Document:

exh10-2_agmt.htm

     

    
      

      

    

     

     

    
 

     

     

    EXHIBIT
      10.2

     

    SUBORDINATION
      AGREEMENT DATED AUGUST 22, 2007

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SUBORDINATION
      AGREEMENT

     

    This
      SUBORDINATION AGREEMENT (this “Agreement”), dated as
      of August 22, 2007 is among GALAXY ENERGY CORPORATION, a Colorado corporation
      (“Borrower”), DOLPHIN ENERGY CORPORATION, a Nevada corporation,
      and PANNONIAN INTERNATIONAL, LTD., a Colorado corporation (each such
      corporation, including Borrower, and together with each other obligor who
      becomes a party to this Agreement each an “Obligor” and,
      together, “Obligors”), BRUNER FAMILY TRUST UTD MARCH 28, 2005
      (“Bruner Trust”, together with any transferees or holders from
      time to time of the Subordinated Note (as defined below), each a
“Subordinated Creditor”, and collectively
      the “Subordinated Creditors”), and HFTP INVESTMENTS LLC,
      PROMETHEAN II MASTER, L.P., PROMETHEAN I MASTER LTD., CAERUS PARTNERS LLC,
      AG
      OFFSHORE CONVERTIBLES, LTD., and LEONARDO, L.P., (collectively, and together
      with any transferees or holders from time to time of the Notes (as defined
      below), hereinafter, the “Lenders”), and PROMETHEAN ASSET
      MANAGEMENT L.L.C., a Delaware limited liability company, in its capacity as
      collateral agent for itself and for the Lenders (including any successor agent,
      hereinafter, the “Agent”).

     

     

    R
      E C I T A L S

     

    A.  Borrower
      has executed and delivered to each of the Lenders those certain senior secured
      convertible notes each made by Borrower and dated as of August 19, 2004, October
      27, 2004, and May 31, 2005 (as the same have been and may hereafter be amended,
      restated, supplemented or modified and in effect from time to time, and
      including any notes issued in exchange or substitution therefor, individually
      a
“Note” and collectively the
“Notes”).  The Notes were issued pursuant to a
      certain Securities Purchase Agreement dated as of August 19, 2004 (as the same
      has been and hereafter may be amended, modified, supplemented or restated,
      the
“2004 Purchase Agreement”), and a certain Securities Purchase
      Agreement dated as of May 31, 2005 (as the same has been and hereafter may
      be
      amended, modified, supplemented or restated, the “2005 Purchase
      Agreement”, and together with the 2004 Purchase Agreement,
      collectively, the “Purchase Agreement”), in each case by and
      among, inter alia, Borrower and the Lenders, and pursuant to which the Lenders
      have made certain loans (“Loans”) to Borrower.

     

    B.  DOLPHIN
      ENERGY CORPORATION, a Nevada corporation, and PANNONIAN INTERNATIONAL, LTD,
      a
      Colorado corporation (each such entity, together with each other person or
      entity who becomes a party to the Guaranty (as defined herein) by execution
      of a
      joinder in the form of Exhibit A attached thereto, is referred to
      individually as a “Guarantor” and collectively as the
“Guarantors”) have executed a Guaranty dated as of
      August 19,
      2004 (as the same has been and may hereafter be amended, restated, supplemented
      or modified and in effect from time to time, the “Guaranty”) in
      favor of the Agent in respect of Borrower’s obligations under the Purchase
      Agreement and the Notes.

     

    C.  Borrower
      (the “Subordinated Obligor”) and Bruner Trust have entered into
      that certain Subordinated Promissory Note dated as of August 22, 2007 in the
      original principal amount of $125,000 (as the same has been and may hereafter
      be
      amended, restated, supplemented, replaced, substituted, divided, increased
      or
      otherwise modified from time to time

     

    
      
         

      

      
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    as
      permitted hereunder, individually and collectively, the “Subordinated
      Note”) pursuant to which, among other things, Subordinated Creditors
      have made a loan to the Subordinated Obligor in the original principal amount
      of
      $125,000 and pursuant to which Subordinated Obligor has incurred certain
      obligations and liabilities to Subordinated Creditors.

     

    NOW,
      THEREFORE, in reliance upon this Agreement, and for other good and valuable
      consideration, the receipt and sufficiency of which hereby are acknowledged,
      the
      parties hereto hereby agree as follows:

     

    1.  
Definitions.  All
      capitalized terms used but not elsewhere defined in this Agreement shall have
      the respective meanings ascribed to such terms in the Purchase Agreement and
      the
      Notes.  The following terms shall have the following meanings in this
      Agreement:

     

    Enforcement
      Action is defined in subsection 2.7.

     

    Lender
      or Lenders shall mean any holder of Senior Indebtedness including,
      without limitation, any holder of any Senior Indebtedness after the consummation
      of any Permitted Refinancing.

     

    Loan
      Documents means the collective reference to the Purchase Agreement,
      the Notes, the Warrants, Registration Rights Agreement, the Irrevocable Transfer
      Agent Instructions, the Conveyances of Overriding Royalty Interests, the USBIT
      Account Control Agreement, the ANB Amendment and the ANB Account Control
      Agreement as amended thereby, the First Amendment and the Security Agreement
      as
      amended thereby, the Guaranty as amended thereby and the Pledge Agreement as
      amended thereby, the 2004 Amendment, the Mortgage Amendments and the Mortgages
      as amended thereby, the Colorado Mortgage and each of the other agreements
      to
      which any Obligor is a party or is bound in connection with the transactions
      contemplated under the Purchase Agreement and the Notes.

     

    Paid
      in Full or
Payment in Full shall mean the indefeasible payment
      in
      full in cash of all Senior Indebtedness and termination of all commitments
      to
      lend under the Loan Documents and Permitted Refinancing Loan
      Documents.

    

    Permitted
      Refinancing means any refinancing of the Senior
      Indebtedness.

     

    Permitted
      Refinancing Loan Documents means any and all agreements, documents
      and instruments executed in connection with a Permitted Refinancing of Senior
      Indebtedness.

     

    Proceeding
      is defined in subsection 2.3.

     

    Senior
      Indebtedness shall mean the obligations, liabilities and other
      amounts owed under the Purchase Agreement, the Notes or any other Loan Document
      including all interest, fees, expenses, indemnities and enforcements costs,
      whether before or after the commencement of a Proceeding and without regard
      to
      whether or not an allowed claim, and all obligations and liabilities incurred
      with respect to Permitted Refinancings,

     

    
      
         

      

      
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    together
      with any amendments, restatements, modifications, renewals or extensions of
      any
      thereof.

     

    Subordinated
      Creditor shall mean Bruner Trust, each “Subordinated Creditor”
which is signatory to this Agreement from time to time and any
      other holders of
      a Subordinated Note or any other Subordinated Indebtedness from time to
      time.

     

    Subordinated
      Default shall mean a default in the payment of the Subordinated
      Indebtedness, or performance of any term, covenant or condition contained in
      the
      Subordinated Indebtedness Documents or the occurrence of any event or condition,
      which default, event or condition permits any Subordinated Creditor to
      accelerate or demand payment of all or any portion of the Subordinated
      Indebtedness.

     

    Subordinated
      Default Notice shall mean a written notice to Agent pursuant to
      which Agent is notified of the existence of a Subordinated Default, which notice
      incorporates a reasonably detailed description of such Subordinated
      Default.

     

    Subordinated
      Indebtedness shall mean all of the obligations of Obligors
      (including Subordinated Obligor) to Subordinated Creditors pursuant to or
      evidenced by the Subordinated Note and the other Subordinated Indebtedness
      Documents.

     

    Subordinated
      Indebtedness Documents shall mean the Subordinated Note and all
      other documents and instruments executed in connection with the Subordinated
      Note or otherwise evidencing or pertaining to any portion of the Subordinated
      Indebtedness, as amended, supplemented, restated or otherwise modified from
      time
      to time as permitted hereunder.

     

    2.  Subordination
      of Subordinated Indebtedness to Senior Indebtedness.

     

    2.1  Subordination.  The
      payment of any and all of the Subordinated Indebtedness hereby expressly is
      subordinated, to the extent and in the manner set forth herein, to the Payment
      in Full of the Senior Indebtedness.  Each holder of Senior
      Indebtedness, whether now outstanding or hereafter arising, shall be deemed
      to
      have acquired Senior Indebtedness in reliance upon the provisions contained
      herein.

     

    2.2  Restriction
      on Payments.  Notwithstanding any provision of the
      Subordinated Indebtedness Documents to the contrary and in addition to any
      other
      limitations set forth herein or therein, no payment (whether made in cash,
      securities or other property or by set-off) of principal, interest or any other
      amount due with respect to the Subordinated Indebtedness shall be made or
      received, and no Subordinated Creditor shall exercise any right of set-off
      or
      recoupment with respect to any Subordinated Indebtedness, until all of the
      Senior Indebtedness is Paid in Full, provided however:
      subject to any adjustments or rights set forth in the Notes, any warrant for
      the
      capital stock of Borrower or Borrower’s charter, bylaws and similar constituent
      documents, Subordinated Obligor shall be permitted to make interest payments
      by
      means of the issuance to any Subordinated Creditor of common stock of the
      Borrower.

     

    
      
         

      

      
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    2.3  Proceedings.  In
      the event of any insolvency, bankruptcy, receivership, custodianship,
      liquidation, reorganization, assignment for the benefit of creditors or other
      proceeding for the liquidation, dissolution or other winding up of any Obligor
      or any of its Subsidiaries or any of their respective properties (a
“Proceeding”):

     

    (i)           the
      Lenders shall be entitled to receive Payment in Full in cash of the Senior
      Indebtedness before any Subordinated Creditor is entitled to receive any payment
      upon the Subordinated Indebtedness, and Lenders shall be entitled to receive
      for
      application in payment of such Senior Indebtedness any payment or distribution
      of any kind or character, whether in cash, property or securities or by set-off
      or otherwise, which may be payable or deliverable in any such Proceedings in
      respect of the Subordinated Indebtedness;

     

    (ii)           any
      payment or distribution of assets of any Obligor of any kind or character,
      whether in cash, property or securities, by set-off or otherwise, to which
      any
      Subordinated Creditor would be entitled pursuant to the Subordinated
      Indebtedness but for the provisions hereof shall be paid by the liquidating
      trustee or agent or other Person making such payment or distribution, whether
      a
      trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly
      to the Lenders until the Senior Indebtedness shall have been Paid in Full,
      and
      each Subordinated Creditor acknowledges and agrees that such payment or
      distribution may, particularly with respect to interest on Senior Indebtedness
      after the commencement of a Proceeding, result in such Subordinated Creditor
      receiving less than it would otherwise receive;

     

    (iii)          each
      Subordinated Creditor hereby irrevocably (x) authorizes, empowers and directs
      all receivers, trustees, debtors in possession, liquidators, custodians,
      conservators and others having authority in the premises to effect all such
      payments and deliveries, and each Subordinated Creditor also irrevocably
      authorizes, empowers and directs, the Agent and the Lenders until the Senior
      Indebtedness shall have been Paid in Full, to demand, sue for, collect and
      receive every such payment or distribution, and (y) agrees to execute and
      deliver to the Agent and the Lenders all such further instruments confirming
      the
      authorization referred to in the foregoing clause (x); and

     

    (iv)           each
      Subordinated Creditor hereby irrevocably authorizes, empowers and appoints
      Agent
      and the Lenders (until the Senior Indebtedness shall have been Paid in Full)
      as
      its agent and attorney in fact to (x) execute, verify, deliver and file such
      proofs of claim upon the failure of any Subordinated Creditor promptly to do
      so
      (and in any event prior to thirty (30) days before the expiration of the time
      to
      file any proof) and (y) vote such claims in any such Proceeding; provided that
      no holder of Senior Indebtedness shall have any obligation to execute, verify,
      deliver and/or file any such proof of claim or vote such claim.  In
      the event the

     

    
      
         

      

      
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    Agent
      or
      any Lender (or any agent, designee or nominee thereof) votes any claim in
      accordance with the authority granted hereby, such Subordinated Creditor shall
      not be entitled to change or withdraw such vote.

     

    The
      Senior Indebtedness shall continue to be treated as Senior Indebtedness and
      the
      provisions hereof shall continue to govern the relative rights and priorities
      of
      Lenders and the Subordinated Creditors even if all or part of the Senior
      Indebtedness or the security interests securing the Senior Indebtedness are
      subordinated, set aside, avoided or disallowed in connection with any such
      Proceeding and the provisions hereof shall be reinstated if at any time any
      payment of any of the Senior Indebtedness is rescinded or must otherwise be
      returned by Agent, any Lender or any agent, designee or nominee of such
      holder.

     

    2.4  Incorrect
      Payments.  If any payment (whether made in cash,
      securities or other property) not permitted under this Agreement is received
      by
      any Subordinated Creditor on account of the Subordinated Indebtedness before
      all
      Senior Indebtedness is Paid in Full, such payment shall not be commingled with
      any asset of such Subordinated Creditor, shall be held in trust by such
      Subordinated Creditor for the benefit of the Lenders and shall promptly be
      paid
      over to the Lenders, or their respective designated representatives, for
      application (in accordance with the Purchase Agreement, the Notes or the
      Permitted Refinancing Loan Documents) to the payment of the Senior Indebtedness
      then remaining unpaid, until all of the Senior Indebtedness is Paid in
      Full.

     

    2.5  Sale,
      Transfer.  No Subordinated Creditor shall sell, assign,
      dispose of or otherwise transfer all or any portion of the Subordinated
      Indebtedness or any Subordinated Note or other Subordinated Indebtedness
      Document (a) without giving prior written notice of such action to Agent, (b)
      unless prior to the consummation of any such action, the transferee thereof
      shall execute and deliver to Agent and the Lenders a joinder to this Agreement,
      or an agreement substantially identical to this Agreement and acceptable to
      Agent and the Lenders, in either case providing for the continued subordination
      and forbearance of the Subordinated Indebtedness to the Senior Indebtedness
      as
      provided herein and for the continued effectiveness of all of the rights of
      Agent and Lenders arising under this Agreement and (c) unless following such
      sale, assignment, pledge, disposition or other transfer, there shall either
      be
      (i) no more than two more than the number of  holders of Subordinated
      Indebtedness on the date hereof or (ii) one Person acting as agent for all
      holders of the Subordinated Indebtedness pursuant to documentation reasonably
      satisfactory to Agent, such that any notices and communications to be delivered
      to Subordinated Creditors hereunder and any consents required by Subordinated
      Creditors shall be made to or obtained from such agent and shall be binding
      on
      each Subordinated Creditor as if directly obtained from such Subordinated
      Creditor.  In the event of a permitted sale, assignment, disposition
      or other transfer, each Subordinated Creditor engaging in such sale, assignment,
      disposition or other transfer, prior to the consummation of any such action,
      shall cause the transferee thereof to execute and deliver to Agent and the
      Lenders a joinder to this Agreement, or an agreement substantially identical
      to
      this Agreement and acceptable to the Lenders, in either case providing for
      the
      continued subordination and forbearance of the

     

    
      
         

      

      
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    Subordinated
      Indebtedness to the Senior Indebtedness as provided herein and for the continued
      effectiveness of all of the rights of Lenders and Agent arising under this
      Agreement.  Notwithstanding the failure to execute or deliver any such
      agreement, the subordination effected hereby shall survive any sale, assignment,
      disposition or other transfer of all or any portion of the Subordinated
      Indebtedness, and the terms of this Agreement shall be binding upon the
      successors and assigns of each Subordinated Creditor, as provided in Section
      10
      below.

     

    2.6  Legends.  Until
      the Senior Indebtedness is Paid in Full, each of the Subordinated Indebtedness
      Documents at all times shall contain in a conspicuous manner the following
      legend:

     

    “This
      [
      Promissory Note ] and the indebtedness evidenced hereby are subordinate in
      the
      manner and to the extent set forth in that certain Subordination Agreement
      dated
      as of August 22, 2007 (the “Subordination Agreement”) among Galaxy Energy
      Corporation, the Subordinated Creditors named therein, the Lenders named
      therein, and Promethean Asset Management L.L.C., to the Senior Indebtedness
      (as
      defined in the Subordination Agreement); and each holder of this Promissory
      Note, by its acceptance hereof, shall be bound by the provisions of the
      Subordination Agreement.”

     

    2.7  Restriction
      on Action by Subordinated Creditors.

     

    (a)  Until
      the
      Senior Indebtedness is Paid in Full and notwithstanding anything contained
      in
      the Subordinated Indebtedness Documents, the Purchase Agreement, the other
      Loan
      Documents or the Permitted Refinancing Loan Documents to the contrary, no
      Subordinated Creditor shall, without the prior written consent of Agent, agree
      to any amendment, modification or supplement to the Subordinated Indebtedness
      Documents, the effect of which is to (i) increase the maximum principal amount
      of the Subordinated Indebtedness or rate of interest (or cash pay rate of
      interest) on any of the Subordinated Indebtedness, (ii) change to an earlier
      date, any date upon which payments of principal or interest on the Subordinated
      Indebtedness are due or otherwise front load the amortization of any of the
      Subordinated Indebtedness, (iii) change in a manner adverse to any Obligor
      or
      add any event of default or add or make more restrictive any covenant with
      respect to the Subordinated Indebtedness, (iv) change the redemption, prepayment
      or put provisions of the Subordinated Indebtedness, (v) alter the subordination
      provisions with respect to the Subordinated Indebtedness, including, without
      limitation, subordinating the Subordinated Indebtedness to any other debt,
      (vi)
      shorten the maturity date of any of the Subordinated Indebtedness or otherwise
      alter the repayment terms of the Subordinated Indebtedness in a manner adverse
      to any Obligor, (vii) take any liens in any assets of any Obligor or any of
      its
      Subsidiaries or any other assets securing the Senior Indebtedness or (viii)
      obtain any guaranties or credit support from any Person which is an affiliate
      of
      any Obligor, or (ix) change or amend any other term of the Subordinated
      Indebtedness Documents if such change or amendment would increase the
      obligations of any Obligor or confer additional material rights on
      any

     

    
      
         

      

      
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    Subordinated
      Creditor or any other holder of the Subordinated Indebtedness in a manner
      adverse to any Obligor, Agent or Lenders.

     

    (b)  Until
      the
      Senior Indebtedness is Paid in Full, no Subordinated Creditor shall, without
      the
      prior written consent of Agent, take or continue any action, or exercise any
      rights, remedies or powers in respect of the Subordinated Indebtedness or any
      Subordinated Indebtedness Document, or exercise or continue to exercise any
      other right or remedy at law or in equity that such Subordinated Creditor might
      otherwise possess, to collect any amount due and payable in respect of any
      Subordinated Indebtedness, including, without limitation, the acceleration
      of
      the Subordinated Indebtedness, the commencement of any action to enforce payment
      or foreclosure on any lien or security interest, the filing of any petition
      in
      bankruptcy or the taking advantage of any other insolvency law of any
      jurisdiction (any of the foregoing, an “Enforcement
      Action”).  If any Subordinated Creditor shall attempt to take
      any Enforcement Action or otherwise seek to collect or realize upon any of
      the
      Subordinated Indebtedness in violation of the terms hereof, the holders of
      the
      Senior Indebtedness may, by virtue of the terms hereof, restrain any such
      Enforcement Action or other action, either in its own name or in the name of
      the
      applicable Obligor.

     

    (c)           Until
      the Senior Indebtedness is Paid in Full, any Liens of Subordinated Creditors
      in
      the Collateral which may exist in breach of each Subordinated Creditor's
      agreement pursuant to subsection 2.7(a)(vii) or Section 18 of this Agreement
      shall be and hereby are subordinated for all purposes and in all respects to
      the
      Liens of Agent and Lenders in the Collateral, regardless of the time, manner
      or
      order of perfection of any such Liens.  In the event that any
      Subordinated Creditor obtains any Liens in the Collateral in violation of
      subsection 2.7(a)(vii) or Section 18 of this Agreement, Subordinated Creditors
      (i) shall (or shall cause their agent to) promptly execute and deliver to Agent
      such termination statements and releases as Agent shall request to effect the
      release of the Liens of such Subordinated Creditor in such Collateral and (ii)
      shall be deemed to have authorized Agent to file any and all termination
      statements required by Agent in respect of such Liens. In furtherance of the
      foregoing, each Subordinated Creditor hereby irrevocably appoints Agent its
      attorney-in-fact, with full authority in the place and stead of such
      Subordinated Creditor and in the name of such Subordinated Creditor or
      otherwise, to execute and deliver any document or instrument which such
      Subordinated Creditor may be required to deliver pursuant to this subsection
      2.7(c).

     

    3.  Continued
      Effectiveness of this Agreement; Modifications to Senior
      Indebtedness.

     

    (a)
      The
      terms of this Agreement, the subordination effected hereby, and the rights
      and
      the obligations of Subordinated Creditors, Agent and Lenders arising hereunder,
      shall not be affected, modified or impaired in any manner or to any extent
      by:
      (i) any amendment or modification of or supplement to the Purchase Agreement,
      any other Loan Document or any Permitted Refinancing Loan Document or any
      Subordinated Indebtedness Document; (ii) the validity or enforceability of
      any
      of such documents; or (iii) any exercise or non-exercise of any right, power
      or
      remedy under or in respect of the

     

    
      
         

      

      
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    Senior
      Indebtedness or the Subordinated Indebtedness or any of the instruments or
      documents referred to in clause (i) above.

     

    (b)  Agent
      and Lenders may at any time and from time to time in their sole discretion,
      renew, amend, refinance, extend or otherwise modify the terms and provisions
      of
      Senior Indebtedness (including, without limitation, the terms and provisions
      relating to the principal amount outstanding thereunder, the rate of interest
      thereof, the payment terms thereof and the provisions thereof regarding default
      or any other matter) or exercise (or refrain from exercising) any of their
      rights under the Loan Documents, all without notice to or consent from the
      Subordinated Creditors and without incurring liability to any Subordinated
      Creditor and without impairing or releasing the obligations of any Subordinated
      Creditor under this Agreement.  No compromise, alteration, amendment,
      renewal, restatement, refinancing or other change of, or waiver, consent or
      other action in respect of any liability or obligation under or in respect
      of,
      any terms, covenants or conditions of Senior Indebtedness or the Loan Documents,
      whether or not in accordance with the provisions of the Senior Indebtedness,
      shall in any way alter or affect any of the subordination provisions
      hereof.

    

    4.  Representations
      and Warranties.

     

    (a)           Each
      Subordinated Creditor hereby represents and warrants (as to itself and not
      as to
      any other Subordinated Creditor) to Agent and Lenders as follows:

     

    4.1  Existence
      and Power.  If an entity, such Subordinated Creditor is
      duly organized, validly existing and in good standing under the laws of the
      state of its organization.

     

    4.2  Authority.  Such
      Subordinated Creditor has full power and authority to enter into, execute,
      deliver and carry out the terms of this Agreement and to incur the obligations
      provided for herein, all of which have been duly authorized by all proper and
      necessary action and are not prohibited by the organizational documents of
      such
      Subordinated Creditor.

     

    4.3  Binding
      Agreements.  This Agreement, when executed and delivered,
      will constitute the valid and legally binding obligation of such Subordinated
      Creditor enforceable in accordance with its terms.

     

    4.4  Conflicting
      Agreements; Litigation.  No provisions of any mortgage,
      indenture, contract, agreement, statute, rule, regulation, judgment, decree
      or
      order binding on such Subordinated Creditor or affecting the property of such
      Subordinated Creditor conflicts with, or requires any consent which has not
      already been obtained under, or would in any way prevent the execution, delivery
      or performance of the terms of this Agreement.  The execution,
      delivery and carrying out of the terms of this Agreement will not constitute
      a
      default under, or result in the creation or imposition of, or obligation to
      create, any Lien upon the property of such Subordinated Creditor pursuant to
      the
      terms of any such mortgage, indenture, contract or agreement.  No
      pending or, to the best of such

     

    
      
         

      

      
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    Subordinated
      Creditor’s knowledge, threatened, litigation, arbitration or other proceedings
      if adversely determined would in any way prevent the performance of the terms
      of
      this Agreement.

     

    4.5  No
      Divestiture.  On the date hereof, such Subordinated
      Creditor which is signatory hereto is the current owner and holder of its
      Subordinated Note and all other Subordinated Indebtedness Documents (if
      any).

     

    4.6  Default
      under Subordinated Indebtedness Documents.  On the date
      hereof, no default exists under or with respect to the Subordinated Note held
      by
      Subordinated Creditor or any of the other Subordinated Indebtedness Documents
      applicable to such Subordinated Note.

     

    (b)           Each
      Obligor hereby represents and warrants to Agent and Lenders that the signatory
      to this Agreement under the heading “Subordinated Creditor” constitutes the only
      holder of the Subordinated Note and the other Subordinated
      Indebtedness.

     

    5.  Cumulative
      Rights, No Waivers.  Each and every right, remedy and
      power granted to Agent or Lenders hereunder shall be cumulative and in addition
      to any other right, remedy or power specifically granted herein, in the Purchase
      Agreement, the other Loan Documents or Permitted Refinancing Loan Documents
      or
      now or hereafter existing in equity, at law, by virtue of statute or otherwise,
      and may be exercised by Agent or Lenders, from time to time, concurrently or
      independently and as often and in such order as Agent or Lenders may deem
      expedient.  Any failure or delay on the part of Agent or Lenders in
      exercising any such right, remedy or power, or abandonment or discontinuance
      of
      steps to enforce the same, shall not operate as a waiver thereof or affect
      Agent’s or Lenders’ right thereafter to exercise the same, and any single or
      partial exercise of any such right, remedy or power shall not preclude any
      other
      or further exercise thereof or the exercise of any other right, remedy or power,
      and no such failure, delay, abandonment or single or partial exercise of Agent’s
      or Lenders’ rights hereunder shall be deemed to establish a custom or course of
      dealing or performance among the parties hereto.

     

    6.  Modification.  Any
      modification or waiver of any provision of this Agreement, or any consent to
      any
      departure by Agent or any Subordinated Creditor therefrom, shall not be
      effective in any event unless the same is in writing and signed by Agent and
      the
      holders of at least 51% of the then outstanding principal balance of the
      Subordinated Note and then such modification, waiver or consent shall be
      effective only in the specific instance and for the specific instance and for
      the specific purpose given.  Any notice to or demand on any
      Subordinated Creditor in any event not specifically required of Agent hereunder
      shall not entitle any Subordinated Creditor to any other or further notice
      or
      demand in the same, similar or other circumstances unless specifically required
      hereunder.

     

    7.  Additional
      Documents and Actions.  Each Subordinated Creditor at any
      time, and from time to time, after the execution and delivery of this Agreement,
      upon the request of Agent and at the expense of Borrower, will promptly execute
      and deliver such further documents and do such further acts and things as Agent
      may request in order to effect fully the purposes of this
      Agreement.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    8.  Notices.  Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered:  (i) upon receipt, when delivered personally;
      (ii) upon receipt, when sent by facsimile (provided confirmation of transmission
      is mechanically or electronically generated and kept on file by the sending
      party); or (iii) one (1) Business Day after deposit with a nationally recognized
      overnight delivery service, in each case properly addressed to the party to
      receive the same.  The addresses and facsimile numbers for such
      communications shall be:

     

    
      	
                           
                If to Bruner Trust:

            	
              Bruner
                Family Trust UTD March 28, 2005

              Cynthia
                L. Gausvik, Trustee

              Patton
                Boggs LLP

              8484
                Westpark Drive, Suite 900

              McLean,
                Virginia 22102

              Telecopy:  (703)
                744-8001

               

            
	 	 
	
                            If
                to any other Subordinated

                            Creditor:

            	
              To
                the address of such Subordinated Creditor set forth on the joinder
                to this
                Agreement executed by such Subordinated Creditor

            
	 	 
	
                           
                If to any Obligor:

            	
              Galaxy
                Energy Corporation

              1331
                17th Street, Suite 1050

              Denver,
                Colorado 80202

              Attention:  Marc
                E. Bruner

              Telecopy:
                (303) 293-2417

               

            
	 	 
	
                           
                with a copy to:

            	
              Dill
                Dill Carr Stonbraker & Hutchings, P.C.

              455
                Sherman Street, Suite 300

              Denver,
                Colorado 80203

              Attention:  Fay
                M. Matsukage

              Telecopy:
                (303) 777-3823

            
	 	 
	
                           
                If to Agent:

            	
              Promethean
                Asset Management L.L.C.

              55
                Fifth Avenue, 17th Floor

              New
                York, New York 10003

              Attention:
                James F. O’Brien

              Telephone:
                (212) 702-5200

              Facsimile:
                (212) 758-9334

            
	 	 
	
                           
                with a copy to:

            	
              Katten
                Muchin Rosenman LLP

              525
                West Monroe Street

              Chicago,
                Illinois 60661-3693

              Attn:
                Mark D. Wood, Esq.

              Telecopy:
                (312) 902-1061

            

    

     

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    
      	 	 
	
                             If
                to a Lender:

            	
              To
                the address of such Lender set forth on the Schedule I
                hereto

            

    

    

    or,
      in
      the case of party named above, at such other address and/or facsimile number
      and/or to the attention of such other person as the recipient party has
      specified by written notice given to each other party five (5) days prior to
      the
      effectiveness of such change.  Written confirmation of receipt (A)
      given by the recipient of such notice, consent, waiver or other communication,
      (B) mechanically or electronically generated by the sender’s facsimile machine
      containing the time, date, recipient facsimile number and an image of the first
      page of such transmission or (C) provided by a nationally recognized overnight
      delivery service shall be rebuttable evidence of personal service, receipt
      by
      facsimile or deposit with a nationally recognized overnight delivery service
      in
      accordance with clause (i), (ii) or (iii) above, respectively.

     

    9.  Severability.  In
      the event that any provision of this Agreement is deemed to be invalid by reason
      of the operation of any law or by reason of the interpretation placed thereon
      by
      any court or governmental authority, this Agreement shall be construed as not
      containing such provision and the invalidity of such provision shall not affect
      the validity of any other provisions hereof, and any and all other provisions
      hereof which otherwise are lawful and valid shall remain in full force and
      effect.

     

    10.  Successors
      and Assigns.  This Agreement shall inure to the benefit
      of the successors and assigns of Agent and Lenders and shall be binding upon
      the
      successors and assigns of Subordinated Creditors and Obligors.

     

    11.  Counterparts.  This
      Agreement may be executed in two or more identical counterparts, all of which
      shall be considered one and the same agreement and shall become effective when
      counterparts have been signed by each party and delivered to each other party;
      provided that a facsimile signature shall be considered due execution and shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

     

    12.  Defines
      Rights of Creditors; Subrogation.

     

    (a)  The
      provisions of this Agreement are solely for the purpose of defining the relative
      rights of Subordinated Creditors, Agent and Lenders and shall not be deemed
      to
      (i) create any rights or priorities in favor of any other Person, including,
      without limitation, any Obligor, (ii) amend any of the Loan Documents or in
      any
      way waive any of the rights that the Agent and the Lenders have against any
      Obligor under the Loan Documents, or (iii) waive any Event of Default or
      Triggering Event under any of the Loan Documents.

     

    (b)  Subject
      to the Payment in Full of the Senior Indebtedness, in the event and to the
      extent cash, property or securities otherwise payable or deliverable to the
      holders of the Subordinated Indebtedness shall have been applied pursuant to
      this Agreement to the payment of Senior Indebtedness, then and in each such
      event, the holders of the Subordinated Indebtedness shall be subrogated to
      the
      rights of each holder

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    of
      Senior
      Indebtedness to receive any further payment or distribution in respect of or
      applicable to the Senior Indebtedness; and, for the purposes of such
      subrogation, no payment or distribution to the holders of Senior Indebtedness
      of
      any cash, property or securities to which any holder of Subordinated
      Indebtedness would be entitled except for the provisions of this Agreement
      shall, and no payment over pursuant to the provisions of this Agreement to
      the
      holders of Senior Indebtedness by the holders of the Subordinated Indebtedness
      shall, as between any Obligor, its creditors other than the holders of Senior
      Indebtedness and the holders of Subordinated Indebtedness, be deemed to be
      a
      payment by such Obligor to or on account of Senior Indebtedness.

     

    13.  Conflict.  In
      the event of any conflict between any term, covenant or condition of this
      Agreement and any term, covenant or condition of any of the Subordinated
      Indebtedness Documents, the provisions of this Agreement shall control and
      govern.  For purposes of this Section 13, to the extent that any
      provisions of any of the Subordinated Indebtedness Documents provide rights,
      remedies and benefits to Agent or Lenders that exceed the rights, remedies
      and
      benefits provided to Agent or Lenders under this Agreement, such provisions
      of
      the applicable Subordinated Indebtedness Documents shall be deemed to supplement
      (and not to conflict with) the provisions hereof.

     

    14.  Statement
      of Indebtedness to Subordinated Creditors.  Borrower will
      furnish to Agent upon demand, a statement of the indebtedness owing from
      Obligors to Subordinated Creditors, and will give Agent access to the books
      of
      Obligors in accordance with the Purchase Agreement so that Agent can make a
      full
      examination of the status of such indebtedness.

     

    15.  Headings.  The
      paragraph headings used in this Agreement are for convenience only and shall
      not
      affect the interpretation of any of the provisions hereof.

     

    16.  Termination.  This
      Agreement shall terminate upon the Payment in Full of the Senior
      Indebtedness.

     

    17.  Subordinated
      Default Notice.  Subordinated Creditors and Borrower each
      shall provide Agent with a Subordinated Default Notice upon the occurrence
      of
      each Subordinated Default, and Subordinated Creditors shall notify Agent in
      the
      event such Subordinated Default is cured or waived.

     

    18.  No
      Contest of Senior Indebtedness or Liens; No Security for Subordinated
      Indebtedness.  Each Subordinated Creditor agrees that it
      will not, and will not encourage any other Person to, at any time, contest
      the
      validity, perfection, priority or enforceability of the Senior Indebtedness
      or
      Liens in the Collateral granted to Agent and the Lenders pursuant to the
      Purchase Agreement, the other Loan Documents or the Permitted Refinancing Loan
      Documents or accept or take any collateral security for the Subordinated
      Indebtedness.  In furtherance of the foregoing, on the date hereof,
      each Subordinated Creditor hereby represents and warrants that it has not taken
      or received a security interest in, or lien upon, any asset of any Obligor,
      whether in respect of the Subordinated Indebtedness or otherwise.

     

    
      19.  Governing
        Law, Jurisdiction Waiver of Jury
        Trial.  All questions concerning the
        construction, validity, enforcement and interpretation of this Agreement
        shall
        be governed by 

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    the
      internal laws of the State of New York, without giving effect to any choice
      of
      law or conflict of law provision or rule (whether of the State of New York
      or
      any other jurisdiction) that would cause the application of the laws of any
      jurisdiction other than the State of New York.  Each party hereby
      irrevocably submits to the exclusive jurisdiction of the state and federal
      courts sitting in the City of New York, borough of Manhattan, for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper.  Each party
      hereby irrevocably waives personal service of process and consents to process
      being served in any such suit, action or proceeding by mailing a copy thereof
      to
      such party at the address for such notices to it under this Agreement and agrees
      that such service shall constitute good and sufficient service of process and
      notice thereof.  Nothing contained herein shall be deemed to limit in
      any way any right to serve process in any manner permitted by
      law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND
      AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
      HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
      TRANSACTION CONTEMPLATED HEREBY.

     

    20.  Waiver
      of Consolidation.  Each Subordinated Creditor
      acknowledges and agrees that (i) Obligors are each separate and distinct
      entities; and (ii) it will not at any time insist upon, plead or seek advantage
      of any substantive consolidation, piercing the corporate veil or any other
      order
      or judgment that causes an effective combination of the assets and liabilities
      of Obligors in any case or proceeding under Title 11 of the United States Code
      or other similar proceeding.

     

    [remainder
      of page intentionally left blank; signature pages follow]

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, Subordinated Creditor, each Obligor, Agent and each
      Lender has caused this Agreement to be executed as of the date first above
      written.

     

    
      	 	SUBORDINATED
              CREDITOR:	 
	 	 	 	 
	 	BRUNER
              FAMILY TRUST UTD MARCH 28, 2005 	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Marc
              E.
              Bruner	 
	 	 	Name: 
Marc
              E. Bruner 	 
	 	 	Title:   
              Trustee 	 
	 	 	 	 

    

     

    
      	 	 	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 
              Cynthia L. Gausvik	 
	 	 	Name: 
              Cynthia L. Gausvik	 
	 	 	Title:   
              Trustee	 
	 	 	 	 

    

     

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	OBLIGORS:	 
	 	 	 	 
	 	GALAXY
              ENERGY CORPORATION, a Colorado corporation 	 
	
               

            	
              By:
                

            	/s/ 
              Christopher S. Hardesty 	 
	 	 	Name: 
              Christopher S. Hardesty	 
	 	 	Title:  
              SVP & CFO	 
	 	 	 	 

    

     

    
      	 	 	 
	 	DOLPHIN
              ENERGY CORPORATION, a Nevada corporation  	 
	
               

            	
              By:
                

            	/s/ Richard
              E. Kurtenbach	 
	 	 	Name: 
              Richard E. Kurtenbach	 
	 	 	Title:
              Corporate Secretary	 
	 	 	 	 

    

     

    
      	 	 	 
	 	PANNONIAN
              INTERNATIONAL, LTD., a Colorado corporation  	 
	
               

            	
              By:
                

            	/s/ 
              Richard E. Kurtenbach	 
	 	 	Name: 
              Richard E. Kurtenbach	 
	 	 	Title: 
              Corporate Secretary	 
	 	 	 	 

    

     

    
      	 	AGENT:	 
	 	 	 	 
	 	PROMETHEAN
              ASSET MANAGEMENT L.L.C. in its capacity as agent for all
              Lenders  	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

    

     

    
      	 	LENDERS:	 
	 	 	 	 
	 	HFTP
              INVESTMENTS, LLC  	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	PROMETHEAN
              II MASTER, L.P.	 
	 	By:	Promethean
              Asset Management L.L.C. 	 
	 	Its: 	Investment
              Manager 	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

    

     

    
       

      
        	 	PROMETHEAN
                I MASTER, LTD.	 
	 	By:	Promethean
                Asset Management L.L.C. 	 
	 	Its: 	Investment
                Manager 	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

       

       

      
        	 	CAERUS
                PARTNERS LLC	 
	 	By:	Promethean
                Asset Management L.L.C. 	 
	 	Its: 	Investment
                Manager 	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

       

       

      
        	 	AG
                OFFSHORE CONVERTIBLES, LTD.	 
	 	By:	Promethean
                Asset Management L.L.C. 	 
	 	Its: 	Investment
                Manager 	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

       

    
      
         

      

      
         

        
          

        

      

      
         

      

       

      
         

        
          	 	LEONARDO,
                  L.P.	 
	 	By:	Leonardo
                  Capital Management, Inc. 	 
	 	Its: 	General
                  Partner	 
	 	By: 	Angelo,
                  Gordon & Co., L.P. 	 
	 	Its:
                   	Director 	 
	 	 	 	 
	
                   

                	
                  By:
                    

                	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

        

      

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      I

    NOTICE
      ADDRESS FOR LENDERS

    

    
      	
               

              Buyer’s
                Name

            	
               

              Buyer
                Address

              and
                Facsimile Number

            	
               

              Investor’s
                Legal Representative’s

              Address
                and Facsimile Number

            
	 	 	 
	
               

              HFTP
                Investments LLC

            	
               

              c/oPromethean
                Asset Management L.L.C.

              55
                Fifth Avenue

               17th
                Floor

              New
                York, New York 10003

              Attention:
                James F. O’Brien

              Telephone:
                (212) 702-5200

              Facsimile:
                (212) 758-9334

              Residence:
                Delaware

            	
               

              Katten
                Muchin Rosenman LLP

              525
                W. Monroe Street

              Chicago,
                Illinois 60661-3693

              Attention:
                Mark D. Wood, Esq.

              Telephone:
                (312) 902-5200

              Facsimile:
                (312) 902-1061

            
	
               

              Promethean
                II Master, L.P.

            	
               

              c/oPromethean
                Asset Management L.L.C.

              55
                Fifth Avenue

               17th
                Floor

              New
                York, New York 10003

              Attention:
                James F. O’Brien

              Telephone:
                (212) 702-5200

              Facsimile:
                (212) 758-9334

              Residence:
                Cayman Islands

            	
               

              Katten
                Muchin Rosenman LLP

              525
                W. Monroe Street

              Chicago,
                Illinois 60661-3693

              Attention:
                Mark D. Wood, Esq.

              Telephone:
                (312) 902-5200

              Facsimile:
                (312) 902-1061

            
	
               

              Promethean
                I Master Ltd.

            	
               

              c/oPromethean
                Asset Management L.L.C.

              55
                Fifth Avenue

               17th
                Floor

              New
                York, New York 10003

              Attention:
                James F. O’Brien

              Telephone:
                (212) 702-5200

              Facsimile:
                (212) 758-9334

              Residence:
                Cayman Islands

            	
               

              Katten
                Muchin Rosenman LLP

              525
                W. Monroe Street

              Chicago,
                Illinois 60661-3693

              Attention:
                Mark D. Wood, Esq.

              Telephone:
                (312) 902-5200

              Facsimile:
                (312) 902-1061

            
	
               

              Caerus
                Partners LLC

            	
               

              c/oPromethean
                Asset Management L.L.C.

              55
                Fifth Avenue

              17th
                Floor

              New
                York, New York 10003

              Attention:
                James F. O’Brien

              Telephone:
                (212) 702-5200

              Facsimile:
                (212) 758-9334

              Residence:
                Delaware

            	
               

              Katten
                Muchin Rosenman LLP

              525
                W. Monroe Street

              Chicago,
                Illinois 60661-3693

              Attention:
                Mark D. Wood, Esq.

              Telephone:
                (312) 902-5200

              Facsimile:
                (312) 902-1061

            
	
               

              AG
                Offshore Convertibles, Ltd.

            	
               

              c/o
                Angelo, Gordon & Co.

              245
                Park Avenue

              New
                York, New York 10167

              Attention:  Gary
                I. Wolf

              Telephone:
                (212) 692-2058

              Facsimile:  (212)
                867-6449

              Residence:  Cayman
                Islands

            	
               

              Paul,
                Weiss, Rifkind, Wharton & Garrison LLP

              1285
                Avenue of the Americas

              New
                York, New York 10019-6064

              Attention:  Douglas
                A. Cifu, Esq.

              Telephone:
                (212) 373-3000

              Facsimile:   (212)  759-3990

            

    

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               

               Buyer's
                Name

            	
              Buyer
                Address

              and
                Facsimile Number

            	
              Investor's
                Legal Representative's

              Address
                and Facsimile Number 

            
	
               

              Leonardo,
                L.P.

            	
               

              c/o
                Angelo, Gordon & Co.

              245
                Park Avenue

              New
                York, New York 10167

              Attention:  Gary
                I. Wolf

              Telephone:
                (212) 692-2058

              Facsimile:  (212)
                867-6449

              Residence:  Cayman
                Islands

            	
               

              Paul,
                Weiss, Rifkind, Wharton & Garrison LLP

              1285
                Avenue of the Americas

              New
                York, New York 10019-6064

              Attention:  Douglas
                A. Cifu, Esq.

              Telephone:
                (212) 373-3000

              Facsimile:   (212)  759-3990exh10_1.htm

    EXHIBIT
      10.1

     

    CREDIT
      FACILITIES AGREEMENT

     

    among

    GE
      COMMERCIAL DISTRIBUTION FINANCE CORPORATION

     

    asAdministrative
      Agent

     

    and

    GECC
      CAPITAL MARKETS GROUP, INC.

     

    as
      Sole Lead Arranger and Sole Bookrunner

    and

     

    GE
      COMMERCIAL DISTRIBUTION FINANCE CORPORATION

    and

    THE
      OTHER LENDERS LISTED ON EXHIBIT 3 AND
      SIGNATURE PAGES
      HERETO

     

    as
      Lenders

     

    and

     

    MTM
      TECHNOLOGIES, INC.,

    MTM
      TECHNOLOGIES (US), INC.,

    MTM
      TECHNOLOGIES (MASSACHUSETTS), LLC, and

    INFO
      SYSTEMS, INC.

    jointly
      and severally

     

    as
      Borrower

     

    August
      21, 2007

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CREDIT
      FACILITIES AGREEMENT

     

    In
      consideration of the mutual agreements herein and other sufficient
      consideration, the receipt of which is hereby acknowledged, MTM TECHNOLOGIES,
      INC., a New York corporation, MTM TECHNOLOGIES (US), INC., a Delaware
      corporation, MTM TECHNOLOGIES (MASSACHUSETTS), LLC, a Delaware limited liability
      company, and INFO SYSTEMS, INC., a Delaware corporation (collectively, and
      separately referred to as, “Borrower” or “the Borrower”), and GE COMMERCIAL
      DISTRIBUTION FINANCE CORPORATION (“CDF”), as Administrative Agent, and CDF and
      the other lenders listed on Exhibit 3 of this Agreement and the signature
      pages hereto (and their respective successors and permitted assigns), as
“Lenders”, agree as follows:

     

    1.           Effective
      Date.  This Agreement is effective August 21,
      2007.

     

    2.           Definitions;
      Rules of Construction; Borrowing Agent; Patriot Act.

     

    2.1.           Listed
      Definitions.  Capitalized words defined in the Glossary and
      Index of Defined Terms attached hereto as Exhibit 2.1 shall have such
      defined meanings wherever used in this Agreement and the other Loan
      Documents.

     

    2.2.           Other
      Definitions.  If a capitalized word in this Agreement is not
      defined in the Glossary and Index of Defined Terms, it shall have such meaning
      as defined elsewhere herein, or if not defined elsewhere herein, the meaning
      defined in the UCC.

     

    2.3.           References
      to Borrower.  The words “a Borrower”, “any Borrower”, “each
      Borrower” and “every Borrower” refer to each of MTM Technologies, Inc., MTM
      Technologies (US), Inc., MTM Technologies (Massachusetts), LLC, and Info
      Systems, Inc., both separately and collectively, as though each such entity
      were
      actually listed, and their Obligations and liabilities (including, without
      limitation, the Loan Obligations) under the Loan Documents are joint and several
      in all respects.

     

    2.4.           References
      to Covered Person.  The words “Covered Person”, “a Covered
      Person”, “any Covered Person”, “each Covered Person” and “every Covered Person”
refer to Borrower and each of their currently existing or later acquired,
      created or organized Subsidiaries separately.  The words “Covered
      Persons” refers to Borrower and their currently existing or later acquired,
      created or organized Subsidiaries collectively.

     

    2.5.           References
      to Required Lenders.  The words “Required Lenders” means any
      one or more Lenders whose shares of Lenders’ Exposure at the relevant time
      aggregate at least 51.0000% (subject to the terms of Section 7.5);
      provided, however, if there are two Lenders, then “Required Lenders” shall mean
      both such Lenders.

     

    2.6.           Accounting
      Terms.  Unless the context otherwise requires, accounting
      terms herein that are not defined herein shall be determined under
      GAAP.  All financial measurements contemplated hereunder respecting
      Borrower shall be made and calculated for Borrower and all of their now existing
      or later acquired, created or organized Subsidiaries, if any, on a consolidated
      basis in accordance with GAAP unless expressly provided otherwise
      herein.

     

    2.7.           Meaning
      of Satisfactory.  Whenever herein a document or matter is
      required to be satisfactory to Administrative Agent or satisfactory to Lenders
      or satisfactory to Required Lenders, unless expressly stated otherwise such
      document must be reasonably satisfactory to Administrative Agent, Lenders or
      Required Lenders (as applicable) in both form and substance, and unless
      expressly stated otherwise Administrative Agent, Lenders or Required Lenders
      (as

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    applicable)
      shall have the commercially reasonable discretion to determine whether the
      document or matter is satisfactory.

     

    2.8.           Computation
      of Time Periods.  In computing or defining periods of time
      from a specified date to a later specified date, and in computing the accrual
      of
      interest or fees, the word “from” shall mean “from and including” and the words
“to” and “until” shall each mean “to but excluding”.  Periods of days
      referred to in this Agreement shall be counted in calendar days unless Business
      Days are expressly prescribed, and references in this Agreement to months and
      years are to calendar months and calendar years unless otherwise
      specified.

     

    2.9.           Syndication
      Agent.  GECC Capital Markets Group, Inc. is given the titles
“Lead Arranger” and “Bookrunner” under the Credit Agreement and Loan
      Documents.  Nothing contained in the foregoing sentence, shall give
      GECC Capital Markets Group, Inc. any additional rights or obligations under
      the
      Credit Agreement or the Loan Documents.

     

    2.10.           Certificates
      of Borrower and Borrowing Officer, Advance Requests; Borrowing
      Agent.  Each Borrower hereby appoints MTM Technologies, Inc.
      as “Borrowing Agent.”  Because the operations and business activities
      of the Borrowers are highly integrated and interdependent, at any particular
      time it is impractical to determine which of the Borrowers will directly receive
      the proceeds of a Revolving Loan, Swingline Loan, Interim Floorplan Loan, or
      Floorplan Loan.  Each of the Borrowers hereby directs the Letter of
      Credit Issuer to issue Letters of Credit or cause the issuance of Letters of
      Credit, directs the Administrative Agent to disburse the proceeds of each
      Revolving Loan, Swingline Loan, Interim Floorplan Loan, and Floorplan Loan
      to or
      at the direction of the Borrowing Agent, with such directions to be subject
      to
      approval of the Administrative Agent in its
      discretion.  Notwithstanding anything herein to the contrary, proceeds
      of the initial Revolving Loan, and initial Floorplan Loan used to satisfy the
      existing Indebtedness of the applicable Borrower will be advanced directly
      to
      the holder of such Indebtedness.  From time to time, Borrowing Agent
      shall further distribute the proceeds of Revolving Loans, and Swingline Loans,
      to a particular Borrower or Borrowers, jointly and severally, or direct the
      disbursement of the Interim Floorplan Loan and Floorplan Loans for the account
      of each Borrower, and each Borrower represents and warrants that the subsequent
      receipt and use of such proceeds by any particular Borrower inures to the
      economic benefit directly and indirectly of all other Borrowers. For so long
      as
      the Loan Obligations remain outstanding and any Commitment remains in effect,
      each Borrower hereby covenants and agrees, and hereby grants to the Borrowing
      Agent an absolute and irrevocable power of attorney coupled with interest,
      and
      irrevocably designates, appoints, authorizes and directs the Borrowing Agent
      to
      (a) execute and deliver any Borrowing Base Certificates, (b) certify
      the financial statements of Borrower, (c) request Advances and execute and
      deliver written requests for Advances, (d) make any other deliveries
      required to be delivered periodically hereunder to Administrative Agent and/or
      any Lender, (e) act as its Borrowing Officer, and Administrative Agent and
      each Lender is entitled to rely on any such document or certificate signed
      by
      the Borrowing Agent and (f) otherwise take all other actions otherwise
      contemplated by this Section, and to act on behalf of such Borrower for purposes
      of giving and receiving notices and certifications under this Agreement or
      any
      other Loan Document.  The Administrative Agent is entitled to rely and
      act on the instructions of the Borrowing Agent.

     

    2.11.           General.  Unless
      the context of this Agreement clearly requires
      otherwise:  (i) references to the plural include the singular and
      vice versa;  (ii) references to any Person include such Person’s
      successors and assigns but, if applicable, only if such successors and assigns
      are permitted by this Agreement;  (iii) references to one gender
      include all genders;  (iv) ”including” is not
      limiting;  (v) ”or” has the inclusive meaning represented by the
      phrase “and/or;” (vi) the 

     

    
      
        
        

      

      
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    words
      “hereof,” “herein,” “hereby,” “hereunder” and similar terms in this Agreement
      refer to this Agreement as a whole, including its Exhibits, and not to any
      particular provision of this Agreement;  (vii) the word “Section”
or “section” and “Page” or “page” refer to a section or page, respectively, of,
      and the word Exhibit refers to an Exhibit to, this Agreement unless it expressly
      refers to something else; (viii) reference to any agreement, document, or
      instrument (including this Agreement and any other Loan Document or other
      agreement, document or instrument defined herein), means such agreement,
      document, or instrument as amended, modified, restated and/or replaced and
      in
      effect from time to time in accordance with the terms thereof and, if
      applicable, the terms hereof, and includes all attachments thereto and documents
      incorporated therein, if any; (ix) general and specific references to any
      Law means such Law as amended, modified, codified or reenacted, in whole or
      in
      part, and in effect from time to time; and (x) unless otherwise expressly
      modified, the word “anniversary” shall refer to the annual observance of such an
      event on that date in following years.  Section captions and the Table
      of Contents are for convenience only and shall not affect the interpretation
      or
      construction of this Agreement or the other Loan Documents.

     

    2.12.           Patriot
      Act Notification.  Administrative Agent and each Lender
      hereby notifies the Borrowers and each other Covered Person that, pursuant
      to
      the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56, signed
      into law October 26, 2001 (as amended from time to time (including any successor
      statute) and together with all rules promulgated thereunder, collectively,
      the
“Act”), it is required to obtain, verify and record information that identifies
      the Borrowers and each other Covered Person, which information includes the
      name
      and address of the Borrowers and each other Covered Person and other information
      that will allow Administrative Agent and each Lender to identify the Borrowers
      and each other Covered Person in accordance with the Act.

     

    2.13.           Other
      Deposits and Extensions of Credit.  CDF and its Affiliates,
      for their own account, may accept deposits from, and extend other credit to,
      Borrower and/or any Covered Person other than as set forth in this Agreement
      and
      the other Loan Documents, and without any duty to account to any Lender
      therefor.  No Lender will have any interest in any such deposits or
      extensions of credit made by or to CDF or its Affiliates, or the proceeds
      thereof or any collateral therefor.  Without limiting the foregoing,
      each Lender acknowledges and agrees that CDF may from time to time provide
      purchase order financing to Borrower for CDF’s own account pursuant to CDF’s
“Star” program (or other similar programs created in the future, collectively,
      the “Star Program”) and require Borrower to repay any advances made with respect
      thereto (“Star Advances”).  Any repayments made by Borrower with
      respect to Star Advances, or any amounts received by CDF in connection with
      any
      collateral therefor and/or proceeds thereof, will be applied by CDF to repay
      the
      Star Advances and will not be included in the Loan Obligations or be subject
      to
      this Agreement or the other Loan Documents, and no Lender shall have any rights
      with respect thereto, but shall be entitled to all the benefits of any
      Subordination Agreement and included in each Subordination Agreement as “senior
      indebtedness” or similar term(s).  Any repayments made by Borrower
      with respect to Revolving Loan Advances or Floorplan Loan Advances hereunder
      will not be included in the Star Program.

     

    3.           Lenders’
      Commitments and Facilities.  Subject to the terms and
      conditions hereof, and in reliance upon the Representations and
      Warranties:

     

    3.1.           Revolving
      Loan Commitments.

     

    3.1.1.              Aggregate
      Amount.  Subject to the limitations in Section 3.1.2,
      Section 3.6 and elsewhere herein, each Lender commits to make available to
      Borrower, from the 

     

    
      
        
        

      

      
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    Effective
      Date to the Revolving Loan Maturity Date, such Lender’s pro-rata share (as
      listed on Exhibit 3 hereto) of an “Aggregate Revolving Loan Commitment”
that is initially Twenty Million Dollars ($20,000,000), but which may decrease
      from time to time as provided herein, by funding such Lender’s pro-rata share of
      Revolving Loan Advances made from time to time by Administrative Agent as
      provided herein.  Subject to the limitations in Section 3.1.2 and
      elsewhere herein, payments and prepayments that are applied to reduce the
      Aggregate Revolving Loan may be reborrowed through Revolving Loan Advances
      or,
      subject to the terms and provisions herein, reborrowed through Swingline
      Advances.  Each Lender’s Revolving Loan Commitment is its pro-rata
      share of the Aggregate Revolving Loan Commitment.

     

    At
      anytime after the first Anniversary Date and from time to time thereafter,
      Borrower may reduce the amount of the Aggregate Revolving Loan Commitment in
      whole multiples of $5,000,000, but only if (i) Borrower gives Administrative
      Agent written notice of Borrower’s intention to make such reduction at least
      three Business Days prior to the effective date of the reduction, (ii) such
      reduction does not reduce the Aggregate Revolving Loan Commitment below the
      Maximum Swingline Amount, and (iii) Borrower makes on the effective date of
      the
      reduction any payment of principal and accrued but unpaid interest on the
      Aggregate Revolving Loan required under this Agreement as a consequence of
      the
      reduction, including, without limitation, as set forth in Section
      6.3.2.  Any such reduction of the amount of the Aggregate Revolving
      Loan Commitment, whether scheduled or voluntary, shall be
      permanent.

     

    Upon
      any
      reduction of the Aggregate Revolving Loan Commitment permitted in this
      Agreement, each Lender’s Revolving Loan Commitment will automatically reduce by
      such Lender’s pro-rata share of such reduction of the Aggregate Revolving Loan
      Commitment.

     

    3.1.2.              Limitation
      on Revolving Loan Advances.  No Revolving Loan Advance will
      be made which would result in either: (i) the Aggregate Revolving Loan exceeding
      the Maximum Available Amount; or (ii) the Lenders’ Exposure exceeding the Total
      Aggregate Facility Limit.  No Revolving Loan Advance will be made on
      or after the Revolving Loan Maturity Date.  Lenders may, however, in
      their absolute discretion make such Revolving Loan Advances, but shall not
      be
      deemed by doing so to have increased the Maximum Available Amount or the Total
      Aggregate Facility Limit and shall not be obligated to make any such Revolving
      Loan Advances thereafter.  At any time that there is an Existing
      Default, the Aggregate Revolving Loan Commitment may be canceled as provided
      in
      Section 16.3.  The “Maximum Available Amount” (which can be a
      negative number) on any date shall be a Dollar amount equal to (i) the
      lesser of (A) the amount of the Aggregate Revolving Loan Commitment and
      (B) the Borrowing Base on such date, minus (ii) the sum of
      (a) the Swingline Loan, (b) the Floorplan Shortfall, (c) the Letter of
      Credit Exposure on such date (except to the extent that a Revolving Loan Advance
      will be used immediately to reimburse Letter of Credit Issuer for unreimbursed
      draws on a Letter of Credit), (d) without duplication, the outstanding Aggregate
      Revolving Loans, (e) the amount of the Other Creditor Indebtedness (unless
      an
      Intercreditor Agreement in form and substance satisfactory to Administrative
      Agent has been executed between Administrative Agent and the holder of such
      Other Creditor Indebtedness), and (f) the amount of Bid Bonds.

     

    3.1.3.              Revolving
      Notes.  The obligation of Borrower to repay each Lender’s
      Revolving Loans shall, at the request of any Lender, be evidenced by a Revolving
      Note 

     

    
      
        
        

      

      
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    payable
      to the order of such Lender in a maximum principal amount equal to the amount
      of
      such Lender’s Revolving Loan Commitment, in a form acceptable to Administrative
      Agent.  In such event, the Borrower shall execute and deliver to such
      Lender such Revolving Note payable to the order of such Lender, with appropriate
      insertions, in a face principal amount equal to the Lender’s Revolving
      Commitment.  Thereafter, the Loans evidenced by each such Revolving
      Note and interest thereon shall at all times (prior to any assignment pursuant
      to Section 18.4) be represented by such Revolving Note payable to the order
      of
      the payee named therein, except to the extent that any such Lender subsequently
      returns any such Revolving Note for cancellation and requests that such Loans
      once again be evidenced as described as set forth herein.  The failure
      of a Lender to request a Revolving Note, or the failure of the Revolving Loans
      to be evidenced by a promissory note shall not affect the enforceability of
      the
      obligation of the Borrowers to repay such Lender’s Revolving Loans.

     

    3.1.4.              Borrowing
      Base.  The “Borrowing Base” on any date shall
      be:

     

    3.1.4.1.  85%
      of the total outstanding principal balance of all of Borrowers’ Eligible
      Accounts as of the close of business on such date, or as certified in the
      Borrowing Base Certificate most recently furnished to Administrative Agent
      as
      required in Section 13.14.1, whichever is less; minus

     

    3.1.4.2.  $1,500,000;
      minus

     

    3.1.4.3.  any
      other reserves or deductions from the “Borrowing Base” which Administrative
      Agent or the Required Lenders believe to be appropriate in their respective
      commercially reasonable discretion.

