Document:

Unassociated Document

    EXHIBIT
      10.27 

     
      

    Dated:
      September 26, 2005 

     
      

    NEITHER
      THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE
      HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES
      ACT ”),
      AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS. 

     
      

    $42,250.00
      

     
      

    ARIEL
      WAY, INC. 

     
      

    Secured
      Convertible Debenture 

     
      

     
      

    Due
      September 25, 2006 

     
      

    This
      Secured Convertible Debenture (the “ Debenture
      ”)
      is
      issued by Ariel Way, Inc,  
      a
      Florida
      corporation (the “ Obligor
      ”),
      to
      Mr. Arne Dunhem (the “ Holder
      ”),
      pursuant to that certain Securities Purchase Agreement (the “ Securities
      Purchase Agreement ”)
      of
      even date herewith. 

     
      

    FOR
      VALUE RECEIVED ,
      the
      Obligor hereby promises to pay to the Holder or its successors and assigns
      the
      principal sum of $42,250.00, together with accrued but unpaid interest on the
      following terms: 

     
      

    Payments
      .
      Interest on the outstanding principal balance hereof shall be due and payable
      monthly, in arrears, commencing on September 25, 2006 and shall continue on
      the
      first day of each calendar month thereafter that any amounts under this
      Debenture are due and payable (each, an “ Interest
      Payment Date ”).
      Principal shall be due and payable in 6 equal installments of $7,041.74 each.
      The installments of principal shall be due and payable commencing on October
      1,
      2006 and subsequent installments shall be due and payable on the first day
      of
      each calendar month thereafter (“ Principal
      Payment Date ”)
      until
      the outstanding principal balance is paid in full (the “ Maturity
      Date ”).
      All
      payments in respect of the indebtedness evidenced hereby shall be made in
      collected funds, and shall be applied to principal, accrued interest and charges
      and expenses owing under or in connection with this Debenture in such order
      as
      the Holder elects, except that payments shall be applied to accrued interest
      before principal. Notwithstanding the foregoing, this Debenture shall become
      due
      and immediately payable, including all accrued but unpaid interest, upon the
      closing of a Funding Event (as defined in Section
      4 hereof)
      or pursuant to an Event of Default (as defined in Section
      2 hereof).
      

     
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Interest
      .
      Interest shall accrue on the outstanding principal balance hereof at an annual
      rate equal to 5%. Interest shall be calculated on the basis of a 360-day year
      and the actual number of days elapsed, to the extent permitted by applicable
      law. Interest hereunder will be paid to the Holder or its assignee (as defined
      in Section
      4 )
      in
      whose name this Debenture is registered on the records of the Obligor regarding
      registration and transfers of Debentures (the “ Debenture
      Register ”).
      

     
      

     
      

    Right
      of Redemption .
      The
      Company at its option shall have the right to redeem, with fifteen (15) days
      advance written notice (the “ Redemption
      Notice ”),
      a
      portion or all outstanding convertible debenture. The redemption price shall
      be
      one hundred ten percent (110%) of the amount redeemed plus accrued
      interest. 

     
      

     
      

     
      

    This
      Debenture is subject to the following additional provisions: 

     
      

    Section
      1 .
       
      This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be made for such registration of transfer
      or
      exchange. 

     
      

    Section
      2 .
       
      Events
      of Default .
      

     
      

    (a)
       
      An
“
      Event
      of Default ”,
      wherever used herein, means any one of the following events (whatever the reason
      and whether it shall be voluntary or involuntary or effected by operation of
      law
      or pursuant to any judgment, decree or order of any court, or any order, rule
      or
      regulation of any administrative or governmental body): 

     
      

    (i)
       
      Any
      default in the payment of the principal of, interest on or other charges in
      respect of this Debenture, free of any claim of subordination, as and when
      the
      same shall become due and payable (whether on an installment, a Principal
      Payment Date, an Interest Payment Date, a Conversion Date or the Maturity Date
      or by acceleration or otherwise); 

     
      

    (ii)
       
      The
      Obligor shall fail to observe or perform any other covenant, agreement or
      warranty contained in, or otherwise commit any breach or default of any
      provision of this Debenture (except as may be covered by Section
      2(a)(i) hereof
      or
      any Transaction Document (as defined in Section
      4 )
      which
      is not cured with in the time prescribed; 

     
      

    (iii)
       
      The
      Obligor or any subsidiary of the Obligor shall commence, or there shall be
      commenced against the Obligor or any subsidiary of the Obligor under any
      applicable bankruptcy or insolvency laws as now or hereafter in effect or any
      successor thereto, or the Obligor or any subsidiary of the Obligor commences
      any
      other proceeding under any reorganization, arrangement, adjustment of debt,
      relief of debtors, dissolution, insolvency or liquidation or similar law of
      any
      jurisdiction whether now or hereafter in effect relating to the Obligor or
      any
      subsidiary of the Obligor or there is commenced against the Obligor or any
      subsidiary of the Obligor any such bankruptcy, insolvency or other proceeding
      which remains undismissed for a period of 61 days; or the Obligor or any
      subsidiary of the Obligor is adjudicated insolvent or bankrupt; or any order
      of
      relief or other order approving any such case or proceeding is entered; or
      the
      Obligor or any subsidiary of the Obligor suffers any appointment of any
      custodian, private or court appointed receiver or the like for it or any
      substantial part of its property which continues undischarged or unstayed for
      a
      period of sixty one (61) days; or the Obligor or any subsidiary of the Obligor
      makes a general assignment for the benefit of creditors; or the Obligor or
      any
      subsidiary of the Obligor shall fail to pay, or shall state that it is unable
      to
      pay, or shall be unable to pay, its debts generally as they become due; or
      the
      Obligor or any subsidiary of the Obligor shall call a meeting of its creditors
      with a view to arranging a composition, adjustment or restructuring of its
      debts; or the Obligor or any subsidiary of the Obligor shall by any act or
      failure to act expressly indicate its consent to, approval of or acquiescence
      in
      any of the foregoing; or any corporate or other action is taken by the Obligor
      or any subsidiary of the Obligor for the purpose of effecting any of the
      foregoing; 

     
      

     

    
      
         

      

      
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    (iv)
       
      The
      Obligor or any subsidiary of the Obligor shall default in any of its obligations
      under any other Debenture or any mortgage, credit agreement or other facility,
      indenture agreement, factoring agreement or other instrument under which there
      may be issued, or by which there may be secured or evidenced any indebtedness
      for borrowed money or money due under any long term leasing or factoring
      arrangement of the Obligor or any subsidiary of the Obligor in an amount
      exceeding $100,000, whether such indebtedness now exists or shall hereafter
      be
      created and such default shall result in such indebtedness becoming or being
      declared due and payable prior to the date on which it would otherwise become
      due and payable; 

     
      

    (v)
       
      The
      Common Stock shall cease to be quoted for trading or listed for trading on
      the
      Nasdaq OTC Bulletin Board (“ OTC
      ”),
      Nasdaq SmallCap Market, New York Stock Exchange, American Stock Exchange or
      the
      Nasdaq National Market (each, a “ Subsequent
      Market ”)
      and
      shall not again be quoted or listed for trading thereon within five (5) Trading
      Days of such delisting; 

     
      

    (vi)
       
      The
      Obligor or any subsidiary of the Obligor shall be a party to any Change of
      Control Transaction (as defined in Section
      4 );
      

     
      

    (vii)
       
      The
      Obligor shall fail to file the Underlying Shares Registration Statement (as
      defined in Section
      4 )
      with
      the Commission (as defined in Section
      4 ),
      or the
      Underlying Shares Registration Statement shall not have been declared effective
      by the Commission, in each case within the time periods set forth in the
      Investor Registration Rights Agreement of even date herewith between the Obligor
      and the Holder; 

     
      

    (viii)
       
      If
      the
      effectiveness of the Underlying Shares Registration Statement lapses for any
      reason or the Holder shall not be permitted to resell the shares of Common
      Stock
      underlying this Debenture under the Underlying Shares Registration Statement,
      in
      either case, for more than five (5) consecutive Trading Days or an aggregate
      of
      eight Trading Days (which need not be consecutive Trading Days); 

     
      

    (ix)
       
      The
      Obligor shall fail for any reason to deliver Common Stock certificates to a
      Holder prior to the fifth (5 th
      )
      Trading
      Day after a Conversion Date or the Obligor shall provide notice to the Holder,
      including by way of public announcement, at any time, of its intention not
      to
      comply with requests for conversions of this Debenture in accordance with the
      terms hereof; 

     
      

     

    
      
         

      

      
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    (x)
        
      The
      Obligor shall fail for any reason to deliver the payment in cash pursuant to
      a
      Buy-In (as defined herein) within three (3) days after notice is claimed
      delivered hereunder; 

     
      

    (b)
       
      During
      the time that any portion of this Debenture is outstanding, if any Event of
      Default has occurred, the full principal amount of this Debenture, together
      with
      interest and other amounts owing in respect thereof, to the date of acceleration
      shall become at the Holder's election, immediately due and payable in cash,
      provided
      however ,
      the
      Holder may request (but shall have no obligation to request) payment of such
      amounts in Common Stock of the Obligor. If an Event of Default occurs and
      remains uncured, the Conversion Price shall be reduced to Fifteen Cents ($0.15).
      In addition to any other remedies, the Holder shall have the right (but not
      the
      obligation) to convert this Debenture at any time after (x) an Event of Default
      or (y) the Maturity Date at the Conversion Price then in-effect. The Holder
      need
      not provide and the Obligor hereby waives any presentment, demand, protest
      or
      other notice of any kind, and the Holder may immediately and without expiration
      of any grace period enforce any and all of its rights and remedies hereunder
      and
      all other remedies available to it under applicable law. Such declaration may
      be
      rescinded and annulled by Holder at any time prior to payment hereunder. No
      such
      rescission or annulment shall affect any subsequent Event of Default or impair
      any right consequent thereon. Upon an Event of Default, notwithstanding any
      other provision of this Debenture or any Transaction Document, the Holder shall
      have no obligation to comply with or adhere to any limitations, if any, on
      the
      conversion of this Debenture or the sale of the Underlying Shares. 

     
      

    Section
      3 .
       
      Conversion
      

     
      

    (a)
       
      (i)
       
      Conversion
      at Option of Holder .
      

     
      

    (A)
       
      This
      Debenture shall be convertible into shares of Common Stock at the option of
      the
      Holder, in whole or in part at any time and from time to time, after the
      Original Issue Date (as defined in Section 4) (subject to the limitations on
      conversion set forth in Section
      3(a)(ii) hereof).
      The number of shares of Common Stock issuable upon a conversion hereunder equals
      the sum of (i) the quotient obtained by dividing (x) the outstanding amount
      of
      this Debenture to be converted by (y) the Conversion Price (as defined in
Section
      3(c)(i) ).
      The
      Obligor shall deliver Common Stock certificates to the Holder prior to the
      Fifth
      (5 th
      )
      Trading
      Day after a Conversion Date. 

     
      

    (B)
       
      Notwithstanding
      anything to the contrary contained herein, if on any Conversion Date: (1) the
      number of shares of Common Stock at the time authorized, unissued and unreserved
      for all purposes, or held as treasury stock, is insufficient to pay principal
      and interest hereunder in shares of Common Stock; (2) the Common Stock is not
      listed or quoted for trading on the OTC or on a Subsequent Market; (3) the
      Obligor has failed to timely satisfy its conversion; or (4) the issuance of
      such
      shares of Common Stock would result in a violation of Section
      3(a)(ii) ,
      then,
      at the option of the Holder, the Obligor, in lieu of delivering shares of Common
      Stock pursuant to Section
      3(a)(i)(A) ,
      shall
      deliver, within three (3) Trading Days of each applicable Conversion Date,
      an
      amount in cash equal to the product of the outstanding principal amount to
      be
      converted plus any interest due therein divided by the Conversion Price and
      multiplied by the highest closing price of the stock from date of the conversion
      notice till the date that such cash payment is made. 

     
      

     

    
      
         

      

      
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    Further,
      if the Obligor shall not have delivered any cash due in respect of conversion
      of
      this Debenture or as payment of interest thereon by the fifth (5 th
      )
      Trading
      Day after the Conversion Date, the Holder may, by notice to the Obligor, require
      the Obligor to issue shares of Common Stock pursuant to Section
      3(c) ,
      except
      that for such purpose the Conversion Price applicable thereto shall be the
      lesser of the Conversion Price on the Conversion Date and the Conversion Price
      on the date of such Holder demand. Any such shares will be subject to the
      provisions of this Section. 

     
      

    (C)
       
      The
      Holder shall effect conversions by delivering to the Obligor a completed notice
      in the form attached hereto as Exhibit A (a “ Conversion
      Notice ”).
      The
      date on which a Conversion Notice is delivered is the “ Conversion
      Date .”
Unless
      the Holder is converting the entire principal amount outstanding under this
      Debenture, the Holder is not required to physically surrender this Debenture
      to
      the Obligor in order to effect conversions. Conversions hereunder shall have
      the
      effect of lowering the outstanding principal amount of this Debenture plus
      all
      accrued and unpaid interest thereon in an amount equal to the applicable
      conversion. The Holder and the Obligor shall maintain records showing the
      principal amount converted and the date of such conversions. In the event of
      any
      dispute or discrepancy, the records of the Holder shall be controlling and
      determinative in the absence of manifest error. 

     
      

    (ii)
       
      Certain
      Conversion Restrictions .
      

     
      

    (A)
       
      A
      Holder
      may not convert this Debenture or receive shares of Common Stock as payment
      of
      interest hereunder to the extent such conversion or receipt of such interest
      payment would result in the Holder, together with any affiliate thereof,
      beneficially owning (as determined in accordance with Section 13(d) of the
      Exchange Act and the rules promulgated thereunder) in excess of 4.9% of the
      then
      issued and outstanding shares of Common Stock, including shares issuable upon
      conversion of, and payment of interest on, this Debenture held by such Holder
      after application of this Section. Since the Holder will not be obligated to
      report to the Obligor the number of shares of Common Stock it may hold at the
      time of a conversion hereunder, unless the conversion at issue would result
      in
      the issuance of shares of Common Stock in excess of 4.9% of the then outstanding
      shares of Common Stock without regard to any other shares which may be
      beneficially owned by the Holder or an affiliate thereof, the Holder shall
      have
      the authority and obligation to determine whether the restriction contained
      in
      this Section will limit any particular conversion hereunder and to the extent
      that the Holder determines that the limitation contained in this Section
      applies, the determination of which portion of the principal amount of this
      Debenture is convertible shall be the responsibility and obligation of the
      Holder. If the Holder has delivered a Conversion Notice for a principal amount
      of this Debenture that, without regard to any other shares that the Holder
      or
      its affiliates may beneficially own, would result in the issuance in excess
      of
      the permitted amount hereunder, the Obligor shall notify the Holder of this
      fact
      and shall honor the conversion for the maximum principal amount permitted to
      be
      converted on such Conversion Date in accordance with the periods described
      in
Section
      3(a)(i)(A) and,
      at
      the option of the Holder, either retain any principal amount tendered for
      conversion in excess of the permitted amount hereunder for future conversions
      or
      return such excess principal amount to the Holder. The provisions of this
      Section may be waived by a Holder (but only as to itself and not to any other
      Holder) upon not less than 65 days prior notice to the Obligor. Other Holders
      shall be unaffected by any such waiver. 

     
      

     

    
      
         

      

      
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    (b)          
      (i)  
      Nothing
      herein shall limit a Holder's right to pursue actual damages or declare an
      Event
      of Default pursuant to Section
      2 herein
      for the Obligor 's failure to deliver certificates representing shares of Common
      Stock upon conversion within the period specified herein and such Holder shall
      have the right to pursue all remedies available to it at law or in equity
      including, without limitation, a decree of specific performance and/or
      injunctive relief, in each case without the need to post a bond or provide
      other
      security. The exercise of any such rights shall not prohibit the Holder from
      seeking to enforce damages pursuant to any other Section hereof or under
      applicable law. 

     
      

    (ii)
       
      In
      addition to any other rights available to the Holder, if the Obligor fails
      to
      deliver to the Holder such certificate or certificates pursuant to Section
      3(a)(i)(A) by
      the
      fifth Trading Day after the Conversion Date, and if after such fifth (5
th
      )
      Trading
      Day the Holder purchases (in an open market transaction or otherwise) Common
      Stock to deliver in satisfaction of a sale by such Holder of the Underlying
      Shares which the Holder anticipated receiving upon such conversion (a “
Buy-In
      ”),
      then
      the Obligor shall (A) pay in cash to the Holder (in addition to any remedies
      available to or elected by the Holder) the amount by which (x) the Holder's
      total purchase price (including brokerage commissions, if any) for the Common
      Stock so purchased exceeds (y) the product of (1) the aggregate number of shares
      of Common Stock that such Holder anticipated receiving from the conversion
      at
      issue multiplied by (2) the market price of the Common Stock at the time of
      the
      sale giving rise to such purchase obligation and (B) at the option of the
      Holder, either reissue a Debenture in the principal amount equal to the
      principal amount of the attempted conversion or deliver to the Holder the number
      of shares of Common Stock that would have been issued had the Obligor timely
      complied with its delivery requirements under Section
      3(a)(i)(A) .
      For
      example, if the Holder purchases Common Stock having a total purchase price
      of
      $11,000 to cover a Buy-In with respect to an attempted conversion of Debentures
      with respect to which the market price of the Underlying Shares on the date
      of
      conversion was a total of $10,000 under clause (A) of the immediately preceding
      sentence, the Obligor shall be required to pay the Holder $1,000. The Holder
      shall provide the Obligor written notice indicating the amounts payable to
      the
      Holder in respect of the Buy-In. 

     
      

    (c)         
       
      (i)
       
      The
      conversion price (the “ Conversion
      Price ”)
      in
      effect on any Conversion Date shall be equal to Thirty Cents ($0.30), which
      may
      be adjusted pursuant to the other terms of this Debenture. 

     
      

    (ii)
       
      If
      the
      Obligor, at any time while this Debenture is outstanding, shall (a) pay a
      stock dividend or otherwise make a distribution or distributions on shares
      of
      its Common Stock or any other equity or equity equivalent securities payable
      in
      shares of Common Stock, (b) subdivide outstanding shares of Common Stock into
      a
      larger number of shares, (c) combine (including by way of reverse stock split)
      outstanding shares of Common Stock into a smaller number of shares, or (d)
      issue
      by reclassification of shares of the Common Stock any shares of capital stock
      of
      the Obligor, then the Conversion Price shall be multiplied by a fraction of
      which the numerator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding after
      such
      event. Any adjustment made pursuant to this Section shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution and shall become effective immediately
      after the effective date in the case of a subdivision, combination or
      re-classification. 

     
      

     

    
      
         

      

      
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    (iii)
       
      If
      the
      Obligor, at any time while this Debenture is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to the Holder)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the Closing Bid Price at the record date mentioned below,
      then the Conversion Price shall be multiplied by a fraction, of which the
      denominator shall be the number of shares of the Common Stock (excluding
      treasury shares, if any) outstanding on the date of issuance of such rights
      or
      warrants (plus the number of additional shares of Common Stock offered for
      subscription or purchase), and of which the numerator shall be the number of
      shares of the Common Stock (excluding treasury shares, if any) outstanding
      on
      the date of issuance of such rights or warrants, plus the number of shares
      which
      the aggregate offering price of the total number of shares so offered would
      purchase at such Closing Bid Price. Such adjustment shall be made whenever
      such
      rights or warrants are issued, and shall become effective immediately after
      the
      record date for the determination of stockholders entitled to receive such
      rights, options or warrants. However, upon the expiration of any such right,
      option or warrant to purchase shares of the Common Stock the issuance of which
      resulted in an adjustment in the Conversion Price pursuant to this Section,
      if
      any such right, option or warrant shall expire and shall not have been
      exercised, the Conversion Price shall immediately upon such expiration be
      recomputed and effective immediately upon such expiration be increased to the
      price which it would have been (but reflecting any other adjustments in the
      Conversion Price made pursuant to the provisions of this Section after the
      issuance of such rights or warrants) had the adjustment of the Conversion Price
      made upon the issuance of such rights, options or warrants been made on the
      basis of offering for subscription or purchase only that number of shares of
      the
      Common Stock actually purchased upon the exercise of such rights, options or
      warrants actually exercised. 

     
      

    (iv)
       
      If
      the
      Obligor or any subsidiary thereof, as applicable, with respect to Common Stock
      Equivalents (as defined below), at any time while this Debenture is outstanding,
      shall issue shares of Common Stock or rights, warrants, options or other
      securities or debt that are convertible into or exchangeable for shares of
      Common Stock (“ Common
      Stock Equivalents ”)
      entitling any Person to acquire shares of Common Stock, at a price per share
      less than the Conversion Price (if the holder of the Common Stock or Common
      Stock Equivalent so issued shall at any time, whether by operation of purchase
      price adjustments, reset provisions, floating conversion, exercise or exchange
      prices or otherwise, or due to warrants, options or rights per share which
      is
      issued in connection with such issuance, be entitled to receive shares of Common
      Stock at a price per share which is less than the Conversion Price, such
      issuance shall be deemed to have occurred for less than the Conversion Price),
      then, at the sole option of the Holder, the Conversion Price shall be adjusted
      to mirror the conversion, exchange or purchase price for such Common Stock
      or
      Common Stock Equivalents (including any reset provisions thereof) at issue.
      Such
      adjustment shall be made whenever such Common Stock or Common Stock Equivalents
      are issued. The Obligor shall notify the Holder in writing, no later than one
      (1) business day following the issuance of any Common Stock or Common Stock
      Equivalent subject to this Section, indicating therein the applicable issuance
      price, or of applicable reset price, exchange price, conversion price and other
      pricing terms. No adjustment under this Section shall be made as a result of
      issuances and exercises of options to purchase shares of Common Stock issued
      for
      compensatory purposes pursuant to any of the Obligor's stock option or stock
      purchase plans. 

     
      

     

    
      
         

      

      
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    (v)
       
      If
      the
      Obligor, at any time while this Debenture is outstanding, shall distribute
      to
      all holders of Common Stock (and not to the Holder) evidences of its
      indebtedness or assets or rights or warrants to subscribe for or purchase any
      security, then in each such case the Conversion Price at which this Debenture
      shall thereafter be convertible shall be determined by multiplying the
      Conversion Price in effect immediately prior to the record date fixed for
      determination of stockholders entitled to receive such distribution by a
      fraction of which the denominator shall be the Closing Bid Price determined
      as
      of the record date mentioned above, and of which the numerator shall be such
      Closing Bid Price on such record date less the then fair market value at such
      record date of the portion of such assets or evidence of indebtedness so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above. 

     
      

    (vi)
       
      In
      case
      of any reclassification of the Common Stock or any compulsory share exchange
      pursuant to which the Common Stock is converted into other securities, cash
      or
      property, the Holder shall have the right thereafter to, at its option, (A)
      convert the then outstanding principal amount, together with all accrued but
      unpaid interest and any other amounts then owing hereunder in respect of this
      Debenture into the shares of stock and other securities, cash and property
      receivable upon or deemed to be held by holders of the Common Stock following
      such reclassification or share exchange, and the Holder of this Debenture shall
      be entitled upon such event to receive such amount of securities, cash or
      property as the shares of the Common Stock of the Obligor into which the then
      outstanding principal amount, together with all accrued but unpaid interest
      and
      any other amounts then owing hereunder in respect of this Debenture could have
      been converted immediately prior to such reclassification or share exchange
      would have been entitled, or (B) require the Obligor to prepay the outstanding
      principal amount of this Debenture, plus all interest and other amounts due
      and
      payable thereon. The entire prepayment price shall be paid in cash. This
      provision shall similarly apply to successive reclassifications or share
      exchanges. 

     
      

    (vii)
       
      The
      Obligor shall maintain a share reserve of not less than 150% of the shares
      of
      Common Stock issuable upon conversion of this Debenture; and within three (3)
      Business Days following the receipt by the Obligor of a Holder's notice that
      such minimum number of Underlying Shares is not so reserved, the Obligor shall
      promptly reserve a sufficient number of shares of Common Stock to comply with
      such requirement. 

     
      

    (viii)
       
      All
      calculations under this Section
      3 shall
      be
      rounded up to the nearest $0.001 of a share. 

     
      

    (ix)
       
      Whenever
      the Conversion is adjusted pursuant to Section
      3 hereof,
      the Obligor shall promptly mail to the Holder a notice setting forth the
      Conversion Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. 

     
      

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (x)
       
      If
      (A)
      the Obligor shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Obligor shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Obligor shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights; (D) the
      approval of any stockholders of the Obligor shall be required in connection
      with
      any reclassification of the Common Stock, any consolidation or merger to which
      the Obligor is a party, any sale or transfer of all or substantially all of
      the
      assets of the Obligor, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; or (E) the Obligor shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Obligor; then, in each case, the Obligor shall cause to
      be
      filed at each office or agency maintained for the purpose of conversion of
      this
      Debenture, and shall cause to be mailed to the Holder at its last address as
      it
      shall appear upon the stock books of the Obligor, at least twenty (20) calendar
      days prior to the applicable record or effective date hereinafter specified,
      a
      notice stating (x) the date on which a record is to be taken for the purpose
      of
      such dividend, distribution, redemption, rights or warrants, or if a record
      is
      not to be taken, the date as of which the holders of the Common Stock of record
      to be entitled to such dividend, distributions, redemption, rights or warrants
      are to be determined or (y) the date on which such reclassification,
      consolidation, merger, sale, transfer or share exchange is expected to become
      effective or close, and the date as of which it is expected that holders of
      the
      Common Stock of record shall be entitled to exchange their shares of the Common
      Stock for securities, cash or other property deliverable upon such
      reclassification, consolidation, merger, sale, transfer or share exchange,
      provided, that the failure to mail such notice or any defect therein or in
      the
      mailing thereof shall not affect the validity of the corporate action required
      to be specified in such notice. The Holder is entitled to convert this Debenture
      during the 20-day calendar period commencing the date of such notice to the
      effective date of the event triggering such notice. 

     
      

    (xi)
       
      In
      case
      of any (1) merger or consolidation of the Obligor or any subsidiary of the
      Obligor with or into another Person, or (2) sale by the Obligor or any
      subsidiary of the Obligor of more than one-half of the assets of the Obligor
      in
      one or a series of related transactions, a Holder shall have the right to (A)
      exercise any rights under Section
      2(b) ,
      (B)
      convert the aggregate amount of this Debenture then outstanding into the shares
      of stock and other securities, cash and property receivable upon or deemed
      to be
      held by holders of Common Stock following such merger, consolidation or sale,
      and such Holder shall be entitled upon such event or series of related events
      to
      receive such amount of securities, cash and property as the shares of Common
      Stock into which such aggregate principal amount of this Debenture could have
      been converted immediately prior to such merger, consolidation or sales would
      have been entitled, or (C) in the case of a merger or consolidation, require
      the
      surviving entity to issue to the Holder a convertible Debenture with a principal
      amount equal to the aggregate principal amount of this Debenture then held
      by
      such Holder, plus all accrued and unpaid interest and other amounts owing
      thereon, which such newly issued convertible Debenture shall have terms
      identical (including with respect to conversion) to the terms of this Debenture,
      and shall be entitled to all of the rights and privileges of the Holder of
      this
      Debenture set forth herein and the agreements pursuant to which this Debentures
      were issued. In the case of clause (C), the conversion price applicable for
      the
      newly issued shares of convertible preferred stock or convertible Debentures
      shall be based upon the amount of securities, cash and property that each share
      of Common Stock would receive in such transaction and the Conversion Price
      in
      effect immediately prior to the effectiveness or closing date for such
      transaction. The terms of any such merger, sale or consolidation shall include
      such terms so as to continue to give the Holder the right to receive the
      securities, cash and property set forth in this Section upon any conversion
      or
      redemption following such event. This provision shall similarly apply to
      successive such events. 

