agent or any Lender (i) to fail to incur expenses reasonably deemed significant by Agent or
any Lender to prepare Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be
disposed of, or to obtain or, if not required by other law, to fail to obtain consents of any Governmental Authority or other third party for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise
collection remedies against account debtors, secondary obligors or other persons obligated on Collateral or to remove liens or encumbrances on or any adverse claims against Collateral, (iv) to exercise collection remedies against account debtors and
other persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the
Collateral is of a specialized nature, (vi) to contact other persons, whether or not in the same business as Borrower, for expressions of interest in acquiring all or any portion of the Collateral, (vii) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in the Collateral or that
have the reasonable capability of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, (xi) to purchase insurance or credit enhancements to
insure Agent or Lenders against risks of loss, collection or disposition of Collateral or to provide to Agent or Lenders a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by Agent, to
obtain the services of other brokers, investment bankers, consultants and other professionals to assist Agent in the collection or disposition of any of the Collateral. Borrower acknowledges that the purpose of this Section is to provide
non-exhaustive indications of what actions or omissions by Agent or any Lender would not be commercially unreasonable in the exercise by Agent or any Lender of remedies against the Collateral and that other actions or omissions by Agent or any
Lender shall not be deemed commercially unreasonable solely on account of not being indicated in this Section. Without limitation of the foregoing, nothing contained in this Section shall be construed to grant any rights to Borrower or to impose any
duties on Agent or Lenders that would not have been granted or imposed by this Agreement or by applicable law in the absence of this Section.
                   (e)  For the purpose of enabling Agent to exercise the rights and remedies hereunder, Borrower hereby
grants to Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable at any time an Event of Default shall exist or have occurred and for so long as the same is continuing) without payment of royalty or other compensation to
Borrower, to use, assign, license or sublicense any of the trademarks, service-marks, trade names, business names, trade styles, designs, logos and other source of business identifiers and other Intellectual Property and general intangibles now
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   Borrower, wherever the same maybe located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to
all computer programs used for the compilation or printout thereof.
                   (f)  Agent may apply the
cash proceeds of Collateral actually received by Agent from any sale, lease, foreclosure or other disposition of the Collateral to payment of the Obligations, in whole or in part and in such order as Agent may elect, whether or not then due.
Borrower and Obligors shall remain liable to Agent and Lenders for the payment of any deficiency with interest at the highest rate provided for herein and all costs and expenses of collection or enforcement, including attorneys’ fees and
expenses.
                   (g)  Without limiting the foregoing, upon the occurrence of a Default or an Event
of Default, (i) Agent and Lenders may, at Agent’s option, and upon the occurrence of an Event of Default, at the direction of the Required Lenders, Agent and Lenders shall, without notice, (A) cease making Loans or arranging for Letter of
Credit Accommodations or reduce the lending formulas or amounts of Loans and Letter of Credit Accommodations available to Borrower and/or (B) terminate any provision of this Agreement providing for any future Loans or Letter of Credit Accommodations
to be made by Agent and Lenders to Borrower, and (ii) Agent may, at its option, establish such Reserves as Agent determines without limitation or restriction, notwithstanding anything to the contrary provided herein.
 SECTION 11.      
JURY TRIAL WAIVER; OTHER WAIVERSAND CONSENTS; GOVERNING LAW
          11.1  
Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver.
                   (a)  The validity, interpretation and enforcement of this Agreement and the other Financing Agreements
(other than the Mortgages to the extent provided therein) and any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of Florida but
excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of Florida.
                   (b)  Borrower, Agent and Lenders irrevocably consent and submit to the non-exclusive jurisdiction of the
Circuit Court of Dade County, Florida and the United States District Court for the Southern District of Florida, whichever Agent may elect, and waive any objection based on venue or forum non conveniens with respect to any action instituted therein arising under this Agreement or any of the other Financing Agreements or in
any way connected with or related or incidental to the dealings of the parties hereto in respect of this Agreement or any of the other Financing Agreements or the transactions related hereto or thereto, in each case whether now existing or hereafter
arising, and whether in contract, tort, equity or otherwise, and agree that any dispute with respect to any such matters shall be heard only in the courts described above (except that Agent and Lenders shall have the right to bring any action or
proceeding against Borrower or any Obligor or its or their property in the courts of any other jurisdiction which Agent deems necessary or appropriate in order to realize on the Collateral or to otherwise enforce its rights against Borrower or any
Obligor or its or their property).
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                      (c)  Borrower hereby waives personal service of
any and all process upon it and consents that all such service of process may be made by certified mail (return receipt requested) directed to its address set forth herein and service so made shall be deemed to be completed five (5) days after the
same shall have been so deposited in the U.S. mails, or, at Agent’s option, by service upon Borrower in any other manner provided under the rules of any such courts. Within thirty (30) days after such service, Borrower shall appear in answer to
such process, failing which Borrower shall be deemed in default and judgment may be entered by Agent against Borrower for the amount of the claim and other relief requested.
                   (d)  BORROWER, AGENT AND LENDERS EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING
AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. BORROWER, AGENT AND LENDERS EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT BORROWER, AGENT OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
                   (e)  Agent and Lenders shall not have
any liability to Borrower or any Obligor (whether in tort, contract, equity or otherwise) for losses suffered by Borrower in connection with, arising out of, or in any way related to the transactions or relationships contemplated by this Agreement,
or any act, omission or event occurring in connection herewith, unless it is determined by a final and non-appealable judgment or court order binding on Agent and such Lender, that the losses were the result of acts or omissions constituting gross
negligence or willful misconduct. In any such litigation, Agent and Lenders shall be entitled to the benefit of the rebuttable presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of
this Agreement. Borrower: (i) certifies that neither Agent, any Lender nor any representative, agent or attorney acting for or on behalf of Agent or any Lender has represented, expressly or otherwise, that Agent and Lenders would not, in the event
of litigation, seek to enforce any of the waivers provided for in this Agreement or any of the other Financing Agreements and (ii) acknowledges that in entering into this Agreement and the other Financing Agreements, Agent and Lenders are relying
upon, among other things, the waivers and certifications set forth in this Section 11.1 and elsewhere herein and therein.
          11.2  
Waiver of Notices. Borrower hereby expressly waives demand, presentment, protest and notice of protest and notice of dishonor with respect to any and all instruments and chattel paper, included in
or evidencing any of the Obligations or the Collateral, and any and all other demands and notices of any kind or nature whatsoever with respect to the Obligations, the Collateral and this Agreement, except such as are expressly provided for herein.
No notice to or 
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   demand on Borrower which Agent or any Lender may elect to give shall entitle Borrower to any other or further notice or demand in the same, similar or other
circumstances.
          11.3  
Amendments and Waivers.
                   (a)  Neither this
Agreement nor any other Financing Agreement nor any terms hereof or thereof may be amended, waived, discharged or terminated unless such amendment, waiver, discharge or termination is in writing signed by Agent and the Required Lenders or at
Agent’s option, by Agent with the authorization of the Required Lenders, and as to amendments to any of the Financing Agreements (other than with respect to any provision of Section 12 hereof), by Borrower; except, that, no such amendment, waiver, discharge or termination shall:
                            (i)  reduce the interest rate or any fees or extend
the time of payment of principal, interest or any fees or reduce the principal amount of any Loan or Letter of Credit Accommodations, in each case without the consent of each Lender directly affected thereby,
                            (ii)  increase the Commitment of any Lender over the
amount thereof then in effect or provided hereunder, in each case without the consent of the Lender directly affected thereby,
                            (iii)  release any Collateral (except as expressly
required hereunder or under any of the other Financing Agreements or applicable law and except as permitted under Section 12.11(b) hereof), or modify the provisions of Sections 12.8(a) or 12.11(a)(ii) without the consent of Agent and all of Lenders,