     

    3.1.5.              Eligible
      Accounts.  “Eligible Accounts” include all of Borrowers’
Accounts other than the following, unless approved in writing by Administrative
      Agent in each case:  (i) any Account with respect to which
      Administrative Agent does not have a valid and enforceable, perfected first
      priority Security Interest; (ii) any Account which remains unpaid as of
      90 days after the original date of the applicable invoice, provided,
      however, (1) if the Account Debtor is a Governmental Authority or an Account
      Debtor whose primary purpose is to provide educational services, then the
      foregoing number of days shall be 120; and (2) if the Account Debtor’s primary
      purpose is to provide health care services, then, at Administrative Agent’s sole
      discretion, the number of days shall be 120, (iii) any Account of a single
      Account Debtor if 50% or more of the balances due on all Accounts of such
      Account Debtor are ineligible under clause (i) or (ii); (iv) any Account
      with respect to which the Account Debtor is a Borrower, a Subsidiary or an
      Affiliate thereof or an employee or officer of Borrower or any Subsidiary or
      Affiliate thereof, provided, however, that the foregoing shall not be applicable
      to arm’s-length transactions with portfolio companies of the Borrowers’ Major
      Shareholders; (v)  any Account with respect to which the Account Debtor
      does not maintain its chief executive office within the United States or any
      Account with respect to which the Account Debtor is the government of any
      foreign country or any municipality or other political subdivision thereof,
      or
      any department, agency, public corporation or other instrumentality thereof;
      (vi) any Account which is created from the rental or lease of any Inventory
      not owned by Borrower; (vii) any Account with respect to goods or services
      whose delivery or performance has been rejected by the Account Debtor or whose
      earlier acceptance has been revoked; (viii) any Account arising from the
      delivery of goods for which an invoice has not been sent to the Account Debtor
      within 10 days after such delivery or any 

     

    
      
        
        

      

      
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    Account
      arising from the performance of services for which an invoice has not been
      sent
      to the Account Debtor within thirty (30) days after such performance;
      (ix) any Account owing by an Account Debtor that is the subject of a
      bankruptcy or similar insolvency proceeding, has made an assignment for the
      benefit of creditors, has acknowledged that it is unable to pay its debts as
      they mature, or whose assets have been transferred to a receiver or trustee,
      or
      who has ceased business as a going concern; (x)  any Account with respect
      to which the Account Debtor’s obligation to pay the Account is conditional upon
      the Account Debtor’s approval or is otherwise subject to any repurchase
      obligation or return right, as with sales made on a bill-and-hold, guarantied
      sale, sale-and-return, sale on approval (except with respect to Accounts in
      connection with which Account Debtors are entitled to return Inventory solely
      on
      the basis of the quality of such Inventory) or consignment basis, provided,
      however, that bill-and-hold Accounts shall be considered eligible (subject
      to
      all other eligibility criteria contained herein) for that portion of the related
      Accounts which have been performed, earned and invoiced and for which title
      to
      the Inventory has passed to the Account Debtor, and which the applicable Account
      Debtor is unconditionally obligated to pay without offset, defense or
      counterclaim under the terms of the specific customer agreements, subject to
      the
      Administrative Agent’s review and satisfaction with the underlying contract
      and/or purchase order associated therewith and as specifically agreed to in
      writing by the Administrative Agent, (xi) any Account owing by an Account
      Debtor that has disputed liability or made any claim with respect to any other
      Account due from such Account Debtor, or that has any right of set-off against
      such Account, or to which Borrower is indebted in any way, but only to the
      extent of such indebtedness, set-off, dispute or claim; (xii) any Account
      subject to a chargeback from a volume discount or an advertising discount,
      but
      only to the extent of such chargeback or discount; (xiii) [Intentionally
      Omitted]; (xiv) any Account of an Account Debtor with respect to particular
      goods still in the possession of the creditor on the Account or included in
      Inventory of such creditor and against which the Account Debtor has filed a
      financing statement under the UCC or has obtained or purported to have obtained
      a Security Interest; (xv) any Account with respect to which the delivery of
      goods or performance of services is bonded in favor of Borrower; (xvi) any
      Account as to which Administrative Agent does not have the right or ability
      to
      obtain direct payment to Administrative Agent; (xvii) any Account with
      respect to which any of the covenants and agreements contained in any of the
      Loan Documents or any of the Representations and Warranties are not or have
      ceased to be complete and correct or have been breached and not cured within
      any
      applicable grace period under this Agreement; (xviii) any Account which is
      evidenced by a promissory note or other instrument or by chattel paper or which
      has been reduced to judgment; (xix) any Account which arises out of a sale
      or lease not made in the ordinary course of Borrower’s business; (xx) any
      Account for which payment terms greater than net 45 days from the date of
      invoice are provided or permitted; (xxi) Accounts arising from payment made
      by credit card, debit card, or similar instrument; (xxii) any Account owing
      from any supplier or Vendor of any Borrower, including, without limitation
      under
      or in connection with any rebate, subsidy, incentive or similar program,
      (xxiii) any Account owing to any Person other than  Borrower,
      (xxiv) any Account arising from the leasing of Inventory, (xxv)  with
      regards to any Accounts arising from the provision of services, any such
      Accounts which are invoiced prior to the performance of the applicable services
      provided, however, that deferred revenue billings and progress billings shall
      be
      considered eligible (subject to all other eligibility criteria contained herein)
      for that portion of the related Accounts which have been performed, earned
      and
      invoiced and which the applicable Account Debtor is unconditionally obligated
      to
      pay without offset, defense or counterclaim under the terms of the specific
      customer agreements, subject to the Administrative Agent’s review and

     

    
      
        
        

      

      
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    satisfaction
      with the underlying contract and/or purchase order associated therewith and
      as
      specifically agreed to in writing by the Administrative Agent, (xxvi) any
      Account as to which the perfection of Administrative Agent’s Security Interest
      is governed by any federal, state or local statutory requirements other than
      those of the UCC or the Claims Act; (xxvii) subject to all other eligibility
      criteria, if Administrative Agent requests filings and acknowledgements in
      accordance with the Claims Act and any other steps necessary to perfect
      Administrative Agent’s Security Interest to be complied with to Administrative
      Agent’s satisfaction with respect to any Account with respect to which the
      Account Debtor is the United States of America or any state or any department,
      agency, public corporation or other instrumentality thereof, and such Borrower
      does not promptly upon such request begin the process to obtain such filings
      and
      acknowledgements or such filings and acknowledgments are not obtained within
      120
      days (or such longer period of time as Administrative Agent may consent to)
      of
      such request; (xxviii) any Account as to which Administrative Agent has
      determined in its reasonable discretion that the prospect of payment or
      collection on a timely basis is impaired or that Administrative Agent otherwise
      deems in its reasonable discretion to be uncreditworthy.

     

    3.2.         Floorplan
      Loan Facility.

     

    3.2.1.              Floorplan
      Loan Facility Generally.  Each Lender shall, subject to the
      terms and limitations in this Section 3.2, Section 3.6, and elsewhere herein,
      make available to Borrower such Lender’s pro-rata share (as listed on
      Exhibit 3 hereto) of an “Aggregate Floorplan Loan Facility” that is
      initially Fourteen Million Dollars ($14,000,000) but which will decrease from
      time to time as provided herein by funding such Lender’s pro-rata share thereof
      as provided for herein.  Each Lender’s Floorplan Loan Facility is its
      pro-rata share of the Aggregate Floorplan Loan Facility.  No Floorplan
      Loan Advance will be made which would result in either: (i) the sum of the
      Aggregate Floorplan Loan, the Interim Floorplan Loan, and all unfunded
      Approvals, exceeding the Aggregate Floorplan Loan Facility; or (ii) the Lenders’
Exposure exceeding the Total Aggregate Facility Limit.  Subject to the
      terms of this Agreement, payments and prepayments that are applied to reduce
      the
      Aggregate Floorplan Loan may be reborrowed through subsequent Floorplan Loan
      Advances or, subject to the terms and conditions herein, reborrowed through
      Interim Floorplan Advances, subject to the terms and conditions of this
      Agreement and the Loan Documents.  The Aggregate Floorplan Loan
      Facility is not a commitment to lend or advance funds but is a discretionary
      facility.  From and after the date on which the Administrative Agent
      has actual knowledge of an Event of Default under Section 16.1.1 or under
      Section 16.1.12 (whether or not any time periods referenced therein have
      expired), no further Approvals will be issued and except with respect to
      existing unfunded Approvals, no further Floorplan Loan Advances shall be
      made.  From and after the date on which Administrative Agent has
      actual knowledge of any other Event of Default, no further Approvals will be
      issued if the Administrative Agent so chooses in its discretion to no longer
      issue Approvals or if the Required Lenders direct the Administrative Agent
      to no
      longer issue Approvals, and except with respect to existing unfunded Approvals,
      no further Floorplan Loan Advances shall be made.

     

    3.2.2.              Interim
      Floorplan Loan Advances.  In order to reduce the frequency of
      fundings of Floorplan Loan Advances by Lenders, but subject to the limitations
      in Section 3.2.3 and elsewhere herein, Administrative Agent may in its
      absolute discretion make Interim Floorplan Loan Advances for the account of
      and
      benefit of Borrower with respect to an Approval issued by Administrative Agent
      from time to time from the Effective Date to the Floorplan Loan Maturity
      Date.  From and after the date on which 

     

    
      
        
        

      

      
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    the
      Administrative Agent has actual knowledge of an Event of Default under Section
      16.1.1 or under Section 16.1.12 (whether or not any time periods referenced
      therein have expired), no further Interim Floorplan Loan Advances shall be
      made.  From and after the date on which  Administrative Agent has
      actual knowledge of any other Event of Default, at the sole discretion of
      Administrative Agent, no further Interim Floorplan Loan Advances shall be
      made.  Subject to the limitations in Section 3.2.3 and elsewhere
      herein, payments and prepayments that are applied to reduce the Interim
      Floorplan Loan may be reborrowed through Interim Floorplan Loan Advances or,
      subject to the terms and conditions of this Agreement, reborrowed through
      Floorplan Loan Advances.  The Interim Floorplan Loan Facility is not a
      commitment to lend or advance funds, but is a discretionary
      facility.

     

    3.2.3.              Limitations
      on Interim Floorplan Loan Advances.  The maximum amount of
      the Interim Floorplan Loan amount on any date shall be Ten Million Dollars
      ($10,000,000). Administrative Agent shall not be obligated to make any
      particular Interim Floorplan Loan Advance, the making of any particular Interim
      Floorplan Loan Advance at any particular time being absolutely
      discretionary.  Administrative Agent will not, without the prior
      consent (which may be oral or in writing) of each Lender, knowingly make any
      Interim Floorplan Loan Advance which would cause the aggregate amount of the
      Interim Floorplan Loan plus the Aggregate Floorplan Loan plus all unfunded
      Approvals to exceed the Aggregate Floorplan Loan Facility as of such date
      immediately prior to the making of any such Interim Floorplan Loan Advance
      or
      make any Interim Floorplan Loan Advance which would cause the Lenders’ Exposure
      to exceed the Total Aggregate Facility Limit.  Administrative Agent
      shall not be obligated to fund any Interim Floorplan Loan Advances after the
      Floorplan Loan Maturity Date or after the Interim Floorplan Loan Facility has
      been terminated.

     

    3.2.4.              Operation
      of Floorplan Loan Facility and Interim Floorplan Loan
      Facility.  Subject to the terms of this Agreement, the
      Floorplan Loan Facility and Interim Floorplan  Loan Facility will be
      used by Borrower from time to time to purchase Inventory from vendors approved
      by Administrative Agent in its sole and absolute discretion
      (“Vendors”).

     

    3.2.5.              Floorplan
      Loan Approvals.  Borrower and each Lender acknowledges and
      agrees that:  (i) Administrative Agent may issue Approvals on a
      date that is prior to the date of the funding of any Floorplan Loan Advance
      or
      Interim Floorplan Loan Advance that are based on such Approvals; (ii) once
      an Approval has been issued, then Administrative Agent may, and may require
      the
      Lenders, to fund the related Advance at any time, notwithstanding (A) any
      Default or Event of Default that may arise on or prior to the date of any such
      Advance, (B) whether the Loan Obligations have been accelerated,
      (C) whether the Commitments have been terminated, or (D) whether any
      such Advance shall occur after the Floorplan Loan Maturity Date for an Approval
      issued on or prior to the Floorplan Loan Maturity Date; and (iii) each
      Lender shall be obligated to fund its pro-rata share of any such Advance once
      an
      Approval has been issued for such Advance regardless of whether such Advance
      has
      been funded by Administrative Agent.  A request from a Vendor (with
      respect to a Borrower) to Administrative Agent to fund Floorplan Inventory
      will
      be deemed to be a request from the Borrowers for a Floorplan Loan Advance or
      an
      Interim Floorplan Loan Advance, as the case may be.

     

    3.2.6.              Inventory
      not Available for Floorplan Loans and Interim Floorplan
      Loans.  Only Vendors approved by Administrative Agent will be
      eligible to receive 

     

    
      
        
        

      

      
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    proceeds
      of Aggregate Floorplan Loan Facility and the Interim Floorplan Loan
      Facility.  Administrative Agent or the Required Lenders may, at any
      time and without notice to Borrower, elect not to finance any Inventory sold
      by
      particular Vendors, including any Vendors who are in default of their
      obligations to CDF, or with respect to which CDF or Administrative Agent deems
      itself insecure, or any Inventory or Proceeds thereof in which another Person
      has a Security Interest.  Except with respect to Approvals issued by
      Administrative Agent on or before the Floorplan Loan Maturity Date or before
      termination as set forth in Section 3.2.7 which such Approvals may be
      funded in Administrative Agent’s sole discretion and, in such case, each Lender
      shall be obligated to fund its pro rata share of any Advance with respect to
      such Approvals, Lenders shall not be obligated to fund any Floorplan Loan
      Advances after the Floorplan Loan Maturity Date or after the Aggregate Floorplan
      Loan Facility has been terminated.

     

    3.2.7.              Termination
      of Floorplan Loan Facility and Interim Floorplan Loan
      Facility.  The Aggregate Floorplan Loan Facility and the
      Interim Floorplan Loan Facility are discretionary facilities and may be
      terminated by Administrative Agent or the Required Lenders with respect to
      any
      future Floorplan Loans or Interim Floorplan Loans which have not been funded
      (whether or not an Approval has been issued, but subject to any Vendor
      Agreements regarding unfunded Approvals) at any time by the Administrative
      Agent
      or the Required Lenders upon written notice to the Borrower in accordance with
      this Section 3.2.7.  In addition to any other rights and remedies that
      the Lenders and the Administrative Agent may have in this Agreement, including,
      without limitation, if there is an Existing Default and all rights and remedies
      set forth in Section 16.3 and in this Section, the Administrative Agent may,
      or
      the Required Lenders by direction to the Administrative Agent may, at any time,
      whether or not there is an Existing Default, elect to terminate the Aggregate
      Floorplan Loan Facility and/or the Interim Floorplan Loan Facility, and Borrower
      agrees that if there is no Existing Default, 60 days prior notice of
      termination is reasonable and sufficient (although this provision shall not
      be
      construed to mean that shorter periods may not, in particular circumstances,
      also be reasonable and sufficient) and Lenders will continue to fund Advances
      for Approvals issued on or before the expiration of such 60 day period and
      repayment shall be in cash in accordance with the applicable Transaction
      Statement and billing statement.  Any such notice by the Required
      Lenders shall be given in writing to Administrative Agent who shall then
      promptly send such notice to Borrower, or if given by Administrative Agent,
      Administrative Agent shall promptly notify the Lenders after notifying
      Borrower.  A termination of the Aggregate Floorplan Loan Facility
      shall automatically terminate the Interim Floorplan Facility on the date of
      any
      notice of such termination of the Aggregate Floorplan
      Facility.  Borrower will not be relieved from any obligation to
      Administrative Agent or the Lenders arising out of Floorplan Loans or Interim
      Floorplan Loans made before the effective termination date of the Aggregate
      Floorplan Loan Facility and/or the Interim Floorplan Loan Facility or made
      after
      the effective termination date of the Aggregate Floorplan Loan Facility or
      Interim Floorplan Loan Facility in connection with Approvals issued on or before
      such effective termination date.  Notwithstanding a termination of the
      Aggregate Floorplan Loan Facility and the Interim Floorplan Loan Facility,
      Administrative Agent and Lenders will retain all of their rights, interests
      and
      remedies hereunder and in all Collateral until Borrower has indefeasibly paid
      all of the Loan Obligations in full in cash , all Letters of Credit have expired
      and the Letter of Credit Exposure is irrevocably reduced to zero, and the
      Administrative Agent and the Lenders have no other commitment to extend credit
      or make advances to or for the account of Borrower.

     

    
      
        
        

      

      
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    3.2.8.              Repurchase
      Agreements.  Administrative Agent and/or CDF have entered
      into agreements with the Vendors who will be receiving proceeds of the Aggregate
      Floorplan Loan Facility and the Interim Floorplan Loan Facility (each being
      a
“Vendor Agreement” and collectively, the “Vendor
      Agreements”).  Neither Administrative Agent nor CDF makes any
      representation or warranty regarding the Vendor Agreements, including, without
      limitation regarding the enforceability thereof, whether any particular item
      of
      Inventory purchased by Borrower is subject to repurchase rights, or any
      repurchase rights that may be set forth therein.  Each Lender and
      Borrower acknowledges and agrees that Administrative Agent and/or CDF may take
      or refrain from taking any actions under or in connection with the Vendor
      Agreements in Administrative Agent’s or CDF, as the case may be, commercially
      reasonable judgment.

     

    3.3.         Swingline
      Commitment.

     

    3.3.1.              Swingline
      Advances.  In order to reduce the frequency of fundings of
      Revolving Loan Advances by Lenders, but subject to the limitations in
      Section 3.3.2 and elsewhere herein, Administrative Agent may (provided an
      Advance Request in the form of Exhibit 7.10 is received by Administrative
      Agent) in its absolute discretion make Swingline Advances to Borrower from
      time
      to time from the Effective Date to the Revolving Loan Maturity
      Date.  From and after the date on which the Administrative Agent has
      actual knowledge of an Event of Default under Section 16.1.1, no further
      Swingline Advances shall be made unless the Required Lenders approve in writing
      any further Swingline Advances or unless such Event of Default is waived in
      writing by the Required Lenders.  Subject to the limitations in
      Section 3.3.2 and elsewhere herein, payments and prepayments that are
      applied to reduce the Swingline Loan may be reborrowed through Swingline
      Advances or, subject to the terms and conditions herein, reborrowed through
      Revolving Loan Advances.  The Swingline Commitment is not a commitment
      to lend money, but is a discretionary facility; Administrative Agent may
      terminate the foregoing Swingline Commitment at any time in its absolute
      discretion.

     

    3.3.2.              Limitations
      on Swingline Advances.  Administrative Agent shall not be
      obligated to make any particular Swingline Advance, the making of any particular
      Swingline Advance at any particular time being absolutely
      discretionary.  In any event, no Swingline Advance will be made on or
      after the Revolving Loan Maturity Date, and no Swingline Advance will be made
      which would result in either: (i) the Swingline Loan exceeding the Maximum
      Swingline Amount; or (ii) the Lenders’ Exposure exceeding the Total Aggregate
      Facility Limit.  Administrative Agent may, however, in its absolute
      discretion make such Swingline Advances, but shall not be deemed by doing so
      to
      have increased the Maximum Swingline Amount and shall not be obligated to make
      any such Swingline Advance thereafter.  Administrative Agent will not,
      without the prior consent (which may be oral or in writing) of each Lender,
      knowingly make any Swingline Advance which would cause the aggregate amount
      of
      the Aggregate Revolving Loan to exceed the Maximum Available Amount as of such
      date immediately prior to the making of any such Swingline
      Advance.  The Maximum Swingline Amount on any date for any Swingline
      Advance shall be a Dollar amount equal to the lesser of (i) Ten Million
      Dollars ($10,000,000) or (ii) an amount equal to the Maximum Available
      Amount as of such date minus the Aggregate Revolving Loan immediately prior
      to
      the making of such Swingline Advance; provided, however, at no time shall any
      Advance be deemed to be a Swingline Advance, and such Advance shall be deemed
      to
      be a Revolving Advance, if the sum of the Swingline Loan and the amount of
      the
      Revolving Loans made by the Lender which is 

     

    
      
        
        

      

      
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    the
      Administrative Agent exceeds such Lender’s Revolving Loan Commitment as set
      forth on Exhibit 3 hereto.

     

    3.3.3.              Swingline
      Note.  The obligation of Borrower to repay the Swingline
      Loans shall, at the request of the Administrative Agent, be evidenced by a
      Swingline Note payable to the order of Administrative Agent in a maximum
      principal amount equal to the amount of the Swingline Commitment, in a form
      acceptable to Administrative Agent.  In such event, the Borrower shall
      execute and deliver to Administrative Agent a Swingline Note payable to the
      order of Administrative Agent, with appropriate insertions, in a face principal
      amount equal to the Administrative Agent’s Swingline
      Commitment.  Thereafter, the Loans evidenced by such Swingline Note
      and interest thereon shall at all times (prior to any assignment pursuant to
      Section 18.4) be represented by such Swingline Note payable to the order of
      the
      payee named therein, except to the extent that Administrative Agent subsequently
      returns any such Swingline Note for cancellation and requests that such
      Swingline Loans once again be evidenced as described as set forth
      herein.  The failure of Administrative Agent to request a Swingline
      Note, or the failure of the Swingline Loans to be evidenced by a promissory
      note
      shall not affect the enforceability of the obligation of the Borrowers to repay
      Administrative Agent’s Swingline Loans.

     

    3.4.         Letter
      of Credit Facility.

     

    3.4.1.  As
      may be requested from time to time by Borrower hereunder and subject to the
      terms and conditions of this Agreement, the Letter of Credit Issuer will issue
      or cause to be issued by any Person acceptable to Administrative Agent standby
      letters of credit and commercial (documentary) letters of credit for the account
      of Borrower from time to time from the Effective Date to the date notice of
      termination of the Aggregate Revolving Loan Commitment is effective or
      termination of the Letter of Credit Facility is effective, but only if the
      Letter of Credit Exposure will not as a result of such issuance exceed the
      lesser of (i) Two Million Dollars ($2,000,000) or (ii) an amount equal to the
      difference between (a) the lesser of the Aggregate Revolving Loan Commitment
      and
      the Borrowing Base, and (b) the sum of (I) the Aggregate Revolving Loan, (II)
      the Swingline Loan, and (III) the Floorplan Shortfall.  If the Letter
      of Credit Issuer does not itself issue Letters of Credit, then it shall, subject
      to the terms and conditions of this Agreement, arrange for the issuance of
      Letters of Credit and for all purposes of this Agreement and the Loan Documents,
      be deemed to have issued the Letters of Credit, and shall be entitled to all
      fees payable to the Letter of Credit Issuer hereunder, and reimbursements
      relating thereto.

     

    3.4.2.  Immediately
      upon the issuance of a Letter of Credit in accordance with the terms and
      conditions hereof, Letter of Credit Issuer shall be deemed to have sold and
      transferred to each other Lender, and each such other Lender shall be deemed
      to
      have purchased and received from Letter of Credit Issuer, a pro rata undivided
      interest and participation in such Letter of Credit, the reimbursement
      obligation of Borrower with respect thereto, and any guaranty thereof or
      collateral therefor.  Each Lender’s (including the Letter of Credit
      Issuer’s) pro-rata undivided interest shall be the same as its pro-rata share of
      the Aggregate Revolving Loan Commitment.

     

    3.4.3.  Subject
      to the terms and conditions below, the expiration date of any Letter of Credit
      will not be later than the earlier of (i) the first anniversary of the date
      of
      issuance, and (ii) a Business Day that is not later than the date which is
      10
      days prior to the earliest to occur of the date of termination of the Aggregate
      Revolving Loan Commitment or the 

     

    
      
        
        

      

      
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    date
      of
      termination of the Letter of Credit Facility (if any such notice of termination
      has been previously given); provided, however, that the expiration date for
      a
      Letter of Credit may be later than such date if Letter of Credit Issuer and
      Administrative Agent (if Administrative Agent and the Letter of Credit Issuer
      are not the same Person) consent to such issuance and Borrower provides to
      the
      Administrative Agent at any time at Administrative Agent’s request cash
      collateral satisfactory to Letter of Credit Issuer and Administrative Agent
      (if
      Administrative Agent and the Letter of Credit Issuer are not the same Person)
      as
      security for Borrower’s obligation to reimburse the Letter of Credit Issuer, the
      Administrative Agent and the Lenders for 105% of all draws and expenses
      thereunder (“Cash Collateral”).  The Cash Collateral is a part of the
      Collateral and Borrower hereby unconditionally grants a Security Interest to
      Administrative Agent in the Cash Collateral.  Borrower also agrees
      that if a Letter of Credit has been issued and the Aggregate Revolving Loan
      Commitment is subsequently terminated or the Letter of Credit Facility is
      subsequently terminated so that the expiry of such Letter of Credit(s) is beyond
      the effective date of the termination of the Aggregate Revolving Loan Commitment
      or beyond the effective date of termination of the Letter of Credit Facility,
      whichever is earliest, then at Agent’s request, Borrower shall, on or before
      five Business Days prior to the effective date of such termination, whichever
      is
      earlier, provide Administrative Agent with Cash Collateral.  At any
      time, Administrative Agent and the Lenders shall be entitled to make one or
      more
      Revolving Loans and/or institute reserves to provide Cash Collateral if Borrower
      does not timely provide Cash Collateral and all such Revolving Loans shall
      be a
      part of the Loan Obligations secured by the
      Collateral.  Administrative Agent shall hold Cash Collateral for the
      benefit of the Letter of Credit Issuer, the Lenders and Administrative Agent
      as
      security for the Letters of Credit and the other Loan Obligations in an account
      in its respective name at the Letter of Credit Issuer or such other financial
      institution as Administrative Agent may select in its reasonable
      discretion.

     

    3.5.         Termination.

     

    3.5.1.  At
      any time an Event of Default has occurred and is continuing, Administrative
      Agent or the Required Lenders may, without notice or demand to Borrowers or
      any
      other Covered Person, terminate some or all of the Commitments, accelerate
      the
      Loan Obligations or take such other actions as they may have hereunder
      (including Section 16.3), the other Loan Documents or at law or at
      equity.

     

    3.5.2.  Borrower
      may at any time terminate all of the Commitments by giving written notice to
      Administrative Agent (which shall then promptly send a copy of such notice
      to
      each Lender) if and only if Borrower repays in full and in cash all of the
      Loan
      Obligations within 60 days of Administrative Agent’s receipt of such notice,
      including cash collateral for all Letters of Credit, Floorplan Loan Advances
      and
      Interim Floorplan Loan Advances that may be made with respect to any Approval
      issued during such 60 day period, and such termination shall be effective on
      or
      before the end of such 60 day period.  Notwithstanding a termination,
      Administrative Agent and Lenders will retain all of their rights, interests
      and
      remedies hereunder and in all Collateral until Borrower has indefeasibly paid
      all of the Loan Obligations in full in cash, all Letters of Credit have expired
      and the Letter of Credit Exposure is irreversibly zero, and the Administrative
      Agent and the Lenders have no other commitment to extend credit or make advances
      to or for the account of Borrower.

     

    
      
        
        

      

      
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    3.6.          Total
      Aggregate Facility Limit.  Notwithstanding the Commitments
      herein or anything else contained in this Agreement or any of the other Loan
      Documents to the contrary, except in connection with the Administrative Agent’s
      ability in its sole discretion to make Loans or incur fees, costs and expenses
      to protect the Collateral or preserve its first priority perfected Security
      Interest in the Collateral, Borrower, Administrative Agent and each Lender
      acknowledge and agree that at no time shall the Aggregate Revolving Loan, the
      Swingline Loan, the Aggregate Floorplan Loan, the Interim Floorplan Loan, the
      Letter of Credit Exposure and all unfunded Approvals, exceed Thirty Four Million
      Dollars ($34,000,000) in the aggregate (the “Total Aggregate Facility
      Limit”).

     

    4.           Interest;
      Yield Protection.

     

    4.1.         Interest
      on the Swingline Loan.  At all times, the Swingline Loan
      shall bear interest at the same rate of interest as the Aggregate Revolving
      Loan
      is then bearing interest.

     

    4.2.         Interest
      on Draws on Letters of Credit.  The unreimbursed amount of
      each draw on a Letter of Credit shall bear interest at the rate per annum equal
      to the Adjusted LIBOR Rate.

     

    4.3.         Interest
      on the Floorplan Loan and Interim Floorplan Loan --Administrative Agent and
      CDF
      as a Lender Only.

     

    4.3.1.  The
      term “Prime Rate” with respect to any Transaction Statement, to the extent such
      term is defined in any such Transaction Statement, shall have the meaning set
      forth in any such Transaction Statement.  If “Prime Rate” is not
      defined in any Transaction Statement, the term “Prime Rate” in such Transaction
      Statement shall mean, for any calendar month, the highest “prime rate” published
      in the “Money Rates” column of the Wall Street Journal on the first
      Business Day of such month.  After Maturity or upon the occurrence and
      during the continuance of an Event of Default, and if the Required Lenders
      so
      determine in their absolute discretion, Indebtedness under each Transaction
      Statement shall bear interest at the default or post-maturity rate described
      therein.  In the event no default or post-maturity rate is specified
      in any Transaction Statement, then after Maturity or upon the occurrence and
      during the continuance of an Event of Default, and if the Required Lenders
      so
      determine in their absolute discretion, the Indebtedness under such Transaction
      Statement shall bear interest at the rate which would otherwise apply under
      such
      Transaction Statement plus 2.0%.

     

    4.3.2.  Borrower,
      Administrative Agent and each Lender agrees that certain financial terms of
      any
      Floorplan Loan Advance or Interim Floorplan Loan Advance made under this
      Agreement, whether regarding finance charges, other fees, maturities,
      curtailments or other financial terms, are not set forth herein because such
      terms depend, in part, upon the availability of Vendor discounts, payment terms
      or other incentives, prevailing economic conditions, Administrative Agent’s
      and/or CDF’s floorplanning volume with Borrower and with Borrower’s Vendors, and
      other economic factors which may vary over time.  Borrower,
      Administrative Agent and each Lender further agree that it is therefore in
      their
      mutual best interest to set forth in this Agreement only the general terms
      of
      the Floorplan Loan Facility and the Interim Floorplan Loan
      Facility.  Upon agreeing to finance a particular item of Inventory for
      Borrower, Administrative Agent will send Borrower a transaction statement
      identifying such Inventory and the applicable financial terms (each being a
      “Transaction Statement”).  Administrative Agent may, without the
      consent of the Lenders or the Required Lenders, change any aspect or portion
      of
      any Transaction Statement.  Unless Borrower notifies Administrative
      Agent in writing of any objection within thirty (30) days after the earlier
      to
      occur of the date a Transaction Statement is 

     

    
      
        
        

      

      
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    made
      available to Borrower or the date a Transaction Statement is sent to
      Borrower:  (a) the amount shown on such Transaction Statement
      will be an account stated; (b) Borrower will have agreed to all rates,
      charges and other terms shown on such Transaction Statement; (c) Borrower
      will have agreed that Administrative Agent is financing the items of Inventory
      referenced in such Transaction Statement at Borrower’s request; and
      (d) such Transaction Statement will be incorporated herein by reference,
      will be made a part hereof as if originally set forth herein, and will
      constitute an addendum hereto.  If Borrower objects to the terms of
      any Transaction Statement, Borrower agrees to pay Administrative Agent for
      such
      Inventory in accordance with the most recent terms for similar Inventory to
      which Borrower has not objected (or, if there are no prior terms, at the lesser
      of 16% per annum or at the maximum lawful contract rate of interest permitted
      under applicable law).

     

    4.3.3.  Borrower
      will pay the interest, fees, and finance charges to Administrative Agent (on
      the
      Interim Floorplan Loan) for its own account and to CDF (on the Aggregate
      Floorplan Loan) for its own account on the outstanding principal amount of
      the
      Interim Floorplan Loans and the Aggregate Floorplan Loans, respectively, at
      the
      rate(s) and in the amount(s) shown on the applicable Transaction Statement,
      unless Borrower objects thereto as provided in
      Section 4.3.2.  All such amounts (whether interest, fees or late
      charges, but excluding principal) due and owing as set forth in each Transaction
      Statements shall be retained by Administrative Agent for its own account (on
      the
      Interim Floorplan Loans) and by CDF for its own account (on the Aggregate
      Floorplan Loans).  Interest on the Aggregate Floorplan Loans will be
      paid by Administrative Agent to the Lenders (other than CDF) from the proceeds
      Administrative Agent receives from the Borrower and the Vendors, as provided
      in,
      and subject to the terms of, Section 4.5.  All discounts and subsidies
      as agreed to between a Vendor and CDF or Administrative Agent from a Vendor
      shall be for the sole account of Administrative Agent and
      CDF.  Principal received by the Administrative Agent from the Borrower
      on the Aggregate Floorplan Loans will be paid to the Lenders as set forth in
      Section 17.10.  The finance charges attributable to the rate shown on
      each Transaction Statement will:  (a) be computed based on a 360 day
      year; (b) be calculated by multiplying the Daily Charge (as defined below)
      by
      the actual number of days in the applicable billing period; and (c) accrue
      at
      the applicable interest rate set forth in the applicable Transaction Statement
      (which such rate may be zero percent for a period of time) from the invoice
      date
      of the Collateral identified on such Transaction Statement until Administrative
      Agent receives full payment as provided in this Agreement for each item of
      such
      Collateral.  The “Daily Charge” is the product of the Daily Rate (as
      defined below) multiplied by the Average Daily Balance (as defined
      below).  The “Daily Rate” is the quotient of the annual rate shown on
      each Transaction Statement divided by 360, or the monthly rate shown on each
      Transaction Statement divided by 30.  The “Average Daily Balance” is
      the quotient of (i) the sum of the outstanding principal under the Aggregate
      Floor Plan Facility plus the Interim Floorplan Loan Facility on each day of
      a
      billing period for each item of Collateral identified on a Transaction
      Statement, divided by (ii) the actual number of days in such billing
      period.  With respect to the Interim Floorplan Loans and the Floorplan
      Loans, the annual percentage rate of the finance charges relating to any item
      of
      Collateral financed thereby will be calculated from the invoice date of such
      Collateral (which rate may be zero percent for a period of time), regardless
      of
      any period during which any finance charge subsidy shall be paid or payable
      by
      any third party.

     

    4.3.4.  Administrative
      Agent will send Borrower a monthly billing statement identifying all charges,
      including any late fees assessed, due to Administrative Agent on 

     

    
      
        
        

      

      
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    the
      Interim Floorplan Loans and to CDF, as a Lender, on the Floorplan Loan
      Facility.  The charges specified on each billing statement will be due
      and payable in full within ten (10) Business Days of receipt.

     

    4.4.         Interest
      on Aggregate Loans--Other than Floorplan Loans.  Each LIBOR
      Advance when made will become a LIBOR Loan, which shall bear interest at the
      Adjusted LIBOR Rate.

     

    4.5.         Interest
      on Floorplan Loans; Administrative Agent Deficiency
      Amount.  Administrative Agent, Borrower and each Lender
      acknowledges and agrees that the rate of return paid on any Floorplan Loan
      or
      Interim Floorplan Loan is dependent on numerous factors, including discounts
      and
      subsidies offered by the Vendors.  Accordingly, Administrative Agent,
      Borrower and each Lender agrees that due to the difficulty in determining the
      actual rate of return on any particular Floorplan Loan or Interim Floorplan
      Loan
      or with respect to any particular invoice underlying any such Loan the Lenders
      (other than CDF) will be paid the interest rate specified in this
      Agreement.  With respect to each Lender (other than CDF), interest on
      each Floorplan Loan Advance for such Lender shall be paid to such Lender by
      Administrative Agent based on the interest rates set forth in Sections 
4.6, and 4.7 and as provided in Section 6.1.1 from the date of funding by
      such Lender to Administrative Agent of its pro rata share of such Floorplan
      Loan
      Advance to the date of repayment; provided, however if a Floorplan Payment
      Default occurs, then until such Floorplan Payment Default has been cured to
      the
      reasonable satisfaction of the Required Lenders or waived in writing by the
      Required Lenders, to the extent there exists an Administrative Agent Deficiency
      Amount (defined below) which is greater than zero, Administrative Agent may
      suspend the making of payments of principal and interest on the Floorplan Loans
      to each Lender (other than CDF) or reduce the amount of such payments on the
      Floorplan Loans to each Lender (other than CDF) on a pro-rata basis (based
      on
      the principal amount of Floorplan Loans outstanding) and setoff such amounts
      against the Administrative Agent Deficiency Amount until the Administrative
      Agent Deficiency Amount is reduced to zero, or to the extent necessary to
      prevent the Administrative Agent Deficiency Amount from becoming greater than
      zero. The “Administrative Agent Deficiency Amount” at any time is a Dollar
      amount equal to (i) the cumulative amount of interest distributed by
      Administrative Agent to the Lenders (other than CDF) solely with respect to
      each
      specific Transaction Statement for which a Floorplan Payment Default exists
      as
      outlined above in this Section 4.5 under the portion of the Aggregate
      Floorplan Loan attributable to Lenders (other than CDF) for the period
      commencing with the date interest begins accruing under the Transaction
      Statement (excluding any interest distributed which is attributable to the
      period of time during any free floor plan period) and to the extent such
      interest has not been paid by Borrower under each such specific Transaction
      Statement relating to such Floorplan Payment Default through the date of
      calculation (provided, however, that in no event shall any interest paid to
      the
      Lenders (other than CDF) relating to any specific Transaction Statement during
      any period for which no Floorplan Payment Default exists or existed be included
      in the calculation under this clause (i)), minus (ii) the cumulative amount
      of
      interest collected from Borrower by Administrative Agent solely with respect
      to
      each specific Transaction Statement for which a Floorplan Payment Default exists
      as outlined above in this Section 4.5 under the portion of the Aggregate
      Floorplan Loan attributable to Lenders (other than CDF) for the period
      commencing with the date interest begins accruing under the Transaction
      Statement (excluding any interest distributed which is attributable to the
      period of time during any free floor plan period).  For purposes of
      determining the interest payable by Administrative Agent to each Lender (other
      than CDF) on each such Lender’s respective Floorplan Loans, each Floorplan Loan
      Advance or any part of a Floorplan Loan Advance owing to a Lender (other than
      CDF) shall be considered a LIBOR Advance for interest rate calculation purposes
      under this Section.

     

    
      
        
        

      

      
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    4.6.         Adjusted
      LIBOR Rate.  The “Adjusted LIBOR Rate” for any LIBOR Loan is
      the LIBOR Rate plus the LIBOR Increment.  The LIBOR Rate for each
      LIBOR Loan shall be determined by Administrative Agent in accordance with the
      terms herein.  For each LIBOR Loan, the Adjusted LIBOR Rate shall
      fluctuate as provided for herein.  The “LIBOR Rate” shall be, for each
      calendar week commencing on Tuesday of such week, the rate per annum, as
      determined by Administrative Agent, as reported by The Wall Street
      Journal and identified as the “London Interbank Offered Rate” for an
      interest period of 30 days, on (a) each Monday immediately preceding, or (b)
      if
      any such Monday is not a Business Day, then on the Business Day immediately
      preceding such Monday.  If for any reason such rate is not available,
      the term “LIBOR Rate” shall mean, for any LIBOR Loan, the rate per annum
      appearing on Reuters Screen LIBOR01 Page as the London interbank offered rate
      for deposits in Dollars at approximately 11:00 a.m. (London time) for an
      interest period of 30 days, on (a) each Monday immediately preceding, or (b)
      if
      any such Monday is not a Business Day, then on the Business Day immediately
      preceding such Monday; provided, however, if more than one rate is specified
      on
      Reuters Screen LIBOR01 Page, the applicable rate shall be the arithmetic mean
      of
      all such rates (rounded upwards, if necessary, to the nearest 1/1000 of
      1%).

     

    4.7.         LIBOR
      Increments.  The LIBOR Increment shall be 3.00%. For all the
      Revolving Loans, the LIBOR Increment is used for determining that interest
      rate
      paid by Borrower to Administrative Agent to be distributed to the
      Lenders.  For the Floorplan Loan and Interim Floorplan Loan, the LIBOR
      Increment is used only for determining that interest rate paid by Administrative
      Agent to the Lenders (other than CDF) pursuant to Section 4.5, provided,
      however, the rate paid to the Lenders (other than CDF) on the Floorplan Loans
      shall be the Adjusted LIBOR Rate, unless the LIBOR Rate is not available as
      provided in this Agreement.  The interest rate paid by Borrower on the
      Floorplan Loan and Interim Floorplan Loan is the interest rate described in
      each
      Transaction Statement, as provided in Section 4.3.

     

    4.8.         Time
      of Accrual.  Interest shall accrue on all principal amounts
      outstanding from the date when first outstanding to the date when no longer
      outstanding.  Amounts shall be deemed outstanding until payments are
      applied thereto as provided herein.

     

    4.9.         Computation.  Interest
      shall be computed for the actual days elapsed over a year deemed to consist
      of
      360 days for all LIBOR Loans.  The LIBOR Rate will be determined
      by Administrative Agent before the initial Advance on the Effective Date and
      with respect to LIBOR Rate Loans, each week.  Interest rates that are
      based on the LIBOR Rate shall change simultaneously with any change as
      determined in the preceding sentence in the LIBOR Rate, and shall be effective
      for the entire day on which such change becomes effective.

     

    4.10.       Rate
      After Maturity and Rate After An Event of Default.  Subject
      to Section 4.3.1, Borrower shall pay interest on the Loan Obligations (excluding
      the Interim Floorplan Loans and Aggregate Floorplan Loans), including, without
      limitation, the Aggregate Revolving Loans and the
      Swingline Loans after their Maturity, and if the Required Lenders so determine
      in their absolute discretion, on the Loan Obligations (excluding the Interim
      Floorplan Loans and Aggregate Floorplan Loans), including, without limitation,
      the Aggregate Revolving Loans and the Swingline Loans,
      after the occurrence and during the continuance of an Event of Default, at
      a
      rate per annum of 1.0% plus the LIBOR Increment on each Aggregate Revolving
      Loan
      and each Swingline Loan (the “Default Rate”); provided, however, Administrative
      Agent shall have no obligation to pay a Default Rate to any Lender unless such
      Default Rate is paid by Borrower to Administrative Agent.  The default
      rate on the Interim Floorplan Loans and the Aggregate Floorplan Loans is
      described in Section 4.3.1.

     

    
      
        
        

      

      
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    4.11.     
      Taxes.

     

    4.11.1.  Any
      and all payments by the Borrower to or for the account of any Lender or the
      Administrative Agent hereunder or under any other Loan Document shall be made
      free and clear of and without deduction for any and all present or future Taxes,
      excluding, in the case of each Lender and the Administrative Agent, Taxes
      imposed on its income, and franchise Taxes imposed on it, by the jurisdiction
      (or any political subdivision thereof) under the laws of which such Lender
      (or
      its Applicable Lending Office) or the Administrative Agent (as the case may
      be)
      is organized or any political subdivision thereof.  If the Borrower
      shall be required by Law to deduct any Taxes from or in respect of any sum
      payable under this Agreement or any other Loan Document to any Lender or the
      Administrative Agent, (i) the sum payable shall be increased as necessary
      so that after making all required deductions (including deductions applicable
      to
      additional sums payable under this Section) such Lender or the Administrative
      Agent receives an amount equal to the sum it would have received had no such
      deductions been made, (ii) the Borrower shall make such deductions,
      (iii) the Borrower shall pay the full amount deducted to the relevant
      taxation authority or other authority in accordance with applicable Law, and
      (iv) the Borrower shall furnish to the Administrative Agent, at its address
      referred to herein, the original or a certified copy of a receipt evidencing
      payment thereof.

     

    4.11.2.  In
      addition, the Borrower agrees to pay any and all present or future stamp or
      documentary taxes and any other excise or property taxes or charges or similar
      levies which arise from any payment made under this Agreement or any other
      Loan
      Document or from the execution or delivery of, or otherwise with respect to,
      this Agreement or any other Loan Document (hereinafter referred to as
“Impositions”), except income and franchise Taxes imposed by any jurisdiction
      referred to in Section 4.11.1.

     

    4.11.3.  The
      Borrower agrees to indemnify each Lender and the Administrative Agent for the
      full amount of Taxes and Impositions (including, without limitation, any Taxes
      or Impositions imposed or asserted by any jurisdiction on amounts payable under
      this Section) that are required to be paid by the Borrower hereunder but are
      paid by such Lender or the Administrative Agent (as the case may be) and any
      liability (including penalties, interest and expenses) arising therefrom or
      with
      respect thereto; provided, however, that neither Administrative Agent nor any
      Lender shall have any obligation to pay any such Taxes, Impositions or other
      liability.

     

    4.11.4.  Each
      Lender organized under the laws of a jurisdiction outside the United States,
      on
      or prior to the date of its execution and delivery of this Agreement in the
      case
      of each Lender listed on the signature pages hereof and on or prior to the
      date
      on which it becomes a Lender in the case of each other Lender, and from time
      to
      time thereafter if requested in writing by the Borrower or the Administrative
      Agent (but only so long as such Lender remains lawfully able to do so), shall
      provide the Borrower and the Administrative Agent with (i) IRS
      Form 1001 or 4224, as appropriate, or any successor form prescribed by the
      IRS, certifying that such Lender is entitled to benefits under an income tax
      treaty to which the United States is a party which reduces the rate of
      withholding Tax on payments of interest or certifying that the income receivable
      pursuant to this Agreement is effectively connected with the conduct of a trade
      or business in the United States, (ii)  IRS Form W-8 or W-9, as
      appropriate, or any successor form prescribed by the IRS, and (iii) any
      other form or certificate required by any Governmental Authority (including
      any
      certificate required by Sections 871(h) and 

     

    
      
        
        

      

      
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    881(c)
      of
      the Code), certifying that such Lender is entitled to an exemption from or
      a
      reduced rate of Tax on payments pursuant to this Agreement or any of the other
      Loan Documents.

     

    4.11.5.  For
      any period with respect to which a Lender has failed to provide the Borrower
      and
      the Administrative Agent with the appropriate form pursuant to
      Section 4.11.4 (unless such failure is due to a change in treaty, law, or
      regulation occurring subsequent to the date on which a form originally was
      required to be provided), such Lender shall not be entitled to indemnification
      under this Section 4.11 with respect to Taxes imposed by or within the
      United States; provided, however, that should a Lender, which is
      otherwise exempt from or subject to a reduced rate of withholding Tax, become
      subject to Taxes because of its failure to deliver a form required hereunder,
      the Borrower shall take such steps as such Lender shall reasonably request
      to
      assist such Lender to recover such Taxes.

     

    4.11.6.  If
      the Borrower is required to pay additional amounts to or for the account of
      any
      Lender or Administrative Agent pursuant to this Section, then such Lender or
      the
      Administrative Agent will agree to use reasonable efforts to change the
      jurisdiction of its Applicable Lending Office so as to eliminate or reduce
      any
      such additional payment which may thereafter accrue if such change, in the
      judgment of such Lender or the Administrative Agent, as the case may be, is
      not
      otherwise disadvantageous to such Lender or the Administrative Agent, as the
      case may be.  Each Lender agrees, with respect to the provisions of
      this Section 4.11, to treat Borrower in a manner substantially similar to
      that of its other similarly situated customers.

     

    4.11.7.  Within
      thirty (30) days after the date of any payment of Taxes described in this
      Section 4.11, the Borrower shall furnish to the Administrative Agent the
      original or a certified copy of a receipt evidencing such payment.

     

    4.11.8.  Without
      prejudice to the survival of any other agreement of the Borrower hereunder,
      the
      agreements and obligations of the Borrower contained in this Section shall
      survive the termination of the Commitments and the indefeasible payment in
      full
      in cash of the Loan Obligations.

     

    4.12.      Compensation
      for Increased Costs and Reduced Returns; Capital Adequacy.

     

    4.12.1.  If,
      after the date hereof, any Lender shall have reasonably determined that the
      adoption of any applicable Law regarding capital adequacy or any change therein
      or in the interpretation or administration thereof by any Governmental
      Authority, central bank, or comparable agency charged with the interpretation
      or
      administration thereof, or any request or directive regarding capital adequacy
      (whether or not having the force of law) of any such Governmental Authority,
      central bank, or comparable agency, has or would have the effect of reducing
      the
      rate of return on the capital of such Lender or any corporation controlling
      such
      Lender as a consequence of such Lender’s obligations hereunder to a level below
      that which such Lender or such corporation could have achieved but for such
      adoption, change, request, or directive (taking into consideration its policies
      with respect to capital adequacy), then from time to time upon demand the
      Borrower shall pay to such Lender such additional amount or amounts as will
      reasonably compensate such Lender for such reduction.

     

    4.12.2.  Each
      Lender shall promptly notify the Borrower and the Administrative Agent of any
      event of which it has knowledge, occurring after the date hereof, which will
      entitle 

     

    
      
        
        

      

      
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    such
      Lender to compensation pursuant to this Section and will designate a different
      Applicable Lending Office if such designation will avoid the need for, or reduce
      the amount of, such compensation and will not, in the judgment of such Lender,
      be otherwise disadvantageous to it.  Any Lender claiming compensation
      under this Section shall furnish to the Borrower and the Administrative Agent
      a
      statement setting forth the additional amount or amounts to be paid to it
      hereunder which shall be conclusive in the absence of manifest
      error.  In determining such amount, such Lender may use any reasonable
      averaging and attribution methods.  Each Lender agrees, with respect
      to the provisions of this Section, to treat Borrower in a manner substantially
      similar to that of its other similarly situated customers.

     

    4.13.       Usury.  Notwithstanding
      any provisions to the contrary in Section 4 or elsewhere in any of the Loan
      Documents, Borrower shall not be obligated to pay interest at a rate which
      exceeds the maximum rate permitted by Law.  If, but for this
      Section 4.13, Borrower would be deemed obligated to pay interest at a rate
      which exceeds the maximum rate permitted by Law, or if any of the Loan
      Obligations is paid or becomes payable before its originally scheduled Maturity
      and as a result Borrower has paid or would be obligated to pay interest at
      such
      an excessive rate, then (i) Borrower shall not be obligated to pay interest
      to the extent it exceeds the interest that would be payable at the maximum
      rate
      permitted by Law; (ii) if the outstanding Loan Obligations have not been
      accelerated as provided in Section 16.3.2, any such excess interest that
      has been paid by Borrower shall be refunded; (iii) if the outstanding Loan
      Obligations have been accelerated as provided in Section 16.3.2, any such
      excess that has been paid by Borrower shall be applied to the Loan Obligations
      as provided in Section 16.4; and (iv) the effective rate of interest
      shall be deemed automatically reduced to the maximum rate permitted by
      Law.

     

    5.           Fees.

     

    5.1.        
      Annual Facility Fee.  On each Anniversary Date,
      Borrower shall pay to Administrative Agent for the account of Lenders an Annual
      Facility Fee equal to twenty basis points (.20%) of the then-Aggregate Revolving
      Loan Commitment on such date to be shared pro-rata among the Lenders based
      upon
      each Lenders’ pro rata share of the Aggregate Revolving Loan
      Commitment.  The Annual Facility Fee is not refundable under any
      circumstance.

     

    5.2.         Unused
      Revolving Fee.  Borrower shall pay to Administrative Agent
      for the account of Lenders, based on each Lender’s pro-rata share, a
      non-refundable, recurring Unused Revolving Fee calculated by applying rate
      of
      fifteen (15) basis points to the Unused Revolving Commitment as of the last
      day
      of each fiscal month of Borrower.  The “Unused Revolving Commitment”
for each fiscal month shall be the difference between (i) the Aggregate
      Revolving Loan Commitment as of the last day of such fiscal month and
      (ii) the sum of the (a) the Aggregate Revolving Loan (b) the
      Swingline Loan and (c) the Letter of Credit Exposure, in each case as of each
      Business Day of such fiscal month divided by the number of Business Days in
      such
      month.  The Unused Revolving Fee shall be payable monthly in arrears
      on or before the 25th day of each month for the prior fiscal month, and on
      the
      Revolving Loan Maturity Date.  Notwithstanding the foregoing, if the
      Dollar amount of clause (ii) above is greater than 67% of the Aggregate
      Revolving Loan Commitment as of the last day of such fiscal month, and no Event
      of Default shall have occurred and was continuing as of the last day of such
      month, then the Borrower shall not be obligated to pay the Unused Revolving
      Fee
      for such month.

     

    5.3.          Letter
      of Credit Fees.  Borrower shall pay to Administrative Agent
      for the account of each Lender with a Revolving Loan Commitment (pro rata based
      on each Lender’s Revolving Loan Commitment), a non-refundable recurring Letter
      of Credit Fee for each Letter of Credit 

     

    
      
        
        

      

      
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    issued
      or
      caused to be issued hereunder. The Letter of Credit Fee for any Letter of Credit
      shall be an amount equal to the aggregate undrawn amount of such Letter of
      Credit multiplied by 3.00% (per annum).  The Letter of Credit Fee for
      each Letter of Credit shall be payable in advance on the date of issuance for
      the remaining portion of the quarter when issued and quarterly thereafter in
      advance on the first day of each full calendar quarter thereafter while such
      Letter of Credit is outstanding.

     

    5.4.          Letter
      of Credit Fronting Fee.  Borrower shall pay to Letter of
      Credit Issuer a non-refundable, one-time Fronting Fee equal to .125% of the
      face
      amount of each Letter of Credit issued by Letter of Credit
      Issuer.  The Fronting Fee due for any Letter of Credit shall be
      payable in advance, commencing on the issuance date of such Letter of
      Credit.

    

    5.5.          Other
      Letter of Credit Fees.  Borrower shall pay to the Letter of
      Credit Issuer, Letter of Credit Issuer’s other customary fees for issuance,
      amendment, or renewal of a Letter of Credit and, as Letter of Credit Issuer
      and
      Borrower may agree with respect to each Letter of Credit, for each negotiation
      of a draft drawn under such Letter of Credit.

     

    5.6.          Calculation
      of Fees.  All of the foregoing fees and all other fees
      payable to Administrative Agent or any Lender that are based on an annual
      percentage shall be calculated on the basis of a year deemed to consist of
      360 days and for the actual number of days elapsed.

     

    6.           Payments.

     

    6.1.         Scheduled
      Payments on Loans; Applications to Loans.

     

    6.1.1.              Interest.

     

    6.1.1.1.  Borrower
      shall pay interest accrued on each Aggregate Revolving Loan and on the Swingline
      Loan monthly in arrears beginning on the last day of the calendar month in
      which
      the Effective Date occurs and continuing on the last day of each calendar month
      thereafter, and on the Revolving Loan Maturity Date, with such interest payment
      being due no later than ten (10) days after the last day of such month. Borrower
      shall pay interest accrued on each Revolving Loan and the Swingline Loan after
      the Revolving Loan Maturity Date on demand.

     

    6.1.1.2.  Borrower
      shall pay to Administrative Agent for its own account and the account of CDF,
      all interest, fees and charges accrued on the Aggregate Floorplan Loan and
      the
      Interim Floorplan Loan in accordance with the Transaction
      Statements.  Subject to the terms of Sections 4.3 and 4.5 and
      elsewhere in this Agreement, interest on the Floorplan Loans to the Lenders,
      other than CDF, shall be distributed by Administrative Agent monthly in arrears
      (with the right of set off in favor of Administrative Agent and CDF as set
      forth
      in Section 4.5) beginning on the last day of the first calendar month in
      which the Effective Date occurs and continuing on the last day of each calendar
      month thereafter, on the Floorplan Loan Maturity Date, and, subject to the
      terms
      of this Agreement, monthly thereafter for Approvals in effect and not funded
      on
      the Floorplan Loan Maturity Date (subject to the Borrower’s obligation to
      provide cash collateral for such Approvals).

     

    
      
        
        

      

      
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    6.1.2.              Principal.

     

    6.1.2.1.    Borrower
      shall, and
      shall cause each other Covered Person to, direct all Account Debtors to remit
      payments on their Accounts to one or another lockboxes maintained at financial
      institutions acceptable to Administrative Agent, each under a lockbox agreement
      with such financial institutions in form and substance satisfactory to
      Administrative Agent (collectively, the “Lockboxes”) with all payments received
      in any such Lockboxes being deposited into an account at such financial
      institution (all such accounts that may exist from time to time, are
      collectively referred to as the “Blocked Accounts”).  Each of the
      Blocked Accounts and Lockboxes shall be blocked in favor of Administrative
      Agent
      and subject to the Administrative Agent’s exclusive control pursuant to one or
      more agreements in form and substance satisfactory to Administrative
      Agent.  Borrower hereby assigns and grants to Administrative Agent for
      the benefit of Lenders, a first priority Security Interest in, and control
      over,
      any and all Blocked Accounts and Lockboxes, and all amounts deposited or
      received in the Blocked Accounts and the Lockboxes from time to time, as
      security for payment and performance of the Loan Obligations.  All
      payments received in the Lockboxes, Blocked Accounts and other proceeds of
      Collateral shall be paid to Administrative Agent, as payment on the Advances,
      as
      provided for herein, and deposited into Administrative Agent’s account at such
      financial institutions as Administrative Agent shall direct and instruct from
      time to time (any such account of Administrative Agent being the “Cash
      Collateral Account”).  In addition, any other funds Borrower receives
      directly (other than from Floorplan Loan Advances, Interim Floorplan Loan
      Advances, Revolving Loan Advances, and Swingline Advances), shall be deposited
      into an investment account described in Section 14.1.4.

     

    (i)           Subject
      to Section 6.1.2.1(ii) and the last sentence of this Section, payments
      shall be paid or applied by the Administrative Agent (in each case up to the
      outstanding principal amount of the applicable Loan) (i) first, to reduce
      the Swingline Loan to zero, (ii) second, to the extent of any excess, to
      the Lender also acting as Administrative Agent in its capacity as a Lender
      and
      not as Administrative Agent, to reduce any LIBOR Loans included in the Aggregate
      Revolving Loan owing to the Lender acting as Administrative Agent that are
      not
      also Swingline Loans until reduced to zero, and if the Aggregate Revolving
      Loan
      is reduced to zero and there is no Existing Default, the remainder shall be
      promptly returned to Borrower, or, if there is an Existing Default, distributed
      by the Administrative Agent to the other Lenders after consultation by
      Administrative Agent with the other Lenders including payment of cash collateral
      satisfactory to Administrative Agent as security for Borrower’s obligation to
      reimburse the Letter of Credit Issuer, the Administrative Agent and the Lenders
      for 105% of all draws and expenses under all outstanding Letters of Credit
      and
      100% of any unfunded Approvals.  Notwithstanding the foregoing,
      payments, whether from a Borrower or a Vendor on the Interim Floorplan Loan
      and
      the Aggregate Floorplan Loan 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    owing
      to
      Administrative Agent and the Lender acting as Administrative Agent shall be
      applied to the Interim Floorplan Loan of the Administrative Agent and the
      Aggregate Floorplan Loan of such Lender as it deems appropriate in its sole
      discretion.

