Document:

Exhibit 10.1 

Amendment No. 2 to
Employment
Agreement

This Amendment No. 2 shall modify the
terms of the Employment Agreement (“Agreement”) dated September 7, 2006 (the
“Effective Date”), between Intelligroup, Inc. (the “Company”) and Alok Bajpai
(the “Executive”). Except as expressly set forth below all other terms and
conditions in the Agreement remain in full force and effect.

1. “Section 2. Term of
Agreement” of the Agreement is hereby amended by replacing “two (2) years” with
“four (4) years.”

2. "Section
4.1. Base Salary" of the Agreement is hereby amended by replacing "INR
55,00,000" with "INR 66,66,667".

3. "Section
4.2. Incentive Compensation Bonus" of the Agreement is hereby deleted in its
entirety and replaced by:

"The Executive
will be eligible to participate in the Company’s Executive Incentive Plan
approved by the Board, pursuant to the terms and conditions of such plan. The
Executive shall be eligible under such plan for an annual bonus equivalent to
fifty percent (50%) of the Executive’s annual base salary which currently
amounts to INR 33,33,333. The details of this plan will be documented and will
include a combination of mutually agreed upon financial, operational, and
organizational objectives."

IN WITNESS WHEREOF, the parties hereto
have executed the Amendment as of September 11, 2008.

	/s/ Alok
      Bajpai  	 	/s/ Vikram
      Gulati  
	 	 	 
	Executive – Alok
      Bajpai  		Intelligroup,
      Inc.  

		Name:Vikram
      Gulati  
		Title: 
      President and CEOfs1ex10_ea3chinaarmco.htm

    Exhibit 10.1

     

    CANCELATION
AGREEMENT

     

    This will
confirm that I hereby agree to cancel the June 25, 2008 Promissory Note in the
principal amount of $6,890,000.00 executed by China Armco Metals, Inc. (f/k/a
Cox Distributing, Inc.), a Nevada corporation (the "Company") in payment of the
purchase of the 5,300,000 shares of the Company's Common Stock, $.001 par value
per share (the "Shares") pursuant to
the attached Exercise Notice delivered pursuant to the Stock Option Agreement
dated June 27, 2008 entered into between the Company and Feng Gao.

     

    /s/
Feng Gao

    Feng
Gao

     

    Dated:
8/13/08ex10_1.htm

    LOAN
AND SECURITY AGREEMENT

     

    

    BETWEEN

    

    

    OE
SOURCE, L.C.

    

    

    AND

    

    

    PRESIDENTIAL
FINANCIAL CORPORATION

    

    

    

    

    

    

    

    

    

    DATED
AS OF

    

    AUGUST
26, 2008

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
OF CONTENTS

     

    
      
        
          	
                  SECTION  1.

                	
                  LOANS
      AND CREDIT ACCOMMODATIONS

                	
                  3

                
	
                  1.1

                	
                  Amount

                	
                  3

                
	
                  1.2

                	
                  Reserve

                	
                  3

                
	
                  1.3

                	
                  Use
      of Proceeds

                	
                  4

                
	
                  1.4

                	
                  Repayment

                	
                  4

                
	
                  SECTION  2.

                	
                  ADVANCES
      TO COVER INTEREST AND FEES; FEES AND EXPENSES

                	
                  4

                
	
                  2.1

                	
                  Interest

                	
                  4

                
	
                  2.2

                	
                  Fees
      and Expenses

                	
                  4

                
	
                  2.3

                	
                  Loan
      Account

                	
                  4

                
	
                  2.4

                	
                  Expense
      Reimbursement.

                	
                  5

                
	
                  SECTION  3.

                	
                  SECURITY
      INTEREST

                	
                  5

                
	
                  3.1

                	
                  Grant

                	
                  5

                
	
                  3.2

                	
                  Further
      Assurances

                	
                  5

                
	
                  SECTION  4.

                	
                  ADVANCES
      AND ADMINISTRATION

                	
                  5

                
	
                  4.1

                	
                  Advance
      Requests

                	
                  5

                
	
                  4.2

                	
                  Remittance
      of Collections and Other Proceeds and Procedures

                	
                  6

                
	
                  4.3

                	
                  Application
      of Payments

                	
                  6

                
	
                  4.4

                	
                  Notification;
      Verification

                	
                  6

                
	
                  4.5

                	
                  Power
      of Attorney

                	
                  7

                
	
                  4.6

                	
                  Books
      and Records

                	
                  7

                
	
                  SECTION  5.