                            (iv)  reduce any percentage specified
in the definition of Required Lenders, without the consent of Agent and all of Lenders,
                            (v)  consent to the assignment or transfer by
Borrower or any Obligor of any of their rights and obligations under this Agreement, without the consent of Agent and all of Lenders,
                            (vi)  amend, modify or waive any terms of this
Section 11.3 hereof, without the consent of Agent and all of Lenders, or 
                            (vii)  increase the advance rates constituting part
of the Borrowing Base, without the consent of Agent and all of Lenders.
                   (b)  Agent and
Lenders shall not, by any act, delay, omission or otherwise be deemed to have expressly or impliedly waived any of its or their rights, powers and/or remedies unless such waiver shall be in writing and signed as provided herein. Any such waiver
shall be enforceable only to the extent specifically set forth therein. A waiver by Agent or any Lender of any right, power and/or remedy on any one occasion shall not be construed as a bar to or waiver of any such right, power and/or remedy which
Agent or any Lender would otherwise have on any future occasion, whether similar in kind or otherwise.
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                      (c)  Notwithstanding anything to the contrary
contained in Section 11.3(a) above, in connection with any amendment, waiver, discharge or termination, in the event that any Lender whose consent thereto is required shall fail to consent or fail to consent in a timely manner (such Lender being
referred to herein as a “Non-Consenting Lender”), but the consent of any other Lenders to such amendment, waiver, discharge or termination that is required are obtained, if any, then Congress shall have the right, but not the obligation,
at any time thereafter, and upon the exercise by Congress of such right, such Non-Consenting Lender shall have the obligation, to sell, assign and transfer to Congress or such Eligible Transferee as Congress may specify, the Commitment of such
Non-Consenting Lender and all rights and interests of such Non-Consenting Lender pursuant thereto. Congress shall provide the Non-Consenting Lender with prior written notice of its intent to exercise its right under this Section, which notice shall
specify on date on which such purchase and sale shall occur. Such purchase and sale shall be pursuant to the terms of an Assignment and Acceptance (whether or not executed by the Non-Consenting Lender), except that on the date of such purchase and
sale, Congress, or such Eligible Transferee specified by Congress, shall pay to the Non-Consenting Lender the amount equal to: (i) the principal balance of the Loans held by the Non-Consenting Lender outstanding as of the close of business on the
business day immediately preceding the effective date of such purchase and sale, plus (ii) amounts accrued and unpaid in respect of interest and fees payable to the Non-Consenting Lender to the effective date of the purchase (but in no event shall
the Non-Consenting Lender be deemed entitled to any early termination fee), minus (iii) the amount of the closing fee received by the Non-Consenting Lender pursuant to the terms hereof or of any of the other Financing Agreements multiplied by the
fraction, the numerator of which is the number of months remaining in the then current term of the Credit Facility and the denominator of which is the number of months in the then current term thereof. Such purchase and sale shall be effective on
the date of the payment of such amount to the Non-Consenting Lender and the Commitment of the Non-Consenting Lender shall terminate on such date.
                   (d)  The consent of Agent shall be required for any amendment, waiver or consent affecting the rights or
duties of Agent hereunder or under any of the other Financing Agreements, in addition to the consent of the Lenders otherwise required by this Section and the exercise by Agent of any of its rights hereunder with respect to Reserves or Eligible
Accounts or Eligible Inventory shall not be deemed an amendment to the advance rates provided for in this Section 11.3.
          11.4  
Waiver of Counterclaims. Borrower waives all rights to interpose any claims, deductions, setoffs or counterclaims of any nature (other then compulsory counterclaims) in any action or proceeding with
respect to this Agreement, the Obligations, the Collateral or any matter arising therefrom or relating hereto or thereto.
          11.5  
Indemnification. Borrower shall indemnify and hold Agent and each Lender, and its officers, directors, agents, employees, advisors and counsel and their respective Affiliates (each such person being an
“Indemnitee”), harmless from and against any and all losses, claims, damages, liabilities, costs or expenses (including attorneys’ fees and expenses) imposed on, incurred by or asserted against any of them in connection with any
litigation, investigation, claim or proceeding commenced or threatened related to the negotiation, preparation, execution, 
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   delivery, enforcement, performance or administration of this Agreement, any other Financing Agreements, or any undertaking or proceeding related to any of the
transactions contemplated hereby or any act, omission, event or transaction related or attendant thereto, including amounts paid in settlement, court costs, and the fees and expenses of counsel except that Borrower shall not have any obligation
under this Section 11.5 to indemnify an Indemnitee with respect to a matter covered hereby resulting from the gross negligence or wilful misconduct of such Indemnitee as determined pursuant to a final, non-appealable order of a court of competent
jurisdiction (but without limiting the obligations of Borrower as to any other Indemnitee). To the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section may be unenforceable because it violates any law or public
policy, Borrower shall pay the maximum portion which it is permitted to pay under applicable law to Agent and Lenders in satisfaction of indemnified matters under this Section. To the extent permitted by applicable law, Borrower shall not assert,
and Borrower hereby waives any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this
Agreement, any of the other Financing Agreements or any undertaking or transaction contemplated hereby. All amounts due under this Section shall be payable upon demand. The foregoing indemnity shall survive the payment of the Obligations and the
termination or non-renewal of this Agreement.
 SECTION 12.      
THE AGENT
          12.1  
Appointment, Powers and Immunities. Each Lender irrevocably designates, appoints and authorizes Congress to act as Agent hereunder and under the other Financing Agreements with such powers as are
specifically delegated to Agent by the terms of this Agreement and of the other Financing Agreements, together with such other powers as are reasonably incidental thereto. Agent (a) shall have no duties or responsibilities except those expressly set
forth in this Agreement and in the other Financing Agreements, and shall not by reason of this Agreement or any other Financing Agreement be a trustee or fiduciary for any Lender; (b) shall not be responsible to Lenders for any recitals, statements,
representations or warranties contained in this Agreement or in any of the other Financing Agreements, or in any certificate or other document referred to or provided for in, or received by any of them under, this Agreement or any other Financing
Agreement, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Financing Agreement or any other document referred to or provided for herein or therein or for any failure by Borrower or
any Obligor or any other Person to perform any of its obligations hereunder or thereunder; and (c) shall not be responsible to Lenders for any action taken or omitted to be taken by it hereunder or under any other Financing Agreement or under any
other document or instrument referred to or provided for herein or therein or in connection herewith or therewith, except for its own gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent
jurisdiction. Agent may employ agents and attorneys-in-fact and shall not be responsible for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. Agent may deem and treat the payee of any note as the
holder thereof for all purposes hereof unless and until the assignment thereof pursuant to an agreement (if and to the extent permitted herein) in form and substance satisfactory to Agent shall have been delivered to and acknowledged by
Agent.
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            12.2  
Reliance by Agent. Agent shall be entitled to rely upon any certification, notice or other communication (including any thereof by telephone, telecopy, telex, telegram or cable) believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by Agent. As to any matters not expressly
provided for by this Agreement or any other Financing Agreement, Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions given by the Required Lenders or all of
Lenders as is required in such circumstance, and such instructions of such Agents and any action taken or failure to act pursuant thereto shall be binding on all Lenders.
          12.3  
Events of Default.
                   (a)  Agent shall not be
deemed to have knowledge or notice of the occurrence of a Default or an Event of Default or other failure of a condition precedent to the Loans and Letter of Credit Accommodations hereunder, unless and until Agent has received written notice from a
Lender, or a Borrower specifying such Event of Default or any unfulfilled condition precedent, and stating that such notice is a “Notice of Default or Failure of Condition”. In the event that Agent receives such a Notice of Default or
Failure of Condition, Agent shall give prompt notice thereof to the Lenders. Agent shall (subject to Section 12.7) take such action with respect to any such Event of Default or failure of condition precedent as shall be directed by the Required
Lenders; provided, that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, with respect to or by reason of such Event of Default or failure of condition precedent, as it shall deem advisable in the best interest of Lenders. 
                   (b)  Except with the prior written consent of Agent, no Lender may assert or exercise any enforcement right
or remedy in respect of the Loans, Letter of Credit Accommodations or other Obligations, as against Borrower or any Obligor or any of the Collateral or other property of Borrower or any Obligor.
          12.4  
Congress in its Individual Capacity. With respect to its Commitment and the Loans made and Letter of Credit Accommodations issued or caused to be issued by it (and any successor acting as Agent), so
long as Congress shall be a Lender hereunder, it shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as Agent, and the term “Lender” or “Lenders” shall,