     

    (ii)           Prior
      to 4:00 p.m. (Local Time) on the last Business Day of each calendar week or
      any other Business Day of each calendar week as may be selected by
      Administrative Agent (a “Settlement Date”), based on funds collected pursuant to
      Section 6.1.2.1 as of 12:00 p.m. (Local Time) on the Business Day
      immediately preceding such Settlement Date (under all circumstances, including
      without limitation, during the existence of an Event of Default), each Lender
      shall, to the extent it does not hold its pro-rata share of the outstanding
      Aggregate Floorplan Loan (including, without limitation, any amounts for which
      an Approval has been issued, whether or not funding has occurred), and the
      Aggregate Revolving Loan, but excluding any Swingline Loan or Interim Floorplan
      Loan, purchase from or sell to one or more other Lenders, at par, which may
      occur by a funding through the Administrative Agent, that portion of its Loans
      as is necessary for it to thereafter hold its pro-rata share of the outstanding
      Aggregate Floorplan Loan and the Aggregate Revolving Loan.  In order
      that the foregoing settlement among the Lenders can be effected on each
      Settlement Date, the Administrative Agent shall, on or before 12:00 p.m. (Local
      Time) on such Settlement Date, notify each Lender who shall purchase or sell
      a
      Loan, or fund through the Administrative Agent, of (i) the principal amount
      of the Loan to be purchased or sold, (ii) the name of the Lender(s) which
      will be purchasing from or selling to such Lender a Loan, and (iii) if such
      Lender is to purchase a Loan, the name of and wire transfer instructions for
      the
      Lender(s) from which the Loan shall be purchased.  On or before
      4:00 p.m. (Local Time) on such Settlement Date, each such purchasing Lender
      shall wire transfer immediately available funds to the applicable selling
      Lender(s) the amount necessary to effect the settlement.

     

    6.1.2.2. 
         Administrative
      Agent may, at any time, in its sole discretion, cause the Settlement Date to
      occur more frequently, including, without limitation, each Business Day of
      each
      week.  Administrative Agent shall notify each Lender that a given
      Business Day shall be a Settlement Date by no later than 12:30 p.m. (Local
      Time)
      on the Business Day immediately preceding any such date.

     

    6.1.2.3.           Maturity.  Borrower
      shall repay the entire amount of the Aggregate Revolving Loan on August 21,
      2009
      and Borrower shall repay the entire amount of the Swingline Loan on demand,
      or
      if no demand is made, on August 21, 2009, and plus at such time, payment of
      cash
      collateral satisfactory to Administrative Agent as security for Borrower’s
      obligation to reimburse the Letter of Credit Issuer for 105% of all draws and
      expenses under all 

     

    
      
        
        

      

      
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    outstanding
      Letters of Credit.  Borrower shall repay the entire amount of the
      Aggregate Floorplan Loan and the Interim Floorplan Loan on the date as provided
      in Section 3.2.7 or specified elsewhere in this Agreement or if no demand
      is made as set forth in Section 3.2.7 or elsewhere in this Agreement, then
      on August 21, 2009 (such date being, the “Floorplan Loan Maturity Date”), plus
      cash collateral equal to 100% of any unfunded Approvals, in which case such
      Approvals shall be otherwise paid in accordance with the applicable Transaction
      Statements.

     

    6.2.         Special
      Requirement for Payments on Floorplan Loans and Interim Floorplan
      Loans.  Borrower will immediately pay Administrative Agent
      the principal indebtedness owed the Administrative Agent and the Lenders on
      each
      item of Collateral financed by the Lenders and Administrative Agent (as shown
      on
      the Transaction Statement identifying such Collateral) under the Floorplan
      Loan
      Facility or the Interim Floorplan Loan Facility on the earliest occurrence
      of
      any of the following events:  (a) when such Collateral is (i)
      lost, (ii) stolen, or (iii) damaged and no longer merchantable; (b)  in
      strict accordance with any curtailment schedule for such Collateral (as shown
      on
      the Transaction Statement identifying such Collateral); (c) for Collateral
      financed under Scheduled Payment Program (“SPP”) terms (as shown on the
      Transaction Statement identifying such Collateral), in strict accordance with
      the installment payment schedule; and (d) when otherwise required under the
      terms of any financing program agreed to in writing by the Borrower and
      Administrative Agent.  Any third party discount, rebate, subsidy,
      bonus or credit granted to Borrower for any Collateral will not reduce the
      Loan
      Obligations until Administrative Agent has received payment as provided in
      this
      Agreement.  The Floorplan Shortfall, if any, will remain in effect,
      until the next determination of the Floorplan Shortfall by Administrative
      Agent.  The Administrative Agent may determine the Floorplan Shortfall
      as often as it chooses in its sole discretion.  Borrower shall pay all
      amounts owing to Administrative Agent and the Lenders under the Floorplan Loan
      Facility and the Interim Floorplan Loan Facility as set forth herein and in
      the
      Transaction Statement.

     

    6.3.         Prepayments.

     

    6.3.1.              Voluntary
      Prepayments.  Subject to the limitations in the following
      sentences, except for mandatory prepayments and funds received by Administrative
      Agent as contemplated by Section 6.1, Borrower may wholly prepay any LIBOR
      Loan that is included in the Aggregate Revolving Loan, or the Swingline Loan,
      or
      prepay any Floorplan Loan or Interim Floorplan Loan, at any time and may make
      a
      partial prepayment thereon from time to time, without penalty or premium if
      Borrower pays any amount that is due as a consequence of the prepayment of
      any
      LIBOR Loan and as otherwise provided for in this Agreement.  All such
      prepayments, unless otherwise expressly stated in writing by Borrower to
      Administrative Agent prior to the making of such prepayment, will be deemed
      made
      on the Swingline Loan until it is reduced to zero, thereafter to the Interim
      Floorplan Loan until it is reduced to zero, thereafter to the Aggregate
      Floorplan Loan until it is reduced to zero, and thereafter to the Aggregate
      Revolving Loan until it is reduced to zero (with, in each case, the payment
      of
      any and all penalties and premiums due hereunder in connection therewith),
      and
      will be applied by Lenders to reduce the Floorplan Loans and the Revolving
      Loans, as appropriate, in accordance with their respective pro-rata
      shares.  In addition, on any date that the sum of the Aggregate
      Revolving Loans, the Swingline Loans, the Aggregate Floorplan Loans, the Interim
      Floorplan Loans, the unfunded Approvals, the Letter of Credit Exposure and
      the
      Floorplan Shortfall exceeds the Borrowing Base plus the Floorplan Inventory
      Value, 

     

    
      
        
        

      

      
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    then
      the
      Borrower shall immediately make a payment of the amount of such excess to the
      Administrative Agent.

     

    6.3.2.              Mandatory
      Prepayments.  If at any time the Aggregate Revolving Loan
      plus the Swingline Loans, exceeds the Maximum Available Amount (which can be
      a
      negative number), whether as a result of optional Swingline Advance made by
      Administrative Agent as contemplated by Section 3.3.2, or otherwise,
      Borrower shall on demand make a payment in the amount of the difference to
      Administrative Agent for the account of Administrative Agent on the Swingline
      Loan and Lenders on the Aggregate Revolving Loan together with all accrued
      but
      unpaid interest thereon.  Each such prepayment will be applied by
      Administrative Agent and Lenders first to reduce the Swingline Loan until it
      is
      reduced to zero, then to reduce the LIBOR Loans (which Borrower acknowledges
      may
      result in the payment of fees and costs) that are included in the Aggregate
      Revolving Loan (and consequently a ratable portion of each Lender’s Revolving
      Loan).  In addition, on any date that the Interim Floorplan Loan plus
      the Aggregate Floorplan Loan plus unfunded Approvals exceeds the Aggregate
      Floorplan Loan Facility, then the Borrower shall, on such date, pay such excess
      to the Administrative Agent for the pro-rata benefit of the Lenders and failure
      to pay such excess on such date shall be an immediate Event of
      Default.

     

    6.3.3.              Other
      Mandatory Prepayments.

     

    6.3.3.1.          Proceeds
      from Sales of Assets.  If any Covered Person sells any of its
      assets in a single transaction or related series of transactions that are not
      in
      the ordinary course of business, Borrower shall make a payment to Administrative
      Agent for the benefit of the Lenders in the amount of the gross proceeds
      therefrom less reasonable selling expenses and the increment in federal, state
      and local income Taxes, if any, and applicable transfer Taxes, if any, payable
      as a consequence of such sale.  Borrower need not make such
      prepayment, however, unless the net proceeds from such sale or sales exceed
      $250,000 in the aggregate in any calendar year, in the aggregate for all Covered
      Persons.

     

    6.3.3.2.           Proceeds
      from Sale of Securities or Indebtedness.  If after the
      Execution Date, Borrower issues any Capital Securities (except Capital
      Securities issued in connection with stock splits or dividends payable in stock)
      or debt securities, or warrants or options therefor, or otherwise incurs any
      Indebtedness other than Permitted Indebtedness, Borrower shall promptly after
      such sale make a payment to Administrative Agent for the benefit of the Lenders,
      based on each Lender’s pro-rata share, to be applied to the Loan Obligations, in
      an aggregate amount equal to the gross proceeds therefrom less reasonable
      brokers’ and underwriters’ fees and commissions and other reasonable issuing
      expenses (such amount being the “Net Proceeds”); provided, however, if (i) no
      Event of Default has occurred and is continuing, (ii) no Change of Control
      has
      occurred (unless consented to in writing by the Required Lenders), (iii) the
      terms and provisions of such issuance of Capital Securities of MTM Technologies,
      Inc. are reasonably acceptable to Administrative Agent, and (iv) the Net
      Proceeds of any issuance of Capital Securities (except Capital Securities issued
      in connection with stock splits or dividends payable in stock) MTM Technologies,
      Inc. is greater than $25,000,000, then 50% of the amount in excess of
      $25,000,000 may be used to 

     

    
      
        
        

      

      
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    prepay
      the Subordinated Indebtedness and the remaining 50% shall be used to repay
      the
      Loan Obligations.

     

    6.3.3.3.          Insurance
      Proceeds.  All Insurance Proceeds (excluding proceeds from
      directors’ and officers’ insurance policies) shall be deposited in the Cash
      Collateral Account and shall be applied by Administrative Agent to the Loan
      Obligations.  Administrative Agent is hereby authorized to participate
      in any proceeding for the condemnation or other taking of any of Borrower’s
      property and Borrower from time to time will deliver to Administrative Agent
      all
      instruments reasonably requested by Administrative Agent to permit such
      participation.

     

    Every
      prepayment under this Section  shall be applied to reduce the Aggregate
      Revolving Loans and shall be distributed by Administrative Agent to Lenders
      in
      accordance with their pro-rata shares of the Aggregate Revolving Loan Commitment
      and applied by Lenders to reduce their Revolving Loans in accordance with their
      respective pro-rata shares of the Aggregate Revolving Loan Commitment, provided,
      however, with respect to the prepayments described in Section 6.3.3.2, if there
      is no Existing Default at the time of receipt thereof by the Borrower, such
      prepayments shall be delivered by Borrower, at Borrower’s option, to the
      Administrative Agent to reduce the Aggregate Revolving Loan and to be
      distributed as described above or deposited into an investment account permitted
      under Section 14.1.4.  If application to the Revolving Loans of any
      prepayment required under this Section  reduces the Revolving Loans (and
      consequently the Aggregate Revolving Loan) to zero, then the remaining amount
      of
      such prepayment shall be applied by Lenders to reduce the Floorplan Loans to
      zero (and consequently the Aggregate Floorplan Loan).

     

    6.4.        Reimbursement
      Obligations of Borrower.  Borrower hereby unconditionally
      agrees to pay immediately to the Letter of Credit Issuer on demand at the Letter
      of Credit Issuer’s Applicable Lending Office all amounts required to pay all
      drafts drawn under Letters of Credit issued for the account of Borrower and
      all
      reasonable expenses incurred by Letter of Credit Issuer in connection with
      such
      Letters of Credit and in any event and without demand to remit to Letter of
      Credit Issuer (which may be through obtaining Advances if permitted under this
      Agreement) sufficient funds to pay all debts and liabilities arising under
      any
      Letter of Credit issued for the account of such Borrower.  Letter of
      Credit Issuer, if it is not also the Administrative Agent, shall simultaneously
      send to Administrative Agent copies of all notices, demands and correspondence
      sent by Letter of Credit Issuer to Borrower relating to Letters of
      Credit.

     

    6.5.        Manner
      of Payments and Timing of Application of Payments.

     

    6.5.1.              Payment
      Requirement.  Except as provided in Section 6.1.2.1 with
      respect to payments from collected funds in the Cash Collateral Account and
      unless expressly provided to the contrary elsewhere herein, Borrower shall
      make
      each payment on the Loan Obligations to Administrative Agent for the account
      of
      Lenders (based on each Lender’s pro-rata share) as required under the Loan
      Documents at the Applicable Lending Office of the Administrative Agent on the
      date when due, without deduction, set-off or counterclaim (provided, however,
      the making of such payment shall not constitute a waiver by Borrower of
      counterclaims arising from the willful misconduct or gross negligence of
      Administrative Agent or the Lenders).  All such payments will be
      distributed by Administrative Agent to Lenders as provided in Section 17.10
      for application to the Loan Obligations as provided herein.

     

    6.5.2.              Application
      of Payments and Proceeds.  All immediately available funds
      collected pursuant to Section 6.1.2.1 at or before 12:00 noon (Local
      Time) on a Business 

     

    
      
        
        

      

      
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    Day
      excluding a Settlement Date, will be distributed by Administrative Agent as
      provided in Section 6.1.2.1(i).  Such funds received on a day
      that is not a Business Day, or if on a Business Day, after 12:00 noon
      (Local Time), will be deemed received on the immediately following Business
      Day,
      and distributed by Administrative Agent on a Settlement Date as provided in
      Section 17.10.  The amount so distributed to a Lender will be
      applied by such Lender to the relevant Loan Obligation on the Business Day
      when
      received. Borrower will also pay to Administrative Agent, for its own account,
      such fees as Administrative Agent generally charges its customers for each
      check
      returned unpaid for insufficient funds (an “NSF check”) (such payment repays
      Administrative Agent’s estimated administrative costs; it does not waive any
      Default or Event of Default caused by the NSF check).

     

    6.5.3.              Interest
      Calculation.  Interest shall begin accruing, and be owing and
      payable on an Advance on the day such Advance is made by a Lender to the
      Administrative Agent (provided, however, that interest on the Aggregate
      Floorplan Loan and Interim Floorplan Loan shall begin accruing on the date
      of
      the applicable invoice, as provided in the applicable Transaction Statement
      at
      the applicable rate set forth therein (which rate may be zero percent for a
      period of time)).  Section 6.5.2 notwithstanding, for purposes of
      interest calculation only, (i) a payment by check, draft or other
      instrument received at or before 12:00 noon (Local Time) on a Business Day
      shall be deemed to have been applied to the relevant Loan Obligation on the
      second following Business Day, (ii) a payment by check, draft or other
      instrument received on a day that is not a Business Day or after 12:00 noon
      (Local Time) on a Business Day shall be deemed to have been applied to the
      relevant Loan Obligation on the third following Business Day, (iii) a
      payment received by ACH (Automatic Clearing House) received at or before
      12:00 noon (Local Time) on a Business Day shall be deemed to have been
      applied to the relevant Loan Obligation on the same Business Day, (iv) a
      payment by ACH received on a day that is not a Business Day or after
      12:00 noon (Local Time) on a Business Day shall be deemed to have been
      applied to the relevant Loan Obligation on the next following Business Day,
      (v) a payment received by wire transfer received at or before
      12:00 noon (Local Time) on a Business Day shall be deemed to have been
      applied to the relevant Loan Obligation on the Business Day when it is received,
      and (vi) a payment by wire transfer received on a day that is not a
      Business Day or after 12:00 noon (Local Time) on a Business Day shall be
      deemed to have been applied to the relevant Loan Obligation on the next Business
      Day.  Borrower acknowledges that payments in cash on the Loan
      Obligations will not be accepted by Administrative Agent.

     

    6.6.           Returned
      Instruments.  If a payment is made by check, draft or other
      instrument and the check, draft or other instrument is returned unpaid, any
      application of the payment to the Loan Obligations will be reversed and will
      be
      treated as never having been made.

     

    6.7.           Compelled
      Return of Payments or Proceeds.  If the Administrative Agent
      or any Lender is for any reason compelled to surrender any payment or any
      proceeds of the Collateral because such payment or the application of such
      proceeds is for any reason invalidated, declared fraudulent, set aside, or
      determined to be void or voidable as a preference, an impermissible set-off,
      or
      a diversion of trust funds, then this Agreement and the Loan Obligations to
      which such payment or proceeds was applied or intended to be applied shall
      be
      revived as if such application was never made; and Borrower shall be liable
      to
      pay to Administrative Agent or such Lender, and shall indemnify Administrative
      Agent and/or such Lender for and hold Administrative Agent and/or such Lender
      harmless from any loss with respect to, the amount of such payment or proceeds
      surrendered.  This Section shall be effective notwithstanding any
      contrary action that 

     

    
      
        
        

      

      
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    Administrative
      Agent and/or such Lender may take in reliance upon its receipt of any such
      payment or proceeds.  Any such contrary action so taken by
      Administrative Agent and/or such Lender shall be without prejudice to
      Administrative Agent and/or such Lender’s rights under this Agreement and shall
      be deemed to have been conditioned upon the application of such payment or
      proceeds having become final and indefeasible.  The provisions of this
      Section shall survive termination of the Commitments and the indefeasible
      payment and satisfaction of all of the Loan Obligations.

     

    6.8.           Due
      Dates Not on Business Days.  If any payment required
      hereunder becomes due on a date that is not a Business Day, then such due date
      shall be deemed automatically due the preceding Business Day.

     

    7.           Procedure
      for Obtaining Advances.

     

    7.1.           Initial
      Advances.  Provided that all conditions thereto hereunder are
      satisfied and subject to the limitations contained herein, Lenders will fund
      and
      Administrative Agent will make the initial Revolving Loan Advance, on the
      Effective Date as directed by Borrower in a written direction delivered to
      Administrative Agent.  The manner of disbursement shall be subject to
      Administrative Agent’s approval.  Administrative Agent will fund the
      initial Interim Floorplan Loan in accordance with its policies and
      procedures.

     

    7.2.           Subsequent
      Revolving Loan Advances.  Borrower may request subsequent
      Revolving Loan Advances at any time, but not more often than once each Business
      Day, by submitting a request therefor to Administrative Agent as provided in
      Section 7.10.  All requests for a Revolving Loan Advance must be
      submitted by Borrowing Agent.  Administrative Agent may treat every
      request for a Revolving Loan Advance as a request for a Swingline Advance to
      the
      extent the requested amount does not exceed the Maximum Swingline Amount and
      as
      a request for a Revolving Loan Advance in the amount of the
      excess.  Every request for an Revolving Loan Advance shall be
      irrevocable.  A request for a Revolving Loan Advance received by
      Administrative Agent on a day that is not a Business Day or that is received
      by
      Administrative Agent after 11:00 a.m. (Local Time) on a Business Day shall
      be treated as having been received by Administrative Agent at 11:00 a.m.
      (Local Time) on the next Business Day.

     

    7.3.           Subsequent
      Floorplan Loan Advances.  Administrative Agent may treat
      every request for a Floorplan Loan Advance as a request for an Interim Floorplan
      Loan Advance to the extent the requested amount does not exceed the Floorplan
      Loan Facility (when added to the Aggregate Floorplan Loan and the Interim
      Floorplan Loan and all unfunded Approvals) and as a request for a Floorplan
      Loan
      Advance in the amount of the excess.

     

    7.3.1.              Repayment
      of the Swingline Loan and the Interim Floorplan Loan.

     

    7.3.1.1.   
      Administrative Agent may in its absolute discretion on any Business Day give
      notice to Lenders of the amount of the Swingline Loan and/or Interim Floorplan
      Loan after application of all payments to be applied thereto as provided
      elsewhere herein.  Such notice shall be given no later than 1:00 p.m.
      (Local Time) and may include a demand that the Swingline Loan and/or the Interim
      Floorplan Loan be fully paid.  If Administrative Agent demands that
      the Swingline Loan and/or the Interim Floorplan Loan be fully paid, then prior
      to 4:00 p.m. (Local Time) on such date, Lenders shall remit funds to
      Administrative Agent sufficient to reduce the Swingline Loan and/or the Interim
      Floorplan Loan to zero.  The aggregate of such remittances shall be
      treated as a Revolving Loan Advance and the Aggregate Revolving Loan

     

    
      
        
        

      

      
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    increased
      accordingly (in the case of payments on the Swingline Loan) and as a Floorplan
      Loan Advance and the Aggregate Floorplan Loan increased accordingly (in the
      case
      of payments on the Interim Floorplan Loan).

     

    7.3.1.2.   
      If for any reason, including the commencement of a proceeding in bankruptcy
      with
      respect to any Borrower, remittances by Lenders as provided above cannot be
      made
      on the date otherwise required above, then each Lender shall be deemed
      automatically to have purchased from Administrative Agent as of such date an
      undivided interest and participation in the Swingline Loan and the Interim
      Floorplan Loan equal to such Lender’s pro-rata share, so as to cause such Lender
      to share in the Swingline Loan and the Interim Floorplan Loan in accordance
      with
      its pro-rata share.  Each Lender shall remit its pro-rata share of the
      Swingline Loan and the Interim Floorplan Loan to Administrative Agent promptly
      on demand.  All interest payable with respect to such Lender’s
      pro-rata share of the Swingline Loan and the Interim Floorplan Loan shall be
      for
      the account of Administrative Agent to the date such remittance is made, and
      shall be for the account of and remitted by Administrative Agent to such Lender
      (except in the case of the Floorplan Loan, at the rate designated in
      Section 4.4 with respect to CDF and the other Lenders) as a participant
      from such date.  Further, until such remittance is made, such Lender
      shall pay to Administrative Agent, on demand, interest on such Lender’s pro-rata
      share of the Swingline Loan and the Floorplan Loan at the Federal Funds Rate,
      and such Lender shall be subject to the restrictions contained in
      Section 7.5.

     

    7.3.2.              Administrative
      Agent’s Right to Make Other Certain Advances.

     

    7.3.2.1.      Payment
      of Loan Obligations.  Administrative Agent shall have the
      right to make Revolving Loan Advances at any time and from time to time to
      cause
      timely payment of any of the Loan Obligations, including without limitation,
      to
      pay any fees, interest or principal on the Swingline Loan, the Interim Floorplan
      Loan, the Aggregate Floorplan Loan, and the Aggregate Revolving Loan, and to
      pay
      the Unused Revolving Fee and any other fees owing to the Lenders or the
      Administrative Agent; provided, however, with respect to third party fees,
      if
      there is no Existing Default, Administrative Agent shall use its reasonable
      efforts to give prior notice to the Borrower of the payment of any such fees
      from an Advance (but shall have no liability for its failure to notify Borrower,
      and any such failure shall not give rise to a claim or cause of action by
      Borrower against Administrative Agent or any Lender).  If there is no
      Existing Default, Administrative Agent shall use reasonable efforts to notify
      Borrower (but shall have no liability for its failure to notify Borrower and
      such failure shall not give rise to a claim or cause of action by Borrower
      against Administrative Agent or any Lender) on the day it makes an Advance
      to
      pay any interest owing hereunder or the Unused Revolving
      Fee.  Administrative Agent may select the Advance Date for any such
      Advance, but such Advance Date may only be a Business
      Day.  Administrative Agent will give notice to Borrower after any such
      Advance is made.

     

    7.3.2.2.       Payments
      to Other Creditors.  If Administrative Agent becomes
      obligated to reimburse or pay to any creditor of Borrower any amount in order
      to
      (i) obtain a release of such creditor’s Security Interest in any of the
      Collateral, other than Permitted Security Interests, or (ii) otherwise
      satisfy an 

     

    
      
        
        

      

      
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    Obligation
      of Borrower to such creditor to the extent not indefeasibly satisfied by the
      initial Advances, then Administrative Agent shall have the right (but shall
      have
      no obligation) to make Advances for that purpose.  Administrative
      Agent may select the Advance Date for any such Advance, but such Advance Date
      may only be a Business Day.  Administrative Agent will give notice to
      Borrower after any such Advance is made.

     

    7.4.           Fundings.

     

    7.4.1.              Advances.  Not
      later than 1:00 p.m. (Local Time) on each Advance Date for a Floorplan Loan
      Advance, and/or a Revolving Loan Advance, Administrative Agent shall promptly
      notify each Lender of the amount of the Floorplan Loan Advance or the Revolving
      Loan Advance to be made on that Advance Date.  Each Lender shall make
      immediately available to Administrative Agent by 4:00 p.m. (Local Time) on
      the Advance Date funds consisting solely of Dollars in the amount of its
      pro-rata share of such Floorplan Loan Advance, or Revolving Loan Advance,
      rounded to the nearest penny, in accordance with such remittance instructions
      as
      may be given by Administrative Agent to Lenders from time to time.

     

    7.4.2.              Draws
      on Letters of Credit.  If a draw is made on a Letter of
      Credit and Borrower does not reimburse the amount of such draw in full to Letter
      of Credit Issuer on the same Business Day as demand is made by the Letter of
      Credit Issuer, then the Letter of Credit Issuer shall promptly notify
      Administrative Agent (if Administrative Agent and the Letter of Credit Issuer
      are not the same Person) of such failure. Upon Administrative Agent’s receipt of
      such notice from Letter of Credit Issuer, Administrative Agent may notify each
      Lender thereof and shall have the right to cause a Revolving Loan Advance to
      be
      made, regardless whether such Revolving Loan Advance would result in the
      Aggregate Revolving Loan exceeding the Maximum Available Amount or regardless
      as
      to whether an Event of Default exists, by notifying each Lender of the draw,
      the
      amount of the Revolving Loan Advance required to fund reimbursement of such
      draw, and the amount of such Lender’s ratable share of such Revolving Loan
      Advance.  The Advance Date and time for such Revolving Loan Advance
      shall not be later than 4:00 p.m. (Local Time) on the first Business Day
      following Administrative Agent’s delivery of such notice to Lenders. By no later
      than such Advance Date and time, each Lender shall make immediately available
      to
      Administrative Agent funds consisting solely of Dollars in the amount of its
      pro-rata share of such Revolving Loan Advance, rounded to the nearest penny,
      in
      accordance with such remittance instructions as may be given by Administrative
      Agent to each Lender from time to time.

     

    7.4.3.              All
      Fundings Ratable.  All fundings of Advances (other than
      Swingline Advances and Interim Floorplan Loan Advances) shall be made by Lenders
      as provided herein in accordance with their pro-rata shares of the respective
      Aggregate Commitments, as applicable. Except as otherwise expressly provided
      herein, a Lender shall not be obligated to fund Revolving Loan Advances plus
      such Lender’s pro-rata share of the Letter of Credit Exposure that would result
      in such Lender’s Revolving Loan exceeding its Revolving Loan Commitment, fund
      Floorplan Loan Advances that would result in its Floorplan Loan exceeding its
      Floorplan Loan Facility, or make available any more than its pro-rata share
      of
      any Advance.

     

    7.5.           Administrative
      Agent’s Availability Assumption.

     

    
      
        
        

      

      
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    7.5.1.     
      Unless Administrative Agent has been given written notice by a Lender prior
      to
      an Advance Date that such Lender does not intend to make immediately available
      to Administrative Agent such Lender’s pro-rata share of the Advance which
      Administrative Agent may be obligated to make on the Advance Date, including,
      without limitation, any Advance that may be made based on the issuance of an
      Approval Administrative Agent may assume that such Lender has made the required
      amount available to Administrative Agent on the Advance Date and Administrative
      Agent may, in reliance upon such assumption, make available to Borrower a
      corresponding amount.  Failure of any Lender to pay its pro-rata share
      of the Swingline Loan, any Floorplan Loan (whether based on the issuance of
      an
      Approval or otherwise), the Interim Floorplan Loan (whether based on the
      issuance of an Approval or otherwise), or any Revolving Loan or any other amount
      owing hereunder by a Lender upon demand shall make such Lender a “Defaulting
      Lender”.  If such corresponding amount is not in fact made immediately
      available to Administrative Agent by such Defaulting Lender on the Advance
      Date,
      Administrative Agent shall be entitled to recover such corresponding amount
      on
      demand from such Defaulting Lender.  If such Defaulting Lender does
      not pay such corresponding amount immediately upon Administrative Agent’s demand
      therefor, then Administrative Agent shall promptly notify Borrower and the
      other
      Lenders and Borrower shall pay such corresponding amount to Administrative
      Agent
      within one (1) Business Day.  Administrative Agent shall also be
      entitled to recover, either from such Defaulting Lender or Borrower, interest
      on
      such corresponding amount for each day from the date such corresponding amount
      was made available by Administrative Agent to Borrower to the date such
      corresponding amount is recovered by Administrative Agent, at a rate per annum
      equal to (i) if paid by such Lender, the cost to Administrative Agent of
      funding such amount at the Federal Funds Rate, or (ii) if paid by Borrower,
      the applicable rate for the Advance in question determined from the request
      therefor.  Each Lender shall be obligated only to fund its pro-rata
      share of an Advance subject to the terms and conditions hereof, regardless
      of
      the failure of another Lender to fund its pro-rata share thereof.

     

    7.5.2.     
      Each remittance or payment or Advance required to be made by a Lender shall
      be
      made in accordance with its pro-rata share and shall be made notwithstanding
      that (i) the amount of the aggregate of such remittances by Lenders may not
      be in the minimum amount for Revolving Loan Advances, or Floorplan Loan Advances
      or otherwise required hereunder, (ii) any conditions to Advances in
      Section 10 may not be then satisfied, (iii) there is an Existing
      Default, (iv) the aggregate amount of such remittances by Lenders would
      result in the Aggregate Revolving Loan exceeding the Maximum Available Amount
      or
      the aggregate amount of such remittances by Lenders would result in the
      Aggregate Floorplan Loan plus the Interim Floorplan Loan exceeding the value
      of
      the Collateral advanced against thereunder or the Aggregate Floorplan Loan
      Facility, or (v) such remittances by Lenders may be made after the
      Revolving Loan Maturity Date or the Floorplan Loan Maturity Date, as the case
      may be; provided, however, that in no event shall any Lender be required to
      make
      any such remittance that would result in the sum of the Revolving Loan of such
      Lender plus such Lender’s pro-rata share of the Letter of Credit Exposure
      exceeding such Lender’s Revolving Loan Commitment, or the Floorplan Loan of such
      Lender exceeding such Lender’s Floorplan Loan Facility.

     

    7.5.3.     
      In addition, with respect to any Defaulting Lender, until a payment or Advance
      is paid to Administrative Agent (with interest at described above),
      (i) such Defaulting Lender shall permit the Administrative Agent the
      unconditional and 

     

    
      
        
        

      

      
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    irrevocable
      right of setoff against any amounts (including, without limitation, payments
      of
      principal, interest, and fees, as well as indemnity payments) received by
      Administrative Agent hereunder for the benefit of any such Defaulting Lender,
      and (ii) if such failure to pay shall continue for a period of three
      Business Days, result in any such Defaulting Lender forfeiting any right to
      vote
      on any matter that the Required Lenders or all Lenders are permitted to vote
      for
      hereunder (and the calculation of Required Lenders shall exclude such Defaulting
      Lender’s interest in the Lenders’ Exposure); provided, however, once such a
      failure is cured, then such Lender shall, subsequent thereto, have all rights
      hereunder; provided, further, however, if any Lender shall fail to make such
      a
      payment within the three Business Day period specified in clause (ii) above
      (other than by reason of events beyond the reasonable control of such Lender)
      three or more times during the term hereof, such Lender shall permanently
      forfeit its right to vote hereunder (and the calculation of Required Lenders
      shall exclude such Defaulting Lender’s interest in the Lenders’
Exposure).

     

    7.6.           Letters
      of Credit.   Borrower may request the issuance of a Letter of
      Credit by submitting an issuance request to Letter of Credit Issuer and also
      Administrative Agent (if Administrative Agent and the Letter of Credit Issuer
      are not the same Person) and executing the reimbursement agreement required
      under Section 7.11 no less than five Business Days prior to the requested issue
      date for such Letter of Credit.

     

    7.7.           Disbursement.  
      Provided that all conditions precedent herein to a requested Advance or, if
      applicable, a Swingline Advance or Interim Floorplan Loan Advance, have been
      satisfied, Administrative Agent will make the amount of such requested Advance
      available to Borrower or in the case of an Interim Floorplan Loan Advance or
      a
      Floorplan Loan Advance to the appropriate Vendor, on the applicable Advance
      Date
      in immediately available funds in Dollars at the Applicable Lending
      Office.

     

    7.8.           Restrictions
      on Advances.   No more than one Revolving Loan Advance and no
      more than one Swingline Advance will be made on any one day pursuant to a
      request for a Revolving Loan Advance.  Advances will only be made for
      the purposes permitted in Section 13.1.

     

    7.9.           Each
      Advance Request and Request for Letter of Credit a
      Certification.  Each submittal of a request for an Advance
      and each submittal of a request for the issuance of a Letter of Credit by a
      Borrowing Officer shall constitute a certification by Borrower that
      (i) there is no Existing Default, (ii) all conditions precedent
      hereunder to the making of the requested Advance have been satisfied, and
      (iii) the Representations and Warranties are then true, with such
      exceptions as have been disclosed to Lenders in writing by Borrower or any
      Guarantor making such Representations and Warranties from time to time and
      are
      satisfactory to the Required Lenders, and will be true on the Advance Date,
      as
      applicable, as if then made with such exceptions.

     

    7.10.           Requirements
      for Every Advance Request.  Subject to the terms of
      Section 10 and the other provisions of this Agreement, with regards to
      Swingline Loans, and Revolving Loan Advances, only a request (which shall be
      in
      writing in the form attached hereto as Exhibit 7.10 and mailed, sent via
      email from an authorized person with such email containing a signed PDF copy
      of
      such duly signed request, personally delivered or telecopied as provided in
      Section 20.1) from a Borrowing Officer of Borrowing Agent to Administrative
      Agent that specifies the amount of the Advance to be made, the Advance Date
      for
      the requested Advance shall be treated as a request for an
      Advance.  No Advance Date for any requested Advance may be other than
      a Business Day.  With regards to Swingline Loans and Revolving Loan
      Advances, a request for an 

     

    
      
        
        

      

      
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    Advance
      must be given prior to 11:00 a.m., Local Time, on the Advance Date for such
      Advance.  Subject to the terms of Section 10 and the other provisions
      of this Agreement, Floorplan Loan Advances and Interim Floorplan Loan Advances
      will be funded in accordance with Administrative Agent’s
      procedures.

     

    7.11.           Requirements
      for Every Letter of Credit Request.  Only a written request
      (which may be mailed, sent via email from an authorized person with such email
      containing a signed PDF copy of such duly signed request, personally delivered
      or telecopied as provided in this Agreement) from a Borrowing Officer to Letter
      of Credit Issuer and Administrative Agent (if Administrative Agent and the
      Letter of Credit Issuer are not the same Person) or an electronic initiation
      over an online service provided by Letter of Credit Issuer (with a written
      copy
      to Administrative Agent if Administrative Agent and the Letter of Credit Issuer
      are not the same Person) that specifies the amount, requested issue date (which
      shall be a Business Day and in no event later than thirty days before the
      effective date of termination of the Aggregate Revolving Loan Commitment) and
      beneficiary of the requested Letter of Credit and other information necessary
      for its issuance shall be treated as a request for issuance of a Letter of
      Credit together with such Letter of Credit applications and reimbursement
      agreements as the Letter of Credit Issuer may reasonably request.

     

    7.12.           Exoneration
      of Administrative Agent and Lenders.  Neither Administrative
      Agent nor any Lender shall incur any liability to Borrower for treating a
      request that meets the express requirements of Sections 7.10, and 7.11 as a
      request for an Advance or as a request for the issuance of a Letter of Credit,
      as applicable, Letter of Credit Issuer and Administrative Agent (if
      Administrative Agent and the Letter of Credit Issuer are not the same Person),
      as the case may be, believes in good faith that the Person making the request
      is
      a Borrowing Officer of Borrowing Agent.  Neither Administrative Agent
      nor any Lender shall incur any liability to Borrower for failing to treat any
      such request as a request for an Advance or the issuance of a Letter of Credit,
      as applicable, the Letter of Credit Issuer or Administrative Agent (if
      Administrative Agent and the Letter of Credit Issuer are not the same Person)
      believes in good faith that the Person making the request is not a Borrowing
      Officer of Borrowing Agent.

     

    8.           Security.  As
      security for the payment and performance of the Loan Obligations, and also
      as
      security for the payment and performance of all Obligations to Administrative
      Agent, Borrower shall on the Execution Date and from time to time thereafter
      execute and deliver, or cause to be executed and delivered, to Administrative
      Agent such security agreements, mortgages and other security documents as they
      relate to the Collateral as reasonably requested by Administrative Agent from
      time to time, including, without limitation, the following documents, each
      in
      form and substance satisfactory to Administrative Agent and the Required
      Lenders:

     

    8.1.           Landlord
      Consents.  With respect to any real property leased (whether
      pursuant to a lease, bailment or otherwise) by Borrower or any other Covered
      Person, whether on, prior to or after the Effective Date, Borrower shall cause
      to be delivered to Administrative Agent such landlord consents and/or
      warehousemen’s letters and nondisturbance and attornment agreements as
      Administrative Agent shall reasonably request.

     

    8.2.           Mortgagee
      Consent Agreements.  With respect to any real property owned
      by Borrower or any other Covered Person, whether on, prior to or after the
      Effective Date if there shall be a mortgagee or other lienholder with respect
      to
      such real property, Borrower shall cause to be delivered to Administrative
      Agent
      such consents and nondisturbance and attornment agreements from each such
      mortgagee or lienholder as Administrative Agent shall reasonably
      request.

     

    
      
        
        

      

      
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    8.3.           Security
      Agreements.  Security agreements granting to Administrative
      Agent for the benefit of Lenders a first priority Security Interest under the
      UCC in all of the Accounts, Chattel Paper, Commercial Tort Claims, Deposit
      Accounts, Documents, Equipment, Fixtures, General Intangibles, Health Care
      Insurance Receivables, Farm Products, Goods, Instruments, Intellectual Property,
      Inventory, Investment Property, leases, Letter-of-Credit Rights, money,
      Supporting Obligations, and other personal property of Borrower, any other
      Covered Person and every Subsidiary of Borrower or any other Covered Person,
      all
      books and records pertaining to any of the foregoing, all proceeds, insurance
      proceeds, and products of any of the foregoing, and all collateral security
      and
      guaranties given by any Person with respect to any of the foregoing, whether
      now
      owned or hereafter acquired, and wherever located, subject only to Permitted
      Security Interests affecting such property (each being, a “Security
      Agreement”).

     

    8.4.           Stock
      Pledge Agreements.  Stock pledge agreements granting to
      Administrative Agent for the benefit of Lenders a first priority Security
      Interest in all of the capital stock and other securities (and all options
      and
      warrants therefor) of every Subsidiary of Borrower, now or hereafter issued
      and
      outstanding, and all proceeds thereof.

     

    8.5.           Collateral
      Assignments.  Each of the following Collateral Assignments
      from Borrower or any other Covered Person, each subject to no other Security
      Interests except Permitted Security Interests affecting the item
      assigned:

     

    8.5.1.          Intellectual
      Property Assignments.  Assignments assigning to
      Administrative Agent for the benefit of Lenders all of Borrower’s or such other
      Covered Person’s rights and interest in all Intellectual Property.

     

    8.5.2.          Control
      Agreements.  Control Agreements granting to the
      Administrative Agent for the benefit of Lenders control over all of Borrower’s
      rights and interest in all Blocked Accounts and Lockboxes other than employee
      benefit accounts and petty cash accounts.

     

    9.           Power
      of Attorney.   Each Borrower hereby authorizes (and shall
      cause each other Covered Person to do the same) Administrative Agent and
      irrevocably appoints Administrative Agent (acting by any of its officers) as
      such Borrower’s agent and attorney-in-fact (which appointment is coupled with an
      interest and is therefore irrevocable) to do any of the following until all
      of
      the Loan Obligations are fully and indefeasibly paid and satisfied in cash,
      the
      expiration or termination of all Letters of Credit and reduction of the Letter
      of Credit Exposure to zero, the Commitments are terminated, and the
      Administrative Agent and the Lenders have no other commitment to extend credit
      or make advances to or for the account of Borrower:

     

    9.1.   
          At any time while there is an Existing Default,
      (i) demand payment of any Account; (ii) enforce payment of any Account
      by legal proceedings or otherwise; (iii) exercise all of such Borrower’s
      rights and remedies in proceedings brought to collect any Account;
      (iv) sell or assign any Account upon such terms, for such amount and at
      such time or times as Administrative Agent deems advisable; (v) settle,
      adjust, compromise, extend or renew any Account; (vi) discharge and release
      any Account; (vii) prepare, file and sign such Borrower’s name on any proof
      of claim in bankruptcy or other similar documents against an Account Debtor;
      (viii) notify the postal authorities of any change of the address for
      delivery of such Borrower’s mail to any address designated by Administrative
      Agent and open and process all mail addressed to such Borrower;
      (ix) endorse such Borrower’s name on any verification of Accounts and
      notices thereof to Account Debtors; (x) make one or more Revolving Loan
      Advances, or Floorplan Loan Advances to pay the costs and expenses of any of
      the
      foregoing; and (xi) do anything that Administrative Agent deems necessary
      in its reasonable discretion to assure that the Loan Obligations are fully
      

     

    
      
        
        

      

      
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    and
      indefeasibly paid and satisfied in cash and that Borrower complies with each
      covenant and agreement contained herein and in the other Loan
      Documents.

     

    9.2.      
      At any time, (i) take control in any manner of any item of payment or
      proceeds of any Account; (ii) have access to any lockbox or postal box into
      which such Borrower’s mail is deposited; (iii) endorse such Borrower’s name
      upon any items of payment and deposit the same in the Cash Collateral Account
      and apply the proceeds thereof to the Loan Obligations as provided herein;
      (iv) endorse such Borrower’s name upon any chattel paper, document,
      instrument, invoice, or similar document or agreement relating to any Account
      or
      other item of the Collateral; and (v) execute in such Borrower’s name and
      on such Borrower’s behalf any financing statement or amendments thereto, or such
      mortgages, deeds of trust or other security documents deemed necessary or
      appropriate by Administrative Agent to assure the perfection or continued
      perfection of Administrative Agent’s Security Interests in the Collateral for
      the benefit of Lenders.

     

    The
      foregoing power of attorney and authorization shall be deemed irrevocable,
      but
      shall be automatically revoked only upon the full and indefeasible payment
      in
      cash of all of the Loan Obligations, there are no Letters of Credit outstanding
      and the Letter of Credit Exposure is irreversibly zero, the termination of
      the
      Commitments, and the Administrative Agent and the Lenders have no other
      commitment to extend credit or make advances to or for the account of
      Borrower.

     

    10.           Conditions
      of Lending.

     

    10.1.           Conditions
      to Initial Advance.  Lenders will have no obligation to fund
the initial Revolving Loan Advance, or the initial Floorplan Loan
      Advance or any
      subsequent Revolving Loan Advance, or Floorplan Loan Advance unless the
      following conditions are satisfied or waived by Administrative Agent and the
      Required Lenders:

     

    10.1.1.           Listed
      Documents and Other Items.  Administrative Agent shall have
      received on or before the Effective Date all of the documents and other items
      listed or described in Exhibit 10.1.1 hereto, with each being satisfactory
      to Lenders and (as applicable) duly executed and (also as applicable) sealed,
      attested, acknowledged, certified, or authenticated.

     

    10.1.2.           Financial
      Condition.  Lenders shall have determined to their
      satisfaction that the financial statements of Borrower for the periods ended
      March 31, 2007 and June 30, 2007 (the “Initial Financial Statements”), and the
      projections of Borrower’s financial condition, results of operations, and cash
      flow statements of Borrower for the period ending as of March 31, 2008 (the
      “Proforma Financial Statements”, as furnished to Administrative Agent and other
      information furnished to Administrative Agent by Borrower (i) for the
      periods ended on or before the Effective Date, fairly and accurately reflect
      the
      business and financial condition of Borrower, its cash flows and the results
      of
      its operations for such periods in accordance with GAAP, and (ii) for the
      periods that will end after the Effective Date, fairly forecast on a reasonable
      basis and in Borrower’s good faith the business and financial condition of
      Borrower, its cash flows, and the results of its operations for such periods
      in
      accordance with GAAP.

     

    10.1.3.           Intercreditor
      Agreements.  The Other Creditor Indebtedness Documents shall
      be executed and in form and substance satisfactory to Administrative Agent
      and
      the Required Lenders, and each Intercreditor Agreement shall be in form and
      substance satisfactory to Administrative Agent and the Required Lenders and
      shall have been executed and shall remain in effect.

     

    
      
        
        

      

      
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    10.1.4.           Subordination
      Agreements.  The Subordination Indebtedness Documents shall
      be executed and amended and in form and substance satisfactory to Administrative
      Agent and the Required Lenders, and each Subordination Agreement shall be in
      form and substance satisfactory to Administrative Agent and the Required Lenders
      and shall have been executed and shall remain in effect.

     

    10.1.5.           Default.  There
      shall be no Existing Default and no Default or Event of Default will occur
      as a
      result of such Advance being requested or made or the application of the
      proceeds thereof.

     

    10.1.6.           Perfection
      of Security Interests.  Every Security Interest required to
      be granted by Borrower to Administrative Agent under Section 8 shall have
      been perfected and shall be, except for Permitted Security Interests, as
      otherwise satisfactory to Lenders, a first priority Security
      Interest.

     

    10.1.7.           Representations
      and Warranties.  The Representations and Warranties shall be
      true and correct.

     

    10.1.8.           Material
      Adverse Change.  Since the date of the last audited Financial
      Statements delivered to Administrative Agent for the period ending March 31,
      2007, there shall not have been any change which has or is reasonably likely
      to
      have a Material Adverse Effect on any Covered Person.

     

    10.1.9.           Pending
      Material Proceedings.  There shall be no pending Material
      Proceedings.

     

    10.1.10.         Payment
      of Fees.  Borrower shall have paid and reimbursed to
      Administrative Agent and the Lenders all fees, costs and expenses that are
      payable or reimbursable to Administrative Agent and the Lenders hereunder on
      or
      before the Effective Date.

     

    10.1.11.         Other
      Items.  Administrative Agent shall have received such other
      consents, approvals, opinions, certificates, documents or information as it
      reasonably deems necessary or shall have issued an Approval as
      necessary.

     

    10.2.        Conditions
      to Subsequent Advances.  Lenders will have no obligation to
      fund any Advance after the initial Revolving Loan Advance and the initial
      Floorplan Loan Advance, unless the following conditions are satisfied or waived
      by Administrative Agent and the Required Lenders:

     

    10.2.1.           General
      Conditions.  All of the conditions to the initial Advances in
      Section 10.1 (except the condition in Section 10.1.7) shall have been
      and shall remain satisfied.

     

    10.2.2.           Representations
      and Warranties.  The Representations and Warranties are then
      true, with such exceptions as have been disclosed to Lenders in writing by
      Borrower or each Guarantor from time to time and are satisfactory to the
      Required Lenders, and will be true as of the time of such Advance, as if then
      made with such exceptions.

     

    10.2.3.           Approvals.  With
      regards to a Floorplan Loan Advance or Interim Floorplan Loan Advance, an
      Approval has been issued by Administrative Agent.

     

    
      
        
        

      

      
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    10.2.4.           Default.  There
      shall be no Existing Default and no Default or Event of Default will occur
      as a
      result of such Advance being requested or made or the application of the
      proceeds thereof.

     

    10.3.       Conditions
      to Issuance of Letters of Credit.  As conditions precedent to
      the issuance of any Letter of Credit unless any of the following conditions
      are
      satisfied or waived by Administrative Agent and the Required
      Lenders:

     

    10.3.1.           Letter
      of Credit Application/Reimbursement Agreement.  Borrower
      shall have executed and delivered to Letter of Credit Issuer a letter of credit
      application/reimbursement agreement satisfactory to Letter of Credit Issuer
      and
      Administrative Agent (if Administrative and the Letter of Credit Issuer are
      not
      the same Person) under which Borrower further evidences its obligation to
      reimburse to Letter of Credit Issuer on demand the amount of each draw on such
      Letter of Credit as provided in Section 6.4, together with interest from the
      date of the draw at the rate provided in Section 4.2 and (without duplication)
      all reasonable expenses incurred by Letter of Credit Issuer in connection with
      such Letter of Credit.

     

    10.3.2.           No
      Prohibitions.  No order, judgment or decree of any
      Governmental Authority shall exist which purports by its terms to enjoin or
      restrain Letter of Credit Issuer, Administrative Agent, or any other Lender
      from
      issuing such Letter of Credit, and no Law or request or directive (whether
      or
      not having the force of law) from any Governmental Authority with jurisdiction
      over Letter of Credit Issuer, Administrative Agent, or any other Lender shall
      exist which prohibits, or requests that Letter of Credit Issuer, Administrative
      Agent, or any other Lender refrain from, the issuance of letters of credit
      generally or such Letter of Credit in particular, or imposes upon Letter of
      Credit Issuer, Administrative Agent,  or any other Lender with respect
      to such Letter of Credit any restriction or reserve or capital requirement
      (for
      which Letter of Credit Issuer or any other Lender is not otherwise compensable
      by Borrower hereunder).

     

    10.3.3.           Representations
      and Warranties.  The Representations and Warranties are then
      true and correct, and as of the time of the issuance of such Letter of Credit
      will be true and correct with such exceptions as have been disclosed to Lenders
      in writing by Borrower or each Guarantor from time to time and are satisfactory
      to the Required Lenders, and will be true as of the time of the issuance of
      such
      Letter of Credit, as if then made with such exceptions.

     

    10.3.4.           No
      Material Proceedings.  No Material Proceedings are pending
      or, to the best knowledge of Borrower, threatened, against Borrower or any
      Covered Person.

     

    10.3.5.           No
      Default.  No Event of Default and no Default has occurred and
      is continuing or Event of Default is reasonably likely to occur as a result
      of
      such Letter of Credit being issued or a draw thereon being made or
      paid.

     

    10.3.6.           Other
      Conditions.  All of the conditions to the initial Advances in
      Section 10.1 (except the conditions in Section 10.1.7) shall have been and
      shall
      remain satisfied.

     

    11.           Representations
      and Warranties.  Except as otherwise described in the
      Disclosure Schedule attached hereto as Exhibit 11, Borrower represents and
      warrants to Administrative Agent, Lenders and the Letter of Credit Issuer,
      as
      follows:

     

    
      
        
        

      

      
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    11.1.           Organization
      and Existence.  Each Covered Person is duly organized and
      existing in good standing under the Laws of the state of its organization and
      is
      duly qualified to do business and is in good standing in every state where
      the
      nature or extent of its business or properties require it to be qualified to
      do
      business, except where the failure to so qualify will not have a Material
      Adverse Effect on any Covered Person.  Each Covered Person has the
      power and authority to own its properties and carry on its business as now
      being
      conducted.  Section 11.1 of the Disclosure Schedule, as updated
      from time to time as permitted herein, set forth (a) the Borrower’s and each
      other Covered Person’s jurisdiction of organization, (b) the location of the
      Borrower’s and each other Covered Person’s chief executive office, (c) the
      Borrower’s and each other Covered Person’s exact legal name as it appears on its
      organizational documents, (d) all prior legal names and trade names of each
      Borrower and each other Covered Person since January 1, 2001, (e) the Borrower’s
      and each other Covered Person’s organizational identification number (to the
      extent the Company’s and each other Loan Party’s is organized in a jurisdiction
      which assigns such numbers), and (f) the Borrower’s and each other Covered
      Person’s federal employer identification number.

     

    11.2.           Authorization.  Each
      Covered Person is duly authorized to execute and perform every Loan Document
      to
      which such Covered Person is a party, and Borrower is duly authorized to borrow
      hereunder, and this Agreement and the other Loan Documents have been duly
      authorized by all requisite corporate action (or in the case of Covered Persons
      which are not corporations, other organizational action) of each Covered
      Person.  No consent, approval or authorization of, or declaration or
      filing with, any Governmental Authority, and no consent of any other Person,
      is
      required in connection with any Covered Person’s execution, delivery or
      performance of this Agreement and the other Loan Documents to which it is a
      party, except for those already duly obtained.

     

    11.3.           Due
      Execution.  Every Loan Document to which a Covered Person is
      a party has been executed on behalf of such Covered Person by a Person duly
      authorized to do so.

     

    11.4.           Enforceability
      of Obligations.  Each of the Loan Documents to which a
      Covered Person is a party constitutes the legal, valid and binding obligation
      of
      such Covered Person, enforceable against such Covered Person in accordance
      with
      its terms, except to the extent that the enforceability thereof against such
      Covered Person may be limited by bankruptcy, insolvency, reorganization,
      moratorium or similar Laws affecting creditors’ rights generally or by equitable
      principles of general application.

     

    11.5.           Burdensome
      Obligations.  No Covered Person is a party to or bound by any
      Contract or is subject to any provision in the Charter Documents of such Covered
      Person which would, if performed by such Covered Person, result in a Default
      or
      Event of Default either immediately or upon the elapsing of time.

     

    11.6.           Legal
      Restraints.  The execution and performance of any Loan
      Document by a Covered Person does not and will not violate or constitute a
      default under the Charter Documents of such Covered Person, any Material
      Agreement of such Covered Person, or any Material Law, and does not and will
      not, except as expressly contemplated or permitted in this Agreement, result
      in
      any Security Interest being imposed on any of such Covered Person’s
      property.

     

    11.7.           Labor
      Contracts and Disputes.  There is no collective bargaining
      agreement or other labor contract covering employees of a Covered
      Person.  To Borrower’s knowledge, no union or other labor organization
      is seeking to organize, or to be recognized as, a collective bargaining unit
      of
      employees of a Covered Person.  There is no pending or, to Borrower’s
      knowledge, threatened, 

     

    
      
        
        

      

      
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    strike,
      work stoppage or other material labor dispute against or affecting any Covered
      Person or its employees, which has or could reasonably likely to have a Material
      Adverse Effect.

     

    11.8.           No
      Material Proceedings.  There are no Material Proceedings
      pending or, to the knowledge of Borrower, threatened.

     

    11.9.           Material
      Licenses.  All Material Licenses have been obtained or exist
      for each Covered Person.

     

    11.10.         Compliance
      with Material Laws.  Each Covered Person is in compliance
      with all Material Laws.  Without limiting the generality of the
      foregoing:

     

    11.10.1.         General
      Compliance with Environmental Laws.  The operations of every
      Covered Person comply with all applicable Environmental Laws except where the
      failure to be in compliance would not reasonably be likely to give rise to
      a
      Material Adverse Effect.

     

    11.10.2.         Proceedings.  None
      of the operations of any Covered Person are the subject of any judicial or
      administrative complaint, order or proceeding alleging the violation of any
      applicable Environmental Laws which could reasonably be likely to give rise
      to a
      Material Adverse Effect.

     

    11.10.3.         Investigations
      Regarding Hazardous Materials.  To Borrower’s knowledge, none
      of the operations of any Covered Person are the subject of investigation by
      any
      Governmental Authority regarding the improper transportation, storage, disposal,
      generation or release into the environment of any Hazardous Material, the
      results of which have or are reasonably likely to have a Material Adverse Effect
      on such Covered Person, or reduce materially the value of the
      Collateral.

     

    11.10.4.         Notices
      and Reports Regarding Hazardous Materials.  No notice or
      report under any Environmental Law indicating a past or present spill or release
      into the environment of any Hazardous Material has been filed within the four
      years ending on the Execution Date, or is required to be filed, by any Covered
      Person.

     

    11.10.5.         Hazardous
      Materials on Real Property.  No Covered Person has at any
      time, and to Borrower’s knowledge, no other Person has at any time during any
      Covered Person’s occupancy of such real property, transported, stored, disposed
      of, generated or released any Hazardous Material on the surface, below the
      surface, or within the boundaries of any real property owned or operated by
      such
      Covered Person or any improvements thereon in violation of applicable
      Law.  No property of any Covered Person is subject to a Security
      Interest in favor of any Governmental Authority for any liability under any
      Environmental Law or damages arising from or costs incurred by such Governmental
      Authority in response to a spill or release of Hazardous Material into the
      environment.

     

    11.10.6.         Environmental
      Property Transfer Acts.  No environmental property transfer
      acts are applicable to the transactions contemplated by this Agreement and
      each
      Covered Person has provided all notices and obtained all necessary environmental
      permit transfers and consents, if any, required in order to consummate the
      transactions contemplated by this Agreement, to perfect Administrative Agent’s
      Security Interests for the benefit of Lenders and to operate such Covered
      Person’s business as presently or proposed to be operated.

     

    
      
        
        

      

      
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    11.11.     Other
      Names.  Except as disclosed in the Disclosure Schedules or in
      writing to the Administrative Agent from time to time with no less than thirty
      (30) days prior written notice to Administrative Agent (unless
      Administrative Agent agrees in writing to a shorter period) (i) no Covered
      Person has used any name other than the full name which identifies such Covered
      Person in this Agreement, and (ii) the only trade name or style under which
      a Covered Person sells Inventory or creates Accounts, or to which instruments
      in
      payment of Accounts are made payable, is the name which identifies such Covered
      Person in this Agreement.

     

    11.12.     Prior
      Transactions.  Except as described in section 11.12 of the
      Disclosure Schedule, Since January 1, 2001, no Covered Person has 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 outside of the
      ordinary course of business.

     

    11.13.     Capitalization.  Each
      Covered Person’s authorized capital stock, partnership interests and membership
      interests and issued and outstanding capital stock, partnership interests and
      membership interests is as described in section 11.13 of the Disclosure
      Schedule; provided, however, Borrower shall update the Disclosure Schedule
      with
      respect to any newly-created Subsidiary (in each case, without the necessity
      of
      obtaining Required Lender consent but with obtaining the prior written consent
      of the Administrative Agent, and Borrower shall comply with the terms of Section
      14.19 hereof); and all issued and outstanding shares, partnership interests
      and
      membership interests of each Covered Person are validly issued and outstanding,
      fully paid and non-assessable, and are owned beneficially and of record by
      the
      Persons listed.

     

    11.14.      Solvency.  Each
      Borrower is Solvent prior to and after giving effect to, the making of each
      Advance and after giving effect to the contribution provisions of Section
      16.3.9.

     

    11.15.      Projections. 
      The
      projections of Borrower’s financial condition, results of operations, and cash
      flow for the period through March 31, 2008, a copy of which have been delivered
      to Administrative Agent, represent Borrower’s good faith estimate of Borrower’s
      future financial performance for the periods set forth therein.  Such
      projections have been prepared on the basis of the assumptions set forth therein
      reasonably believed by Borrower in good faith to be fair and
      reasonable.

     

    11.16.      Financial
      Statements.  The Financial Statements are complete and
      correct in all material respects, have been prepared in accordance with GAAP,
      and fairly reflect the financial condition, results of operations and cash
      flows
      of the Persons covered thereby as of the dates and for the periods stated
      therein.

     

    11.17.      No
      Change in Condition.  Since the date of the initial Financial
      Statements and the Financial Statements delivered to Lenders as required herein,
      there has been no change which has or is reasonably likely to have a Material
      Adverse Effect.

     

    11.18.      No
      Defaults.  No Covered Person is in breach or violation under
      any Material Agreement or any Material Obligation of such Covered
      Person.  No Default has occurred which is continuing and no Event of
      Default has occurred and is continuing.

     

    11.19.      Investments.  No
      Covered Person has any Investments in other Persons except Permitted
      Investments.

     

    11.20.      Indebtedness.  No
      Covered Person has any Indebtedness except existing Permitted
      Indebtedness.

     

    
      
        
        

      

      
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    11.21.      Indirect
      Obligations.  No Covered Person has any Indirect Obligations
      except existing Permitted Indirect Obligations.

     

    11.22.      Encumbrances.  None
      of the real property purported to be owned by a Covered Person is subject to
      any
      Encumbrances except Permitted Encumbrances.

     

    11.23.      Capital
      Leases.  No Covered Person has an interest as a lessee under
      any Capital Leases other than Capital Leases that are Permitted
      Indebtedness.

     

    11.24.      Other
      Creditor Indebtedness; Intercreditor Documents; Subordinated  ndebtedness.  There
      is no breach or default with respect to the Other Creditor Indebtedness, and
      the
      Other Creditor Indebtedness has been incurred in accordance with the terms
      of
      this Agreement.  There is no breach or default by or attributable to a
      Covered Person of any obligation set forth in any Intercreditor Agreement or
      any
      Other Creditor Indebtedness Document.  There is no breach or default
      with respect to the Subordinated Indebtedness, and the Subordinated Indebtedness
      has been incurred in accordance with the terms of this
      Agreement.  There is no breach or default by or attributable to any
      holder of the Subordinated Indebtedness under the Subordination
      Agreement.