     
      

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (d)
       
      The
      Obligor covenants that it will at all times reserve and keep available out
      of
      its authorized and unissued shares of Common Stock solely for the purpose of
      issuance upon conversion of this Debenture and payment of interest on this
      Debenture, each as herein provided, free from preemptive rights or any other
      actual contingent purchase rights of persons other than the Holder, not less
      than such number of shares of the Common Stock as shall (subject to any
      additional requirements of the Obligor as to reservation of such shares set
      forth in this Debenture) be issuable (taking into account the adjustments and
      restrictions of Sections
      2(b) and 3(c) )
      upon
      the conversion of the outstanding principal amount of this Debenture and payment
      of interest hereunder. The Obligor covenants that all shares of Common Stock
      that shall be so issuable shall, upon issue, be duly and validly authorized,
      issued and fully paid, nonassessable and, if the Underlying Shares Registration
      Statement has been declared effective under the Securities Act, registered
      for
      public sale in accordance with such Underlying Shares Registration Statement.
      

     
      

    (e)
       
      Upon
      a
      conversion hereunder the Obligor shall not be required to issue stock
      certificates representing fractions of shares of the Common Stock, but may
      if
      otherwise permitted, make a cash payment in respect of any final fraction of
      a
      share based on the Closing Bid Price at such time. If the Obligor elects not,
      or
      is unable, to make such a cash payment, the Holder shall be entitled to receive,
      in lieu of the final fraction of a share, one whole share of Common Stock.
      

     
      

    (f)
       
      The
      issuance of certificates for shares of the Common Stock on conversion of this
      Debenture shall be made without charge to the Holder thereof for any documentary
      stamp or similar taxes that may be payable in respect of the issue or delivery
      of such certificate, provided that the Obligor shall not be required to pay
      any
      tax that may be payable in respect of any transfer involved in the issuance
      and
      delivery of any such certificate upon conversion in a name other than that
      of
      the Holder of such Debenture so converted and the Obligor shall not be required
      to issue or deliver such certificates unless or until the person or persons
      requesting the issuance thereof shall have paid to the Obligor the amount of
      such tax or shall have established to the satisfaction of the Obligor that
      such
      tax has been paid. 

     
      

    (g)
       
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms hereof 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) trading 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: 

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
              If
                to the Company, to: 

            	
              Ariel
                Way, Inc. 

            
	
               
                

            	
               
                

            
	
               
                

            	
              8000
                Towers Crescent Drive, Suite 1220 

            
	
               
                

            	
              Vienna,
                VA 22182 

            
	
               
                

            	
              Attention:
                 
                Chief
                Executive Officer 

            
	
               
                

            	
              Telephone:
                 
                (703)
                918-2420 

            
	
               
                

            	
              Facsimile:
                 
                (703)
                991-0841 

            
	
               
                

            	
               
                

            
	
              If
                to the Holder: 

            	
              Arne
                Dunhem 

            
	
               
                

            	
              7901
                Ariel Way 

            
	
               
                

            	
              McLean,
                VA 22102 

            

    

    

    or
      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 three (3) business days prior to the effectiveness of such change.
      Written confirmation of receipt (i) given by the recipient of such notice,
      consent, waiver or other communication, (ii) 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 (iii)
      provided by a nationally recognized overnight delivery service, shall be
      rebuttable evidence of personal service, receipt by facsimile or receipt from
      a
      nationally recognized overnight delivery service in accordance with clause
      (i),
      (ii) or (iii) above, respectively. 

     
      

    Section
      4 .
       
      Definitions
      .
      For the
      purposes hereof, the following terms shall have the following meanings:

     
      

    “
      Business
      Day ”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday in the United States or a day on which banking institutions are
      authorized or required by law or other government action to close. 

     
      

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    “
      Change
      of Control Transaction ”
means
      the occurrence of (a) an acquisition after the date hereof by an individual
      or
      legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
      Exchange Act) of effective control (whether through legal or beneficial
      ownership of capital stock of the Obligor, by contract or otherwise) of in
      excess of fifty percent (50%) of the voting securities of the Obligor (except
      that the acquisition of voting securities by the Holder shall not constitute
      a
      Change of Control Transaction for purposes hereof), (b) a replacement at one
      time or over time of more than one-half of the members of the board of directors
      of the Obligor which is not approved by a majority of those individuals who
      are
      members of the board of directors on the date hereof (or by those individuals
      who are serving as members of the board of directors on any date whose
      nomination to the board of directors was approved by a majority of the members
      of the board of directors who are members on the date hereof), (c) the merger,
      consolidation or sale of fifty percent (50%) or more of the assets of the
      Obligor or any subsidiary of the Obligor in one or a series of related
      transactions with or into another entity, or (d) the execution by the Obligor
      of
      an agreement to which the Obligor is a party or by which it is bound, providing
      for any of the events set forth above in (a), (b) or (c). 

     
      

    “
      Commission
      ”
means
      the Securities and Exchange Commission. 

     
      

    “
      Common
      Stock ”
means
      the common stock, par value $0.001, of the Obligor and stock of any other class
      into which such shares may hereafter be changed or reclassified. 

     
      

    “
      Exchange
      Act ”
means
      the Securities Exchange Act of 1934, as amended. 

     
      

    “
      Funding
      Event ”
means
      any transaction or series of transactions closed after the Original Issue Date
      in which the Obligor raise $4,000,000 or more through the sale of their equity
      securities or securities exercisable or convertible into equity securities.
      

     
      

    “
      Original
      Issue Date ”
shall
      mean the date of the first issuance of this Debenture regardless of the number
      of transfers and regardless of the number of instruments, which may be issued
      to
      evidence such Debenture. 

     
      

    “
      Closing
      Bid Price ”
means
      the price per share in the last reported trade of the Common Stock on the OTC
      or
      on the exchange which the Common Stock is then listed as quoted by Bloomberg,
      LP. 

     
      

    “
      Person
      ”
means
      a
      corporation, an association, a partnership, organization, a business, an
      individual, a government or political subdivision thereof or a governmental
      agency. 

     
      

    “
      Securities
      Act ”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder. 

     
      

    “
      Trading
      Day ”
means
      a
      day on which the shares of Common Stock are quoted on the OTC or quoted or
      traded on such Subsequent Market on which the shares of Common Stock are then
      quoted or listed; provided, that in the event that the shares of Common Stock
      are not listed or quoted, then Trading Day shall mean a Business Day.

     
      

    “
      Transaction
      Documents ”
means
      the SECURITIES PURCHASE AGREEMENT or any other agreement delivered in connection
      with the SECURITIES PURCHASE AGREEMENT, including, without limitation, the
      Security Agreement, the Pledge and Escrow Agreement, or the Investor
      Registration Rights Agreement. 

     
      

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    “
      Underlying
      Shares ”
means
      the shares of Common Stock issuable upon conversion of this Debenture or as
      payment of interest in accordance with the terms hereof. 

     
      

    “
      Underlying
      Shares Registration Statement ”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement, covering among other things the resale of the Underlying
      Shares and naming the Holder as a “selling stockholder” thereunder.

     
      

    Section
      5 .
       
      Except
      as
      expressly provided herein, no provision of this Debenture shall alter or impair
      the obligations of the Obligor, which are absolute and unconditional, to pay
      the
      principal of, interest and other charges (if any) on, this Debenture at the
      time, place, and rate, and in the coin or currency, herein prescribed. This
      Debenture is a direct obligation of the Obligor. This Debenture ranks pari
      passu
      with all other Debentures now or hereafter issued under the terms set forth
      herein. As long as this Debenture is outstanding, the Obligor shall not and
      shall cause their subsidiaries not to, without the consent of the Holder, (i)
      amend its certificate of incorporation, bylaws or other charter documents so
      as
      to adversely affect any rights of the Holder; (ii) repay, repurchase or offer
      to
      repay, repurchase or otherwise acquire shares of its Common Stock or other
      equity securities other than as to the Underlying Shares to the extent permitted
      or required under the Transaction Documents; or (iii) enter into any agreement
      with respect to any of the foregoing. 

     
      

    Section
      6 .
       
      This
      Debenture shall not entitle the Holder to any of the rights of a stockholder
      of
      the Obligor, including without limitation, the right to vote, to receive
      dividends and other distributions, or to receive any notice of, or to attend,
      meetings of stockholders or any other proceedings of the Obligor, unless and
      to
      the extent converted into shares of Common Stock in accordance with the terms
      hereof. 

     
      

    Section
      7 .
       
      If
      this
      Debenture is mutilated, lost, stolen or destroyed, the Obligor shall execute
      and
      deliver, in exchange and substitution for and upon cancellation of the mutilated
      Debenture, or in lieu of or in substitution for a lost, stolen or destroyed
      Debenture, a new Debenture for the principal amount of this Debenture so
      mutilated, lost, stolen or destroyed but only upon receipt of evidence of such
      loss, theft or destruction of such Debenture, and of the ownership hereof,
      and
      indemnity, if requested, all reasonably satisfactory to the Obligor.

     
      

    Section
      8 .
       
      No
      indebtedness of the Obligor is senior to this Debenture in right of payment,
      whether with respect to interest, damages or upon liquidation or dissolution
      or
      otherwise. Without the Holder’s consent, the Obligor will not and will not
      permit any of their subsidiaries to, directly or indirectly, enter into, create,
      incur, assume or suffer to exist any indebtedness of any kind, on or with
      respect to any of its property or assets now owned or hereafter acquired or
      any
      interest therein or any income or profits there from that is senior in any
      respect to the obligations of the Obligor under this Debenture. 

     
      

    Section
      9 .
       
      This
      Debenture shall be governed by and construed in accordance with the laws of
      the
      State of New Jersey, without giving effect to conflicts of laws thereof. Each
      of
      the parties consents to the jurisdiction of the Superior Courts of the State
      of
      New Jersey sitting in Hudson County, New Jersey and the U.S. District Court
      for the District of New Jersey sitting in Newark, New Jersey in connection
      with
      any dispute arising under this Debenture and hereby waives, to the maximum
      extent permitted by law, any objection, including any objection based on
forum
       
      non
       
      conveniens
      to
      the
      bringing of any such proceeding in such jurisdictions. 

     
      

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Section
      10 .
       
      If
      the
      Obligor fails to strictly comply with the terms of this Debenture, then the
      Obligor shall reimburse the Holder promptly for all fees, costs and expenses,
      including, without limitation, attorneys’ fees and expenses incurred by the
      Holder in any action in connection with this Debenture, including, without
      limitation, those incurred: (i) during any workout, attempted workout, and/or
      in
      connection with the rendering of legal advice as to the Holder’s rights,
      remedies and obligations, (ii) collecting any sums which become due to the
      Holder, (iii) defending or prosecuting any proceeding or any counterclaim to
      any
      proceeding or appeal; or (iv) the protection, preservation or enforcement of
      any
      rights or remedies of the Holder. 

     
      

    Section
      11 .
       
      Any
      waiver by the Holder of a breach of any provision of this Debenture shall not
      operate as or be construed to be a waiver of any other breach of such provision
      or of any breach of any other provision of this Debenture. The failure of the
      Holder to insist upon strict adherence to any term of this Debenture on one
      or
      more occasions shall not be considered a waiver or deprive that party of the
      right thereafter to insist upon strict adherence to that term or any other
      term
      of this Debenture. Any waiver must be in writing. 

     
      

    Section
      12 .
       
      If
      any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any person or circumstance, it shall nevertheless remain applicable to all
      other
      persons and circumstances. If it shall be found that any interest or other
      amount deemed interest due hereunder shall violate applicable laws governing
      usury, the applicable rate of interest due hereunder shall automatically be
      lowered to equal the maximum permitted rate of interest. The Obligor covenants
      (to the extent that it may lawfully do so) that it shall not at any time insist
      upon, plead, or in any manner whatsoever claim or take the benefit or advantage
      of, any stay, extension or usury law or other law which would prohibit or
      forgive the Obligor from paying all or any portion of the principal of or
      interest on this Debenture as contemplated herein, wherever enacted, now or
      at
      any time hereafter in force, or which may affect the covenants or the
      performance of this indenture, and the Obligor (to the extent it may lawfully
      do
      so) hereby expressly waives all benefits or advantage of any such law, and
      covenants that it will not, by resort to any such law, hinder, delay or impeded
      the execution of any power herein granted to the Holder, but will suffer and
      permit the execution of every such as though no such law has been enacted.
      

     
      

    Section
      13 .
       
      Whenever
      any payment or other obligation hereunder shall be due on a day other than
      a
      Business Day, such payment shall be made on the next succeeding Business Day.
      

     
      

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Section
      14 .
       
      THE
      PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
      OF
      THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
      OR
      ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
      DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT
      FOR
      THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT. 

     
      

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     
      

    IN
      WITNESS WHEREOF ,
      the
      Obligor has caused this Secured Convertible Debenture to be duly executed by
      a
      duly authorized officer as of the date set forth above. 

     
      

    
      	 	 	 
	 	
              ARIEL
                WAY, INC. 

            
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              

              Name:
                 
                Leif
                T. Carlsson 

            
	 	
              Title:
                 
                Director
                

            

    

     

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

     
      

     
      

    EXHIBIT
      “A” 

     
      

     
      

    NOTICE
      OF CONVERSION 

     
      

     
      

    (To
      be executed by the Holder in order to Convert the Debenture)

     
      

    

    
      	
               
                

              TO:
                

               
                

            	
               
                

            

    

    

    The
      undersigned hereby irrevocably elects to convert
      $__________________________  of the principal amount of the above Debenture
      into Shares of Common Stock of Ariel Way, Inc., according to the conditions
      stated therein, as of the Conversion Date written below. 

     
      

    
      	
               
                

              Conversion
                Date: 

            	
               
                

            
	
               
                

              Applicable
                Conversion Price: 

            	
               
                

            
	
               
                

              Signature:
                

            	
               
                

            
	
               
                

              Name:
                

            	
               
                

            
	
               
                

              Address:
                

            	
               
                

            
	
               
                

              Amount
                to be converted: 

            	
               
                

              $
                 
                               
                  

            
	
               
                

              Amount
                of Debenture unconverted: 

            	
               
                

              $
                 
                               
                  

            
	
               
                

              Conversion
                Price per share: 

            	
               
                

              $
                 
                               
                  

            
	
               
                

              Number
                of shares of Common Stock to be issued: 

            	 
	
               
                

              Please
                issue the shares of Common Stock in the following name and to the
                following address: 

            	
               
                

            
	
               
                

              Issue
                to: 

            	
               
                

            
	
               
                

              Authorized
                Signature: 

            	
               
                

            
	
               
                

              Name:
                

            	
               
                

            
	
               
                

              Title:
                

            	
               
                

            
	
               
                

              Phone
                Number: 

            	
               
                

            
	
               
                

              Broker
                DTC Participant Code: 

            	
               
                

            
	
               
                

              Account
                Number: 

            	
               
                

            

    

    

    

    
      
         

      

        17REVOLVING
      CREDIT

    LOAN
      AND SECURITY AGREEMENT

    

    Dated
      as
      of August 18, 2006

    

    

    among

    

    FREEDOM
      FINANCIAL GROUP, INC.

    &

    T.C.G.
      - THE CREDIT GROUP INC.

    

    (collectively,
      the Borrower)

    

    AND

    

    HEARTLAND
      BANK

    

    (the
      Lender)

    

     

    
      

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    
      
        

        
          	 	 	 	 	 	 	
                  Page

                
	 	 	 	 	 	 	 
	
                  ARTICLE
                    1 - DEFINITIONS

                	 	
                  1

                
	 	 	
                  Section
                    1.1

                	 	
                  Definitions

                	 	
                  1

                
	 	 	
                  Section
                    1.2

                	 	
                  Other
                    Referential Provisions

                	 	
                  11

                
	 	 	
                  Section
                    1.3

                	 	
                  Exhibits
                    and Schedules

                	 	
                  11

                
	
                  ARTICLE
                    2 - REVOLVING CREDIT FACILITY

                	 	
                  12

                
	 	 	
                  Section
                    2.1

                	 	
                  Revolving
                    Credit Loans

                	 	
                  12

                
	 	 	
                  Section
                    2.2

                	 	
                  Manner
                    of Borrowing

                	 	
                  12

                
	 	 	
                  Section
                    2.3

                	 	
                  Repayment

                	 	
                  13

                
	 	 	
                  Section
                    2.4

                	 	
                  Note

                	 	
                  13

                
	 	 	
                  Section
                    2.5

                	 	
                  Voluntary
                    Prepayment

                	 	
                  13

                
	 	 	
                  Section
                    2.6

                	 	
                  Mandatory
                    Prepayment of Principal and Reduction of Revolving Credit
                    Loan

                	 	
                  13

                
	
                  ARTICLE
                    3 - GENERAL LOAN PROVISIONS

                	 	
                  13

                
	 	 	
                  Section
                    3.1

                	 	
                  Interest

                	 	
                  13

                
	 	 	
                  Section
                    3.2

                	 	
                  Fees

                	 	
                  14

                
	 	 	
                  Section
                    3.3

                	 	
                  Manner
                    of Payment

                	 	
                  14

                
	 	 	
                  Section
                    3.4

                	 	
                  Statements
                    of Account

                	 	
                  15

                
	 	 	
                  Section
                    3.5

                	 	
                  Termination
                    of Agreement

                	 	
                  15

                
	
                  ARTICLE
                    4 - WARRANTS

                	 	
                  15

                
	 	 	
                  Section
                    4.1

                	 	
                  Warrants

                	 	
                  15

                
	
                  ARTICLE
                    5 - CONDITIONS PRECEDENT

                	 	
                  15

                
	 	 	
                  Section
                    5.1

                	 	
                  Conditions
                    Precedent to Initial Advance

                	 	
                  15

                
	 	 	
                  Section
                    5.2

                	 	
                  Each
                    Advance

                	 	
                  17

                
	
                  ARTICLE
                    6 - REPRESENTATIONS
                    AND WARRANTIES OF THE BORROWER

                	 	
                  17

                
	 	 	
                  Section
                    6.1

                	 	
                  Representations
                    and Warranties

                	 	
                  17

                
	 	 	
                  Section
                    6.2

                	 	
                  Survival
                    of Representations and Warranties, Etc.

                	 	
                  21

                
	
                  ARTICLE
                    7 - SECURITY INTEREST

                	 	
                  21

                
	 	 	
                  Section
                    7.1

                	 	
                  Security
                    Interest

                	 	
                  21

                
	 	 	
                  Section
                    7.2

                	 	
                  Continued
                    Priority of Security Interest

                	 	
                  21

                
	
                  ARTICLE
                    8 - COLLATERAL COVENANTS

                	 	
                  22

                
	 	 	
                  Section
                    8.1

                	 	
                  Collection
                    of Receivables Installment Contracts

                	 	
                  22

                
	 	 	
                  Section
                    8.2

                	 	
                  Verification
                    and Notification

                	 	
                  22

                
	
                   

                	 	
                  Section
                    8.3

                	 	
                  Disputes
                    and Adjustments

                	 	
                  23

                
	 	 	
                  Section
                    8.4

                	 	
                  Underwriting
                    Guidelines

                	 	
                  23

                
	 	 	
                  Section
                    8.5

                	 	
                  Operating
                    Account

                	 	
                  23

                
	 	 	
                  Section
                    8.6

                	 	
                  Ownership
                    and Defense of Title

                	 	
                  23

                
	 	 	
                  Section
                    8.7

                	 	
                  Insurance

                	 	
                  24

                
	 	 	
                  Section
                    8.8

                	 	
                  Location
                    of Offices and Collateral

                	 	
                  24

                
	 	 	
                  Section
                    8.9

                	 	
                  Records
                    Relating to Collateral

                	 	
                  24

                

        

         

         

        
          
            
            

          

          
            i

            
              

            

          

          
            
            

          

        

        

        
          	 	 	
                  Section
                    8.10

                	 	
                  Inspection
                    and Audit

                	 	
                  24

                
	 	 	
                  Section
                    8.11

                	 	
                  Maintenance
                    of Equipment

                	 	
                  25

                
	 	 	
                  Section
                    8.12

                	 	
                  Information
                    and Reports

                	 	
                  25

                
	 	 	
                  Section
                    8.13

                	 	
                  Power
                    of Attorney

                	 	
                  25

                
	
                  ARTICLE
                    9 - AFFIRMATIVE COVENANTS

                	 	
                  26

                
	 	 	
                  Section
                    9.1

                	 	
                  Preservation
                    of Existence and Similar Matters

                	 	
                  26

                
	 	 	
                  Section
                    9.2

                	 	
                  Compliance
                    with Applicable Law

                	 	
                  26

                
	 	 	
                  Section
                    9.3

                	 	
                  Conduct
                    of Business

                	 	
                  26

                
	 	 	
                  Section
                    9.4

                	 	
                  Payment
                    of Taxes and Claims

                	 	
                  26

                
	 	 	
                  Section
                    9.5

                	 	
                  Accounting
                    Methods and Financial Records

                	 	
                  26

                
	 	 	
                  Section
                    9.6

                	 	
                  Use
                    of Proceeds

                	 	
                  26

                
	 	 	
                  Section
                    9.7

                	 	
                  Hazardous
                    Waste and Substances; Environmental Requirements

                	 	
                  26

                
	
                   

                	 	
                  Section
                    9.8

                	 	
                  Revisions
                    or Updates to Schedules

                	 	
                  27

                
	 	 	
                  Section
                    9.9

                	 	
                  Accuracy
                    of Information

                	 	
                  27

                
	
                  ARTICLE
                    10 - INFORMATION

                	 	
                  27

                
	 	 	
                  Section
                    10.1

                	 	
                  Financial
                    Statements

                	 	
                  27

                
	
                   

                	 	
                  Section
                    10.2

                	 	
                  Officer’s
                    Certificate

                	 	
                  27

                
	 	 	
                  Section
                    10.3

                	 	
                  Copies
                    of Other Reports

                	 	
                  28

                
	 	 	
                  Section
                    10.4

                	 	
                  Notice
                    of Litigation and Other Matters

                	 	
                  28

                
	 	 	
                  Section
                    10.5

                	 	
                  ERISA

                	 	
                  28

                
	
                  ARTICLE
                    11 - NEGATIVE COVENANTS

                	 	
                  29

                
	 	 	
                  Section
                    11.1

                	 	
                  Financial
                    Ratio

                	 	
                  29

                
	 	 	
                  Section
                    11.2

                	 	
                  Indebtedness

                	 	
                  29

                
	 	 	
                  Section
                    11.3

                	 	
                  Guaranties

                	 	
                  29

                
	 	 	
                  Section
                    11.4

                	 	
                  Investments

                	 	
                  29

                
	 	 	
                  Section
                    11.5

                	 	
                  Capital
                    Expenditures

                	 	
                  29

                
	 	 	
                  Section
                    11.6

                	 	
                  Restricted
                    Distributions and Payments, Etc.

                	 	
                  29

                
	 	 	
                  Section
                    11.7

                	 	
                  Merger,
                    Consolidation and Sale of Assets

                	 	
                  29

                
	 	 	
                  Section
                    11.8

                	 	
                  Transactions
                    with Affiliates

                	 	
                  29

                
	 	 	
                  Section
                    11.9

                	 	
                  Liens

                	 	
                  29

                
	 	 	
                  Section
                    11.10

                	 	
                  Operating
                    Leases

                	 	
                  29

                
	 	 	
                  Section
                    11.11

                	 	
                  Benefit
                    Plans

                	 	
                  29

                
	 	 	
                  Section
                    11.12

                	 	
                  Sales
                    and Leasebacks

                	 	
                  29

                
	 	 	
                  Section
                    11.13

                	 	
                  Amendments
                    of Other Agreements

                	 	
                  30

                
	 	 	
                  Section
                    11.14

                	 	
                  Split,
                    Subdivision or Combination of Shares

                	 	
                  30

                
	 	 	
                  Section
                    11.15

                	 	
                  Warrants

                	 	
                  30

                
	 	 	
                  Section
                    11.16

                	 	
                  Change
                    Senior Management

                	 	
                  30

                
	
                  ARTICLE
                    12 - DEFAULT

                	 	
                  30

                
	 	 	
                  Section
                    12.1

                	 	
                  Events
                    of Default

                	 	
                  30

                
	 	 	
                  Section
                    12.2

                	 	
                  Remedies

                	 	
                  32

                
	 	 	
                  Section
                    12.3

                	 	
                  Application
                    of Proceeds

                	 	
                  34

                
	 	 	
                  Section
                    12.4

                	 	
                  Power
                    of Attorney

                	 	
                  34

                
	 	 	
                  Section
                    12.5

                	 	
                  Miscellaneous
                    Provisions Concerning Remedies

                	 	
                  35

                
	
                  ARTICLE
                    13 - MISCELLANEOUS

                	 	
                  35

                
	 	 	
                  Section
                    13.1

                	 	
                  Notices

                	 	
                  35

                
	 	 	
                  Section
                    13.2

                	 	
                  Expenses

                	 	
                  36

                

        

         

        
          
            
            

          

          
            ii

            
              

            

          

          
            
            

          

        

        

        
          	 	 	
                  Section
                    13.3

                	 	
                  Stamp
                    and Other Taxes

                	 	
                  37

                
	 	 	
                  Section
                    13.4

                	 	
                  Setoff

                	 	
                  37

                
	 	 	
                  Section
                    13.5

                	 	
                  Litigation

                	 	
                  37

                
	 	 	
                  Section
                    13.6

                	 	
                  Reversal
                    of Payments

                	 	
                  38

                
	 	 	
                  Section
                    13.7

                	 	
                  Injunctive
                    Relief

                	 	
                  38

                
	 	 	
                  Section
                    13.8

                	 	
                  Accounting
                    Matters

                	 	
                  38

                
	 	 	
                  Section
                    13.9

                	 	
                  Assignment;
                    Participation

                	 	
                  38

                
	 	 	
                  Section
                    13.10

                	 	
                  Amendments

                	 	
                  38

                
	 	 	
                  Section
                    13.11

                	 	
                  Performance
                    of Borrower’s Duties

                	 	
                  39

                
	 	 	
                  Section
                    13.12

                	 	
                  Indemnification

                	 	
                  39

                
	 	 	
                  Section
                    13.13

                	 	
                  All
                    Powers Coupled with Interest

                	 	
                  39

                
	 	 	
                  Section
                    13.14

                	 	
                  Survival

                	 	
                  39

                
	 	 	
                  Section
                    13.15

                	 	
                  Severability
                    of Provisions

                	 	
                  39

                
	 	 	
                  Section
                    13.16

                	 	
                  Governing
                    Law

                	 	
                  39

                
	 	 	
                  Section
                    13.17

                	 	
                  Counterparts

                	 	
                  39

                
	 	 	
                  Section
                    13.18

                	 	
                  Reproduction
                    of Documents

                	 	
                  39

                
	 	 	
                  Section
                    13.19

                	 	
                  Consent
                    to Advertising and Publicity

                	 	
                  40

                
	 	 	
                  Section
                    13.20

                	 	
                  Final
                    Agreement

                	 	
                  40

                
	
                  EXHIBIT
                    A - NOTE

                	 	
                  42

                
	
                  EXHIBIT
                    B - BORROWING BASE CERTIFICATE

                	 	
                  44

                
	
                  EXHIBIT
                    C - COMPLIANCE CERTIFICATE

                	 	
                  45

                
	
                  EXHIBIT
                    D-1 - WARRANTS - 200,000 AND 300,000 SHARES

                	 	
                  46

                
	
                  EXHIBIT
                    D-2 - REGISTRATION RIGHTS AGREEMENT

                	 	
                  78

                
	
                  SCHEDULE
                    5.1(A)(IX) - INSTALLMENT CONTRACTS

                	 	
                  85

                
	
                  SCHEDULE
                    6.1(G) - LIENS ON THE PROPERTIES AND ASSETS OF THE
                    BORROWER

                	 	
                  86

                
	
                  SCHEDULE
                    6.1(H) - INDEBTEDNESS FOR MONEY BORROWED AND GUARANTIES

                	 	
                  87

                
	
                  SCHEDULE
                    6.1(N) - EMPLOYEE BENEFIT PLANS

                	 	
                  88

                
	
                  SCHEDULE
                    6.1(T) - FICTITIOUS NAMES

                	 	
                  89

                
	
                  SCHEDULE
                    6.1(X) - PRE AND POST CONVERSION CAPITALIZATION

                	 	
                  90

                

        

        

        
          
            
            

          

          
            iii

            
              

            

          

          
            
            

          

        

      

       

    

    REVOLVING
      CREDIT

     

    LOAN
      AND SECURITY AGREEMENT

     

    Dated
      as
      of August 18, 2006

     

    FREEDOM
      FINANCIAL GROUP, INC., a Delaware corporation (“FFG”),
      and
      T.C.G. - THE CREDIT GROUP INC. (“TCG”),
      a
      Manitoba, Canada corporation (FFG and TCG shall be collectively and jointly
      and
      severally referred to as the “Borrower”),
      and
      HEARTLAND BANK, a federal savings bank (“Lender”),
      agree
      as follows:

     

    ARTICLE
      1 - DEFINITIONS

     

    Section
      1.1  Definitions. For
      the
      purposes of this Agreement:

     

    “Account
      Debtor”
means
      a
      Person who is obligated on an Installment Contract or a Receivable.