unless the context otherwise indicates, include Congress in its individual capacity as Lender hereunder. Congress (and any successor acting as Agent) and its Affiliates may (without having to account therefor to any Lender) lend money to, make
investments in and generally engage in any kind of business with Borrower (and any of its Subsidiaries or Affiliates) as if it were not acting as Agent, and Congress and its Affiliates may accept fees and other consideration from Borrower or any
Obligor and any of its Subsidiaries and Affiliates for services in connection with this Agreement or otherwise without having to account for the same to Lenders.
          12.5  
Indemnification. Lenders agree to indemnify Agent (to the extent not reimbursed by Borrower hereunder and without limiting any obligations of Borrower hereunder) ratably, in 
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   accordance with their Pro Rata Shares, for any and all claims of any kind and nature whatsoever that may be imposed on, incurred by or asserted against Agent (including
by any Lender) arising out of or by reason of any investigation in or in any way relating to or arising out of this Agreement or any other Financing Agreement or any other documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby (including the costs and expenses that Agent is obligated to pay hereunder) or the enforcement of any of the terms hereof or thereof or of any such other documents, provided, that, no Lender shall be liable for any of the foregoing to the extent it arises from the gross negligence or willful misconduct of the party to be indemnified
as determined by a final non-appealable judgment of a court of competent jurisdiction. The foregoing indemnity shall survive the payment of the Obligations and the termination or non-renewal of this Agreement.
          12.6  
Non-Reliance on Agent and Other Lenders. Each Lender agrees that it has, independently and without reliance on Agent or other Lender, and based on such documents and information as it has deemed
appropriate, made its own credit analysis of Borrower and Obligors and has made its own decision to enter into this Agreement and that it will, independently and without reliance upon Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement or any of the other Financing Agreements. Agent shall not be required to keep itself informed
as to the performance or observance by Borrower or Obligor of any term or provision of this Agreement or any of the other Financing Agreements or any other document referred to or provided for herein or therein or to inspect the properties or books
of Borrower or any Obligor. Agent will use reasonable efforts to provide Lenders with any information received by Agent from Borrower or any Obligor which is required to be provided to Lenders hereunder and with a copy of any Notice of Default or
Failure of Condition received by Agent from Borrower or any Lender; provided, that, Agent shall not be liable to any Lender for any failure to do so,
except to the extent that such failure is attributable to Agent’s own gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. Except for notices, reports and other documents
expressly required to be furnished to Lenders by Agent hereunder, Agent shall not have any duty or responsibility to provide any Lender with any other credit or other information concerning the affairs, financial condition or business of Borrower or
any Obligor that may come into the possession of Agent.
          12.7  
Failure to Act. Except for action expressly required of Agent hereunder and under the other Financing Agreements, Agent shall in all cases be fully justified in failing or refusing to act hereunder and
thereunder unless it shall receive further assurances to its satisfaction from Lenders of their indemnification obligations under Section 12.5 hereof against any and all liability and expense that may be incurred by it by reason of taking or
continuing to take any such action.
          12.8  
Additional Loans. Agent shall not make any Revolving Loans or provide any Letter of Credit Accommodations to Borrower on behalf of Lenders intentionally and with actual knowledge that such Revolving
Loans or Letter of Credit Accommodations would cause the aggregate amount of the total outstanding Revolving Loans and Letter of Credit 
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   Accommodations to Borrower to exceed the Borrowing Base, without the prior consent of all Lenders, except,
that, Agent may make such additional Revolving Loans or provide such additional Letter of Credit Accommodations on behalf of Lenders, intentionally and with actual knowledge that such Revolving Loans or
Letter of Credit Accommodations will cause the total outstanding Revolving Loans and Letter of Credit Accommodations to Borrower to exceed the Borrowing Base, as Agent may deem necessary or advisable in its discretion, provided, that: (a) the total principal amount of the additional Revolving Loans or additional Letter of Credit Accommodations to Borrower which Agent may make or provide
after obtaining such actual knowledge that the aggregate principal amount of the Revolving Loans equal or exceed the Borrowing Base, plus the Special Agent Advances pursuant to Section 12.11(a)(ii) then outstanding, shall not cause the total of all
outstanding Loans and Letter of Credit Accommodations to exceed the amount of the Revolving Loans and Letter of Credit Accommodations available to Borrower hereunder by more than five (5%) percent of such amount and shall not cause the total
principal amount of the Revolving Loans and Letter of Credit Accommodations to exceed the Maximum Credit and (b) no such additional Revolving Loans or Letter of Credit Accommodations shall be outstanding more than sixty (60) days after the date such
additional Revolving Loan or Letter of Credit Accommodation is made or issued (as the case may be), except as the Required Lenders may otherwise agree. Each Lender shall be obligated to pay Agent the amount of its Pro Rata Share of any such
additional Revolving Loans or Letter of Credit Accommodations. 
          12.9  
Concerning the Collateral and the Related Financing Agreements. Each Lender authorizes and directs Agent to enter into this Agreement and the other Financing Agreements. Each Lender agrees that any
action taken by Agent or Required Lenders in accordance with the terms of this Agreement or the other Financing Agreements and the exercise by Agent or Required Lenders of their respective powers set forth therein or herein, together with such other
powers that are reasonably incidental thereto, shall be binding upon all of the Lenders.
          12.10  
Field Audit, Examination Reports and other Information; Disclaimer by Lenders. By signing this Agreement, each Lender:
                   (a)  is deemed to have requested that Agent furnish such Lender, promptly after it becomes available, a
copy of each field audit or examination report and a weekly report with respect to the Borrowing Base prepared by Agent (each field audit or examination report and monthly report with respect to the Borrowing Base being referred to herein as a
“Report” and collectively, “Reports”); 
                   (b)  expressly agrees and
acknowledges that Agent (A) does not make any representation or warranty as to the accuracy of any Report, or (B) shall not be liable for any information contained in any Report;
                   (c)  expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that
Agent or any other party performing any audit or examination will inspect only specific information regarding Borrower and any Obligor and will rely significantly 
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   upon Borrower’s and Obligors’ books and records, as well as on representations of Borrower’ and Obligors’ personnel; and
                   (d)  agrees to keep all Reports confidential and strictly for its internal use in accordance with the terms
of Section 13.5 hereof, and not to distribute or use any Report in any other manner.
          12.11  
Collateral Matters.
                   (a)  Agent may, at its
option, from time to time, at any time on or after an Event of Default and for so long as the same is continuing or upon any other failure of a condition precedent to the Loans and Letter of Credit Accommodations hereunder, make such disbursements
and advances (“Special Agent Advances”) which Agent, in its sole discretion, deems necessary or desirable either (i) to preserve or protect the Collateral or any portion thereof or (ii) to enhance the likelihood or maximize the amount of
repayment by Borrower of the Loans and other Obligations, provided, that, the aggregate principal amount of the Special Agent Advances pursuant to this
clause (ii), plus the then outstanding principal amount of the additional Loans and Letter of Credit Accommodations which Agent may make or provide as set forth in Section 12.8 hereof, shall not cause the total of all outstanding Loans and Letter of
Credit Accommodations to exceed the amount of the Revolving Loans and Letter of Credit Accommodations available to Borrower hereunder by more than five (5%) percent of such amount or (iii) to pay any other amount chargeable to Borrower or Obligor
pursuant to the terms of this Agreement or any of the other Financing Agreements consisting of costs, fees and expenses and payments to any issuer of Letter of Credit Accommodations. Special Agent Advances shall be repayable on demand and be secured
by the Collateral. Special Agent Advances shall not constitute Loans but shall otherwise constitute Obligations hereunder. Agent shall notify each Lender and Borrower in writing of each such Special Agent Advance, which notice shall include a
description of the purpose of such Special Agent Advance. Without limitation of its obligations pursuant to Section 6.10, each Lender agrees that it shall make available to Agent, upon Agent’s demand, in immediately available funds, the amount
equal to such Lender’s Pro Rata Share of each such Special Agent Advance. If such funds are not made available to Agent by such Lender, then such Lender shall be deemed a Defaulting Lender and Agent shall be entitled to recover such funds, on
demand from such Lender together with interest thereon for each day from the date such payment was due until the date such amount is paid to Agent at the Federal Funds Rate for each day during such period (as published by the Federal Reserve Bank of
New York or at Agent’s option based on the arithmetic mean determined by Agent of the rates for the last transaction in overnight Federal funds arranged prior to 9:00 a.m. (New York City time) on that day by each of the three leading brokers of
Federal funds transactions in New York City selected by Agent) and if such amounts are not paid within three (3) days of Agent’s demand, at the highest Interest Rate provided for in Section 3.1 hereof applicable to Prime Rate Loans.