     

    11.25.      Tax
      Liabilities; Governmental Charges.  Each Covered Person has
      filed or caused to be filed all tax reports and returns required to be filed
      by
      it with any Governmental Authority, except where extensions have been properly
      obtained.  Each Covered Person has paid or made adequate provision for
      payment of all Taxes of such Covered Person, except Taxes which are being
      diligently contested in good faith by appropriate proceedings and as to which
      such Covered Person has established adequate reserves in conformity with
      GAAP.  No Security Interest for any such Taxes has been filed and no
      claims are being asserted with respect to any such Taxes which, if adversely
      determined, has or is reasonably likely to have a Material Adverse Effect on
      such Covered Person.  There are no material unresolved issues
      concerning any liability of a Covered Person for any Taxes which, if adversely
      determined, has or is reasonably likely to have a Material Adverse Effect on
      such Covered Person.

     

    11.26.      Pension
      Benefit Plans.  No Borrower or an ERISA Affiliate maintains,
      sponsors, or contributes to any Pension Benefit Plan, or, during the past 5
      years, has maintained, sponsored, or contributed to any Pension Benefit
      Plan.

     

    11.27.      Welfare
      Benefit Plans.  No Covered Person or ERISA Affiliate of any
      Covered Person maintains a Welfare Benefit Plan that has a liability which,
      if
      enforced or collected, has or is reasonably likely to have a Material Adverse
      Effect on any Covered Person.  Each Covered Person and each ERISA
      Affiliate of any Covered Person has complied in all respects with the applicable
      requirements of Section 4980B of the Code pertaining to continuation coverage
      as
      mandated by COBRA, except any failure that does not have or is reasonably likely
      not to have a Material Adverse Effect.

     

    11.28.      Retiree
      Benefits.  No Covered Person or ERISA Affiliate of such
      Covered Person has an obligation to provide any Person with any medical, life
      insurance, or similar benefit following such Person’s retirement or termination
      of employment (or to such Person’s beneficiary subsequent to such Person’s
      death) other than (i) such benefits provided to Persons at such Person’s
      sole expense and (ii) obligations under COBRA.

     

    
      
        
        

      

      
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    11.29.      Distributions/Redemptions.  No
      Distribution/Redemptions has been declared, paid or made upon or in respect
      of
      any capital stock or other securities of Borrower on and after the Execution
      Date, except as expressly permitted hereby.

     

    11.30.      Real
      Property.  Section 11.30 of the Disclosure Schedule
      contains a correct and complete list of (i) the street addresses and a
      general description of all real property owned by each Covered Person, and
      (ii) a list of all leases, subleases, and licenses of real property by each
      Covered Person, with such Covered Person identified for each as the lessee,
      sublessee, licensee, lessor, sublessor, or licensor, as is the case, together
      with the street addresses and a general description of the real property
      involved and the names and addresses of the other parties to such leases,
      subleases, and licenses.  Each of such leases, subleases, and licenses
      is valid and enforceable in accordance with its terms and is in full force
      and
      effect, and no default by such Covered Person, or to Borrower’s knowledge, any
      other party to any such lease, sublease, or license exists which could
      reasonably be likely to have a Material Adverse Effect.  To Borrower’s
      knowledge no rental payment for any of the properties listed on
      section 11.30 of the Disclosure Schedule materially exceeds a fair market
      rental rate for such property.

     

    11.31.      State
      of Collateral and other Property.  Each Covered Person has
      good and marketable or merchantable title to all real and personal property
      purported to be owned by it or reflected in the Financial Statements, except
      for
      personal property sold or leased in the ordinary course of business after the
      date of the Initial Financial Statements as permitted by and in accordance
      with
      the terms of the Loan Documents.  There are no Security Interests on
      any of the property purported to be owned by any Covered Person, including
      the
      Collateral, except Permitted Security Interests.  Each item of
      Inventory purported to be owned or leased by a Covered Person is in good
      operating condition and repair and is suitable for the use to which it is
      customarily put by its owner, ordinary wear and tear and damage by acts of
      God
      excepted.  Without limiting the generality of the
      foregoing:

     

    11.31.1.         Accounts.  With
      respect to each Account scheduled, listed or referred to in reports submitted
      by
      any Covered Person to Administrative Agent pursuant to the Loan Documents,
      except as disclosed therein: (i) the Account arose from a bona fide
      transaction completed in accordance with the terms of any documents pertaining
      to such transaction; (ii) the Account is not evidenced by a judgment and
      there is no material dispute respecting it; (iii) the amount of the Account
      as shown on the applicable Covered Person’s books and records and all invoices
      and statements which may be delivered to Administrative Agent with respect
      thereto are owing to the applicable Covered Person and are not in any way
      contingent; (iv) there are no known set-offs, counterclaims or disputes
      existing or asserted with respect to the Account and the applicable Covered
      Person has not made any agreement with any Account Debtor for any deduction
      therefrom except a discount or allowance allowed by the applicable Covered
      Person in the ordinary course of its business for prompt payment; (v) there
      are no facts, events or occurrences which in any way impair the validity or
      enforcement of the Account or tend to reduce the amount payable thereunder
      as
      shown on the applicable Covered Person’s books and records and all invoices and
      statements delivered to Administrative Agent with respect thereto; (vi) the
      Account is assignable; (vii) the Account arose in the ordinary course of
      the applicable Covered Person’s business; (viii) to Borrower’s knowledge, the
      Account Debtor with respect to the Account has the capacity to contract;
      (ix) the services furnished, goods sold and/or goods leased giving rise to
      the Account are not subject to any Security Interest except the perfected
      Security Interest granted to Administrative Agent for the benefit of Lenders
      and
      except the Permitted Security Interests; (x) there are no proceedings or
      actions which are pending or to Borrower’s knowledge threatened 

     

    
      
        
        

      

      
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    against
      the Account Debtor with respect to the Account; and (xi) no payments have
      been or will be permitted to be made on the Account except payments promptly
      delivered to the Blocked Accounts at the financial institutions as provided
      in
      this Agreement.

     

    11.31.2.         Inventory.  With
      respect to Inventory of each Borrower:  (i) such Inventory
      (except for Inventory in transit or in the possession of such Covered Person’s
      customers) is located at one or another of the premises listed in
      section 11.31.2 of the Disclosure Schedule as being a location of such
      Borrower’s Inventory; (ii) the applicable Covered Person has good and
      merchantable title to such Inventory or a good and valid leasehold interest
      as
      lessee to such Inventory, subject to no Security Interest whatsoever except
      for
      the perfected Security Interest granted to Administrative Agent for the benefit
      of Lenders and except for Permitted Security Interests; (iii) such is of
      good and merchantable quality, free from any material defects; (iv) such
      Inventory is not subject to any licensing, patent, royalty, trademark, trade
      name or copyright agreements with any third parties; and (v) the completion
      of manufacture and sale, lease, or other disposition of such Inventory by
      Administrative Agent or Lenders following an Event of Default shall not require
      the consent of any Person and shall not constitute a breach or default under
      any
      contract or agreement to which any Covered Person is a party or to which the
      Inventory is subject.

     

    11.31.3.         Equipment.  With
      respect to each Covered Person’s equipment: (i) such Covered Person has
      good and marketable title thereto; (ii) none of such equipment is subject
      to any Security Interests except for the perfected Security Interest granted
      to
      Administrative Agent for the benefit of Lenders pursuant hereto and except
      for
      Permitted Security Interests; (iii) such equipment (except for equipment in
      transit) is located at one or another of the premises listed in
      section 11.31.2 of the Disclosure Schedule as a location of such Covered
      Person’s equipment; and (iv) such equipment is of good and merchantable
      quality, free from any material defects, ordinary wear and tear and damage
      by
      acts of God excepted.

     

    11.31.4.         Intellectual
      Property.  With respect to the Intellectual Property of the
      Covered Persons: (i) section 11.31.4 of the Disclosure Schedule
      contains a complete and correct list of all of each Covered Person’s
      Intellectual Property, (ii) the Covered Person listed on the Disclosure
      Schedule as the owner thereof owns all right, title and interest in, under
      and
      to such Intellectual Property, subject to no licenses or any interest therein
      or
      other agreements relating thereto, except for the Intellectual Property
      Assignments; (iii) none of such Intellectual Property is subject to any
      pending or, to such Covered Person’s knowledge, threatened challenge;
      (iv) to the knowledge of such Covered Person, such Covered Person has not
      committed any patent, trademark, trade name, service mark or copyright
      infringement, and the present conduct  of such Covered Person’s
      business does not infringe any patents, trademarks, trade name rights, service
      marks, copyrights, publication rights, trade secrets or other proprietary rights
      of any Person; and (v) there are no claims or demands of any Person
      pertaining to, or any proceedings which are pending or, to the knowledge of
      such
      Covered Person, threatened, which challenge such Covered Person’s rights in
      respect of any proprietary or confidential information or trade secrets used
      in
      the conduct of such Covered Person’s business.

     

    11.31.5.     Documents,
      Instruments and Chattel Paper.  All documents, instruments
      and chattel paper describing, evidencing or constituting Collateral, and all
      signatures and endorsements thereon by a Covered Person are complete, valid,
      and
      genuine as to Borrower and, to Borrower’s knowledge, as to third parties, and
      all goods evidenced by 

     

    
      
        
        

      

      
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    such
      documents, instruments and chattel paper are owned by a Covered Person free
      and
      clear of all Security Interests other than Permitted Security
      Interests.

     

    11.32.     Chief
      Place of Business; Locations of Collateral.  As of the
      Execution Date,

     

    11.32.1.    the
      chief executive office and principal place of business of each Covered Person
      is
      identified in section 11.32.1 of the Disclosure Schedule and the location
      of the books and records of each Covered Person, and all of such Covered
      Person’s chattel paper and all records of Accounts, are located only at the
      places listed and so identified in section 11.32.1 of the Disclosure
      Schedule;

     

    11.32.2.    the
      States in which any Covered Person is qualified to conduct its business and
      other foreign jurisdictions if any in which any Covered Person conducts its
      business are listed and so identified in section 11.32.2 of the Disclosure
      Schedule; and

     

    11.32.3.    all
      of the Collateral is located within one or more of the locations listed in
      section 11.31.2 of the Disclosure Schedule, provided, however, if any
      Collateral will remain outside of any location listed on section 11.31.2 of
      the Disclosure schedule for longer than 30 consecutive days, Borrower
      shall, prior to the expiration of such 30-day period, give written notice to
      Administrative Agent of such event as required under
      Section 13.23.

     

    11.33.   
      Warranties and
      Representations-Inventory.  For each item of Inventory,
      Borrower represents and warrants to Administrative Agent and each of the Lenders
      that at all times:  (a) all Inventory, except as otherwise
      provided in Section 11.32.3, will be kept only at the locations indicated on
      section 11.31.2 of the Disclosure Schedule; (b) Borrower now keeps and will
      keep correct and accurate records itemizing and describing the kind, type,
      quality and quantity of Inventory, Borrower’s cost therefor and the selling
      price thereof and/or the rental/lease rate thereof, the daily withdrawals
      therefrom and the additions thereto; (c) Inventory not on rent are not and
      will not be stored with a bailee, repairman, warehouseman or similar party
      without Administrative Agent’s prior written consent, and if Administrative
      Agent consents, Borrower will, concurrently with delivery to such party, cause
      any such party to issue and deliver to Administrative Agent, in form acceptable
      to Administrative Agent, warehouse receipts, in Administrative Agent’s name
      evidencing the storage of such Inventory, and waivers of warehouseman’s liens in
      favor of Administrative Agent; (d) Borrower will timely pay or cause to be
      timely paid all taxes, rents, business taxes, and other charges relating to
      the
      premises where the Inventory is located which Borrower is contractually or
      legally obligated to pay; and (e) a landlord consent of the type described
      in
      Section 8.1, satisfactory to Administrative Agent, has been obtained for its
      headquarters location, and each location in which Borrower keeps Inventory
      with
      a value in excess of $50,000 or any of its material books and
      records.

     

    11.34.  
        No Negative Pledges.  No Covered
      Person is a party to or bound by any Contract which prohibits the creation
      or
      existence of any Security Interest upon or assignment or conveyance of any
      of
      the Collateral or any other asset (regardless of type or nature) of any Covered
      Person, except as expressly set forth on Section 11.34 of the Disclosure
      Schedule.

     

    11.35.   
       Security Documents.

     

    11.35.1.    Security
      Agreements.  Each Security Agreement is effective to grant to
      Administrative Agent for the pro-rata benefit of Lenders an enforceable Security
      Interest in the Personal Property Collateral described therein.  Upon
      appropriate filing (as to all Personal Property Collateral in which
      a  Security Interest may be perfected under the 

     

    
      
        
        

      

      
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    applicable
      state’s UCC by filing a financing statement or statements) or Administrative
      Agent’s taking possession (as to items of the Personal Property Collateral of
      which a secured party must take possession in order to perfect a Security
      Interest under the applicable state’s UCC), Administrative Agent will have a
      fully perfected Security Interest in the Personal Property Collateral described
      in each Security Agreement, subject only to Permitted Security Interests
      affecting such Personal Property Collateral.

     

    11.35.2.    Collateral
      Assignments.

     

    11.35.2.1.    Control
      Agreements.  The control agreements are effective to grant to
      Administrative Agent for the benefit of Lenders an enforceable first priority
      Security Interest in the Blocked Accounts and the other accounts specified
      therein.

     

    11.35.2.2.    Intellectual
      Property Assignments.  Each Intellectual Property Assignment
      is effective to grant to Administrative Agent for the benefit of Lenders an
      enforceable first priority Security Interest in all the Intellectual Property
      described therein, subject only to Permitted Security Interests affecting such
      Intellectual Property.

     

    11.35.2.3.    Stock
      Pledge Agreement.  Each Stock Pledge Agreement is effective
      to grant to Administrative Agent for the benefit of Lenders an enforceable
      first
      priority Security Interest in all the stock and other securities described
      therein.

     

    11.36.    
       S Corporation.  There is no election
      for any Covered Person in effect under Section 1362(a) of the Code to be treated
      as an S Corporation as defined in Section 1361(a) of the Code.

     

    11.37.   
       Subsidiaries and Affiliates.  Borrower
      has no Subsidiaries and has no Affiliates (excluding portfolio companies of
      the
      Borrowers’ Major Shareholders, and individual directors and officers), except
      those Persons listed in section 11.37 of the Disclosure Schedule; provided,
      however, Borrower shall update the Disclosure Schedule with respect to a new
      Subsidiary created any newly-created Subsidiary (in each case, without the
      necessity of obtaining Required Lender consent but with obtaining the prior
      written consent of the Administrative Agent) and Borrower shall comply with
      the
      terms of Section 14.19 hereof.  MTM Technologies, Inc. has no
      Subsidiaries that are not Wholly-Owned Subsidiaries.  As of the
      Effective Date, except as set forth in section 11.37 of the Disclosure Schedule
      and except for employee or director stock option programs, employee stock
      purchase plans, benefit plans, and restricted stock programs, there are no
      pre-emptive or other outstanding rights, options, warrants, conversion rights
      or
      other similar agreements or understandings for the purchase or acquisition
      of
      any Capital Securities of any Borrower or other Covered Person.

     

    11.38.    Bank
      Accounts and Lockboxes.  No Covered Person has any lockbox
      other than the Lockboxes allowed or required hereunder.  No Covered
      Person has any bank accounts other than the bank accounts allowed or required
      hereunder.  All bank accounts maintained by any Covered Person with
      any bank or other financial institution are described in section 11.38 of
      the Disclosure Schedule, as well as such other bank accounts used solely for
      employee benefit purposes which such accounts may be opened by Borrower from
      time to time.

     

    11.39.    Margin
      Stock.  No Covered Person is engaged or will engage,
      principally or as one of its important activities, in the business of extending
      credit for the purpose of purchasing or carrying margin stock (within the
      meaning of Regulation U), and no part of the proceeds of any Advance

     

    
      
        
        

      

      
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    will
      be
      used to purchase or carry any such margin stock or to extend credit to others
      for the purpose of purchasing or carrying any such margin stock or for any
      purpose which violates, or which would be inconsistent with, the provisions
      of
      Regulation U.  None of the transactions contemplated by any of the
      Loan Documents will violate Regulations T, U or X of the FRB.

     

    11.40.   
      Securities Matters.  No proceeds of any
      Advance will be used to acquire any security in any transaction which is subject
      to Sections 13 and 14 of the Securities Exchange Act of 1934.

     

    11.41.   
      Investment Company Act, Etc.  No Covered
      Person is an investment company  registered or required to be
      registered under the Investment Company Act of 1940, or a company controlled
      (within the meaning of such Investment Company Act) by such an investment
      company or an affiliated person of, or promoter or principal underwriter for,
      an
      investment company, as such terms are defined in the Investment Company Act
      of
      1940.  No Covered Person is subject to regulation under the Public
      Utility Holding Company Act of 2005, the Federal Power Act, the Interstate
      Commerce Act or any other Law limiting or regulating its ability to incur
      Indebtedness for money borrowed.

     

    11.42.   
       No Material Misstatements or
      Omissions.  Neither the Loan Documents, any of the Financial
      Statements nor any statement, list, certificate or other information furnished
      or to be furnished by Borrower or any other Covered Person to Administrative
      Agent or Lenders in connection with the Loan Documents or any of the
      transactions contemplated thereby contains any untrue statement of a material
      fact, or omits to state a material fact necessary to make the statements
      therein, in the light of the circumstances in which it was made, not
      misleading.  To Borrower’s knowledge, Borrower has disclosed to
      Administrative Agent and Lenders everything regarding the business, operations,
      property, financial condition, or business prospects of itself and every Covered
      Person that has or is reasonably likely to have a Material Adverse Effect on
      any
      Covered Person.

     

    11.43.  
      Filings.  Since May 2004, All registration
      statements, reports, proxy statements and other documents, if any, required
      to
      be filed by Borrower with the Securities and Exchange Commission pursuant to
      the
      Securities Act of 1933, and the Securities Exchange Act of 1934, have been
      filed, and such filings are complete and accurate in all material respects
      and
      contain no untrue statements of material fact or omit to state any material
      facts required to be stated therein or necessary in order to make the statements
      therein not misleading.

     

    11.44.  Broker’s
      Fees.  No broker or finder is entitled to compensation for
      services rendered with respect to the transactions contemplated by this
      Agreement.

     

    11.45.   Eligibility
      of Collateral.  Each Account which Borrower, expressly or by
      implication, requests Administrative Agent to classify as an Eligible Account
      will, as of the time when such request is made, conform in all respects to
      the
      requirements of such classification set forth in the definition of Eligible
      Accounts herein.

     

    11.46.   Loans
      to
      Shareholders.  No loans or advances have been made to any
      shareholder of any Borrower by any Borrower which are outstanding, nor has
      any
      shareholder of any Borrower incurred any Indebtedness to any Borrower which
      are
      outstanding.

     

    11.47.   No
      Improper
      Payment or Influence.  Neither Borrower nor any other Covered
      Person has directly or indirectly paid or delivered any fee, commission or
      other
      money or property, or engaged in any lobbying, influencing or other behavior,
      however characterized, to any agent, government official, regulatory body,
      governmental agency or other Person, in the United States or any other country,
      related to the business or operations of the Borrower or any other Covered
      

     

    
      
        
        

      

      
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    Person,
      that the Borrower and each other Covered Person knows or has reason to believe
      to have been illegal under any federal, state, or local law of the United States
      or any other country having jurisdiction, or to have been for the purpose of,
      and to have had the effect of, inducing or encouraging the breach by the
      recipient thereof of any legal duties, whether as an employee or otherwise
      to
      another Person.

     

    11.48.   Foreign
      Enemies and Regulations.  The use of the proceeds of the
      Loans as contemplated by this Agreement will not violate (A) any regulations
      promulgated or administered by the Office of Foreign Assets Control, United
      States Department of the Treasury, including without limitation, the Foreign
      Assets Control Regulations, the Transaction Control Regulations, the Cuban
      Assets Control Regulations, the Foreign Funds Control Regulations, the Iranian
      Assets Control Regulations, the Nicaraguan Trade Control Regulations, the South
      African Transaction Regulations, the Iranian Transactions Regulations, the
      Iraqi
      Sanctions Regulations, the Soviet Gold Coin Regulations, the Panamanian
      Transaction Regulations or the Libyan Sanctions Regulations of the United States
      Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as amended, (B) the
      Trading with the Enemy Act, as amended, (C) Executive Orders 8389, 9095, 9193,
      12543 (Libya), 12544 (Libya), 12722 or 12724 (Iraq), 12775 or 12779 (Haiti),
      or
      12959 (Iran), as amended, of the President of the United States or (D) any
      rule,
      regulation or executive order issued or promulgated pursuant to the laws or
      regulations described in the foregoing clauses (A) -(C).

     

    12.           Modification
      and Survival of Representations.  Borrower may at any time
      after the initial Advances are made propose to Lenders in writing to modify
      the
      Representations and Warranties in Section 11, and any other representation
      or warranty made in any certificate, report, opinion or other document delivered
      by Borrower pursuant to the Loan Documents.  If the proposed
      modifications are satisfactory to the Administrative Agent as evidenced by
      its
      written assent thereto, then such representations and warranties shall be deemed
      and treated as so modified, but only as of the date of Borrower’s written
      modification proposal.  If such proposed modifications are not
      satisfactory to the Administrative Agent, then such proposed modifications
      shall
      not be deemed or treated as modifying such Representations and
      Warranties.  All such representations and warranties, as made or
      deemed made as of a particular time, shall survive execution of each of the
      Loan
      Documents and the making of every Advance, and may be relied upon by
      Administrative Agent and Lenders as being true and correct as of the date when
      made or deemed made until all of the Loan Obligations are fully and indefeasibly
      paid in cash, no Letters of Credit are outstanding and the Letter of Credit
      Exposure is irreversibly zero, all of the Commitments have been terminated,
      and
      the Administrative Agent and the Lenders have no other commitment to extend
      credit or make advances to or for the account of Borrower.

     

    13.           Affirmative
      Covenants.  Each Borrower covenants and agrees that, while
      any of the Commitments remains in effect and until all of the Loan Obligations
      are fully and indefeasibly paid in cash, and until no Letters of Credit are
      outstanding, the Letter of Credit Exposure is irreversibly zero, all of the
      Commitments have been terminated, and the Administrative Agent and the Lenders
      have no other commitment to extend credit or make advances to or for the account
      of Borrower each Borrower shall do, and each Borrower shall cause each other
      Borrower and each other Covered Person to do, the following:

     

    13.1.       Use
      of Proceeds.  The proceeds of Swingline Advances, Interim
      Floorplan Loan Advances, the initial and subsequent Floorplan Loan Advances,
      and
      the initial and subsequent Revolving Loan Advances, shall be used to fund
      working capital, purchase Inventory, Permitted Acquisitions, and general
      corporate (or limited liability partnership or limited liability company)
      purposes.

     

    
      
        
        

      

      
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    13.2.       Corporate
      Existence.  Each Covered Person shall maintain its existence
      in good standing and shall maintain in good standing its right to transact
      business in those states in which it is now or hereafter doing business, except
      where the failure to so qualify will not have and will not be reasonably likely
      to have a Material Adverse Effect on any Covered Person.  Each Covered
      Person shall obtain and maintain all Material Licenses for such Covered
      Person.

     

    13.3.       Maintenance
      of Property and Leases.  Each Covered Person shall maintain
      in good condition and working order (ordinary wear and tear and damage by acts
      of God excepted), and repair and replace as required, all buildings, equipment,
      machinery, fixtures, Inventory, and other real and personal property owned
      or
      leased by such Covered Person whose useful economic life has not elapsed and
      which is necessary for the ordinary conduct of the business of such Covered
      Person, except where failure to do so does not have or reasonably will likely
      not have a Material Adverse Effect.  Each Covered Person shall
      maintain in good standing and free of defaults all of its leases of buildings,
      equipment, machinery, fixtures, Inventory, and other real and personal property
      whose useful economic life has not elapsed and which is necessary for the
      ordinary conduct of the business of such Covered Person, except where the
      failure to be in good standing or free of default would not reasonably be likely
      to give rise to a Material Adverse Effect.  No Covered Person shall
      permit any of its equipment, Inventory, or other property to become a fixture
      to
      real property or an accession to other personal property unless Administrative
      Agent has a valid, perfected and first priority Security Interest for the
      benefit of Lenders in such real or personal property.  No Covered
      Person shall, without Administrative Agent’s prior written consent, alter or
      remove any identifying symbol or number on its equipment.

     

    13.4.       Inventory.  Each
      Covered Person shall keep its Inventory and Equipment, taken as a whole, in
      good
      and merchantable condition (subject to ordinary wear and tear) at its own
      expense and shall hold such Inventory and Equipment for lease, or to be
      furnished in connection with the rendition of services, in the ordinary course
      of such Covered Person’s business, on terms which do not include consignment or
      similar terms.

     

    13.5.       Insurance.  Each
      Covered Person shall at all times keep insured or cause to be kept insured,
      in
      insurance companies having a rating of at least “A-” by Best’s Rating Service,
      all property owned by it of a character usually insured by others carrying
      on
      businesses similar to that of such Covered Person in such manner and to such
      extent and covering such risks as such properties are usually
      insured.  At all times, all Inventory shall be insured for full
      replacement value.  Each Covered Person shall carry, however, business
      interruption insurance in such amounts as are satisfactory to Administrative
      Agent, with all such policies showing Administrative Agent as loss payee for
      the
      benefit of Lenders.  Each Covered Person shall timely pay all premiums
      for such insurance.  Each Covered Person shall at all times carry
      insurance, in insurance companies having a rating of at least “A-” by Best’s
      Rating Service, against liability on account of damage to persons or property
      (including product liability insurance and insurance required under all Laws
      pertaining to workers’ compensation) and covering all other liabilities common
      to such Covered Person’s business, in such manner and to such extent as such
      coverage is usually carried by others conducting businesses similar to that
      of
      such Covered Person.  At all times, Borrower shall maintain
      replacement value insurance for all Collateral on any ocean, waterway,
      interstate, highway, or other public way.  All policies of liability
      insurance maintained hereunder shall name Administrative Agent as an additional
      insured for the benefit of Lenders; all policies of property insurance
      maintained hereunder with respect to the Collateral shall reflect Administrative
      Agent’s interest therein as a loss payee on a form acceptable to Administrative
      Agent for the benefit of Lenders.  Administrative Agent is authorized,
      but not obligated, as the attorney-in-fact for Borrower, and every other Covered
      Person and for the benefit of Lenders, (i) prior to the occurrence of an
      Event of Default, with Borrower’s consent (which consent shall 

     

    
      
        
        

      

      
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    not
      be
      unreasonably withheld), and upon the occurrence of an Event of Default, without
      Borrower’s or any other Covered Person’s consent, to adjust and compromise
      proceeds payable under such policies of insurance, (ii) to collect, receive
      and give receipts for such proceeds in the name of Borrower or any other Covered
      Person, Administrative Agent and Lenders, and (iii) to endorse Borrower or
      any other Covered Person’s name upon any instrument in payment
      thereof.  Such power granted to Administrative Agent shall be deemed
      coupled with an interest and shall be irrevocable (until all of the Loan
      Obligations are fully and indefeasibly paid in cash and the Commitments have
      terminated, no Letters of Credit are outstanding and the Letter of Credit
      Exposure is irreversibly zero, and the Administrative Agent and the Lenders
      have
      no other commitment to extend credit or make advances to or for the account
      of
      Borrower) as set forth in Section 9.  All policies of insurance
      maintained hereunder shall contain a clause providing that such policies may
      not
      be canceled, reduced in coverage or otherwise modified without 30 days’ prior
      written notice to Administrative Agent.  Borrower shall or shall cause
      any other Covered Person upon request of Administrative Agent at any time to
      furnish to Administrative Agent updated evidence of insurance (in the form
      required as a condition to Administrative Agent’s lending hereunder) for such
      insurance.

     

    13.6.      Payment
      of Taxes and Other Obligations.  Each Covered Person shall
      promptly pay and discharge or cause to be paid and discharged, as and when
      due,
      any and all income taxes, federal or otherwise, lawfully assessed and imposed
      upon it, and any and all lawful taxes, rates, levies, and assessments whatsoever
      upon its properties and every part thereof, or upon the income or profits
      therefrom and all claims of materialmen, mechanics, carriers, warehousemen,
      landlords and other like Persons for labor, materials, supplies, storage or
      other items or services which if unpaid might be or become a Security Interest
      or charge upon any of its property; provided, however, that a Covered Person
      may
      diligently contest in good faith by appropriate proceedings the validity of
      any
      such taxes, rates, levies, or assessments and claims, provided such Covered
      Person has established adequate reserves therefor in conformity with GAAP on
      the
      books of such Covered Person, and no Security Interest, other than a Permitted
      Security Interest, results from such non-payment.

     

    13.7.       Compliance
      With Laws.  Each Covered Person shall comply with all
      Material Laws.  Without limiting the generality of the
      foregoing:

     

    13.7.1.     Environmental
      Laws.  Each Covered Person shall comply and shall use
      commercially reasonable efforts to ensure compliance by all of its tenants,
      subtenants and other occupants, if any, with all Environmental Laws, any of
      which if not so complied with will or is reasonably likely to have a Material
      Adverse Effect on any Covered Person.

     

    13.7.2.    Pension
      Benefit Plans.  Each Covered Person and each ERISA Affiliate
      of such Covered Person shall at all times make prompt payments or contributions
      to meet the minimum funding standards under ERISA and the Code with respect
      to
      any Pension Benefit Plan maintained by such Covered Person or such ERISA
      Affiliate, and shall comply with all reporting and disclosure requirements
      and
      all provisions of the Code and ERISA applicable to any Pension Benefit Plan
      maintained by such Covered Person or such ERISA Affiliate except to the extent
      that any such failure could not reasonably be expected to have a Material
      Adverse Effect.

     

    13.8.           Discovery
      and Clean-Up of Hazardous Material.

     

    13.8.1.    In
      General.  Upon any Covered Person receiving notice of any
      violation of Environmental Laws or any similar notice described in
      Section 13.10.4, or upon any 

     

    
      
        
        

      

      
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    Covered
      Person otherwise discovering Hazardous Material on any property owned or leased
      by such Covered Person which is in violation of, or which would result in
      liability under, any Environmental Law, the violation of which or which
      liability will or is reasonably likely to have a Material Adverse Effect on
      any
      Covered Person, Borrower shall: (i) promptly take such acts as may be
      necessary to prevent danger or harm to the property or any Person therein as
      a
      result of such Hazardous Material; (ii) at the request of Administrative
      Agent, and at Borrower’s sole cost and expense, obtain and deliver to
      Administrative Agent promptly, but in no event later than 90 days after
      such request, a then currently dated environmental assessment of the property
      certified to Administrative Agent and any future holder of the Loan Obligations,
      a proposed plan for responding to any environmental problems described in such
      assessment, and an estimate of the costs thereof; and (iii) take all
      necessary steps to initiate and expeditiously complete all removal, remedial,
      response, corrective and other action to eliminate any such environmental
      problems, and keep Administrative Agent informed of such actions and the results
      thereof.

     

    13.9.    
       Termination of Pension Benefit
      Plan.  No Covered Person or ERISA Affiliate of such Covered
      Person shall terminate or amend any Pension Benefit Plan maintained by such
      Covered Person or such ERISA Affiliate if such termination or amendment would
      result in any liability to such Covered Person or such ERISA Affiliate under
      ERISA or any increase in current liability for the plan year for which such
      Covered Person or such ERISA Affiliate is required to provide security to such
      Pension Benefit Plan under the Code except to the extent any such termination
      or
      amendment could not reasonably be expected to have a Material Adverse
      Effect.

     

    13.10.  
       Notice to Administrative Agent and Lenders of Material
      Events.  Borrower shall, promptly upon any Responsible
      Officer of Borrower obtaining knowledge or notice thereof, give notice to
      Administrative Agent and each Lender of (i) any breach of any of the
      covenants in Sections 13, 14, or 15; (ii) any Default or Event of
      Default; (iii) the commencement of any Material Proceeding; and
      (iv) any loss of or damage to any assets of a Covered Person or the
      commencement of any proceeding for the condemnation or other taking of any
      of
      the assets of a Covered Person, if such loss, damage or proceeding has or is
      reasonably likely to have a Material Adverse Effect on such Covered Person,
      whether or not Insurance Proceeds are likely to be payable as a consequence
      of
      such loss, damage or proceeding.  In addition,

     

    13.10.1.     Borrower
      shall furnish to Administrative Agent from time to time all information which
      Administrative Agent reasonably requests with respect to the status of any
      Material Proceeding.

     

    13.10.2.    Borrower
      shall furnish to Administrative Agent from time to time all information which
      Administrative Agent reasonably requests with respect to any Pension Benefit
      Plan established by a Covered Person or an ERISA Affiliate of any Covered
      Person.

     

    13.10.3.    Borrower
      shall deliver notice to Administrative Agent of the establishment of any Pension
      Benefit Plan by a Covered Person or an ERISA Affiliate of such Covered
      Person.

     

    13.10.4.    Borrower
      shall promptly inform Administrative Agent of its receipt of, and deliver to
      Administrative Agent a copy of, any (i) notice that any violation of any
      Environmental Law or Employment Law may have been committed or is about to
      be
      committed by any Covered Person that has or which could reasonably be likely
      to
      have a Material Adverse Effect, (ii) notice that any administrative or
      judicial complaint or order 

     

    
      
        
        

      

      
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    has
      been
      filed or is about to be filed against any Covered Person alleging violations
      of
      any Environmental Law or Employment Law or requiring such Covered Person to
      take
      any action in connection with the release of any Hazardous Material into the
      environment, which has or could reasonably be likely to have a Material Adverse
      Effect, (iii) notice from a Governmental Authority or private party
      alleging that a Covered Person may be liable or responsible for costs associated
      with a response to or cleanup of a release of Hazardous Material into the
      environment or any damages caused thereby, which has or could reasonably be
      likely to have a Material Adverse Effect, (iv) notice that a Covered Person
      is subject to federal, state or local investigation regarding the improper
      transportation, storage, disposal, generation or release into the environment
      of
      any Hazardous Material which has or could reasonably be expected to have a
      Material Adverse Effect, or (v) notice that any properties or assets of a
      Covered Person are subject to a Security Interest in favor of any Governmental
      Authority for any liability under any Environmental Law or damages arising
      from
      or costs incurred by such Governmental Authority in response to a release of
      Hazardous Material into the environment.

     

    13.10.5.    Borrower
      shall deliver to Administrative Agent notice of each of the following events
      promptly after they occur:  (i) the failure of any Covered Person or
      ERISA Affiliate of such Covered Person to make any required installment or
      any
      other required payment to any Pension Benefit Plan in sufficient amount to
      comply with ERISA and the Code on or before the due date for such installment
      or
      payment and any applicable grace period; (ii) the occurrence of any
      Reportable Event, or a prohibited transaction or accumulated funding deficiency
      (as those terms are defined in ERISA), with respect to any Pension Benefit
      Plan
      maintained or contributed to by a Covered Person or an ERISA Affiliate of such
      Covered Person; (iii) receipt by a Covered Person or ERISA Affiliate of such
      Covered Person of any notice from a Multi-employer Plan regarding the imposition
      of withdrawal liability; and (iv) receipt by a Covered Person or ERISA
      Affiliate of such Covered Person of any notice of the institution, or a Covered
      Person’s expectancy of the institution, of any proceeding or receipt by such
      Covered Person or such ERISA Affiliate of any notice of the taking, or such
      Covered Person’s or such ERISA Affiliate’s expectancy of the taking, of any
      other action which may be reasonably expected to result in the termination
      of
      any Pension Benefit Plan maintained or contributed to by such Covered Person
      or
      such ERISA Affiliate, or the withdrawal or partial withdrawal by a Covered
      Person or ERISA Affiliate of such Covered Person from any Pension Benefit Plan,
      and the filing or receipt by a Covered Person or ERISA Affiliate of such Covered
      Person of any such notice and filing or receipt of all subsequent reports or
      notices under ERISA with or from the IRS, the PBGC, or the DOL relating to
      the
      same; and, in addition to such notice, deliver to Administrative Agent a
      certificate of a Responsible Officer of Borrower, setting forth details as
      to
      such events and the action that the affected Covered Person or ERISA Affiliate
      of such Covered Person proposes to take with respect thereto.  For
      purposes of this Section, each Covered Person and any ERISA Affiliate of such
      Covered Person shall be deemed to know all facts known by the administrator
      of
      any Plan of which such Covered Person or such ERISA Affiliate is the plan
      sponsor.

     

    13.10.6.    Borrower
      shall promptly deliver to Administrative Agent notice of any default or event
      of
      default, or the occurrence of any event which would with the passage of time,
      giving of notice or otherwise, constitute a default or event of default with
      respect to any of the Permitted Indebtedness in excess of $250,000.

     

    
      
        
        

      

      
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    13.10.7.    Borrower
      shall promptly deliver notice to Administrative Agent of the assertion by the
      holder of any Capital Securities in a Covered Person or the Subordinated
      Indebtedness or any other Indebtedness of a Covered Person in the outstanding
      principal amount in the aggregate in excess of $500,000 that a default exists
      with respect thereto or that such Covered Person is not in compliance with
      the
      terms thereof, or of the threat or commencement by such holder of any
      enforcement action because of such asserted default or
      noncompliance.

     

    13.10.8.    Borrower
      shall, promptly after becoming aware thereof, deliver notice to Administrative
      Agent of any pending or threatened strike, work stoppage, or other material
      labor dispute affecting a Covered Person which could reasonably be likely to
      have a Material Adverse Effect.

     

    13.10.9.    Borrower
      shall promptly deliver notice to Administrative Agent of any change in the
      name,
      state of incorporation or organization or form of any Covered Person, or the
      trade names or styles under which a Covered Person will sell Inventory or create
      Accounts, or to which instruments in payment of Accounts may be made payable,
      at
      least 30 days prior to such change unless Administrative Agent agrees in writing
      to a shorter period.

     

    13.10.10.   Borrower
      shall, promptly after becoming aware thereof, deliver notice to Administrative
      Agent of any event that has or is reasonably likely to have a Material Adverse
      Effect on any Covered Person.

     

    13.10.11.   Borrower
      shall, promptly after becoming aware thereof, deliver notice to Administrative
      Agent of an actual, alleged, or potential violation of any Material Law
      applicable to a Covered Person or the property of a Covered Person.

     

    13.10.12.   Borrower
      shall notify Administrative Agent promptly in writing of any fact or condition
      of which Borrower is aware which adversely affects the value of the Collateral
      taken as a whole, including disclosing the amount of such loss or depreciation
      and disclosing any adverse fact or condition or the occurrence of any event
      which causes loss or depreciation in the value of the Collateral, of more than
      $250,000 taken as a whole.  Borrower shall provide such additional
      information to Administrative Agent regarding the amount of any loss or
      depreciation in value of the Collateral as Administrative Agent may request
      from
      time to time.

     

    13.10.13.   Borrower
      shall keep on file with Administrative Agent at all times an appropriate
      instrument naming each Borrowing Officer.

     

    13.11.   
       Maintenance of Security Interests of Security
      Documents.

     

    13.11.1.    Preservation
      and
      Perfection of Security Interests.  Borrower shall promptly,
      upon the reasonable request of Administrative Agent and at Borrower’s expense,
      execute, acknowledge and deliver, or cause the execution, acknowledgment and
      delivery of, and thereafter file or record in the appropriate governmental
      office, any document or instrument supplementing or confirming the Security
      Documents or otherwise reasonably deemed necessary by Administrative Agent
      to
      create, preserve or perfect any Security Interest purported to be created by
      the
      Security Documents or to fully consummate the transactions contemplated by
      the
      Loan Documents.  The foregoing actions by Borrower shall include,
      without limitation, (i) filing financing or continuation statements, and
      amendments thereof, and executing such mortgages, deeds of trust, assignments
      or

     

    
      
        
        

      

      
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    security
      agreements, in form and substance satisfactory to Administrative Agent;
      (ii) delivering to Administrative Agent the original certificates of title
      for motor vehicles, or applications therefor duly executed, with Administrative
      Agent’s Security Interest for the benefit of Lenders properly shown thereon;
      (iii) delivering to Administrative Agent the originals of all instruments,
      documents and chattel paper, and all other Collateral of which Administrative
      Agent determines it should have physical possession in order to perfect and
      protect Administrative Agent’s Security Interest for the benefit of Lenders
      therein, duly endorsed or assigned to Administrative Agent without restriction;
      (iv) delivering to Administrative Agent warehouse receipts covering any
      portion of the Collateral located in warehouses and for which warehouse receipts
      are issued; (v) transferring Inventory to warehouses designated by
      Administrative Agent; (vi) delivering to Administrative Agent all letters
      of credit on which Borrower is named beneficiary; (vii) placing a durable
      notice of the existence of Administrative Agent’s Security Interest for the
      benefit of Lenders, acceptable to Administrative Agent, upon such items of
      the
      Collateral as are designated by Administrative Agent; and (viii) placing a
      notice of the existence of Administrative Agent’s Security Interest for the
      benefit of Lenders, acceptable to Administrative Agent, upon those writings
      evidencing the Collateral and the books and records of Borrower pertaining
      to
      the Collateral, as designated by Administrative Agent.

     

    13.11.2.    Collateral
      Held by Warehouseman, Bailee, etc.  If any Collateral with a
      value greater than $50,000 or if any of its material books and records are
      at
      any time in the possession or control of a warehouseman, bailee or any of
      Borrower’s agents or processors (not including any lessee or other person to
      whom Inventory is leased or rented in the ordinary course of such Covered
      Person’s business) , or with respect to any national or regional headquarters
      location, then Borrower shall notify Administrative Agent thereof and shall
      notify such Person of Administrative Agent’s Security Interest for the benefit
      of Lenders in such Collateral and, upon Administrative Agent’s request, instruct
      such Person to hold all such Collateral for Administrative Agent’s account
      subject to Administrative Agent’s instructions.  If at any time any
      Collateral with a value greater than $50,000 or any of its material books and
      records are located on any premises that are not owned by Borrower (not
      including any lessee or other person to whom Inventory is leased or rented
      in
      the ordinary course of such Covered Person’s business, or other locations where
      Borrower is not obligated to pay rent for up to 30 consecutive days), or
      with respect to any national or regional headquarters location, then Borrower
      shall obtain or cause to be obtained written waivers or consents, in form and
      substance satisfactory to Administrative Agent, of all present and future
      Security Interests to which the owner or lessor or any mortgagee of such
      premises may be entitled to assert against the Collateral.

     

    13.11.3.   Compliance
      With Terms of Security Documents.  Each Covered Person shall
      comply with all of the terms, conditions and covenants in the Security Documents
      to which such Covered Person is a party.

     

    13.12.  
       Accounting System.  Each Covered
      Person shall maintain a system of accounting established and administered in
      accordance with GAAP.  Without limiting the generality of the
      foregoing:

     

    13.12.1.    Account
      Records.  Each Covered Person shall maintain a record of
      Accounts at its principal place of business that itemizes each Account of such
      Covered Person and describe the names and addresses of the Account Debtors
      on
      such Accounts, all relevant 

     

    
      
        
        

      

      
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    invoice
      numbers, invoice dates, and shipping dates, and the due dates, collection
      histories, and aging of such Accounts.

     

    13.12.2.   Inventory
      Records.  Each Covered Person shall maintain an Inventory
      system satisfactory to Administrative Agent.

     

    13.12.3.   Tracing
      of
      Proceeds.  Each Borrower shall maintain detailed and accurate
      accounting and records of proceeds of the Loans and transfers of proceeds of
      the
      Loans (i) received by it from the Lenders or Administrative Agent,
      (ii) transferred from it to any other Covered Person, and
      (iii) received by it from another Borrower.  Each Borrower
      acknowledges that its ability to obtain the Loans hereunder is made possible
      by
      the fact that the Borrowers are co-borrowers under this Agreement and the other
      Loan Documents, and are engaged in a common enterprise.  Each Borrower
      agrees that (i) the business operations of each Borrower and each other
      Covered Person are interrelated and complement one another, and such entities
      have a common business purpose and common management, and (ii) the proceeds
      of Advances hereunder will benefit each Borrower, severally and jointly,
      regardless of which Borrower requests or receives part or all of any
      Advance.  Not in any way in limitation of any other provisions set
      forth herein, such books and records may be reviewed and copied by the
      Administrative Agent at Borrower’s expense at reasonable intervals and upon
      reasonable notice given by the Administrative Agent to Borrower.

     

    13.13.  Financial
      Statements.  Borrower shall deliver to Administrative
      Agent:

     

    13.13.1.   Annual
      Financial Statements.  Within 90 days after the close of each
      fiscal year of Borrower, year-end audited consolidated financial statements
      of
      each Borrower and its Subsidiaries, containing a balance sheet, income
      statement, statement of cash flows and a report by an independent certified
      public accounting firm selected by Borrower and satisfactory to Administrative
      Agent (and the Administrative Agent and Lenders agree that Goldstein, Golub
      & Kessler is satisfactory), certified by such public accounting firm without
      qualification, including without adverse reference to going concern value and
      without reference to material inadequacy in any respect of the Borrower’s or any
      other Covered Person’s internal controls, together with all related tax returns
      and filings (except for tax returns for which the required filing date has
      been
      extended, in which case Borrower shall deliver such tax returns to
      Administrative Agent simultaneously with the filing thereof in accordance with
      such extension) and accompanied by a Compliance Certificate of
      Borrower.

     

    13.13.2.   Monthly
      Financial Statements.  Within 30 days after the end of
      each fiscal month of Borrower management-prepared unaudited financial statements
      of each Borrower and every Subsidiary of a Borrower for the fiscal quarters
      not
      covered by the latest year-end financial statements, in each case containing
      a
      balance sheet, income statement, statement of cash flows, and unaudited
      consolidated financial statements of Borrower and its Subsidiaries, in each
      case
      accompanied by (i) for the third month of each fiscal quarter, a statement
      comparing such financial statements with budgeted projections for such fiscal
      quarter and for the elapsed portion of the fiscal year of Borrower as contained
      in the annual budget prepared for such fiscal year, and (ii) a Compliance
      Certificate (for each month, only the monthly financial covenants in Section
      15,
      and for the third month of each fiscal quarter, all financial covenants in
      Section 15).

     

    Each
      Compliance Certificate shall be in the form of Exhibit 13.13, shall contain
      detailed calculations of the financial measurements referred to in
      Section 15 for the relevant periods, and shall 

     

    
      
        
        

      

      
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    contain
      statements by the signing authorized officer on behalf of Borrower (either
      the
      president, any vice president or the chief financial officer) to the effect
      that, except as explained in reasonable detail in such Compliance Certificate,
      (i) the attached Financial Statements are complete and correct in all
      material respects (subject, in the case of Financial Statements other than
      annual, to normal year-end audit adjustments and with respect to Financial
      Statements other than annual, without footnote disclosures) and have been
      prepared in accordance with GAAP applied consistently throughout the periods
      covered thereby and with prior periods (except as disclosed therein),
      (ii) all of the Representations and Warranties are true and correct as of
      the date such certification is given as if made on such date (with such
      exceptions as have been disclosed to Lenders in writing by Borrower or any
      Guarantor and are satisfactory to the Required Lenders), and (iii) there is
      no Existing Default.  If any Compliance Certificate delivered to
      Lenders discloses that a representation or warranty is not true and correct,
      or
      that there is an Existing Default that has not been waived in writing by Lender,
      such Compliance Certificate shall state what action Borrower has taken or
      proposes to take with respect thereto.

     

    13.14.     Other
      Financial Information.  Borrower shall also deliver the
      following to the Administrative Agent and to each Lender each in a form
      satisfactory to Administrative Agent:

     

    13.14.1.    Borrowing
      Base Certificate.  On the Effective Date and weekly
      thereafter, delivered on the first  Business Day of each calendar week
      following the end of each calendar week, a Borrowing Base Certificate in
      substantially the form of Exhibit 13.14.1 duly completed and signed by the
      Chief Financial Officer or other Borrowing Officer of the Borrowing
      Agent.  If there is an Existing Default, Borrower shall provide a
      Borrowing Base Certificate more often if so requested by Administrative Agent
      in
      its sole and absolute discretion.  Each Borrowing Base Certificate
      shall be substantially in the form attached hereto as
      Exhibit 13.14.1.

     

    13.14.2.     Sales
      Report.  With the provision of each Borrowing Base
      Certificate, a report showing each item of Inventory sold or leased by Borrower
      for the preceding calendar week.

     

    13.14.3.     Cash
      Journal Report.  With the provision of each Borrowing Base
      Certificate, a cash journal report, by day, for the preceding calendar
      week.

     

    13.14.4.     Schedule
      of
      Inventory.  With the provision of each Borrowing Base
      Certificate, a Schedule of Inventory.

     

    13.14.5.     Schedule
      of
      Accounts, Schedule of Accounts Payable.  Within twenty (20)
      days after the end of each fiscal month, a Schedule of Accounts and Schedule
      of
      Accounts Payable.

     

    13.14.6.             Report
      of Indebtedness.  Within twenty (20) days after the end of
      each fiscal month, a report summarizing all Indebtedness, including, Permitted
      Indebtedness, and with respect thereto, the amounts outstanding thereon,
      including interest and fees.

     

    13.14.7.             Report
      of Deferred Revenue.  Within twenty (20) days after the end
      of each fiscal month, a report summarizing all deferred revenues by customer
      and
      balance, and any other information reasonably requested by Administrative
      Agent.

     

    13.14.8.             Other
      Reports or Information Concerning Accounts or
      Inventory.  Such other reports and information, in form and
      detail reasonably satisfactory to Administrative Agent, and documents as
      Administrative Agent may reasonably request from time to time concerning
      Accounts or Inventory including, to the extent requested by

     

    
      
        
        

      

      
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    Administrative
      Agent, copies of all invoices, leases, bills of lading, shipping receipts,
      purchase orders, and warehouse receipts.

     

    13.14.9.             Stockholder
      and SEC Reports.  Contemporaneously with their filing by or
      on behalf of Borrower or any other Covered Person, copies of any (i) proxy
      statements, financial statements and reports which Borrower makes available
      to
      its stockholders, and (ii) reports, registration statements and
      prospectuses with any securities exchange or the Securities and Exchange
      Commission or any Governmental Authority succeeding to any of its
      functions.

     

    13.14.10.           Pension
      Benefit Plan Reports.  Promptly upon the request of
      Administrative Agent at any time or from time to time, a copy of each annual
      report or other filing or notice filed with respect to each Pension Benefit
      Plan
      of a Covered Person or an ERISA Affiliate of a Covered Person.

     

    13.14.11.           Tax
      Returns.  Promptly upon the request of Administrative Agent
      at any time or from time to time, a copy of each federal, state, or local tax
      return or report filed by any Covered Person.

     

    13.14.12.           Locations
      of Inventory Report.  Within twenty (20) days after the end
      of each fiscal month, a listing, by jurisdiction (including counties) of the
      locations of Inventory.

     

    13.15.      Review
      of Accounts.  Not less often than annually, and promptly at
      Administrative Agent’s request if there is an Existing Default, Borrower shall
      conduct a review of its Accounts, bad debt reserves, and collection histories
      of
      Account Debtors and promptly following such review provide Administrative Agent
      with a report of such review in form and detail satisfactory to Administrative
      Agent.

     

    13.16.      Inventory.  Not
      less often than annually, and promptly at Administrative Agent’s request if
      there is an Existing Default, Borrower shall conduct a physical count of its
      and
      each other Covered Person’s Inventory and promptly following the completion of
      such count provide Administrative Agent with a report thereof in form and detail
      satisfactory to Administrative Agent, including the value of such Inventory
      in
      accordance with GAAP.

     

    13.17.      Annual
      Projections; Operating Plan.  No less than 30 days prior to
      the first day of each fiscal year of all Borrowers, projected balance sheets,
      statements of income and expense, and statements of cash flows for such fiscal
      year and the fiscal year immediately thereafter, on a consolidated basis, and
      with such other detail as Administrative Agent may require, together with an
      operating plan approved by the board of directors of each Borrower.

     

    13.18.       Other
      Information.  Upon the request of Administrative Agent,
      Borrower shall promptly deliver to Administrative Agent such other information
      about the business, operations, revenues, financial condition, property, or
      business prospects of Borrower and every other Covered Person as Administrative
      Agent may, from time to time, reasonably request.

     

    13.19.       Examinations
      and Site Visits by Administrative Agent.  Administrative
      Agent or Persons authorized by and acting on behalf of Administrative Agent
      or
      any Lender may at any time (upon reasonable prior notice, except if there is
      an
      Existing Default, no prior notice shall be required) during normal business
      hours examine the books, records, and assets of, and inspect any of the
      property, locations or operations of, each Covered Person from time to time,
      and
      in the course thereof may make copies or abstracts of such books and records
      and
      discuss the affairs, finances and books and records of such Covered Person
      with
      its accountants, officers and 

     

    
      
        
        

      

      
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    employees,
      and make such inspections as it deems necessary.  Administrative Agent
      may (or shall at the direction of the Required Lenders) undertake examinations
      up to six times in each calendar year.  Each Covered Person shall
      cooperate with Administrative Agent, Lenders and such Persons in the conduct
      of
      such exams, site visits and inspections and shall deliver to Administrative
      Agent any instrument necessary for Administrative Agent to obtain records from
      any service bureau maintaining records for such Covered
      Person.  Administrative Agent may, while there is an Existing Default,
      perform as many as examinations as it may choose.  Borrower is
      required to reimburse Administrative Agent for all reasonable fees, costs and
      expenses incurred in connection with any such examinations, provided however,
      if
      any such examination is performed while there is no Existing Default, then
      the
      Borrower shall not be obligated to reimburse Administrative Agent for an amount
      in excess of $3,500 per such examination.

     

    13.20.       Verification
      of Accounts and Notices to Account Debtors.  Administrative
      Agent shall have the right at any time and from time to time, to verify the
      validity and amount of any Account and any other matter relating to an Account,
      by communicating in writing or orally directly with the Account Debtor or any
      Person who represents or Administrative Agent believes represents the Account
      Debtor.

     

    13.21.       Appraisals
      of Collateral.  Administrative Agent or Persons authorized by
      and acting on behalf of Administrative Agent may, as often as Administrative
      Agent deems desirable, perform or have performed on its behalf an appraisal
      of
      Borrower’s Inventory, equipment, and other assets by an appraiser reasonably
      acceptable to Administrative Agent and prepared on a basis reasonably
      satisfactory to Administrative Agent.  Each Covered Person shall
      cooperate with Administrative Agent and such Persons in the conduct of such
      appraisals and shall deliver to Administrative Agent or such Persons any
      documents or instruments necessary for Administrative Agent or such Person’s to
      perform such appraisals.  If there is an Existing Default at the time
      of any such appraisal, then Borrower shall reimburse Administrative Agent for
      all reasonable costs and expenses actually incurred by it in conducting or
      having conducted such appraisal plus Administrative Agent’s other actual
      out-of-pocket costs and expenses, and if there is no Existing Default at the
      time of any such appraisal, Borrower shall not be obligated to reimburse
      Administrative Agent for its costs and expenses actually incurred by it in
      conducting or having conducted such appraisal including Administrative Agent’s
      other actual out-of-pocket costs and expenses.

     

    13.22.       Access
      to Officers and Auditors.  Each Covered Person shall permit
      Administrative Agent, any Lender and Persons authorized by Administrative Agent
      or any Lender to discuss the business, operations, revenues, financial
      condition, property, or business prospects of such Covered Person with its
      officers, employees, accountants and independent auditors as often as
      Administrative Agent or any Lender may request in its reasonable discretion,
      and
      such Covered Person shall direct such officers, employees, accountants and
      independent auditors to cooperate with Administrative Agent.

     

    13.23.       Movement
      of Inventory.  Borrower shall notify Administrative Agent in
      writing if Borrower has knowledge that any Inventory will be located for more
      than thirty (30) consecutive days outside any of the locations listed in
      section 11.31.2 of the Disclosure Schedule.

     

    13.24.       Titled
      Assets.  After an Event of Default has occurred, upon
      Administrative Agent’s request, Borrower shall promptly cause the respective
      titles of all Collateral which are titled in the name of any Covered Person
      to
      reflect thereon that Administrative Agent, as agent for itself and the other
      Lenders, as the first and only lienholder thereon, and shall deliver, at
      Administrative Agent’s request, originals of all such titles to Administrative
      Agent.

     

    
      
        
        

      

      
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    13.25.       Claims
      Act.  At any time, Borrower shall, at Administrative Agent’s
      request, promptly make such filings and obtain such acknowledgements in
      accordance with the Claims Act and take any other steps necessary to perfect
      Administrative Agent’s Security Interest to Administrative Agent’s satisfaction
      in any Account with respect to which the Account Debtor is the United States
      of
      America, any state, or any department, agency, public corporation or other
      instrumentality thereof.

     

    13.26.       Further
      Assurances.  Borrower shall execute and deliver, or cause to
      be executed and delivered, to Administrative Agent such documents and
      agreements, and shall take or cause to be taken such actions, as Administrative
      Agent may from time to time request to carry out the terms and conditions of
      this Agreement and the other Loan Documents.

     

    14.           Negative
      Covenants.  Borrower covenants and agrees that, while any of
      the Commitments remains in effect and until all of the Loan Obligations are
      fully and indefeasibly paid in cash, until no Letters of Credit are outstanding,
      the Letter of Credit Exposure is irreversibly zero, all of the Commitments
      have
      been terminated, and the Administrative Agent and the Lenders have no other
      commitment to extend credit or make advances to or for the account of Borrower,
      Borrower shall not, directly or indirectly, do any of the following, or permit
      any other Borrower or any other Covered Person to do any of the following,
      without the prior written consent of Required Lenders:

     

    14.1.       Investments.  Make
      any Investments in any other Person except the following:

     

    14.1.1.   
      Subject to Section 14.1.4, Investments in which Administrative Agent has a
      first
      priority perfected Security Interest  in (i) interest-bearing
      United States government obligations; (ii) certificates of deposit issued
      by any Lender; (iii) prime commercial paper rated A1 or better by Standard
      and Poor’s Corporation or Prime P1 or better by Moody’s Investor Service, Inc.;
      (iv) agreements involving the sale to Borrower of United States government
      securities and their guarantied repurchase the next Business Day by a commercial
      bank chartered under the Laws of the United States or any state thereof which
      has capital and surplus of not less than $500,000,000, or (v) certificates
      of deposit issued by and time deposits with any commercial bank chartered under
      the Laws of the United States or any state thereof which has capital and surplus
      of not less than $500,000,000 (or such lesser amount if approved in writing
      by
      Administrative Agent).

     

    14.1.2.   
      Accounts arising in the ordinary course of business and payable in accordance
      with Borrower’s customary trade terms.

     

    14.1.3.  
       Other than the Investment identified in Section 14.1.4, Investments
      existing on the Execution Date and disclosed in section 11.19 of the
      Disclosure Schedule.

     

    14.1.4.   
      Investments in cash or marketable securities at domestic financial institutions,
      provided, however, at all times such Investments shall be subject to control
      and
      pledge agreements in form and substance reasonably satisfactory to
      Administrative Agent that provide, inter alia, that at any time after an Event
      of Default, following Administrative Agent’s request to such domestic financial
      institutions, such Investments shall be promptly pledged to Administrative
      Agent
      and Administrative Agent shall be granted by Borrower a first priority Security
      Interest in such Investments and control over any securities account containing
      such Investments.

     

    14.1.5.   
      Notes or securities received by a Covered Person in settlement of Indebtedness
      of other Persons to such Covered Person that was incurred in the ordinary course
      of such Covered Person’s business.

     

    
      
        
        

      

      
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    14.1.6.   
      Investments by any Covered Person in any other Covered Person.

     

    14.1.7.  
       Investments held in overnight Investment accounts, provided, during an
      Existing Default, no such overnight Investment accounts shall be allowed and
      provided further, all overnight investment accounts shall at all times be
      subject to control agreements in favor of the Administrative Agent.