     

    “Acquire”,
      as
      applied to any Business Unit or Investment, means the acquisition of such
      Business Unit or Investment by purchase, exchange, issuance of stock or other
      securities, or by merger, reorganization or any other method.

     

    “Advance”
means
      a
      disbursement of Loan proceeds made, or to be made, to Borrower or on Borrower's
      behalf under the terms and conditions of this Agreement.

     

    “Affiliate”
means,
      with respect to a Person, (a) any officer, director, employee or managing agent
      of such Person, (b) any spouse, parents, brothers, sisters, children and
      grandchildren of such Person, (c) any association, partnership, trust, entity
      or
      enterprise in which such Person is a director, officer or general partner,
      (d)
      any other Person that, (i) directly or indirectly, through one or more
      intermediaries, controls, or is controlled by, or is under common control with,
      such given Person, (ii) directly or indirectly beneficially owns or holds 10%
      or
      more of any class of voting stock or partnership or other interest of such
      Person or any Subsidiary of such Person, or (iii) 10% or more of the voting
      stock or partnership or other interest of which is directly or indirectly
      beneficially owned or held by such Person or a Subsidiary of such Person. The
      term “control” means the possession, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of a Person,
      whether through ownership of voting securities or partnership or other
      interests, by contract or otherwise.

     

    “Agreement”
means
      this Agreement, including the Exhibits and Schedules attached hereto, and all
      amendments, modifications and supplements hereto and thereto and restatements
      hereof and thereof.

     

    “Agreement
      Date”
means
      the above date as of which this Agreement is dated.

     

    “Availability”
means,
      as of the date of determination, the amount of Loan available to be borrowed
      by
      the Borrower hereunder in accordance with Section
      2.1
      less the
      sum of the outstanding principal balance of all Advances hereunder as of such
      date.

     

    “Base
      Rate”
means
      the per annum rate of interest publicly announced by the Lender at its principal
      office as its “base rate” as in effect on such date. Any change in an interest
      rate resulting from a change in the Base Rate shall become effective as of
      12:01
      a.m. on the day following the day in which such change was announced. The Base
      Rate is a reference used by the Lender in determining interest rates on certain
      loans and is not intended to be the lowest rate of interest charged on any
      extension of credit to any debtor.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Benefit
      Plan”
means
      an employee benefit plan as defined in Section 3(35) of ERISA (other than a
      Multiemployer Plan) in respect of which a Person or any Related Company is,
      or
      within the immediately preceding 6 years was, an “employer” as defined in
      Section 3(5) of ERISA, including such plans as may be established after the
      Agreement Date.

     

    “Borrower”
means
      Freedom Financial Group, Inc., a Delaware corporation, and T.C.G. - The Credit
      Group Inc., a Manitoba, Canada corporation, collectively and jointly and
      severally.

     

    “Borrowing
      Base”
means
      at any time an amount equal to the lesser of:

     

    (a) 50%
      of
      the face value of Eligible Installment Contracts due and owing at any such
      time,
or

     

    (b) Three
      Million Dollars ($3,000,000), less any reduction in amount required by
Section
      2.6.
      

     

    “Borrowing
      Base Certificate”
means
      a
      certificate in the form of Exhibit
      B
      attached
      hereto.

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday or other day on which banks in the city
      in
      which the principal office of the Lender is located are authorized to close.
      

     

    “Business
      Unit”
means
      the assets constituting the business, or a division or operating unit thereof,
      of any Person.

     

    “Capital
      Expenditures”
means,
      with respect to any Person, all expenditures made and liabilities incurred
      for
      the acquisition of assets (other than assets which constitute a Business Unit)
      which are not, in accordance with GAAP, treated as expense items for such Person
      in the year made or incurred or as a prepaid expense applicable to a future
      year
      or years.

     

    “Capitalized
      Lease”
means
      a
      lease that is required to be capitalized for financial reporting purposes in
      accordance with GAAP.

     

    “Capitalized
      Lease Obligation”
means
      Indebtedness represented by obligations under a Capitalized Lease, and the
      amount of such Indebtedness shall be the capitalized amount of such obligations
      determined in accordance with GAAP.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended from time to time.

     

    “Collateral”
means
      and includes Borrower’s right, title and interest in and to each of the
      following, wherever located and whether now or hereafter existing or now owned
      or hereafter acquired or arising:

     

    (a) all
      Receivables,

     

    (b) all
      Inventory,

     

    (c) all
      Equipment,

     

    (d) all
      Contract Rights,

     

    (e) all
      accounts,

     

    (f) all
      chattel paper,

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g) all
      commercial tort claims,

     

    (h) all
      goods,

     

    (i) all
      instruments,

     

    (j) all
      General Intangibles,

     

    (k) all
      Deposit Accounts,

     

    (l) all
      Intellectual Property,

     

    (m) all
      investment related property,

     

    (n) all
      letter of credit rights,

     

    (o) all
      Installment Contracts

     

    (p) all
      goods
      and other property, whether or not delivered, (i) the sale or lease of which
      gives or purports to give rise to any Receivable, or (ii) securing any
      Receivable, including, without limitation, all rights as an unpaid lienor
      (including, without limitation, stoppage in transit, replevin and reclamation)
      with respect to such goods and other properties,

     

    (q) all
      titles, guaranties, leases, security agreements and other agreements and
      property which secure or relate to any Receivable, chattel paper, or other
      Collateral or are acquired for the purpose of securing and enforcing any item
      thereof,

     

    (r) all
      documents of title, policies and certificates of insurance, securities, chattel
      paper and other documents and instruments evidencing or pertaining to any and
      all items of Collateral,

     

    (s) all
      files, correspondence, computer programs, tapes, disks and related data
      processing software which contain information identifying or pertaining to
      any
      of the Collateral or any Account Debtor or showing the amounts thereof or
      payments thereon or otherwise necessary or helpful in the realization thereon
      or
      the collection thereof,

     

    (t) all
      cash
      deposited with the Lender or any Affiliate thereof or which the Lender is
      entitled to retain or otherwise possess as collateral pursuant to the provisions
      of this Agreement or any of the Security Documents, and

     

    (u) any
      and
      all products and cash and non-cash proceeds of the foregoing (including, but
      not
      limited to, any claims to any items referred to in this definition and any
      claims against third parties for loss of, damage to or destruction of any or
      all
      of the Collateral or for proceeds payable under or unearned premiums with
      respect to policies of insurance) in whatever form, including, but not limited
      to, cash, negotiable instruments and other instruments for the payment of money,
      chattel paper, security agreements and other documents. To the extent the above
      items of Collateral are not defined herein, they shall be defined as provided
      in
      the UCC.

     

    “Compliance
      Certificate”
shall
      be in the form of Exhibit
      C
      attached
      and shall contain statements by the signing 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 absence of footnotes) 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 of Borrower contained in this Agreement and
      other
      Loan Documents are true and correct in all material respects as of the date
      such
      certification is given as if made on such date, (iii) there exists no Default
      or
      Event of Default which is continuing that has not been waived in writing by
      Lender and no Event of Default has occurred that has not been waived in writing
      by Lender, and (iv) shall set forth the current book Net Worth. If any
      Compliance Certificate discloses that a representation or warranty is not true
      and correct in any material respect, or that a Default or Event of Default
      has
      occurred that has not been waived in writing by Lender, such Compliance
      Certificate shall set forth what action such covered person has taken or
      proposes to take with respect thereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Contract
      Rights”
means
      and includes, as to any Person, all of such Person’s then owned or existing and
      future acquired or arising rights under contracts not yet earned by performance
      and not evidenced by an instrument or chattel paper, to the extent that the
      same
      may lawfully be assigned.

     

    “Default”
means
      any of the events specified in Section
      12.1
      that,
      with the passage of time or giving of notice or both, would constitute an Event
      of Default.

     

    “Default
      Margin”
means
      five percent (5%).

     

    “Deposit
      Accounts”
means
      any demand, time, savings, passbook or like account maintained with a bank,
      savings and loan association, credit union or like organization, other than
      an
      account evidenced by a certificate of deposit that is an instrument under the
      UCC.

     

    “Dollar”
and
      “$”
means
      freely transferable United States dollars.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as in effect from time
      to
      time, and any successor statute.

     

    “Effective
      Date”
means
      the later of (a) the Agreement Date, and (b) the first date on which all of
      the
      conditions set forth in Section
      5.1
      shall
      have been fulfilled or waived by the Lender.

     

    “Effective
      Interest Rate”
means
      the rate of interest per annum on the Loan in effect from time to time pursuant
      to the provisions of Section
      3.1.

     

    “Eligible
      Installment Contracts”
means
      all retail automobile installment loan contracts underwritten or purchased
      by
      Freedom Financial Group, Inc., in the states where Freedom Financial Group,
      Inc.
      is duly licensed to do business as a consumer automobile lender, provided,
      however, it shall not include any installment loan contract that
      is:

     

    (a) Sixty
      (60) days or more past due the specified date of payment; or

     

    (b) For
      an
      automobile that is eight or more years old at the time the installment loan
      was
      extended; or

     

    (c) For
      an
      automobile where such automobile’s title work does not list Freedom Financial
      Group, Inc. (or an authorized DBA thereof) as the secured party; or

     

    (d) For
      an
      automobile that has 100,000 miles or more at the time the installment loan
      was
      extended; or

     

    (e) For
      an
      automobile that does not have active insurance endorsements at the time the
      installment loan was extended; or

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (f) When
      the
      loan to value ratios at the time the installment loan was extended exceed
      Freedom Financial Group, Inc.’s underwriting guidelines, including but not
      limited to those loans with maximum advance rates in excess of one hundred
      ten
      percent (110%) of the automobiles blue book value and, if applicable, an
      additional fifteen percent (15%) on the back-end products such as warranties;
      or

     

    (g) Underwritten
      with any other ineligible underwriting criteria as determined by Lender, in
      its
      reasonable and sole discretion, provided such criteria are communicated to
      Borrower in writing not less than 30 days prior to applying such
      criteria.

     

    “Environmental
      Laws”
means
      all federal, state, local and foreign laws now or hereafter in effect relating
      to pollution or protection of the environment, including laws relating to
      emissions, discharges, releases or threatened releases of pollutants,
      contaminants, chemicals or industrial, toxic or hazardous substances or wastes
      into the environment (including, without limitation, ambient air, surface water,
      ground water or land) or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, removal, transport or handling
      of pollutants, contaminants, chemicals or industrial, toxic or hazardous
      substances or wastes, and any and all regulations, notices or demand letters
      issued, entered, promulgated or approved thereunder.

     

    “Equipment”
means
      and includes, as to any Person, all of such Person’s then owned or existing and
      future acquired or arising machinery, apparatus, equipment, motor vehicles,
      tractors, trailers, rolling stock, fittings, and other tangible personal
      property (other than Inventory) of every kind and description used in such
      Person’s business operations or owned by such Person or in which such Person has
      an interest and all parts, accessories and special tools and all increases
      and
      accessions thereto and substitutions and replacements therefor.

     

    “Event
      of Default”
means
      any of the events specified in Section
      12.1.

     

    “Financing
      Statements”
means
      the Uniform Commercial Code financing statements executed and delivered by
      the
      Borrower to the Lender, naming the Lender as secured party and the Borrower
      as
      debtor, in connection with this Agreement.

     

    “GAAP”
means
      generally accepted accounting principles consistently applied and maintained
      throughout the period indicated and consistent with the prior financial practice
      of the Person referred to.

     

    “General
      Intangibles”
means,
      as to any Person, all of such Person’s then owned or existing and future
      acquired or arising general intangibles, choses in action and causes of action
      and all other intangible personal property of such Person of every kind and
      nature (other than Receivables), including, without limitation, Intellectual
      Property, corporate or other business records, inventions, designs, blueprints,
      plans, specifications, trade secrets, goodwill, computer software, customer
      lists, registrations, licenses, franchises, tax refund claims, reversions or
      any
      rights thereto and any other amounts payable to such Person from any Benefit
      Plan, Multiemployer Plan or other employee benefit plan, rights and claims
      against carriers and shippers, rights to indemnification, business interruption
      insurance and proceeds thereof, property, casualty or any similar type of
      insurance and any proceeds thereof, proceeds of insurance covering the lives
      of
      key employees on which such Person is beneficiary and any letter of credit,
      guarantee, claims, security interest or other security held by or granted to
      such Person to secure payment by an Account Debtor of any of the
      Receivables.

     

    “Governmental
      Approvals”
means
      all authorizations, consents, approvals, licenses and exemptions of,
      registrations and filings with, and reports to, all governmental bodies, whether
      federal, state, local, foreign national or provincial, and all agencies
      thereof.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Governmental
      Authority”
means
      any government or political subdivision or any agency, authority, bureau,
      central bank, commission, department or instrumentality of either, or any court,
      tribunal, grand jury or arbitrator, in each case whether foreign or
      domestic.

     

    “Guaranty”
or
      “Guarantied”
as
      applied to any obligation of another Person shall mean and include:

     

    (a) a
      guaranty (other than by endorsement of negotiable instruments for collection
      in
      the ordinary course of business), directly or indirectly, in any manner, of
      any
      part or all of such obligation of such other Person, and

     

    (b) an
      agreement, direct or indirect, contingent or otherwise, and whether or not
      constituting a guaranty, the practical effect of which is to assure the payment
      or performance (or payment of damages in the event of nonperformance) of any
      part or all of such obligation of such other Person whether by (i) the purchase
      of securities or obligations, (ii) the purchase, sale or lease (as lessee or
      lessor) of property or the purchase or sale of services primarily for the
      purpose of enabling the obligor with respect to such obligation to make any
      payment or performance (or payment of damages in the event of nonperformance)
      of
      or on account of any part or all of such obligation or to assure the owner
      of
      such obligation against loss, (iii) the supplying of funds to, or in any other
      manner investing in, the obligor with respect to such obligation, (iv) repayment
      of amounts drawn down by beneficiaries of letters of credit, or (v) the
      supplying of funds to or investing in a Person on account of all or any part
      of
      such Person’s obligation under a guaranty of any obligation or indemnifying or
      holding harmless, in any way, such Person against any part or all of such
      obligation.

     

    “Indebtedness”
of
      any
      Person means, without duplication, (a) Liabilities, (b) all obligations for
      money borrowed or for the deferred purchase price of property or services or
      in
      respect of reimbursement obligations under letters of credit, (c) all
      obligations represented by bonds, debentures, notes and accepted drafts that
      represent extensions of credit, (d) Capitalized Lease Obligations, (e) all
      obligations (including, during the noncancellable term of any lease in the
      nature of a title retention agreement, all future payment obligations under
      such
      lease discounted to their present value in accordance with GAAP) secured by
      any
      Lien to which any property or asset owned or held by such Person is subject,
      whether or not the obligation secured thereby shall have been assumed by such
      Person, (f) all obligations of other Persons which such Person has Guarantied,
      including, but not limited to, all obligations of such Person consisting of
      recourse liability with respect to accounts receivable sold or otherwise
      disposed of by such Person, and (g) in the case of the Borrower (without
      duplication) the Loan.

     

    “Initial
      Advance”
means
      the Advance made to the Borrower on the Effective Date.

     

    “Installment
      Contracts”
means
      all retail automobile installment loan contracts underwritten or purchased
      by
      either Borrower, including any payments arising thereunder and any collateral
      associated therewith.

     

    “Intellectual
      Property”
means,
      as to any Person, all of such Person’s then owned existing and future acquired
      or arising patents, patent rights, copyrights, works which are the subject
      of
      copyrights, trademarks, service marks, trade names, trade styles, patent,
      trademark and service mark applications, and all licenses and rights related
      to
      any of the foregoing and all other rights under any of the foregoing, all
      extensions, renewals, reissues, divisions, continuations and
      continuations-in-part of any of the foregoing and all rights to sue for past,
      present and future infringements of any of the foregoing.

     

    “Interest
      Expense”
means
      interest on Indebtedness during the period for which computation is being made,
      excluding (a) the amortization of fees and costs incurred with respect to the
      closing of loans which have been capitalized as transaction costs, and (b)
      interest paid in kind.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Interest
      Payment Date”
means
      the first day of each calendar month commencing on the first day of the calendar
      month after the Initial Advance, and continuing thereafter until the Secured
      Obligations have been irrevocably paid in full.

     

    “Inventory”
means
      and includes, as to any Person, all of such Person’s then owned or existing and
      future acquired or arising (a) finished goods intended for sale or lease or
      for
      display or demonstration, (b) work in process, (c) raw materials and other
      materials and supplies of every nature and description used or which might
      be
      used in connection with the manufacture, packing, shipping, advertising,
      selling, leasing or furnishing of goods or otherwise used or consumed in the
      conduct of business, and (d) documents evidencing and general intangibles
      relating to any of the foregoing.

     

    “Investment”
means,
      with respect to any Person: (a) the direct or indirect purchase or acquisition
      of any beneficial interest in, any share of capital stock of, evidence of
      Indebtedness of or other security issued by any other Person, (b) any loan,
      advance or extension of credit to, or contribution to the capital of, any other
      Person, excluding advances to employees in the ordinary course of business
      for
      business expenses, (c) any Guaranty of the obligations of any other Person,
      or
      (d) any commitment or option to take any of the actions described in clauses
      (a), (b) or (c) above.

     

    “Lender”
means
      Heartland Bank, a federal savings bank, and its successors and
      assigns.

     

    “Lender’s
      Office”
means
      the office of the Lender specified in or determined in accordance with the
      provisions of Section
      13.1.

     

    “Liabilities”
means
      all liabilities of a Person determined in accordance with GAAP and includable
      on
      a balance sheet of such person in accordance with GAAP.

     

    “Lien”
means
      any mortgage, pledge, security interest, encumbrance or charge of any
      kind.

     

    “Loan”
means
      the Revolving Credit Loan, as well as all such Advances
      collectively.

     

    “Loan
      Document”
or
      “Loan
      Documents”
means,
      collectively, this Agreement, the Note, the Warrant Agreement, the Registration
      Rights Agreement and each other instrument, agreement and document executed
      and
      delivered by the Borrower in connection with this Agreement and each other
      instrument, agreement or document referred to herein or contemplated
      hereby.

     

    “Materially
      Adverse Effect”
means
      any act, omission, event or undertaking which would, singly or in the aggregate,
      have a materially adverse effect upon (a) the business, assets, properties,
      liabilities, condition (financial or otherwise), results of operations or
      business prospects of the Borrower, (b) upon the ability of the Borrower to
      perform any obligations under this Agreement or any other Loan Document to
      which
      it is a party, or (c) the legality, validity, binding effect, enforceability
      or
      admissibility into evidence of the Loan Document or the ability of Lender to
      enforce any rights or remedies under or in connection with the Loan Document;
      in
      any case, whether resulting from any single act, omission, situation, status,
      event, or undertaking, together with other such acts, omissions, situations,
      statuses, events, or undertakings.

     

    “Money
      Borrowed”
means,
      as applied to Indebtedness, (a) Indebtedness for money borrowed, (b)
      Indebtedness, whether or not in any such case the same was for money borrowed,
      (i) represented by notes payable and drafts accepted, that represent extensions
      of credit, (ii) constituting obligations evidenced by bonds, debentures, notes
      or similar instruments, or (iii) upon which interest charges are customarily
      paid (other than trade Indebtedness) or that was issued or assumed as full
      or
      partial payment for property, (c) Indebtedness that constitutes a Capitalized
      Lease Obligation, and (d) Indebtedness that is such by virtue of clause
      (f)
      of the
      definition thereof, but only to the extent that the obligations Guarantied
      are
      obligations that would constitute Indebtedness for Money Borrowed.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Multiemployer
      Plan”
means
      a
“multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the
      Borrower or a Related Company is required to contribute or has contributed
      within the immediately preceding 6 years.

     

    “Net
      Worth”
of
      any
      Person means the total shareholders’ equity (including capital stock, additional
      paid-in capital and retained earnings, after deducting treasury stock) which
      would appear as such on a balance sheet of such Person prepared in accordance
      with GAAP.

     

    “Note”
means
      the Revolving Credit Note.

     

    “Notice
      of Borrowing”
has
      the
      meaning set forth in Section
      2.2a.i.

     

    “Obligor”
means
      each Borrower, and each other party at any time primarily or secondarily,
      directly or indirectly, liable on any of the Secured Obligations.

     

    “Operating
      Lease”
means
      any lease (other than a lease constituting a Capitalized Lease Obligation)
      of
      real or personal property.

     

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

     

    “Permitted
      Indebtedness for Money Borrowed”
means
      Permitted Purchase Money Indebtedness.

     

    “Permitted
      Investments”
means
      Investments of the Borrower in: (a) negotiable certificates of deposit, time
      deposits and banker’s acceptances issued by the Lender or any Affiliate of the
      Lender or by any United States bank or trust company having capital, surplus
      and
      undivided profits in excess of $25,000,000.00, (b) any direct obligation of
      the
      United States of America or any agency or instrumentality thereof which has
      a
      remaining maturity at the time of purchase of not more than one year and
      repurchase agreements relating to the same, (c) sales on credit in the ordinary
      course of business on terms customary in the industry, and (d) notes, accepted
      in the ordinary course of business, evidencing overdue accounts receivable
      arising in the ordinary course of business.

     

    “Permitted
      Liens”
means:
      (a) Liens securing taxes, assessments and other governmental charges or levies
      (excluding any Lien imposed pursuant to any of the provisions of ERISA) or
      the
      claims of materialmen, mechanics, carriers, warehousemen or landlords for labor,
      materials, supplies or rentals incurred in the ordinary course of business,
      but
      (i) in all cases, only if payment shall not at the time be required to be made
      in accordance with Section
      9.4,
      and
      (ii) in the case of warehousemen or landlords controlling locations where
      Inventory is located, only if such liens have been waived or subordinated to
      the
      Security Interest in a manner satisfactory to the Lender; (b) Liens consisting
      of deposits or pledges made in the ordinary course of business in connection
      with, or to secure payment of, obligations under workers’ compensation,
      unemployment insurance or similar legislation or under surety or performance
      bonds, in each case arising in the ordinary course of business; (c) Liens
      constituting encumbrances in the nature of zoning restrictions, easements and
      rights or restrictions of record on the use of the Borrower’s real estate, which
      in the sole judgment of the Lender do not materially detract from the value
      of
      such real estate or impair the use thereof in the business of the Borrower;
      (d)
      Purchase Money Liens securing Permitted Purchase Money Indebtedness; (e) Liens
      of the Lender arising under this Agreement and the other Loan Documents; (f)
      Liens arising out of or resulting from any judgment or award, the time for
      the
      appeal or petition for rehearing of which shall not have expired, or in respect
      of which the Borrower is fully protected by insurance or in respect of which
      the
      Borrower shall at any time in good faith be prosecuting an appeal or proceeding
      for a review and in respect of which a stay of execution pending such appeal
      or
      proceeding for review shall have been secured, and as to which appropriate
      reserves have been established on the books of the Borrower; and (g) Liens
      securing additional Indebtedness, provided such liens are junior in priority
      to
      any liens of the Lender.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “Permitted
      Purchase Money Indebtedness”
means
      Purchase Money Indebtedness secured only by Purchase Money Liens and Capitalized
      Lease Obligations, incurred by the Borrower after the Agreement Date, up to
      an
      aggregate amount outstanding at any time equal to $75,000.00.

     

    “Person”
means
      an individual, corporation, partnership, association, trust or unincorporated
      organization or a government or any agency or political subdivision
      thereof.

     

    “Purchase
      Money Indebtedness”
means
      Indebtedness created to finance the payment of all or any part of the purchase
      price (not in excess of the fair market value thereof) of any tangible asset
      (other than Inventory) and incurred at the time of or within 10 days prior
      to or
      after the acquisition of such tangible asset.

     

    “Purchase
      Money Lien”
means
      any Lien securing Purchase Money Indebtedness, but only if such Lien shall
      at
      all times be confined solely to the tangible asset (other than Inventory) the
      purchase price of which was financed through the incurrence of the Purchase
      Money Indebtedness secured by such Lien.

     

    “Receivable”
means
      and includes, as to any Person, all of such Person’s then owned or existing and
      future acquired or arising (a) rights to the payment of money or other forms
      of
      consideration of any kind (whether classified under the UCC as accounts,
      contract rights, chattel paper, general intangibles or otherwise) including,
      but
      not limited to, accounts receivable, letters of credit and the right to receive
      payment thereunder, chattel paper, tax refunds, insurance proceeds, Contract
      Rights, notes, drafts, instruments, documents, acceptances and all other debts,
      obligations and liabilities in whatever form from any Person and guaranties,
      security and Liens securing payment thereof, (b) goods, whether now owned or
      hereafter acquired, and whether sold, delivered, undelivered, in transit or
      returned, which may be represented by, or the sale or lease of which may have
      given rise to, any such right to payment or other debt, obligation or liability,
      and (c) cash and non-cash proceeds of any of the foregoing. 