                  (b)  Lenders hereby irrevocably authorize Agent, at its option and in its discretion to release any
security interest in, mortgage or lien upon, any of the Collateral (i) upon termination 
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   of the Commitments and payment and satisfaction of all of the Obligations and delivery of cash collateral to the extent required under Section 13.1 below, or
(ii) constituting property being sold or disposed of if Borrower certifies to Agent that the sale or disposition is made in compliance with Section 9.7 hereof (and Agent may rely conclusively on any such certificate, without further inquiry),
or (iii) constituting property in which Borrower or any Obligor did not own an interest at the time the security interest, mortgage or lien was granted or at any time thereafter, or (iv) having a value in the aggregate in any twelve (12) month
period of less than $5,000,000, or (v) if required under the terms of any of the other Financing Agreements, including any intercreditor agreement, or (vi) if approved, authorized or ratified in writing by all of Lenders. Except as provided
above, Agent will not release any security interest in, mortgage or lien upon, any of the Collateral without the prior written authorization of all of Lenders. Upon request by Agent at any time, Lenders will promptly confirm in writing Agent’s
authority to release particular types or items of Collateral pursuant to this Section.
                   (c)  Without in any manner limiting Agent’s authority to act without any specific or further authorization or consent by the Required Lenders, each Lender agrees to confirm in writing, upon request by Agent, the authority to
release Collateral conferred upon Agent under this Section. Agent shall (and is hereby irrevocably authorized by Lenders to) execute such documents as may be necessary to evidence the release of the security interest, mortgage or liens granted to
Agent upon any Collateral to the extent set forth above; provided, that, (i) Agent shall not be required to execute any such document on terms which,
in Agent’s opinion, would expose Agent to liability or create any obligations or entail any consequence other than the release of such security interest, mortgage or liens without recourse or warranty and (ii) such release shall not in any
manner discharge, affect or impair the Obligations or any security interest, mortgage or lien upon (or obligations of Borrower or any Obligor in respect of) the Collateral retained by Borrower or such Obligor.
                   (d)  Agent shall have no obligation whatsoever to any Lender or any other Person to investigate, confirm or
assure that the Collateral exists or is owned by Borrower or any Obligor or is cared for, protected or insured or has been encumbered, or that any particular items of Collateral meet the eligibility criteria applicable in respect of the Loans or
Letter of Credit Accommodations hereunder, or whether any particular reserves are appropriate, or that the liens and security interests granted to Agent pursuant hereto or any of the Financing Agreements or otherwise have been properly or
sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the
rights, authorities and powers granted or available to Agent in this Agreement or in any of the other Financing Agreements, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, Agent may
act in any manner it may deem appropriate, in its discretion, given Agent’s own interest in the Collateral as a Lender and that Agent shall have no duty or liability whatsoever to any other Lender, except as otherwise expressly set forth in
this Agreement.
          12.12  
Agency for Perfection. Each Lender hereby appoints Agent and each other Lender as agent and bailee for the purpose of perfecting the security interests in and liens upon 
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   the Collateral of Agent in assets which, in accordance with Article 9 of the UCC can be perfected only by possession (or where the security interest of a secured party
with possession has priority over the security interest of another secured party) and Agent and each Lender hereby acknowledges that it holds possession of any such Collateral for the benefit of Agent as secured party. Should any Lender obtain
possession of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver such Collateral to Agent or in accordance with Agent’s instructions.
          12.13  Successor Agent. Agent may resign as Agent upon thirty (30) days’ notice to Lenders and Borrower. If
Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor agent for Lenders. If no successor agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after
consulting with Lenders and Borrower,a successor agent from among Lenders. Upon the acceptance by the Lender so selected of its appointment as successor agent hereunder, such successor agent shall
succeed to all of the rights, powers and duties of the retiring Agent and the term “Agent” as used herein and in the other Financing Agreements shall mean such successor agent and the retiring Agent’s appointment, powers and duties as
Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 12 shall inure to its benefit as to any actions taken or omitted by it while it was Agent under this Agreement. If no successor
agent has accepted appointment as Agent by the date which is thirty (30) days after the date of a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nonetheless thereupon become effective and Lenders shall
perform all of the duties of Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above.
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   SECTION 13.  
TERM OF AGREEMENT; MISCELLANEOUS
          13.1  
Term.
                   (a)  This Agreement and the other
Financing Agreements shall become effective as of the date set forth on the first page hereof and shall continue in full force and effect for a term ending on the date three (3) years from the date hereof. In addition, Borrower may terminate this
Agreement at any time upon ten (10) days prior written notice to Agent (which notice shall be irrevocable) and Agent may, at its option, and shall at the direction of Required Lenders, terminate this Agreement at any time on or after an Event of
Default. Upon the effective date of termination of the Financing Agreements, Borrower shall pay to Agent all outstanding and unpaid Obligations and shall furnish cash collateral to Agent (or at Agent’s option, a letter of credit issued for the
account of Borrower and at Borrower’s expense, in form and substance satisfactory to Agent, by an issuer acceptable to Agent and payable to Agent as beneficiary) in such amounts as Agent determines are reasonably necessary to secure Agent and
Lenders from loss, cost, damage or expense, including attorneys’ fees and expenses, in connection with any contingent Obligations, including issued and outstanding Letter of Credit Accommodations and checks or other payments provisionally
credited to the Obligations and/or as to which Agent or any Lender has not yet received final and indefeasible payment. The amount of such cash collateral (or letter of credit, as Agent may determine) as to any Letter of Credit Accommodations shall
be in the amount equal to one hundred ten (110%) percent of the amount of the Letter of Credit Accommodations plus the amount of any fees and expenses payable in connection therewith through the end of the latest expiration date of such Letter of
Credit Accommodations. Such payments in respect of the Obligations and cash collateral shall be remitted by wire transfer in Federal funds to the Agent Payment Account or such other bank account of Agent, as Agent may, in its discretion, designate
in writing to Borrower for such purpose. Interest shall be due until and including the next Business Day, if the amounts so paid by Borrower to the Agent Payment Account or other bank account designated by Agent are received in such bank account
later than 12:00 noon, Miami, Florida time.
                   (b)  No termination of this Agreement or the
other Financing Agreements shall relieve or discharge Borrower or any Obligor of its respective duties, obligations and covenants under this Agreement or the other Financing Agreements until all Obligations have been fully and finally discharged and
paid, and Agent’s continuing security interest in the Collateral and the rights and remedies of Agent and Lenders hereunder, under the other Financing Agreements and applicable law, shall remain in effect until all such Obligations have been
fully and finally discharged and paid. Accordingly, Borrower waives any rights it may have under the UCC to demand the filing of termination statements with respect to the Collateral and Agent shall not be required to send such termination
statements to Borrower, or to file them with any filing office, unless and until this Agreement shall have been terminated in accordance with its terms and all Obligations paid and satisfied in full in immediately available funds.
                   (c)  If for any reason this Agreement is terminated prior to the third anniversary of the date hereof, in
view of the impracticality and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of Agent’s and each Lender’s lost profits as a result thereof, Borrower agrees to pay to
Agent for itself and the 
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   ratable benefit of Lenders, upon the effective date of such termination, an early termination fee in the amount equal to