     

    14.1.8.  Permitted
      Acquisitions, if any.

     

    14.2.        Indebtedness.  Create,
      incur, assume, or allow to exist any Indebtedness of any kind or description,
      except the following:

     

    14.2.1.   
      Excluding the Other Creditor Indebtedness, Indebtedness to trade creditors
      incurred in the ordinary course of business.

     

    14.2.2.   
      Without duplication of any Indebtedness otherwise permitted by this Section
      14.2, Indebtedness listed on section 11.20 of the Disclosure Schedule, which
      is
      satisfactory to Administrative Agent.

     

    14.2.3.   
      The Loan Obligations.

     

    14.2.4.   
      The Subordinated Indebtedness up to an aggregate of $30,000,000 outstanding
      in
      principal at any time if a Subordination Agreement remains in effect with
      respect thereto and the Subordinated Indebtedness contains terms and provisions
      acceptable to Administrative Agent.

     

    14.2.5.   
      Indebtedness (except for bona fide inter-company sales of Inventory) of any
      Borrower or Subsidiary to any other Borrower or Subsidiary provided that (i)
      complete and accurate records of such Indebtedness are maintained by each such
      Borrower, (ii) such Indebtedness, if it is in excess of $100,000 in the
      aggregate in any given case, at the option of the Administrative Agent, shall
      be
      evidenced by a promissory note and collaterally assigned and pledged to the
      Administrative Agent for the benefit of the Lenders pursuant to documents
      satisfactory to Administrative Agent, and (iii) if at any time such Indebtedness
      is evidenced by a promissory note, it shall be immediately collaterally assigned
      and pledged to the Administrative Agent for the benefit of the
      Lenders.

     

    14.2.6.   
      The Other Creditor Indebtedness secured by Inventory if an Intercreditor
      Agreement remains in effect with respect thereto.

     

    14.2.7. 
        Indebtedness constituting Liabilities (as defined by GAAP)
      under any Capital Lease under which a Covered Person is a lessee existing on
      the
      Execution Date and disclosed in section 11.23 of the Disclosure Schedule
      which is acceptable to Administrative Agent, and any Capital Leases under which
      a Covered Person is a lessee entered into by any Covered Person after the
      Execution Date for capital assets up to $200,000 in the aggregate outstanding
      at
      any one time (such amount to be calculated as the amount which would have been
      the aggregate cost of the property leased if it had been purchased rather than
      leased).

     

    14.2.8.  
       Indebtedness constituting purchase money secured Indebtedness with respect
      to equipment disclosed in section 11.20 of the Disclosure Schedule which is
      acceptable to Administrative Agent, and purchase money Security Interests in
      equipment entered into 

     

    
      
        
        

      

      
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    by
      any
      Covered Person after the Execution Date up to $200,000 in the aggregate
      outstanding at any time.

     

    14.2.9.  
       Indebtedness constituting deferred compensation or retirement benefits to
      Borrower’s employees incurred in the ordinary course of business for actual
      services rendered and which is reflected on the most recent Financial
      Statements.

     

    14.2.10.   
      Any Preferred Capital Stock to the extent treated as Indebtedness under GAAP,
      if
      such Preferred Capital Stock is subordinated to the Loan Documents and otherwise
      issued on terms and conditions reasonably satisfactory to the Administrative
      Agent and not subject to redemption, optional or mandatory, during the term
      of
      this Agreement.

     

    14.2.11.   
      Bid Bonds up to $2,500,000 in the aggregate outstanding at any
      time.

     

    14.3.       Payments
      on Other Creditor Indebtedness; Subordinated
      Indebtedness.  Make any nonscheduled prepayment of principal
      or interest on any Other Credit Indebtedness unless both immediately before
      and
      after giving effect to any such prepayment, there shall be no Default or Event
      of Default; make any payment of principal on the Subordinated Indebtedness;
      make
      any payment of interest on the Subordinated Indebtedness unless such payment
      of
      interest is schedule to be made under the Subordinated Indebtedness Documents
      and such payment is expressly permitted by the terms of the applicable
      Subordination Agreement and Section 6.3.3.2 hereof; or modify, amend,
      supplement, compromise, satisfy, release or discharge any of the Subordinated
      Indebtedness Documents, any collateral securing the same, or any Person liable
      directly or indirectly with respect thereto.

     

    14.4.       Prepayments.  Prepay,
      whether voluntarily or otherwise, any Indebtedness, including without
      limitation, the Subordinated Indebtedness, other than (a) the Loan
      Obligations in accordance with the terms of the Loan Documents, (b) trade
      payables in the ordinary course of business consistent with past practices,
      (c) as permitted by Section 14.3.

     

    14.5.      Indirect
      Obligations.  Create, incur, assume or allow to exist any
      Indirect Obligations except (i) Indirect Obligations existing on the Execution
      Date and disclosed on section 11.21 of the Disclosure Schedule, and (ii)
      Indirect Obligations of a Borrower with respect to Permitted Indebtedness of
      another Borrower, or in connection with the Obligations of another Borrower
      incurred in such Borrower’s ordinary course of business consistent with past
      practices.

     

    14.6.      Security
      Interests.  Create, incur, assume or allow to exist any
      Security Interest upon all or any part of its property, real or personal
      (including, without limitation, intangible property), now owned, leased or
      hereafter acquired or leased, except the following:

     

    14.6.1.   
      Security Interests for taxes, assessments or governmental charges not delinquent
      or being diligently contested in good faith and by appropriate proceedings
      and
      for which adequate book reserves in accordance with GAAP are
      maintained.

     

    14.6.2.  Security
      Interests arising out of deposits in connection with workers’ compensation
      insurance, unemployment insurance, old age pensions, or other social security
      or
      retirement benefits legislation.

     

    14.6.3.  Deposits
      to secure bids, tenders, contracts (other than contracts for the payment of
      money), leases, statutory obligations, and appeal bonds, and other obligations
      of like nature arising in the ordinary course of business.

     

    
      
        
        

      

      
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    14.6.4.    
      Security Interests imposed by any Law, such as mechanics’, workmen’s,
      materialmen’s, landlords’, carriers’, or other like Security Interests arising
      in the ordinary course of business which secure payment of obligations which
      are
      not past due or which are being diligently contested in good faith by
      appropriate proceedings and for which adequate reserves in accordance with
      GAAP
      are maintained on such Covered Person’s books.

     

    14.6.5.   
      Subject to the limitations in Section 14.2.6, if any, Security Interests in
      favor of the holders of any of the Other Creditor Indebtedness which such
      Security Interests secure Inventory and which security interests are subject
      to
      Intercreditor Agreements unless Administrative Agent, in its sole and absolute
      discretion, waives the requirement for an Intercreditor Agreement with respect
      to any particular Other Creditor Indebtedness.

     

    14.6.6.  Subject
      to the limitations in Section 14.2.7, Security Interests in favor of the holders
      of any asset leased under a Capital Lease to Borrower.

     

    14.6.7.  Subject
      to the limitations in Section 14.2.8, Purchase money Security Interests securing
      payment of the purchase price of equipment acquired by Borrower after the
      Execution Date if such Security Interests attach within 20 days of the
      Borrower’s receipt of such equipment.

     

    14.6.8.  Security
      Interests securing the Loan Obligations in favor of Administrative Agent for
      the
      benefit of Lenders.

     

    14.6.9.  Security
      Interests securing the Subordinated Indebtedness if and only if a Subordination
      Agreement is in effect.

     

    14.6.10.  Without
      duplication of any other Security Interests permitted by this Section 14.6,
      Security Interests existing on the Execution Date that are disclosed in
      section 11.31 of the Disclosure Schedule and are satisfactory to
      Administrative Agent.

     

    14.6.11.  Security
      Interests securing Bid Bonds permitted by Section 14.2.11.

     

    14.7.       Acquisitions.  Acquire
      any Capital Securities in a Person, or acquire all or substantially all of
      the
      assets of a Person (including without limitation assets comprising all or
      substantially all of an unincorporated business unit or division of any Person),
      or all or substantially all of the information technology assets or help desk
      assets of any Person except if approved by the Required Lenders (any such
      approved acquisition, being a “Permitted Acquisition”).

     

    14.8.        Leases;
      Bailments; Consignments; Warehousing.  Store any Inventory
      with a value in excess of $100,000 for each location or any of its material
      books and records that is at any time (i) in the possession or control of a
      warehouseman, bailee, consignee including pursuant to an express or implied
      agreement establishing a bailment or consignment, or similar arrangement, (ii)
      at any of Borrower’s agents or processors (not including any Person to whom
      Inventory is leased or rented in the ordinary course of such Covered Person’s
      business), or (iii) at any location or premises that are not owned by Borrower,
      unless, in each case, Administrative Agent has received written waivers or
      consents, in form and substance satisfactory to Administrative Agent, which
      such
      written waivers or consents shall include, without limitation, a waiver of
      all
      present and future Security Interests to which the owner, bailor, or lessor
      or
      any mortgagee of such premises may be entitled to assert against the
      Collateral.  Occupy any national or regional headquarters location,
      unless, in each case, Administrative Agent has received written waivers or
      

     

    
      
        
        

      

      
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    consents,
      in form and substance satisfactory to Administrative Agent, which such written
      waivers or consents shall include, without limitation, a waiver of all present
      and future Security Interests to which the owner, bailor, or lessor or any
      mortgagee of such premises may be entitled to assert.

     

    14.9.       Disposal
      of Property.  Sell, transfer, exchange, or otherwise dispose
      of any of its assets.  Notwithstanding the foregoing unless a Default
      or Event of Default has occurred and is continuing (in which case any of the
      following shall be prohibited if directed by the Administrative Agent), Borrower
      may sell, transfer or otherwise dispose of Inventory or obsolete equipment
      in
      the ordinary course of business consistent with past practice, provided that
      all
      proceeds of such sales, transfers or other dispositions shall be deposited
      into
      the Lockboxes.

     

    14.10.     Distributions/Redemptions.  Directly
      or indirectly declare or make, or incur any liability to make, any
      Distribution/Redemptions to any Person, provided, however, after May 1, 2008,
      MTM Technologies, Inc. may pay dividends on its preferred stock up to $2,650,000
      in the aggregate semi-annually and up to $5,300,000 in the aggregate per fiscal
      year if and only if (i) at the time of such payment, there is no Existing
      Default, and (ii) no Default or Event of Default is reasonably likely to occur
      from the making of such payment.

     

    14.11.     Change
      of Control.  Unless consented to in writing by the Required
      Lenders, Take any action to authorize or approve, or consent to, a Change in
      Control.

     

    14.12.     Capital
      Structure; Capital Securities.  (i) Except as permitted by
      clause (iii) of this Section 14.12 hereof, make any change in the capital
      structure of any Covered Person; (ii) change any Charter Documents of any
      Covered Person which has or is reasonably likely to have a Material Adverse
      Effect on any Covered Person or which will or is reasonably likely to cause
      a
      Default or Event of Default; or (iii) issue or create any Capital Securities,
      or
      non-equity interest that is convertible into Capital Securities, in any Covered
      Person, except, with respect to MTM Technologies, Inc. Capital Securities that
      are subordinated in right of payment to all the Loan Obligations in a manner
      satisfactory to Administrative Agent and issued on terms and conditions
      satisfactory to Administrative Agent.

     

    14.12.2.  Allow
      or permit any Capital Securities, or non-equity interest that is convertible
      into Capital Securities in any Covered Person to be pledge to any Person or
      allow any Person to have a Security Interest therein other than Administrative
      Agent who shall have at all times a first priority perfected Security Interest
      therein and the holders of the Subordinated Indebtedness who shall have at
      all
      times a second priority perfected Security Interest therein.

     

    14.12.3.  Be
      a party to any merger or consolidation, except as permitted by Section 14.7
      or
      Section 14.12.4 below.

     

    14.12.4.  Any
      Subsidiary of MTM Technologies, Inc. ceases to be a Wholly-Owned Subsidiary
      of
      MTM Technologies, Inc. unless the assets of such Subsidiary are liquidated
      into
      another Wholly-Owned Subsidiary of MTM Technologies, Inc. or into MTM
      Technologies, Inc., or such Subsidiary is merged into another Wholly-Owned
      Subsidiary of MTM Technologies, Inc. or into MTM Technologies, Inc. (and MTM
      Technologies, Inc. is the surviving entity).

     

    14.13.     Change
      of State of Formation; Change of Name.  Make any change in
      the state of incorporation or formation of organization of any Covered Person,
      change its type of legal entity, or change its legal name as it appears on
      any
      certificates or articles of organization or formation.  

     

    
      
        
        

      

      
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    Make
      any
      change in the trade names or styles under which a Covered Person will sell
      Inventory or create Accounts, or to which instruments in payment of Accounts
      may
      be made payable, except in accordance with the terms of Section 13.10.9
      with at least 30 days prior written notice to Administrative Agent of such
      change (unless Administrative Agent agrees in writing to a shorter
      period).

     

    14.14.       Change
      of Business.  Engage in any business other than substantially
      as conducted by a Borrower on the Effective Date.

     

    14.15.       Transactions
      With Affiliates.  Enter into or be a party to any transaction
      or arrangement, including the purchase, sale or exchange of property of any
      kind
      or the rendering of any service, with any Affiliate, or make any loans or
      advances to any Affiliate.  If there is no Existing Default, however,
      each Covered Person may engage in such transactions with an Affiliate in the
      ordinary course of business and pursuant to the reasonable requirements of
      its
      business and on fair and reasonable terms substantially as favorable to it
      as
      those which it could obtain in a comparable arm’s-length transaction with a
      non-Affiliate.  No Borrower shall make any loan or advance to any
      shareholder, member or partner of any Borrower, and advances for travel or
      similar expenses made in the ordinary course of business, or permit any
      shareholder, member or partner of any Borrower to incur any Indebtedness to
      any
      Borrower (other than travel and similar advances in the ordinary course of
      business).  Pay any management or similar fees to any Affiliate or
      other Person other than another Borrower.

     

    14.16.       Conflicting
      Agreements.  Enter into any agreement, that would, if fully
      complied with by it, result in a Default or Event of Default either immediately
      or upon the elapsing of time.

     

    14.17.       Investment
      Banking and Finder’s Fees.  Pay or agree to pay, or reimburse
      any other party with respect to, any investment banking or similar or related
      fee, underwriter’s fee, finder’s fee, or broker’s fee to any Person in
      connection with this Agreement.

     

    14.18.       Sale
      and Leaseback Transactions.  Enter into any agreement or
      arrangement with any Person providing for any Covered Person to lease or rent
      property that Borrower has or will sell or otherwise transfer to such
      Person.

     

    14.19.       New
      Subsidiaries.  Organize, create or acquire any Subsidiary
      unless Borrower has obtained the prior written consent of Administrative Agent
      thereto (which consent shall not be unreasonably withheld) and within five
      Business Days (unless Administrative Agent consents, in its sole discretion
      to a
      longer period of time up to but not exceeding thirty days) following the
      organization, creation or acquisition of such Subsidiary, the applicable Covered
      Person and such Subsidiary executes and delivers to Administrative Agent for
      the
      benefit of Lenders the following additional documents: all Charter Documents
      of
      such new Subsidiary, an unlimited Guaranty of the Loan Obligations by such
      Subsidiary or a joinder agreement to this Agreement and the Loan Documents,
      a
      pledge of the capital stock, partnership interests, or membership interests
      of
      such Covered Person in such Subsidiary, and other Security Documents requested
      by Administrative Agent so as to grant Administrative Agent, for the benefit
      of
      the Lenders, a perfected, first priority security interest in all real and
      personal property of such Subsidiary.

     

    14.20.       Fiscal
      Year.  Change its fiscal year from a fiscal year ending on
      March 31 of each calendar year.

     

    14.21.       Leases.  Enter
      into any Capital Leases except as permitted by Section 14.2.

     

    
      
        
        

      

      
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    14.22.         S
      Corporation Status.  Any Covered Person elects under Section
      1362(a) of the Code to be treated as an S corporation.

     

    14.23.         Depreciation
      Methodology.  Change the depreciation schedule or
      depreciation methodology for any Inventory, equipment or other
      assets.

     

    14.24.         Tax
      Consolidation.  File or consent to the filing of any
      consolidated income tax return with any Person other than another
      Borrower.

     

    14.25.         Transactions
      Having a Material Adverse Effect on Covered Person.  Enter
      into any transaction which has or is reasonably likely to have a Material
      Adverse Effect on any Covered Person; or enter into any transaction, or take
      or
      contemplate taking any other action, or omit or contemplate omitting to take
      any
      action, which any Responsible Officer knows, or reasonably should know, is
      likely to cause a Default or Event of Default hereunder.

     

    14.26.          Storage.  Store
      any Inventory or equipment at any location other than as set forth on
      section 11.31.2 of the Disclosure Schedule; maintain its chief executive
      office at any location other than as set forth on section 11.32.1 of the
      Disclosure Schedule.

     

    14.27.          Like-Kind
      Exchange.  Borrower shall not complete or attempt to complete
      any “like-kind exchange” (as such term is defined in the Code or applicable
      regulations) with respect to any Collateral on which Administrative Agent has
      a
      first priority Security Interest.

     

    15.           Financial
      Covenants.

     

    15.1.           Special
      Definitions.  As used in this Section 15 and elsewhere
      herein, the following capitalized terms have the following
      meanings:

     

    “Capital
      Expenditure” means an expenditure for an asset that must be depreciated or
      amortized under GAAP, or for any asset that under GAAP must be treated as a
      capital asset. An expenditure for purposes of this definition includes any
      deferred or seller financed portion of the purchase price of an asset and
      includes the Capital Expenditure Equivalent of a Capital
      Lease.  Capital Expenditures do not include any expenditure made with
      insurance proceeds to the extent used to replace or repair damaged fixed assets
      and plant equipment.

     

    “Capital
      Expenditure Equivalent” of a Capital Lease is the amount which would have been
      the aggregate cost of the property leased if it had been purchased rather than
      leased.

     

    “Dilution”
      means the rolling 12-month Dollar amount of dilution expressed as a percentage
      as determined by the Administrative Agent in its sole discretion as set forth
      in
      the Administrative Agent’s most recent field exam.

     

    “EBITDA”
      means, for any period of calculation, an amount equal to (A) the sum of (i)
      Net
      Income, (ii) Interest Expense, (iii) income tax expense, (iv) depreciation
      expense, (v) amortization expense, (vi) non-cash charges relating to any
      share-based compensation awards, to the extent such non-cash charges were
      expensed during such period in accordance with SFAS 123R or are required to
      be
      shown as an expense in any financial statements for periods prior to the
      effective date of SFAS 123R, and (vii) actual cash and non-cash nonrecurring
      severance and actual cash and non-cash nonrecurring restructuring charges for
      such period up to $250,000 in the aggregate in a fiscal quarter and up to
      $750,000 in the aggregate during the term of this Agreement, plus (B), the
      sum
      of (i) all nonrecurring losses under GAAP, and (ii) all extraordinary losses
      not
      otherwise related to the continuing operations of the Borrower in such period,
      minus (C) the sum of (i) all nonrecurring gains under GAAP, and (ii) all

     

    
      
        
        

      

      
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    extraordinary
      gains and income not otherwise related to the continuing operations of the
      Borrower in such period.

     

    “Interest
      Expense” means for any period of calculation, all interest, whether paid in cash
      or accrued as a liability, but without duplication, on Total Indebtedness during
      such period.

     

    “Liquidation
      Multiple” means (I) Net Recovery divided by (II) the lesser of (A) the amount of
      the Aggregate Revolving Loan Commitment as of the last day of the most recently
      completed fiscal month and (B) the Borrowing Base as shown in the Borrowing
      Base
      Certificate provided to Administrative Agent closest to (but not after) the
      end
      of the most recently completed fiscal month.

     

    “Net
      Recovery” means a Dollar amount equal to:  (I) (A) 100% of the face
      amount of all Accounts of Borrower minus the bad debt reserve, as set forth
      in
      the Financial Statements for the most recently ended fiscal month, multiplied
      by
      (B) 100% minus (i) Dilution multiplied by 2 plus (ii) 5% of the amount
      determined in clause (I)(B)(i), plus (II) the Floorplan Inventory Value as
      calculated by Administrative Agent, as of the last day of the most recently
      completed fiscal month, plus (III) 50% multiplied by total aggregate wholesale
      invoice price of all of Borrower’s Inventory that is not financed under the
      Floorplan Loan Facility and the Interim Floorplan Loan Facility, as shown in
      the
      Financial Statements for the most recently completed fiscal month, and minus
      (IV) $1,000,000.

     

    “Net
      Income” means, for any period of calculation, “net income” as determined in
      accordance with GAAP.

     

    “Total
      Funded Indebtedness” means the sum of the following, without duplication
      (i) outstanding principal and interest of the Loans (including any fees
      paid to Administrative Agent or any Lender in connection with the execution
      and
      delivery of this Agreement) excluding the principal outstanding under the
      Aggregate Floorplan Loan Facility and, without duplication, the Interim
      Floorplan Loan Facility and unfunded Approvals, (ii) the face amount
      of any letters of credit issued on the account of any Borrower, (iii) the
      aggregate outstanding principal balance of all other Indebtedness for borrowed
      money, including, without limitation, the Capital Expenditure Equivalent, and
      (iv) the maximum amount payable under any guaranty executed by a Borrower,
      but, excluding, the Subordinated Indebtedness if a Subordination
      Agreement is in effect.

     

    All
      other
      capitalized terms used in this Section 15 shall have their meanings and
      shall be determined under GAAP.  All calculations shall be for the
      Borrowers and their respective Subsidiaries on a consolidated
      basis.  For the purposes of calculating the amount of Total
      Indebtedness in this Section 15, each scheduled payment of interest and
      principal on any of the Loans made on the first of a month shall be deemed
      to
      have been made on the immediately preceding day.

     

    15.2.     Minimum
      Liquidation Multiple.  Each Borrower covenants that the
      Liquidation Multiple calculated as of the last day of each fiscal month of
      Borrower shall be no less than 1.20:1.00.

     

    15.3.     Minimum
      EBITDA.  Each Borrower covenants that as of the last day of
      each fiscal quarter, for the fiscal quarter then ended, Borrower’s EBITDA shall
      not be less than the amounts set forth in the table below:

     

    
      
        
        

      

      
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              The
                Fiscal Quarter Ending On:

            	
              Minimum
                EBITDA

            
	
              September
                30, 2007

            	
              $800,000

            
	
              December
                31, 2007

            	
              $1,760,000

            
	
              March
                31, 2008

            	
              $1,840,000

            
	
              June
                30, 2008

            	
              $2,000,000

            
	
              September
                30, 2008

            	
              $2,000,000

            
	
              December
                31, 2008

            	
              $2,000,000

            
	
              March
                31, 2009

            	
              $2,000,000

            
	
              June
                30, 2009

            	
              $2,000,000

            

    

    

    15.4.     Maximum
      Total Funded Indebtedness to EBITDA.  Each Borrower covenants
      that (A) the ratio of Total Funded Indebtedness, calculated as of March 31,
      2008, to EBITDA, calculated as of March 31, 2008 for the preceding four fiscal
      quarters then ended, shall be no more than 4.00:1.00, and (B) the ratio of
      Total
      Funded Indebtedness, calculated as of the last day of each fiscal quarter ending
      after March 31, 2008, to EBITDA, calculated as of the last day of each fiscal
      quarter ending after March 31, 2008, for the preceding four fiscal quarters
      then
      ended, shall be no more than 4.00:1.00.

     

    15.5.     Excess
      Cash/Marketable Securities plus Availability.  Each Borrower
      covenants that on the last day of each calendar month that the sum of (A) the
      amount of cash or marketable securities permitted by Section 14.1.4 hereof,
      plus
      (B) the difference between (i) the Borrowing Base on such date, minus (ii)
      the
      sum of (a) the Swingline Loan, (b) the Floorplan Shortfall, (c) the Letter
      of
      Credit Exposure on such date (except to the extent that a Revolving Loan Advance
      will be used immediately to reimburse Letter of Credit Issuer for unreimbursed
      draws on a Letter of Credit), (d) without duplication, the outstanding Aggregate
      Revolving Loans, (e) the amount of the Other Creditor Indebtedness (unless
      an
      Intercreditor Agreement in form and substance satisfactory to Administrative
      Agent has been executed between Administrative Agent and the holder of such
      Other Creditor Indebtedness), and (f) the amount of Bid Bonds, shall be greater
      than or equal to $1,500,000.

     

    16.           Default.

     

    16.1.     Events
      of Default.  Any one or more of the following shall
      constitute an event of default (an “Event of Default”) under this
      Agreement:

     

    16.1.1.           Failure
      to Pay Principal or Interest.  Failure of Borrower to pay (i)
      any interest accrued on any of the Loans within three (3) Business Days after
      the date when due, or (ii) any principal of the Loans when due; provided,
      however, it shall not be an Event of Default with respect to the payment of
      any
      principal or interest on any Floorplan Loan or Interim Floorplan Loan until
      the
      occurrence of a Floorplan Payment Default.  “Floorplan Payment
      Default” means any failure by Borrower to make any payment, under a Transaction
      Statement by the last day of the no interest period set forth in a Transaction
      Statement.  “Floorplan Payment Default” shall not mean or include, and
      shall exclude, any deductions, offsets or other disputes made or asserted by
      Borrower which are accepted by or under good faith negotiation with
      Administrative Agent.

     

    
      
        
        

      

      
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    16.1.2.           Failure
      to Pay Certain Other Amounts Owed to Lenders.  Failure of
      Borrower to pay any of the Loan Obligations (other than principal of the Loans
      or interest accrued thereon and other than Administrative Agent’s costs and
      expenses Borrower is required to pay pursuant to the terms of Section 13.19
      and Section 13.21) within 10 days after the date when due.

     

    16.1.3.           Failure
      to Pay Examination and Appraisal Costs.  Failure of Borrower
      to pay any of Administrative Agent’s reasonable costs and expenses required to
      be paid by Borrower pursuant to the terms of Section 13.19 and
      Section 13.21 within 10 days after the date when due.

     

    16.1.4.           Failure
      to Pay Amounts Owed to Other Persons.  Failure of any Covered
      Person to make any payment due on Indebtedness of such Covered Person which
      such
      Indebtedness is over $250,000 in the aggregate to Persons (other than
      Indebtedness owed to Lenders under the Loan Documents and other than
      Indebtedness owed to any Covered Person’s trade creditors in connection with the
      purchase of such Covered Person’s Inventory from such trade creditors) and which
      failure continues unwaived beyond any applicable grace period specified in
      the
      documents evidencing such Indebtedness.

     

    16.1.5.           Representations
      or Warranties.  Any of the Representations and Warranties is
      discovered to have been false in any material respect when made and is not
      cured
      within ten (10) days of the date such Representation and Warranty was made
      (provided such breach can be cured within such period and provided that Borrower
      works diligently and in good faith to cure any such breach during such period),
      provided, however, with respect to Representations and Warranties regarding
      Accounts, any such breach or falsity could reasonably be likely to have a
      Material Adverse Effect or result in the Aggregate Revolving Loan plus the
      Swingline Loans exceeding the Maximum Available Amount.

     

    16.1.6.           Certain
      Covenants with Cure Periods.  Failure of any Covered Person
      to comply with any covenant in Section 13 (other than the covenants set
      forth in Section 13.13, Section 13.14, Section 13.17,
      Section 13.19, Section 13.20, Section 13.21, Section 13.22,
      and Section 13.23) which is not cured within 10 days after the initial
      occurrence of such failure, provided noncompliance with such covenant can be
      cured within such 10 day period and provided that Borrower works diligently
      and in good faith to cure any such noncompliance during such
      period.

     

    16.1.7.           Certain
      Covenants Without Cure Periods.  Failure of any Covered
      Person to comply with the covenants in Section 13 (unless specified in
      Section 16.1.6 above ), Section 14, or Section 15.

     

    16.1.8.           Other
      Covenants.  Failure of any Covered Person to comply with of
      any of the terms or provisions of any of the Loan Documents applicable to it
      (other than a failure which constitutes an Event of Default under any of
      Sections 16.1.1 through 16.1.7).

     

    16.1.9.           Acceleration
      of Other Indebtedness.  Any Obligation (other than a Loan
      Obligation) of a Covered Person for the repayment of $250,000 in the aggregate
      or more of borrowed money is accelerated, or becomes or is declared to be due
      and payable or required to be prepaid (other than by an originally scheduled
      prepayment) prior to the original maturity thereof.

     

    16.1.10.         Default
      Under Other Agreements.  The occurrence of any default or
      event of default under any agreement to which a Covered Person is a party (other
      than the Loan 

     

    
      
        
        

      

      
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    Documents),
      which default or event of default continues unwaived beyond any applicable
      grace
      period provided therein and has or is reasonably likely to have a Material
      Adverse Effect on a Covered Person or involves Indebtedness of more than
      $250,000 in the aggregate.  Administrative Agent or any Covered Person
      receives notice of a breach that is not cured within any applicable grace period
      from any landlord under a landlord consent/waiver concerning a leased regional
      or national headquarters or a leased location at which $250,000 or more of
      Collateral is located or any of its material books and records are located
      stating that Borrower is in default of its obligations under such
      lease.  Borrower loses any franchise, permission, license or right to
      sell or deal in any Collateral which Administrative Agent or the Lenders finance
      which has or could reasonably be likely to have a Material Adverse
      Effect.

     

    16.1.11.         Other
      Creditor Indebtedness.; Subordinated Indebtedness.  The
      occurrence of (a) any breach, default or event of default with respect to
      any of the Other Creditor Indebtedness in excess of $250,000 in the aggregate
      which is not cured or waived within any applicable grace period or any
      acceleration thereof or right to accelerate, or (b) the termination of any
      Intercreditor Agreement by any party thereto, other than Administrative Agent,
      prior to the payment in full of all of the Other Creditor Indebtedness covered
      thereby.  The occurrence of (a) any breach or default with respect to
      the Subordinated Indebtedness that is not cured within any applicable grace
      period or any acceleration thereof or right to accelerate, or (b) any breach
      or
      default of the Subordination Agreement by the holder of any of the Subordinated
      Indebtedness.

     

    16.1.12.         Bankruptcy;
      Insolvency; Etc.  A Covered Person (i) fails to pay, or
      admits in writing its inability to pay, its debts generally as they become
      due,
      or otherwise becomes insolvent (however evidenced); (ii) makes an
      assignment for the benefit of creditors; (iii) files a petition in
      bankruptcy, is adjudicated insolvent or bankrupt, petitions or applies to any
      tribunal for any receiver or any trustee of such Covered Person or any
      substantial part of its property; (iv) commences any proceeding relating to
      such Covered Person under any reorganization, arrangement, readjustment of
      debt,
      dissolution or liquidation Law of any jurisdiction, whether now or hereafter
      in
      effect; (v) has commenced against it any such proceeding which remains
      undismissed for a period of 60 days, or by any act indicates its consent
      to, approval of, or acquiescence in any such proceeding or the appointment
      of
      any receiver of or any trustee for it or of any substantial part of its
      property, or allows any such receivership or trusteeship to continue
      undischarged for a period of 60 days; or (vi) takes any action to
      authorize any of the foregoing.

     

    16.1.13.         Judgments;
      Attachment; Settlement; Etc.  Any one or more judgments or
      orders is entered against a Covered Person or any attachment or other levy
      is
      made against the property of a Covered Person with respect to a claim or claims
      involving in the aggregate liabilities (not paid or fully covered by insurance,
      less the amount of reasonable deductibles in effect on the Execution Date)
      in an
      aggregate amount in excess of $250,000, and such judgment becomes final and
      non-appealable or if timely appealed is not fully bonded and collection thereof
      stayed pending the appeal; or any Covered Person agrees to a settlement
      obligating any Covered Person to make a payment with respect to a claim or
      claims involving in the aggregate liabilities (not paid or fully covered by
      insurance, less the amount of reasonable deductibles in effect on the Execution
      Date) in an aggregate amount in excess of $250,000.

     

    
      
        
        

      

      
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    16.1.14.         Pension
      Benefit Plan Termination, Etc.  Any Pension Benefit Plan
      termination by the PBGC or the appointment by the appropriate United States
      District Court of a trustee to administer any Pension Benefit Plan or to
      liquidate any Pension Benefit Plan, which has or reasonably could be likely
      to
      have a Material Adverse Effect; or any event which constitutes grounds either
      for the voluntary termination of any Pension Benefit Plan by the PBGC or for
      the
      appointment by the appropriate United States District Court of a trustee to
      administer or liquidate any Pension Benefit Plan shall have occurred and be
      continuing for thirty (30) days after Borrower has notice of any such
      event, which has or reasonably could be likely to have a Material Adverse
      Effect; or any  voluntary termination of any Pension Benefit Plan
      which is a defined benefit pension plan as defined in Section 3(35) of ERISA
      while such defined benefit pension plan has an accumulated funding deficiency
      in
      an amount exceeding $250,000 in the aggregate unless Administrative Agent has
      been notified of such intent to voluntarily terminate such plan and Required
      Lenders have given their consent and agreed that such event shall not constitute
      an Event of Default; or the plan administrator of any Pension Benefit Plan
      applies under Section 412(d) of the Code for a waiver of the minimum funding
      standards of Section 412(1) of the Code and Required Lenders determine that
      the
      substantial business hardship upon which the application for such waiver is
      based could subject any Covered Person or ERISA Affiliate of any Covered Person
      to a liability in excess of $250,000 in the aggregate.

     

    16.1.15.         Liquidation
      or Dissolution.  A Covered Person files a certificate of
      dissolution under applicable state Law or is liquidated or dissolved or suspends
      or terminates the operation of its business, or has commenced against it any
      action or proceeding for its liquidation or dissolution or the winding up of
      its
      business, or takes any action in furtherance thereof, except in connection
      with
      the consolidation of such a Covered Person and its assets with another Covered
      Person and its assets.

     

    16.1.16.         Seizure
      of Assets.  All or any material part of the property of all
      Covered Persons is nationalized, expropriated, seized or otherwise appropriated,
      or custody or control of such property or of all Covered Persons is assumed
      by
      any Governmental Authority or any court of competent jurisdiction at the
      instance of any Governmental Authority, unless the same is being contested
      in
      good faith by proper proceedings diligently pursued and a stay of enforcement
      is
      in effect.

     

    16.1.17.         Racketeering
      Proceeding.  There is filed against any Covered Person any
      civil or criminal action, suit or proceeding under any federal or state
      racketeering statute (including, without limitation, the Racketeer Influenced
      and Corrupt Organization Act of 1970), which action, suit or proceeding is
      not
      dismissed within 120 days and could result in the confiscation or
      forfeiture of any of the Collateral.

     

    16.1.18.         Loan
      Documents; Security Interests.  For any reason other than the
      failure of Administrative Agent to take any action available to it to maintain
      perfection of the Security Interests created in favor of Administrative Agent
      for the benefit of Lenders pursuant to the Loan Documents, any Loan Document
      ceases to be in full force and effect or any Security Interest with respect
      to
      any portion of the Collateral intended to be secured thereby ceases to be,
      or is
      not, valid, perfected and prior to all other Security Interests (other than
      the
      Permitted Security Interests, and other than sales of Inventory and Equipment
      expressly permitted hereunder made in the ordinary course of business, to a
      bona
      fide purchaser, for fair market value, if all of the proceeds thereof are
      delivered to Administrative Agent as set forth herein) or is terminated, revoked
      or declared void or 

     

    
      
        
        

      

      
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    invalid,
      or Borrower or any Covered Person contests or denies that it has any liability
      or obligation under any agreement, term, or condition contained in any Loan
      Document to which Borrower or such Covered Person is a party.

     

    16.1.19.         Loss
      to Collateral.  Any abandonment, loss, theft, damage or
      destruction of any item or items of Collateral occurs which is not covered
      by
      insurance as required herein and has or is reasonably likely to have a Material
      Adverse Effect.

     

    16.1.20.         Guaranty;
      Guarantor.  Any Guaranty ceases to be in full force and
      effect or any action is taken to discontinue or assert the invalidity or
      unenforceability of any Guaranty or any Guarantor fails to comply with any
      of
      the terms or provisions of any Guaranty, or any representation or warranty
      of
      Guarantor therein is false, or any Guarantor denies that it has any further
      liability under any Guaranty or gives notice to Lender to such effect, or any
      Guarantor fails to furnish the financial statements required under any Guaranty
      or otherwise breaches or is in default of any obligation or covenant contained
      in any Guaranty that is not cured within any applicable grace
      period.

     

    16.1.21.         Change
      of Control.  Unless consented to in writing by the Required
      Lenders, a Change of Control shall occur, or the Borrowers shall take any action
      in support of a Change in Control, or any Person or Group states, publicly,
      privately, or otherwise, its intention to take any action, or fail to take
      any
      action, that may reasonably be likely, as determined by the Administrative
      Agent, to result in a Change of Control.

     

    16.1.22.         Material
      Adverse Change.  There occurs any action or event or there is
      a nonoccurrence of any action or event, which has or reasonably could be likely
      to have a Material Adverse Effect.

     

    16.1.23.         Negative
      Pledge.  The occurrence of a breach, default or event of
      default by any Borrower of a negative pledge or other agreement which restricts
      or otherwise prohibits a Borrower from granting any consensual lien or Security
      Interest with respect to its owned or leased real property upon which its
      business is conducted.

     

    16.2.       Cross-Default.  An
      Event of Default under this Agreement will automatically and immediately
      constitute a default under every other Loan Document without regard to any
      requirement therein for the giving of notice or the passing of
      time.

     

    16.3.       Rights
      and Remedies.

     

    16.3.1.           Termination
      of Commitments.  Upon an Event of Default described in
      Section 16.1.12 (regardless of whether any time periods specified therein
      have expired), all of the Commitments shall be deemed canceled without any
      action or notice by the Lenders or Administrative Agent, and Lenders shall
      have
      no obligation to make any further or subsequent Advances and no further advances
      or Approvals shall be made without the consent of the Required
      Lenders.  Upon the occurrence and during the continuance of any other
      Event of Default, the Required Lenders in their sole and absolute discretion
      may
      cancel the Commitments.  Such cancellation may be, in any case,
      without presentment, demand or notice of any kind, which Borrower expressly
      waives.  Borrower hereby waives any requirement for notice of
      acceleration.

     

    16.3.2.           Acceleration;
      Funding.  Upon an Event of Default described in
      Section 16.1.12 (regardless of whether any time periods specified therein
      have expired), all of the outstanding Loan Obligations shall automatically
      become immediately due 

     

    
      
        
        

      

      
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    and
      payable.  From and after the date the Lenders have knowledge of an
      Event of Default under Section 16.1.1, no further Advances shall be made or
      issued unless the Required Lenders approve in writing any further Advances
      or
      unless the Required Lenders waive in writing such Event of
      Default.  Upon the occurrence and during the continuance of any other
      Event of Default, and at any time thereafter, (i) the Administrative Agent
      may or, at the direction of the Required Lenders shall, cease making Advances,
      and (ii) the Required Lenders in their sole and absolute discretion may
      declare all of the outstanding Loan Obligations immediately due and
      payable.  Any such acceleration may be, in either case, without
      presentment, demand or notice of any kind, which Borrower expressly
      waives.

     

    16.3.3.           Right
      of Set-off.  During an Existing Default, each Lender is
      hereby authorized, without notice to Borrower (any such notice being expressly
      waived by Borrower), to the fullest extent permitted by law, to set off and
      apply against the Loan Obligations any and all deposits (general or special,
      time or demand, provisional or final) or any other assets at any time held
      by or
      at such Lender or under the control of or otherwise pledged to such Lender,
      or
      any other Indebtedness at any time owing by such Lender (or its Affiliate)
      to or
      for the credit or the account of Borrower, irrespective of whether or not such
      Lender shall have made any demand under this Agreement or the Notes or any
      Guaranty and although such Loan Obligations may be unmatured.  The
      rights of each Lender under this Section are in addition to other rights and
      remedies (including, without limitation, other rights of set-off) which such
      Lender may otherwise have.  Any such amounts shall be promptly
      turned-over to the Administrative Agent in the form received for application
      to
      the Loan Obligations as set forth in this Agreement.  During an
      Existing Default, Administrative Agent is hereby authorized, without notice
      to
      Borrower (any such notice being expressly waived by Borrower), to set off and
      apply against the Loan Obligations any and all deposits (general or special,
      time or demand, provisional or final) or other assets at any time held by or
      at
      Administrative Agent, or under the control of or otherwise pledged to
      Administrative Agent, or any other Indebtedness at any time owing by
      Administrative Agent or any Affiliate thereof to or for the credit or the
      account of Borrower, irrespective of whether or not Administrative Agent or
      any
      Affiliate thereof shall have made any demand under this Agreement or the Loan
      Obligations and although such Loan Obligations may be unmatured.

     

    16.3.4.           Notice
      to Account Debtors.  Upon the occurrence and during the
      continuance of an Event of Default, Administrative Agent may (if Required
      Lenders concur or direct), without prior notice to Borrower, notify any or
      all
      Account Debtors that the Accounts have been assigned to Administrative Agent
      for
      the benefit of Lenders and that Administrative Agent has a Security Interest
      therein for the benefit of Lenders, and Administrative Agent may direct, or
      Borrower, at Administrative Agent’s request, shall direct, any or all Account
      Debtors to make all payments upon the Accounts directly to Administrative Agent
      for the benefit of Lenders.

     

    16.3.5.           Entry
      Upon Premises and Access to Information.  Upon the occurrence
      and during the continuance of an Event of Default, Administrative Agent may
      (or
      shall at the direction of the Required Lenders) (i) enter upon the premises
      leased or owned by Borrower where Collateral is located (or is believed to
      be
      located) without any obligation to pay rent to Borrower, or any other place
      or
      places where Collateral is believed to be located, (ii) render Collateral
      usable or saleable, (iii) remove Collateral therefrom to the premises of
      Administrative Agent or any agent of Administrative Agent for such time as
      Administrative Agent may desire in order effectively to collect or liquidate
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    (iv) take
      possession of, and make copies and abstracts of, Borrower’s original books and
      records, obtain access to Borrower’s data processing equipment, computer
      hardware and software relating to any of the Collateral and use all of the
      foregoing and the information contained therein in any manner Administrative
      Agent deems appropriate in connection with the exercise of Administrative
      Agent’s rights; and (v) notify postal authorities to change the address for
      delivery of Borrower’s mail to an address designated by Administrative Agent and
      to receive, open and process all mail addressed to Borrower.

     

    16.3.6.           Completion
      of Uncompleted Inventory Items.  Upon the occurrence and
      during the continuance of an Event of Default, Administrative Agent may (or
      shall at the direction of the Required Lenders) request that Borrower, and
      Borrower shall upon such request, use Borrower’s best efforts to obtain the
      consent of its and any other Covered Person’s customers to the completion
      (before or after foreclosure by Administrative Agent of its security interest
      therein) of the manufacture of all uncompleted Inventory items that Borrower
      or
      any other Covered Person was manufacturing for such customers pursuant to
      contracts or accepted purchase orders, and the commitment by such customers
      to
      purchase such items upon their completion as provided in the relevant contracts
      or accepted purchase orders.  Borrower shall, as an uncompensated
      agent for Lenders, complete or cause to be completed the manufacture and
      shipment of all such items as provided in the relevant contracts or accepted
      purchase orders if Administrative Agent so directs.

     

    16.3.7.           Borrower’s
      Obligations.  Upon the occurrence and during the continuance
      of an Event of Default, Borrower shall, if Administrative Agent so requests,
      assemble all the movable tangible Collateral and make it available to
      Administrative Agent at a place or places to be designated by Administrative
      Agent in its discretion.

     

    16.3.8.           Secured
      Party Rights.  Upon the occurrence and during the continuance
      of an Event of Default:

     

    16.3.8.1.  Administrative
      Agent may exercise any or all of its rights under the Security Documents as
      a
      secured party under the UCC and any other applicable Law; and

     

    16.3.8.2.  Administrative
      Agent may sell or otherwise dispose of any or all of the Collateral at public
      or
      private sale in a commercially reasonable manner, which sale Administrative
      Agent may postpone from time to time by announcement at the time and place
      of
      sale stated in the notice of sale or by announcement at any adjourned sale
      without being required to give a new notice of sale, all as Administrative
      Agent
      deems advisable, for cash or credit.  A Lender may become the
      purchaser at any such sale if permissible under applicable Law, and Borrower
      agrees that such Lender has no obligation to preserve rights to Collateral
      against prior parties or to marshal any Collateral for the benefit of any
      Person.  Borrower agrees that if Administrative Agent conducts a
      private sale of any Collateral by requesting bids from 5 or more dealers,
      distributors, or lessors in that type of Collateral, any sale by Administrative
      Agent of such Collateral, in bulk or in parcels, to the bidder submitting the
      highest cash bid therefor, which occurs within 120 days of the later to
      occur of (a) Administrative Agent taking possession and control of such
      Collateral, or (b) Administrative Agent being otherwise authorized or
      permitted to sell such Collateral, is a commercially reasonable sale of such
      

     

    
      
        
        

      

      
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    Collateral
      under the UCC.  Borrower further agrees that 10 (ten) or more days
      prior written notice will be commercially reasonable notice of any public or
      private sale.  Borrower agrees that the purchase of any Collateral by
      a Vendor, as provided in any agreement between Administrative Agent and the
      Vendor or CDF and Vender, is a commercially reasonable disposition and private
      sale of such Collateral under the UCC, and no request for bids shall be
      required.  Borrower irrevocably waives any requirement that
      Administrative Agent retain possession and not dispose of any Collateral until
      after an arbitration hearing, arbitration award, confirmation, trial or final
      judgment.  If Administrative Agent disposes of any such Collateral
      other than as herein contemplated, the commercial reasonableness of such
      disposition will be determined in accordance with the laws of the state
      governing this Agreement.

     

    16.3.9.            Joint
      and Several.  Each Obligation and liability of Borrower to
      Administrative Agent, each Lender, and Letter of Credit Issuer, including the
      Loan Obligations, are the joint and several obligations of Borrower, and
      Administrative Agent, any Lender, and the Letter of Credit Issuer, may proceed
      directly against any Borrower, or all Borrowers, or any Guarantor, or any
      Collateral, or all of the foregoing, or any one of the foregoing or any
      combination of the foregoing, without first proceeding against Borrower or
      any
      Collateral, or without joining all Persons liable or potentially liable for
      any
      portion of the Loan Obligations in one action.  Each Borrower shall be
      jointly and severally liable as primary obligor and not merely as surety for
      repayment of all Loan Obligations arising under the Loan
      Documents.  Such joint and several liability shall apply to Borrower
      regardless of whether any Advance was only requested by or on behalf of or
      made
      to any other Borrower or the proceeds of any Advance were used only by or on
      behalf of any other Borrower or any indemnification Obligation or any other
      Obligation arose only as a result of the action of any other
      Borrower.  If any Borrower makes a payment in respect of the Loan
      Obligations hereunder and under the other Loan Documents, it shall have the
      rights of contribution described in this Section below against the other
      Borrower or Borrowers; provided that such Borrower shall not exercise its right
      of contribution until all of the Loan Obligations are fully and indefeasibly
      paid in full in cash and satisfied, no Letters of Credit are outstanding and
      the
      Letter of Credit Exposure is zero and the Commitments are terminated and
      Administrative Agent and the Lenders have no further obligation to extend credit
      to or for the account of any Borrower; provided, however, that Administrative
      Agent is hereby granted, for the benefit of the Lenders, a Security Interest
      in
      such right of contribution and may enforce such right during an Existing
      Default.  It is the intent of Borrower, Administrative Agent, the
      Lenders, and the Letter of Credit Issuer that Borrower’s maximum obligation to
      repay the Loan Obligations hereunder and under the other Loan Documents (the
      “Loan Obligation Limit”) shall not exceed the greater of (i) the amount actually
      borrowed or received directly or indirectly by such Borrower with respect
      thereto and (ii) the amount which is $1.00 less than the amount which, if
      recorded by such Borrower as a liability, would render such Borrower not
      Solvent.  To the extent that any Borrower makes a payment on any of
      the Loan Obligations (a “Loan Obligation Payment”), such Borrower (the “Entitled
      Borrower”) is entitled to contribution and indemnification from, and
      reimbursement by, each other Borrower (a “Contributing Borrower”) in the amount
      of the Contribution Obligation of such Contributing Borrower
      hereunder.  The “Contribution Obligation” of a Contributing Borrower
      with respect to the Loan Obligation Payment of an Entitled Borrower is an amount
      equal to the greater of (1) the lesser of (x) such Contributing Borrower’s Loan
      Obligation Limit at the time the Loan Obligation Payment is made and (y) such
      Contributing Borrower’s Allocable Share of the Loan Obligation 

     

    
      
        
        

      

      
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    Payment,
      and (2) the amount of all proceeds from the Loan Obligations actually received
      by such Contributing Borrower or applied by the recipient thereof directly
      or
      indirectly for the benefit of such Contributing Borrower, less the sum of any
      repayments thereof and any Loan Obligation Payments made by such Contributing
      Borrower prior to the time the applicable Loan Obligation Payment is
      made.  The “Allocable Share” of a Contributing Borrower is a fraction,
      the numerator of which is such Contributing Borrower’s Loan Obligation Limit at
      the time the applicable Loan Obligation Payment is made and the denominator
      of
      which is the sum of the Loan Obligation Limits of all of the Contributing
      Borrowers (plus a similarly computed amount for any Guarantor which has a
      similar obligation to make a contribution) as of such time.

     

    16.3.10.          Miscellaneous.  Upon
      the occurrence of an Event of Default and at any time thereafter, Administrative
      Agent and/or Lenders may exercise any other rights and remedies available to
      Administrative Agent and/or Lenders under the Loan Documents or otherwise
      available to Administrative Agent and/or Lenders at law or in
      equity.

     

    16.4.       Application
      of Funds.  Any funds received by Lenders or Administrative
      Agent for the benefit of Lenders with respect to any Loan Obligation after
      its
      Maturity, including proceeds of Collateral, shall be applied as
      follows:  (i) first, to reimburse Lenders based on their
      respective pro-rata shares for any amounts due to Lenders under
      Section 18.6; (ii) second, to reimburse to Administrative Agent all
      unreimbursed costs and expenses paid or incurred by Administrative Agent that
      are payable or reimbursable by Borrower hereunder; (iii) third, to reimburse
      to
      Lenders based on their respective Pro- Rata Shares for unreimbursed costs and
      expenses paid or incurred by Lenders (including costs and expenses incurred
      by
      Administrative Agent as a Lender that are not reimbursable as provided in the
      preceding clause) that are payable or reimbursable by Borrower hereunder;
      (iv) fourth, to the payment of accrued and unpaid fees due hereunder and
      all other amounts due hereunder and to cash collateralize (at 105% of the face
      amount) any letters of credit issued by Administrative Agent or its Affiliates
      (other than the Loans and interest accrued thereon); (v) fifth, to the
      payment of interest accrued on the Loans to each of Lenders based on their
      respective pro-rata shares; and to the payment (pari passu with the foregoing)
      of any Interest/Currency Hedge Obligations; (vi) sixth, to the payment of the
      Loans of each of Lenders, in such order as each Lender determines in its
      absolute discretion; and (vii) seventh, to the payment of the other Loan
      Obligations based on each Lender’s respective pro-rata shares.  Any
      remaining amounts shall be applied to payment of all the Obligations to
      Administrative Agent.  Any further remaining amounts shall be paid to
      Borrower or such other Persons as shall be legally entitled
      thereto.  Except as expressly provided otherwise herein, Lenders may
      apply, and reverse and reapply, payments and proceeds of the Collateral to
      the
      Loan Obligations in such order and manner as Lenders determine in their absolute
      discretion.  Borrower hereby irrevocably waives the right to direct
      the application of payments and proceeds of the
      Collateral.  Notwithstanding the foregoing, the Administrative Agent
      and the Lenders may, with respect to the Aggregate Floorplan Loan Facility
      apply: (i) at any time, payments to reduce finance charges first and then
      principal, regardless of Borrower’s instructions; and (ii) principal
      payments to the oldest (earliest) invoice for Collateral financed by
      Administrative Agent and Lenders under the Aggregate Floorplan Loan Facility
      (including the Interim Floorplan Loan Facility), but, in any event, all
      principal payments will first be applied to such Collateral financed by
      Administrative Agent and Lenders under the Aggregate Floorplan Loan Facility
      (including the Interim Floorplan Loan Facility) which is sold, lost, stolen,
      damaged, rented, leased, or otherwise disposed of or unaccounted
      for.

     

    16.5.      Limitation
      of Liability; Waiver.  Administrative Agent and Lenders shall
      not be liable to Borrower as a result of any commercially reasonable possession,
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    sale
      by
      Administrative Agent of Collateral; and Borrower hereby waives all rights of
      redemption from any such sale and the benefit of all valuation, appraisal and
      exemption Laws.  If Administrative Agent seeks to take possession of
      any of the Collateral by replevin or other court process, Borrower hereby
      irrevocably waives (i) the posting of any bonds, surety and security
      relating thereto required by any statute, court rule or otherwise as an incident
      to such possession, (ii) any demand for possession of the Collateral prior
      to the commencement of any suit or action to recover possession thereof,
      (iii) any requirement that Administrative Agent retain possession and not
      dispose of any Collateral until after trial or final judgment, and (iv) to
      the extent permitted by applicable Law, all rights to notice and hearing prior
      to the exercise by Administrative Agent of Administrative Agent’s right to
      repossess the Collateral without judicial process or to replevy, attach or
      levy
      upon the Collateral without notice or hearing.  Administrative Agent
      shall have no obligation to preserve rights to the Collateral or to marshal
      any
      Collateral for the benefit of any Person.

     

    16.6.     Notice.  Any
      notice of intended action required to be given by Administrative Agent
      (including notice of a public or private sale of Collateral), if given as
      provided in Section 20.1 at least 10 days prior to such proposed action,
      shall be effective and constitute reasonable and fair notice to
      Borrower.

     

    17.           Administrative
      Agent and Lenders.

     

    17.1.     Appointment,
      Powers, and Immunities.  CDF is hereby appointed
      Administrative Agent hereunder and under each of the other Loan
      Documents.  Each Lender hereby irrevocably appoints and authorizes the
      Administrative Agent to act as its agent under this Agreement and the other
      Loan
      Documents with such powers and discretion as are specifically delegated to
      the
      Administrative Agent by the terms of this Agreement and the other Loan
      Documents, together with such other powers as are reasonably incidental
      thereto.  The Administrative Agent (which term as used in this
      sentence and in Section 18.5 and the first sentence of Section 18.6
      hereof shall include its Affiliates and its own and its Affiliates’ officers,
      directors, employees, representatives, and agents):  (a) shall
      not have any duties or responsibilities except those expressly set forth in
      this
      Agreement and shall not be a trustee or fiduciary for any Lender; (b) shall
      not be responsible to the Lenders for any recital, statement, representation,
      or
      warranty (whether written or oral) made in or in connection with any Loan
      Document or any certificate or other document referred to or provided for in,
      or
      received by any of them under, any Loan Document, or for the value, validity,
      effectiveness, genuineness, enforceability, or sufficiency of any Loan Document,
      or any other document referred to or provided for therein or for any failure
      by
      any Covered Person or any other Person to perform any of its obligations
      thereunder; (c) shall not be responsible for or have any duty to ascertain,
      inquire into, or verify the performance or observance of any covenants or
      agreements by any Covered Person or the satisfaction of any condition or to
      inspect the property (including the books and records) of any Covered Person
      or
      any of its Subsidiaries; (d) shall not be required to initiate or conduct
      any litigation or collection proceedings under any Loan Document (other than
      normal collection procedures from the Lockboxes); and (e) shall not be
      responsible for any action taken or omitted to be taken by it under or in
      connection with any Loan Document, except for its own gross negligence or
      willful misconduct.  The Administrative 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 with reasonable
      care.

     

    17.2.     Reliance
      by Administrative Agent.  The Administrative Agent shall be
      entitled to rely upon any certification, notice, instrument, writing, or other
      communication (including, without limitation, any thereof by telephone or
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    have
      been
      signed, sent or made by or on behalf of the proper Person or Persons, and upon
      advice and statements of legal counsel (including counsel for any Covered
      Person), independent accountants, and other experts selected by the
      Administrative Agent.  The Administrative Agent may deem and treat the
      payee of any Note as the holder thereof for all purposes hereof unless and
      until
      the Administrative Agent receives and accepts an Assignment and Acceptance
      executed in accordance with this Agreement.  As to any matters not
      expressly provided for by this Agreement, the Administrative Agent shall not
      be
      required to exercise any discretion or take any action, but shall be required
      to
      act or to refrain from acting (and shall be fully protected in so acting or
      refraining from acting) upon the instructions of the Required Lenders, and
      such
      instructions shall be binding on all of the Lenders; provided,
however, that the Administrative Agent shall not be required to take
      any
      action that exposes the Administrative Agent to personal liability or that
      is
      contrary to any Loan Document or applicable Law or unless it shall first be
      indemnified to its satisfaction by the Lenders against any and all liability
      and
      expense which may be incurred by it by reason of taking any such
      action.

     

    17.3.     Employment
      of Administrative Agents and Counsel.  Administrative Agent
      may execute any of its duties hereunder by or through employees, agents, and
      attorneys-in-fact and shall not be liable to any Lender, except with respect
      to
      money or securities received by it or such agents or attorneys-in-fact, for
      the
      default or misconduct of any such agents or attorneys-in-fact selected by it
      with reasonable care.  Administrative Agent shall be entitled to
      advice of counsel concerning all matters pertaining to the agency hereby created
      and its duties hereunder and shall not be liable to any Lender for acting or
      failing to act as advised by such counsel, except where doing so violates an
      express obligation of Administrative Agent under the Loan
      Documents.

     

    17.4.     Defaults.  The
      Administrative Agent shall not be deemed to have knowledge or notice of the
      occurrence of a Default or Event of Default unless the Administrative Agent
      has
      received written notice from a Lender or the Borrower specifying such Default
      or
      Event of Default and stating that such notice is a “Notice of
      Default”.  In the event that the Administrative Agent receives such a
      written notice of the occurrence of a Default or Event of Default, the
      Administrative Agent shall promptly give notice thereof to the
      Lenders.  The Administrative Agent shall (subject to Section 17.2
      hereof) take such action with respect to such Default or Event of Default as
      shall be directed by the Required Lenders, providedthat, unless
      and until the Administrative Agent shall have received such directions, the
      Administrative Agent may (but shall not be obligated to) take such action,
      or
      refrain from taking such action, with respect to such Default or Event of
      Default as it shall deem advisable in the best interest of the
      Lenders.

     

    17.5.     Rights
      as Lender.  With respect to its Commitments and the Loans
      made by it, CDF (and any successor acting as Administrative Agent) in its
      capacity as a Lender hereunder shall have the same rights and powers hereunder
      as any other Lender and may exercise the same as though it were not acting
      as
      the Administrative Agent, and the term “Lender” or “Lenders” shall, unless the
      context otherwise indicates, include the Administrative Agent in its individual
      capacity as a Lender.  CDF (and any successor acting as Administrative
      Agent) and its Affiliates may (without having to account therefor to any Lender)
      accept deposits from, lend money to, make investments in, provide services
      to,
      and generally engage in any kind of lending, trust, or other business with
      any
      Covered Person or any of its Subsidiaries or Affiliates or any Guarantor as
      if
      it were not acting as Administrative Agent, and CDF (and any successor acting
      as
      Administrative Agent) and its Affiliates may accept fees and other consideration
      from any Covered Person or any of its Subsidiaries or Affiliates or any
      Guarantor for services in connection with this Agreement or otherwise without
      having to account for the same to Lenders.