     

    “Registration
      Rights Agreement”
means
      the registration rights agreement between Lender and Freedom Financial Group,
      Inc. of even date herewith, substantially in the form of Exhibit
      D-2
      to this
      Agreement.

     

    “Related
      Company”
means,
      as to any Person, any (a) corporation which is a member of the same controlled
      group of corporations (within the meaning of Section 414(b) of the Code) as
      such
      Person, (b) partnership or other trade or business (whether or not incorporated)
      under common control (within the meaning of Section 414(c) of the Code) with
      such Person, or (c) member of the same affiliated service group (within the
      meaning of Section 414(m) of the Code) as such Person or any corporation
      described in clause
      (a)
      above or
      any partnership, trade or business described in clause
      (b)
      above.

     

    “Restricted
      Distribution”
by
      any
      Person means (a) its retirement, redemption, purchase, or other acquisition
      for
      value of any capital stock or other equity securities or partnership interests
      issued by such Person, (b) the declaration or payment of any dividend or
      distribution on or with respect to any such securities or partnership interests,
      (c) any loan or advance by such Person to, or other investment by such Person
      in, the holder of any of such securities or partnership interests, and (d)
      any
      other payment by such Person in respect of such securities or partnership
      interests.

     

    “Restricted
      Payment”
means
      (a) any redemption, repurchase or prepayment or other retirement, prior to
      the
      stated maturity thereof or prior to the due date of any regularly scheduled
      installment or amortization payment with respect thereto, of any Indebtedness
      of
      a Person (other than the Secured Obligations and trade debt), and (b) the
      payment by any Person of the principal amount of or interest on any Indebtedness
      (other than trade debt) owing to an Affiliate of such Person.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    “Revolving
      Credit Loan”
means
      collectively the revolving loans made to the Borrower pursuant to Section
      2.1.

     

    “Revolving
      Credit Note”
means
      a
      Revolving Credit Note made by the Borrower payable to the order of the Lender
      executed of even date herewith evidencing the obligation of the Borrower to
      pay
      the aggregate unpaid principal amount of all Advances made to it by the Lender
      and all interest accrued thereon (and any promissory note or notes that may
      be
      issued from time to time in substitution, renewal, extension, replacement or
      exchange therefor, whether payable to the Lender or a different lender, whether
      issued in connection with a Person becoming a lender after the Effective Date
      or
      otherwise), substantially in the form of Exhibit
      A hereto,
      with all blanks properly completed.

     

    “Schedule
      of Installment Contracts”
means
      a
      schedule delivered by the Borrower to the Lender pursuant to the provisions
      of
Section
      8.12,
      attached
      hereto and incorporated herein as Schedule
      5.1(a)(ix).

     

    “Secured
      Obligations”
means,
      in each case whether now in existence or hereafter arising, (a) the principal
      of
      and interest and premium, if any, on the Loan, and (b) all indebtedness,
      liabilities, obligations, overdrafts, covenants and duties of the Borrower
      to
      the Lender of every kind, nature and description, direct or indirect, absolute
      or contingent, due or not due, contractual or tortious, liquidated or
      unliquidated, and whether or not evidenced by any note and whether or not for
      the payment of money under or in respect of this Agreement, the Note or any
      of
      the other Loan Documents.

     

    “Security
      Documents”
means
      the Stock Pledge Agreement and any Financing Statements or other writing
      executed and delivered by any Person securing the Secured Obligations or
      evidencing such security.

     

    “Security
      Interest”
means
      the Liens of the Lender on and in the Collateral affected hereby or by any
      of
      the Security Documents or pursuant to the terms hereof or thereof.

     

    “Shares”
means
      shares of common stock of the Borrower issuable upon exercise of the
      Warrant.

     

    “Stock
      Pledge Agreement”
means
      the agreement of Freedom Financial Group, Inc., pledging, as collateral for
      the
      Secured Obligations, all of the shares of stock of TCG.

     

    “Subordinated
      Indebtedness”
means
      any Indebtedness for Money Borrowed of the Borrower which is subordinated to
      the
      Secured Obligations on terms and conditions acceptable to the Lender in its
      sole
      discretion.

     

    “Subsidiary”
or
      “Subsidiaries”
when
      used to determine the relationship of a Person to another Person, means a Person
      of which an aggregate of 50% or more of the stock of any class or classes or
      50%
      or more of other ownership interests is owned of record or beneficially by such
      other Person or by one or more Subsidiaries of such other Person or by such
      other Person and one or more Subsidiaries of such Person, (i) if the holders
      of
      such stock or other ownership interests (A) are ordinarily, in the absence
      of
      contingencies, entitled to vote for the election of a majority of the directors
      (or other individuals performing similar functions) of such Person, even though
      the right so to vote has been suspended by the happening of such a contingency,
      or (B) are entitled, as such holders, to vote for the election of a majority
      of
      the directors (or individuals performing similar functions) of such Person,
      whether or not the right so to vote exists by reason of the happening of a
      contingency, or (ii) in the case of such other ownership interests, if such
      ownership interests constitute a majority voting interest.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Termination
      Date”
means
      the date when the balance of the Revolving Credit Loan is payable, and such
      date
      shall be one (1) year from the Agreement Date.

     

    “UCC”
means
      the Uniform Commercial Code as in effect from time to time in the State of
      Missouri.

     

    “Warrant”
means
      those certain Warrants, dated of even date herewith, executed by the Borrower
      in
      favor of Lender whereby Lender is entitled to subscribe for and purchase Shares
      from the Borrower at a specific price within a certain time frame, substantially
      in the form contained in Exhibit
      D-1 to
      this
      Agreement, with all blanks properly completed.

     

    Section
      1.2  Other
      Referential Provisions.

     

    (a) All
      terms
      in this Agreement, the Exhibits and Schedules hereto shall have the same defined
      meanings when used in any other Loan Documents, unless the context shall require
      otherwise.

     

    (b) Except
      as
      otherwise expressly provided herein, all accounting terms not specifically
      defined or specified herein shall have the meanings generally attributed to
      such
      terms under GAAP including, without limitation, applicable statements and
      interpretations issued by the Financial Accounting Standards Board and
      bulletins, opinions, interpretations and statements issued by the American
      Institute of Certified Public Accountants or its committees.

     

    (c) All
      personal pronouns used in this Agreement, whether used in the masculine,
      feminine or neuter gender, shall include all other genders; the singular shall
      include the plural, and the plural shall include the singular.

     

    (d) The
      words
“hereof’, “herein” and “hereunder” and words of similar import when used in this
      Agreement shall refer to this Agreement as a whole and not to any particular
      provisions of this Agreement.

     

    (e) Titles
      of
      Articles and Sections in this Agreement are for convenience only, do not
      constitute part of this Agreement and neither limit nor amplify the provisions
      of this Agreement, and all references in this Agreement to Articles, Sections,
      Subsections, paragraphs, clauses, subclauses, Schedules or Exhibits shall refer
      to the corresponding Article, Section, Subsection, paragraph, clause or
      subclause of, or Schedule or Exhibit attached to, this Agreement, unless
      specific reference is made to the articles, sections or other subdivisions
      or
      divisions of, or to schedules or exhibits to, another document or
      instrument.

     

    (f) Each
      definition of a document in this Agreement shall include such document as
      amended, modified, supplemented or restated from time to time in accordance
      with
      the terms of this Agreement.

     

    (g) Except
      where specifically restricted, reference to a party to a Loan Document includes
      that party and its successors and assigns permitted hereunder or under such
      Loan
      Document.

     

    (h) Unless
      otherwise specifically stated, whenever a time is referred to in this Agreement
      or in any other Loan Document, such time shall be the local time in the city
      in
      which the principal office of Lender is located.

     

    Section
      1.3  Exhibits
      and Schedules.
      All
      Exhibits and Schedules attached hereto are by reference made a part
      hereof.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      2 - REVOLVING CREDIT FACILITY

     

    Section
      2.1  Revolving
      Credit Loan. Upon
      the
      terms and subject to the conditions of, and in reliance upon the representations
      and warranties made under this Agreement, the Lender shall make a Revolving
      Credit Loan to the Borrower from time to time from the Effective Date to the
      date one year after the Effective Date, as requested by the Borrower in
      accordance with the terms of Section
      2.2,
      in an
      aggregate principal amount outstanding not to exceed at any time the Borrowing
      Base. It is expressly understood and agreed that the Lender may and at present
      intends to use the Borrowing Base as a maximum ceiling on the Loan; provided,
      however,
      that it
      is agreed that should Loan exceed the ceiling so determined or any other
      limitation set forth in this Agreement, such Loan shall nevertheless constitute
      Secured Obligations and, as such, shall be entitled to all benefits thereof
      and
      security therefor. The Lender is hereby authorized to record each repayment
      of
      principal of the Loan in its books and records, such books and records
      constituting prima facie
      evidence
      of the accuracy of the information contained therein.

     

    Section
      2.2  Manner
      of Borrowing.
      Borrowing
      of the Loan shall be made as follows:

     

    a.  Requests
      for Borrowing.

     

    i.  If
      the
      Borrower requests an Advance by notifying the Lender, before 12:00 noon (Central
      time) on a Business Day, of its intention to borrow and the amount of the
      proposed Advance, such Advance will be made on the same Business Day. If the
      Borrower requests an Advance by notifying Lender, after 12:00 noon (Central
      time) on a Business Day, of its intention to borrow and the amount of the
      proposed Advance, such Advance will be made on the next Business Day;
      and

     

    ii.  Lender
      agrees to make Advances to Borrower from the date of this Agreement to the
      Termination Date, provided the aggregate amount of such Advances does not exceed
      the Borrowing Base. Such Advances shall be made upon the date specified in
      the
      Notice of Borrowing. This is a revolving line of credit providing for cash
      advances. During the availability period, the Borrower may repay principal
      amounts and reborrow them.

     

    b.  Notice
      of Borrowing.
      Any
      request for an Advance under Section
      2.2(a.i)
      (a
      “Notice
      of Borrowing”)
      shall
      be made by telephone or in writing (including telecopy) and, in the case of
      any
      telephonic notice, shall be immediately followed by a written confirmation
      thereof in a form acceptable to the Lender, provided
      that the
      failure to provide written confirmation shall not invalidate any telephonic
      notice and, if such written confirmation differs in any respect from the action
      taken by the Lender, the records of the Lender shall control absent manifest
      error.

     

    c.  Disbursement
      of Loan.
      The
      Borrower hereby irrevocably authorizes the Lender to disburse the proceeds
      of
      each borrowing requested, or deemed to be requested, pursuant to this
Section
      2.2 as
      follows: the proceeds of each borrowing requested under Section
      2.2 shall
      be
      disbursed by the Lender in lawful money of the United States of America in
      immediately available funds, (A) in the case of the Initial Advance, in
      accordance with the terms of the written instructions from the Borrower to
      the
      Lender, and (B) in the case of each subsequent Advance, by credit to such
      deposit account of Borrower maintained by Lender. Each Advance shall be
      conclusively deemed to have been made at the request of and for the benefit
      of
      Borrower (1) when credited to any deposit account of Borrower maintained with
      Lender or (2) when advanced in accordance with the instructions of an authorized
      person. Lender, at its option, may set a cutoff time, after which all requests
      for Advances will be treated as having been requested on the next succeeding
      Business Day.

     

    
      
        
        

      

      
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    Section
      2.3  Repayment.

     

    a.  The
      interest and principal shall all be due and payable in accordance with the
      following: 

     

    i.  Commencing
      on the first day of the first month after the Initial Advance, and on the first
      day of each month thereafter to and including the first day of August 1, 2007,
      the Borrower shall pay to the Lender monthly installments of interest at the
      rate of interest as set forth in Article
      3.

     

    ii.  On
      the
      first anniversary of the Agreement Date, the Borrower shall pay to the Lender
      a
      final installment of principal and interest in an amount equal to the sum of
      the
      then outstanding principal balance of the Loan together with accrued and unpaid
      interest thereon.

     

    b.  If
      at any
      time the aggregate principal amount of the outstanding Advances shall exceed
      the
      Borrowing Base, Borrower, immediately upon written or oral notice from Lender,
      shall pay to Lender an amount equal to the difference between the outstanding
      principal balance of the Advances and the Borrowing Base. Failure of Borrower
      to
      pay to Lender such amount in excess of the Borrowing Base within five (5) days
      of notice from Lender shall constitute an Event of Default hereunder.

     

    Section
      2.4  Note.The
      Loan
      and the obligation of the Borrower to repay such Loan shall also be evidenced
      by
      a single Revolving Credit Note payable to the order of the Lender. Such Note
      shall be dated the Effective Date and be duly and validly executed and delivered
      by the Borrower.

     

    Section
      2.5  Voluntary
      Prepayment. The
      Borrower shall have the right at any time and from time to time, to prepay
      the
      Loan in whole or in part on any Business Day. On the prepayment date, the
      Borrower shall pay interest on the amount prepaid accrued to the prepayment
      date. Any amounts prepaid may be re-borrowed pursuant to the terms and
      conditions hereof.

     

    Section
      2.6  Mandatory
      Prepayment of Principal and Reduction of Revolving Credit Loan. In
      the
      event of the merger or consolidation of TCG, or the sale by TCG of all or any
      portion of its Installment Loans outside of the ordinary course of business,
      and
      after compliance with Section 11.7 of this Agreement, the amount of one-third
      (1/3) of the net sales proceeds arising from such transaction shall be
      immediately applied to the reduction of the principal balance outstanding under
      the Note, up to a maximum aggregate reduction of $1,000,000.00 and the maximum
      amount of the Revolving Credit Loan shall be permanetly reducted by such
      amount.

     

    ARTICLE
      3 - GENERAL LOAN PROVISIONS

     

    Section
      3.1  Interest.

     

    a.  The
      Borrower will pay interest on the unpaid principal amount of each Advance for
      each day from the day such Advance was made until such Loan is paid (whether
      at
      maturity, by reason of acceleration or otherwise), at a rate per annum equal
      to
      the sum of three percent (3.00%) plus the Base Rate, payable monthly in arrears
      on each Interest Payment Date and when such Revolving Credit Loan is due in
      full
      (whether at maturity or on the Termination Date, by reason of acceleration,
      or
      otherwise).

     

    b.  The
      Borrower shall pay interest on the unpaid principal amount of each Secured
      Obligation other than a Loan for each day from the day such Secured Obligation
      becomes due and payable until such Secured Obligation is paid at (i) the rate
      specified with respect to such Secured Obligation in any documentation
      applicable thereto, or (ii) if no such rate is specified, the Base Rate plus
      three percent (3%) per annum.

     

    
      
        
        

      

      
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    c.  From
      and
      after the occurrence of an Event of Default, the unpaid principal amount of
      each
      Secured Obligation shall bear interest until paid in full (or, if earlier,
      until
      such Event of Default is cured or waived in writing by the Lender) at a rate
      per
      annum equal to the Default Margin plus the rate otherwise in effect under
Section
      3.1 (a)
      or
(b),
      payable
      on demand. The interest rate provided for in this Section
      3.1(c)
      shall to
      the extent permitted by applicable law apply to and accrue on the amount of
      any
      judgment entered with respect to any Secured Obligation and shall continue
      to
      accrue at such rate during any proceeding described in Section
      12.1(h)
      or (i).

     

    d.  The
      interest rates provided for in Sections
      3.1(a), (b) and
      (c)
      shall be
      computed on the basis of a year of 360 days and the actual number of days
      elapsed.

     

    e.  It
      is not
      intended by the Lender, and nothing contained in this Agreement or the Note
      shall be deemed, to establish or require the payment of a rate of interest
      in
      excess of the maximum rate permitted by applicable law (the “Maximum
      Rate”).
      If,
      in any month, the Effective Interest Rate, absent such limitation, would have
      exceeded the Maximum Rate, then the Effective Interest Rate for that month
      shall
      be the Maximum Rate, and if, in future months, the Effective Interest Rate
      would
      otherwise be less than the Maximum Rate, then the Effective Interest Rate shall
      remain at the Maximum Rate until such time as the amount of interest paid
      hereunder equals the amount of interest which would have been paid if the same
      had not been limited by the Maximum Rate. In this connection, in the event
      that,
      upon payment in full of the Secured Obligations, the total amount of interest
      paid or accrued under the terms of this Agreement is less than the total amount
      of interest which would have been paid or accrued if the Effective Interest
      Rate
      had at all times been in effect, then the Borrower shall, to the extent
      permitted by applicable law, pay to the Lender an amount equal to the difference
      between (i) the lesser of (A) the amount of interest which would have been
      charged if the Maximum Rate had, at all times, been in effect and (B) the amount
      of interest which would have accrued had the Effective Interest Rate, at all
      times, been in effect, and (ii) the amount of interest actually paid or accrued
      under this Agreement. In the event the Lender receives, collects or applies
      as
      interest any sum in excess of the Maximum Rate, such excess amount shall be
      applied to the reduction of the principal balance of the applicable Secured
      Obligation, and, if no such principal is then outstanding, such excess or part
      thereof remaining shall be paid to the Borrower.

     

    Section
      3.2  Fees.
      The
      Borrower has paid to the Lender a closing fee in an amount equal to Thirty
      Thousand Dollars ($30,000) in connection with the establishment of the Loan
      and
      in consideration of making the Loan under this Agreement and in order to
      compensate Lender for the costs associated with structuring, processing,
      approving and closing the Loan, but excluding expenses for with the Borrower
      has
      agreed elsewhere in this Agreement to reimburse Lender. The fee shall be fully
      earned by the Lender when received and, except as otherwise set forth herein,
      shall not be subject to refund or rebate. All fees are for compensation for
      services and are not, and shall not be deemed to be, interest or a charge for
      the use of money.

     

    Section
      3.3  Manner
      of Payment.

     

    a.  Each
      payment (including prepayments) by the Borrower on account of the principal
      of
      or interest on the Loan or of any fee or other amounts payable to the Lender
      under this Agreement or the Note shall be made not later than 12:00 p.m. on
      the
      date specified for payment under this Agreement (or if such day is not a
      Business Day, the next succeeding Business Day) to the Lender at the Lender’s
      Office, in Dollars, in immediately available funds and shall be made without
      any
      setoff, counterclaim or deduction whatsoever.

     

    b.  The
      Borrower hereby irrevocably authorizes the Lender to charge any account of
      the
      Borrower maintained with the Lender with such amounts as may be necessary from
      time to time to pay any Secured Obligations which are not paid when
      due.

     

    
      
        
        

      

      
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    Section
      3.4  Statements
      of Account.
      The
      Lender may account to the Borrower within 30 days after the end of each calendar
      month with a statement of the Loan, charges and payments made pursuant to this
      Agreement during such calendar month, and such account rendered by the Lender
      shall be deemed an account stated as between the Borrower and the Lender and
      shall be deemed final, binding and conclusive unless the Lender is notified
      by
      the Borrower in writing to the contrary within thirty (30) days after the date
      such account is delivered to the Borrower, save for manifest error. Any such
      notice shall be deemed an objection only to those items specifically objected
      to
      therein. Failure of the Lender to render such account shall in no way affect
      its
      rights hereunder.

     

    Section
      3.5  Termination
      of Agreement.
      On the
      Termination Date, the Borrower shall pay to the Lender, in same day funds,
      an
      amount equal to the aggregate amount of all Advances outstanding on such date,
      together with accrued interest thereon, all fees payable pursuant to
Section
      3.2
      accrued
      from the date last paid through the effective date of termination, any amounts
      payable to the Lender pursuant to the other provisions of this Agreement, and
      any and all other Secured Obligations then outstanding.

     

    ARTICLE
      4 - WARRANTS

     

    Section
      4.1  Warrants.The
      Borrower shall authorize the issuance and sale to the Lender of one or more
      of
      its Warrants, substantially in the form contained in Exhibit
      D-1 to
      this
      Agreement, to purchase an aggregate of up to Five Hundred Thousand (500,000)
      of
      the Borrower’s Shares pursuant to the Warrant.

     

    ARTICLE
      5 - CONDITIONS PRECEDENT

     

    Section
      5.1  Conditions
      Precedent to Initial Advance.
      Notwithstanding any other provision of this Agreement, the Lender’s obligation
      to make the Initial Advance is subject to the fulfillment of each of the
      following conditions prior to or contemporaneously with the making of such
      Loan:

     

    a.  Closing
      Documents.
      The
      Lender shall have received each of the following documents, all of which shall
      be satisfactory in form and substance to the Lender and its
      counsel:

     

    i.  this
      Agreement, duly executed and delivered by the Borrower;

     

    ii.  the
      Note,
      dated the Effective Date and duly executed and delivered by the
      Borrower;

     

    iii.  the
      Warrant, the Registration Rights Agreement and the Pledge Agreement, each dated
      the Effective Date and duly executed and delivered by the Borrower;

     

    iv.  certified
      copies of the articles of incorporation and by-laws of each Borrower, as in
      effect on the Effective Date;

     

    v.  certified
      copies of all action, including stockholders, if necessary, taken by each
      Borrower to authorize the execution, delivery and performance of this Agreement
      and the other Loan Documents and the borrowings under this
      Agreement;

     

    vi.  certificates
      of incumbency and specimen signatures with respect to each of the officers
      or
      directors of each Borrower who is authorized to execute and deliver this
      Agreement or any other Loan Document on behalf of the Borrower or any document,
      certificate or instrument to be delivered in connection with this Agreement
      or
      the other Loan Documents and to request borrowings under this
      Agreement;

     

    
      
        
        

      

      
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    vii.  a
      certificate evidencing the good standing of each Borrower in the jurisdiction
      of
      its organization and in each other jurisdiction in which it is qualified as
      a
      foreign corporation to transact business;

     

    viii.  the
      Financing Statements duly executed and delivered by the Borrower, and evidence
      satisfactory to the Lender that the Financing Statements have been filed in
      each
      jurisdiction where such filing may be necessary or appropriate to perfect the
      Security Interest;

     

    ix.  a
      Schedule of Eligible Installment Contracts, prepared as of a recent
      date;

     

    x.  certificates
      or binders of insurance relating to each of the policies of insurance covering
      any of the Collateral together with loss payable clauses which comply with
      the
      terms of Section
      8.7;

     

    xi.  a
      Borrowing Base Certificate prepared as of the Effective Date duly executed
      and
      delivered by the chief financial officer of the Borrower;

     

    xii.  a
      Compliance Certificate prepared as of the Effective Date duly executed and
      delivered by the chief financial officer of the Borrower;

     

    xiii.  a
      letter
      from the Borrower to the Lender requesting the Initial Advance and specifying
      the method of disbursement;

     

    xiv.  copies
      of
      all the financial statements referred to in Section
      6.1(l)
      and
      meeting the requirements thereof;

     

    xv.  a
      certificate of the President of the respective Borrower stating that (a) all
      of
      the representations and warranties made or deemed to be made under this
      Agreement are true and correct as of the Effective Date, both with and without
      giving effect to the Loan to be made at such time and the application of the
      proceeds thereof, and (b) no Default or Event of Default exists;

     

    xvi.  UCC,
      tax
      lien and judgment searches against Borrower; 

     

    xvii.  Opinions
      of Borrower’s counsel satisfactory to Lender and Lender’s counsel;
      and

     

    xviii.  copies
      of
      each of the other Loan Documents duly executed by the parties thereto with
      evidence satisfactory to the Lender and its counsel of the due authorization,
      binding effect and enforceability of each such Loan Document on each such party
      and such other documents and instruments as the Lender may reasonably request.
      

     

    b.  Satisfactory
      Review of Financial Documents.
      The
      Lender shall have completed or received and reviewed to its reasonable
      satisfaction, in its sole discretion, the following: 

     

    i.  An
      on
      site due diligence review of the underwriting guidelines, systems, processes
      and
      procedures of Borrower in regard to its reporting requirements; 

     

    ii.  The
      most
      recent financial statements and SEC filings of Borrower, together with any
      other
      applicable financial information of Borrower that Lender may reasonably request;
      and

     

    iii.  Any
      requested audits of the Eligible Installment Contracts of Borrower.

     

    
      
        
        

      

      
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    c.  No
      Injunctions, Etc.
      Neither
      party has knowledge of any action, proceeding, investigation, regulation or
      legislation shall have been instituted, threatened or proposed before any court,
      governmental agency or legislative body to enjoin, restrain or prohibit or
      to
      obtain substantial damages in respect of or which is related to or arises out
      of
      this Agreement or the consummation of the transactions contemplated hereby
      or
      which, in the Lender’s sole discretion, would make it inadvisable to consummate
      the transactions contemplated by this Agreement.

     

    d.  Material
      Adverse Change.
      As of
      the Effective Date, there shall not have occurred any change which, in the
      Lender’s sole reasonable discretion, has had or may have a Materially Adverse
      Effect as compared to the condition of the Borrower presented by the most recent
      financial statements of the Borrower described in Section
      6.1(l).

     

    e.  Solvency.
      The
      Lender shall have received evidence satisfactory to it that, after giving effect
      to the Initial Advance (i) the Borrower has assets (excluding goodwill and
      other
      intangible assets not capable of valuation) having value, both at fair value
      and
      at present fair saleable value, greater than the amount of its liabilities,
      and
      (ii) the Borrower’s assets are sufficient in value to provide the Borrower with
      sufficient working capital to enable it to operate its business and to meet
      its
      obligations as they become due, and (iii) the Borrower has adequate capital
      to
      conduct the business in which it is and proposes to be engaged.

     

    f.  Release
      of Security Interests.
      The
      Lender shall have received evidence satisfactory to it of the release and
      termination of all Liens other than Permitted Liens.

     

    Section
      5.2  Each
      Advance.
      At the
      time of making of each Advance, including the Initial Advance:

     

    a.  all
      of
      the representations and warranties made or deemed to be made under this
      Agreement shall be true and correct at such time both with and without giving
      effect to the Loan to be made at such time and the application of the proceeds
      thereof, except that representations and warranties which, by their terms,
      are
      applicable only to the Effective Date shall be required to be true and correct
      only as of the Effective Date,

     

    b.  organizational
      actions of the Borrower referred to in Section
      6.1(a)
      shall
      remain in full force and effect and the incumbency of officers shall be as
      stated in the certificates of incumbency delivered pursuant to Section
      6.1(a)
      or as
      subsequently modified and reflected in a certificate of incumbency delivered
      to
      the Lender, and

     

    c.  the
      Lender may, without waiving either condition, consider the conditions specified
      in Section
      5.2(a)
      and (b)
      fulfilled
      and a representation by the Borrower to such effect made if no written notice
      to
      the contrary is received by the Lender from the Borrower prior to the making
      of
      the Loan then to be made.

     

    ARTICLE
      6 - REPRESENTATIONS AND WARRANTIES OF THE BORROWER

     

    Section
      6.1  Representations
      and Warranties.
      Borrower represents and warrants to the Lender as follows:

     

    a.  Organization;
      Power; Qualification.
      Each
      Borrower is duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its incorporation and/or organization, has the power
      and
      authority to own its properties and to carry on its business as now being and
      hereafter proposed to be conducted and is duly qualified and authorized to
      do
      business in each jurisdiction in which failure to be so qualified and authorized
      would have a Materially Adverse Effect.

     

    
      
        
        

      

      
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    b.  Subsidiaries
      and Ownership of the Borrower.
      The
      Borrower has no Subsidiaries, other than those disclosed to Lender. The
      outstanding stock of the Borrower has been duly and validly issued and is fully
      paid and nonassessable by Borrower.