                	
                  REPRESENTATIONS
      AND WARRANTIES

                	
                  7

                
	
                  5.1

                	
                  General

                	
                  7

                
	
                  5.2

                	
                  Accounts

                	
                  8

                
	
                  5.3

                	
                  Borrower
      Reports

                	
                  8

                
	
                  SECTION  6.

                	
                  COVENANTS

                	
                  8

                
	
                  6.1

                	
                  Affirmative
      Covenants

                	
                  8

                
	
                  6.2

                	
                  Negative
      Covenants

                	
                  9

                
	
                  6.3

                	
                  Financial
      and Other Covenants

                	
                  9

                
	
                  SECTION  7.

                	
                  EVENTS
      OF DEFAULT AND REMEDIES

                	
                  9

                
	
                  7.1

                	
                  Events
      of Default

                	
                  9

                
	
                  7.2

                	
                  Remedies

                	
                  10

                
	
                  SECTION  8.

                	
                  RELEASE
      AND INDEMNITY

                	
                  11

                
	
                  8.1

                	
                  Release

                	
                  11

                
	
                  8.2

                	
                  Indemnity

                	
                  11

                
	
                  SECTION  9.

                	
                  TERM

                	
                  11

                
	
                  9.1

                	
                  Effectiveness
      of Agreement

                	
                  11

                
	
                  9.2

                	
                  Termination

                	
                  11

                
	
                  9.3

                	
                  Early
      Termination Fee

                	
                  11

                
	
                  9.4

                	
                  Effect
      of Termination

                	
                  12

                
	
                  SECTION  10.

                	
                  GENERAL
      PROVISIONS

                	
                  12

                
	
                  10.1

                	
                  Miscellaneous

                	
                  12

                
	
                  10.2

                	
                  Consent
      to Forum

                	
                  12

                
	
                  10.3

                	
                  Waivers
      by Borrower

                	
                  13

                

        

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    LOAN
AND SECURITY AGREEMENT

     

    THIS LOAN
AND SECURITY AGREEMENT (as it may be amended, this "Agreement")
is entered into on August 26, 2008 between PRESIDENTIAL
FINANCIAL CORPORATION ("Lender"),
having an address at 1979 Lakeside Parkway, Suite 400, Tucker, Georgia 30084,
and OE SOURCE, L.C.
("Borrower"),
a Florida Limited Liability Company whose chief executive office is located at
5422 Carrier Drive, Suite 309, Orlando Fl 32819 ("Borrower's
Address").  Capitalized terms not otherwise defined in this
Agreement shall have the meanings set forth on Schedule A.  All
other terms contained in this Agreement, unless otherwise indicated, shall have
the meaning provided in the UCC to the extent such terms are defined
therein.  The schedules attached to this Agreement are an integral
part of this Agreement and are incorporated herein by reference.

     

    SECTION  1. LOANS
AND CREDIT ACCOMMODATIONS.

     

    1.1 Amount.

     

    Subject
to the terms and conditions in this Agreement, at Borrower's request and
provided that no Default or Event of Default exists, Lender may, in its
discretion, make Advances to Borrower during the Term, to the extent that there
is sufficient Availability at the time of such request to cover, dollar for
dollar, the requested Advance, and further
provided
that after giving effect to such Advances,
the outstanding balance of all monetary Obligations will not exceed the Maximum
Loan Amount.   For this purpose, "Availability"
means, on any date, an amount equal to:

    

    
      	
              (i)  

            	
              the  Eligible
      Accounts on such date multiplied by the Accounts Advance
    Rate;

            

    

     

    plus

    

    
      	
              (ii)  

            	
              the
      Eligible Inventory on such date multiplied by the Inventory Advance Rate,
      provided, however, Inventory Availability shall be limited to the lesser
      of (a) the Maximum Inventory Loan or (b) the outstanding Advances against
      Eligible Accounts;

            

    

     

    minus

     

    (ii)           all
Reserves which Lender has established pursuant to Section 1.2 (including
any to be established in connection with the requested Advance);

     

    minus

     

    (iii)           the
outstanding balance of all monetary Obligations on such date.