	 Amount	Period
	(i)      1/2% of Maximum Credit	From the date hereof to but not including the third anniversary of the date hereof.

 
 Such early termination fee shall be presumed to be
the amount of damages sustained by Agent and Lenders as a result of such early termination and Borrower agrees that it is reasonable under the circumstances currently existing. In addition, Agent and Lenders shall be entitled to such early
termination fee upon the occurrence of any Event of Default described in Sections 10.1(g) and 10.1(h) hereof, even if Agent and Lenders do not exercise the right to terminate this Agreement, but elect, at their option, to provide financing to
Borrower permit the use of cash collateral under the United States Bankruptcy Code. The early termination fee provided for in this Section 13.1 shall be deemed included in the Obligations.
                   (d)  Notwithstanding anything to the contrary contained in Section 13.1(c), (i) in the event of the
termination of this Agreement by Borrower prior to the end of the then current term and the full and final repayment of all of the Obligations and the receipt by Agent of cash collateral all as provided in Section 13.1(a), Borrower shall not be
required to pay the early termination fee provided for above if each of the following conditions is satisfied: (A) no Event of Default or act, condition or event which with notice or passage of time or both would constitute an Event of Default
shall exist or have occurred and be continuing, (B)  Agent shall have received not less than thirty (30) days prior written notice of the intention of Borrower to so terminate this Agreement, and (C)  the final payment in full of
all of the Obligations is received simultaneously with the refinancing of the Credit Facility with proceeds of loans made by Wachovia Bank, National Association, or its affiliates to Borrower; and (ii) Borrower shall not be required to pay the early
termination fee provided for above if prior to the occurrence of any Event of Default described in Sections 10.1(g) and 10.1(h) hereof, Agent terminates this Agreement in accordance with the terms hereof and final payment in full of all of the
Obligations is received by Agent and Lenders within ninety (90 ) days from the date that Agent terminates this Agreement.
          13.2  
Interpretative Provisions.
                   (a)  All terms used
herein which are defined in Article 1, Article 8 or Article 9 of the UCC shall have the meanings given therein unless otherwise defined in this Agreement. 
                   (b)  All references to the plural herein shall also mean the singular and to the singular shall also mean
the plural unless the context otherwise requires. 
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                      (c)  All references to Borrower, any Obligor,
Agent and Lenders pursuant to the definitions set forth in the recitals hereto, or to any other person herein, shall include their respective successors and assigns. 
                   (d)  The words “hereof”, “herein”, “hereunder”, “this Agreement”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not any particular provision of this Agreement and as this Agreement now exists or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced. 
                   (e)  The word “including” when used in this
Agreement shall mean “including, without limitation”. 
                   (f)  An Event of Default
shall exist or continue or be continuing until such Event of Default is waived in accordance with Section 11.3 or is cured in a manner satisfactory to Agent, if such Event of Default is capable of being cured as determined by Agent. 
                   (g)  All references to the term “good faith” used herein when applicable to Agent or any Lender
shall mean, notwithstanding anything to the contrary contained herein or in the UCC, honesty in fact in the conduct or transaction concerned. Borrower shall have the burden of proving any lack of good faith on the part of Agent or any Lender alleged
by Borrower at any time. 
                   (h)  Any accounting term used in this Agreement shall have, unless
otherwise specifically provided herein, the meaning customarily given in accordance with GAAP, and all financial computations hereunder shall be computed unless otherwise specifically provided herein, in accordance with GAAP as consistently applied
and using the same method for inventory valuation as used in the preparation of the financial statements of Borrower most recently received by Agent prior to the date hereof.
                   (i)  In the computation of periods of time from a specified date to a later specified date, the word
“from” means “from and including”, the words “to” and “until” each mean “to but excluding” and the word “through” means “to and including”.
                   (j)  Unless otherwise expressly provided herein, (i) references herein to any agreement, document or
instrument shall be deemed to include all subsequent amendments, modifications, supplements, extensions, renewals, restatements or replacements with respect thereto, but only to the extent the same are not prohibited by the terms hereof or of any
other Financing Agreement, and (ii) references to any statute or regulation are to be construed as including all statutory and regulatory provisions consolidating, amending, replacing, recodifying, supplementing or interpreting the statute or
regulation.
                   (k)  The captions and headings of this Agreement are for convenience of reference
only and shall not affect the interpretation of this Agreement.
                   (l)  This Agreement and other
Financing Agreements may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, 
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   tests and measurements are cumulative and shall each be performed in accordance with their terms.
                   (m)  This Agreement and the other Financing Agreements are the result of negotiations among and have been
reviewed by counsel to Agent and the other parties, and are the products of all parties. Accordingly, this Agreement and the other Financing Agreements shall not be construed against Agent or Lenders merely because of Agent’s or any
Lender’s involvement in their preparation.
          13.3  
Notices. All notices, requests and demands hereunder shall be in writing and deemed to have been given or made: if delivered in person, immediately upon delivery; if by telex, telegram or facsimile
transmission, immediately upon sending and upon confirmation of receipt; if by nationally recognized overnight courier service with instructions to deliver the next Business Day, one (1) Business Day after sending; and if by certified mail, return
receipt requested, five (5) days after mailing. All notices, requests and demands upon the parties are to be given to the following addresses (or to such other address as any party may designate by notice in accordance with this Section):

	If to Borrower:	 	REPTRON ELECTRONICS, INC.	 
	 	 	13700 McCormick Drive 
Tampa, Florida 33626-3021
Attention:             Mr. Paul J.
Plante
Telephone No.:     813 854-2351
Telecopy No.:       813 891-4007	 
	 	 	 	 
	If to Agent:	 	CONGRESS FINANCIAL CORPORATION
(FLORIDA)	 
	 	 	777 Brickell Avenue
Miami, Florida 33131
Attention:             Ms. Kerry
Maxwell
Telephone No.:     305 371-6674
Telecopy No.:       305 371-9456	 