     

    
      
        
        

      

      
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    17.6.     Indemnification.  The
      Lenders agree to reimburse and indemnify the Administrative Agent (to the extent
      not reimbursed under the terms of Section 18.6, but without limiting the
      obligations of the Borrower under such Section) in accordance with their
      respective pro-rata shares, for any and all liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses (including
      reasonable attorneys’ fees), or disbursements of any kind and nature whatsoever
      that may be imposed on, incurred by or asserted against the Administrative
      Agent
      (including by any Lender) in any way relating to or arising out of any Loan
      Document or the transactions contemplated thereby or any action taken or omitted
      by the Administrative Agent under any Loan Document; provided that no
      Lender shall be liable for any of the foregoing to the extent they arise from
      the gross negligence or willful misconduct of the Person to be
      indemnified.  Without limitation of the foregoing, each Lender agrees
      to reimburse the Administrative Agent promptly upon demand for its pro-rata
      share of any costs or expenses payable by the Borrower to Administrative Agent
      under this Agreement or the other Loan Documents, to the extent that the
      Administrative Agent is not promptly reimbursed for such costs and expenses
      by
      the Borrower.  If Lenders reimburse Administrative Agent and
      Administrative Agent subsequently receives reimbursement from Borrower,
      Administrative Agent shall promptly remit to the Lenders (without interest)
      their pro-rata share of such reimbursement received from Borrower.  If
      Administrative Agent is for any reason compelled to surrender any payment or
      any
      proceeds of the Collateral because such payment or the application of such
      proceeds is for any reason invalidated, declared fraudulent, set aside, or
      determined to be void or voidable as a preference, an impermissible set-off,
      or
      a diversion of trust funds, then this Agreement and the Loan Obligations to
      which such payment or proceeds was applied or intended to be applied shall
      be
      revived as if such application was never made, and to the extent Administrative
      Agent has been compelled to surrender any such payment or proceeds which have
      been distributed by Administrative Agent to a Lender and Borrower has not repaid
      such amounts immediately upon demand by Administrative Agent, such Lender shall
      be liable to pay, and shall promptly on demand pay, to Administrative Agent
      the
      amount of any such payments or proceeds so received by Lender and surrendered
      by
      Administrative Agent, and shall indemnify Administrative Agent for and hold
      Administrative Agent harmless from any loss with respect to payments or proceeds
      received by such Lender and surrendered by Administrative Agent.  The
      agreements contained in this Section shall survive payment in full of the Loans
      and all other amounts payable under this Agreement and the termination of the
      Commitments.

     

    17.7.     Notification
      of Lenders.  Each Lender agrees to use commercially
      reasonable efforts (but no Lender shall have liability to any other Lender
      or
      Administrative Agent for failure to use such commercially reasonable efforts,
      unless such failure is due to a Lender’s willful misconduct in not using such
      commercially reasonable efforts), upon becoming actually aware of anything
      which
      has or is reasonably likely to have a Material Adverse Effect on any Covered
      Person, including any Guarantor, to promptly notify Administrative Agent
      thereof.  Administrative Agent shall promptly deliver to each Lender
      copies of every written notice, demand, report (including any financial report),
      or other writing which Administrative Agent gives to or receives from Borrower
      or any Lender, or of which Administrative Agent, in its capacity as a Lender
      otherwise becomes actually aware, and which itself (a) constitutes, or
      which contains information about, something that has or is reasonably likely
      to
      have a Material Adverse Effect on any Covered Person, including any Guarantor,
      or (b) is otherwise delivered to Administrative Agent by Borrower pursuant
      to the Loan Documents and is deemed material information by Administrative
      Agent
      in its sole discretion.  Any Lender may specifically request certain
      information regarding any Covered Person which it reasonably believes is in
      the
      possession of Administrative Agent.  Administrative Agent and its
      directors, officers, agents, and employees shall have no liability to any Lender
      for failure to deliver any such item to such Lender unless the failure
      constitutes gross negligence or willful misconduct.

     

    
      
        
        

      

      
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    17.8.     Non-Reliance
      on Agent and Other Lenders.  Each Lender agrees that it has,
      independently and without reliance on the Administrative Agent or any other
      Lender, and based on such documents and information as it has deemed
      appropriate, made its own credit analysis of the Covered Persons and their
      Subsidiaries and the Guarantors and its own decision to enter into this
      Agreement and that it will, independently and without reliance upon the
      Administrative 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 the Loan
      Documents.  Except for notices, reports, and other documents and
      information expressly required to be furnished to the Lenders by the
      Administrative Agent hereunder, the Administrative Agent shall not have any
      duty
      or responsibility to provide any Lender with any credit or other information
      concerning the affairs, financial condition, or business of any Covered Person
      or any of its Subsidiaries or Affiliates or any of the Guarantors that may
      come
      into the possession of the Administrative Agent or any of its
      Affiliates.

     

    17.9.     Resignation.  The
      Administrative Agent may resign at any time by giving notice thereof to the
      Lenders and the Borrower.  Upon any such resignation, the Required
      Lenders shall have the right to appoint a successor Administrative
      Agent.  Effective with such resignation, the resigning Administrative
      Agent shall assign (at Borrower’s sole cost and expense) all Security Interests
      and liens in the Collateral, security documents and UCC filings, and do all
      other things reasonably necessary so as to assign and transfer the Security
      Interests in the Collateral (including, all documents effectuating or evidencing
      such Security Interests) to any successor Administrative Agent.  The
      successor Administrative Agent appointed by the Required Lenders shall be a
      Lender.  If no successor Administrative Agent shall have been so
      appointed by the Required Lenders and shall have accepted such appointment
      within thirty (30) days after the retiring Administrative Agent’s giving of
      notice of resignation, then the retiring Administrative Agent may, on behalf
      of
      the Lenders, appoint a successor Administrative Agent which shall be a
      commercial bank or other financial institution organized under the laws of
      the
      United States of America or any state thereof having combined capital and
      surplus of at least $300,000,000.  Upon the acceptance of any
      appointment as Administrative Agent hereunder by a successor, such successor
      shall thereupon succeed to and become vested with all the rights, powers,
      discretion, privileges, and duties of the retiring Administrative Agent, and
      the
      retiring Administrative Agent shall be discharged from its duties and
      obligations hereunder.  After any retiring Administrative Agent’s
      resignation hereunder as Administrative Agent, the provisions of this Section
      shall continue in effect for its benefit in respect of any actions taken or
      omitted to be taken by it while it was acting as Administrative
      Agent.

     

    17.10.   Collections
      and Distributions to Lenders by Administrative Agent.  Except
      as otherwise provided in this Agreement, including the other provisions of
      this
      Agreement pertaining to interest on the Floorplan Loans and the Interim
      Floorplan Loans and the provisions of Section 4.5 pertaining to the
      suspension or reduction of payments of principal and interest to the Lenders
      under certain circumstances, all payments of interest, fees, principal and
      other
      amounts received by Administrative Agent for the account of Lenders shall be
      distributed by Administrative Agent to Lenders in accordance with their pro-rata
      shares of the outstanding Loan Obligations at the time of such distribution
      by
      wire transfer of same day funds to Lenders as provided in this Agreement (or
      entirely to Administrative Agent in the case of payments of interest, fees
      or
      principal with respect to the Swingline Loan) on the Settlement Date following
      the date when received, unless received after 12:00 noon (Local Time) on
      the Business Day preceding a Settlement Date, in which case they shall be so
      distributed by 12:00 noon (Local Time) on the next Settlement
      Date.  All amounts received by any Lender on account of the Loan
      Obligations, including amounts received by way of setoff, shall be paid over
      promptly to Administrative Agent for distribution to Lenders as provided above
      in this Section.  Such 

     

    
      
        
        

      

      
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    distributions
      shall be made according to instructions that each Lender may give to
      Administrative Agent from time to time.

     

    17.11.     Provision
      Regarding Payments.  Lenders agree that the Lenders shall be
      obligated to make any required purchase and or sale from another Lender on
      a
      Settlement Date or required reimbursement to Administrative Agent following
      the
      termination of the Lenders obligations to make Advances under Sections 16.3.1
      and 16.3.2 of this Agreement.  The parties acknowledge and agree that
      the provisions of this Section 17.11 are solely for the benefit of
      Administrative Agent and the Lenders and not for Borrower or any other
      Person.

     

    18.         General.

     

    18.1.       Lenders’
      Right to Cure.  Administrative Agent or any Lender may (but
      shall not be obligated to), from time to time, in its absolute discretion,
      for
      Borrower’s account and at Borrower’s expense, pay (or, with the consent of
      Required Lenders, make a Revolving Loan Advance, or Floorplan Loan Advance
      to
      pay) any amount or do any act required of Borrower hereunder or requested by
      Administrative Agent or Required Lenders to preserve, protect, maintain or
      enforce the Loan Obligations, the Collateral or Administrative Agent’s Security
      Interests therein for the benefit of Lenders, and which Borrower fails to pay
      or
      do, including payment of any judgment against Borrower, insurance premium,
      Taxes, warehouse charge, finishing or processing charge, landlord’s claim, and
      any other Security Interest upon or with respect to the
      Collateral.  All payments that Lenders make pursuant to this Section
      and all reasonable out-of-pocket costs and expenses that Lenders pay or incur
      in
      connection with any action taken by them hereunder shall be a part of the Loan
      Obligations, the repayment of which shall be secured by the
      Collateral.  Any payment made or other action taken by Lenders
      pursuant to this Section shall be without prejudice to any right to assert
      an
      Event of Default hereunder and to pursue Lender’s other rights and remedies with
      respect thereto.

     

    18.2.       Rights
      Not Exclusive.  Every right granted to Administrative Agent
      and Lenders hereunder or under any other Loan Document or allowed to it at
      law
      or in equity shall be deemed cumulative and may be exercised from time to
      time.

     

    18.3.       Survival
      of Agreements.  All covenants and agreements made herein and
      in the other Loan Documents shall survive the execution and delivery of this
      Agreement, the Notes and other Loan Documents and the making of every
      Advance.  All agreements, obligations and liabilities of Borrower
      under this Agreement concerning the payment of money to Administrative Agent
      and
      Lenders, including Borrower’s obligations under Sections 18.5 and 18.6, but
      excluding the obligation to repay the Loans and interest accrued thereon, shall
      survive the repayment in full of the Loans and interest accrued thereon, whether
      or not indefeasible, the return of the Notes to Borrower and the termination
      of
      the Commitments.

     

    18.4.       Assignments.

     

    18.4.1.         
      Permitted Assignments.  At any time after the
      Execution Date, any Lender may assign to one or more Eligible Assignees all
      or a
      portion of its rights and obligations under this Agreement (including all or
      a
      portion of the Notes payable to it, its Commitments and its Loans), provided
      that the terms of assignment satisfy the following requirements:

     

    18.4.1.1.  If
      there is no Existing Default, Borrower shall have approved the
      assignment.

     

    
      
        
        

      

      
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    18.4.1.2.  Administrative
      Agent shall have accepted the assignment, which acceptance shall not be
      unreasonably withheld; provided, however, that if the Commitments have been
      terminated and the Loan Obligations accelerated by the Required Lenders, then
      Administrative Agent’s consent shall not be required.

     

    18.4.1.3.  Each
      such assignment shall be of a constant, and not a varying, percentage of all
      of
      the assigning Lender’s rights and obligations under this Agreement.

     

    18.4.1.4.  For
      each assignment involving the issuance and transfer of Notes, the assigning
      Lender shall execute an Assignment and Acceptance in the form attached hereto
      as
      Exhibit 18.4.1 together with any Note subject to such assignment and a
      processing fee of $4,000.

     

    18.4.1.5.  The
      minimum Commitment which shall be assigned (which shall include the applicable
      portion of the assigning Lender’s Revolving Loan Commitment, and Floorplan Loan
      Facility, and the Letter of Credit Facility (and in the case of Administrative
      Agent, the Swingline Commitment and the Interim Floorplan Loan Facility)) is
      $5,000,000 or such lesser amount which constitutes such Lender’s entire
      Commitment; provided, however, that no such minimum shall apply between a Lender
      and its Affiliates, or between one Lender and another Lender or to an assignment
      of all of a Lender’s rights and obligations under this Agreement.

     

    18.4.1.6.  The
      assignee shall have an office located in the United States and is otherwise
      an
      Eligible Assignee.

     

    Upon
      execution, delivery, and acceptance of such Assignment and Acceptance, the
      assignee thereunder shall be a party hereto and, to the extent of such
      assignment, have the obligations, rights, and benefits of a Lender hereunder
      and
      the assigning Lender shall, to the extent of such assignment, relinquish its
      rights and be released from its obligations under this
      Agreement.  Upon the consummation of any assignment pursuant to this
      Section, the assignor, the Administrative Agent and the Borrower shall make
      appropriate arrangements so that, if required, new Notes are issued to the
      assignor and the assignee. If the assignee is not incorporated under the laws
      of
      the United States of America or a state thereof, it shall deliver to the
      Borrower and the Administrative Agent certification as to the exemption from
      deduction or withholding of Taxes in accordance with
      Section 4.11.

     

    18.4.2.            Register;
      Consequences and Effect of Assignments.

     

    18.4.2.1.  From
      and after the effective date specified in any Assignment and Acceptance, the
      assignee shall be deemed and treated as a party to this Agreement and, to the
      extent that rights and obligations hereunder and under the Notes held by the
      assignor have been assigned or negotiated to the assignee pursuant to such
      Assignment and Acceptance, to have the rights and obligations of a Lender
      hereunder as fully as if such assignee had been named as a Lender in this
      Agreement and of a holder of such Notes, and the assignor shall, to the extent
      that rights and obligations hereunder or under such Notes have been assigned
      or
      negotiated by it pursuant to such Assignment and Acceptance, relinquish its
      rights and be released from its future obligations under this
      Agreement.

     

    
      
        
        

      

      
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    18.4.2.2.  By
      executing and delivering an Assignment and Acceptance, the assignor thereunder
      and the assignee confirm to and agree with each other and the other parties
      hereto substantially as follows:  (i) the assignment made under
      such Assignment and Acceptance is made without recourse; (ii) such assignor
      makes no representation or warranty and assumes no responsibility with respect
      to the financial condition of any Covered Person or Guarantor or the performance
      or observance by any Covered Person or Guarantor of any of its Loan Obligations;
      (iii) such assignee confirms that it has received a copy of this Agreement,
      together with copies of the Financial Statements and such other Loan Documents
      and other documents and information as 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
      Administrative Agent, such assignor, or any other Lender, and based on such
      documents and information as it deems appropriate at the time, continue to
      make
      its own credit decisions in taking or not taking action under this Agreement;
      (v) such assignee appoints and authorizes Administrative Agent to take such
      action as agent on its behalf and to exercise such powers under this Agreement
      and the other Loan Documents as are delegated to Administrative 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
      are
      required to be performed by it as a Lender and a holder of a Note.

     

    18.4.2.3.  The
      Administrative Agent shall maintain at its address referred to herein a copy
      of
      each Assignment and Acceptance delivered to and accepted by it and a register
      for the recordation of the names and addresses of the Lenders and the Commitment
      of, and principal amount of Loans owing to, each Lender from time to time (the
      “Register”).  The entries in the Register shall be conclusive and
      binding for all purposes, absent manifest error, and the Borrower, the
      Administrative Agent and the 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 the
      Borrower or any Lender at any reasonable time and from time to time upon
      reasonable prior notice.  Upon its receipt of an Assignment and
      Acceptance executed by the parties thereto, together with any Note subject
      to
      such assignment and payment of the processing fee, the Administrative Agent
      shall, if such Assignment and Acceptance has been completed and is in
      substantially the form of Exhibit 18.4.1 hereto, (i) accept such
      Assignment and Acceptance, (ii) record the information contained therein in
      the Register and (iii) give prompt notice thereof to the parties thereto
      and to Borrower.

     

    18.4.3.           
      Administrative Agent to Retain Copies of Assignments and
      Acceptances.  Administrative Agent shall maintain a copy of
      each Assignment and Acceptance delivered to and accepted by it.

     

    18.4.4.             Notice
      to Borrower of Assignment.  Upon its receipt of an Assignment
      and Acceptance executed by an assigning Lender, if Administrative Agent accepts
      the assignment contemplated thereby, Administrative Agent shall give prompt
      notice thereof to Borrower.  If Borrower consents to the assignment
      contemplated thereby (Borrower agrees such consent shall not be unreasonably
      withheld or delayed), Borrower shall 

     

    
      
        
        

      

      
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    execute
      and deliver replacement Notes to the assignor and assignee as requested by
      Administrative Agent and necessary to give effect to the assignment; provided,
      however, no consent of Borrower to any assignment shall be required during
      an
      Existing Default.  If Borrower fails or refuses to execute and deliver
      such replacement Notes, Administrative Agent may, as agent and attorney-in-fact
      for Borrower, execute and deliver such replacement Notes on behalf of
      Borrower.  Borrower hereby appoints Administrative Agent as its agent
      and attorney-in-fact for such purpose and acknowledges that such power is
      coupled with an interest and therefore irrevocable until the Loan Obligations
      have been indefeasibly paid in full in cash, the Commitments have terminated,
      no
      Letters of Credit are outstanding and the Letter of Credit Exposure is
      irreversibly zero and the Administrative Agent and the Lenders have no other
      commitment to extend credit or make advances to or for the account of
      Borrower.  Administrative Agent shall not have any liability to
      Borrower or anyone else, including any Lender, as a consequence of exercising
      the power granted to Administrative Agent in the foregoing sentence in any
      instance, except in cases of Administrative Agent’s gross negligence or willful
      misconduct.

     

    18.4.5.               Assignment
      to Federal Reserve Bank.  Notwithstanding any other provision
      set forth in this Agreement, any Lender may at any time assign and pledge all
      or
      any portion of its Loans and its Notes to any Federal Reserve Bank as collateral
      security pursuant.  No such assignment shall release the assigning
      Lender from its obligations hereunder.

     

    18.4.6.               Information.  Any
      Lender or Administrative Agent may furnish any information concerning the
      Borrower or any of its Subsidiaries in the possession of such Lender or
      Administrative Agent, as the case may be, from time to time to assignees,
      affiliates or participants (including prospective assignees and
      participants)  Administrative Agent or such Lender will use reasonable
      efforts to provide notice to Borrower prior to disclosing any such information,
      but shall have no liability for failure to provide such notice unless failure
      was willful.

     

    18.4.7.               Sale
      of Participations.  No Lender may sell participations in its
      Loans to any other Person; provided, however, any Lender may sell such
      participations as it may be required to do under any applicable Law or as
      otherwise instructed to do so by any Governmental Authority.

     

    18.5.       Payment
      of Expenses.  Borrower agrees to pay or reimburse to
      Administrative Agent all of Administrative Agent’s reasonable out-of-pocket
      costs incurred in connection with Administrative Agent’s due diligence review
      before execution of the Loan Documents; the negotiation and preparation of
      proposals, a commitment letter and the Loan Documents; the syndication of the
      Loans; the administration of this Agreement, the Loan Documents and the Loans;
      the perfection of Administrative Agent’s Security Interests in the Collateral;
      the interpretation of any of the Loan Documents; the enforcement of
      Administrative Agent’s rights and remedies under the Loan Documents after a
      Default or Event of Default; any amendment of or supplementation to any of
      the
      Loan Documents; and any waiver, consent or forbearance with respect to any
      Default or Event of Default.  Administrative Agent’s reasonable
      out-of-pocket costs may include but are not limited to the following, to the
      extent they are actually paid or incurred by Administrative Agent: title
      insurance fees and premiums; the cost of searches for Security Interests
      existing against Covered Persons or Guarantors; recording and filing fees and
      taxes; appraisal fees; environmental consultant fees; litigation costs; and
      reasonable attorneys’ and paralegals’ expenses and reasonable
      fees.  Attorneys’ and paralegals’ expenses may include 

     

    
      
        
        

      

      
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    but
      are
      not limited to filing charges; telephone, data transmission, facsimile and
      other
      communication costs; courier and other delivery charges; and photocopying
      charges.  Litigation costs may include but are not limited to filing
      fees, deposition costs, expert witness fees, expenses of service of process,
      and
      other such costs paid or incurred in any administrative, arbitration, or court
      proceedings involving a Lender and any Covered Person, including proceedings
      under the Bankruptcy Code.  All costs which Borrower is obligated to
      pay or reimburse Administrative Agent are Loan Obligations payable to
      Administrative Agent and are payable on demand by Administrative
      Agent.

     

    18.6.      General
      Indemnity.

     

    18.6.1.  Borrower
      agrees to indemnify and hold harmless Administrative Agent, each Lender, the
      Letter of Credit Issuer, and each of their affiliates and their respective
      officers, directors, employees, attorneys, representatives, agents, and advisors
      (each, an “Indemnified Party”) from and against any and all claims,
      damages, losses, liabilities, costs, and expenses (including, without
      limitation, reasonable attorneys’ fees) that may be incurred by or asserted or
      awarded against any Indemnified Party, in each case arising out of or in
      connection with or by reason of (including, without limitation, in connection
      with any investigation, litigation, or proceeding or preparation of defense
      in
      connection therewith) the Loan Documents, any of the transactions contemplated
      herein or the actual or proposed use of the proceeds of the Loans (including,
      without limitation, any payments made by Administrative Agent to any Person
      (other than Borrower) who is a party to any blocked account and/or lockbox
      agreement, including, without limitation, any indemnity payments by
      Administrative Agent thereunder), or the manufacture, storage, transportation,
      release or disposal of any Hazardous Material on, from, over or affecting any
      of
      the Collateral or any of the assets, properties, or operations of any Covered
      Person or any predecessor in interest, directly or indirectly, except to the
      extent such claim, damage, loss, liability, cost, or expense is found in a
      final, non-appealable judgment by a court of competent jurisdiction to have
      resulted from such Indemnified Party’s gross negligence or willful
      misconduct.  In the case of an investigation, litigation or other
      proceeding to which the indemnity in this Section applies, such indemnity shall
      be effective whether or not such investigation, litigation or proceeding is
      brought by the Borrower, its directors, shareholders or creditors or an
      Indemnified Party or any other Person or any Indemnified Party is otherwise
      a
      party thereto and whether or not the transactions contemplated hereby are
      consummated.  The Borrower agrees not to assert and agrees that it
      will not direct any other Covered Person to assert, any claim against any
      Indemnified Party, on any theory of liability, for special, indirect,
      consequential, exemplary or punitive damages arising out of or otherwise
      relating to the Loan Documents, any of the transactions contemplated herein
      or
      the actual or proposed use of the proceeds of the Loans.  Borrower
      also agrees to pay, indemnify and hold harmless the Indemnified Parties for,
      from and against, and shall promptly reimburse the Indemnified Parties for,
      any
      and all claims, damages, liabilities, losses, costs and expenses (including
      reasonable attorneys’ fees and expenses and amounts paid in settlement)
      incurred, paid or sustained by the Indemnified Parties, or enforcement by
      Administrative Agent of any of its rights with respect thereto, except to the
      extent such claim, damage, loss, liability, cost, or expense is found in a
      final, non-appealable judgment by a court of competent jurisdiction to have
      resulted from such Indemnified Party’s gross negligence or willful
      misconduct.  Each Borrower covenants and agrees to assume liability
      for and to protect, indemnify and hold harmless the Administrative Agent, each
      of the Lenders, and the Letter of Credit Issuer from any and all liabilities,
      obligations, damages, penalties, claims, causes of action, costs, charges and
      expenses (including without limitation,

     

    
      
        
        

      

      
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    attorneys’
      fees), which may be incurred by, imposed or asserted against the Administrative
      Agent, any Lender, or the Letter of Credit Issuer, howsoever arising or incurred
      because of. out of or in connection with the disbursements of Revolving Loans,
      Swingline Loans, Interim Floorplan Loans, or Floorplan Loans in accordance
      with
      Section 2.10; provided, however, the liability of the Borrowers pursuant to
      this indemnity shall not extend to any liability, obligation, damage, penalty,
      claim, cause of action, cost, charge or expense caused by or arising out of
      the
      gross negligence or willful misconduct of the Administrative Agent, the Lenders
      or the Letter of Credit Issuer.  Borrower:  (i) is
      obligated to pay any Loan Obligation even if any Collateral is defective or
      fails to conform to any warranties extended by any third party; (ii) shall
      not assert against Administrative Agent, any Lender, the Letter of Credit Issuer
      or any other Indemnified Party any claim or defense Borrower has against any
      third party; and (iii) indemnify and hold Administrative Agent, any Lender,
      the Letter of Credit Issuer and any other Indemnified Party harmless against
      all
      claims and defenses asserted by any buyer of the Collateral relating to the
      condition of, or any representations regarding, any of the
      Collateral.  Borrower irrevocably waives all rights of offset and
      counterclaims Borrower may have against Administrative Agent, any Lender, or
      the
      Letter of Credit Issuer, except counterclaims arising in cases of Administrative
      Agent’s, Lender’s or the Letter of Credit Issuer’s gross negligence or willful
      misconduct.

     

    18.6.2.   
      The obligations of Borrower under this Section 18.6 shall survive the
      termination of the Commitments, the indefeasible full payment in cash and
      satisfaction of all of the Loan Obligations, and the release of the
      Collateral.  All amounts, obligations and liabilities referred to in
      Section 18.6.1 shall be deemed to be a part of the Loan Obligations and
      shall be paid to Administrative Agent on demand.

     

    18.6.3.   
      To the extent that any of the indemnities required from Borrower under this
      Section are unenforceable because they violate any Law or public policy,
      Borrower shall pay the maximum amount which it is permitted to pay under
      applicable Law.

     

    18.6.4.  
       The foregoing indemnification shall not apply to the extent such
      liabilities and costs are determined to have resulted or been caused, in whole
      or in part, by the gross negligence or willful misconduct on the part of such
      Indemnified Party.  THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER
      OR NOT SUCH LIABILITIES AND COSTS ARE IN ANY WAY OR TO ANY EXTENT CAUSED, IN
      WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND EXCEPT AS
      PROVIDED BY THE IMMEDIATELY PRECEDING SENTENCE.

     

    18.6.5.     
      In exchange for, among other things, Administrative Agent’s agreement to make
      any payments to any Person (other than Borrower or a Covered Person) who is
      a
      party to any blocked account, lockbox agreement, bailee letter, landlord waiver
      or other similar agreement entered into in connection herewith (including any
      indemnity payments by Administrative Agent thereunder, collectively, “Third
      Person Reimbursement Agreements”), Borrower hereby indemnifies, releases,
      discharges and acquits forever Administrative Agent and each Lender and any
      of
      their respective officers, directors, servants, agents, employees and attorneys,
      past, present and future, from any and all claims, demands and causes of action,
      of whatever nature, whether in contract or tort, accrued or to accrue,
      contingent or vested, known or unknown, running in favor of Borrower or any
      Covered Person arising out of or relating to such Third Person Reimbursement
      Agreements, except those arising from Administrative Agent’s or any Lender’s
      gross negligence or willful misconduct.

     

    
      
        
        

      

      
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    18.7.        Letters
      of Credit.  Borrower assumes all risks of the acts or
      omissions of any beneficiary of any of the Letters of Credit.  Neither
      Letter of Credit Issuer, Administrative Agent, any Lender nor any of their
      respective directors, officers, employees, agents, or representatives shall
      be
      liable or responsible for: (a) the use which may be made of any of the Letters
      of Credit or for any acts or omissions of beneficiary in connection therewith;
      (b) the validity, sufficiency or genuineness of documents, or of any
      endorsement(s) thereon, even if such documents should in fact prove to be in
      any
      or all respects invalid, insufficient, fraudulent or forged, unless such
      invalidity, insufficiency, fraudulence, or forgery is due to the gross
      negligence or willful misconduct of the Letter of Credit Issuer; (c) payment
      by
      the Letter of Credit Issuer against presentation of documents which, on their
      face, appear to comply with the terms of any Letter of Credit, even though
      such
      documents may fail to bear any reference or adequate reference to any such
      Letter of Credit, unless such failure is due to the gross negligence or willful
      misconduct of the Letter of Credit Issuer; or (d) any other circumstances
      whatsoever in making or failing to make payment under any Letter of Credit
      in
      connection with which Letter of Credit Issuer would, pursuant to the Uniform
      Customs and Practices for Documentary Credits, International Chamber of Commerce
      Publication No. 600 (as amended or replaced from time to time) with respect
      to documentary letters of credit or the International Standby Practices (ISP98),
      International Chamber of Commerce Publication No. 590 (as amended or
      replaced from time to time), be absolved from liability. In furtherance and
      not
      in limitation of the foregoing, Letter of Credit Issuer may accept documents
      that appear on their face to be in order, without responsibility for further
      investigation, regardless of any notice or information to the
      contrary.

     

    18.8.      Changes
      in Accounting Principles.  If any Covered Person, at the end
      of its fiscal year and with the concurrence of its independent certified public
      accountants, changes the method of valuing the Inventory of such Covered Person,
      or if any other changes in accounting principles from those used in the
      preparation of any of the Financial Statements are required by or result from
      the promulgation of principles, rules, regulations, guidelines, pronouncements
      or opinions by the Financial Accounting Standards Board or the American
      Institute of Certified Public Accountants (or successors thereto or bodies
      with
      similar functions), and any of such changes result in a change in the method
      of
      calculation of, or affect the results of such calculation of, any of the
      financial covenants, standards or terms found herein, then the parties hereto
      agree to enter into and diligently pursue negotiations in order to amend such
      financial covenants, standards or terms so as to equitably reflect such changes,
      with the desired result that the criteria for evaluating the financial condition
      and results of operations of such Covered Person shall be the same after such
      changes as if such changes had not been made; provided, however, that until
      such
      amendments are made, all financial covenants herein and all the provisions
      hereof which contemplate financial calculation hereunder shall remain in full
      force and effect.

     

    18.9.      Loan
      Records.  The date and amount of all Advances to Borrower and
      payments of amounts due from Borrower under the Loan Documents will be recorded
      in the records that Administrative Agent normally maintains for such types
      of
      transactions.  The failure to record, or any error in recording, any
      of the foregoing shall not, however, affect the obligation of Borrower to repay
      the Loans and other amounts payable under the Loan
      Documents.  Borrower shall have the burden of proving that such
      records are not correct.  Borrower agrees that Administrative Agent’s
      and any Lender’s books and records showing the Loan Obligations and the
      transactions pursuant to this Agreement shall be admissible in any action or
      proceeding arising therefrom, and shall constitute prima facie proof thereof,
      irrespective of whether any Loan Obligation is also evidenced by a promissory
      note or other instrument.  Any statement sent by Administrative Agent
      or a Lender to a Covered Person shall be deemed correct, accurate and binding
      on
      Borrower and an account stated (except for reversals and reapplications of
      payments as provided in Section 6.7 and corrections of errors discovered by
      Administrative Agent or a Lender), unless Borrower

     

    
      
        
        

      

      
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    notifies
      Administrative Agent in writing to the contrary within 60 days after such
      statement is rendered (regardless of whether a shorter period is provided for
      in
      any Transaction Statement).  In the event a timely written notice of
      objections is given by Borrower, only the items to which exception is expressly
      made will be considered to be disputed by Borrower.

     

    18.10.    Other
      Security and Guaranties.  Administrative Agent or any Lender
      may, without notice or demand and without affecting Borrower’s obligations
      hereunder, from time to time, for the benefit of the other Lenders and
      Administrative Agent (based upon each Lender’s pro-rata share): (a) take
      from any Person and hold collateral (other than the Collateral) for the payment
      of all or any part of the Loan Obligations and exchange, enforce and release
      such collateral or any part thereof; and (b) accept and hold any
      endorsement or Guaranty of payment of all or any part of the Loan Obligations
      and release or substitute any such endorser or Guarantor, or any Person who
      has
      given any Security Interest in any other collateral as security for the payment
      of all or any part of the Loan Obligations, or any other Person in any way
      obligated to pay all or any part of the Loan Obligations.

     

    18.11.    Loan
      Obligations Payable in Dollars.  All Loan Obligations shall
      be payable only in Dollars.  If, however, to obtain a judgment in any
      court it is necessary to convert a Loan Obligation payable in Dollars into
      another currency, the rate of exchange used shall be that at which
      Administrative Agent, using its customary procedures, could purchase Dollars
      with such other currency in New York, New York on the Business Day immediately
      preceding the day on which such judgment is rendered.  If any sum in
      another currency is paid to a Lender or received by a Lender and applied to
      a
      Loan Obligation payable in Dollars, such Loan Obligation shall be deemed paid
      and discharged only to the extent of the amount of Dollars that Administrative
      Agent, using its customary procedures, is able to purchase in New York, New
      York
      with such sum on the Business Day immediately following receipt
      thereof.  Borrower agrees to indemnify each Lender against any loss in
      Dollars that it may incur on such Loan Obligation as a result of such payment
      or
      receipt and application to such Loan Obligation.

     

    18.12.    Reimbursement
      Obligations of Borrower.  Each Borrower hereby
      unconditionally agrees to immediately pay to Administrative Agent or any
      Affiliate thereof who issues a letter of credit on Borrower’s behalf or for
      Borrower’s account all amounts required to pay all drafts drawn under any such
      letters of credit issued for the account of Borrower and all reasonable expenses
      incurred by Administrative Agent or any Affiliate thereof who issues any such
      letter of credit in connection with such letters of credit and in any event
      and
      without demand to remit (which may be through obtaining Advances) sufficient
      funds to pay all debts and liabilities arising under any letter of credit issued
      for the account of Borrower.  Borrower assumes all risks of the acts
      or omissions of any beneficiary of any letters of credit issued for the benefit
      of Borrower or for Borrower’s account.  Neither Administrative Agent,
      its Affiliates or any Lender, nor any of their respective directors, officers,
      employees, agents, or representatives shall be liable or responsible for:
      (a) the use which may be made of any of the letters of credit issued for
      the benefit of Borrower or for Borrower’s account or for any acts or omissions
      of beneficiary in connection therewith; (b) the validity, sufficiency or
      genuineness of documents, or of any endorsement(s) thereon, even if such
      documents should in fact prove to be in any or all respects invalid,
      insufficient, fraudulent or forged, unless such invalidity, insufficiency,
      fraudulence, or forgery is due to the gross negligence or willful misconduct
      of
      the Letter of Credit Issuer; (c) payment by Administrative Agent to any of
      its Affiliates in connection with, or payment by any Affiliate of Administrative
      Agent against, presentation of documents which, on their face, appear to comply
      with the terms of any such letter of credit, even though such documents may
      fail
      to bear any reference or adequate reference to any such letter of credit, unless
      such failure is due to the gross negligence or willful misconduct of the Letter
      of Credit Issuer; or (d) any other 

     

    
      
        
        

      

      
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    circumstances
      whatsoever in making or failing to make payment under any letter of credit
      in
      connection with which Administrative Agent would, pursuant to the Uniform
      Customs and Practices for Documentary Credits, International Chamber of Commerce
      Publication No. 600 (as amended or replaced from time to time) with respect
      to documentary letters of credit or the International Standby Practices (ISP98),
      International Chamber of Commerce Publication No. 590 (as amended or
      replaced from time to time) with respect to standby letters of credit, or the
      UCC, be absolved from liability. In furtherance and not in limitation of the
      foregoing, Administrative Agent or any Affiliate thereof may accept documents
      that appear on their face to be in order, without responsibility for further
      investigation, regardless of any notice or information to the
      contrary.  The rights of Administrative Agent and its Affiliates under
      this Section are in addition to other rights and remedies (including, without
      limitation, other rights of set-off) which Administrative Agent and its
      Affiliates may otherwise have.

     

    18.13.    Disclosure.

     

    18.13.1.  Administrative
      Agent and each Lender agrees that it will not disclose to third Persons any
      information that it obtains about Borrower or its operations or finances that
      is
      proprietary in nature or otherwise designated by Borrower in writing as
      confidential or that Borrower has advised Lenders in writing constitutes
      non-public information.

     

    18.13.2.  Administrative
      Agent may obtain from any vendor any credit, financial or other information
      regarding Borrower that such vendor may from time to time possess.

     

    18.13.3.  Notwithstanding
      the terms of Section 18.13.1, Administrative Agent and any Lender may, disclose
      information regarding Borrower, or its operations or finances, to their
      Affiliates, to each other, to each other’s Affiliates, to any actual or
      prospective assignee, participant, trustee or purchaser (including any purchaser
      of any interest in a trust or other special purpose entity), and to all of
      the
      officers, attorneys, auditors, accountants, bank examiners, agents and
      representatives of the foregoing, in connection with the administration or
      the
      securitization, participation, or other disposition of all or any portion of
      the
      Loans or Loan Documents, or the interpretation or enforcement of the Loan
      Documents, or the lending and collection activity contemplated therein, or
      to
      the extent required by Law or a Governmental Authority, or to the extent
      required for the assignment, securitization, participation, or other disposition
      of all or any portion of the Loans or Loan Documents.  Administrative
      Agent or such Lender shall use their reasonable efforts to cause such Persons
      to
      which information is to be disclosed as part of a syndication of the Loans
      to
      execute non-disclosure agreements with respect to such information, but shall
      have no liability for failure to do so, unless such failure is intentionally
      willful.  Notwithstanding the terms of Section 18.13.1, Administrative
      Agent or any Lender may also disclose without restriction any such information
      in any documents that it files in any legal proceeding to pursue, enforce or
      preserve its rights under the Loan Documents.  Notwithstanding the
      terms of Section 18.13.1, Administrative Agent may also disclose customary
      credit, financial, or other information on Borrower in Administrative Agent’s
      possession to Vendors and potential Vendors, credit rating agencies, suppliers
      of Borrower, any Persons liable for the Loan Obligations, or any Person involved
      in the Floorplan Loan Facility or Interim Floorplan Loan Facility, and
      Administrative Agent or such Lender shall use their reasonable efforts to advise
      such Persons that such information is to be treated as confidential, but shall
      have no liability for failure to do so, unless such failure is intentionally
      willful.  Administrative Agent’s and Lenders’ non-disclosure
      obligation shall not apply to any information that (i) is disclosed to
      Administrative Agent or any Lender by a third Person not affiliated with or
      

     

    
      
        
        

      

      
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    employed
      by Borrower who does not, to Administrative Agent’s or such Lender’s knowledge,
      have a commensurate duty of non-disclosure, or (ii) is or becomes publicly
      known
      other than as a result of disclosure by Administrative Agent or a
      Lender.

     

    18.14.     Tax
      Treatment Waiver.  Notwithstanding any provision of this
      Agreement to the contrary, any party hereto (and each employee, representative,
      or other agent of each such party) may disclose to any and all Persons, without
      limitation of any kind, the “tax treatment,” “tax structure,” and “tax
      strategies” of the transactions contemplated hereby and the other Loan Documents
      and all materials of any kind (including opinions or other tax analyses) that
      are provided to such party relating to any such tax treatment, tax structure,
      or
      tax strategy.  This authorization is effective immediately upon the
      Effective Date.  The terms “tax treatment,” “tax structure,” and “tax
      strategies” shall be ascribed the meaning set forth in Treas. Reg. §1.6011-4,
      and this paragraph shall be construed so as to cause the subject transaction
      not
      to have been offered or entered into under conditions of confidentiality as
      described in Treas. Reg. §1.6011-4(b)(3).

     

    18.15.     Termination.

     

    18.15.1.       Termination
      Fee.  Borrower may terminate no less than all of the
      Commitments at any time prior to the second Anniversary Date, upon (a) no less
      than three (3) Business Days prior written notice to Administrative Agent,
      (b)  payment to Administrative Agent of all Loan Obligations in full in
      cash; and (c) the one-time payment of an amount as follows to the
      Administrative Agent for the pro-rata benefit of the Lenders (such payment
      being
      the “Termination Fee”):

     

    
      	
              Date
                of

              Termination

            	
              Percent
                of Aggregate

              Commitments

            
	 	 
	
              On
                or prior to the first

            	
              1.00%

            
	
              Anniversary
                Date

            	 
	 	 
	
              After
                the first Anniversary Date

            	
              .50%
                multiplied by a fraction (A) the numerator of which is the number
                of months from and including month in which payment of all the Loan
                Obligations in full in cash occurs to and including month in which
                the
                Revolving Loan Maturity Date is to occur, and (B) the denominator
                of which
                is 12

            
	 	 

    

    

    The
      foregoing percentages are percentages of the Total Aggregate Facility Limit
      as
      of the Effective Date or, if the Total Aggregate Facility Limit would ever
      be
      increased, such increased amount.  In addition, the Termination Fee
      will also be owing and shall be paid by Borrower if the Commitments are
      terminated on account of an Event of Default.  Notwithstanding the
      foregoing, if the Required Lenders terminate the Aggregate Floorplan Loan
      Facility, and if the Borrower elects to terminate the Aggregate Revolving Loan
      Facility within 60 days following notice of termination of the Aggregate
      Floorplan Loan Facility and repays the Loan Obligations and provides cash
      collateral all  in accordance with Section 3.5.2 (including the time
      limitations contained therein), then Borrower shall not be obligated to pay
      the
      Termination Fee.

     

    
      
        
        

      

      
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    18.15.2.       Liquidated
      Damages.  Each party hereto agrees that any Termination Fee
      represents liquidated damages and is not a penalty.

     

    18.15.3.       Irrevocable;
      Termination of Entire Agreement.  Any notice of termination
      delivered by Borrower to Administrative Agent (which shall be in writing) shall
      be irrevocable.  It is understood that Borrower may elect to terminate
      this Agreement in its entirety only, as provided herein, and no Section,
      Commitment or other portion may be terminated singly.

     

    18.15.4.       Effect
      on Obligations.  No termination will relieve Borrower from
      any Loan Obligations or other obligations to the Lenders or Administrative
      Agent
      under this Agreement and the other Loan Documents

     

    19.           Binding
      Arbitration.

     

    19.1.       Arbitrable
      Claims.  Except as otherwise specified below, all actions,
      disputes, claims and controversies under common law, statutory law or in equity
      of any type or nature whatsoever, whether arising before or after the date
      of
      this Agreement and the Loan Documents, and whether directly or indirectly
      relating to: (a) this Agreement or any amendments, modifications, restatements,
      waivers, and addenda hereto, or the breach, invalidity or termination hereof;
      (b) any previous or subsequent agreement between or among Administrative Agent,
      Lenders, Borrower and any other Covered Person; (c) any act committed by
      Administrative Agent, Lenders or by any parent company, subsidiary or affiliated
      company of Administrative Agent or the Lenders (the “Lender Companies”), or by
      any employee, agent, officer or director of a Lender Company whether or not
      arising within the scope and course of employment or other contractual
      representation of the Lender Companies provided that such act arises under
      a
      relationship, transaction or dealing between Administrative Agent, any Lender,
      Borrower and any other Covered Person; or (d) any other relationship,
      transaction or dealing between or among, Administrative Agent, Lenders, Borrower
      and any Covered Person (collectively, for clauses (a) through and including
      (d),
      the “Disputes”), will be subject to and resolved by binding
      arbitration.  Notwithstanding the foregoing, the parties agree that
      either party may pursue claims against the other that do not exceed Fifteen
      Thousand Dollars ($15,000) in the aggregate in a court of competent
      jurisdiction.  Service of arbitration claims shall be acceptable if
      made by U.S. mail or overnight delivery to the address for the party described
      herein.

     

    19.2.       Administrative
      Body.  All arbitration hereunder will be conducted in
      accordance with the Commercial Arbitration Rules of either: (a) The American
      Arbitration Association (“AAA”); or (b) United States Arbitration &
Mediation (“USA&M”).  The party first filing an arbitration claim
      shall designate which arbitration forum and rules are to be applied for all
      Disputes between the parties.  The arbitration rules are found at
      www.adr.org for AAA, and at www.usam-midwest.com. for USA&M.  AAA
      claims may be filed in any AAA office.  Claims filed with USA&M
      shall be filed in their Midwest office located at 720 Olive Street, Suite 2020,
      St. Louis, Missouri 63101.  All arbitrator(s) selected will be
      attorneys with at least five (5) years secured transactions
      experience.  A panel of three arbitrators shall hear all claims
      exceeding One Million Dollars ($1,000,000), exclusive of interest, costs and
      attorneys’ fees.  The arbitrator(s) will decide if any inconsistency
      exists between the rules of the applicable arbitral forum and the arbitration
      provisions contained herein.  If such inconsistency exists, the
      arbitration provisions contained herein will control and supersede such
      rules.  The arbitrator shall follow the terms of this Agreement and
      the applicable law, including the attorney-client privilege and the attorney
      work product doctrine.

     

    
      
        
        

      

      
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    19.3.       Hearings.  Each
      party hereby consents to a documentary hearing for all arbitration claims,
      by
      submitting the Dispute to the arbitrator(s) by written briefs and affidavits,
      along with relevant documents.  However, arbitration claims will be
      submitted by way of an oral hearing if any party requests an oral hearing within
      thirty (30) days after service of the claim, and that party remits the
      appropriate amount for AAA’s or USA&M’s (as applicable) fees and arbitrator
      compensation within ten (10) days of the designated arbitration association’s
      statement for payment of all fees and arbitrator compensation relating to the
      oral hearing.  Each party agrees that failure to timely pay all fees
      and arbitrator compensation billed to the party requesting the oral hearing
      will
      be deemed such party’s consent to submitting the Dispute to the arbitrator on
      documents and such party’s waiver of its request for an oral
      hearing.  The site of all oral arbitration hearings will be in the
      Division of the Federal Judicial District in which the designated arbitration
      association maintains a regional office that is closest to
      Borrower.

     

    19.4.       Discovery.  Discovery
      permitted in any arbitration proceeding commenced hereunder is limited as
      follows.  No later than forty (40) days after the filing and service
      of a claim for arbitration, the parties in contested cases will exchange
      detailed statements setting forth the facts supporting the claim(s) and all
      defenses to be raised during the arbitration, and a list of all exhibits and
      witnesses.  No later than twenty-one (21) days prior to the oral
      arbitration hearing, the parties will exchange a final list of all exhibits
      and
      all witnesses, including any designation of any expert witness(es) together
      with
      a summary of their testimony; a copy of all documents and a detailed description
      of any property to be introduced at the hearing.  Under no
      circumstances will the use of interrogatories, requests for admission, requests
      for the production of documents or the taking of depositions be
      permitted.  However, if of the designation of any expert witness(es),
      the following will occur: (i) all information and documents relied upon by
      the
      expert witness(es) will be delivered to the opposing party; (ii) the opposing
      party will be permitted to depose the expert witness(es); (iii) the opposing
      party will be permitted to designate rebuttal expert witness(es); and (iv)
      the
      arbitration hearing will be continued to the earliest possible date that enables
      the foregoing limited discovery to be accomplished.

     

    19.5.       Exemplary
      or Punitive Damages.  The Arbitrator(s) will not have the
      authority to award exemplary or punitive damages.

     

    19.6.       Confidentiality
      of Awards.  All arbitration proceedings, including testimony
      or evidence at hearings, will be kept confidential, although any award or order
      rendered by the arbitrator(s) pursuant to the terms of this Agreement may be
      confirmed as a judgment or order in any state or federal court of competent
      jurisdiction within the federal judicial district which includes the residence
      of the party against whom such award or order was entered.  This
      Agreement concerns transactions involving commerce among the several
      states.  The Federal Arbitration Act, Title 9 U.S.C. Sections 1 et
      seq., as amended (“FAA”) will govern all arbitration(s) and confirmation
      proceedings hereunder.

     

    19.7.       Prejudgment
      and Provisional Remedies.  Nothing herein will be construed
      to prevent Administrative Agent’s, any Lender’s, Borrower’s  or any
      Covered Person’s use of bankruptcy, receivership, injunction, repossession,
      replevin, claim and delivery, sequestration, seizure, attachment, foreclosure,
      or any other prejudgment or provisional action or remedy relating to any
      Collateral for any current or future debt owed by either party to the
      other.  Any such action or remedy will not waive Administrative
      Agent’s, any Lender’s, Borrower’s or any Covered Person’s right to compel
      arbitration of any Dispute.

     

    19.8.       Attorneys’
      Fees.  If Administrative Agent, any Lender, Borrower or any
      Covered Person brings any other action for judicial relief with respect to
      any
      Dispute (other than those set forth in 

     

    
      
        
        

      

      
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    Sections
      19.1 or 19.7), the party bringing such action will be liable for and immediately
      pay all of the other party’s costs and expenses (including attorneys’ fees)
      incurred to stay or dismiss such action and remove or refer such Dispute to
      arbitration.  If Administrative Agent, any Lender, Borrower or any
      Covered Person brings or appeals an action to vacate or modify an arbitration
      award and such party does not prevail, such party will pay all costs and
      expenses, including attorneys’ fees, incurred by the other party in defending
      such action.  Additionally, if Borrower or any Covered Person sues
      Administrative Agent or any Lender or institutes any arbitration claim or
      counterclaim against Administrative Agent or any Lender in which Administrative
      Agent or any Lender is the prevailing party, Borrower or any such Covered Person
      will pay all costs and expenses (including attorneys’ fees) incurred by
      Administrative Agent or any Lender in the course of defending such action or
      proceeding.

     

    19.9.       Limitations.  Any
      arbitration proceeding must be instituted:  (i) with respect to any
      Dispute for the collection of any debt owed by either party to the other, before
      the second anniversary of the date the last payment by or on behalf of the
      payor
      was received and applied in respect of such debt by the payee; and (ii) with
      respect to any other Dispute, before the second anniversary of the date the
      incident giving rise thereto occurred, whether or not any damage was sustained
      or capable of ascertainment or either party knew of such
      incident.  Failure to institute an arbitration proceeding within such
      period will constitute an absolute bar and waiver to the institution of any
      proceeding, whether arbitration or a court proceeding, with respect to such
      Dispute.  Notwithstanding the foregoing, this limitations provision
      will be suspended temporarily, as of the date any of the following events occur,
      and will not resume until the date following the date either party is no longer
      subject to, (a) bankruptcy; (b) receivership; (c) any proceeding regarding
      an
      assignment for the benefit of creditors; or (d) any legal proceeding, civil
      or
      criminal, which prohibits either party from foreclosing any interest it might
      have in the collateral of the other party.

     

    19.10.     Survival
      After Termination.  The agreement to arbitrate will survive
      the termination of this Agreement.

     

    19.11.     Invalidity/Unenforceability
      of Binding Arbitration; Jury Trial Waiver; Service of Process;
      Forum.  IF THIS AGREEMENT IS FOUND TO BE NOT SUBJECT TO ARBITRATION,
      THEN:

     

    19.11.1.         Jury
      Trial Waiver.  ANY LEGAL PROCEEDING WITH RESPECT TO ANY DISPUTE
      (1) ARISING UNDER THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, or (2) IN
      ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
      HERETO OR ANY OF THEM IN RESPECT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT,
      OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING
      OR HEREAFTER ARISING, AND WHETHER OR NOT SOUNDING IN CONTRACT OR TORT OR
      OTHERWISE, WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT
      A JURY.  EACH BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER WAIVE ANY
      RIGHT TO A JURY TRIAL IN ANY SUCH PROCEEDING.  Each Borrower,
      Administrative Agent, and each Lender further agrees and consents that any
      such
      claim, demand, action or cause of action shall be decided by court trial without
      a jury and that either may file an original counterpart or 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.

     

    
      
        
        

      

      
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    19.11.2.        Choice
      of Forum.  Subject only to the exception in the next
      sentence, Borrower, Administrative Agent, and each Lender hereby agrees to
      the
      exclusive jurisdiction of the federal court of the Southern District of New
      York
      and the state courts of New York located in New York City (Borough of
      Manhattan), New York and waives any objection based on venue or
forumnonconveniens with respect to any action instituted
      therein, and agrees that any dispute concerning the relationship between
      Administrative Agent, Lenders, and Borrower or the conduct of any of them in
      connection with this Agreement or otherwise shall be heard only in the courts
      described above.  Notwithstanding the foregoing:
      (1) Administrative Agent or any Lender shall have the right to bring any
      action or proceeding against any Borrower or its property in any courts of
      any
      other jurisdiction Administrative Agent or any Lender deem necessary or
      appropriate in order to realize on the Collateral, real estate or other security
      for the Loan Obligations, and (2) each party hereto acknowledges that any
      appeals from the courts described in the immediately preceding sentence may
      have
      to be heard by a court located outside those jurisdictions.

     

    19.11.3.        Service
      of Process.  Each Borrower hereby waives personal service of
      any and all process upon it and consents that all such service of process may
      be
      made by registered mail (return receipt requested) directed to Borrower at
      its
      address set forth on the signature pages hereof, 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, registered mail, return receipt requested; or
      at
      Administrative Agent’s or any Lender’s option, by service upon
      CT Corporation which Borrower irrevocably appoints as such Borrower’s agent
      for the purpose of accepting service of process.  Administrative Agent
      or such Lender shall promptly forward by registered mail any process so served
      upon said agent to Borrower at its address on the signature pages
      hereof.  Nothing in this Section shall affect the right of
      Administrative Agent or any Lender to serve legal process in any other manner
      permitted by Law.

     

    20.        
      Miscellaneous.

     

    20.1.      Notices.  All
      notices, consents, requests and demands to or upon the respective parties hereto
      shall be in writing, and shall be deemed to have been given or made when
      delivered in person to those Persons listed on the signature pages hereof or
      four (4) days after the date when deposited in the United States mail, postage
      prepaid, or, in the case of the overnight courier services, when delivered
      to
      the overnight courier service, or in the case of telecopy or e-mail (if
      expressly permitted herein) notice, when sent, verification received, in each
      case addressed as set forth on the signature pages hereof, or to such other
      address as either party may designate by notice to the other in accordance
      with
      the terms of this Section.  No notice given to or demand made on
      Borrower by Administrative Agent or any Lender in any instance shall entitle
      Borrower to notice or demand in any other instance.

     

    20.2.      Amendments
      and Modifications; Waivers and Consents; All Lenders.

     

    20.2.1.  Unless
      otherwise provided herein, no amendment to or modification of any provision
      of
      this Agreement, or of any of the other Loan Documents shall be effective unless
      it is in writing and signed by authorized officers of Borrower and Required
      Lenders.  Unless otherwise provided herein, no waiver of, or consent
      to any departure by Borrower from, the requirements of any provision of this
      Agreement or any of the other Loan Documents shall be effective unless it is
      in
      writing and signed by authorized officers or representatives of Required
      Lenders.

     

    
      
        
        

      

      
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    20.2.2.  The
      foregoing notwithstanding, no such amendment, modification or consent shall,
      unless signed by authorized officers of Borrower and authorized officers or
      representatives of all Lenders: (i) reduce or forgive the repayment of principal
      of any Advance (except, with respect to the Aggregate Floorplan Loan or Interim
      Floorplan Loan, to the extent arising from any deductions, offsets or other
      disputes made or asserted by Borrower which are accepted by Administrative
      Agent
      in the ordinary course of business of Administrative Agent) or the reimbursement
      of any draw on a Letter of Credit, (ii) extend the Revolving Loan Maturity
      Date,
      (iii) change the definition of Required Lenders herein, (iv) change the
      provisions of this Section 20.2, (v) except as contemplated in this
      Agreement (including, clause (i) above), release any Guarantor or any Covered
      Person from its obligations under the Loan Documents, (vi) increase the
      percentages in the definition of “Borrowing Base,” (vii) change any provisions
      of this Agreement requiring ratable distributions to Lenders, (viii) reduce
      the
      LIBOR Increment as set forth in Section 4.7, or (ix) exchange, waive, or release
      the Security Interests in any of the Collateral (except as expressly permitted
      by Section 14.9); provided, however, that to the extent not permitted by Section
      14.9, Administrative Agent may, in its absolute discretion and without the
      consent of any Lender or any Covered Person or Guarantor, may permit Borrower
      or
      such other applicable Person to exchange, waive or release the Security
      Interests in any of the Collateral so long as the fair market value of the
      Collateral which is exchanged or for which the Security Interest is waived
      or
      released does not exceed Two Million Five Hundred Thousand Dollars ($2,500,000)
      in the aggregate per calendar year.  In addition, the Dollar amount of
      the Revolving Loan Commitment of any Lender may not be increased without the
      consent of such Lender, the Borrower and Administrative Agent.  In
      addition, no change to the provisions of Section 17 that are detrimental any
      Lender may be made without the consent of such Lender, the Borrower and
      Administrative Agent.

     

    20.2.3.  Notwithstanding
      the terms of Section 20.2.2 and Sections 11.1, 11.11, 13.10.9, 14.12 and 14.13
      of this Agreement, and any similar provisions of any of the Security Documents,
      without the necessity of obtaining the consent of the Required Lenders, upon
      the
      request of any Borrower, the Administrative Agent may, in its sole discretion,
      consent to the conversion of any Borrower from a corporation into a limited
      liability company, limited partnership or similar entity; provided, however,
      no
      such conversion shall occur without the prior written consent of the
      Administrative Agent and the fulfillment of any conditions on such consent
      to
      the satisfaction of Administrative Agent.  The Administrative Agent
      may condition such consent on the execution of such documents and agreements,
      and the making of such public filings, as Administrative Agent deems reasonable
      in its sole discretion so as to ensure Administrative Agent’s first priority
      Security Interest in the assets of the entity undergoing such
      conversion.  Each Borrower authorizes the filing by Administrative
      Agent of any financing statements under the Uniform Commercial Code against
      any
      and all of its assets regarding any such conversion.

     

    20.2.4.  Any
      such amendment, modification, waiver or consent shall be effective only in
      the
      specific instance and for the purpose for which given.  No notice to
      or demand on Borrower in any instance shall entitle Borrower to any other or
      further notice or demand in another similar or different instance.  No
      failure by Administrative Agent or any Lender to exercise, and no delay by
      Administrative Agent or any Lender in exercising, any right, 

     

    
      
        
        

      

      
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    remedy,
      power or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise by Administrative Agent or any Lender of any right,
      remedy, power or privilege hereunder preclude any other exercise thereof, or
      the
      exercise of any other right, remedy, power or privilege existing under any
      Law
      or otherwise.

     

    20.3.       Course
      of Dealing.  Acceptance of or acquiescence in a course of
      performance or course of dealing rendered or taken under or with respect to
      this
      Agreement or the other Loan Documents will not be relevant in any respect to
      determine the meaning of this Agreement or the other Loan Documents, or the
      obligations or liabilities of the parties hereto under this Agreement or the
      other Loan Documents, even though the accepting or acquiescing party had
      knowledge of the nature of the performance and opportunity for
      objection.

     

    20.4.       Rights
      Cumulative.  Each of the rights and remedies of
      Administrative Agent and Lenders under this Agreement shall be in addition
      to
      all of its other rights and remedies under applicable Law, and nothing in this
      Agreement shall be construed as limiting any such rights or
      remedies.

     

    20.5.       Successors
      and Assigns.  This Agreement shall be binding upon and inure
      to the benefit of the parties hereto and all future holders of the Notes and
      their respective successors and assigns, except that Borrower may not assign,
      delegate or transfer any of its rights or obligations under this Agreement
      without the prior written consent of Administrative Agent and Required
      Lenders.  With respect to Borrower’s successors and assigns, such
      successors and assigns shall include any receiver, trustee or
      debtor-in-possession of or for Borrower.

     

    20.6.       Severability.  Any
      provision of this Agreement which is prohibited, unenforceable or not authorized
      in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
      of such prohibition, unenforceability or lack of authorization without
      invalidating the remaining provisions hereof or affecting the validity,
      enforceability or legality of such provision in any other jurisdiction unless
      the ineffectiveness of such provision would result in such a material change
      as
      to cause completion of the transactions contemplated hereby to be
      unreasonable.

     

    20.7.       Counterparts.  This
      Agreement may be executed by the parties hereto on any number of separate
      counterparts, and all such counterparts taken together shall constitute one
      and
      the same instrument.  It shall not be necessary in making proof of
      this Agreement to produce or account for more than one counterpart signed by
      the
      party to be charged.

     

    20.8.       Governing
      Law; No Third Party Rights.  This Agreement, the Notes and
      the other Loan Documents and the rights and obligations of the parties hereunder
      and thereunder shall be governed by and construed and interpreted in accordance
      with the internal Laws of the State of Illinois applicable to contracts made
      and
      to be performed wholly within such state, without regard to choice or conflicts
      of law principles; except that the provisions of the Loan Documents pertaining
      to the creation or perfection of Security Interests or the enforcement of rights
      of Administrative Agent and Lenders in Collateral located in a State other
      that
      the State of Illinois shall be governed by the Laws of such State to the extent
      such law is applicable thereto.  This Agreement is solely for the benefit
      of the parties hereto and their respective successors and assigns, and no other
      Person shall have any right, benefit, priority or interest under, or because
      of
      the existence of, this Agreement.