     

    1.2 Reserve

     

    Lender
may from time to time in its discretion establish and revise such reserves as
Lender deems appropriate ("Reserves")
to reflect (i) the amount of accrued but unpaid interest with respect to
the monetary Obligations on such date, (ii) events, conditions, contingencies or
risks which affect or may affect (A) the Collateral or its value, or the
Liens and other rights of Lender in the Collateral or (B) the assets,
business or prospects of Borrower or any Obligor, (iii) Lender's concern
that any Collateral or financial information furnished by or on behalf of
Borrower to Lender is or may have been incomplete, inaccurate or misleading in
any material respect, (iv) any fact or circumstance which Lender determines
in its discretion constitutes, or could constitute, a Default or Event of
Default or (v) any other events or circumstances which Lender determines in
its discretion make the establishment or revision of a Reserve
prudent.  Lender may, in its discretion, establish and revise Reserves
by deducting them in determining Availability or by reclassifying Eligible
Accounts as ineligible.  In no event shall the establishment of a

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Reserve
in respect of a particular actual or contingent liability obligate Lender to
make Advances hereunder to pay such liability or otherwise obligate Lender with
respect thereto.

    

    1.3 Use of
Proceeds.

     

    Borrower
shall be authorized to use the proceeds of the Advances solely to make
expenditures for lawful purposes of Borrower to the extent such expenditures are
not prohibited by the provisions of this Agreement or Applicable
Law.  Borrower represents and warrants that lender's loan or loans to
Borrower will be used for nonconsumer purposes and not for personal, family or
household purposes.

    

    1.4 Repayment

     

    Principal
and interest shall be paid as stated in the Demand Secured Promissory Note (the
“Note”) executed by Borrower in favor of Lender contemporaneously
herewith.   In addition, if at any time the amount of monetary
Obligations exceeds Availability (any such excess, an "Overadvance"), or if at
any time or for any reason the outstanding amount of Advances extended or issued
pursuant hereto exceeds any of the dollar limitations
(“Overline”).  Borrower will immediately pay to Lender the amount of
such Overadvance or Overline Notwithstanding the foregoing, Lender may, in its
discretion, make or permit the Advances or any other monetary Obligations that
give rise to or constitute an Overadvance or Overline, provided that Borrower
shall, upon Lender's demand, pay to Lender such amounts as shall eliminate such
Overadvance or Overline.  All unpaid monetary Obligations shall be due
and payable in full upon termination of this Agreement pursuant to Section 9.2
..

     

    SECTION  2. ADVANCES
TO COVER INTEREST AND FEES; FEES AND EXPENSES.

     

    2.1 Interest

     

    Principal
and interest shall be paid as stated in the Note executed by Borrower in favor
of Lender contemporaneously herewith.  The parties agree that, and
Borrower instructs Lender that, immediately upon accrual of interest and other
charges provided for herein and in the Note, such interest and other charges
shall be paid by Advances and charged to Borrower’s Loan Account with
Lender.  Such Advances shall thereafter bear interest and be subject
to other charges upon the same terms as other Advances, and such Advances are
agreed by the parties to be principal pursuant to O.C.G.A. Section
7-4-2(A)(3).  Borrower specifically agrees, by execution of this Loan
Agreement and Note, to this treatment of all accrued but unpaid interest and
other charges hereunder and under the Note.

    

    2.2 Fees and
Expenses.

     

    In
addition to all interest and other sums payable by Borrower to Lender under this
Agreement, Borrower shall pay Lender the fees and reimbursements listed on Schedule B, which are and
shall be deemed earned in full on the date when same is due and payable
hereunder and shall not be subject to rebate or proration upon termination of
this Agreement for any reason.