 
          13.4  
Partial Invalidity. If any provision of this Agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Agreement as a whole, but this
Agreement shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by
applicable law.
          13.5  Confidentiality.
                   (a)  Agent and each Lender shall use all reasonable efforts to keep confidential, in accordance with its
customary procedures for handling confidential information and safe and sound lending practices, any non-public information supplied to it by Borrower pursuant to this Agreement which is clearly and conspicuously marked as confidential at the time
such information is furnished by Borrower to Agent or such Lender, provided,  that, nothing contained 
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   herein shall limit the disclosure of any such information: (i) to the extent required by statute, rule, regulation, subpoena or court order, (ii) to bank
examiners and other regulators, auditors and/or accountants, in connection with any litigation to which Agent or such Lender is a party, (iii) to any Lender or Participant (or prospective Lender or Participant) or to any Affiliate of any Lender
so long as such Lender or Participant (or prospective Lender or Participant) or Affiliate shall have been instructed to treat such information as confidential in accordance with this Section 13.5, or (iv) to counsel for Agent or any Lender or
Participant (or prospective Lender or Participant).
                   (b)  In the event that Agent or any
Lender receives a request or demand to disclose any confidential information pursuant to any subpoena or court order, Agent or such Lender, as the case may be, agrees (i) to the extent permitted by applicable law or if permitted by applicable
law, to the extent Agent or such Lender determines in good faith that it will not create any risk of liability to Agent or such Lender, Agent or such Lender will promptly notify Borrower of such request so that Borrower may seek a protective order
or other appropriate relief or remedy and (ii) if disclosure of such information is required, disclose such information and, subject to reimbursement by Borrower of Agent’s or such Lender’s expenses, cooperate with Borrower in the
reasonable efforts to obtain an order or other reliable assurance that confidential treatment will be accorded to such portion of the disclosed information which Borrower so designates, to the extent permitted by applicable law or if permitted by
applicable law, to the extent Agent or such Lender determines in good faith that it will not create any risk of liability to Agent or such Lender.
                   (c)  In no event shall this Section 13.5 or any other provision of this Agreement, any of the other
Financing Agreements or applicable law be deemed: (i) to apply to or restrict disclosure of information that has been or is made public by Borrower, any Obligor or any third party or otherwise becomes generally available to the public other
than as a result of a disclosure in violation hereof, (ii) to apply to or restrict disclosure of information that was or becomes available to Agent or any Lender (or any Affiliate of any Lender) on a non-confidential basis from a person other
than Borrower, (iii) to require Agent or any Lender to return any materials furnished by Borrower to Agent or a Lender or prevent Agent or a Lender from responding to routine informational requests in accordance with the Code of Ethics for the Exchange of Credit Information  promulgated by The Robert Morris Associates or other applicable industry standards relating to the exchange of credit information. The obligations of Agent
and Lenders under this Section 13.5 shall supersede and replace the obligations of Agent and Lenders under any confidentiality letter signed prior to the date hereof.
          13.6  
Successors.  This Agreement, the other Financing Agreements and any other document referred to herein or therein shall be binding upon and inure to the benefit of and be enforceable by Agent,
Lenders, Borrower, and their respective successors and assigns, except that Borrower may not assign its rights under this Agreement, the other Financing Agreements and any other document referred to herein or therein without the prior written
consent of Agent and Lenders. Any such purported assignment without such express prior written consent shall be void. No Lender may assign its rights and obligations under this Agreement without the prior written consent of Agent, except as provided
in Section 13.7 below. The terms and provisions of 
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   this Agreement and the other Financing Agreements are for the purpose of defining the relative rights and obligations of Borrower, Agent and Lenders with respect to the
transactions contemplated hereby and there shall be no third party beneficiaries of any of the terms and provisions of this Agreement or any of the other Financing Agreements.
          13.7  
Assignments; Participations.
                   (a)  Each
Lender may, with the prior written consent of Agent, assign all or, if less than all, a portion equal to at least $5,000,000 in the aggregate for the assigning Lender, of such rights and obligations under this Agreement to one or more Eligible
Transferees (but not including for this purpose any assignments in the form of a participation), each of which assignees shall become a party to this Agreement as a Lender by execution of an Assignment and Acceptance; provided, that, such transfer or assignment will not be effective until: (i) it is recorded by Agent on the Register and (ii) Agent shall have received for its sole
account payment of a processing fee from the assigning Lender or the assignee in the amount of $5,000. 
                   (b)  Agent shall maintain a register of the names and addresses of Lenders, their Commitments and the principal amount of their Loans (the “Register”). Agent shall also maintain a copy of each Assignment and Acceptance
delivered to and accepted by it and shall modify the Register to give effect to each Assignment and Acceptance. The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and Borrower, Obligors, Agent and
Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by Borrower and any Lender at any reasonable time and from time to time
upon reasonable prior notice.
                   (c)  Upon such execution, delivery, acceptance and recording,
from and after the effective date specified in each Assignment and Acceptance, (i) the assignee thereunder shall be a party hereto and to the other Financing Agreements and, to the extent that rights and obligations hereunder have been assigned
to it pursuant to such Assignment and Acceptance, have the rights and obligations (including, without limitation, the obligation to participate in Letter of Credit Accommodations) of a Lender hereunder and thereunder and (ii) the assigning
Lender shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement.
                   (d)  By execution and delivery of an Assignment and Acceptance, the assignor and assignee thereunder
confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, the assigning Lender makes no representation or warranty and assumes no responsibility with respect to
any statements, warranties or representations made in or in connection with this Agreement or any of the other Financing Agreements or the execution, legality, enforceability, genuineness, sufficiency or value of this Agreement or any of the other
Financing Agreements furnished pursuant hereto, (ii) the assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower, any Obligor or any of their Subsidiaries or the
performance or observance by Borrower or any Obligor of any of the Obligations; (iii) such 
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   assignee confirms that it has received a copy of this Agreement and the other Financing Agreements, together with such other documents and information it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance, (iv) such assignee will, independently and without reliance upon the assigning Lender, Agent and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Financing Agreements, (v) such assignee appoints and authorizes Agent to take such action as
agent on its behalf and to exercise such powers under this Agreement and the other Financing Agreements as are delegated to Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, and (vi) such
assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement and the other Financing Agreements are required to be performed by it as a Lender. Agent and Lenders may furnish any
information concerning Borrower or any Obligor in the possession of Agent or any Lender from time to time to assignees and Participants.
                   (e)  Each Lender may sell participations to one or more banks or other entities in or to all or a portion
of its rights and obligations under this Agreement and the other Financing Agreements (including, without limitation, all or a portion of its Commitments and the Loans owing to it and its participation in the Letter of Credit Accommodations, without
the consent of Agent or the other Lenders); provided, that, (i) such Lender’s obligations under this Agreement (including, without limitation,
its Commitment hereunder) and the other Financing Agreements shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and Borrower, the other Lenders and Agent
shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the other Financing Agreements, (iii) the Participant shall not have any rights under this
Agreement or any of the other Financing Agreements (the Participant’s rights against such Lender in respect of such participation to be those set forth in the agreement executed by such Lender in favor of the Participant relating thereto) and
all amounts payable by Borrower or any Obligor hereunder shall be determined as if such Lender had not sold such participation.
                   (f)  Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Loans hereunder to a
Federal Reserve Bank in support of borrowings made by such Lenders from such Federal Reserve Bank, 
                   (g)  Borrower shall assist Agent or any Lender permitted to sell assignments or participations under this Section 13.7 in whatever manner reasonably necessary in order to enable or effect any such assignment or participation,
including (but not limited to) the execution and delivery of any and all agreements, notes and other documents and instruments as shall be requested and the delivery of informational materials, appraisals or other documents for, and the
participation of relevant management in meetings and conference calls with, potential Lenders or Participants. Borrower shall certify the correctness, completeness and accuracy, in all material respects, of all descriptions of Borrower and its
affairs provided, prepared or reviewed by Borrower that are contained in any selling materials and all other information provided by it and included in such materials. 
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            13.8   
Entire Agreement. This Agreement, the other Financing Agreements, any supplements hereto or thereto, and any instruments or documents delivered or to be delivered in connection herewith or
therewith represents the entire agreement and understanding concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements, understandings, negotiations and discussions, representations,
warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written. In the event of any inconsistency between the terms of this Agreement and any schedule or exhibit hereto, the terms of this
Agreement shall govern.
          13.9   Counterparts, Etc.  This Agreement or any of the other
Financing Agreements may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement or any of the
other Financing Agreements by telefacsimile shall have the same force and effect as the delivery of an original executed counterpart of this Agreement or any of such other Financing Agreements. Any party delivering an executed counterpart of any
such agreement by telefacsimile shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of such agreement.
          IN WITNESS WHEREOF, Agent, Lenders and Borrower has caused these presents to be duly executed as of the day and year first above written.
 [SIGNATURE PAGE FOLLOWS]
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	 AGENT	BORROWER
	CONGRESS FINANCIAL CORPORATION (FLORIDA), as Agent
 
By:                                        
                                       
  
Title:                                        
                                     	REPTRON ELECTRONICS, INC.

By:                                        
                                       
  
Title:                                        
                                     
	 	 
	LENDER	 
	CONGRESS FINANCIAL CORPORATION (FLORIDA), as Lender
 
By:                                        
                                       
  
Title:                                        
                                     	 
	Commitment: $60,000,000	 

 
  