     

    c.  Authorization
      of Agreement, Note, Loan Documents and Borrowing.
      Borrower has the right and power and has taken all necessary action to authorize
      it to execute, deliver and perform this Agreement and each of the other Loan
      Documents to which it is a party in accordance with their respective terms
      and
      to borrow hereunder. This Agreement and each of the other Loan Documents to
      which it is a party have been duly executed and delivered by the duly authorized
      officers or representatives of the Borrower and each is, or when executed and
      delivered in accordance with this Agreement will be, a legal, valid and binding
      obligation of the Borrower, enforceable in accordance with its
      terms.

     

    d.  Compliance
      of Agreement, Note, Loan Documents and Borrowing with Laws, Etc.
      The
      execution, delivery and performance of this Agreement and each of the other
      Loan
      Documents to which the Borrower is a party in accordance with their respective
      terms and the borrowings hereunder do not and will not, by the passage of time,
      the giving of notice or otherwise,

     

    i.  require
      any Governmental Approval or violate any applicable law relating to the Borrower
      or any of its Affiliates,

     

    ii.  conflict
      with, result in a breach of or constitute a default under (A) the articles
      of
      incorporation, or the by-laws of the Borrower, (B) any indenture, agreement
      or
      other instrument to which the Borrower is a party or by which any of its
      property may be bound or (C) any Governmental Approval relating to the Borrower,
      or,

     

    iii.  result
      in
      or require the creation or imposition of any Lien upon or with respect to any
      property now owned or hereafter acquired by the Borrower other than the Security
      Interest.

     

    e.  Compliance
      with Law; Governmental Approvals.
      The
      Borrower (i) has all Governmental Approvals, including permits relating to
      federal, state and local Environmental Laws, ordinances and regulations required
      by any applicable law for it to conduct its business, each of which is in full
      force and effect, is final and not subject to review on appeal and is not the
      subject of any pending or threatened attack by direct or collateral proceeding,
      and (ii) is in compliance with each Governmental Approval applicable to it
      and
      is in material compliance with all other applicable laws and government
      regulations relating to it, including, without being limited to, all
      Environmental Laws and all occupational health and safety laws applicable to
      the
      Borrower or its properties, except for instances of noncompliance which would
      not, singly or in the aggregate, cause a Default or Event of Default or have
      a
      Materially Adverse Effect and in respect of which adequate reserves have been
      established on the books of the Borrower.

     

    f.  Titles
      to Properties.
      Borrower has good and marketable title to or a valid leasehold interest in
      all
      its real estate and valid and legal title to or a valid leasehold interest
      in
      all personal property and assets used in or necessary to the conduct of the
      Borrower’s business, including, but not limited to, those reflected on the
      balance sheet of the Borrower delivered pursuant to Section
      6.1.

     

    g.  Liens.
      None of
      the properties and assets of the Borrower are subject to any Lien, except
      Permitted Liens and as set forth on Schedule 6.1(g). Other than the Financing
      Statements, no financing statement under the Uniform Commercial Code of any
      state which names the Borrower as debtor and which has not been terminated
      has
      been filed in any state or other jurisdiction, and the Borrower has not signed
      any such financing statement or any security agreement authorizing any secured
      party thereunder to file any such financing statement, except to perfect
      Permitted Liens.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    h.  Indebtedness
      and Guaranties.
      Set
      forth on Schedule
      6.1(h)
      is a
      complete and correct listing of all of the Borrower’s (i) Indebtedness for Money
      Borrowed and (ii) Guaranties as of the Agreement Date. The Borrower is not
      in
      default of any material provision of any agreement evidencing or relating to
      such any such Indebtedness or Guaranty.

     

    i.  Litigation.
      There
      are no actions, suits or proceedings pending (nor to the knowledge of Borrower
      are there any actions, suits or proceedings threatened, nor is there any basis
      therefor) against or in any other way relating adversely to or affecting the
      Borrower or any of its property in any court or before any arbitrator of any
      kind or before or by any governmental body, which would reasonably give rise
      to
      a Material Adverse Effect.

     

    j.  Tax
      Returns and Payments.
      All
      United States federal, state and local and foreign national, provincial and
      local and all other tax returns of the Borrower required by applicable law
      to be
      filed have been duly filed, and all United States federal, state and local
      and
      foreign national, provincial and local and all other taxes, assessments and
      other governmental charges or levies upon the Borrower and its property, income,
      profits and assets which are due and payable have been paid, except any such
      nonpayment which is at the time permitted under Section
      9.4.
      The
      charges, accruals and reserves on the books of the Borrower in respect of United
      States federal, state and local taxes and foreign national, provincial and
      local
      taxes for all fiscal years and portions thereof since the organization of the
      Borrower are in the judgment of the Borrower adequate, and the Borrower knows
      of
      no reason to anticipate any additional assessments for any of such years which,
      singly or in the aggregate, might have a Materially Adverse Effect.

     

    k.  Burdensome
      Provisions.
      The
      Borrower is not a party to any indenture, agreement, lease or other instrument,
      or subject to any charter or corporate restriction, Governmental Approval or
      applicable law, compliance with the terms of which would reasonably be expected
      have a Materially Adverse Effect.

     

    l.  Financial
      Statements.
      Borrower has furnished to the Lender a copy of its most recent quarterly balance
      sheet, and the related statements of income, cash flow and retained earnings
      for
      the period then ended. Such financial statements are complete and correct and
      present fairly and are in compliance with all government regulations that apply,
      the financial position of the Borrower as at the dates thereof and the results
      of operations of Borrower for the periods then ended. Except as disclosed or
      reflected in such financial statements or the notes thereto, Borrower had no
      material liabilities, contingent or otherwise, and there were no material
      unrealized or anticipated losses Borrower.

     

    m.  Adverse
      Change.
      Since
      the date of the financial statements described in Section
      6.1(l),
      (i) no
      change in the business, assets, liabilities, condition (financial or otherwise),
      results of operations or business prospects of the Borrower has occurred that
      has had, or may have, a Materially Adverse Effect, and (ii) no event has
      occurred or failed to occur which has had, or may have, a Materially Adverse
      Effect.

     

    n.  ERISA.
      Neither
      the Borrower nor any Related Company maintains or contributes to any Benefit
      Plan. No material liability to the PBGC or to a Multiemployer Plan has been,
      or
      is expected by the Borrower to be, incurred by the Borrower or any Related
      Company.

     

    o.  Absence
      of Defaults.
      The
      Borrower is not in default under its articles of incorporation or by-laws,
      and
      no event has occurred which has not been remedied, cured or waived (i) that
      constitutes a Default or an Event of Default or (ii) that constitutes or that,
      with the passage of time or giving of notice, or both, would constitute a
      default or event of default by the Borrower under any material agreement (other
      than this Agreement) or judgment, decree or order to which the Borrower is
      a
      party or by which the Borrower or any of its properties may be bound or which
      would require the Borrower to make any payment thereunder prior to the scheduled
      maturity date therefor.

     

    
      
        
        

      

      
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    p.  Accuracy
      and Completeness of Information.
      All
      written information, reports and other papers and data produced by or on behalf
      of the Borrower and furnished to the Lender were, at the time the same were
      so
      furnished, complete and correct in all material respects to the extent necessary
      to give the recipient a true and accurate knowledge of the subject matter,
      no
      fact is known to the Borrower which has had, or may in the future have (so
      far
      as the Borrower can foresee), a Materially Adverse Effect which has not been
      set
      forth in the financial statements or disclosure delivered prior to the Effective
      Date, in each case referred to in Section
      6.1(l),
      or in
      such written information, reports or other papers or data or otherwise disclosed
      in writing to the Lender prior to the Effective Date. No document furnished
      or
      written statement made to the Lender by the Borrower in connection with the
      negotiation, preparation or execution of this Agreement or any of the Loan
      Documents contains or will contain any untrue statement of a fact material
      to
      the creditworthiness of the Borrower or omits or will omit to state a material
      fact necessary in order to make the statements contained therein not
      misleading.

     

    q.  Solvency.
      In each
      case after giving effect to the Indebtedness represented by the Loan outstanding
      and to be incurred and the transactions contemplated by this Agreement, the
      Borrower on a consolidated basis is solvent, having assets of a fair market
      value which exceeds the amount required to pay its debts (including contingent,
      subordinated, unmatured and unliquidated liabilities) as they become absolute
      and matured, and the Borrower is able to and anticipates that it will be able
      to
      meet its debts as they mature and has adequate capital to conduct the business
      in which it is or proposes to be engaged.

     

    r.  Status
      of Eligible Installment Contracts.
      Each
      Eligible Installment Contract reflected in the computations included in any
      Borrowing Base Certificate meets the criteria enumerated in the definition
      of
      Eligible Installment Contract, except as disclosed in such Borrowing Base
      Certificate or as disclosed in a timely manner in a subsequent Borrowing Base
      Certificate or otherwise in writing to the Lender.

     

    s.  Chief
      Executive Office.
      The
      chief executive office of the Borrower and the books and records relating to
      the
      Collateral are located at the address or addresses submitted to the
      Lender.

     

    t.  Corporate
      and Fictitious Names; Trade Names.
      During
      the one-year period preceding the Agreement Date, the Borrower has not been
      known as or used any corporate or fictitious name other than the corporate
      name
      of the Borrower on the Effective Date and such additional authorized fictitious
      names as listed on Schedule
      6.1(t)
      hereof
      (each such listed name is a “DBA”).

     

    u.  Federal
      Regulations.
      The
      Borrower is not engaged, principally or as one of its important activities,
      in
      the business of extending credit for the purpose of “purchasing” or “carrying”
any “margin stock” (as each of the quoted terms is defined or used in
      Regulations U or X of the Board of Governors of the Federal Reserve
      System).

     

    v.  Investment
      Company Act.
      The
      Borrower is not an “investment company” or a company “controlled” by an
“investment company” (as each of the quoted terms is defined or used in the
      Investment Company Act of 1940, as amended).

     

    w.  Employee
      Relations.
      The
      Borrower is not party to any collective bargaining agreement nor has any labor
      union been recognized as the representative of the Borrower’s employees; the
      Borrower knows of no pending, threatened or contemplated strikes, work stoppage
      or other labor disputes involving its employees or those of its
      Subsidiaries.

     

    x.  Shares;
      Warrants.
      A
      description of the capital structure of Borrower, including, the total number
      and classes of shares authorized, issued and outstanding in each such class,
      a
      description of any and all stock options, and a description of any and all
      warrants convertible into common stock of Borrower are set forth on Schedule
      6.1(x)
      attached
      hereto, which schedule contains the names of the parties to which stock options
      and warrants have been issued, as well as the amounts of any and all such
      options and warrants and the date of any registration rights agreement with
      any
      of the holders of stock options or warrants. The Lender expressly acknowledges
      that FFG is currently in the process of converting certain preferred stock
      into
      common stock as set forth in Schedule
      6.1(x),
      and
      that any rights under the Warrant are expressly contemplated to arise and relate
      to the capitalization of FFG following such conversion. There are no claims,
      liens or encumbrances presently existing or outstanding with respect to the
      Shares. 

     

    
      
        
        

      

      
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    y.  Intellectual
      Property.
      The
      Borrower owns or possesses all Intellectual Property required to conduct its
      business as now and presently planned to be conducted without, to its knowledge,
      conflict with the rights of others.

     

    Section
      6.2  Survival
      of Representations and Warranties, Etc..
      All
      representations and warranties set forth in this Article
      6
      and all
      statements contained in any certificate, financial statement or other instrument
      delivered by or on behalf of the Borrower pursuant to or in connection with
      this
      Agreement or any of the Loan Documents (including, but not limited to, any
      such
      representation, warranty or statement made in or in connection with any
      amendment thereto) shall constitute representations and warranties made under
      this Agreement. All representations and warranties made under this Agreement
      shall be made or deemed to be made at and as of the Agreement Date, at and
      as of
      the Effective Date and at and as of the date of each Advance, except that
      representations and warranties which, by their terms are applicable only to
      one
      such date shall be deemed to be made only at and as of such date. All
      representations and warranties made or deemed to be made under this Agreement
      shall survive and not be waived by the execution and delivery of this Agreement,
      any investigation made by or on behalf of the Lender or any borrowing
      hereunder.

     

    ARTICLE
      7 - SECURITY INTEREST

     

    Section
      7.1  Security
      Interest.

     

    a.  To
      secure
      the payment, observance and performance of the Secured Obligations, Borrower
      hereby mortgages, pledges and assigns all of the Collateral to the Lender and
      grants to the Lender a continuing security interest in, and a continuing Lien
      upon, all of the Collateral.

     

    b.  As
      additional security for all of the Secured Obligations, the Borrower grants
      a
      security interest in, and assigns to the Lender all of the Borrower’s right,
      title and interest in and to, any deposits or other sums at any time credited
      by
      or due from the Lender to the Borrower.

     

    c.  As
      additional security for all of the Secured Obligations, a pledge of the stock
      of
      TCG is executed by the shareholder thereof, as evidenced by the Stock Pledge
      Agreement and the corresponding Irrevocable Stock Powers.

     

    Section
      7.2  Continued
      Priority of Security Interest.

     

    a.  The
      Security Interest granted by the Borrower shall at all times be valid, perfected
      and enforceable against the Borrower and all third parties in accordance with
      the terms of this Agreement, as security for the Secured Obligations, and the
      Collateral shall not at any time be subject to any Liens that are prior to,
      on a
      parity with or junior to the Security Interest, other than Permitted
      Liens.

     

    b.  The
      Borrower shall, at its sole cost and expense, take all action that may be
      necessary or desirable, or that the Lender may request, so as at all times
      to
      maintain the validity, perfection, enforceability and rank of the Security
      Interest in the Collateral in conformity with the requirements of Section
      7.2(a)
      or
      to
      enable the Lender to exercise or enforce its rights hereunder, including, but
      not limited to: (i) delivering to the Lender the portfolio of Installment
      Contracts pledged as Collateral in order for Lender to hold and act as the
      custodian of the same, (iii) delivering to the Lender, endorsed or accompanied
      by such instruments of assignment as the Lender may specify, and stamping or
      marking in such manner as the Lender may specify, any and all chattel paper,
      instruments, letters and advices of guaranty and documents evidencing or forming
      a part of the Collateral, and (iv) executing and delivering financing
      statements, pledges, designations, hypothecations, notices and assignments,
      in
      each case in form and substance satisfactory to the Lender, relating to the
      creation, validity, perfection, maintenance or continuation of the Security
      Interest under the UCC or other applicable law.

     

    
      
        
        

      

      
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    c.  The
      Lender is hereby authorized to hold the portfolio of Eligible Installment
      Contracts pledged as Collateral and act as the custodian of the same, pursuant
      to a Custodial Agreement of even date herewith.

     

    d.  The
      Lender is hereby authorized to file one or more financing or continuation
      statements or amendments thereto in the name of the Borrower and without the
      signature of Borrower for any purpose described in Section
      7.2(b).
      A
      carbon, photographic or other reproduction of this Agreement or of any of the
      Security Documents or of any financing statement filed in connection with this
      Agreement is sufficient as a financing statement, to the extent permitted by
      applicable law.

     

    e.  The
      Borrower shall mark its books and records as may be necessary or appropriate
      to
      evidence, protect and perfect the Security Interest and shall cause its
      financial statements to reflect the Security Interest.

     

    ARTICLE
      8 - COLLATERAL COVENANTS

     

    Until
      the
      Loan has been terminated and all the Secured Obligations have been indefeasibly
      paid in full, unless the Lender shall otherwise consent in the manner provided
      in Section
      13.10:

     

    Section
      8.1  Collection
      of Receivables and Installment Contracts.

     

    a.  The
      Borrower will cause all moneys, checks, notes, drafts and other payments
      relating to or constituting proceeds of Receivables and Installment Contracts,
      or of any other Collateral, to be forwarded to a lockbox for deposit in an
      account at Lender’s, or its agent’s, place of business, or use a mutually agreed
      procedure for collection of such proceeds, all in accordance with the procedures
      set out in the corresponding agency account agreement, and in particular the
      Borrower will (i) advise each Account Debtor to address all remittances with
      respect to amounts payable on account of any Installment Contracts or Receivable
      to a specified lockbox, if any, and (ii) stamp all invoices relating to any
      such
      amounts with a legend satisfactory to the Lender indicating that payment is
      to
      be made to the Borrower via the specified lockbox, if any. 

     

    b.  Any
      moneys, checks, notes, drafts or other payments referred to in clause
      (a)
      of this
Section
      8.1 which
      are
      received by or on behalf of the Borrower will be held in trust for the Lender
      and will be delivered to the Lender at the Lender’s Office as promptly as
      possible in the exact form received, together with any necessary
      endorsements.

     

    Section
      8.2  Verification
      and Notification.
      The
      Lender shall have the right following an Event of Default:

     

    a.  at
      any
      time and from time to time, in the name of the Lender or in the name of the
      Borrower, to verify the validity, amount or any other matter relating to any
      Installment Contract or Receivable by mail, telephone, telegraph or otherwise,
      and

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      b. to
        notify
        the Account Debtors or obligors under any Installment Contract or Receivable
        of
        the assignment of such Installment Contract or Receivable to the Lender and
        to
        direct such Account Debtor or obligors to make payment of all amounts due
        or to
        become due thereunder directly to the Lender and, upon such notification
        and at
        the expense of the Borrower, to enforce collection of any such Installment
        Contract or Receivable and to adjust, settle or compromise the amount or
        payment
        thereof, in the same manner and to the same extent as the Borrower might
        have
        done.

       

      Section
        8.3 Disputes
        and Adjustments. 

       

      a. On
        a
        monthly basis, at the same time as Borrower delivers the Borrowing Base
        Certificate, Borrower shall deliver a report detailing the delinquency, charge
        off and collection activity on the Eligible Installment Contracts for the
        preceding calendar month.

       

      b. The
        Borrower may, in the ordinary course of business and prior to a Default or
        an
        Event of Default, (i) grant any extension of time for payment of any Installment
        Contract or Receivable, (ii) sell any Installment Contract, or (iii) compromise,
        compound or settle any Installment Contract or Receivable for less than the
        full
        amount thereof or release wholly or partly any Person liable for the payment
        thereof or allow any credit or discount whatsoever thereon.

       

      Section
        8.4 Underwriting
        Guidelines.The
        Borrower will not materially change its underwriting guidelines, systems,
        processes or procedures without receiving the written approval of
        Lender.

       

      Section
        8.5 Operating
        Account.
        Borrower shall maintain its primary operating account with Lender, and such
        operating account must be opened by Borrower within thirty (30) days after
        the
        Effective Date. All payments hereunder are to be debited by Lender from such
        operating account.

       

      Section
        8.6 Ownership
        and Defense of Title.

       

      a. Except
        for Permitted Liens, the Borrower shall at all times be the sole owner of
        each
        and every item of Collateral and shall not create any Lien on, or sell, lease,
        exchange, assign, transfer, pledge, hypothecate, grant a security interest
        or
        security title in or otherwise dispose of, any of the Collateral or any interest
        therein, except for cash or on open account or on terms of payment ordinarily
        extended to its customers and except as otherwise expressly contemplated
        herein.
        The inclusion of “proceeds” of the Collateral under the Security Interest shall
        not be deemed a consent by the Lender to any other sale or other disposition
        of
        any part or all of the Collateral.

       

      b. The
        Borrower shall defend its title in and to the Collateral and shall defend
        the
        Security Interest and priority thereof in the Collateral against the claims
        and
        demands of all Persons other than Lender.

       

      c. In
        addition to, and not in derogation of, the foregoing and the requirements
        of any
        of the Security Documents, the Borrower shall (i) protect and preserve all
        properties material to its business, including Intellectual Property and
        maintain all tangible property in good and workable condition in all material
        respects, with reasonable allowance for wear and tear, and (ii) from time
        to
        time make or cause to be made all needed and appropriate repairs, renewals,
        replacements and additions to such properties necessary for the conduct of
        its
        business, so that the business carried on in connection therewith may be
        properly and advantageously conducted at all times.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      Section
        8.7 Insurance. 

       

      a. The
        Borrower shall, consistent with standard industry practice, at all times
        maintain insurance on the Collateral, if applicable, against loss or damage
        by
        fire, theft, burglary, pilferage, loss in transit and such other hazards
        as the
        Lender shall reasonably specify, in amounts and under policies issued by
        insurers acceptable to the Lender. All premiums on such insurance shall be
        paid
        by the Borrower and copies of the policies delivered to the Lender. The Borrower
        will not use or authorize the insured Collateral to be used in violation
        of any
        applicable law or in any manner which might render inapplicable any insurance
        coverage. Notwithstanding the foregoing, Borrower shall not be required to
        maintain insurance on any motor vehicle or other collateral securing the
        Installment Contracts.

       

      b. All
        insurance policies required under Section
        8.7
        shall
        name the Lender as an additional named insured and shall contain “New York
        standard” loss payable clauses in the form submitted to the Borrower by the
        Lender, or otherwise in form and substance satisfactory to the Lender, naming
        the Lender as loss payee as its interests may appear, and providing that
        (i) all
        proceeds thereunder shall be payable to the Lender, (ii) no such insurance
        shall
        be affected by any act or neglect of the insured or owner of the property
        described in such policy, and (iii) such policy and loss payable clauses
        may not
        be cancelled, amended or terminated unless at least thirty (30) days’ prior
        written notice is given to the Lender.

       

      c. Any
        proceeds of insurance referred to in this Section
        8.7 which
        are
        paid to the Lender shall be, at the option of the Lender in its sole discretion
        applied to the payment or prepayment of the Secured Obligations or delivered
        to
        the Borrower.

       

      d. The
        Borrower shall at all times maintain, in addition to the insurance required
        by
Section
        8.7(a)
        or any
        of the Security Documents, insurance with responsible insurance companies
        against such risks and in such amounts as is customarily maintained by similar
        businesses or as may be required by applicable law, including such public
        liability, products liability, third party property damage and business
        interruption insurance as is consistent with reasonable business practices,
        and
        from time to time deliver to the Lender upon its request a detailed list
        of the
        insurance then in effect, stating the names of the insurance companies, the
        amounts and rates of the insurance, the dates of the expiration thereof and
        the
        properties and risks covered thereby.

       

      Section
        8.8 Location
        of Offices and Collateral. 

       

      a. The
        Borrower will not change the location of its chief executive office or the
        place
        where it keeps its books and records relating to the Collateral or change
        its
        name, identity or corporate structure without giving the Lender thirty (30)
        days’ prior written notice thereof.

       

      b. All
        Equipment, other than motor vehicles, will at all times be kept by the Borrower
        at the current locations of Borrower, and shall not, without the prior written
        consent of the Lender, be removed therefrom, excepting computers and other
        Equipment that typically have been kept and used outside of Borrower’s current
        locations. 

       

      Section
        8.9 Records
        Relating to Collateral.
        The
        Borrower will at all times (i) keep complete and accurate records of Receivables
        and Installment Contracts on a basis consistent with past practices of the
        Borrower, itemizing and describing the kind, type, amount and collateral
        of such
        Receivable and Installment Contracts, and (ii) keep complete and accurate
        records of all other Collateral.

       

      Section
        8.10 Inspection
        and Audit.
        The
        Lender (by any of its officers, employees or agents) shall have the right
        at any
        time or times to (a) visit the properties of the Borrower, inspect and audit
        the
        Collateral and the other assets of the Borrower and its Subsidiaries and
        inspect
        and make extracts from the books and records of the Borrower and its
        Subsidiaries, including, but not limited to, management letters prepared
        by
        independent accountants, all during customary business hours at such premises,
        (b) discuss the Borrower’s business, assets, liabilities, financial condition,
        results of operations and business prospects, insofar as the same are reasonably
        related to the rights of the Lender hereunder or under any of the Loan
        Documents, with the Borrower’s and its Subsidiaries’ (i) principal officers, and
        (ii) independent accountants and other professionals providing services to
        the
        Borrower, and (c) verify the amount, quantity, value and condition of, or
        any
        other matter relating to, any of the Collateral and in this connection to
        review, audit and make extracts from all records and files related to any
        of the
        Collateral. The Borrower will deliver to the Lender any instrument necessary
        to
        authorize an independent accountant or other professional to have discussions
        of
        the type outlined above with the Lender or for the Lender to obtain records
        from
        any service bureau maintaining records on behalf of the Borrower. The costs
        and
        expenses of the foregoing audits shall be paid by Borrower.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      Section
        8.11 Maintenance
        of Equipment.The
        Borrower shall maintain all physical property that constitutes Equipment
        in good
        and workable condition in all material respects, with reasonable allowance
        for
        wear and tear, and shall exercise proper custody over all such
        property.

       

      Section
        8.12 Information
        and Reports.

       

      a. Schedule
        of Installment Contracts.
        The
        Borrower shall deliver to the Lender (i) on or before the Effective Date,
        a
        Schedule of Installment Contracts as of a date not more than three (3) Business
        Days prior to the Effective Date setting forth a detailed list of all of
        its
        then existing Installment Contracts, specifying the name of and the balance
        due
        from each Account Debtor obligated on an Installment Contract so listed,
        and
        (ii) no later than ten (10) days after the end of each accounting month of
        the Borrower, a Schedule of Installment Contracts as of the last Business
        Day of
        the Borrower’s immediately preceding accounting month setting forth (A) a
        detailed list of all the Borrower’s then existing Installment Contracts,
        specifying the name of and the balance due from each Account Debtor obligated
        on
        an Installment Contract so listed and (B) a reconciliation to the Schedule
        of
        Installment Contracts delivered in respect of the next preceding accounting
        month.

       

      b. Borrowing
        Base Certificate.
        The
        Borrower shall deliver to the Lender not later than three (3) Business
        Days after the last day of each accounting month of Borrower a Borrowing
        Base
        Certificate prepared as of the close of business on the last Business Day
        of
        such accounting month.

       

      c. Compliance
        Certificate.
        The
        Borrower shall deliver to the Lender not later than fifteen
        (15) calendar days after the last day of each accounting month of Borrower
        a Compliance Certificate prepared as of the close of business on the last
        Business Day of such accounting month.

       

      d. Certification.
        Each of
        the schedules delivered to the Lender pursuant to this Section
        8.12 shall
        be
        certified by the Chief Financial Officer of the Borrower to be true, correct
        and
        complete as of the date indicated thereon.

       

      e. Other
        Information.
        The
        Lender may, in its discretion, from time to time require the Borrower to
        deliver
        the schedules described in Section
        8.12 (a), (b), (c) and (d) more
        or
        less often and on different schedules than specified in such Section, and
        the
        Borrower will comply with such reasonable requests. The Borrower shall also
        furnish to the Lender such other information with respect to the Collateral
        as
        the Lender may from time to time reasonably request.

       

      Section
        8.13 Power
        of Attorney.
        The
        Borrower hereby appoints the Lender as its attorney, with power, during a
        continuation of an Event of Default (a) to endorse the name of the Borrower
        on
        any checks, notes, acceptances, money orders, drafts or other forms of payment
        or security that may come into the Lender’s possession, and (b) to sign the name
        of the Borrower on any invoice or bill of lading relating to any Collateral,
        on
        any drafts against customers related to letters of credit, on schedules and
        assignments of Installment Contracts furnished to the Lender by the Borrower,
        on
        notices of assignment, financing statements and other public records relating
        to
        the perfection or priority of the Security Interest or verifications of account
        and on notices to or from customers.