     

    20.9.       Counterpart
      Facsimile Execution.  For purposes of this Agreement, a
      document (or signature page thereto) signed and transmitted by facsimile machine
      or telecopier or via e-mail as a PDF attachment is to be treated as an original
      document.  The signature of any Person thereon, for purposes hereof,
      is to be considered as an original signature, and the document transmitted
      is to
      be considered to have the same binding effect as an original signature on an
      original document.  At the request of any party hereto, any facsimile,
      telecopy or PDF document is to be re-executed 

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

     

    in
      original form by the Persons who executed the facsimile, telecopy or PDF
      document.  No party hereto may raise the use of a facsimile machine,
      telecopier, e-mail or the fact that any signature was transmitted through the
      use of a facsimile machine, telecopier or e-mail as a defense to the enforcement
      of this Agreement or any amendment or other document executed in compliance
      with
      this Section.

     

    20.10.     No
      Other Agreements.  There are no other agreements between
      Administrative Agent, Lenders, and Borrower, oral or written, concerning the
      subject matter of the Loan Documents, and all prior agreements concerning the
      same subject matter, including any proposal or commitment letter, are merged
      into the Loan Documents and thereby extinguished.

     

    20.11.     Negotiated
      Transaction.  Borrower, Administrative Agent and each Lender
      represent each to the others that in the negotiation and drafting of this
      Agreement and the other Loan Documents they have been represented by and have
      relied upon the advice of counsel of their choice.  Borrower and
      Administrative Agent affirm that their counsel have both had substantial roles
      in the drafting and negotiation of this Agreement and each Lender affirms that
      its counsel has participated in the drafting and negotiation of this Agreement;
      therefore, this Agreement will be deemed drafted by all of Borrower,
      Administrative Agent and Lenders, and the rule of construction to the effect
      that any ambiguities are to be resolved against the drafter will not be employed
      in the interpretation of this Agreement.

     

    20.12.     Waiver
      of Punitive and Exemplary Damages.  Each party to this
      Agreement hereby waives any right to bring any action or claim against any
      other
      party to this Agreement for exemplary or punitive damages arising out of or
      otherwise relating to the this Agreement, Loan Documents, any of the
      transactions contemplated herein, or the actual or proposed use of the proceeds
      of the Loans.

     

    20.13.     Incorporation
      By Reference.  All of the terms of the other Loan Documents
      are incorporated in and made a part of this Agreement by this
      reference.

     

    20.14.     Statutory
      Notice-Insurance.

     

    UNLESS
      YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH
      US, WE MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR
      COLLATERAL.  THIS INSURANCE MAY, BUT NEED NOT, PROTECT YOUR
      INTERESTS.  THE COVERAGE THAT WE PURCHASE MAY NOT PAY ANY CLAIM THAT
      YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN CONNECTION WITH THE
      COLLATERAL.  YOU MAY LATER CANCEL ANY INSURANCE PURCHASED BY US, BUT
      ONLY AFTER PROVIDING EVIDENCE THAT YOU HAVE OBTAINED INSURANCE AS REQUIRED
      BY
      OUR AGREEMENT.  IF WE PURCHASE INSURANCE FOR THE COLLATERAL, YOU WILL
      BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING THE INSURANCE PREMIUM,
      INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE IN CONNECTION WITH THE PLACEMENT
      OF
      THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF
      THE
      INSURANCE.  THE COSTS OF THE INSURANCE MAY BE ADDED TO YOUR TOTAL
      OUTSTANDING BALANCE OR OBLIGATION.  THE COSTS OF THE INSURANCE MAY BE
      MORE THAN THE COST OF INSURANCE YOU MAY BE ABLE TO OBTAIN ON YOUR
      OWN.

     

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

     

    20.15.     Statutory
      Notice--Oral Commitments.

     

    ORAL
      AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM
      ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
      ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED
      THAT
      IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S))
      AND
      US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH
      COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE
      AND
      EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE
      IN
      WRITING TO MODIFY IT.

     

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    signature
      pages follow}

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

     

    THIS
      CONTRACT CONTAINS A BINDING ARBITRATION CLAUSE WHICH MAY BE ENFORCED BY THE
      PARTIES.

     

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed by
      appropriate duly authorized officers as of the Effective Date.

     

    GE
      COMMERCIAL DISTRIBUTION FINANCE CORPORATION,

    as
      Administrative Agent and a Lender

    

      

      
        	
                By:

              	         /s/
	
                Name:

              	 
	
                Title:

              	 

      

      
Notice
        Address:

    

     

    GE
      Commercial Distribution Finance Corporation

    Ms.
      Theresia Roth, Documentation Manager

    3330
      Cumberland Blvd

    Suite
      330

    Atlanta,
      GA 30339

    FAX
      #
      (513) 794-5826

    TEL
      #
      (770) 850-4064

     

    with
      a
      copy to

     

    GE
      Commercial Distribution Finance Corporation

    5595
      Trillium Blvd.

    Hoffman
      Estates, IL 60192

    Attn:  Michael
      B. Levitt, Operations Counsel

    FAX
      #
      (847) 747-7455

    TEL
      #
      (847) 747-7525

     

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        Signature
          Page 1 of 3

        
          

        

      

      
        
        

      

    

     

    
      MTM
        TECHNOLOGIES, INC., as a Borrower

       

      
        	
                By:

              	     /s/
	
                Name:

              	
                J.W.
                  Braukman, III

              
	
                Title:

              	
                Senior
                  Vice President

              
	 	
                and
                  Chief Financial Officer

              

      

      

      

      

      MTM
        TECHNOLOGIES (US), INC., as a Borrower

       

      
        	
                By:

              	    /s/ 
	
                Name:

              	
                J.W.
                  Braukman, III

              
	
                Title:

              	
                Senior
                  Vice President

              
	 	
                and
                  Chief Financial Officer

              

      

      

      

      

      MTM
        TECHNOLOGIES (MASSACHUSETTS), LLC, as a Borrower

       

      
        	
                By:

              	    /s/ 
	
                Name:

              	
                J.W.
                  Braukman, III

              
	
                Title:

              	
                Senior
                  Vice President

              
	 	
                and
                  Chief Financial Officer

              

      

      

      

      

      INFO
        SYSTEMS, INC., as a Borrower

       

      
        	
                By:

              	    /s/ 
	
                Name:

              	
                J.W.
                  Braukman, III

              
	
                Title:

              	
                Senior
                  Vice President

              
	 	
                and
                  Chief Financial Officer

              

      

    

     

     

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        Signature
          Page 2 of 3

        
          

        

      

      
        
        

      

    

     

    Notice
      Address for all Borrowers:

     

    with
      a
      copy to

     

    MTM
      Technologies, Inc.

    1200
      High
      Ridge Road

    Stamford,
      CT  06905

    Attn:  Chief
      Financial Officer

    FAX:  (203)
      975-3701

    TEL:  (203)
      975-3700

     

    and

     

    Thelen,
      Reid, Brown, Raysman & Steiner, LLP

    875
      Third
      Avenue

    New
      York,
      NY  10022

    Attn:  Stephen
      H. Kinney, Jr., Esq.

    FAX:  (212)
      603-2001

    TEL:  (212)
      603-2000

     

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        Signature
          Page 3 of 3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT 2.1

     

    GLOSSARY
      AND INDEX OF DEFINED TERMS

     

    AAA
      -- is
      defined in Section 19.2.

     

    Account
      -- as to any Person, the right of such Person to payment for goods sold or
      leased or for services rendered by such Person.

     

    Account
      Debtor -- the obligor on any Account.

     

    Acquisition
      means any transaction or series of related transactions for the purpose of
      or
      resulting, directly or indirectly, in (a) the acquisition of all or
      substantially all of the assets of a Person, or of all or substantially all
      of
      any business or division of a Person, (b) the acquisition of in excess of 50%
      of
      the Capital Securities of any Person, or otherwise causing any Person to become
      a Subsidiary, or (c) a merger or consolidation or any other combination with
      another Person (other than a Person that is already a Subsidiary).

     

    Adjusted
      LIBOR Rate -- is defined in Section 4.6.

     

    Administrative
      Agent or the Administrative Agent -- CDF in its capacity as Administrative
      Agent
      under this Agreement, and its successors and assigns in such
      capacity.

     

    Advance
      -- a Revolving Loan Advance, a Swingline Advance, an Interim Floorplan Loan
      Advance or Floorplan Loan Advance.

     

    Advance
      Date -- the date on which an Advance is requested by Borrower to be made, or
      is
      otherwise contemplated or intended to be made, as provided herein.

     

    Affiliate
      -- with respect to any Person, (a) any other Person who is a partner,
      director, officer or stockholder of such Person; and (b) any other Person
      which, directly or indirectly, is in control of, is controlled by or is under
      common control with such Person, and any partner, director, officer or
      stockholder of such other Person described.  For purposes of this
      Agreement, control of a Person by another Person shall be deemed to exist if
      such other Person has the power, directly or indirectly, either to (i) vote
      twenty percent (20%) or more of the securities having the power to vote in
      an
      election of directors of such Person, or (ii) direct the management of such
      Person, whether by contract or otherwise and whether alone or in combination
      with others.

     

    Agent/Lender
      Companies -- is defined in Section 19.1.

     

    Aggregate
      Commitment -- either the Aggregate Revolving Loan Commitment, the Aggregate
      Floorplan Loan Facility or the Letter of Credit Facility.

     

    Aggregate
      Loan -- any of the Aggregate Revolving Loan, the Swingline Loan, the Interim
      Floorplan Loan, or the Aggregate Floorplan Loan Facility as the case may
      be.

     

    Aggregate
      Floorplan Loan -- the from time to time outstanding principal balance of all
      Floorplan Loan Advances.

     

    Aggregate
      Floorplan Loan Facility -- the aggregate discretionary line of Lenders as stated
      in Section  3.2.1 to fund Floorplan Loan Advances, as it may be changed as
      provided herein.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Aggregate
      Revolving Loan -- the from time to time outstanding principal balance of all
      Revolving Loan Advances.

     

    Aggregate
      Revolving Loan Commitment -- the aggregate commitments of Lenders as stated
      in
      Section  3.1.1 to fund Revolving Loan Advances, as it may be changed as
      provided herein.

     

    Anniversary
      Date -- each annual anniversary of the Effective Date.

     

    Applicable
      Lending Office -- means, for Administrative Agent and each Lender and for each
      Loan, the “Applicable Lending Office” of Administrative Agent or such Lender (or
      of an affiliate of such Lender) designated for such Loan on the signature pages
      hereof or such other office of such Lender (or an affiliate of Administrative
      Agent or such Lender) as Administrative Agent or such Lender may from time
      to
      time specify to the Administrative Agent (in the case of another Lender) and
      the
      Borrower by written notice in accordance with the terms hereof as the office
      by
      which its Loans are to be made and maintained.

     

    Approval
      -- means Administrative Agent’s approval to finance particular Inventory for
      Borrower which is evidenced by Administrative Agent issuing a financing approval
      number to the vendor of such Inventory.  “Approval” also means
      (i) any open-to-buy authorization given by Administrative Agent to a
      vendor, pursuant to which Administrative Agent may authorize such vendor to
      assume Administrative Agent’s approval to finance Inventory until Administrative
      Agent affirmatively withdraws such authorization, and (ii) any Approval for
      which Administrative Agent has not made an Interim Floorplan Loan Advance or
      the
      Lenders have not made a Floorplan Loan Advance as a result of Administrative
      Agent not receiving the invoice from the vendor for the Inventory which is
      subject to the Approval.

     

    Asbestos
      Material -- either asbestos or asbestos-containing materials.

     

    Assigned
      Collateral -- any tangible or intangible property of Borrower or any other
      Person, now owned or hereafter acquired, other than the Personal Property
      Collateral, in which Administrative Agent holds or will hold a Security Interest
      under a Collateral Assignment to secure payment or performance of any of the
      Loan Obligations, and all proceeds thereof.

     

    Assignment
      and Acceptance -- means an Assignment and Acceptance in the form attached hereto
      as Exhibit 18.4.1

     

    Average
      Daily Balance -- is defined in Section 4.3.3.

     

    Bid
      Bonds
      -- means bonds or similar instruments issued from time to time by third party
      bonding companies for the benefit of a Borrower to secure a Borrower’s bid or
      proposal, or to secure a contract of a Borrower, to supply goods and/or services
      to a potential customer of Borrower or a customer of Borrower.

     

    Blocked
      Accounts -- is defined in Section 6.1.2.1.

     

    Borrowing
      Base -- is defined in Section 3.1.4.

     

    Borrowing
      Base Certificate -- the certificate required to be delivered to Administrative
      Agent and each Lender from time to time as provided in
      Section 13.14.1.

     

    Borrowing
      Agent -- is defined in Section 2.10.

     

    Borrowing
      Officer -- each officer of the Borrowing Agent who is authorized to submit
      a
      request for an Advance or the issuance of a Letter of Credit or take such other
      action as described in Section 2.10 on 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    behalf
      of
      each Borrower or any Borrower as designated by the Borrowing Agent in a writing
      delivered to Administrative Agent.

     

    Business
      Day -- any day on which the Federal Reserve Bank of Chicago is open for the
      transaction of business.

     

    Capital
      Expenditure -- is defined in Section 15.1.

     

    Capital
      Expenditure Equivalent -- is defined in Section 15.1.

     

    Capital
      Lease -- any lease that has been or should be capitalized under
      GAAP.

     

    Capital
      Securities means, with respect to any Person, all shares, interests,
      participations or other equivalents (however designated, whether voting or
      non-voting) of such Person’s capital, whether now outstanding or issued or
      acquired after the Effective Date, including common shares, preferred shares,
      membership interests in a limited liability company, limited or general
      partnership interests in a partnership, interests in a trust, interests in
      other
      unincorporated organizations or any other equivalent of such ownership
      interest.

     

    Cash
      Collateral -- is defined in Section 3.4.3.

     

    Cash
      Collateral Account -- the account(s) with such financial institution as selected
      or designated by Administrative Agent from time to time that is designated
      by
      Administrative Agent as the Cash Collateral Account.

     

    Change
      of
      Control -- means the occurrence of any of the following events:  (a)
      other than one of the Major Shareholders, any Person or group of Persons (within
      the meaning of Section 13 or 14 of the Securities Exchange Act of 1934) shall
      acquire beneficial ownership (within the meaning of Rule 13d-3 promulgated
      under
      such Act) of more than 20% of the outstanding Capital Securities (on a fully
      diluted basis and taking into account any securities or contract rights
      exercisable, exchangeable or convertible into equity securities) of MTM
      Technologies, Inc. having voting rights in the election of directors under
      normal circumstances; (b) the Major Shareholders, as a group, shall fail to
      have
      beneficial ownership (within the meaning of Rule 13d-3 promulgated under such
      Act) of at least 65% of the outstanding Capital Securities (on a fully diluted
      basis and taking into account any securities or contract rights exercisable,
      exchangeable or convertible into equity securities) of MTM Technologies, Inc.
      having voting rights in the election of directors under normal circumstances,
      provided, however, if no Event of Default shall have occurred and be continuing
      at the time of delivery of the March 31, 2008 audited financials or with respect
      to the covenants in Section 15 with respect to such computation date, then
      this
      clause (b) shall no longer be effective; (c) except for the merger of any
      Wholly-Owned Subsidiary with or into any other Wholly-Owned Subsidiary (if
      a
      Wholly-Owned Subsidiary is the surviving entity), any Subsidiary of the Company
      ceases to be a Wholly-Owned Subsidiary of MTM Technologies, Inc. unless the
      assets of such Subsidiary are liquidated into a Wholly-Owned Subsidiary of
      MTM
      Technologies, Inc. or such Subsidiary is merged into a Wholly-Owned Subsidiary
      of MTM Technologies, Inc.; or (d) the sale of all or substantially all of the
      assets of the Borrower

     

    Charter
      Documents -- the articles or certificate of incorporation and bylaws of a
      corporation; the certificate of limited partnership and partnership agreement
      of
      a limited partnership; the partnership agreement of a general partnership;
      the
      articles of organization and operating agreement of a limited liability company;
      or the indenture of a trust.

     

    Claims
      Act -- the Assignment of Claims Act of 1940.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    COBRA
      --
      the Consolidated Omnibus Budget Reconciliation Act.

     

    Code
      --
      the Internal Revenue Code of 1986 and all regulations thereunder of the
      IRS.

     

    Collateral
      -- all assets and property of Borrower, including without limitation, all of
      the
      Personal Property Collateral, the Assigned Collateral, and any other property
      or
      asset in which Administrative Agent or a Lender has a Security Interest to
      secure payment or performance of the Loan Obligations and all proceeds
      thereof.

     

    Collateral
      Assignment -- any of the collateral assignments or control agreements required
      or contemplated under Section 8.5 to be executed and delivered to
      Administrative Agent for the benefit of the Lenders or otherwise delivered
      to
      Administrative Agent for the benefit of the Lenders from time to
      time.

     

    Commitment
      -- the Revolving Loan Commitment of a Lender, the Swingline Commitment of
      Administrative Agent, the Interim Floorplan Loan Facility of Administrative
      Agent or the Floorplan Loan Facility of a Lender.  The inclusion of
      the “Interim Floorplan Loan Facility” and the “Floorplan
      Loan  Facility” in this defined term “Commitment” does not alter the
      non-committed nature of the Interim Floorplan Loan Facility of Administrative
      Agent or the Floorplan Loan Facility of a Lender, and the Interim Floorplan
      Loan
      Facility and Floorplan Loan Facility each are, and remain, non-committed
      facilities.

     

    Commonly
      Controlled Entity -- a Person which is under common control with another Person
      within the meaning of Section 414(b) or (c) of the Code.

     

    Compliance  Certificate
      -- a certificate substantially in the form of Exhibit 13.13 attached
      hereto.

     

    Contract
      -- any contract, capital lease, operating lease, note, bond, indenture, deed,
      mortgage, deed of trust, security agreement, pledge, hypothecation agreement,
      assignment, or other agreement or undertaking, or any security.

     

    Covered
      Person -- is defined in Section 2.4.

     

    Credit
      Facilities Agreement -- This Agreement.

     

    Daily
      Charge -- is defined in Section 4.3.3.

     

    Daily
      Rate -- is defined in Section 4.3.3.

     

    Default
      -- any of the events listed in Section 16.1 of this Agreement, without
      giving effect to any requirement for the giving of notice, for the lapse of
      time, or both, or for the happening of any other condition, event or
      act.

     

    Default
      Rate -- the rate of interest payable on each Loan after its Maturity and in
      certain other circumstances as provided in Section 4.10.

     

    Defaulting
      Lender -- is defined in Section 7.5.1.

     

    Disclosure
      Schedule -- the disclosure schedule of Borrower attached hereto as
      Exhibit 11.

     

    Disputes
      -- is defined in Section 19.1.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Distribution/Redemptions
      -- means and includes (i) any cash dividend or payment, (ii) any direct or
      indirect acquisition or redemption of any outstanding Capital Securities, (iii)
      any retirement or prepayment of debt securities before their regularly scheduled
      maturity dates, other than as expressly permitted by this Agreement, (iv) any
      loan or advance to a shareholder, partner, or member and advances for travel
      or
      similar expenses made in the ordinary course of business, and (v) any
      compensation payment to a shareholder or partner in excess of (a) normal
      compensation plus (b) bonus compensation based on the actual performance of
      Borrower or the actual performance of any such shareholder or partner for
      services actually rendered.

     

    DOL
      --
      the United States Department of Labor.

     

    Dollars
      and the sign $ -- lawful money of the United States.

     

    EBITDA
      --
      is defined in Section 15.1.

     

    Effective
      Date -- the date when this Agreement is effective as provided in
      Section 1.

     

    Eligible
      Accounts -- is defined in Section 3.1.5.

     

    Eligible
      Assignee -- means (i) a Lender (including any successor by merger);
      (ii) an Affiliate of a Lender; and (iii) subject to
      Section 18.4.1.1, any other Person approved by the Administrative Agent;
provided, however, that neither the Borrower, Guarantor nor an
      Affiliate of the Borrower or Guarantor shall qualify as an “Eligible
      Assignee.”

     

    Employment
      Law -- ERISA, the Occupational Safety and Health Act, the Fair Labor Standards
      Act, or any other Law pertaining to the terms or conditions of labor or safety
      in the workplace or discrimination or sexual harassment in the
      workplace.

     

    Encumbrance
      -- as to any item of real or personal property, any easement, right-of-way,
      license, condition, or restrictive covenant, or zoning or similar restriction,
      that is not a Security Interest but is enforceable by any Person other than
      the
      record owner of such property.

     

    Environmental
      Law -- the Resource Conservation and Recovery Act, the Comprehensive
      Environmental Response, Compensation and Liability Act, the Clean Water Act,
      the
      Clean Air Act, or any other Law pertaining to environmental quality or
      remediation of Hazardous Material.

     

    EPA
      --
      the United States Environmental Protection Agency.

     

    ERISA
      --
      the Employee Retirement Income Security Act of 1974.

     

    ERISA
      Affiliate -- as to any Borrower, any trade or business (irrespective of whether
      incorporated) which is a member of a group of which such Person is a member
      and
      thereafter treated as a single employer under §414(b), (c), (m) or (o) of the
      Code or applicable Treasury Regulations.

     

    Event
      of
      Default -- any of the events listed in Section 16.1 of this Agreement as to
      which any requirement for the giving of notice, for the lapse of time, or both,
      or for the happening of any further condition, event or act has been
      satisfied.

     

    Execution
      Date -- the date when this Agreement has been executed.

     

    Existing
      Default -- an Event of Default which has occurred and is continuing and which
      has not been waived in writing by the Required Lenders.

     

    
      
        
        

      

      
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    FAA
      -- is
      defined in Section 19.6.

     

    Federal
      Funds Rate -- for any day, the rate per annum (rounded upwards, if necessary,
      to
      the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight
      Federal funds transactions with members of the Federal Reserve System arranged
      by Federal funds brokers on such day, as published by the Federal Reserve Bank
      of New York on the Business Day next succeeding such day; provided
      that (a) if such day is not a Business Day, the Federal Funds Rate for such
      day shall be such rate on such transactions on the next preceding Business
      Day
      as so published on the next succeeding Business Day, and (b) if no such
      rate is so published on such next succeeding Business Day, the Federal Funds
      Rate for such day shall be the average rate charged to the Administrative Agent
      (in its individual capacity) on such day on such transactions as determined
      by
      the Administrative Agent.

     

    Financial
      Statements -- the most recent of the Initial Financial Statements and the
      financial statements of Borrower required to be furnished to Administrative
      Agent under this Agreement.

     

    Floorplan
      Inventory Value -- means one hundred percent (100%) of the total aggregate
      wholesale invoice price of all of Borrower’s Inventory financed under the
      Floorplan Loan Facility and the Interim Floorplan Loan Facility in which
      Administrative Agent has a first priority, perfected Security Interest (subject
      to no other Security Interest) that is unsold and not leased by Borrower and
      is
      in Borrower’s possession and control as of the date of determination, less the
      amount of any such Inventory reported by the Borrower (if the Borrower is
      required by the Administrative Agent or the Required Lenders to report) as
      demonstration items or Inventory that is obsolete or otherwise unmerchantable
      or
      if in the possession or control of Borrower for 180 days or more from the date
      of the invoice for such Inventory.  If any Inventory financed under
      the Aggregate Floorplan Loan Facility or the Interim Floorplan Loan Facility
      with a value in excess of $0.00 for each location is located on any premises
      that are not owned by Borrower (not including any lessee or other person to
      whom
      Inventory is leased or rented in the ordinary course of such Covered Person’s
      business, or other locations where Borrower is not obligated to pay rent for
      up
      to 30 consecutive days) and Borrower has not obtained or caused to be obtained
      written waivers or consents, in form and substance satisfactory to
      Administrative Agent, then such Inventory shall be deemed to have a “Floorplan
      Inventory Value” of zero Dollars ($0.00).

     

    Floorplan
      Loan -- any Lender’s pro-rata share of the Aggregate Floorplan
      Loan.

     

    Floorplan
      Loan Advance -- an Advance by Administrative Agent that is to be funded by
      Lenders under the Aggregate Floorplan Loan Facility.

     

    Floorplan
      Loan Facility -- the discretionary line of credit of each Lender as stated
      in
      Section  3.2.1 to fund Floorplan Loan Advances.

     

    Floorplan
      Loan Maturity Date -- is defined in Section 6.1.2.3.

     

    Floorplan
      Payment Default -- is defined in Section 16.1.1.

     

    Floorplan
      Shortfall -- means the amount, if any, by which (a) the sum of the
      Aggregate Floorplan Loans and Interim Floorplan Loans (less the amount of the
      Aggregate Floorplan Loans and Interim Floorplan Loans attributable to Inventory
      purchased by Borrower during the In Transit Period (defined below) as evidenced
      by the invoice date) outstanding on any date of determination, exceeds
      (b) the Floorplan Inventory Value as determined by Administrative Agent as
      of such date of determination.  “In Transit Period” shall mean a
      period determined by Administrative Agent which reasonably estimates the time
      period it takes Inventory ordered by Borrower and shipped by a Vendor to arrive
      at Borrower’s location.  Until notice is given by Administrative Agent
      to Borrower of a change in the In Transit Period, 

     

    
      
        
        

      

      
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    the
      In-Transit Period shall be the two (2) day period immediately preceding the
      date of the most recent Schedule of Inventory.

     

    FRB
      --
      the Board of Governors of the Federal Reserve System and any successor thereto
      or to the functions thereof.

     

    Fronting
      Fee -- is defined in Section 5.4.

     

    GAAP
      --
      those generally accepted accounting principles set forth in Statements of the
      Financial Accounting Standards Board and in Opinions of the Accounting
      Principles Board of the American Institute of Certified Public Accountants
      or
      which have other substantial authoritative support in the United States and
      are
      applicable in the circumstances, as applied on a consistent basis.

     

    Governmental
      Authority -- the federal government of the United States; the government of
      any
      foreign country that is recognized by the United States or is a member of the
      United Nations; any state of the United States; any local government or
      municipality within the territory or under the jurisdiction of any of the
      foregoing; any department, agency, division, or instrumentality of any of the
      foregoing; and any court, arbitrator, or board of arbitrators whose orders
      or
      judgments are enforceable by or within the territory of any of the
      foregoing.

     

    Group
      --
      as used in Regulation 13-D issued by the Securities and Exchange
      Commission.

     

    Guarantor
      -- each Person who from time to time executes and delivers to Administrative
      Agent for the benefit of Lenders a Guaranty of part or all of the Loan
      Obligations.

     

    Guaranty
      -- each guaranty of part or all of the Loan Obligations executed and delivered
      to Administrative Agent for the benefit of Lenders by any
      Guarantor.

     

    Hazardous
      Material -- any hazardous, radioactive, toxic, solid or special waste, material,
      substance or constituent thereof, or any other such substance (as defined under
      any applicable Law or regulation), including Asbestos Material.

     

    Impositions
      -- is defined in Section 4.11.2.

     

    Indebtedness
      -- as to any Person at any particular date, any contractual obligation
      enforceable against such Person (i) to repay borrowed money; (ii) to
      pay the deferred purchase price of property or services; (iii) to make
      payments or reimbursements with respect to bank acceptances or to a factor;
      (iv) to make payments or reimbursements with respect to letters of credit
      whether or not there have been drawings thereunder; (v) with respect to
      which there is any Security Interest in any property of such Person;
      (vi) to make any payment or contribution to a Multi-Employer Plan;
      (vii) that is evidenced by a note, bond, debenture or similar instrument;
      (viii) under any conditional sale agreement or title retention agreement;
      (ix) all Liabilities (as defined by GAAP) under any Capital Lease or
      (x) to pay interest or fees with respect to any of the
      foregoing.  Indebtedness also includes any other Obligation that
      either (i) is non-contingent and liquidated in amount or (ii) should
      under GAAP be included in liabilities and not just as a footnote on a balance
      sheet.

     

    Indirect
      Obligation -- as to any Person, (a) any guaranty by such Person of any
      Obligation of another Person; (b) any Security Interest in any property of
      such Person that secures any Obligation of another Person; (c) any
      enforceable contractual requirement that such Person (i) purchase an
      Obligation of another Person or any property that is security for such
      Obligation, (ii) advance or contribute funds to another Person for the
      payment of an Obligation of such other Person or to maintain the working
      capital, net worth or solvency of such other Person as required in any documents
      evidencing an Obligation of 

     

    
      
        
        

      

      
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    such
      other Person, (iii) purchase property, securities or services from another
      Person for the purpose of assuring the beneficiary of any Obligation of such
      other Person that such other Person has the ability to timely pay or discharge
      such Obligation, (iv) grant a Security Interest in any property of such
      Person to secure any Obligation of another Person, (v) otherwise assure or
      hold harmless the beneficiary of any Obligation of another Person against loss
      in respect thereof; (d) any Obligation arising from the endorsement by such
      Person of an instrument (e) any Obligation of such Person as a surety; and
      (f) any other contractual requirement enforceable against such Person that
      has the same substantive effect as any of the foregoing.  The term
      Indirect Obligation does not, however, include the endorsement by a Person
      of
      instruments for deposit or collection in the ordinary course of business or
      the
      liability of a general partner of a partnership for Obligations of such
      partnership.  The amount of any Indirect Obligation of a Person shall
      be deemed to be the stated or determinable amount of the Obligation in respect
      of which such Indirect Obligation is made or, if not stated or determinable,
      the
      maximum reasonably anticipated liability in respect thereof as determined by
      such Person in good faith.

     

    Initial
      Financial Statements -- the financial statements (not including the projections)
      of Borrower referred to in Section 10.1.2.

     

    Insurance
      Proceeds -- insurance and/or condemnation proceeds payable as a consequence
      of
      damage to or destruction of any of the Collateral.

     

    Intellectual
      Property -- as to any Person, any domestic or foreign patents or patent
      applications of such Person, any inventions made or owned by such Person upon
      which either domestic or foreign patent applications have not yet been filed,
      any domestic or foreign trade names or trademarks of such Person, any domestic
      or foreign trademark registrations or applications filed by such Person, any
      domestic or foreign service marks of such Person, any domestic or foreign
      service mark registrations and applications by such Person, any domestic or
      foreign copyrights of such Person, and any domestic or foreign copyright
      registrations or applications by such Person.

     

    Intellectual
      Property Assignment -- each assignment of Intellectual Property that Borrower
      or
      any other Person executes and delivers to Administrative Agent for the benefit
      of Lenders, either on or after the Execution Date.

     

    Intercreditor
      Agreement -- individually and collectively, any Intercreditor Agreement by
      and
      between the Administrative Agent on behalf of the Lenders, and each holder
      of
      the Other Creditor Indebtedness, each in form and substance satisfactory to
      Administrative Agent.

     

    Interest
      Expense -- is defined in Section 15.1.

     

    Interest/Currency
      Hedge Obligation -- any obligations of Borrower to Administrative Agent, any
      Lender or any of their respective Affiliates or Subsidiaries under an agreement
      or agreements between Borrower and Administrative Agent, any
      Lender or any of their respective Affiliates or Subsidiaries under
      which the exposure of Borrower to fluctuations in interest rates or currencies
      is effectively limited, including, without limitation, whether in the form
      of
      one or more interest rate cap, collar, corridor agreements, interest rate swaps,
      currency swaps, or the like, or options therefor.

     

    Interim
      Floorplan Loan Advance -- an Advance by Administrative Agent under the Interim
      Floorplan Loan Facility.

     

    Interim
      Floorplan Loan -- Administrative Agent’s aggregate Interim Floorplan Loan
      Advances.

     

    Interim
      Floorplan Loan Facility -- the discretionary line of credit of Administrative
      Agent as stated in Section 3.2.2 to fund Interim Floorplan Loan
      Advances.

     

    
      
        
        

      

      
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    Inventory
      -- goods owned, leased or held by a Person for sale, lease, sublease or resale
      or furnished or to be furnished under contracts for services, and raw materials,
      goods/work in process, materials, component parts and supplies used or consumed,
      or held for use or consumption in such Person’s business.

     

    Investment
      -- (a) a loan or advance of money or property to a Person, (b) Capital
      Securities in a Person, (c) a debt instrument issued by a Person, whether
      or not convertible to stock or other equity interest in such Person, or
      (d) any other interest in or rights with respect to a Person which include,
      in whole or in part, a right to share, with or without conditions or
      restrictions, some or all of the revenues or net income of such
      Person.

     

    IRS
      --
      the Internal Revenue Service.

     

    Law
      --
      any statute, rule, regulation, order, judgment, award or decree of any
      Governmental Authority.

     

    Lender
      --
      any one of the Persons who are signatories to this Agreement and obligated
      as
      lenders or any Person who takes an assignment from any of such signatories
      of
      all or a portion of its rights and obligations as a lender under this Agreement
      pursuant to Section 18.4.1 and an Assignment and Acceptance as provided
      therein.

     

    Lenders’
      Exposure -- the sum of the Aggregate Revolving Loan Commitment, the Swingline
      Loan, the Letter of Credit Exposure, the Interim Floorplan Loan, the Aggregate
      Floorplan Loan Facility and the amount of all unfunded Approvals.

     

    Letter
      of
      Credit -- any standby or commercial (documentary) letter of credit issued by
      Letter of Credit Issuer pursuant to the Letter of Credit Facility.

     

    Letter
      of
      Credit Facility -- the discretionary agreement of the Letter of Credit Issuer
      to
      issue Letters of Credit as provided in Section 3.4.

     

    Letter
      of
      Credit Exposure -- the undrawn amount of all outstanding letters of credit
      issued under the Letter of Credit Facility plus all amounts drawn on such
      letters of credit and not yet reimbursed by Borrower.

     

    Letter
      Of
      Credit Fee -- the fee payable to Administrative Agent and Lenders as required
      in
      Section 5.3.

     

    Letter
      of
      Credit Issuer – Administrative Agent or any Person who Administrative Agent
      arranges to issue Letters of Credit pursuant to Section 3.4.

     

    LIBOR
      Advance -- an Advance that will become a LIBOR Loan.

     

    LIBOR
      Increment -- is defined in Section 4.7.

     

    LIBOR
      Loan -- any portion of a Loan on which interest accrues at the Adjusted LIBOR
      Rate.

     

    LIBOR
      Rate -- is defined in Section 4.6.

     

    Loan
      -- a
      Revolving Loan, the Swingline Loan, the Interim Floorplan Loan or a Floorplan
      Loan.

     

    Loan
      Documents -- this Agreement, the Notes, the Guaranties, the Security Documents,
      any reimbursement agreement between Borrower and Letter of Credit Issuer, any
      fee letter between the Borrowers and CDF, and all other agreements,
      certificates, documents, instruments and other writings executed in connection
      herewith or therewith from time to time.

     

    
      
        
        

      

      
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    Loan
      Obligations -- all of Borrower’s Indebtedness owing to Letter of Credit Issuer,
      Administrative Agent (including, without limitation, the Obligations to
      Administrative Agent) or Lenders under this Agreement and the other Loan
      Documents, and all other agreements, certificates, documents, instruments and
      other writings executed in connection therewith, whether as principal, interest,
      fees (including, without limitation, the Termination Fee), or otherwise,
      including without limitation, the amount of all unfunded Approvals, any amounts
      set forth in Section 4.12, all obligations of Administrative Agent or the
      Lenders under any Third Person Reimbursement Agreements, any reimbursement
      agreement between Borrower and the Letter of Credit Issuer (or its Affiliates
      in
      connection with the issuance of any type of Letter of Credit), and all
      reimbursement obligations of Borrower to Letter of Credit Issuer, Administrative
      Agent or Lenders with respect to the Letter of Credit Exposure and any fees
      related thereto (including, without limitation, the Letter of Credit Fee),
      and
      all other Obligations and liabilities of Borrower to Administrative Agent or
      Lenders under this Agreement and the other Loan Documents and all
      Interest/Currency Hedge Obligations (in each case including all extensions,
      renewals, modifications, rearrangements, restructures, replacements and
      refinancings of the foregoing, whether or not the same involve modifications
      to
      interest rates or other payment terms), whether now existing or hereafter
      created, absolute or contingent, direct or indirect, joint or several, secured
      or unsecured, due or not due, contractual or tortious, liquidated or
      unliquidated, arising by operation of law or otherwise, including but not
      limited to the obligation of Borrower to repay future advances by Administrative
      Agent or Lenders hereunder, whether or not made pursuant to commitment and
      whether or not presently contemplated by Borrower, Administrative Agent or
      Lenders in the Loan Documents.

     

    Local
      Time -- means the local time in Atlanta, Georgia.

     

    Lockboxes
      -- the lockboxes maintained as required in Section 6.1.2.1.

     

    Major
      Shareholders -- means Pequot Private Equity Fund III, L.P., Pequot Offshore
      Private Equity Partners III, L.P., Constellation Venture Capital II, L.P.,
      and
      Constellation Venture Capital Offshore II, L.P.

     

    Material
      Adverse Effect -- as to the Borrower, any Guarantor or any other Covered Person,
      taken as a whole, and with respect to any event or occurrence of whatever nature
      (including any adverse determination in any litigation, arbitration,
      investigation or proceeding), a material adverse effect on the business,
      operations, revenues, financial condition, property, or business prospects
      of
      Borrower and each other Covered Person taken as a whole, or the ability of
      Borrower, any Guarantor or such Covered Person to timely pay or perform
      Borrower’s, any Guarantor’s and each other Covered Person’s Obligations
      generally taken as a whole, or in the case of Borrower, and each Covered Person
      specifically, the ability of Borrower to pay or perform any of Borrower’s
      Obligations to Administrative Agent or to any Lender, or in the case of a
      Guarantor, the ability of such Guarantor to pay or perform any of its
      Obligations guarantied under the terms of its Guaranty.

     

    Material
      Agreement -- as to Borrower, any Guarantor or any other Covered Person, any
      Contract to which Borrower, any Guarantor or any Covered Person is a party
      or by
      which any such Borrower, any Guarantor or any other Covered Person is bound
      which, if violated or breached, has or is reasonably likely to have a Material
      Adverse Effect, including, without limitation, all Other Creditor Indebtedness
      Documents, all Subordinated Indebtedness Documents, all documents referenced
      in
      any Intercreditor Agreement, including, without limitation, the Other Creditor
      Indebtedness Documents.

     

    
      
        
        

      

      
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    Material
      Law -- any separately enforceable provision of a Law whose violation by a
      Borrower, any Guarantor, or any other Covered Person has or is reasonably likely
      to have a Material Adverse Effect on such Person or any Covered Person or any
      Guarantor, taken as a whole.

     

    Material
      License -- (i) as to any Covered Person, any license, permit or consent
      from a Governmental Authority or other Person and any registration and filing
      with a Governmental Authority or other Person which if not obtained, held or
      made by such Covered Person has or is reasonably likely to have a Material
      Adverse Effect, and (ii) as to any Person who is a party to this Agreement
      or any of the other Loan Documents, any license, permit or consent from a
      Governmental Authority or other Person and any registration or filing with
      a
      Governmental Authority or other Person that is necessary for the execution
      or
      performance by such party, or the validity or enforceability against such party,
      of this Agreement or such other Loan Document.

     

    Material
      Obligation -- as to Borrower, any Guarantor or any Covered Person, an Obligation
      of such Person which if not fully and timely paid or performed has or is
      reasonably likely to have a Material Adverse Effect.

     

    Material
      Proceeding -- any litigation, investigation or other proceeding by or before
      any
      Governmental Authority (i) which involves any of the Loan Documents or any
      of the transactions contemplated thereby, or involves a Covered Person or a
      Guarantor as a party or any property of Covered Person or a Guarantor, and
      has
      or is reasonably likely to have a Material Adverse Effect if adversely
      determined, (ii) in which there has been issued an injunction, writ,
      temporary restraining order or any other order of any nature which purports
      to
      restrain or enjoin the making of any Advance, the consummation of any other
      transaction contemplated by the Loan Documents, or the enforceability of any
      provision of any of the Loan Documents, (iii) which involves the actual or
      alleged breach or violation by a Covered Person of, or default by a Covered
      Person under, any Material Agreement, or (iv) which involves the actual or
      alleged violation by a Covered Person or any Guarantor of any Material
      Law.

     

    Maturity
      -- as to any Indebtedness, the time when it becomes payable in full, whether
      at
      a regularly scheduled time, because of acceleration or otherwise.

     

    Maximum
      Available Amount -- is defined in Section 3.1.2.

     

    Multi-employer
      Plan -- a Pension Benefit Plan which is a multi-employer plan as defined in
      Section 4001(a)(3) of ERISA.

     

    Mortgagee
      Consent Agreement -- means each agreement described in Section 8.2 in form
      and substance satisfactory Administrative Agent and the Required
      Lenders.

     

    Net
      Income -- is defined in Section 15.1.

     

    Note
      --
      any Revolving Note, or the Swingline Note.

     

    Obligation
      -- as to any Person, any Indebtedness of such Person, any guaranty by such
      Person of any Indebtedness of another Person, and any contractual requirement
      enforceable against such Person that does not constitute Indebtedness of such
      Person or a guaranty by such Person but which would involve the expenditure
      of
      money by such Person if complied with or enforced.

     

    Obligations
      to Administrative Agent -- exclusive of all the Loan Obligations, all of
      Borrower’s Indebtedness owing to Administrative Agent (whether as principal,
      interest, fees or otherwise), all obligations of Borrower under agreements
      between Borrower and Administrative Agent under which the exposure of Borrower
      to fluctuations in interest rates is effectively limited, whether in the form
      of
      interest 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    rate
      cap
      agreements, interest rate swaps, or the like, or options therefor, all Indirect
      Obligations of Borrower owing to Administrative Agent, all reimbursement
      obligations of Borrower to Administrative Agent with respect to letters of
      credit, and all other obligations and liabilities of Borrower to Administrative
      Agent (including all extensions, renewals, modifications, rearrangements,
      restructures, replacements and refinancings of the foregoing, whether or not
      the
      same involve modifications to interest rates or other payment terms), whether
      now existing or hereafter created, absolute or contingent, direct or indirect,
      joint or several, secured or unsecured, due or not due, contractual or tortious,
      liquidated or unliquidated, arising by operation of law or otherwise, or
      acquired by Administrative Agent outright, conditionally or as collateral
      security from another, including the obligation of Borrower to repay future
      advances by Administrative Agent, whether or not made pursuant to commitment
      and
      whether or not presently contemplated by Borrower and Administrative
      Agent.

     

    Operating
      Lease -- any lease that is not a Capital Lease.

     

    Other
      Creditor Indebtedness -- individually and collectively, except for the
      Indebtedness owing to the Administrative Agent and the Lenders, the Indebtedness
      of Borrower which is secured by Inventory and proceeds thereof (excluding
      Accounts) of a Covered Person.

     

    Other
      Creditor Indebtedness Documents -- each document, instrument and agreement
      evidencing all or any portion of the Other Creditor Indebtedness.

     

    PBGC
      --
      the Pension Benefit Guaranty Corporation.

     

    Pension
      Benefit Plan -- any pension plan within the meaning of Section 3(2) of ERISA,
      including a Multiemployer Plan that is covered by Title IV of ERISA or Section
      412 of the Code.

     

    Permitted
      Acquisition -- is defined in Section 14.7

     

    Permitted
      Encumbrance -- any easement, license or similar encumbrance on any Covered
      Person’s real property, excluding any mortgage, assignment of rents or lease,
      deed of trust, or financing statement.

     

    Permitted
      Indebtedness -- Indebtedness that Borrower is permitted under Section 14.2
      to incur, assume, or allow to exist.

     

    Permitted
      Indirect Obligations -- Indirect Obligations that Borrower is permitted under
      Section 14.5 to create, incur, assume, or allow to exist.

     

    Permitted
      Investments -- Investments that Borrower is permitted under Section 14.1 to
      make in other Persons.

     

    Permitted
      Security Interests -- Security Interests that Borrower is permitted under
      Section 14.6 to create, incur, assume, or allow to exist.

     

    Person
      --
      any individual, partnership, corporation, trust, unincorporated association,
      joint venture, limited liability company, Governmental Authority, or other
      organization in any form that has the legal capacity to sue or be
      sued.  If the context so implies or requires, the term Person includes
      Borrower.

     

    Personal
      Property Collateral -- all of the Accounts, Chattel Paper, Commercial Tort
      Claims, Deposit Accounts, Documents, Equipment, Fixtures, General Intangibles,
      Health Care Insurance Receivables, Farm Products, Goods, Instruments,
      Intellectual Property, Inventory, Investment Property, leases, Letter-of-Credit
      Rights, money, Supporting Obligations, and other personal property of Borrower,
      any other Covered Person and every Subsidiary of Borrower or any other Covered
      Person, all books and 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    records
      pertaining to any of the foregoing, all proceeds, insurance proceeds, and
      products of any of the foregoing, and all collateral security and guaranties
      given by any Person with respect to any of the foregoing, whether now owned
      or
      hereafter acquired and wherever located, of Borrower, any other Covered Person,
      or any other Person, in which Administrative Agent at any time holds or purports
      to hold a Security Interest for the benefit of Lenders to secure payment and
      performance of any of the Loan Obligations.

     

    Preferred
      Capital Stock -- means any preferred capital stock or any convertible preferred
      capital stock, which is subordinated to the Loan Obligations on terms
      satisfactory to the Administrative Agent and issued on terms satisfactory to
      Administrative Agent.

     

    Prime
      Rate -- shall mean the higher of (a) the Federal Funds Rate (as such rate
      may fluctuate from time to time as provided for herein) for such day plus .50%,
      and (b) a fluctuating interest rate per annum equal to the highest of the
      prime, base or reference rates of interest announced publicly from time to
      time
      (whether or not charged in each instance) by JP Morgan Chase Bank, N.A. (or
      any
      successor thereof or any other financial institution selected by Administrative
      Agent in its sole discretion ) as such bank’s prime, base, or reference rate,
      which rate may not be the lowest rate of interest charged by such institution,
      Administrative Agent, or any Lender to its respective customers or a favored
      rate and may not correspond with future increases or decreases in interest
      rates
      charged by other lenders or market interest rates in general.

     

    Pro
      Forma
      Financial Statements -- the projections of Borrower referred to in
      Section 10.1.2.

     

    Regulation T,
      Regulation U, and Regulation X  -- respectively,
      Regulation T issued by the FRB, Regulation U issued by the FRB, and
      Regulation X issued by the FRB.

     

    Register
      -- is defined in Section 18.4.2.3.

     

    Reportable
      Event -- a reportable event as defined in Title IV of ERISA or the
      regulations thereunder excluding events with respect to which notice has been
      waived by the PBGC in writing.

     

    Representations
      and Warranties -- The representations and warranties made by Borrower with
      respect to itself and other Covered Persons in Section 11, and the
      representations and warranties made in any certificate, report, opinion or
      other
      document delivered by Borrower pursuant to the Loan Documents, as such
      representations and warranties are modified from time to time as provided in
      Section 12.

     

    Required
      Lenders -- defined in Section 2.5.

     

    Responsible
      Officer -- as to any Person that is not an individual, partnership or trust,
      the
      Chairman of the Board of Directors, the President, the chief executive officer,
      the chief operating officer, the chief financial officer, the Treasurer, any
      Assistant to the Treasurer, or any Vice President in charge of a principal
      business unit; as to any partnership, any individual who is a general partner
      thereof or any individual who has general management or administrative authority
      over all or any principal unit of the partnership’s business; and as to any
      trust, any individual who is a trustee.

     

    Revolving
      Loan -- any Lender’s pro-rata share of the Aggregate Revolving
      Loan.

     

    Revolving
      Loan Advance -- an Advance by Administrative Agent that is to be funded by
      Lenders under the Aggregate Revolving Loan Commitment.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Revolving
      Loan Commitment -- the commitment of each Lender as stated in
      Section 3.1.1. to fund Revolving Loan Advances.

     

    Revolving
      Loan Maturity Date -- the date when Borrower must repay the amount of Aggregate
      Revolving Loan and the Swingline Loan then outstanding as provided in
      Section 6.1.2.3.

     

    Revolving
      Note -- any note delivered to a Lender as required by Section 3.1.3 to
      evidence Borrower’s obligation to repay such Lender’s Revolving
      Loan.

     

    Schedule
      of Accounts -- a listing of each Account, including the aging of each Account
      of
      Borrower, in such reasonable detail as Administrative Agent may
      require.

     

    Schedule
      of Accounts Payable -- a listing of each account payable, including the aging
      of
      each account payable of Borrower, in such reasonable detail as Administrative
      Agent may require.

     

    Schedule
      of Inventory -- a listing of each item of existing Inventory, new Inventory
      purchases and items of Inventory sold or assigned within the past ninety
      (90) days from the date of the last such schedule, containing the
      following: location, manufacturer, age, quantity, initial date of purchase
      or
      lease by Borrower, actual cost, total accrued depreciation, and net book value
      of then-existing Inventory in such reasonable detail as Administrative Agent
      may
      require.

     

    Security
      Agreement -- any security agreement required or contemplated under
      Section 8.3 to be executed and delivered to Administrative Agent for the
      benefit of Lenders or otherwise delivered to Administrative Agent for the
      benefit of the Lenders from time to time.

     

    Security
      Documents -- all of the documents required or contemplated to be executed and
      delivered to Administrative Agent for the benefit of Lenders under
      Section 8, all other documents granting a Security Interest in any asset of
      Borrower or any other Person to secure the payment or performance of any of
      the
      Loan Obligations from time to time, including any such documents listed on
      Exhibit 10.1.1, all Collateral Assignments, and any similar documents at
      any time executed and delivered to Administrative Agent for the benefit of
      Lenders from time to time, by Borrower or any other Person to secure payment
      or
      performance of any of the Loan Obligations.

     

    Security
      Interest -- as to any item of tangible or intangible property, any interest
      therein or right with respect thereto or assignment thereof that secures an
      Obligation or Indirect Obligation, whether such interest or right is created
      under a Contract, or by operation of law or statute (such as but not limited
      to
      a statutory lien for work or materials), or as a result of a judgment, or which
      arises under any form of preferential or title retention agreement or
      arrangement (including a conditional sale agreement or a lease) that has
      substantially the same economic effect as any of the foregoing.

     

    Settlement
      Date -- is defined in Section 6.1.2.1.

     

    Solvent
      -- as to any Person, such Person not being “insolvent” within the meaning of
      Section 101(32) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent
      Transfer Act (the “UFTA”) or Section 3 of the Illinois Uniform Fraudulent
      Transfer Act set forth in Section 160/3 of the Illinois Compiled Statutes (1996)
      (the “Illinois UFTA”), (ii) such Person not having unreasonably small capital,
      within the meaning of Section 548 of the Bankruptcy Code, Section 4 of the
      UFTA,
      or Section 5 of the Illinois UFTA, and (iii) such Person not being unable to
      pay
      such Person’s debts as they become due within the meaning of Section 548 of the
      Bankruptcy Code, Section 4 of the UFTA, or Section 5 of the Illinois UFTA,
      or
      any other applicable Law.

     

    State
–
      any state of the United States.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Stock
      Pledge Agreement -- any stock pledge agreement required or contemplated under
      Section 8.3 to be executed and delivered to Administrative Agent for the benefit
      of Lenders.

     

    Subordinated
      Indebtedness -- means the Indebtedness subordinated to the Loan Obligations
      incurred on terms and conditions satisfactory to Administrative
      Agent.

     

    Subordinated
      Indebtedness Documents -- each document, instrument and agreement evidencing
      all
      or any portion of the Subordinated Indebtedness.

     

    Subordinated
      Lenders -- means each Person to whom the Subordinated Indebtedness is
      owed.

     

    Subordination
      Agreement -- the Subordination Agreement by and between Administrative Agent,
      on
      behalf of the Lenders, and the Subordinated Lenders, in form and substance
      satisfactory to Administrative Agent.

     

    Subsidiary
      -- as to any Person, another Person with respect to which more than 20% of
      the
      outstanding Capital Securities of each class having ordinary voting power (other
      than Capital Securities having such power only by reason of the happening of
      a
      contingency) is at the time owned by such Person or by one or more Subsidiaries
      of such Person.

     

    Swingline
      Advance -- an advance by Administrative Agent to Borrower under the Swingline
      Commitment.

     

    Swingline
      Commitment -- the commitment of Administrative Agent as stated in
      Section 3.3.1 to make Swingline Advances.

     

    Swingline
      Loan -- the from time to time outstanding principal balance of all Swingline
      Advances.

     

    Tax
      -- as
      to any Person, any tax, duty, impost, deduction, charges, withholdings,
      assessment, fee, or other charge levied by a Governmental Authority (and all
      liabilities associated therewith) on the income or property of such Person,
      including any interest or penalties thereon, and which is payable by such
      Person.

     

    Termination
      Fee -- is defined in Section 18.15.

     

    Third
      Person Reimbursement Agreements-  is defined in
      Section 18.6.5.

     

    this
      Agreement -- this document (including every document that is stated herein
      to be
      an appendix, exhibit or schedule hereto, whether or not physically attached
      to
      this document).

     

    Total
      Aggregate Facility Limit -- is defined in Section 3.6.

     

    Total
      Available Assets -- is defined in Section 15.1.

     

    Total
      Funded Indebtedness -- is defined in Section 15.1.

     

    Total
      Indebtedness -- with respect to any Person, the aggregate Indebtedness of such
      Person.

     

    Total
      Senior Indebtedness -- is defined in Section 15.1.

     

    Transaction
      Statement -- is defined in Section 4.3.2.

     

    UCC
      --
      the Uniform Commercial Code as in effect from time to time in the State of
      Illinois or such other similar statute as in effect from time to time in
      Illinois or any other appropriate jurisdiction.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    United
      States -- when used in a geographical sense, all the states of the United States
      of America and the District of Columbia; and when used in a legal jurisdictional
      sense, the government of the country that is the United States of
      America.

     

    Unused
      Revolving Fee -- is defined in Section 5.2.

     

    Vendor
      --
      is defined in Section 3.2.4.

     

    Vendor
      Agreement -- is defined in Section 3.2.8.

     

    Welfare
      Benefit Plan -- any plan described by Section 3(1) of ERISA.

     

    Wholly-Owned
      Subsidiary means, as to any Person, a Subsidiary all of the Capital Securities
      of which (except directors’ qualifying shares for foreign Subsidiaries) are at
      the time directly or indirectly owned by such Person and/or another Wholly-Owned
      Subsidiary of such Person.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      3

     

    LENDERS’
      COMMITMENTS AND PRO-RATA SHARES

     

    Subject
      to the Total Aggregate Facility Limit

    

    
      	
              LENDER

            	
              TOTALS

            	
              REVOLVING
                LOAN COMMIT-MENT

            	
              FLOORPLAN
                LOAN FACILITY

            	
              PRO-RATA

              SHARES

            
	
              GE
                Commercial Distribution Finance Corporation

            	
              $34,000,000.00

            	
              $20,000,000.00

            	
              $14,000,000.00

            	
              100.000000%

            
	
              AGGREGATES

            	
              $34,000,000.00

            	
              $20,000,000.00

            	
              $14,000,000.00

            	
              100.000000%

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT 7.10

     

    FORM
      OF REQUEST FOR REVOLVING LOAN ADVANCE

     

    GE
      Commercial Distribution Finance Corporation, as Administrative
      Agent

    3330
      Cumberland Blvd

    Suite
      330

    Atlanta,
      GA 30339

    Attn.:
      Ms. Theresia Roth, Documentation Manager

     

    
      	
               

            	
              Re:

            	
              Credit
                Facilities Agreement effective August 21, 2007, among MTM Technologies,
                Inc., MTM Technologies (US), Inc., MTM Technologies (Massachusetts),
                LLC,
                and Info Systems, Inc. (collectively and separately referred to as,
                “Borrower”), and GE Commercial Distribution Finance Corporation, for
                itself as a Lender and as Administrative Agent, and the other Lenders
                party thereto, as it may be amended, modified, restated or replaced
                from
                time to time (the “Credit
                Agreement”)

            

    

     

    Ladies
      and Gentlemen:

     

    The
      undersigned is a Borrowing Officer of MTM Technologies, Inc. and, as such is
      authorized to make and deliver this Advance Request on behalf of Borrower
      pursuant to Section  2.10 and Section 7.10 of the Credit
      Agreement.  All capitalized words used herein that are defined in the
      Credit Agreement have the meanings defined in the Credit Agreement.

     

    Borrower
      hereby requests that Administrative Agent make a Revolving Loan Advance of
      $_______ to Borrower under the terms of the Credit Agreement on
      _______________.  Of the requested Revolving Loan Advance, all is to
      be a LIBOR Advance.

     

    The
      undersigned hereby certifies that:

     

    
      	
               

            	
                
                (i)

            	
              There
                is no Existing Default.

            

    

     

    
      	
               

            	
                
                (ii)

            	
              The
                Representations and Warranties including those of each Guarantor
                in its
                Guaranty are true and will be true as of the time of the requested
                Revolving Loan Advance with such exceptions as have been disclosed
                to
                Lenders in writing by Borrower or any Guarantor and which are satisfactory
                to the Required Lenders.

            

    

     

    
      	
               

            	
                
                (iii)

            	
              The
                amount of the requested Revolving Loan Advance will not, when added
                to the
                current amount of the Aggregate Revolving Loan, exceed the Maximum
                Available Amount, nor will the Lenders’ Exposure exceed the Total
                Aggregate Facility Limit.

            

    

     

    
      	
               

            	
                
                (iv)

            	
              All
                conditions precedent under Sections 10.1 and 10.2 of the Credit
                Agreement have been satisfied.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Executed
      this ____ day of _______________, _____.

    
      

      
        	 	
                MTM
                  Technologies, Inc. on behalf of itself and the other
                  Borrowers

              
	 	 	 
	 	
                By
                  its

              	 
	 	 
	 	
                Typed
                  Name:

              	 

      

       

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      13.13

     

    FORM
      OF COMPLIANCE CERTIFICATE

     

    TO:           GE
      Commercial Distribution Finance Corporation, as Administrative
      Agent

     

    This
      Compliance Certificate is furnished pursuant to that certain Credit Facilities
      Agreement effective August 21, 2007 (as the same may be amended, modified,
      restated or replaced from time to time, the “Credit Agreement”), among MTM
      Technologies, Inc., MTM Technologies (US), Inc., MTM Technologies
      (Massachusetts), LLC, and Info Systems, Inc. (collectively and separately
      referred to as, “Borrower”), GE Commercial Distribution Finance Corporation
      (“CDF”), as Administrative Agent, and CDF and the Lenders as defined in the
      Credit Agreement.  Unless otherwise defined herein, capitalized terms
      used in this Compliance Certificate have the meanings defined in the Credit
      Agreement.

     

    THE
      UNDERSIGNED HEREBY CERTIFIES THAT:

     

    
      	
               

            	
              1.

            	
              I
                am the _______________ of MTM Technologies,
                Inc.

            

    

     

    
      	
               

            	
              2.

            	
              I
                have reviewed the terms of the Credit Agreement and the Loan Documents
                and
                I have made, or have caused to be made under my supervision, a review
                of
                the transactions and conditions of each Borrower and each other Covered
                Person during the accounting period covered by the attached Financial
                Statements.

            

    

     

    
      	
               

            	
              3.

            	
              The
                examinations described in paragraph 2 did not disclose, and I have
                no
                knowledge of, the existence of any condition or event which constitutes
                a
                Default or Event of Default as of the date of this Compliance Certificate;
                and to my knowledge all of the Representations and Warranties (including
                those of each Guarantor in its Guaranty) are true (with such exceptions
                as
                have been disclosed to Lenders in writing by Borrower or any Guarantor
                and
                which are satisfactory to the Required
                Lenders).

            

    

     

    
      	
               

            	
              4.

            	
              [Use
                for annual financial statements: Schedule I attached hereto contains
                the
                Financial Statements for Borrower for the fiscal year ended ____________,
                which are complete and correct in all material respects and have
                been
                prepared in accordance with GAAP applied consistently throughout
                the
                period and with prior periods (except as disclosed
                therein).]