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  EXHIBIT A
to
LOAN AND SECURITY AGREEMENT
 ASSIGNMENT AND ACCEPTANCE AGREEMENT
          This ASSIGNMENT AND ACCEPTANCE AGREEMENT (this “Assignment and Acceptance”) dated as of
_____________, 2002 is made between ________________________ (the “Assignor”) and ____________________ (the “Assignee”).
 W I T N E S S E T H:
          WHEREAS, Congress Financial Corporation (Florida), in its capacity as agent pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf of the
financial institutions which are parties thereto as lenders (in such capacity, “Agent”), and the financial institutions which are parties to the Loan Agreement as lenders (individually, each a “Lender” and collectively,
“Lenders”) have entered or are about to enter into financing arrangements pursuant to which Agent and Lenders may make loans and advances and provide other financial accommodations to Reptron Electronics, Inc. (“Borrower”) as set
forth in the Loan and Security Agreement, dated October __, 2002, by and among Borrower, Agent and Lenders (as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan
Agreement”), and the other agreements, documents and instruments referred to therein or at any time executed and/or delivered in connection therewith or related thereto (all of the foregoing, together with the Loan Agreement, as the same now
exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, being collectively referred to herein as the “Financing Agreements”);
          WHEREAS, as provided under the Loan Agreement, Assignor committed to making Loans (the “Committed Loans”) to Borrower in an aggregate amount not to exceed
$___________ (the “Commitment”);
          WHEREAS, Assignor wishes to assign to Assignee [part of the] [all] rights and obligations of Assignor under the
Loan Agreement in respect of its Commitment in an amount equal to $______________ (the “Assigned Commitment Amount”) on the terms and subject to the conditions set forth herein and Assignee wishes to accept assignment of such rights and to
assume such obligations from Assignor on such terms and subject to such conditions;
          NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements contained herein, the parties hereto agree as follows:
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            1.       Assignment and Acceptance.
                   (a)  Subject to the terms and conditions of this Assignment and Acceptance, Assignor hereby sells,
transfers and assigns to Assignee, and Assignee hereby purchases, assumes and undertakes from Assignor, without recourse and without representation or warranty (except as provided in this Assignment and Acceptance) an interest in (i) the Commitment
and each of the Committed Loans of Assignor and (ii) all related rights, benefits, obligations, liabilities and indemnities of the Assignor under and in connection with the Loan Agreement and the other Financing Agreements, so that after giving
effect thereto, the Commitment of Assignee shall be as set forth below and the Pro Rata Share of Assignee shall be _______ (__%) percent.
                   (b)  With effect on and after the Effective Date (as defined in Section 5 hereof), Assignee shall be a
party to the Loan Agreement and succeed to all of the rights and be obligated to perform all of the obligations of a Lender under the Loan Agreement, including the requirements concerning confidentiality and the payment of indemnification, with a
Commitment in an amount equal to the Assigned Commitment Amount. Assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Loan Agreement are required to be performed by it as a Lender. It
is the intent of the parties hereto that the Commitment of Assignor shall, as of the Effective Date, be reduced by an amount equal to the Assigned Commitment Amount and Assignor shall relinquish its rights and be released from its obligations under
the Loan Agreement to the extent such obligations have been assumed by Assignee; provided, that, Assignor shall not relinquish its rights under Sections
2.1, 6.4, 6.8 and 6.9 of the Loan Agreement to the extent such rights relate to the time prior to the Effective Date.
                   (c)  After giving effect to the assignment and assumption set forth herein, on the Effective Date
Assignee’s Commitment will be $_____________.
                   (d)  After giving effect to the assignment
and assumption set forth herein, on the Effective Date Assignor’s Commitment will be $______________ (as such amount may be further reduced by any other assignment by Assignor on or after the date hereof).
          2.       Payments.
                   (a)  As consideration for the sale, assignment and transfer contemplated in Section 1 hereof, Assignee
shall pay to Assignor on the Effective Date in immediately available funds an amount equal to $____________, representing Assignee’s Pro Rata Share of the principal amount of all Committed Loans.
                   (b)  Assignee shall pay to Agent the processing fee in the amount specified in Section 13.7(a) of the Loan
Agreement. 
          3.       Reallocation of Payments. Any interest, fees and other
payments accrued to the Effective Date with respect to the Commitment, Committed Loans and outstanding Letter of Credit Accommodations shall be for the account of Assignor. Any interest, fees and other payments accrued on and after the Effective
Date with respect to the Assigned Commitment
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   Amount shall be for the account of Assignee. Each of Assignor and Assignee agrees that it will hold in trust for the other party any interest, fees and other amounts
which it may receive to which the other party is entitled pursuant to the preceding sentence and pay to the other party any such amounts which it may receive promptly upon receipt.
          4.       Independent Credit Decision. Assignee acknowledges that it has received a copy
of the Loan Agreement and the Schedules and Exhibits thereto, together with copies of the most recent financial statements of _____________ and its Subsidiaries, and such other documents and information as it has deemed appropriate to make its own
credit and legal analysis and decision to enter into this Assignment and Acceptance and agrees that it will, independently and without reliance upon Assignor, Agent or any Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit and legal decisions in taking or not taking action under the Loan Agreement.
          5.       Effective Date; Notices.
                   (a)  As between Assignor and Assignee, the effective date for this Assignment and Acceptance shall be
_______________, 200_ (the “Effective Date”); provided, that, the following conditions precedent have been satisfied on or before the Effective
Date:
                            (i)  this Assignment and
Acceptance shall be executed and delivered by Assignor and Assignee;
                            (ii)  the consent of Agent as required for an
effective assignment of the Assigned Commitment Amount by Assignor to Assignee shall have been duly obtained and shall be in full force and effect as of the Effective Date;
                            (iii)  written notice of such assignment, together
with payment instructions, addresses and related information with respect to Assignee, shall have been given to Borrower and Agent; 
                            (iv)  Assignee shall pay to Assignor all amounts due
to Assignor under this Assignment and Acceptance; and 
                            (v)  the processing fee referred to in Section 2(b) hereof shall have been paid to Agent.
                   (b)  Promptly following the execution of this Assignment and Acceptance, Assignor shall deliver to Borrower and Agent for acknowledgment by Agent, a Notice of Assignment in the form attached hereto as Schedule 1.
          [6.      Agent. [INCLUDE ONLY IF ASSIGNOR IS AN AGENT]
                   (a)  Assignee hereby appoints and authorizes Assignor in its capacity as Agent to take such action as agent
on its behalf to exercise such powers under the Loan Agreement as are delegated to Agent by Lenders pursuant to the terms of the Loan Agreement.
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                      (b)  Assignee shall assume no duties or
obligations held by Assignor in its capacity as Agent under the Loan Agreement.]
          7.       Withholding Tax. Assignee (a) represents and warrants to Assignor, Agent and Borrower that under applicable law and treaties no tax will be required to be withheld by Assignee, Agent or Borrower with respect to any
payments to be made to Assignee hereunder or under any of the Financing Agreements, (b) agrees to furnish (if it is organized under the laws of any jurisdiction other than the United States or any State thereof) to Agent and Borrower prior to
the time that Agent or Borrower are required to make any payment of principal, interest or fees hereunder, duplicate executed originals of either U.S. Internal Revenue Service Form 4224 or U.S. Internal Revenue Service Form 1001 (wherein Assignee
claims entitlement to the benefits of a tax treaty that provides for a complete exemption from U.S. federal income withholding tax on all payments hereunder) and agrees to provide new Forms 4224 or 1001 upon the expiration of any previously
delivered form or comparable statements in accordance with applicable U.S. law and regulations and amendments thereto, duly executed and completed by Assignee, and (c) agrees to comply with all applicable U.S. laws and regulations with regard
to such withholding tax exemption.
          8.       Representations and Warranties.
                   (a)  Assignor represents and warrants that (i) it is the legal and beneficial owner of the interest
being assigned by it hereunder and that such interest is free and clear of any security interest, lien, encumbrance or other adverse claim, (ii) it is duly organized and existing and it has the full power and authority to take, and has taken,
all action necessary to execute and deliver this Assignment and Acceptance and any other documents required or permitted to be executed or delivered by it in connection with this Assignment and Acceptance and to fulfill its obligations hereunder,
(iii) no notices to, or consents, authorizations or approvals of, any Person are required (other than any already given or obtained) for its due execution, delivery and performance of this Assignment and Acceptance, and apart from any
agreements or undertakings or filings required by the Loan Agreement, no further action by, or notice to, or filing with, any Person is required of it for such execution, delivery or performance, and (iv) this Assignment and Acceptance has been
duly executed and delivered by it and constitutes the legal, valid and binding obligation of Assignor, enforceable against Assignor in accordance with the terms hereof, subject, as to enforcement, to bankruptcy, insolvency, moratorium,
reorganization and other laws of general application relating to or affecting creditors’ rights and to general equitable principles.
                   (b)  Assignor makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Loan Agreement or any of the other Financing Agreements or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Agreement or any
other instrument or document furnished pursuant thereto. Assignor makes no representation or warranty in connection with, and assumes no responsibility with respect to, the solvency, financial condition or statements of Borrower, or the performance
or observance by Borrower or any other Person, of any of its respective obligations under the Loan Agreement or any other instrument or document furnished in connection therewith.
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                      (c)  Assignee represents and warrants that
(i) it is duly organized and existing and it has full power and authority to take, and has taken, all action necessary to execute and deliver this Assignment and Acceptance and any other documents required or permitted to be executed or
delivered by it in connection with this Assignment and Acceptance, and to fulfill its obligations hereunder, (ii) no notices to, or consents, authorizations or approvals of, any Person are required (other than any already given or obtained) for
its due execution, delivery and performance of this Assignment and Acceptance, and apart from any agreements or undertakings or filings required by the Loan Agreement, no further action by, or notice to, or filing with, any Person is required of it
for such execution, delivery or performance; and (iii) this Assignment and Acceptance has been duly executed and delivered by it and constitutes the legal, valid and binding obligation of Assignee, enforceable against Assignee in accordance
with the terms hereof, subject, as to enforcement, to bankruptcy, insolvency, moratorium, reorganization and other laws of general application relating to or affecting creditors’ rights to general equitable principles.
          9.       Further Assurances. Assignor and Assignee each hereby agree to execute and
deliver such other instruments, and take such other action, as either party may reasonably request in connection with the transactions contemplated by this Assignment and Acceptance, including the delivery of any notices or other documents or
instruments to Borrower or Agent, which may be required in connection with the assignment and assumption contemplated hereby.
          10.      Miscellaneous
                   (a)  Any amendment or waiver of any provision of this Assignment and Acceptance shall be in writing and signed by the parties hereto. No failure or delay by either party hereto in exercising any right, power or privilege hereunder
shall operate as a waiver thereof and any waiver of any breach of the provisions of this Assignment and Acceptance shall be without prejudice to any rights with respect to any other for further breach thereof.
                   (b)  All payments made hereunder shall be made without any set-off or counterclaim.
                   (c)  Assignor and Assignee shall each pay its own costs and expenses incurred in connection with the
negotiation, preparation, execution and performance of this Assignment and Acceptance.
                   (d)  This Assignment and Acceptance may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
                   (e)  THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE
STATE OF FLORIDA. Assignor and Assignee each irrevocably submits to the non-exclusive jurisdiction of any State or Federal court sitting in Dade County, Florida over any suit, action or proceeding arising out of or relating to this Assignment and
Acceptance and irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such Florida State or Federal court.
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   Each party to this Assignment and Acceptance hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding.
                   (f)  ASSIGNOR AND ASSIGNEE EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS ASSIGNMENT AND ACCEPTANCE, THE LOAN AGREEMENT, ANY OF THE OTHER FINANCING
AGREEMENTS OR ANY RELATED DOCUMENTS AND AGREEMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALING, OR STATEMENTS (WHETHER ORAL OR WRITTEN).
          IN WITNESS WHEREOF,
Assignor and Assignee have caused this Assignment and Acceptance to be executed and delivered by their duly authorized officers as of the date first above written.