    

    2.3 Loan
Account.

     

    Lender
shall maintain a loan account in the name of Borrower, reflecting all Advances,
charges, fees, expenses and payments made pursuant to this Agreement (the "Loan
Account").  Lender shall provide Borrower with commercially
reasonable electronic access to information about Borrower’s Loan Account (the
“Online
Statement”); provided, however, that Lender shall not be liable to
Borrower for any damages suffered by Borrower as a result of the temporary
failure or unavailability of or the lack of updates to the Online
Statement.  All information posted to the Online Statement shall be
deemed to have been delivered to Borrower and, unless Borrower notifies
Lender in
writing to the contrary (including a detailed description of the alleged error
or omission) within 30 days after such information is made available to
Borrower, the Online Statement shall be deemed correct, 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    accurate
and conclusively binding on Borrower as an account stated (except for reverses
and reapplications of payments made and corrections of errors discovered by
Lender).

    

    2.4 Expense
Reimbursement.

     

    Borrower
shall reimburse Lender for (i) any Extraordinary Expenses incurred by Lender and
(ii) all legal, accounting, appraisal, consulting and other fees and expenses
suffered or incurred by Lender in connection with: (a) the negotiation and
preparation of any of the Loan Documents and any amendment or modification
thereto; (b) the administration of the Loan Documents and the transactions
contemplated thereby; (c) action taken to perfect or maintain the perfection or
priority of any of Lender's Liens with respect to any of the Collateral; (d) any
inspection of or audits conducted by Lender with respect to Borrower's books and
records or any of the Collateral; or (e) any effort by Lender to verify or
appraise any of the Collateral. lAttorneys fees relating to collection for which
Borrower shall be responsible to reimburse Lender shall be equal to to the
lesser of: (a) actual fees and expenses or (b) fifteen percent (15%) of the
principal and interest owed hereunder at the time of commencement of collection
activities or the maximum amount permitted by law then in effect.  All
amounts chargeable to or reimbursable by Borrowers under this Section 2.4 shall
constitute Obligations payable on demand to Lender.  The foregoing
shall be in addition to, and shall not be construed to limit, any other
provision of any of the Loan Documents regarding the indemnification or
reimbursement by Borrower of claims suffered or incurred by
Lender.

     

    SECTION  3. SECURITY
INTEREST.

     

    3.1 Grant.

     

    To secure
the full and timely payment and performance of all of the Obligations, Borrower
hereby grants to Lender a continuing security interest in and Lien upon in the
following property and interests in property of Borrower, whether tangible or
intangible, now owned or in existence or hereafter acquired or arising, and
wherever located:  all Accounts, Accounts and Securities, Chattel
Paper, Furniture, Fixtures and Equipment, Instruments, Investment Property,
General Intangibles, Deposit Accounts, Supporting Obligations, Inventory, Other
Property, all Proceeds and products of all of the foregoing (including proceeds
of any insurance policies and claims against third parties for loss or any
destruction of any of the foregoing), and (iii) all books and records
relating to any of the foregoing.

    

    3.2 Further
Assurances.

     

     Borrower agrees to
comply with all Applicable Laws to perfect Lender's Lien in the Collateral and
to execute such documents as Lender may require to effectuate the foregoing and
to implement this Agreement.  Borrower irrevocably authorizes Lender
to file financing statements, and all amendments and continuations with respect
thereto, in order to create, perfect or maintain its Lien in the Collateral as a
duly perfected Lien,  subject
to no other Liens except Permitted Liens
listed on Schedule
C.  Borrower hereby ratifies and confirms any and all financing
statements, amendments and continuations with respect thereto heretofore and
hereafter filed by Lender pursuant to the foregoing authorization.

     

     

    SECTION  4. ADVANCES
AND ADMINISTRATION.

     

    4.1 Advance
Requests.

     

    Whenever
Borrower desires to obtain an Advance, Borrower shall give Lender notice of such
borrowing request telephonically (and confirmed in writing if requested by
Lender) or by facsimile or electronic mail transmission  no later than
11:00 a.m. Eastern Standard Time (“EST”) or, if in effect, Daylight Savings Time
(“DST”) on the Business Day of the requested borrowing, and notices (in the form
stipulated herein) received by Lender after 11:00 a.m. EST or DST, whichever is
in effect, shall
be deemed received on the next Business Day and notices received other than in
the form stipulated herein shall be ineffective and deemed not received by
Lender.  Unless payment is otherwise timely made by Borrower, the
becoming due of any amount required to be paid with respect to any of the