       

      
        
          
          

        

        
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      ARTICLE
        9 - AFFIRMATIVE COVENANTS

       

      Until
        the
        Loan has been terminated and all the Secured Obligations have been indefeasibly
        paid in full, unless the Lender shall otherwise consent in the manner provided
        for in
        Section 13.10,
        each
        Borrower will:

       

      Section
        9.1 Preservation
        of Existence and Similar Matters.
        Preserve
        and maintain its existence as a corporation, and its rights, franchises,
        licenses and privileges in the jurisdiction of its incorporation and qualify
        and
        remain qualified as a foreign business entity and authorized to do business
        in
        each jurisdiction in which the character of its properties or the nature
        of its
        business requires such qualification or authorization.

       

      Section
        9.2 Compliance
        with Applicable Law.
        Comply
        with all applicable laws relating to the Borrower.

       

      Section
        9.3 Conduct
        of Business.
        Engage
        only in businesses in substantially the same fields as the businesses conducted
        on the Effective Date.

       

      Section
        9.4 Payment
        of Taxes and Claims.
        Pay or
        discharge when due (a) all taxes, assessments and governmental charges or
        levies
        imposed upon it or upon its income or profits or upon any properties belonging
        to it, and (b) all lawful claims of materialmen, mechanics, carriers,
        warehousemen and landlords for labor, materials, supplies and rentals which,
        if
        unpaid, might become a Lien on any properties of the Borrower or such
        Subsidiary, except that this Section
        9.4 shall
        not
        require the payment or discharge of any such tax, assessment, charge, levy
        or
        claim which is being contested in good faith by appropriate proceedings and
        for
        which adequate reserves have been established on the appropriate
        books.

       

      Section
        9.5 Accounting
        Methods and Financial Records. Maintain
        a system of accounting, and keep such books, records and accounts (which
        shall
        be true and complete), as may be required or as may be necessary to permit
        the
        preparation of financial statements in accordance with GAAP consistently
        applied, or as required by applicable government regulations.

       

      Section
        9.6 Use
        of
        Proceeds.
        a. Use
        the
        proceeds of all Advances only for working capital and general corporate and
        operating purposes, and

       

      b. Not
        use
        any part of such proceeds to purchase or carry, or to reduce or retire or
        refinance any credit incurred to purchase or carry, any margin stock (within
        the
        meaning of Regulation U or X of the Board of Governors of the Federal Reserve
        System) or for any other purpose which would involve a violation of such
        Regulation U or X or of such Board of Governors or for any other purpose
        prohibited by law or by the terms and conditions of this Agreement.

       

      Section
        9.7 Hazardous
        Waste and Substances; Environmental Requirements. In
        addition to, and not in derogation of, the requirements of Section
        9.2
        and of
        the Security Documents, (i) comply with all laws, governmental standards
        and
        regulations applicable to the Borrower or to any of its assets in respect
        of
        occupational health and safety laws, rules and regulations and Environmental
        Laws, (ii) promptly notify the Lender of its receipt of any notice of a
        violation of any such law, rule, standard or regulation, and (iii) indemnify
        and
        hold the Lender harmless from all loss, cost, damage, liability, claim and
        expense incurred by or imposed upon the Lender on account of the Borrower’s
        failure to perform its obligations under this
        Section 9.7.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      Section
        9.8 Revisions
        or Updates to Schedules.
        Should
        any of the information or disclosures provided on any of the Schedules
        originally attached hereto become outdated or incorrect in any material respect,
        the Borrower shall provide promptly to the Lender such revisions or updates
        to
        such Schedule(s) as may be necessary or appropriate to update or correct
        such
        Schedule(s); provided
        that no
        such revisions or updates to any Schedule(s) shall be deemed to have cured
        any
        breach of warranty or representation resulting from the inaccuracy or
        incompleteness of any such Schedule(s) unless and until the Lender, in its
        sole
        discretion, shall have accepted in writing such revisions or updates to such
        Schedule(s).

       

      Section
        9.9 Accuracy
        of Information. All
        written information, reports, statements and other papers and data furnished
        to
        the Lender, whether pursuant to Article
        10
        or any
        other provision of this Agreement or any of the other Loan Documents, shall
        be,
        at the time the same is so furnished, complete and correct in all material
        respects to the extent necessary to give the Lender true and accurate knowledge
        of the subject matter.

       

      ARTICLE
        10 - INFORMATION

       

      Until
        the
        Loan has been terminated and all the Secured Obligations have been indefeasibly
        paid in full, unless the Lender shall otherwise consent in the manner set
        forth
        in
        Section 13.10,
        each
        Borrower will furnish to the Lender at the Lender’s Office:

       

      SECTION
        10.1 Financial
        Statements.

       

      a. Year-End
        Statements.
        As soon
        as available, but in any event within ninety (90) days after the end of each
        fiscal year of Borrower, copies of the Securities and Exchange Commission
        (“SEC”)
        10-KSB
        Report of Borrower.

       

      b. Quarterly
        Statements.
        As soon
        as available, but in any event within forty-five days after the end of each
        of
        the first three quarters of each fiscal year of Borrower, the SEC 10-QSB
        Report
        of Borrower.

       

      c. Other.
        Upon
        request of Lender, such other financial information of Borrower, whether
        public
        or private information, as Lender may reasonable request.

       

      d. Federal
        Income Tax Returns.
        As soon
        as available, but in any event within ten (10) days after filing, the federal
        income tax returns for the preceding fiscal year of Borrower (including all
        Schedules to each return). 

       

      All
        such
        financial statements and documents delivered pursuant to this Section
        10.1 shall
        be
        complete and correct in all material respects and all such financial statements
        referred to in this Section
        10.1 shall
        be
        prepared in accordance with applicable federal regulations. In addition,
        the
        Borrower authorizes the Lender to discuss the financial condition of the
        Borrower with the Borrower’s independent certified public accountants and agrees
        that such discussion or communication shall be without liability to either
        the
        Lender or the Borrower’s independent certified public accountants.

       

      Section
        10.2 Officer’s
        Certificate.
        Together
        with each delivery of financial statements included within the report required
        by Section
        10.1,
        a
        certificate of the Borrower’s President or chief financial officer addressed to
        Lender, (a) stating that, based on an examination sufficient to enable him
        to
        make an informed statement, no Default or Event of Default exists or, if
        such is
        not the case, specifying such Default or Event of Default and its nature,
        when
        it occurred, whether it is continuing and the steps being taken by the Borrower
        with respect to such Default or Event of Default, and (b) setting forth the
        calculations necessary to establish whether or not the Borrower was in
        compliance with the covenants contained in Section
        11.1, Section 11.2, and Section 11.5 as
        of the
        date of such statements.

       

      
        
          
          

        

        
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      Section
        10.3 Copies
        of Other Reports.

       

      a. Promptly
        upon receipt thereof, copies of all reports, if any, submitted to the Borrower
        or its Board of Directors by its independent public accountants, including,
        without limitation, all management reports.

       

      b. Promptly
        upon preparation and filing of the same, copies of any other filings with
        the
        SEC. 

       

      c. From
        time
        to time and promptly upon each request, such forecasts, data, certificates,
        reports, statements, opinions of counsel, documents or further information
        regarding the business, assets, liabilities, financial condition, results
        of
        operations or business prospects of the Borrower as the Lender may reasonably
        request. The rights of the Lender under this Section
        10.3 are
        in
        addition to and not in derogation of its rights under any other provision
        of
        this Agreement or the Loan Document.

       

      Section
        10.4 Notice
        of Litigation and Other Matters.
        Prompt
        notice of:

       

      a. the
        commencement, to the extent the Borrower is aware of the same, of all
        proceedings and investigations by or before any governmental or nongovernmental
        body and all actions and proceedings in any court or before any arbitrator
        against the Borrower or any of its property, assets or businesses which might,
        singly or in the aggregate, cause a Default or an Event of Default or have
        a
        Materially Adverse Effect,

       

      b. any
        amendment of the articles of incorporation or the by-laws of the
        Borrower,

       

      c. any
        change in the business, assets, liabilities, financial condition, results
        of
        operations or business prospects of the Borrower or any Affiliate of the
        Borrower which has had or may reasonably be expected to have any Materially
        Adverse Effect and any change in the executive officers of the Borrower,
        and

       

      d. any
        (i)
        Default or Event of Default, or (ii) event that constitutes or that, with
        the
        passage of time or giving of notice or both, would constitute a default or
        event
        of default by the Borrower under any material agreement (other than this
        Agreement) to which the Borrower is a party or by which the Borrower or any
        of
        its property may be bound if the exercise of remedies thereunder by the other
        party to such agreement would have, either individually or in the aggregate,
        a
        Materially Adverse Effect.

       

      Section
        10.5 ERISA.As
        soon
        as possible and in any event within 30 days after the Borrower knows, or
        has
        reason to know, that:

       

      a. any
        Termination Event with respect to a Benefit Plan has occurred or will occur,
        or

       

      b. the
        aggregate present value of the Unfunded Vested Accrued Benefits under all
        Benefits Plans or Multiemployer Plans has increased to an amount in excess
        of
        $50,000, a
        certificate of the President or the chief financial officer of the Borrower
        setting forth the details of such of the events described in clauses
        (a)
        through
(b)
        as
        applicable and the action which is proposed to be taken with respect thereto
        and, simultaneously with the filing thereof, copies of any notice or filing
        which may be required by the PBGC or other agency of the United States
        government with respect to such of the events described in clauses
        (a) through
        (b)
        as
        applicable.

       

      
        
          
          

        

        
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      ARTICLE
        11 - NEGATIVE COVENANTS

       

      Until
        the
        Loan has been terminated and all the Secured Obligations have been indefeasibly
        paid in full, unless the Lender shall otherwise consent in the manner set
        forth
        in
        Section 13.10,
        the
        Borrower will not directly or indirectly:

       

      Section
        11.1 Financial
        Ratio.
        Permit,
        as of the end of each fiscal quarter of Borrower the minimum Net Worth of
        Borrower at any time to be less than Ten Million Dollars
        $10,000,000.

       

      Section
        11.2 Indebtedness.
        Create,
        assume, or otherwise become or remain obligated in respect of, or permit
        or
        suffer to exist or to be created, assumed or incurred or to be outstanding
        any
        Indebtedness for Money Borrowed, except for Permitted Indebtedness and for
        the
        Secured Obligations.

       

      Section
        11.3 Guaranties.
        Become
        or remain liable with respect to any Guaranty of any obligation of any other
        Person.

       

      Section
        11.4 Investments,
        Subsidiary.
        Acquire, after the Agreement Date, any Business Unit or Investment or, after
        such date, permit any Investment to be outstanding, other than Permitted
        Investments, or transfer any assets to or contribute any capital into Freedom
        Financial Group Delaware, Inc., a Missouri corporation.

       

      Section
        11.5 Capital
        Expenditures.
        Make or
        incur any Capital Expenditures, except that the Borrower may make or incur
        Capital Expenditures in any fiscal year in an amount not to exceed, in the
        aggregate, $75,000.

       

      Section
        11.6 Restricted
        Distributions and Payments, Etc.
        Declare
        or make any Restricted Distribution or Restricted Payment, except
        for any
        distribution or payment to Mr. Jerry Fenstermaker arising from his disability
        pursuant to that certain Employment Agreement dated September 17,
        2004.

       

      Section
        11.7 Merger,
        Consolidation and Sale of Assets.
        Merge
        or consolidate with any other Person or sell, lease or transfer or otherwise
        dispose of all, or any portion of its assets (other than in the ordinary
        course
        of business), to any Person, without obtaining the Lender’s written consent
        prior to such merger, consolidation, sale, lease, transfer or other disposal
        and
        complying with Section 2.6 of this Agreement.

       

      Section
        11.8 Transactions
        with Affiliates.
        Effect
        any transaction with any Affiliate on a basis less favorable to the Borrower
        than would be the case if such transaction had been effected with a Person
        not
        an Affiliate.

       

      Section
        11.9 Liens.
        Create,
        assume or permit or suffer to exist or to be created or assumed any Lien
        on any
        of the property or assets of the Borrower, real, personal or mixed, tangible
        or
        intangible, except for Permitted Liens.

       

      Section
        11.10 Operating
        Leases.
        Enter
        into any lease other than a Capitalized Lease and an occupancy lease for
        its
        ordinary corporate office purposes.

       

      Section
        11.11 Benefit
        Plans.
        Permit,
        or take any action which would result in, the aggregate present value of
        the
        Unfunded Vested Accrued Benefits under all Benefit Plans of the Borrower
        to
        exceed $50,000.

       

      Section
        11.12 Sales
        and Leasebacks.
        Enter
        into any arrangement with any Person providing for the leasing from such
        Person
        of real or personal property which has been or is to be sold or transferred,
        directly or indirectly, by the Borrower to such Person.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      Section
        11.13 Amendments
        of Other Agreements.
        Amend
        in any way the interest rate or principal amount or schedule of payments
        of
        principal and interest with respect to any Indebtedness (other than the Secured
        Obligations) other than to reduce the interest rate or extend the schedule
        of
        payments with respect thereto.

       

      Section
        11.14 Split,
        Subdivision or Combination of Shares.
        Subdivide its outstanding Shares, by split-up or otherwise, or combine its
        outstanding Shares, or issue additional shares of its capital stock in payment
        of a stock dividend in respect of its Shares, without proportionately increasing
        the number of shares issuable upon the exercise of the Warrant, or
        proportionately decreasing the same in the case of a combination, provided
        the
        foregoing shall not apply until the conversion specified in Section
        6.1(x)
        has been
        completed.

       

      Section
        11.15 Warrants.
        Intentionally Deleted.

       

      Section
        11.16 Change
        Senior Management.
        Change
        the senior management of the Borrower existing as of the date of this Agreement,
        including without limitation Jerald L. Fenstermaker.

       

      ARTICLE
        12 - DEFAULT

       

      Section
        12.1 Events
        of Default.
        Each of
        the following shall constitute an Event of Default, whatever the reason for
        such
        event and whether it shall be voluntary or involuntary or be effected by
        operation of law or pursuant to any judgment or order of any court or any
        order,
        rule or regulation of any governmental or nongovernmental body:

       

      a. Default
        in Payment of Loan.
        The
        Borrower shall default in any payment of principal of, or interest on, the
        Loan
        or Note when and as due (whether at maturity, by reason of acceleration or
        otherwise), and such default shall continue for five (5) Business Days after
        the
        due date.

       

      b. Other
        Payment Default.
        The
        Borrower shall default in the payment, as and when due, of principal of or
        interest on, any other Secured Obligation, and such default shall continue
        for
        five (5) Business Days after the due date.

       

      c. Warrant
        Default.
        A
        default in the performance or observance of any term, covenant, condition
        or
        agreement contained in the Warrant or Registration Rights Agreement and the
        expiration of any applicable cure period.

       

      d. Misrepresentation.
        Any
        representation or warranty made or deemed to be made by the Borrower under
        this
        Agreement or any other Loan Document or any amendment hereto or thereto shall
        at
        any time prove to have been incorrect or misleading in any material respect
        when
        made.

       

      e. Default
        in Performance.
        The
        Borrower shall default (i) in the performance or observance of any term,
        covenant, condition or agreement contained in Articles
        6, 7, 8, 9, 10
        or
11;
        or (ii)
        in the performance or observance of any term, covenant, condition or agreement
        contained in any other provision of this Agreement (other than as specifically
        provided for otherwise in this
        Section 12.1)
        and
        such default shall continue for a period of 30 days after written notice
        thereof
        has been given to the Borrower by the Lender.

       

      f. Indebtedness
        Cross-Default.
        (i) The
        Borrower shall fail to pay when due and payable (and the expiration of any
        applicable cure period) the principal of or interest on any Indebtedness
        (other
        than the Loan or Note) where the principal amount of such Indebtedness is
        in
        excess of $25,000, or (ii) the maturity of any such Indebtedness shall have
        (A)
        been accelerated in accordance with the provisions of any indenture, contract
        or
        instrument providing for the creation of or concerning such Indebtedness,
        or (B)
        been required to be prepaid prior to the stated maturity thereof, or (iii)
        any
        event shall have occurred and be continuing which, with or without the passage
        of time or the giving of notice, or both, would permit any holder or holders
        of
        such Indebtedness, any trustee or agent acting on behalf of such holder or
        holders or any other Person so to accelerate such maturity.

       

      
        
          
          

        

        
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      g. Other
        Cross-Defaults.
        The
        Borrower shall default in the payment when due or in the performance or
        observance of any material obligation or condition of any agreement, contract
        or
        lease (other than the Security Documents or any such agreement, contract
        or
        lease relating to Indebtedness), (and the expiration of any applicable cure
        period) if the exercise of remedies thereunder by the other party to such
        agreement could have a Materially Adverse Effect.

       

      h. Voluntary
        Bankruptcy Proceeding.
        After
        the Agreement Date, either Borrower shall (i) commence a voluntary case under
        the federal bankruptcy laws (as now or hereafter in effect), (ii) commence
        a
        proceeding seeking to take advantage of any other laws, domestic or foreign,
        relating to bankruptcy, insolvency, reorganization, winding up or composition
        for adjustment of debts, (iii) consent to or fail to contest in a timely
        and
        appropriate manner any petition filed against it in an involuntary case under
        such bankruptcy laws or other laws, (iv) apply for or consent to, or fail
        to
        contest in a timely and appropriate manner, the appointment of, or the taking
        of
        possession by, a receiver, custodian, trustee or liquidator of itself or
        of a
        substantial part of its property, domestic or foreign, (v) admit in writing
        its
        inability to pay its debts as they become due, (vi) make a general assignment
        for the benefit of creditors, or (vii) take any corporate action for the
        purpose
        of authorizing any of the foregoing.

       

      i. Involuntary
        Bankruptcy Proceeding.
        After
        the Agreement Date, a case or other proceeding shall be commenced against
        any
        Borrower in any court of competent jurisdiction seeking (i) relief under
        the
        federal bankruptcy laws (as now or hereafter in effect) or under any other
        laws,
        domestic or foreign, relating to bankruptcy, insolvency, reorganization,
        winding
        up or adjustment of debts, or (ii) the appointment of a trustee, receiver,
        custodian, liquidator or the like of any Borrower or of all or any substantial
        part of the assets, domestic or foreign, of any Borrower, and such case or
        proceeding shall continue undismissed or unstayed for a period of 60 consecutive
        calendar days, or an order granting the relief requested in such case or
        proceeding against any Borrower (including, but not limited to, an order
        for
        relief under such federal bankruptcy laws) shall be entered.

       

      j. Loan
        Documents.
        Any
        event of Event of Default under any other Loan Document shall occur or any
        Borrower shall default in the performance or observance of any material term,
        covenant, condition or agreement contained in, or the payment of any other
        sum
        covenanted to be paid by any Borrower under, any such Loan Document; or any
        provision of this Agreement, or of any other Loan Document after delivery
        thereof hereunder, shall for any reason cease to be valid and binding, other
        than a nonmaterial provision rendered unenforceable by operation of law,
        or any
        Borrower or other party thereto (other than the Lender) shall so state in
        writing; or this Agreement or any other Loan Document, after delivery thereof
        hereunder, shall for any reason (other than any action taken independently
        by
        the Lender and except to the extent permitted by the terms thereof) cease
        to
        create a valid, perfected and, except as otherwise expressly permitted herein,
        first priority Lien on, or security interest in, any of the Collateral purported
        to be covered thereby.

       

      k. A
        judgment or order for the payment of money which exceeds $75,000 in amount
        shall
        be entered against any Borrower by any court and such judgment or order shall
        continue undischarged or unstayed for 30 days.

       

      l. Attachment.
        A
        warrant or writ of attachment or execution or similar process which exceeds
        $50,000 in value shall be issued against any property of any Obligor and
        such
        warrant or process shall continue undischarged or unstayed for 30
        days.

       

      
        
          
          

        

        
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      m. Qualified
        Audits.
        The
        independent certified public accountants retained by the Borrower shall refuse
        to deliver an opinion in accordance with Section
        10.1 with
        respect to the annual financial statements of the Borrower.

       

      n. Material
        Adverse Change.
        There
        occurs any act, omission, event, undertaking or circumstance or series of
        acts,
        omissions, events, undertakings or circumstances which have, or in the sole
        judgment of the Lender would be reasonably likely to have, either individually
        or in the aggregate, a Materially Adverse Effect.

       

      Section
        12.2 Remedies.

       

      a. Automatic
        Acceleration and Termination of Facilities.
        Upon
        the occurrence of an Event of Default specified in Section
        12.1(h) or (i), (i)
        the
        principal of and the interest on the Loan and the Note at the time outstanding,
        and all other amounts owed to the Lender under this Agreement or any of the
        Loan
        Documents and all other Secured Obligations, shall thereupon become due and
        payable without presentment, demand, protest or other notice of any kind,
        all of
        which are expressly waived, anything in this Agreement or any of the Loan
        Documents to the contrary notwithstanding, and (ii) the Revolving Credit
        Facility and the commitment of the Lender to make Advances thereunder or
        under
        this Agreement shall immediately terminate.

       

      b. Other
        Remedies.
        If any
        Event of Default (other than as specified in Section
        12.1(h) or (i))
        shall
        have occurred and be continuing, the Lender, in its sole and absolute
        discretion, may do any of the following:

       

      i. declare
        the principal of and interest on the Loan and the Note at the time outstanding,
        and all other amounts owed to the Lender under this Agreement or any of the
        Loan
        Documents and all other Secured Obligations, to be forthwith due and payable,
        whereupon the same shall immediately become due and payable without presentment,
        demand, protest or other notice of any kind, all of which are expressly waived,
        anything in this Agreement or the Loan Documents to the contrary
        notwithstanding; and

       

      ii. terminate
        Loan and any commitment of the Lender to make Advances hereunder.

       

      c. Further
        Remedies.
        If any
        Event of Default shall have occurred and be continuing, the Lender, in its
        sole
        and absolute discretion, may do any of the following:

       

      i. notify,
        or request the Borrower to notify, in writing or otherwise, any Account Debtor
        or obligor with respect to any one or more of the Receivables or Installment
        Contracts to make payment to the Lender or any agent or designee of the Lender,
        at such address as may be specified by the Lender, and, if, notwithstanding
        the
        giving of any notice, any Account Debtor or other such obligor shall make
        payments to the Borrower, the Borrower shall hold all such payments it receives
        in trust for the Lender, without commingling the same with other funds or
        property of, or held by, the Borrower and shall deliver the same to the Lender
        or any such agent or designee immediately upon receipt by the Borrower in
        the
        identical form received, together with any necessary endorsements;

       

      ii. settle
        or
        adjust disputes and claims directly with Account Debtors and other obligors
        on
        Receivables or Installment Contracts for amounts and on terms which the Lender
        considers advisable and in all such cases only the net amounts received by
        the
        Lender in payment of such amounts, after deductions of costs and attorneys’
fees, shall constitute Collateral, and the Borrower shall have no further
        right
        to make any such settlements or adjustments or to accept any returns of
        merchandise;

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      iii. enter
        upon any premises on which Inventory or Equipment may be located and, without
        resistance or interference by the Borrower, take physical possession of any
        or
        all thereof and maintain such possession on such premises or move the same
        or
        any part thereof to such other place or places as the Lender shall choose,
        without being liable to the Borrower on account of any loss, damage or
        depreciation that may occur as a result thereof, so long as the Lender shall
        act
        reasonably and in good faith;

       

      iv. require
        the Borrower to and the Borrower shall, without charge to the Lender, assemble
        the Inventory and Equipment and maintain or deliver it into the possession
        of
        the Lender or any agent or representative of the Lender at such place or
        places
        as the Lender may designate;

       

      v. at
        the
        expense of the Borrower, cause any of the Inventory and Equipment to be placed
        in a public or field warehouse, and the Lender shall not be liable to the
        Borrower on account of any loss, damage or depreciation that may occur as
        a
        result thereof, so long as the Lender shall act reasonably and in good
        faith;

       

      vi. without
        notice, demand or other process, and without payment of any rent or any other
        charge, enter any of the Borrower’s premises and, without breach of the peace,
        until the Lender completes the enforcement of its rights in the Collateral,
        take
        possession of such premises or place custodians in exclusive control thereof,
        remain on such premises and use the same and any of the Borrower’s equipment,
        for the purpose of (A) completing any work in process, preparing any Inventory
        for disposition and disposing thereof, and (B) collecting any Installment
        Contracts or other Receivable, and the Lender is hereby granted a license
        or
        sublicense and all other rights as may be necessary, appropriate or desirable
        to
        use the Intellectual Property in connection with the foregoing, and the rights
        of the Borrower under all licenses and franchise agreements shall inure to
        the
        Lender’s benefit (provided, however, that any use of any federally registered
        trademarks as to any goods shall be subject to the control as to the quality
        of
        such goods of the owner of such trademarks and the goodwill of the business
        symbolized thereby);

       

      vii. exercise
        any and all of its rights under any and all of the Security
        Documents;

       

      viii. apply
        any
        cash Collateral to the payment of the Secured Obligations in any order in
        which
        the Lender may elect or use such cash in connection with the exercise of
        any of
        its other rights hereunder or under any of the Security Documents;

       

      ix. establish
        or cause to be established one or more lockboxes or other arrangement for
        the
        deposit of proceeds of Installment Contracts or Receivables, and, in such
        case,
        the Borrower shall cause to be forwarded to the Lender at the Lender’s Office,
        on a daily basis, copies of all checks and other items of payment and deposit
        slips related thereto deposited in such lockboxes, together with collection
        reports in form and substance satisfactory to the Lender; and

       

      x. exercise
        all of the rights and remedies of a secured party under the UCC (whether
        or not
        the UCC is applicable) and under any other applicable law, including, without
        limitation, the right, without notice except as specified below and with
        or
        without taking the possession thereof, to sell the Collateral or any part
        thereof in one or more parcels at public or private sale, at any location
        chosen
        by the Lender, for cash, on credit or for future delivery and at such price
        or
        prices and upon such other terms as the Lender may deem commercially reasonable.
        The Borrower agrees that, to the extent notice of sale shall be required
        by law,
        at least ten (10) days’ notice to the Borrower of the time and place of any
        public sale or the time after which any private sale is to be made shall
        constitute reasonable notice, but notice given in any other reasonable manner
        or
        at any other reasonable time shall also constitute reasonable notification.
        The
        Lender shall not be obligated to make any sale of Collateral regardless of
        notice of sale having been given. The Lender may adjourn any public or private
        sale from time to time by announcement at the time and place fixed therefor,
        and
        such sale may, without further notice, be made at the time and place to which
        it
        was so adjourned.

       

      
        
          
          

        

        
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      Section
        12.3 Application
        of Proceeds.
        All
        proceeds from each sale of, or other realization upon, all or any part of
        the
        Collateral following an Event of Default shall be applied or paid over as
        follows:

       

      a. First:
        to the
        payment of all costs and expenses incurred in connection with such sale or
        other
        realization, including attorneys’ fees,

       

      b. Second:
        to the
        payment of the Secured Obligations (with the Borrower remaining liable for
        any
        deficiency) in any order which the Lender may elect, and

       

      c. Third:
        the
        balance (if any) of such proceeds shall be paid to the Borrower or, subject
        to
        any duty imposed by law or otherwise, to whomsoever is entitled
        thereto.