		 	 	[ASSIGNOR]
 
	 	 	 	 	By: 	

						

	 	 	 	 	 	 
	 	 	 	 	Title: 	 
						

		 	 	[ASSIGNEE]
 
	 	 	 	 	By: 	

						

	 	 	 	 	 	 
	 	 	 	 	Title: 	 
						

  
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  SCHEDULE 1
NOTICE OF ASSIGNMENT AND ACCEPTANCE

	 	                           __________, 2002

 Attn.:                            
 Re: Reptron Electronics, Inc.
 Ladies and Gentlemen:
          Congress
Financial Corporation (Florida), in its capacity as agent pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf of the financial institutions which are parties thereto as lenders (in such capacity, “Agent”), and
the financial institutions which are parties to the Loan Agreement as lenders (individually, each a “Lender” and collectively, “Lenders”) have entered or are about to enter into financing arrangements pursuant to which Agent and
Lenders may make loans and advances and provide other financial accommodations to Reptron Electronics, Inc. (“Borrower”) as set forth in the Loan and Security Agreement, dated October __, 2002, by and among Borrower, Agent and Lenders (as
the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”), and the other agreements, documents and instruments referred to therein or at any time executed and/or
delivered in connection therewith or related thereto (all of the foregoing, together with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, being collectively
referred to herein as the “Financing Agreements”). Capitalized terms not otherwise defined herein shall have the respective meanings ascribed thereto in the Loan Agreement.
          1.       We hereby give you notice of, and request your consent to, the assignment by __________________________
(the “Assignor”) to ___________________________ (the “Assignee”) such that after giving effect to the assignment Assignee shall have an interest equal to ________ (__%) percent of the total Commitments pursuant to the Assignment
and Acceptance Agreement attached hereto (the “Assignment and Acceptance”). We understand that the Assignor’s Commitment shall be reduced by $_____________, as the same may be further reduced by other assignments on or after the date
hereof.
          2.       Assignee agrees that, upon receiving the consent of Agent to such assignment,
Assignee will be bound by the terms of the Loan Agreement as fully and to the same extent as if the Assignee were the Lender originally holding such interest under the Loan Agreement.

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            3.       The following administrative details apply to
Assignee:

	 	         (A)      Notice address:

	Assignee name:	 	 	 	 	 
			
			
	Address:	 	 	 	 	 
			
			
	 	 	 	 	 	 
	Attention:	 	 	 	 	 
			
			
	Telephone:	 	 	 	 	 
			
			
	Telecopier:	 	 	 	 	 
			
			

	 	         (B)      Payment instructions:

	Assignee name:	 	 	 	 	 
			
			
	Address:	 	 	 	 	 
			
			
	 	 	 	 	 	 
	Attention:	 	 	 	 	 
			
			
	Telephone:	 	 	 	 	 
			
			
	Telecopier:	 	 	 	 	 
			
			

          4.       You are entitled to rely upon the representations, warranties and
covenants of each of Assignor and Assignee contained in the Assignment and Acceptance.
  

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            IN WITNESS WHEREOF, Assignor and Assignee have caused this Notice of Assignment and Acceptance to be executed by
their respective duly authorized officials, officers or agents as of the date first above mentioned.

		 	 	Very truly yours,

[NAME OF ASSIGNOR]
 
	 	 	 	 	By: 	

						

	 	 	 	 	 	 
	 	 	 	 	Title: 	 
						

		 	 	[NAME OF ASSIGNEE]
 
	 	 	 	 	By: 	

						

	 	 	 	 	 	 
	 	 	 	 	Title: 	 
						

	ACKNOWLEDGED AND ASSIGNMENT
CONSENTED TO:

CONGRESS FINANCIAL CORPORATION FLORIDA), as Agent	 	 
	By: 	
	 	 	 
		
			
	 	 	 	 	 
	Title: 	 	 	 	 
		
			

  

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   EXHIBIT C
TO
LOAN AND SECURITY AGREEMENT
 Compliance Certificate

	To:	 	Congress Financial Corporation (Florida), as Agent
777 Brickell Avenue
Miami, Florida 33131	 

 Ladies and Gentlemen:
          I hereby certify to you pursuant to Section 9.6 of the Loan
Agreement (as defined below) as follows:
          1.       I am the duly elected Chief Financial Officer of
Reptron Electronics, Inc., a Florida corporation (“Borrower”). Capitalized terms used herein without definition shall have the meanings given to such terms in the Loan and Security Agreement, dated October __, 2002, by and among Congress
Financial Corporation (Florida) as agent for the financial institutions party thereto as lenders (in such capacity, “Agent”) and the financial institutions party thereto as lenders (collectively, “Lenders”) and Borrower (as such
Loan and Security Agreement is amended, modified or supplemented, from time to time, the “Loan Agreement”).
          2.       I have reviewed the terms of the Loan Agreement, and have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and the
financial condition of Borrower and each of its Subsidiaries, during the immediately preceding fiscal month.
          3.       The review described in Section 2 above did not disclose the existence during or at the end of such fiscal month, and I have no knowledge of the existence and continuance on the
date hereof, of any condition or event which constitutes a Default or an Event of Default, except as set forth on Schedule I attached hereto. Described on Schedule I attached hereto are the exceptions, if any, to this Section 3 listing, in detail,
the nature of the condition or event, the period during which it has existed and the action which Borrower or any Obligor has taken, is taking, or proposes to take with respect to such condition or event.
          4.       I further certify that, based on the review described in Section 2 above, Borrower and Obligors have not at
any time during or at the end of such fiscal month, except as specifically described on Schedule II attached hereto or as permitted by the Loan Agreement, done any of the following:
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	 	 (a)	 	Changed its respective corporate name, or transacted business under any trade name, style, or fictitious name, other than those previously described to you and set forth in the Financing
Agreements.

	 	(b)	 	Changed the location of its chief executive office, changed its jurisdiction of incorporation, changed its type of organization or changed the location of or disposed of any of its properties or assets (other than
pursuant to the sale of Inventory in the ordinary course of its business or as otherwise permitted by Section 9.7 of the Loan Agreement), or established any new asset locations.
	 	 	 
	 	(c)	 	Materially changed the terms upon which it sells goods (including sales on consignment) or provides services, nor has any vendor or trade supplier to Borrower or any Obligor during or at the end of such period materially
adversely changed the terms upon which it supplies goods to Borrower or such Obligor.
	 	 	 
	 	(d)	 	Permitted or suffered to exist any security interest in or liens on any of its properties, whether real or personal, other than as specifically permitted in the Financing Agreements.
	 	 	 
	 	(e)	 	Received any notice of, or obtained knowledge of any of the following not previously disclosed to Agent: (i) the occurrence of any event involving the release, spill or discharge of any Hazardous Material in
violation of applicable Environmental Law in a material respect or (ii) any investigation, proceeding, complaint, order, directive, claims, citation or notice with respect to: (A) any non-compliance with or violation of any applicable
Environmental Law by Borrower or any Obligor in any material respect or (B) the release, spill or discharge of any Hazardous Material in violation of applicable Environmental Law in a material respect or (C) the generation, use, storage,
treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials in violation of applicable Environmental Laws in a material respect or (D) any other environmental, health or safety matter, which has a
material adverse effect on Borrower or any Obligor or its business, operations or assets or any properties at which Borrower or such Obligor transported, stored or disposed of any Hazardous Materials.
	 	 	 
	 	(f)	 	Become aware of, obtained knowledge of, or received notification of, any breach or violation of any material covenant contained in any instrument or agreement in respect of Indebtedness for money borrowed by Borrower or
any Obligor.

          5.       Attached hereto as Schedule III are the calculations used in
determining, as of the end of such fiscal month whether Borrower is in compliance with the covenant set forth in Section 9.17 of the Loan Agreement for such fiscal month.
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            The foregoing certifications are made and delivered this day of                 , 2002.

		 	Very truly yours,

		 	REPTRON ELECTRONICS, INC.
	
	 	
By: 	

				

	 	 	Title:	

				

  
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