            

    

     

    
      	
               

            	
              [Use
                for quarterly financial statements: Schedule I attached hereto contains
                the Financial Statements for Borrower for the fiscal quarter ended
                _______
                which are complete and correct in all material respects (subject
                to normal
                year-end audit adjustments) and have been prepared in accordance
                with GAAP
                applied consistently throughout the period and with prior periods
                (except
                as disclosed therein).]

            

    

     

    
      	
               

            	
              5.

            	
              Each
                Borrower and every other Covered Person is in compliance with all
                of the
                covenants in the Credit Agreement, including the financial covenants
                in
                Section 15, and Schedule II attached hereto contains calculations
                based on Borrower’s consolidated financial statements and other financial
                records that show Borrower’s compliance with such financial
                covenants.  The calculations and the data upon which they are
                based are believed by me to be complete and
                correct.

            

    

     

    This
      Compliance Certificate, together with the Schedules hereto, is executed and
      delivered this ______day of __________.  The undersigned is a
      duly authorized Borrowing Officer of each Borrower.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MTM
      Technologies, Inc.

    on
      behalf
      of itself and the other Borrowers

     

    
      

      
        	 
	
                Print
                  Name:

              	 
	
                Title:

              	 

      

       

    

    Schedules
      I and II are Attached

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SCHEDULE I
      TO COMPLIANCE CERTIFICATE

     

    See
      current Financial Statements attached.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      II TO COMPLIANCE CERTIFICATE

     

    Note:
      the text of Section 15 of the Loan Agreement controls
      over any difference between this certificate and Section
15 of the Loan Agreement.  Reference should
      be made to the Loan Agreement for more specific instructions regarding the
      calculation periods and how the components of the financial covenants should
      be
      calculated.

     

    All
      calculations done in accordance with GAAP on a consolidated basis, in accordance
      with the provisions of the Credit Facilities Agreement and are based on the
      period ended __________________.

     

    
      
         

          
            	
                    I.

                  	
                    Minimum
                      Liquidation Recovery calculated
                      monthly

                  	 
	 	 	 
	 	
                    A.

                  	
                    Net
                      Recovery

                  	 
	 	 	
                    (i)
                      (A) 100% of the face amount of all Accounts of Borrower minus
                      the bad debt
                      reserve as set forth in the Financial Statements for the most
                      recently
                      ended fiscal month multiplied by (B) 100% minus (C) Dilution
                      multiplied by 2 plus (D) 5% of the amount in  clause
                      (i)(C)

                  	
                    $_________

                  
	 	 	
                    (ii)
                      the Inventory Floorplan Value as calculated by Administrative
                      Agent as of
                      the last day of the most recently completed fiscal month

                  	
                    $_________

                  
	 	 	
                    (iii)
                      50% multiplied by total aggregate wholesale invoice price of
                      all of
                      Borrower’s Inventory that is not financed under the Floorplan Loan
                      Facility and the Interim Floorplan Loan Facility

                  	
                    $_________

                  
	 	 	
                    (iv)
                      an amount equal to--

                  	
                    $1,000,000

                  
	 	 	
                    (v)
                      Net Recovery: Item (i) plus Item (ii) plus Item (iii)
                      minus Item (iv)

                  	
                    $_________

                  
	 	 	 	 
	 	
                    B.

                  	
                    the
                      lesser of (i) the amount of the Aggregate Revolving Loan Commitment
                      as of
                      the last day of the most recently completed fiscal month and
                      (ii) the
                      Borrowing Base as shown in the Borrowing Base Certificate provided
                      to
                      Administrative Agent closest to (but not after) the end of
                      the most
                      recently completed fiscal month

                  	
                    $_________

                  
	 	 	 	 
	 	
                    C.

                  	
                    Item
                      A(v) divided Item (B)

                  	
                     _________

                  
	 	 	 	 
	 	
                    D.

                  	
                    Minimum
                      Ratio Permitted by Section 15.2

                  	
                    1.20
                      to 1.00

                  
	 	 	 	 
	
                    II

                  	 Minimum
                    EBITDA  calculated
                    quarterly	 
	 	 	 	 
	 	
                    A.

                  	
                    EBITDA
                      (for each fiscal quarter)

                    (see
                      definition of EBITDA in Section 15.1)

                  	
                    $_________

                  
	 	 	
                    (i)

                  	
                    Net
                      Income

                  	
                    $_________

                  
	 	 	
                    (ii)

                  	
                    Interest
                      Expense

                  	
                    $_________

                  
	 	 	
                    (iii)

                  	
                    income
                      tax expense

                  	
                    $_________

                  
	 	 	
                    (iv)

                  	
                    depreciation
                      expense

                  	
                    $_________

                  
	 	 	
                    (v)

                  	
                    amortization
                      expense

                  	
                    $_________

                  

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            	 	 	
                    (vi)

                  	
                    nonrecurring
                      losses under GAAP in such period

                  	
                    $_________

                  
	 	 	
                    (vii)

                  	
                    all
                      extraordinary losses not otherwise related to the continuing
                      operations of
                      the Borrower in such period

                  	
                    $_________

                  
	 	 	
                    (viii)

                  	
                    actual
                      cash and non-cash nonrecurring severance and actual cash and
                      non-cash
                      nonrecurring restructuring charges for such period up to $250,000
                      in the
                      aggregate in a fiscal quarter and up to $750,000 in the aggregate
                      during
                      the term of this Agreement

                  	
                    $_________

                  
	 	 	
                    (ix)

                  	
                    Non-cash
                      charges relating to any share-based compensation awards, to
                      the extent
                      such non-cash charges were expensed during such period in accordance
                      with
                      SFAS 123R or are required to be shown as an expense in any
                      financial
                      statements for periods prior to the effective date of SFAS
                      123R

                  	
                    $_________

                  
	 	 	
                    (x)

                  	
                    extraordinary
                      gains under GAAP in such period

                  	
                    $_________

                  
	 	 	
                    (xi)

                  	
                    all
                      extraordinary gains not otherwise related to the continuing
                      operations of
                      the Borrower in such period

                  	
                    $_________

                  
	 	 	
                    (xii)

                  	
                    Sum
                      of items (i) through (ix) less items (x) and (xi) is
                      EBITDA

                  	
                    $_________

                  
	 	 	 	 
	 	
                    B.

                  	
                    Minimum
                      EBITDA Required by Section 15.3

                  	 
	 	 	 	 
	 	
                    C.

                  	
                    EBITDA
                      for preceding 4 fiscal quarters

                  	 
	 	 	 	 
	
                    III.

                  	
                    Excess
                      Cash/Marketable Securities  plus Availability Section
                      15.5 certified monthly

                  	 
	 	
                    A.

                  	
                    the
                      amount of cash or marketable securities permitted by Section
                      14.1.4
                      hereof

                  	
                    $_________

                  
	 	 	 	 
	 	
                    B.

                  	
                    the
                      Borrowing Base on such date

                  	
                    $_________

                  
	 	 	 	 
	 	
                    C.

                  	
                    the
                      Swingline Loan,

                  	 
	 	 	 	 
	 	
                    D.

                  	
                    the
                      Floorplan Shortfall,

                  	 
	 	 	 	 
	 	
                    E.

                  	
                    the
                      Letter of Credit Exposure (except to the extent that a Revolving
                      Loan
                      Advance will be used immediately to reimburse Letter of Credit
                      Issuer for
                      unreimbursed draws on a Letter of Credit)

                  	
                    $_________

                  
	 	 	 	 
	 	
                    F.

                  	
                    without
                      duplication, the outstanding Aggregate Revolving Loans

                  	
                    $_________

                  
	 	 	 	 
	 	
                    G.

                  	
                    the
                      amount of the Other Creditor Indebtedness (unless an Intercreditor
                      Agreement in form and substance satisfactory to Administrative
                      Agent has
                      been executed between Administrative Agent and the holder of
                      such Other
                      Creditor Indebtedness)

                  	
                    $_________

                  
	 	 	 	 
	 	
                    H.

                  	
                    the
                      amount of Bid Bonds

                  	
                    $_________

                  
	 	 	 	 
	 	
                    I.

                  	
                    the
                      sum of Items C, D, E, F, G and H

                  	
                    $_________

                  
	 	 	 	 
	 	
                    J.

                  	
                    Item
                      B minus Item I

                  	
                    $_________

                  

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            	 	 	 	 
	 	
                    K.

                  	
                    the
                      sum of Item A and Item J

                  	
                    $_________

                  
	 	 	 	 
	 	
                    L.

                  	
                    Minimum
                      Required by Section 15.5

                  	
                    $1,500,000

                  
	 	 	 	 

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            	
                    IV.

                  	
                    Maximum
                      Total Funded Indebtedness to EBITDA  calculated fiscal year
                      end only

                  	 
	 	 	 
	 	
                    A.

                  	
                    Total
                      Funded Indebtedness (see definition in Section 15.1)

                  	
                    $_________

                  
	 	 	 	 
	 	
                    B.

                  	
                    Total
                      Funded Indebtedness (see definition in Section 15.1)

                  	
                    $_________

                  
	 	 	 	 
	 	
                    C.

                  	
                    Ratio
                      of VA to VB

                  	
                    $_________

                  
	 	 	 	 
	 	
                    D.

                  	
                    Maximum
                      ratio permitted by Section 15.4

                  	
                    4.00
                      to 1.00

                  

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      18.4.1

     

    FORM
      OF
      ASSIGNMENT AND ACCEPTANCE

     

    DATED
      _________________, _____

     

    Reference
      is made to the Credit Facilities Agreement dated as of August 21, 2007 (as
      amended, modified, restated and/or replaced from time to time, the “Credit
      Agreement”) among MTM Technologies, Inc., MTM Technologies (US), Inc., MTM
      Technologies (Massachusetts), LLC, and Info Systems, Inc. (collectively and
      separately referred to as, “Borrower”) and GE Commercial Distribution Finance
      Corporation (“CDF”), as Administrative Agent, and CDF and the Lenders as defined
      in the Credit Agreement.  Terms defined in the Credit Agreement are
      used herein with the same meaning.

     

    The
      “Assignor” and the “Assignee” referred to on Schedule 1 agree as
      follows:

     

    1.           The
      Assignor hereby sells and assigns to the Assignee, without recourse and without
      representation or warranty except as expressly set forth herein, and the
      Assignee hereby purchases and assumes from the Assignor, an interest in and
      to
      the Assignor’s rights and obligations under the Credit Agreement and the other
      Loan Documents as of the date hereof equal to the percentage interest specified
      on Schedule 1 of all outstanding rights and obligations under the Credit
      Agreement and the other Loan Documents.  After giving effect to such
      sale and assignment, the Assignee’s Commitment and the amount of the Loans owing
      to the Assignee will be as set forth on Schedule 1.  Such
      purchase and assumption shall include that portion of Assignor’s obligations to
      fund unfunded Approvals equal to the percentage of the Floorplan Loans being
      assigned by Assignor to Assignee.

    

    2.           The
      Assignor (i) represents and warrants that 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 adverse claim; (ii) 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 Documents
      or the execution, legality, validity, enforceability, genuineness, sufficiency
      or value of the Loan Documents or any other instrument or document furnished
      pursuant thereto; (iii) makes no representation or warranty and assumes no
      responsibility with respect to the financial condition of any Covered Person
      or
      any Guarantor, or the performance or observance by any Covered Person or any
      Guarantor of any of its obligations under the Loan Documents or any other
      instrument or document furnished pursuant thereto; and (iv) attaches the
      Notes held by the Assignor and requests that the Administrative Agent exchange
      such Notes for new Notes payable to the order of the Assignee in an amount
      equal
      to the Commitment assumed by the Assignee pursuant hereto and to the Assignor
      in
      an amount equal to the Commitment retained by the Assignor, if any, as specified
      on Schedule 1.

     

    3.           The
      Assignee (i) confirms that it has received a copy of the Credit Agreement,
      together with copies of the financial statements referred to in
      Section 13.13 thereof and such other documents and information as it has
      deemed appropriate to make its own credit analysis and decision to enter into
      this Assignment and Acceptance; (ii) agrees that it will, independently and
      without reliance upon the Administrative Agent, the Assignor or any other Lender
      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 the Credit Agreement; (iii) confirms that it is an Eligible Assignee;
      (iv) appoints and authorizes the Administrative Agent to take such action
      as agent on its behalf and to exercise such powers and discretion under the
      Credit Agreement as are delegated to the Administrative Agent by the terms
      thereof, together with such powers and discretion as are reasonably incidental
      thereto; (v) agrees that it will perform in accordance with their terms all
      of the obligations that by the terms of the Credit

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Agreement
      are required to be performed by it as a Lender; and (vi) attaches any U.S.
      Internal Revenue Service or other forms required under the Credit
      Agreement.

     

    4.    Following
      the execution of this Assignment and Acceptance, it will be delivered to the
      Administrative Agent for acceptance and recording by the Administrative
      Agent.  The effective date for this Assignment and Acceptance (the
“Effective Date”) shall be the date of acceptance hereof by the
      Administrative Agent, unless otherwise specified on
      Schedule 1.

     

    5.           Upon
      such acceptance and recording by the Administrative Agent, as of the Effective
      Date, (i) the Assignee shall be a party to the Credit Agreement and, to the
      extent provided in this Assignment and Acceptance, have the rights and
      obligations of a Lender thereunder and (ii) the Assignor shall, to the
      extent provided in this Assignment and Acceptance, relinquish its rights and
      be
      released from its obligations under the Credit Agreement.

     

    6.           Upon
      such acceptance and recording by the Administrative Agent, from and after the
      Effective Date, the Administrative Agent shall make all payments under the
      Credit Agreement and the Notes in respect of the interest assigned hereby
      (including, without limitation, all payments of principal, interest and
      commitment fees with respect thereto) to the Assignee.  The Assignor
      and Assignee shall make all appropriate adjustments in payments under the Credit
      Agreement and the Notes for periods prior to the Effective Date directly between
      themselves.

     

    7.           Assignor
      represents and warrants that is has paid an assignment and a processing fee
      of
      $3,500 to Administrative Agent.

     

    8.           This
      Assignment and Acceptance shall be governed by, and construed in accordance
      with, the laws of the State of Illinois.

     

    9.           This
      Assignment and Acceptance may be executed in any number of counterparts and
      by
      different parties hereto in separate counterparts, each of which when so
      executed shall be deemed to be an original and all of which taken together
      shall
      constitute one and the same agreement.  Delivery of an executed
      counterpart of Schedule 1 to this Assignment and Acceptance by telecopier
      shall be effective as delivery of a manually executed counterpart of this
      Assignment and Acceptance.

     

    IN
      WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to
      this Assignment and Acceptance to be executed by their officers thereunto duly
      authorized as of the date specified thereon.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 1

    to

    ASSIGNMENT
      AND ACCEPTANCE

     

    
      
        	
                Assignor’s
                  Pro Rata Share after giving effect hereto:

              	
                ______%

              
	 	 
	
                Assignee’s
                  Pro Rata Share after giving effect hereto:

              	
                ______%

              
	 	 
	
                Assignor’s
                  Commitment after giving effect hereto:

              	
                $______

              
	 	 
	
                Assignee’s
                  Commitment after giving effect hereto :

              	
                $______

              
	 	 
	
                Aggregate
                  outstanding principal amount of Loans assigned:

              	
                $______

              
	 	 
	
                Principal
                  amount of Revolving Note payable to Assignee:

              	
                $______

              
	 	 
	
                Principal
                  amount of Floorplan Loans payable to Assignee:

              	
                $______

              
	 	 
	
                Amount
                  of unfunded Approvals payable by Assignee:

              	
                $______

              
	 	 
	
                Principal
                  amount of Revolving Note payable to Assignor:

              	
                $______

              
	 	 
	
                Principal
                  amount of Floorplan Loans payable to Assignor:

              	
                $______

              
	 	 
	
                Amount
                  of unfunded Approvals payable by Assignor:

              	
                $______

              
	 	 
	
                Effective
                  Date (if other than date of acceptance by Administrative
                  Agent):

              	
                *___________,
                  ____

              

      

    

     

     

    
       

        
          	 	
                  [NAME
                    OF ASSIGNOR], as Assignor

                
	 	 	 
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Title:

                	 
	 	 	
                  Dated:

                	
                  __________,
                    20___

                
	 	 	 
	 	 	 
	 	
                  [NAME
                    OF ASSIGNEE], as Assignee

                
	 	 	 
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Title:

                	 
	 	 	 	 
	 	
                  Domestic
                    Lending Office:

                  LIBOR
                    Lending Office:

                

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    *This
      date should be no earlier than five Business Days after the delivery of this
      Assignment and Acceptance to the Administrative Agent.

     

    Accepted
      and Approved

    this
      _____ day of ____________, ____

     

     

     

    GE
      COMMERCIAL DISTRIBUTION FINANCE CORPORATION,

    as
      Administrative Agent

     

    
      

      
        	
                By:

              	 
	 	
                Title:

              	 

      

    

     

     

     

    ONLY
      IF THERE IS NO EXISTING DEFAULT, THEN ALSO THE FOLLOWING
      SIGNATURE

     

    MTM
      TECHNOLOGIES, INC.

    on
      behalf
      of itself and the other Borrowers

     

     

    
      
        	
                By:

              	 
	 	
                Title:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    TABLE
      OF CONTENTS

     

    
      
        
           

            
              	 	 	
                      Page 

                    
	
                      1.

                    	
                      Effective
                        Date.

                    	
                      1

                    
	
                      2.

                    	
                      Definitions;
                        Rules of Construction; Borrowing Agent; Patriot Act.

                    	
                      1

                    
	 	
                      2.1.

                    	
                      Listed
                        Definitions.

                    	
                      1

                    
	 	
                      2.2.

                    	
                      Other
                        Definitions.

                    	
                      1

                    
	 	
                      2.3.

                    	
                      References
                        to Borrower.

                    	
                      1

                    
	 	
                      2.4.

                    	
                      References
                        to Covered Person.

                    	
                      1

                    
	 	
                      2.5.

                    	
                      References
                        to Required Lenders.

                    	
                      1

                    
	 	
                      2.6.

                    	
                      Accounting
                        Terms.

                    	
                      1

                    
	 	
                      2.7.

                    	
                      Meaning
                        of Satisfactory.

                    	
                      1

                    
	 	
                      2.8.

                    	
                      Computation
                        of Time Periods.

                    	
                      2

                    
	 	
                      2.9.

                    	
                      Syndication
                        Agent.

                    	
                      2

                    
	 	
                      2.10.

                    	
                      Certificates
                        of Borrower and Borrowing Officer, Advance Requests; Borrowing
                        Agent.

                    	
                      2

                    
	 	
                      2.11.

                    	
                      General.

                    	
                      2

                    
	 	
                      2.12.

                    	
                      Patriot
                        Act Notification.

                    	
                      3

                    
	 	
                      2.13.

                    	
                      Other
                        Deposits and Extensions of Credit.

                    	
                      3

                    
	
                      3.

                    	
                      Lenders’
                        Commitments and Facilities.

                    	
                      3

                    
	 	
                      3.1.

                    	
                      Revolving
                        Loan Commitments.

                    	
                      3

                    
	 	 	
                      3.1.1.

                    	
                      Aggregate
                        Amount.

                    	
                      3

                    
	 	 	
                      3.1.2.

                    	
                      Limitation
                        on Revolving Loan Advances.

                    	
                      4

                    
	 	 	
                      3.1.3.

                    	
                      Revolving
                        Notes.

                    	
                      4

                    
	 	 	
                      3.1.4.

                    	
                      Borrowing
                        Base.

                    	
                      5

                    
	 	 	
                      3.1.5.

                    	
                      Eligible
                        Accounts.

                    	
                      5

                    
	 	
                      3.2.

                    	
                      Floorplan
                        Loan Facility.

                    	
                      7

                    
	 	 	
                      3.2.1.

                    	
                      Floorplan
                        Loan Facility Generally.

                    	
                      7

                    
	 	 	
                      3.2.2.

                    	
                      Interim
                        Floorplan Loan Advances.

                    	
                      7

                    
	 	 	
                      3.2.3.

                    	
                      Limitations
                        on Interim Floorplan Loan Advances.

                    	 
	 	 	
                      3.2.4.

                    	
                      Operation
                        of Floorplan Loan Facility and Interim Floorplan Loan
                        Facility.

                    	
                      8

                    
	 	 	
                      3.2.5.

                    	
                      Floorplan
                        Loan Approvals.

                    	
                      8

                    
	 	 	
                      3.2.6.

                    	
                      Inventory
                        not Available for Floorplan Loans and Interim Floorplan
                        Loans.

                    	
                      8

                    
	 	 	
                      3.2.7.

                    	
                      Termination
                        of Floorplan Loan Facility and Interim Floorplan Loan
                        Facility.

                    	
                      9

                    
	 	 	
                      3.2.8.

                    	
                      Repurchase
                        Agreements.

                    	
                      10

                    
	 	
                      3.3.

                    	
                      Swingline
                        Commitment.

                    	
                      10

                    
	 	 	
                      3.3.1.

                    	
                      Swingline
                        Advances.

                    	
                      10

                    
	 	 	
                      3.3.2.

                    	
                      Limitations
                        on Swingline Advances.

                    	
                      10

                    
	 	 	
                      3.3.3.

                    	
                      Swingline
                        Note.

                    	
                      11

                    
	 	
                      3.4.

                    	
                      Letter
                        of Credit Facility.

                    	
                      11

                    
	 	
                      3.5.

                    	
                      Termination.

                    	
                      12

                    
	 	
                      3.6.

                    	
                      Total
                        Aggregate Facility Limit.

                    	
                      13

                    
	
                      4.

                    	
                      Interest;
                        Yield Protection.

                    	
                      13

                    
	 	
                      4.1.

                    	
                      Interest
                        on the Swingline Loan.

                    	
                      13

                    
	 	
                      4.2.

                    	
                      Interest
                        on Draws on Letters of Credit.

                    	
                      13

                    
	 	
                      4.3.

                    	
                      Interest
                        on the Floorplan Loan and Interim Floorplan Loan --Administrative
                        Agent
                        and CDF as a Lender Only.

                    	
                      13

                    

            

             

            
              
                
                

              

              
                i

                
                  

                

              

              
                
                

              

            

             

            
              	 	
                      4.4.

                    	
                      Interest
                        on Aggregate Loans--Other than Floorplan Loans.

                    	
                      15

                    
	 	
                      4.5.

                    	
                      Interest
                        on Floorplan Loans; Administrative Agent Deficiency
                        Amount.

                    	
                      15

                    
	 	
                      4.6.

                    	
                      Adjusted
                        LIBOR Rate.

                    	
                      16

                    
	 	
                      4.7.

                    	
                      LIBOR
                        Increments.

                    	
                      16

                    
	 	
                      4.8.

                    	
                      Time
                        of Accrual.

                    	
                      16

                    
	 	
                      4.9.

                    	
                      Computation.

                    	
                      16

                    
	 	
                      4.10.

                    	
                      Rate
                        After Maturity and Rate After An Event of Default.

                    	
                      16

                    
	 	
                      4.11.

                    	
                      Taxes.

                    	
                      17

                    
	 	
                      4.12.

                    	
                      Compensation
                        for Increased Costs and Reduced Returns; Capital Adequacy.

                    	
                      18

                    
	 	
                      4.13.

                    	
                      Usury.

                    	
                      19

                    
	
                      5.

                    	
                      Fees.

                    	
                      19

                    
	 	
                      5.1.

                    	
                      Annual
                        Facility Fee.

                    	
                      19

                    
	 	
                      5.2.

                    	
                      Unused
                        Revolving Fee.

                    	
                      19

                    
	 	
                      5.3.

                    	
                      Letter
                        of Credit Fees.

                    	
                      19

                    
	 	
                      5.4.

                    	
                      Letter
                        of Credit Fronting Fee.

                    	
                      20

                    
	 	
                      5.5.

                    	
                      Other
                        Letter of Credit Fees.

                    	
                      20

                    
	 	
                      5.6.

                    	
                      Calculation
                        of Fees.

                    	
                      20

                    
	
                      6.

                    	
                      Payments.

                    	
                      20

                    
	 	
                      6.1.

                    	
                      Scheduled
                        Payments on Loans; Applications to Loans.

                    	
                      20

                    
	 	 	
                      6.1.1.

                    	
                      Interest.

                    	
                      20

                    
	 	 	 	
                      6.1.1.1.

                    	
                      20

                    
	 	 	
                      6.1.2.

                    	
                      Principal.

                    	
                      21

                    
	 	 	
                      6.1.2.3.

                    	
                      Maturity.

                    	
                      22

                    
	 	
                      6.2.

                    	
                      Special
                        Requirement for Payments on Floorplan Loans and Interim Floorplan
                        Loans.

                    	
                      23

                    
	 	
                      6.3.

                    	
                      Prepayments.

                    	
                      23

                    
	 	 	
                      6.3.1.

                    	
                      Voluntary
                        Prepayments.

                    	
                      23

                    
	 	 	
                      6.3.2.

                    	
                      Mandatory
                        Prepayments.

                    	
                      24

                    
	 	 	
                      6.3.3.

                    	
                      Other
                        Mandatory Prepayments.

                    	
                      24

                    
	 	 	 	
                      6.3.3.1.      
                        Proceeds
                        from Sales of Assets.

                    	
                       

                    	
                      24

                    
	 	 	 	
                      6.3.3.2.      
                        Proceeds
                        from Sale of Securities or Indebtedness.

                    	
                      24

                    
	 	 	 	
                      6.3.3.3.      
                        Insurance
                        Proceeds.

                    	
                       

                    	
                      25

                    
	 	
                      6.4.

                    	
                      Reimbursement
                        Obligations of Borrower.

                    	
                      25

                    
	 	
                      6.5.

                    	
                      Manner
                        of Payments and Timing of Application of Payments.

                    	
                      25

                    
	 	 	
                      6.5.1.

                    	
                      Payment
                        Requirement.

                    	
                      25

                    
	 	 	
                      6.5.2.

                    	
                      Application
                        of Payments and Proceeds.

                    	
                      25

                    
	 	 	
                      6.5.3.

                    	
                      Interest
                        Calculation.

                    	
                      26

                    
	 	
                      6.6.

                    	
                      Returned
                        Instruments.

                    	
                      26

                    
	 	
                      6.7.

                    	
                      Compelled
                        Return of Payments or Proceeds.

                    	
                      26

                    
	 	
                      6.8.

                    	
                      Due
                        Dates Not on Business Days.

                    	
                      27

                    
	
                      7.

                    	
                      Procedure
                        for Obtaining Advances.

                    	
                      27

                    
	 	
                      7.1.

                    	
                      Initial
                        Advances.

                    	
                      27

                    
	 	
                      7.2.

                    	
                      Subsequent
                        Revolving Loan Advances.

                    	
                      27

                    
	 	
                      7.3.

                    	
                      Subsequent
                        Floorplan Loan Advances.

                    	
                      27

                    
	 	 	
                      7.3.1.

                    	
                      Repayment
                        of the Swingline Loan and the Interim Floorplan Loan.

                    	
                      27

                    
	 	 	
                      7.3.2.

                    	
                      Administrative
                        Agent’s Right to Make Other Certain Advances.

                    	
                      28

                    
	 	 	 	
                      7.3.2.1.

                    	
                      Payment
                        of Loan Obligations.

                    	
                      28

                    
	 	 	 	
                      7.3.2.2.

                    	
                      Payments
                        to Other Creditors.

                    	
                      28

                    
	 	
                      7.4.

                    	
                      Fundings.

                    	
                      29

                    
	 	 	
                      7.4.1.

                    	
                      Advances.

                    	
                      29

                    
	 	 	 	
                      7.4.2.

                    	
                      Draws
                        on Letters of Credit.

                    	
                      29

                    

            

             

            
              
                
                

              

              
                ii

                
                  

                

              

              
                
                

              

            

             

            
              	 	 	 	
                      7.4.3.

                    	
                      All
                        Fundings Ratable.

                    	
                      29

                    
	 	
                      7.5.

                    	
                      Administrative
                        Agent’s Availability Assumption.

                    	
                      29

                    
	 	
                      7.6.

                    	
                      Letters
                        of Credit.

                    	
                      31

                    
	 	
                      7.7.

                    	
                      Disbursement.

                    	
                      31

                    
	 	
                      7.8.

                    	
                      Restrictions
                        on Advances.

                    	
                      31

                    
	 	
                      7.9.

                    	
                      Each
                        Advance Request and Request for Letter of Credit a
                        Certification.

                    	
                      31

                    
	 	
                      7.10.

                    	
                      Requirements
                        for Every Advance Request.

                    	
                      31

                    
	 	
                      7.11.

                    	
                      Requirements
                        for Every Letter of Credit Request.

                    	
                      32

                    
	 	
                      7.12.

                    	
                      Exoneration
                        of Administrative Agent and Lenders.

                    	
                      32

                    
	
                      8.

                    	
                      Security.

                    	
                      32

                    
	 	
                      8.1.

                    	
                      Landlord
                        Consents.

                    	
                      32

                    
	 	
                      8.2.

                    	
                      Mortgagee
                        Consent Agreements.

                    	
                      32

                    
	 	
                      8.3.

                    	
                      Security
                        Agreements.

                    	
                      33

                    
	 	
                      8.4.

                    	
                      Stock
                        Pledge Agreements.

                    	
                      33

                    
	 	
                      8.5.

                    	
                      Collateral
                        Assignments.

                    	
                      33

                    
	 	 	
                      8.5.1.

                    	
                      Intellectual
                        Property Assignments.

                    	
                      33

                    
	 	 	
                      8.5.2.

                    	
                      Control
                        Agreements.

                    	
                      33

                    
	
                      9.

                    	
                      Power
                        of Attorney.

                    	
                      33

                    
	
                      10.

                    	
                      Conditions
                        of Lending.

                    	
                      34

                    
	 	
                      10.1.

                    	
                      Conditions
                        to Initial Advance.

                    	
                      34

                    
	 	 	
                      10.1.1.

                    	
                      Listed
                        Documents and Other Items.

                    	
                      34

                    
	 	 	
                      10.1.2.

                    	
                      Financial
                        Condition.

                    	
                      34

                    
	 	 	 	
                      10.1.3.

                    	
                      Intercreditor
                        Agreements.

                    	
                      34

                    
	 	 	 	
                      10.1.4.

                    	
                      Subordination
                        Agreements.

                    	
                      35

                    
	 	 	 	
                      10.1.5.

                    	
                      Default.

                    	
                      35

                    
	 	 	 	
                      10.1.6.

                    	
                      Perfection
                        of Security Interests.

                    	
                      35

                    
	 	 	 	
                      10.1.7.

                    	
                      Representations
                        and Warranties.

                    	
                      35

                    
	 	 	 	
                      10.1.8.

                    	
                      Material
                        Adverse Change.

                    	
                      35

                    
	 	 	 	
                      10.1.9.

                    	
                      Pending
                        Material Proceedings.

                    	
                      35

                    
	 	 	 	
                      10.1.10.

                    	
                      Payment
                        of Fees.

                    	
                      35

                    
	 	 	 	
                      10.1.11.

                    	
                      Other
                        Items.

                    	
                      35

                    
	 	
                      10.2.

                    	
                      Conditions
                        to Subsequent Advances.

                    	
                      35

                    
	 	 	
                      10.2.1.

                    	
                      General
                        Conditions.

                    	
                      35

                    
	 	 	
                      10.2.2.

                    	
                      Representations
                        and Warranties.

                    	
                      35

                    
	 	 	
                      10.2.3.

                    	
                      Approvals.

                    	
                      35

                    
	 	 	
                      10.2.4.

                    	
                      Default.

                    	
                      36

                    
	 	
                      10.3.

                    	
                      Conditions
                        to Issuance of Letters of Credit.

                    	
                      36

                    
	 	 	
                      10.3.1.

                    	
                      Letter
                        of Credit Application/Reimbursement Agreement.

                    	
                      36

                    
	 	 	
                      10.3.2.

                    	
                      No
                        Prohibitions.

                    	
                      36

                    
	 	 	
                      10.3.3.

                    	
                      Representations
                        and Warranties.

                    	
                      36

                    
	 	 	
                      10.3.4.

                    	
                      No
                        Material Proceedings.

                    	
                      36

                    
	 	 	
                      10.3.5.

                    	
                      No
                        Default.

                    	
                      36

                    
	 	 	
                      10.3.6.

                    	
                      Other
                        Conditions.

                    	
                      36

                    
	
                      11.

                    	
                      Representations
                        and Warranties.

                    	
                      36

                    
	 	
                      11.1.

                    	
                      Organization
                        and Existence.

                    	
                      37

                    
	 	
                      11.2.

                    	
                      Authorization.

                    	
                      37

                    
	 	
                      11.3.

                    	
                      Due
                        Execution.

                    	
                      37

                    
	 	
                      11.4.

                    	
                      Enforceability
                        of Obligations.

                    	
                      37

                    
	 	
                      11.5.

                    	
                      Burdensome
                        Obligations.

                    	
                      37

                    
	 	
                      11.6.

                    	
                      Legal
                        Restraints.

                    	
                      37

                    
	 	
                      11.7.

                    	
                      Labor
                        Contracts and Disputes.

                    	
                      37

                    

            

             

            
              
                
                

              

              
                iii

                
                  

                

              

              
                
                

              

            

             

            
              	 	
                      11.8.

                    	
                      No
                        Material Proceedings.

                    	
                      38

                    
	 	
                      11.9.

                    	
                      Material
                        Licenses.

                    	
                      38

                    
	 	
                      11.10.

                    	
                      Compliance
                        with Material Laws.

                    	
                      38

                    
	 	 	
                      11.10.1.

                    	
                      General
                        Compliance with Environmental Laws.

                    	
                      38

                    
	 	 	
                      11.10.2.

                    	
                      Proceedings.

                    	
                      38

                    
	 	 	
                      11.10.3.

                    	
                      Investigations
                        Regarding Hazardous Materials.

                    	
                      38

                    
	 	 	
                      11.10.4.

                    	
                      Notices
                        and Reports Regarding Hazardous Materials.

                    	
                      38

                    
	 	 	
                      11.10.5.

                    	
                      Hazardous
                        Materials on Real Property.

                    	
                      38

                    
	 	 	
                      11.10.6.

                    	
                      Environmental
                        Property Transfer Acts.

                    	
                      38

                    
	 	
                      11.11.

                    	
                      Other
                        Names.

                    	
                      39

                    
	 	
                      11.12.

                    	
                      Prior
                        Transactions.

                    	
                      39

                    
	 	
                      11.13.

                    	
                      Capitalization.

                    	
                      39

                    
	 	
                      11.14.

                    	
                      Solvency.

                    	
                      39

                    
	 	
                      11.15.

                    	
                      Projections.

                    	
                      39

                    
	 	
                      11.16.

                    	
                      Financial
                        Statements.

                    	
                      39

                    
	 	
                      11.17.

                    	
                      No
                        Change in Condition.

                    	
                      39

                    
	 	
                      11.18.

                    	
                      No
                        Defaults.

                    	
                      39

                    
	 	
                      11.19.

                    	
                      Investments.

                    	
                      39

                    
	 	
                      11.20.

                    	
                      Indebtedness.

                    	
                      39

                    
	 	
                      11.21.

                    	
                      Indirect
                        Obligations.

                    	
                      40

                    
	 	
                      11.22.

                    	
                      Encumbrances.

                    	
                      40

                    
	 	
                      11.23.

                    	
                      Capital
                        Leases.

                    	
                      40

                    
	 	
                      11.24.

                    	
                      Other
                        Creditor Indebtedness; Intercreditor Documents; Subordinated
                        Indebtedness.

                    	
                      40

                    
	 	
                      11.25.

                    	
                      Tax
                        Liabilities; Governmental Charges.

                    	
                      40

                    
	 	
                      11.26.

                    	
                      Pension
                        Benefit Plans.

                    	
                      40

                    
	 	
                      11.27.

                    	
                      Welfare
                        Benefit Plans.

                    	
                      40

                    
	 	
                      11.28.

                    	
                      Retiree
                        Benefits.

                    	
                      40

                    
	 	
                      11.29.

                    	
                      Distributions/Redemptions.

                    	
                      41

                    
	 	
                      11.30.

                    	
                      Real
                        Property.

                    	
                      41

                    
	 	
                      11.31.

                    	
                      State
                        of Collateral and other Property.

                    	
                      41

                    
	 	 	
                      11.31.1.

                    	
                      Accounts.

                    	
                      41

                    
	 	 	
                      11.31.2.

                    	
                      Inventory.

                    	
                      42

                    
	 	 	
                      11.31.3.

                    	
                      Equipment.

                    	
                      42

                    
	 	 	
                      11.31.4.

                    	
                      Intellectual
                        Property.

                    	
                      42

                    
	 	 	
                      11.31.5.

                    	
                      Documents,
                        Instruments and Chattel Paper.

                    	
                      42

                    
	 	
                      11.32.

                    	
                      Chief
                        Place of Business; Locations of Collateral.

                    	
                      43

                    
	 	
                      11.33.

                    	
                      Warranties
                        and Representations-Inventory.

                    	
                      43

                    
	 	
                      11.34.

                    	
                      No
                        Negative Pledges.

                    	
                      43

                    
	 	
                      11.35.

                    	
                      Security
                        Documents.

                    	
                      43

                    
	 	 	
                      11.35.1.

                    	
                      Security
                        Agreements.

                    	
                      43

                    
	 	 	
                      11.35.2.

                    	
                      Collateral
                        Assignments.

                    	
                      44

                    
	 	 	 	
                      11.35.2.1.

                    	
                      Control
                        Agreements.

                    	
                      44

                    
	 	 	 	
                      11.35.2.2.

                    	
                      Intellectual
                        Property Assignments.

                    	
                      44

                    
	 	 	 	
                      11.35.2.3.

                    	
                      Stock
                        Pledge Agreement.

                    	
                      44

                    
	 	
                      11.36.

                    	
                      S
                        Corporation.

                    	
                      44

                    
	 	
                      11.37.

                    	
                      Subsidiaries
                        and Affiliates.

                    	
                      44

                    
	 	
                      11.38.

                    	
                      Bank
                        Accounts and Lockboxes.

                    	
                      44

                    
	 	
                      11.39.

                    	
                      Margin
                        Stock.

                    	
                      44

                    
	 	
                      11.40.

                    	
                      Securities
                        Matters.

                    	
                      45

                    
	 	
                      11.41.

                    	
                      Investment
                        Company Act, Etc.

                    	
                      45

                    

            

             

            
              
                
                

              

              
                iv

                
                  

                

              

              
                
                

              

            

             

            
              	 	
                      11.42.

                    	
                      No
                        Material Misstatements or Omissions.

                    	
                      45

                    
	 	
                      11.43.

                    	
                      Filings.

                    	
                      45

                    
	 	
                      11.44.

                    	
                      Broker’s
                        Fees.

                    	
                      45

                    
	 	
                      11.45.

                    	
                      Eligibility
                        of Collateral.

                    	
                      45

                    
	 	
                      11.46.

                    	
                      Loans
                        to Shareholders.

                    	
                      45

                    
	 	
                      11.47.

                    	
                      No
                        Improper Payment or Influence.

                    	
                      45

                    
	 	
                      11.48.

                    	
                      Foreign
                        Enemies and Regulations.

                    	
                      46

                    
	
                      12.

                    	
                      Modification
                        and Survival of Representations.

                    	
                      46

                    
	
                      13.

                    	
                      Affirmative
                        Covenants.

                    	
                      46

                    
	 	
                      13.1.

                    	
                      Use
                        of Proceeds.

                    	
                      46

                    
	 	
                      13.2.

                    	
                      Corporate
                        Existence.

                    	
                      47

                    
	 	
                      13.3.

                    	
                      Maintenance
                        of Property and Leases.

                    	
                      47

                    
	 	
                      13.4.

                    	
                      Inventory.

                    	
                      47

                    
	 	
                      13.5.

                    	
                      Insurance.

                    	
                      47

                    
	 	
                      13.6.

                    	
                      Payment
                        of Taxes and Other Obligations.

                    	
                      48

                    
	 	
                      13.7.

                    	
                      Compliance
                        With Laws.

                    	
                      48

                    
	 	 	
                      13.7.1.

                    	
                      Environmental
                        Laws.

                    	
                      48

                    
	 	 	
                      13.7.2.

                    	
                      Pension
                        Benefit Plans.

                    	
                      48

                    
	 	
                      13.8.

                    	
                      Discovery
                        and Clean-Up of Hazardous Material.

                    	
                      48

                    
	 	 	
                      13.8.1.

                    	
                      In
                        General.

                    	
                      48

                    
	 	
                      13.9.

                    	
                      Termination
                        of Pension Benefit Plan.

                    	
                      49

                    
	 	
                      13.10.

                    	
                      Notice
                        to Administrative Agent and Lenders of Material Events.

                    	
                      49

                    
	 	
                      13.11.

                    	
                      Maintenance
                        of Security Interests of Security Documents.

                    	
                      51

                    
	 	 	
                      13.11.1.

                    	
                      Preservation
                        and Perfection of Security Interests.

                    	
                      51

                    
	 	 	
                      13.11.2.

                    	
                      Collateral
                        Held by Warehouseman, Bailee, etc.

                    	
                      52

                    
	 	 	
                      13.11.3.

                    	
                      Compliance
                        With Terms of Security Documents.

                    	
                      52

                    
	 	
                      13.12.

                    	
                      Accounting
                        System.

                    	
                      52

                    
	 	 	
                      13.12.1.

                    	
                      Account
                        Records.

                    	
                      52

                    
	 	 	
                      13.12.2.

                    	
                      Inventory
                        Records.

                    	
                      53

                    
	 	 	
                      13.12.3.

                    	
                      Tracing
                        of Proceeds.

                    	
                      53

                    
	 	
                      13.13.

                    	
                      Financial
                        Statements.

                    	
                      53

                    
	 	 	
                      13.13.1.

                    	
                      Annual
                        Financial Statements.

                    	
                      53

                    
	 	 	
                      13.13.2.

                    	
                      Monthly
                        Financial Statements.

                    	
                      53

                    
	 	
                      13.14.

                    	
                      Other
                        Financial Information.

                    	
                      54

                    
	 	 	
                      13.14.1.

                    	
                      Borrowing
                        Base Certificate.

                    	
                      54

                    
	 	 	
                      13.14.2.

                    	
                      Sales
                        Report.

                    	
                      54

                    
	 	 	
                      13.14.3.

                    	
                      Cash
                        Journal Report.

                    	
                      54

                    
	 	 	
                      13.14.4.

                    	
                      Schedule
                        of Inventory.

                    	
                      54

                    
	 	 	
                      13.14.5.

                    	
                      Schedule
                        of Accounts, Schedule of Accounts Payable.

                    	
                      54

                    
	 	 	
                      13.14.6.

                    	
                      Report
                        of Indebtedness.

                    	
                      54

                    
	 	 	
                      13.14.7.

                    	
                      Report
                        of Deferred Revenue.

                    	
                      54

                    
	 	 	
                      13.14.8.

                    	
                      Other
                        Reports or Information Concerning Accounts or Inventory.

                    	
                      54

                    
	 	 	
                      13.14.9.

                    	
                      Stockholder
                        and SEC Reports.

                    	
                      55

                    
	 	 	
                      13.14.10.

                    	
                      Pension
                        Benefit Plan Reports.

                    	
                      55

                    
	 	 	
                      13.14.11.

                    	
                      Tax
                        Returns.

                    	
                      55

                    
	 	 	
                      13.14.12.

                    	
                      Locations
                        of Inventory Report.

                    	
                      55

                    
	 	
                      13.15.

                    	
                      Review
                        of Accounts.

                    	
                      55

                    
	 	
                      13.16.

                    	
                      Inventory.

                    	
                      55

                    
	 	
                      13.17.

                    	
                      Annual
                        Projections; Operating Plan.

                    	
                      55

                    
	 	
                      13.18.

                    	
                      Other
                        Information.

                    	
                      55

                    
	 	
                      13.19.

                    	
                      Examinations
                        and Site Visits by Administrative Agent.

                    	
                      55

                    

            

             

            
              
                
                

              

              
                v

                
                  

                

              

              
                
                

              

            

             

            
              	 	
                      13.20.

                    	
                      Verification
                        of Accounts and Notices to Account Debtors.

                    	
                      56

                    
	 	
                      13.21.

                    	
                      Appraisals
                        of Collateral.

                    	
                      56

                    
	 	
                      13.22.

                    	
                      Access
                        to Officers and Auditors.

                    	
                      56

                    
	 	
                      13.23.

                    	
                      Movement
                        of Inventory.

                    	
                      56

                    
	 	
                      13.24.

                    	
                      Titled
                        Assets.

                    	
                      56

                    
	 	
                      13.25.

                    	
                      Claims
                        Act.

                    	
                      57

                    
	 	
                      13.26.

                    	
                      Further
                        Assurances.

                    	
                      57

                    
	
                      14.

                    	
                      Negative
                        Covenants.

                    	
                      57

                    
	 	
                      14.1.

                    	
                      Investments.

                    	
                      57

                    
	 	
                      14.2.

                    	
                      Indebtedness.

                    	
                      58

                    
	 	
                      14.3.

                    	
                      Payments
                        on Other Creditor Indebtedness; Subordinated Indebtedness.

                    	
                      59

                    
	 	
                      14.4.

                    	
                      Prepayments.

                    	
                      59

                    
	 	
                      14.5.

                    	
                      Indirect
                        Obligations.

                    	
                      59

                    
	 	
                      14.6.

                    	
                      Security
                        Interests.

                    	
                      59

                    
	 	
                      14.7.

                    	
                      Acquisitions.

                    	
                      60

                    
	 	
                      14.8.

                    	
                      Leases;
                        Bailments; Consignments; Warehousing.

                    	
                      60

                    
	 	
                      14.9.

                    	
                      Disposal
                        of Property.

                    	
                      61

                    
	 	
                      14.10.

                    	
                      Distributions/Redemptions.

                    	
                      61

                    
	 	
                      14.11.

                    	
                      Change
                        of Control.

                    	
                      61

                    
	 	
                      14.12.

                    	
                      Capital
                        Structure; Capital Securities.

                    	
                      61

                    
	 	
                      14.13.

                    	
                      Change
                        of State of Formation; Change of Name.

                    	
                      61

                    
	 	
                      14.14.

                    	
                      Change
                        of Business.

                    	
                      62

                    
	 	
                      14.15.

                    	
                      Transactions
                        With Affiliates.

                    	
                      62

                    
	 	
                      14.16.

                    	
                      Conflicting
                        Agreements.

                    	
                      62

                    
	 	
                      14.17.

                    	
                      Investment
                        Banking and Finder’s Fees.

                    	
                      62

                    
	 	
                      14.18.

                    	
                      Sale
                        and Leaseback Transactions.

                    	
                      62

                    
	 	
                      14.19.

                    	
                      New
                        Subsidiaries.

                    	
                      62

                    
	 	
                      14.20.

                    	
                      Fiscal
                        Year.

                    	
                      62

                    
	 	
                      14.21.

                    	
                      Leases.

                    	
                      62

                    
	 	
                      14.22.

                    	
                      S
                        Corporation Status.

                    	
                      63

                    
	 	
                      14.23.

                    	
                      Depreciation
                        Methodology.

                    	
                      63

                    
	 	
                      14.24.

                    	
                      Tax
                        Consolidation.

                    	
                      63

                    
	 	
                      14.25.

                    	
                      Transactions
                        Having a Material Adverse Effect on Covered Person.

                    	
                      63

                    
	 	
                      14.26.

                    	
                      Storage.

                    	
                      63

                    
	 	
                      14.27.

                    	
                      Like-Kind
                        Exchange.

                    	
                      63

                    
	
                      15.

                    	
                      Financial
                        Covenants.

                    	
                      63

                    
	 	
                      15.1.

                    	
                      Special
                        Definitions.

                    	
                      63

                    
	 	
                      15.2.

                    	
                      Minimum
                        Liquidation Multiple.

                    	
                      64

                    
	 	
                      15.3.

                    	
                      Minimum
                        EBITDA.

                    	
                      64

                    
	 	
                      15.4.

                    	
                      Maximum
                        Total Funded Indebtedness to EBITDA.

                    	
                      65

                    
	 	
                      15.5.

                    	
                      Excess
                        Cash/Marketable Securities plus Availability.

                    	
                      65

                    
	
                      16.

                    	
                      Default.

                    	
                      65

                    
	 	
                      16.1.

                    	
                      Events
                        of Default.

                    	
                      65

                    
	 	 	
                      16.1.1.

                    	
                      Failure
                        to Pay Principal or Interest.

                    	
                      65

                    
	 	 	
                      16.1.2.

                    	
                      Failure
                        to Pay Certain Other Amounts Owed to Lenders.

                    	
                      66

                    
	 	 	
                      16.1.3.

                    	
                      Failure
                        to Pay Examination and Appraisal Costs.

                    	
                      66

                    
	 	 	
                      16.1.4.

                    	
                      Failure
                        to Pay Amounts Owed to Other Persons.

                    	
                      66

                    
	 	 	
                      16.1.5.

                    	
                      Representations
                        or Warranties.

                    	
                      66

                    
	 	 	
                      16.1.6.

                    	
                      Certain
                        Covenants with Cure Periods.

                    	
                      66

                    
	 	 	
                      16.1.7.

                    	
                      Certain
                        Covenants Without Cure Periods.

                    	
                      66

                    
	 	 	
                      16.1.8.

                    	
                      Other
                        Covenants.

                    	
                      66

                    

            

             

            
              
                
                

              

              
                vi

                
                  

                

              

              
                
                

              

            

             

            
              	 	 	
                      16.1.9.

                    	
                      Acceleration
                        of Other Indebtedness.

                    	
                      66

                    
	 	 	
                      16.1.10.

                    	
                      Default
                        Under Other Agreements.

                    	
                      66

                    
	 	 	
                      16.1.11.

                    	
                      Other
                        Creditor Indebtedness.; Subordinated Indebtedness.

                    	
                      67

                    
	 	 	
                      16.1.12.

                    	
                      Bankruptcy;
                        Insolvency; Etc.

                    	
                      67

                    
	 	 	
                      16.1.13.

                    	
                      Judgments;
                        Attachment; Settlement; Etc.

                    	
                      67

                    
	 	 	
                      16.1.14.

                    	
                      Pension
                        Benefit Plan Termination, Etc.

                    	
                      68

                    
	 	 	
                      16.1.15.

                    	
                      Liquidation
                        or Dissolution.

                    	
                      68

                    
	 	 	
                      16.1.16.

                    	
                      Seizure
                        of Assets.

                    	
                      68

                    
	 	 	
                      16.1.17.

                    	
                      Racketeering
                        Proceeding.

                    	
                      68

                    
	 	 	
                      16.1.18.

                    	
                      Loan
                        Documents; Security Interests.

                    	
                      68

                    
	 	 	
                      16.1.19.

                    	
                      Loss
                        to Collateral.

                    	
                      69

                    
	 	 	
                      16.1.20.

                    	
                      Guaranty;
                        Guarantor.

                    	
                      69

                    
	 	 	
                      16.1.21.

                    	
                      Change
                        of Control.

                    	
                      69

                    
	 	 	
                      16.1.22.

                    	
                      Material
                        Adverse Change.

                    	
                      69

                    
	 	 	
                      16.1.23.

                    	
                      Negative
                        Pledge.

                    	
                      69

                    
	 	
                      16.2.

                    	
                      Cross-Default.

                    	
                      69

                    
	 	
                      16.3.

                    	
                      Rights
                        and Remedies.

                    	
                      69

                    
	 	 	
                      16.3.1.

                    	
                      Termination
                        of Commitments.

                    	
                      69

                    
	 	 	
                      16.3.2.

                    	
                      Acceleration;
                        Funding.

                    	
                      69

                    
	 	 	
                      16.3.3.

                    	
                      Right
                        of Set-off.

                    	
                      70

                    
	 	 	
                      16.3.4.

                    	
                      Notice
                        to Account Debtors.

                    	
                      70

                    
	 	 	
                      16.3.5.

                    	
                      Entry
                        Upon Premises and Access to Information.

                    	
                      70

                    
	 	 	
                      16.3.6.

                    	
                      Completion
                        of Uncompleted Inventory Items.

                    	
                      71

                    
	 	 	
                      16.3.7.

                    	
                      Borrower’s
                        Obligations.

                    	
                      71

                    
	 	 	
                      16.3.8.

                    	
                      Secured
                        Party Rights.

                    	
                      71

                    
	 	 	
                      16.3.9.

                    	
                      Joint
                        and Several.

                    	
                      72

                    
	 	 	
                      16.3.10.

                    	
                      Miscellaneous.

                    	
                      73

                    
	 	
                      16.4.

                    	
                      Application
                        of Funds.

                    	
                      73

                    
	 	
                      16.5.

                    	
                      Limitation
                        of Liability; Waiver.

                    	
                      73

                    
	 	
                      16.6.

                    	
                      Notice.

                    	
                      74

                    
	
                      17.

                    	
                      Administrative
                        Agent and Lenders.

                    	
                      74

                    
	 	
                      17.1.

                    	
                      Appointment,
                        Powers, and Immunities.

                    	
                      74

                    
	 	
                      17.2.

                    	
                      Reliance
                        by Administrative Agent.

                    	
                      74

                    
	 	
                      17.3.

                    	
                      Employment
                        of Administrative Agents and Counsel.

                    	
                      75

                    
	 	
                      17.4.

                    	
                      Defaults.

                    	
                      75

                    
	 	
                      17.5.

                    	
                      Rights
                        as Lender.

                    	
                      75

                    
	 	
                      17.6.

                    	
                      Indemnification.

                    	
                      76

                    
	 	
                      17.7.

                    	
                      Notification
                        of Lenders.

                    	
                      76

                    
	 	
                      17.8.

                    	
                      Non-Reliance
                        on Agent and Other Lenders.

                    	
                      77

                    
	 	
                      17.9.

                    	
                      Resignation.

                    	
                      77

                    
	 	
                      17.10.

                    	
                      Collections
                        and Distributions to Lenders by Administrative Agent.

                    	
                      77

                    
	 	
                      17.11.

                    	
                      Provision
                        Regarding Payments.

                    	
                      78

                    
	
                      18.

                    	
                      General.

                    	
                      78

                    
	 	
                      18.1.

                    	
                      Lenders’
                        Right to Cure.

                    	
                      78

                    
	 	
                      18.2.

                    	
                      Rights
                        Not Exclusive.

                    	
                      78

                    
	 	
                      18.3.

                    	
                      Survival
                        of Agreements.

                    	
                      78

                    
	 	
                      18.4.

                    	
                      Assignments.

                    	
                      78

                    
	 	 	
                      18.4.1.

                    	
                      Permitted
                        Assignments.

                    	
                      78

                    
	 	 	
                      18.4.2.

                    	
                      Register;
                        Consequences and Effect of Assignments.

                    	
                      79

                    
	 	 	
                      18.4.3.

                    	
                      Administrative
                        Agent to Retain Copies of Assignments and Acceptances.

                    	
                      80

                    

            

             

            
              
                
                

              

              
                vii

                
                  

                

              

              
                
                

              

            

             

            
              	 	 	
                      18.4.4.

                    	
                      Notice
                        to Borrower of Assignment.

                    	
                      80

                    
	 	 	
                      18.4.5.

                    	
                      Assignment
                        to Federal Reserve Bank.

                    	
                      81

                    
	 	 	
                      18.4.6.

                    	
                      Information.

                    	
                      81

                    
	 	 	
                      18.4.7.

                    	
                      Sale
                        of Participations.

                    	
                      81

                    
	 	
                      18.5.

                    	
                      Payment
                        of Expenses.

                    	
                      81

                    
	 	
                      18.6.

                    	
                      General
                        Indemnity.

                    	
                      82

                    
	 	
                      18.7.

                    	
                      Letters
                        of Credit.

                    	
                      84

                    
	 	
                      18.8.

                    	
                      Changes
                        in Accounting Principles.

                    	
                      84

                    
	 	
                      18.9.

                    	
                      Loan
                        Records.

                    	
                      84

                    
	 	
                      18.10.

                    	
                      Other
                        Security and Guaranties.

                    	
                      85

                    
	 	
                      18.11.

                    	
                      Loan
                        Obligations Payable in Dollars.

                    	
                      85

                    
	 	
                      18.12.

                    	
                      Reimbursement
                        Obligations of Borrower.

                    	
                      85

                    
	 	
                      18.13.

                    	
                      Disclosure.

                    	
                      86

                    
	 	
                      18.14.

                    	
                      Tax
                        Treatment Waiver.

                    	
                      87

                    
	 	
                      18.15.

                    	
                      Termination.

                    	
                      87

                    
	 	 	
                      18.15.1.

                    	
                      Termination
                        Fee.

                    	
                      87

                    
	 	 	
                      18.15.2.

                    	
                      Liquidated
                        Damages.

                    	
                      88

                    
	 	 	
                      18.15.3.

                    	
                      Irrevocable;
                        Termination of Entire Agreement.

                    	
                      88

                    
	 	 	
                      18.15.4.

                    	
                      Effect
                        on Obligations.

                    	
                      88

                    
	
                      19.

                    	
                      Binding
                        Arbitration.

                    	
                      88

                    
	 	
                      19.1.

                    	
                      Arbitrable
                        Claims.

                    	
                      88

                    
	 	
                      19.2.

                    	
                      Administrative
                        Body.

                    	
                      88

                    
	 	
                      19.3.

                    	
                      Hearings.

                    	
                      89

                    
	 	
                      19.4.

                    	
                      Discovery.

                    	
                      89

                    
	 	
                      19.5.

                    	
                      Exemplary
                        or Punitive Damages.

                    	
                      89

                    
	 	
                      19.6.

                    	
                      Confidentiality
                        of Awards.

                    	
                      89

                    
	 	
                      19.7.

                    	
                      Prejudgment
                        and Provisional Remedies.

                    	
                      89

                    
	 	
                      19.8.

                    	
                      Attorneys’
                        Fees.

                    	
                      89

                    
	 	
                      19.9.

                    	
                      Limitations.

                    	
                      90

                    
	 	
                      19.10.

                    	
                      Survival
                        After Termination.

                    	
                      90

                    
	 	
                      19.11.

                    	
                      Invalidity/Unenforceability
                        of Binding Arbitration; Jury Trial Waiver; Service of Process;
                        Forum.

                    	
                      90

                    
	 	 	
                      19.11.1.

                    	
                      Jury
                        Trial Waiver.

                    	
                      90

                    
	 	 	
                      19.11.2.

                    	
                      Choice
                        of Forum.

                    	
                      91

                    
	 	 	
                      19.11.3.

                    	
                      Service
                        of Process.

                    	
                      91

                    
	
                      20.

                    	
                      Miscellaneous.

                    	
                      91

                    
	 	
                      20.1.

                    	
                      Notices.

                    	
                      91

                    
	 	
                      20.2.

                    	
                      Amendments
                        and Modifications; Waivers and Consents; All Lenders.

                    	
                      91

                    
	 	
                      20.3.

                    	
                      Course
                        of Dealing.

                    	
                      93

                    
	 	
                      20.4.

                    	
                      Rights
                        Cumulative.

                    	
                      93

                    
	 	
                      20.5.

                    	
                      Successors
                        and Assigns.

                    	
                      93

                    
	 	
                      20.6.

                    	
                      Severability.

                    	
                      93

                    
	 	
                      20.7.

                    	
                      Counterparts.

                    	
                      93

                    
	 	
                      20.8.

                    	
                      Governing
                        Law; No Third Party Rights.

                    	
                      93

                    
	 	
                      20.9.

                    	
                      Counterpart
                        Facsimile Execution.

                    	
                      93

                    
	 	
                      20.10.

                    	
                      No
                        Other Agreements.

                    	
                      94

                    
	 	
                      20.11.

                    	
                      Negotiated
                        Transaction.

                    	
                      94

                    
	 	
                      20.12.

                    	
                      Waiver
                        of Punitive and Exemplary Damages.

                    	
                      94

                    
	 	
                      20.13.

                    	
                      Incorporation
                        By Reference.

                    	
                      94

                    
	 	
                      20.14.

                    	
                      Statutory
                        Notice-Insurance.

                    	
                      94

                    
	 	
                      20.15.

                    	
                      Statutory
                        Notice--Oral Commitments.

                    	
                      95

                    

            

          

        

      

    

     

    
      
        
        

      

      
        viii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]