       

      The
        Borrower shall remain liable and will pay, on demand, any deficiency remaining
        in respect of the Secured Obligations, together with interest thereon at
        a rate
        per annum equal to the highest rate then payable hereunder on such Secured
        Obligations, which interest shall constitute part of the Secured
        Obligations.

       

      Section
        12.4 Power
        of Attorney.
        In
        addition to the authorizations granted to the Lender under Section
        8.13 or
        under
        any other provision of this Agreement or any of the Loan Documents, upon
        and
        after an Event of Default, the Borrower hereby irrevocably designates, makes,
        constitutes and appoints the Lender (and all Persons designated by the Lender
        from time to time) as the Borrower’s true and lawful attorney and agent in fact,
        and the Lender or any agent of the Lender may, without notice to the Borrower,
        and at such time or times as the Lender or any such agent in its sole discretion
        may determine, in the name of the Borrower or the Lender:

       

      a. demand
        payment of the Receivables and the Installment Contracts, enforce payment
        thereof by legal proceedings or otherwise, settle, adjust, compromise, extend
        or
        renew any or all of the Receivables and Installment Contracts or any legal
        proceedings brought to collect the Receivables and Installment Contracts,
        discharge and release the Receivables and Installment Contracts or any of
        them
        and exercise all of the Borrower’s rights and remedies with respect to the
        collection of Receivables and Installment Contracts,

       

      b. prepare,
        file and sign the name of the Borrower on any proof of claim in bankruptcy
        or
        any similar document against any Account Debtor or any notice of Lien,
        assignment or satisfaction of Lien or similar document in connection with
        any of
        the Collateral,

       

      c. endorse
        the name of the Borrower upon any chattel paper, document, instrument, notice,
        freight bill, bill of lading or similar document or agreement relating to
        the
        Receivables, the Inventory or any other Collateral,

       

      d. use
        the
        stationery of the Borrower, open the Borrower’s mail, notify the post office
        authorities to change the address for delivery of the Borrower’s mail to an
        address designated by the Lender and sign the name of the Borrower to
        verifications of the Receivables and on any notice to the Account
        Debtors,

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      e. use
        the
        information recorded on or contained in any data processing equipment and
        computer hardware and software relating to the Receivables, Installment
        Contracts, or other Collateral to which the Borrower or any Subsidiary of
        the
        Borrower has access.

       

      Section
        12.5 Miscellaneous
        Provisions Concerning Remedies.

       

      a. Rights
        Cumulative.
        The
        rights and remedies of the Lender under this Agreement, the Note and each
        of the
        Loan Documents shall be cumulative and not exclusive of any rights or remedies
        which it or they would otherwise have. In exercising such rights and remedies,
        the Lender may be selective and no failure or delay by the Lender in exercising
        any right shall operate as a waiver of such right nor shall any single or
        partial exercise of any power or right preclude its other or further exercise
        or
        the exercise of any other power or right.

       

      b. Waiver
        of Marshalling.
        The
        Borrower hereby waives any right to require any marshalling of assets and
        any
        similar right.

       

      c. Limitation
        of Liability.
        Nothing
        contained in this Article
        12
        or
        elsewhere in this Agreement or in any of the Loan Documents shall be construed
        as requiring or obligating the Lender or any agent or designee of the Lender
        to
        make any demand or to make any inquiry as to the nature or sufficiency of
        any
        payment received by it or to present or file any claim or notice or take
        any
        action with respect to any Receivable or any other Collateral or the moneys
        due
        or to become due thereunder or in connection therewith or to take any steps
        necessary to preserve any rights against prior parties, and neither the Lender
        nor any of its agents or designees shall have any liability to the Borrower
        for
        actions taken pursuant to this Article
        12,
        any
        other provision of this Agreement or any of the Loan Documents, so long as
        the
        Lender or such agent or designee shall act reasonably and in good
        faith.

       

      d. Appointment
        of Receiver.
        In any
        action under this Article
        12,
        the
        Lender shall be entitled to the appointment of a receiver, upon reasonable
        notice, to take possession of all or any portion of the Collateral and to
        exercise such power as the court shall confer upon such receiver.

       

      ARTICLE
        13 - MISCELLANEOUS 

       

      Section
        13.1 Notices.

       

      a. Method
        of Communication.
        Except
        as may be otherwise provided in this Agreement or in any of the Loan Documents,
        all notices, requests, demands, consents, instructions or other communications
        required or permitted to be given hereunder and thereunder to the parties
        shall
        be in writing and sent by facsimile transmission, mailed or delivered in
        person
        to each party at its facsimile number or address set forth below (or to such
        other facsimile number or address for any party as indicated in any notice
        given
        by that party to the other party). All such notices and communications shall
        be
        effective (i) when sent by a nationally recognized overnight courier service
        for
        next day delivery, one (1) Business Day following the deposit with such service;
        (ii) when mailed, first class postage prepaid, return receipt requested,
        and
        addressed as aforesaid through the United States Postal Service, upon receipt;
        (iii) when delivered by hand, upon delivery; and (iv) when sent by facsimile
        transmission, upon confirmation of receipt; provided, however, that in the
        case
        of notices to the Lender, the Lender shall be charged with knowledge of the
        contents thereof only when such notice is actually received by the Lender.
        

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      b. Addresses
        for Notices.
        Notices
        to any party shall be sent to it at the following addresses, or any other
        address of which all the other parties are notified in writing.

       

      
        	If
                to the Borrower:	 	
                Freedom
                  Financial Group, Inc. 

                T.C.G.
                  - The Credit Group Inc 

                Attention:
                  Jerald L. Fenstermaker

                3058
                  E. Elm St.

                Springfield,
                  MO 65802

                Telephone
                  No.: (417) 886-6600

                Facsimile
                  No.: (417) 841-1200

              
	 	 	 
	With
                a Copy to: 	 	
                Shughart
                  Thomson & Kilroy

                Attention:
                  Tom O’Neal

                901
                  St. Louis Avenue, Suite 1200

                Springfield,
                  MO 65806

                Telephone
                  No.: 417-869-3353

                Facsimile
                  No.: 417-869-9943

              
	 	 	 
	If
                to the Lender:	 	
                Heartland
                  Bank

                Attention:
                  President

                212
                  S. Central Avenue

                St.
                  Louis, Missouri 63105

                Telephone
                  No.: (314) 512-8500

                Facsimile
                  No.:  (314) 512-8501

              
	 	 	 
	With
                a Copy to: 	 	
                Carmody
                  MacDonald P.C.

                Attention:
                  Mark B. Hillis, Esq.

                120
                  S. Central Ave., Suite 1800

                St.
                  Louis, MO 63105

                Telephone
                  No.: 314-854-8600

                Facsimile
                  No.: 314-854-8660

              

      

       

      c. Lender’s
        Office.
        The
        Lender hereby designates its office located at 212 S. Central Avenue, St.
        Louis,
        Missouri 63105, or any subsequent office which shall have been specified
        for
        such purpose by written notice to the Borrower, as the office to which payments
        due are to be made and at which Loan will be disbursed.

      

      Section
        13.2 Expenses.
        The
        Borrower agrees to pay or reimburse on demand all reasonable costs and expenses
        incurred by the Lender, including, without limitation, the reasonable fees
        and
        disbursements of counsel, in connection with (a) the negotiation, preparation,
        execution, delivery, administration, enforcement and termination of this
        Agreement and each of the other Loan Documents, whenever the same shall be
        executed and delivered, including, without limitation, (i) the out-of-pocket
        costs and expenses incurred in connection with the administration and
        interpretation of this Agreement and the other Loan Documents, (ii) the costs
        and expenses of appraisals of the Collateral, (iii) the costs and expenses
        of
        lien searches, and (iv) taxes, fees and other charges of filing the Financing
        Statements and continuations and the costs and expenses of taking other actions
        to perfect, protect, and continue the Security Interest; (b) the preparation,
        execution and delivery of any waiver, amendment, supplement or consent by
        the
        Lender relating to this Agreement or any of the Loan Documents; (c) sums
        paid or
        obligations incurred in connection with the payment of any amount or taking
        any
        action required of the Borrower under the Loan Documents that the Borrower
        fails
        to pay or take; (d) if an Event of Default exists, costs of inspections and
        verifications of the Collateral, including, without limitation, standard
        per
        diem fees charged by the Lender for travel, lodging, and meals for inspections
        of the Collateral and the Borrower’s operations and books and records by the
        Lender’s agents; (e) costs and expenses of forwarding loan proceeds, collecting
        checks and other items of payment, and establishing and maintaining each
        primary
        operating account, agency account and lockbox; (f) costs and expenses of
        preserving and protecting the Collateral; (g) after the occurrence of an
        Event
        of Default, consulting with and obtaining opinions, field audits and appraisals
        from one or more Persons, including personal property appraisers, accountants
        and lawyers, concerning the value of any Collateral for the Secured Obligations
        or related to the nature, scope or value of any right or remedy of the Lender
        hereunder or under any of the Loan Documents, including any review of factual
        matters in connection therewith, which expenses shall include the fees and
        disbursements of such Persons; and (h) costs and expenses paid or incurred
        to
        obtain payment of the Secured Obligations, enforce the Security Interest,
        sell
        or otherwise realize upon the Collateral, and otherwise enforce the provisions
        of the Loan Documents, or to prosecute or defend any claim in any way arising
        out of, related to or connected with, this Agreement or any of the Loan
        Documents, which expenses shall include the reasonable fees and disbursements
        of
        counsel and of experts and other consultants retained by the Lender.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      The
        foregoing shall not be construed to limit any other provisions of the Loan
        Documents regarding costs and expenses to be paid by the Borrower. The Borrower
        hereby authorizes the Lender to debit the Borrower’s loan accounts (by
        increasing the principal amount of the Revolving Credit Loan) in the amount
        of
        any such costs and expenses owed by the Borrower when due.

       

      Section
        13.3 Stamp
        and Other Taxes.
        The
        Borrower will pay any and all stamp, registration, recordation and similar
        taxes, fees or charges and shall indemnify the Lender against any and all
        liabilities with respect to or resulting from any delay in the payment or
        omission to pay any such taxes, fees or charges, which may be payable or
        determined to be payable in connection with the execution, delivery, performance
        or enforcement of this Agreement and any of the Loan Documents or the perfection
        of any rights or security interest thereunder.

       

      Section
        13.4 Setoff.
        In
        addition to any rights now or hereafter granted under applicable law, and
        not by
        way of limitation of any such rights, upon and after the occurrence of any
        Event
        of Default, the Lender is hereby authorized by the Borrower at any time or
        from
        time to time, without notice to the Borrower, to set off and apply any and
        all
        deposits (time or demand, including, but not limited to, indebtedness evidenced
        by certificates of deposit, whether matured or unmatured) and any other
        indebtedness at any time held or owing by the Lender to or for the credit
        or the
        account of the Borrower against and on account of the Secured Obligations
        irrespective or whether or not (a) the Lender shall have made any demand
        under
        this Agreement or any of the Loan Documents, or (b) the Lender shall have
        declared any or all of the Secured Obligations to be due and payable as
        permitted by this Agreement and although such Secured Obligations shall be
        contingent or unmatured. 

       

      Section
        13.5 Litigation.
        EACH OF
        THE LENDER AND THE BORROWER HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY
        WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN
        ANY
        COURT IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST THE BORROWER OR THE
        LENDER ARISING OUT OF THIS AGREEMENT, THE COLLATERAL OR ANY ASSIGNMENT THEREOF
        OR BY REASON OF ANY OTHER CAUSE OR DISPUTE WHATSOEVER BETWEEN THE BORROWER
        AND
        THE LENDER OF ANY KIND OR NATURE. THE BORROWER AND THE LENDER HEREBY AGREE
        THAT
        THE FEDERAL COURT OF THE EASTERN DISTRICT OF MISSOURI OR, AT THE OPTION OF
        THE
        LENDER, ANY MISSOURI COURT IN WHICH THE LENDER SHALL INITIATE LEGAL OR EQUITABLE
        PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER IN
        CONTROVERSY SHALL HAVE NON-EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY
        CLAIMS OR DISPUTES BETWEEN THE BORROWER AND THE LENDER, PERTAINING DIRECTLY
        OR
        INDIRECTLY TO THIS AGREEMENT OR THE LOAN DOCUMENTS OR TO ANY MATTER ARISING
        THEREFROM. THE BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
        JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS, HEREBY
        WAIVING PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT OR OTHER PROCESS OR
        PAPERS
        ISSUED THEREIN AND AGREEING THAT SERVICE OF SUCH SUMMONS AND COMPLAINT OR
        OTHER
        PROCESS OR PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
        THE
        BORROWER AT THE ADDRESS SET FORTH IN SECTION
        13.1(b),
        WHICH
        SERVICE SHALL BE DEEMED MADE UPON RECEIPT THEREOF. THE NON-EXCLUSIVE CHOICE
        OF
        FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT
        OF ANY JUDGMENT OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER
        THIS
        AGREEMENT TO ENFORCE THE SAME IN ANY APPROPRIATE JURISDICTION.

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      Section
        13.6 Reversal
        of Payments.
        To the
        extent the Borrower makes a payment or payments to the Lender or the Lender
        receives any payment or proceeds of the Collateral for the Borrower’s benefit,
        which payment(s) or proceeds or any part thereof are subsequently invalidated,
        declared to be fraudulent or preferential, set aside and/or required to be
        repaid to a trustee, receiver or any other party under any bankruptcy law,
        state
        or federal law, common law or equitable cause, then, the Lender shall have
        the
        continuing and exclusive right to apply, reverse and re-apply any and all
        payments to any portion of the Secured Obligations, and, to the extent of
        such
        payment or proceeds received, the Secured Obligations or part thereof intended
        to be satisfied shall be revived and continued in full force and effect,
        as if
        such payment or proceeds had not been received by the Lender.

       

      Section
        13.7 Injunctive
        Relief.
        The
        Borrower recognizes that, in the event the Borrower fails to perform, observe
        or
        discharge any of its obligations or liabilities under this Agreement, any
        remedy
        of law may prove to be inadequate relief to the Lender; therefore, the Borrower
        agrees that the Lender, at the Lender’s option, shall be entitled to temporary
        and permanent injunctive relief in any such case in accordance with applicable
        law.

       

      Section
        13.8 Accounting
        Matters.
        All
        financial and accounting calculations, measurements and computations made
        for
        any purpose relating to this Agreement, including, without limitation, all
        computations utilized by the Borrower to determine whether it is in compliance
        with any covenant contained herein, shall, unless there is an express written
        direction or consent by the Lender to the contrary, be performed in accordance
        with GAAP.

       

      Section
        13.9 Assignment;
        Participation.
        All the
        provisions of this Agreement shall be binding upon and inure to the benefit
        of
        the parties hereto and their respective successors and assigns, except that
        the
        Borrower may not assign or transfer any of its rights under this Agreement.
        The
        Lender may assign to one or more Persons, or sell participations to one or
        more
        Persons in, all or a portion of its rights and obligations hereunder and
        under
        the Note and, in connection with any such assignment or sale of a participation,
        may assign its rights and obligations under the Security Documents. The Lender
        may, in connection with any assignment or proposed assignment or sale or
        proposed sale of a participation, disclose to the assignee or proposed assignee
        or participant or proposed participant any information relating to the Borrower
        furnished to the Lender by or on behalf of the Borrower.

       

      Section
        13.10 Amendments.
        Any
        term, covenant, agreement or condition of this Agreement or any of the other
        Loan Documents may be amended or waived and any departure therefrom may be
        consented to if, but only if, such amendment, waiver or consent is in writing
        signed by the Lender and, in the case of an amendment, by the Borrower. Unless
        otherwise specified in such waiver or consent, a waiver or consent given
        hereunder shall be effective only in the specific instance and for the specific
        purpose for which given.

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      Section
        13.11 Performance
        of Borrower’s Duties.
        The
        Borrower’s obligations under this Agreement and each of the Loan Documents shall
        be performed by the Borrower at its sole cost and expense. If the Borrower
        shall
        fail to do any act or thing which it has covenanted to do under this Agreement
        or any of the Loan Documents, the Lender may (but shall not be obligated
        to) do
        the same or cause it to be done either in the name of the Lender or in the
        name
        and on behalf of the Borrower, and the Borrower hereby irrevocably authorizes
        the Lender so to act.

       

      Section
        13.12 Indemnification.
        The
        Borrower agrees to reimburse the Lender for all reasonable costs and expenses,
        including counsel fees and disbursements, incurred and to indemnify and hold
        the
        Lender harmless from and against all losses suffered by the Lender, other
        than
        losses resulting from the Lender’s gross negligence or willful misconduct, in
        connection with (a) the exercise by the Lender of any right or remedy granted
        to
        it under this Agreement or any of the Loan Documents, (b) any claim, and
        the
        prosecution or defense thereof, arising out of or in any way connected with
        this
        Agreement or any of the Loan Documents, except in the case of a dispute between
        the Borrower and the Lender in which the Borrower prevails in a final unappealed
        or unappealable judgment, and (c) the collection or enforcement of the Secured
        Obligations or any of them.

       

      Section
        13.13 All
        Powers Coupled with Interest.
        All
        powers of attorney and other authorizations granted to the Lender and any
        Persons designated by the Lender pursuant to any provisions of this Agreement
        or
        any of the Loan Documents shall be deemed coupled with an interest and shall
        be
        irrevocable so long as any of the Secured Obligations remain unpaid or
        unsatisfied or the Loan has not been terminated.

       

      Section
        13.14 Survival.
        Notwithstanding any termination of this Agreement, (a) until all Secured
        Obligations have been paid in full and the Revolving Credit Facility terminated,
        the Lender shall retain its Security Interest and shall retain all rights
        under
        this Agreement and each of the Security Documents with respect to the Collateral
        as fully as though this Agreement had not been terminated, and (b) the
        indemnities to which the Lender is entitled under the provisions of this
        Article
        13
        and any
        other provision of this Agreement and the Loan Documents shall continue in
        full
        force and effect and shall protect the Lender against events arising after
        such
        termination as well as before.

       

      Section
        13.15 Severability
        of Provisions.
        Any
        provision of this Agreement or any other Loan Document which is prohibited
        or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        only to the extent of such prohibition or unenforceability without invalidating
        the remainder of such provision or the remaining provisions hereof or thereof
        or
        affecting the validity or enforceability of such provision in any other
        jurisdiction.

       

      Section
        13.16 Governing
        Law.
        This
        Agreement and the Note shall be construed in accordance with and governed
        by the
        law of the State of Missouri.

       

      Section
        13.17 Counterparts.
        This
        Agreement 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 shall be binding upon all parties, their successors
        and
        assigns, and all of which taken together shall constitute one and the same
        agreement.

       

      Section
        13.18 Reproduction
        of Documents.
        This
        Agreement, each of the Loan Documents and all documents relating thereto,
        including, without limitation, (a) consents, waivers and modifications that
        may
        hereafter be executed, (b) documents received by the Lender, and (c) financial
        statements, certificates and other information previously or hereafter furnished
        to the Lender, may be reproduced by the Lender by any photographic, photostatic,
        microcard, microfilm, miniature photographic or other similar process, and
        the
        Lender may destroy any original document so reproduced. Each party hereto
        stipulates that, to the extent permitted by applicable laws any such
        reproduction shall be as admissible in evidence as the original itself in
        any
        judicial or administrative proceeding (whether or not the original shall
        be in
        existence and whether or not such reproduction was made by such Lender in
        the
        regular course of business), and any enlargement, facsimile or further
        reproduction of such reproduction shall likewise be admissible in
        evidence.

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      Section
        13.19 Consent
        to Advertising and Publicity.
        The
        Borrower agrees that the Lender may issue and disseminate to the public
        information describing the credit accommodation entered into pursuant to
        this
        Agreement, including the name and address of the Borrower and the amount
        and a
        general description of the credit facilities provided hereunder.

       

      Section
        13.20 Final
        Agreement.
        This
        Agreement and the other Loan Documents are intended by the parties hereto
        as the
        final, complete and exclusive expression of the agreement among them with
        respect to the subject matter hereof and thereof. This Agreement and the
        other
        Loan Documents supersede any and all prior oral or written agreements between
        the parties hereto relating to the subject matter hereof and
        thereof.

       

      The
        following notice is provided pursuant to Section 432.047 of the Revised Statutes
        of Missouri:

      

      ORAL
        AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR 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.

       

      [The
        remainder of this page is intentionally left blank]

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto have caused this Agreement to be executed in St. Louis, Missouri
        by their duly authorized officers in several counterparts all as of the day
        and
        year first written above.

       

      
        	 	 	
                BORROWER:

              
	 	 	 
	 	 	
                FREEDOM
                  FINANCIAL GROUP, INC.

              
	 
 	 
 	 
 
	 	  	By: 
                /s/ Jerald L. Fenstermaker
	 	
                
                  

                

                
                

                
                  Name:
                    Jerald L. Fenstermaker 

                  Title:
                    President

                

              

      

       

      
        	                
                
 	 
 	 
                T.G.C. - THE CREDIT GROUP INC.
	 	 	 
	 	 	 
	 	 	  By: /s/ Jerald
                L. Fenstermaker
	 	
                
                  

                

                  Name:
                  Jerald L. Fenstermaker 
                   
                    Title: CEO

                

              
	 	 
	 	 
	 	 
	 	
                 
                  LENDER:

              
	 	 
	 	
                 
                  HEARTLAND BANK

              
	 	 
	 	 
	 	 
                By: /s/ Kenneth C. MacDonell
	 	
                
                  

                

                 
                  Name: Kenneth C. MacDonell

                 
                  Title: Senior Vice President

              

      

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

      EXHIBIT
        “A”

      

      NOTE

      

      [
        Filed
        as a separate exhibit to this Form 8-K ]

       

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      “B”

    

    BORROWING
      BASE CERTIFICATE

    

      FREEDOM
        FINANCIAL GROUP, INC. & T.C.G. - THE
        CREDIT GROUP INC.

    This
      Borrowing Base Certificate is delivered pursuant to that certain Revolving
      Credit Loan and Security Agreement dated as of August ____, 2006 by and among
      Freedom Financial Group, Inc. and T.C.G. - The Credit Group Inc. (collectively,
      the “Borrower”)
      and
      Heartland Bank (“Lender”),
      as
      the same may from time to time be amended, modified, extended, renewed or
      restated (the “Loan
      Agreement”).
      All
      capitalized terms used and not otherwise defined herein shall have the
      respective meanings ascribed to them in the Loan Agreement.

     

    Borrower
      hereby represents and warrants to the Lender that the following information
      is
      true, correct and complete in all material respects as of ______________,
      20____.

     

    
      	
              1.

            	 	 	
                 
                A/R Balance ______________,
                _________________:

            	 	
              $

            	 
	 
	
              2.

            	 	 	
                 
                Less Intangibles:

            	 	 	 	 
	
               

            	 	 	
              
                   
                  a.    Accounts
                  > 60 days

              

            	 	
              $

            	 
	 
	
            	 	 	
              
                
                  b.    Exception
                    Reserve (5% of Net Eligible)

                

              

            	
               

            	
              $

            	 
	 
	 	 	 	
              Total
                Ineligible:

            	 	
              $

            	 
	 
	
              3.

            	 	 	
                 
                Total Ineligible

            	 	
              $

            	 
	 
	
              4.

            	 	 	
                 
                Net Eligible

            	 	
              $

            	 
	 
	
               

            	 	 	
              Advance
                Rate

            	 	 	
              50

            	
              %

            
	
              5.

            	 	 	
                
                Availability Before Cap

            	 	
              $

            	 
	 
	
              6.

            	 	 	
                
                Maximum Cap

            	 	
              $

            	
              3,000,000.00

            	 
	
              
                7.

              

            	
               

            	
               

            	
                
Available
                ______________,
                _________________: 

            	 	
              $

            	 	 

    

     

    If
      Line
      Item “7” is negative, this Certificate is accompanied by the mandatory
      repayment, as required by Section 2.3 of the Loan Agreement.

     

    Each
      Borrower hereby certifies to Lender that as of this date, Borrower is in
      compliance with each and every covenant on its part to be performed under the
      Loan Agreement.

     

    Each
      Borrower understands that the Lender is relying on the truth and accuracy of
      the
      foregoing in connection with the Loan Agreement.

     

    
      	FREEDOM FINANCIAL
              GROUP,
              INC.	 	T.C.G.
              - THE
              CREDIT GROUP INC.
	 	 	 
	 	 	 	 	 
	By: 	 	 	By: 	 
	
              
                

              

              Name: Jerald L. Fenstermaker

              Title:   President

            	 	
              
                

              

              Name: Jerald L. Fenstermaker

              Title:  
                CEO

            

    

     

    
      
        
        

      

      
         

        
          

        

      

       

    

    EXHIBIT
      “C”

    

    Freedom
      Financial Group, Inc.

    Compliance
      Certificate

    

    To: Heartland
      Bank

     

    Except
      as
      explained in reasonable detail below under Exceptions, 

     

    
      	 	
              (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 absence of footnotes) 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 of Borrower contained in that
                certain Revolving Credit Loan and Security Agreement dated August
                _____,
                2006 (the “Loan Agreement”) and other Loan Documents (as defined in the
                Loan Agreement) are true and correct in all material respects as
                of the
                date of this Certificate, 

            

    

     

    
      	 	
              (iii)

            	
              there
                exists no Default or Event of Default (as defined in the Loan Agreement)
                which is continuing that has not been waived in writing by Lender
                and no
                Event of Default has occurred that has not been waived in writing
                by
                Lender, and 

            

    

     

    
      	 	
              (iv)

            	
              the
                Current Book Net Worth of the Company is $11,900.000.
                

            

    

     

    Note:
      If
      disclosing that a representation or warranty is not true and correct in any
      material respect, or that a Default or Event of Default has occurred that has
      not been waived in writing by Lender, set forth what action such covered person
      has taken or proposes to take with respect thereto.

    

    Exceptions,
      explanations and actions taken or proposes to be taken:

    

    FREEDOM
      FINANCIAL GROUP, INC.

     

    
      	 	 	 	 	 
	By:	 	 	 	 
	
              
                

              

              Name:
                Daniel
                F. Graham

              Title:  
                CFO

            	 	
            

    

     

    Date:___________________

    
      
        
        

      

      
         

        
          

        

      

       

    

    EXHIBIT
      “D-1”

    

    WARRANT
      FORM

    

    [
      Filed
      as a separate exhibit to this Form 8-K ]

    
      
        
        

      

      
         

        
          

        

      

       

    

    EXHIBIT
      “D-2”

    

    REGISTRATION
      RIGHTS AGREEMENT

     

    To: Heartland
      Bank, St. Louis, Missouri

     

    Freedom
      Financial Group, Inc. (the “Company”)
      covenants and agrees with you as of this 18th day of August, 2006, as
      follows:

     

    ARTICLE
      1. CERTAIN
      DEFINITIONS.
      As used
      in this Agreement, the following terms shall have the following respective
      meanings:

     

    “Commission”
shall
      mean the Securities and Exchange Commission, or any other federal agency at
      the
      time administering the Securities Act.

     

    “Common
      Stock”
shall
      mean the Common Stock, $0.0001 par value, of the Company, as constituted as
      of
      the date of this Agreement.

     

    “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended, or any similar federal
      statute, and the rules and regulations of the Commission thereunder, all as
      the
      same shall be in effect at the time.

     

    “Registration
      Expenses”
shall
      mean the expenses so described in Section 6.

     

    “Restricted
      Stock”
shall
      mean the Common Stock held from time to time by Heartland Bank or its assignees
      as a result of the exercise pursuant to a Warrant, excluding shares of Common
      Stock which have been (a) registered under the Securities Act pursuant to
      an effective registration statement filed thereunder and disposed of in
      accordance with the registration statement covering them or (b) publicly
      sold pursuant to Rule 144 under the Securities Act.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended, or any similar federal statute,
      and
      the rules and regulations of the Commission thereunder, all as the same shall
      be
      in effect at the time. 

     

    “Selling
      Expenses”
shall
      mean the expenses so described in Section 6.

     

    “Warrant”
shall
      mean the Warrants issued by the Company to Heartland Bank pursuant to Warrant
      agreements as of this date.

     

    ARTICLE
      2. REQUIRED
      REGISTRATION.

     

    2.1 At
      any
      time after the first (1st)
      anniversary date hereof, the holders of Restricted Stock then outstanding may
      request the Company to register under the Securities Act all or any portion
      of
      the shares of Restricted Stock held by such requesting holders for sale in
      the
      manner specified in such notice, provided that the shares of Restricted Stock
      for which registration has been requested shall constitute at least 90% of
      (i)
      the total shares of Restricted Stock if such holder or holders shall request
      the
      registration of less than all shares of Restricted Stock then held by such
      holder or holders and (ii) the total number of shares issuable pursuant to
      the
      Warrants. Notwithstanding anything to the contrary contained herein, no request
      may be made under this Section 2 within 120 days after the effective
      date of a registration statement filed by the Company covering a firm commitment
      underwritten public offering in which the holders of Restricted Stock shall
      have
      been entitled to join pursuant to Sections 3 or 4 and in which there shall
      have been effectively registered all shares of Restricted Stock as to which
      registration shall have been requested.

    
      
        
        

      

      
         

        
          

        

      

       

    

     

    2.2 Following
      receipt of any notice under this Section 2, the Company shall use its best
      efforts to register under the Securities Act, for public sale in accordance
      with
      the method of disposition specified in such notice from requesting holders,
      the
      number of shares of Restricted Stock specified in such notice. If such method
      of
      disposition shall be an underwritten public offering, the holders of a majority
      of the shares of Restricted Stock to be sold in such offering may designate
      the
      managing underwriter of such offering, subject to the approval of the Company,
      which approval shall not be unreasonably withheld or delayed. The Company shall
      be obligated to register Restricted Stock pursuant to this Section 2 on one
      occasion only, provided,
      however,
      that
      such obligation shall be deemed satisfied only when a registration statement
      covering all shares of Restricted Stock specified in notices received as
      aforesaid, for sale in accordance with the method of disposition specified
      by
      the requesting holders, shall have become effective and, if such method of
      disposition is a firm commitment underwritten public offering, all such shares
      shall have been sold pursuant thereto.

     

    2.3 The
      Company shall be entitled to include in any registration statement referred
      to
      in this Section 2, for sale in accordance with the method of disposition
      specified by the requesting holders, shares of Common Stock to be sold by the
      Company for its own account, except as and to the extent that, in the opinion
      of
      the managing underwriter (if such method of disposition shall be an underwritten
      public offering), such inclusion would adversely affect the marketing of the
      Restricted Stock to be sold. Except for registration statements on
      Form S-4, S-8 or any successor thereto, the Company will not file with the
      Commission any other registration statement with respect to its Common Stock,
      whether for its own account or that of other stockholders, from the date of
      receipt of a notice from requesting holders pursuant to this Section 2
      until the completion of the period of distribution of the registration
      contemplated thereby.

     

          
      ARTICLE 3. INCIDENTAL
      REGISTRATION.
      If the
      Company at any time (other than pursuant to Section 2 or Section 4)
      proposes to register any of its securities under the Securities Act for sale
      to
      the public, whether for its own account or for the account of other security
      holders or both (except with respect to registration statements on
      Forms S-4, S-8 or another form not available for registering the Restricted
      Stock for sale to the public), each such time it will give written notice to
      all
      holders of outstanding Restricted Stock of its intention so to do. Upon the
      written request of any such holder, received by the Company within 30 days
      after the giving of any such notice by the Company, to register any of its
      Restricted Stock, the Company will use its best efforts to cause the Restricted
      Stock as to which registration shall have been so requested to be included
      in
      the securities to be covered by the registration statement proposed to be filed
      by the Company, all to the extent requisite to permit the sale or other
      disposition by the holder of such Restricted Stock so registered.
      Notwithstanding the foregoing provisions, the Company may withdraw any
      registration statement referred to in this Section 3 without thereby
      incurring any liability to the holders of Restricted Stock.

     

    ARTICLE
      4. REGISTRATION
      ON FORM S-3.
      Intentionally Omitted.

     

           
      ARTICLE 5. REGISTRATION
      PROCEDURES.
      If and
      whenever the Company is required by the provisions of Sections 2, 3 or 4 to
      use its best efforts to effect the registration of any shares of Restricted
      Stock under the Securities Act, the Company will, as expeditiously as
      possible:

     

    5.1 prepare
      and file with the Commission a registration statement (which, in the case of
      an
      underwritten public offering pursuant to Section 2, shall be on Form S-1 or
      other form of general applicability satisfactory to the managing underwriter
      selected as therein provided) with respect to such securities and use its best
      efforts to cause such registration statement to become and remain effective
      for
      the period of the distribution contemplated thereby (determined as hereinafter
      provided);

     

    5.2 prepare
      and file with the Commission such amendments and supplements to such
      registration statement and the prospectus used in connection therewith as may
      be
      necessary to keep such registration statement effective for the period specified
      in paragraph (a) above and comply with the provisions of the Securities Act
      with respect to the disposition of all Restricted Stock covered by such
      registration statement in accordance with the sellers' intended method of
      disposition set forth in such registration statement for such
      period;

    
      
        
        

      

      
         

        
          

        

      

       

    

     

    5.3 furnish
      to each seller of Restricted Stock and to each underwriter such number of copies
      of the registration statement and the prospectus included therein (including
      each preliminary prospectus) as such persons reasonably may request in order
      to
      facilitate the public sale or other disposition of the Restricted Stock covered
      by such registration statement;

     

    5.4 use
      its
      commercially reasonable efforts to register or qualify the Restricted Stock
      covered by such registration statement under the securities or "blue sky" laws
      of such jurisdictions as the sellers of Restricted Stock or, in the case of
      an
      underwritten public offering, the managing underwriter reasonably shall request,
      provided,
      however,
      that
      the Company shall not for any such purpose be required to qualify generally
      to
      transact business as a foreign corporation in any jurisdiction where it is
      not
      so qualified or to consent to general service of process in any such
      jurisdiction;

     

    5.5 use
      its
      commercially reasonable efforts to list the Restricted Stock covered by such
      registration statement with any securities exchange on which the Common Stock
      of
      the Company is then listed;

     

    5.6 immediately
      notify each seller of Restricted Stock and each underwriter under such
      registration statement, at any time when a prospectus relating thereto is
      required to be delivered under the Securities Act, of the happening of any
      event
      of which the Company has knowledge as a result of which the prospectus contained
      in such registration statement, as then in effect, includes an untrue statement
      of a material fact or omits to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading in light
      of
      the circumstances then existing;

     

    5.7 if
      the
      offering is underwritten and at the request of any seller of Restricted Stock,
      use its commercially reasonable efforts to furnish on the date that Restricted
      Stock is delivered to the underwriters for sale pursuant to such registration:
      (i) an opinion of counsel representing the Company for the purposes of such
      registration, addressed to the underwriters and to such seller, stating that
      such registration statement has become effective under the Securities Act and
      that (A) to the best knowledge of such counsel, no stop order suspending
      the effectiveness thereof has been issued and no proceedings for that purpose
      have been instituted or are pending or contemplated under the Securities Act,
      (B) the registration statement, the related prospectus and each amendment
      or supplement thereof comply as to form in all material respects with the
      requirements of the Securities Act (except that such counsel need not express
      any opinion as to financial statements contained therein) and (C) to such
      other effects as reasonably may be requested by counsel for the underwriters
      or
      by such seller or its counsel and (ii) a letter dated such date from the
      independent public accountants retained by the Company, addressed to the
      underwriters and to such seller, stating that they are independent public
      accountants within the meaning of the Securities Act and that, in the opinion
      of
      such accountants, the financial statements of the Company included in the
      registration statement or the prospectus, or any amendment or supplement
      thereof, comply as to form in all material respects with the applicable
      accounting requirements of the Securities Act, and such letter shall
      additionally cover such other financial matters (including information as to
      the
      period ending no more than five business days prior to the date of such letter)
      with respect to such registration as such underwriters reasonably may request;
      and

     

    5.8 make
      available for inspection by each seller of Restricted Stock, any underwriter
      participating in any distribution pursuant to such registration statement,
      and
      any attorney, accountant or other agent retained by such seller or underwriter,
      all financial and other records, pertinent corporate documents and properties
      of
      the Company, and cause the Company's officers, directors and employees to supply
      all information reasonably requested by any such seller, underwriter, attorney,
      accountant or agent in connection with such registration statement.

     

    For
      purposes of Section 5(a) and 5(b) and of Section 2(c), the period of
      distribution of Restricted Stock in a firm commitment underwritten public
      offering shall be deemed to extend until each underwriter has completed the
      distribution of all securities purchased by it (but in no event longer than
      60
      days after the effective date thereof), and the period of distribution of
      Restricted Stock in any other registration shall be deemed to extend until
      the
      earlier of (i) the sale of all Restricted Stock covered thereby and (ii)
      120 days after the effective date thereof.

    
      
        
        

      

      
         

        
          

        

      

       

    

     

    In
      connection with each registration hereunder, the sellers of Restricted Stock
      will furnish to the Company in writing such information with respect to
      themselves and the proposed distribution by them as reasonably shall be
      necessary in order to assure compliance with federal and applicable state
      securities laws.

     

    In
      connection with each registration pursuant to Sections 2, 3 or 4 covering
      an underwritten public offering, the Company and each seller agree to enter
      into
      a written agreement with the managing underwriter selected in the manner herein
      provided in such form and containing such provisions as are customary in the
      securities business for such an arrangement between such underwriter and
      companies of the Company's size and investment stature.

     

           
      ARTICLE 6. EXPENSES.
      All
      expenses incurred by the Company in complying with Sections 2, 3 or 4,
      including, without limitation, all registration and filing fees, printing
      expenses, fees and disbursements of counsel and independent public accountants
      for the Company, fees and expenses (including counsel fees) incurred in
      connection with complying with state securities or “blue sky” laws, fees of the
      National Association of Securities Dealers, Inc., transfer taxes, fees of
      transfer agents and registrars, costs of insurance and Holders’ Counsel Fees (as
      defined herein), but excluding any Selling Expenses, are called “Registration
      Expenses.”
All
      underwriting discounts and selling commissions applicable to the sale of
      Restricted Stock and any attorney’s fees in excess of Holders’ Counsel Fees or
      expenses incurred by the sellers of Restricted Stock are called "Selling
      Expenses".
      For
      purposes of this Agreement “Holders’
      Counsel Fees”
shall
      mean the fees of a single attorney representing all sellers in connection solely
      with the actions of the sellers relating to such registration, but in no event
      shall Holders’ Counsel Fees be greater than $3,000.

     

    The
      Company will pay all Registration Expenses in connection with the first
      completed registration under Section 2 and in connection with each registration
      statement under Sections 3 or 4. All Selling Expenses in connection with each
      registration statement under Sections 2, 3 or 4 shall be borne by the
      participating sellers in proportion to the number of shares sold by each, or
      by
      such participating sellers other than the Company (except to the extent the
      Company shall be a seller) as they may agree. 

     

    ARTICLE
      7. INDEMNIFICATION
      AND CONTRIBUTION.

     

    7.1 In
      the
      event of a registration of any of the Restricted Stock under the Securities
      Act
      pursuant to Sections 2, 3 or 4, the Company will indemnify and hold
      harmless each seller of such Restricted Stock thereunder, each underwriter
      of
      such Restricted Stock thereunder and each other person, if any, who controls
      such seller or underwriter within the meaning of the Securities Act, against
      any
      losses, claims, damages or liabilities, joint or several, to which such seller,
      underwriter or controlling person may become subject under the Securities Act
      or
      otherwise, insofar as such losses, claims, damages or liabilities (or actions
      in
      respect thereof) arise out of or are based upon any untrue statement or alleged
      untrue statement of any material fact contained in any registration statement
      under which such Restricted Stock was registered under the Securities Act
      pursuant to Sections 2, 3 or 4, any preliminary prospectus or final
      prospectus contained therein, or any amendment or supplement thereof, or arise
      out of or are based upon the omission or alleged omission to state therein
      a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, and will reimburse each such seller, each such
      underwriter and each such controlling person for any legal or other expenses
      reasonably incurred by them in connection with investigating or defending any
      such loss, claim, damage, liability or action, provided,
      however,
      that
      the Company will not be liable in any such case if and to the extent that any
      such loss, claim, damage or liability arises out of or is based upon an untrue
      statement or alleged untrue statement or omission or alleged omission so made
      in
      conformity with information furnished by any such seller, any such underwriter
      or any such controlling person in writing specifically for use in such
      registration statement or prospectus.

    
      
        
        

      

      
         

        
          

        

      

       

    

     

    7.2 In
      the
      event of a registration of any of the Restricted Stock under the Securities
      Act
      pursuant to Sections 2, 3 or 4, each seller of such Restricted Stock
      thereunder, severally and not jointly, will indemnify and hold harmless the
      Company, each person, if any, who controls the Company within the meaning of
      the
      Securities Act, each officer of the Company who signs the registration
      statement, each director of the Company, each underwriter and each person who
      controls any underwriter within the meaning of the Securities Act, against
      all
      losses, claims, damages or liabilities, joint or several, to which the Company
      or such officer, director, underwriter or controlling person may become subject
      under the Securities Act or otherwise, insofar as such losses, claims, damages
      or liabilities (or actions in respect thereof) arise out of or are based upon
      any untrue statement or alleged untrue statement of any material fact contained
      in the registration statement under which such Restricted Stock was registered
      under the Securities Act pursuant to Sections 2, 3 or 4, any preliminary
      prospectus or final prospectus contained therein, or any amendment or supplement
      thereof, or arise out of or are based upon the omission or alleged omission
      to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading, and will reimburse the Company and each
      such officer, director, underwriter and controlling person for any legal or
      other expenses reasonably incurred by them in connection with investigating
      or
      defending any such loss, claim, damage, liability or action, provided,
      however,
      that
      such seller will be liable hereunder in any such case if and only to the extent
      that any such loss, claim, damage or liability arises out of or is based upon
      an
      untrue statement or alleged untrue statement or omission or alleged omission
      made in reliance upon and in conformity with information pertaining to such
      seller, as such, furnished in writing to the Company by such seller specifically
      for use in such registration statement or prospectus, and provided,
      further,
      however,
      that
      the liability of each seller hereunder shall be limited to the proportion of
      any
      such loss, claim, damage, liability or expense which is equal to the proportion
      that the public offering price of the shares sold by such seller under such
      registration statement bears to the total public offering price of all
      securities sold thereunder, but not in any event to exceed the net proceeds
      received by such seller from the sale of Restricted Stock covered by such
      registration statement.

     

    7.3 Promptly
      after receipt by an indemnified party hereunder of notice of the commencement
      of
      any action, such indemnified party shall, if a claim in respect thereof is
      to be
      made against the indemnifying party hereunder, notify the indemnifying party
      in
      writing thereof, but the omission so to notify the indemnifying party shall
      not
      relieve it from any liability which it may have to such indemnified party other
      than under this Section 7 and shall only relieve it from any liability
      which it may have to such indemnified party under this Section 7 if and to
      the extent the indemnifying party is prejudiced by such omission. In case any
      such action shall be brought against any indemnified party and it shall notify
      the indemnifying party of the commencement thereof, the indemnifying party
      shall
      be entitled to participate in and, to the extent it shall wish, to assume and
      undertake the defense thereof with counsel satisfactory to such indemnified
      party, and, after notice from the indemnifying party to such indemnified party
      of its election so to assume and undertake the defense thereof, the indemnifying
      party shall not be liable to such indemnified party under this Section 7
      for any legal expenses subsequently incurred by such indemnified party in
      connection with the defense thereof other than reasonable costs of investigation
      and of liaison with counsel so selected, provided,
      however,
      that,
      if the defendants in any such action include both the indemnified party and
      the
      indemnifying party and the indemnified party shall have reasonably concluded
      that there may be reasonable defenses available to it which are different from
      or additional to those available to the indemnifying party or if the interests
      of the indemnified party reasonably may be deemed to conflict with the interests
      of the indemnifying party, the indemnified party shall have the right to select
      a separate counsel and to assume such legal defenses and otherwise to
      participate in the defense of such action, with the expenses and fees of such
      separate counsel and other expenses related to such participation to be
      reimbursed by the indemnifying party as incurred.

     

    7.4 In
      order
      to provide for just and equitable contribution to joint liability under the
      Securities Act in any case in which either (i) any holder of Restricted
      Stock exercising rights under this Agreement, or any controlling person of
      any
      such holder, makes a claim for indemnification pursuant to this Section 7
      but it is judicially determined (by the entry of a final judgment or decree
      by a
      court of competent jurisdiction and the expiration of time to appeal or the
      denial of the last right of appeal) that such indemnification may not be
      enforced in such case notwithstanding the fact that this Section 7 provides
      for indemnification in such case, or (ii) contribution under the Securities
      Act may be required on the part of any such selling holder or any such
      controlling person in circumstances for which indemnification is provided under
      this Section 7; then, and in each such case, the Company and such holder
      will contribute to the aggregate losses, claims, damages or liabilities to
      which
      they may be subject (after contribution from others) in such proportion so
      that
      such holder is responsible for the portion represented by the percentage that
      the public offering price of its Restricted Stock offered by the registration
      statement bears to the public offering price of all securities offered by such
      registration statement, and the Company is responsible for the remaining
      portion; provided,
      however,
      that,
      in any such case, (A) no such holder will be required to contribute any
      amount in excess of the public offering price of all such Restricted Stock
      offered by it pursuant to such registration statement; and (B) no person or
      entity guilty of fraudulent misrepresentation (within the meaning of
      Section 11(f) of the Securities Act) will be entitled to contribution from
      any person or entity who was not guilty of such fraudulent
      misrepresentation.

     

    
      
        
        

      

      
         

        
          

        

      

       

    

     

          
      ARTICLE 8. CHANGES
      IN COMMON STOCK OR PREFERRED STOCK.
      If, and
      as often as, there is any change in the Common Stock by way of a stock split,
      stock dividend, combination or reclassification, or through a merger,
      consolidation, reorganization or recapitalization, or by any other means,
      appropriate adjustment shall be made in the provisions hereof so that the rights
      and privileges granted hereby shall continue with respect to the Common Stock
      as
      so changed.

     

          
      ARTICLE 9. RULE
      144 REPORTING.
      With a
      view to making available the benefits of certain rules and regulations of the
      Commission which may at any time permit the sale of the Restricted Stock to
      the
      public without registration, at all times after 90 days after any
      registration statement covering a public offering of securities of the Company
      under the Securities Act shall have become effective, the Company agrees
      to:

     

    9.1 make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144 under the Securities Act;

     

    9.2 use
      its
      commercially reasonable efforts to file with the Commission in a timely manner
      all reports and other documents required of the Company under the Securities
      Act
      and the Exchange Act; and

     

    9.3 furnish
      to each holder of Restricted Stock forthwith upon request a written statement
      by
      the Company as to its compliance with the reporting requirements of such
      Rule 144 and of the Securities Act and the Exchange Act, a copy of the most
      recent annual or quarterly report of the Company, and such other reports and
      documents so filed by the Company as such holder may reasonably request in
      availing itself of any rule or regulation of the Commission allowing such holder
      to sell any Restricted Stock without registration.

     

    ARTICLE
      10. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.
      The
      Company represents and warrants to you as follows:

     

    10.1 The
      execution, delivery and performance of this Agreement by the Company have been
      duly authorized by all requisite corporate action and will not violate any
      provision of law, any order of any court or other agency of government, the
      Charter or By-laws of the Company or any provision of any indenture, agreement
      or other instrument to which it or any or its properties or assets is bound,
      conflict with, result in a breach of or constitute (with due notice or lapse
      of
      time or both) a default under any such indenture, agreement or other instrument
      or result in the creation or imposition of any lien, charge or encumbrance
      of
      any nature whatsoever upon any of the properties or assets of the
      Company.

     

    10.2 This
      Agreement has been duly executed and delivered by the Company and constitutes
      the legal, valid and binding obligation of the Company, enforceable in
      accordance with its terms.

     

           
      ARTICLE 11. MISCELLANEOUS.

     

    11.1 All
      covenants and agreements contained in this Agreement by or on behalf of any
      of
      the parties hereto shall bind and inure to the benefit of the respective
      successors and assigns of the parties hereto (including without limitation
      transferees of any Restricted Stock), whether so expressed or not, provided,
      however,
      that
      registration rights conferred herein on the holders of Restricted Stock shall
      only inure to the benefit of a transferee of Restricted Stock if there is
      transferred to such transferee at least 90% of the Restricted Stock originally
      issued to the direct or indirect transferor of such transferee.

    
      
        
        

      

      
         

        
          

        

      

       

    

     

    11.2 All
      notices, requests, consents and other communications hereunder shall be in
      writing and shall be delivered in person, by overnight delivery service, mailed
      by certified or registered mail, return receipt requested, or sent by telecopier
      or telex, addressed as follows:

     

    if
      to the
      Company or any other party hereto, at the address of such party set forth in
      the
      Purchase Agreement;

     

    if
      to any
      subsequent holder of Restricted Stock, to it at such address as may have been
      furnished to the Company in writing by such holder;

     

    or,
      in
      any case, at such other address or addresses as shall have been furnished in
      writing to the Company (in the case of a holder of Restricted Stock) or to
      the
      holders of Restricted Stock (in the case of the Company) in accordance with
      the
      provisions of this paragraph.

     

    11.3 This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware.

     

    11.4 This
      Agreement may not be amended or modified, and no provision hereof may be waived,
      without the written consent of the Company and the holders of at least
      two-thirds (2/3) of the Restricted Stock.

     

    11.5 This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    11.6 The
      obligations of the Company to register shares of Restricted Stock under
      Sections 2, 3 or 4 shall terminate on the earlier of (i) the lapse of the
      Warrants without exercise thereof by the holders and (ii) the sixth
      (6th)
      anniversary of the date of this Agreement. 

     

    11.7 If
      any
      provision of this Agreement shall be held to be illegal, invalid or
      unenforceable, such illegality, invalidity or unenforceability shall attach
      only
      to such provision and shall not in any manner affect or render illegal, invalid
      or unenforceable any other provision of this Agreement, and this Agreement
      shall
      be carried out as if any such illegal, invalid or unenforceable provision were
      not contained herein.

     

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

     

    
      	 	 	 
	 	FREEDOM
              FINANCIAL GROUP, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Jerald
              L.
              Fenstermaker
	 	
              

              Name:
                ___________________________________

              Title:
                President and Chief Executive
                Officer

            

    

     

    
      	 	 	 
	 	HEARTLAND
              BANK
	 
 	 
 	 
 
	 	By:  	/s/ Kenneth
              C. MacDonell
	 	
              

              Name:
                Kenneth C. MacDonell

              Title:
                Senior Vice President

            

    

     

    
      
        
        

      

      
         

        
          

        

      

       

    

    

    SCHEDULE
      5.1(a)(ix)

    

    Installment
      Contracts

    
      
        
        

      

      
         

        
          

        

      

       

    

    SCHEDULE
      6.1(g)

    

    Liens
      on the 

    Properties
      and Assets of the Borrower

    

    None

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6.1(h)

    

    Indebtedness
      for Money Borrowed

    and
      Guaranties

    

    None

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      6.1(n)

    

    Employee
      Benefit Plans

    

    None

    
      
        
        

      

      
         

        
          

        

      

       

    

    

    SCHEDULE
      6.1(t)

    

    Fictitious
      Names

    

    Freedom
      Financial Group of Delaware, Inc.

    Freedom
      Financial Group of Illinois, Inc. 

    Freedom
      Financial Group of Indiana, Inc.

    Freedom
      Financial Group of Michigan, Inc.

    Freedom
      Financial Group of Missouri, Inc.

    Freedom
      Financial Group of North Carolina, Inc.

    Freedom
      Financial Group of Ohio

    Freedom
      Financial Group of Oklahoma

    FFG
      of
      Texas, Inc.

    
      
        
        

      

      
         

        
          

        

      

       

    

     

    SCHEDULE
      6.1(x)

    

    Pre
      and Post Conversion Capitalization

    

    
      	 	 	 	 	
               Authorized

            	 	
              Issued

            	 	
              Outstanding

            	 	
              Treasury

            	 
	
              Common
                Stock

            	 	 	 	 	 	
              36,000,000
                

            	 	 	
              10,928,252
                

            	 	 	
              10,928,252
                

            	 	 	
              -
                

            	 
	
              Trust
                Certificates

            	 	 	
              A

            	 	 	
              8,994,357
                

            	 	 	
              8,994,357
                

            	 	 	
              8,994,357
                

            	 	 	
              -
                

            	 
	
              Preferred
                Stock

            	 	 	
              B

            	 	 	
              8,994,357
                

            	 	 	
              8,994,357
                

            	 	 	
              8,994,357
                

            	 	 	
              -
                

            	 
	 	 
	
              During
                the Third Quarter 2006 the Trust Certificates will be cancelled and
                the
                Preferred Stock will be converted 1:1 in accordance with the stockholder
                approval of June 23, 2006.

            	 
	 	 
	
              Post
                Conversion:

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Common
                Stock

            	 	 	 	 	 	
              36,000,000

            	 	 	
              19,922,609

            	 	 	
              19,922,609

            	 	 	
              0

            	 
	
              Trust
                Certificates

            	 	 	 	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 
	
              Preferred
                Stock

            	 	 	 	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 
	
              Warrants:

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Heartland
                Bk

            	 	 	 	 	 	 	 	 	
              300,000@$.63

            	 	 	
              300,000@$.63

            	 	 	 	 
	
               

            	 	 	 	 	 	 	 	 	
              200,000@$.70

            	 	 	
              200,000@.70

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Flagstone
                Securities

            	 	 	 	 	
              136,778@$.63

            	 	 	
              136,778@.63

            	 	 	 	 
	
               

            	 	 	 	 	 	
               
                

            	 	 	
              91,185@$.70

            	 	 	
              91,185@$.70

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	
              827,963

            	 	 	
              827,963

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	
              20,750,572

            	 	 	
              20,750,572

            	 	 	 	 

    

    

    
      	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
              A
                - Issued by Freedom Financial Group I Statutory
                Trust

            	 	
              15,249,428
                 

            	
              or

            	
              42.3595%

            
	 	 	 	 	 	 	 	 	 	 	
              Available
                for future use.

            	
               

            	
               

            
	 	
              B
                - Held by Freedom Financial Group I Statutory
                Trust

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]