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Obligations
(including any interest thereon) shall be deemed irrevocably to be a request
(without any requirement for the submission of a notice of borrowing) for an
Advance on the due date of and in an aggregate amount required to pay such
Obligations and the proceeds of such Advance may be disbursed by way of direct
payment of the relevant Obligations, provided
that Lender shall have no obligation to honor any deemed request for an Advance
on or after the date on which this Agreement is terminated pursuant to Section
9.2, or when an Overadvance exists or would result from such funding or when any
applicable condition precedent is not satisfied, but Lender may do so in its
discretion and without regard to the existence of, and without being deemed to
have waived, any Default or Event of Default and regardless of whether such
Advance is made after the date on which this Agreement is terminated pursuant to
Section 9.2.

     

    4.2 Remittance of Collections
and Other Proceeds and Procedures..

     

    Borrower
shall direct all Collections to the remittance address provided by Lender in the
Procedures Letter (the “Remittance Address”).  Lender shall retain the
sole discretion to require Borrower to enter into a bank agreement or other
agreement governing the remittance of Collections, which agreement shall be in
form and substance acceptable to Lender, and only Lender shall have access to
withdraw or otherwise direct the disposition of Collections.  In the
event Borrower receives any Collections or other proceeds of Collateral,
Borrower shall promptly upon receipt (and in all events within three Business
Days of receipt by Borrower) remit, in kind, such Collections or other proceeds
of Collateral directly to the Remittance Address, and shall promptly notify
Lender of such event.  Until so forwarded, any such Collections or
other proceeds of Collateral received by Borrower shall not be commingled with
Borrower's other funds and shall be held by Borrower, as trustee of an express
trust, for Lender's benefit.  In the event any Collections are
received by Borrower but not remitted to Lender in the time and manner specified
herein, the Misdirected Payment Fee set forth on Schedule B shall be assessed
and charged to Borrower’s Loan Account.  Borrower shall specify the
Remittance Address on all agreements and contracts, and take all necessary steps
to ensure all Collections are directed to the Remittance Address.  On
all invoices, Borrower will place the Payment Notice that each invoice shall
only be paid to the Remittance Address.  All invoices shall be mailed
or otherwise transmitted by Borrower to Account Obligors within five Business
Days of issuance.  With each Advance request, Borrower will provide
Lender with copies of all invoices and proof of delivery on all invoices as set
forth in the Procedures Letter along with any other information as Lender may
reasonably request.

    

    4.3 Application of
Payments.

     

    Lender
may, in its discretion, apply all Collections and other proceeds of Collateral
or other payments received with respect to the Obligations, in such order and
manner as Lender shall determine, whether or not the Obligations are due, and
whether before or after the occurrence of a Default or an Event of
Default.  For purposes of determining Availability, funds received at
the Remittance Address will be credited to the Loan Account upon Lender's
receipt of notice that such items have been credited to the Payment Account,
subject to final payment and collection; provided, however, that for
purposes of computing interest on the Obligations, such items shall be deemed
applied by Lender two Business Days after Lender's receipt of advice of deposit
in the Payment Account.  If, as the result of Lender's application of
Collections to the Obligations as authorized by this Section 4.3 a credit
balance exists in favor of Borrower (meaning that, on any date of determination,
the collected balance of Collections after the applicable cutoff time on such
date exceeds the outstanding principal balance of (and all interest, fees and
other amounts payable with respect to) the Obligations after the applicable
cutoff time on such date), such credit balance shall not accrue interest in
favor of Borrower, but shall be available to, and promptly paid by Lender to
Borrower upon Borrower’s request, at any time or times for so long as no Default
or Event of Default exists.

     

    4.4 Notification;
Verification

     

    Lender or
its designee may, from time to time and to the extent permitted by Applicable
Law, whether or not a Default or Event of Default has occurred: (i) verify
directly with the Account Obligors the validity, amount and other matters
relating to the Accounts, by means of mail, telephone or otherwise, either in
the name of Borrower or Lender or such other name as Lender may choose;
(ii) notify Account Obligors that Lender has a Lien in the 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Accounts
and that payment thereof is to be made directly to Lender; and
(iii) demand, collect or enforce payment of any Accounts  (but
without any duty to do so).

    

    4.5 Power of
Attorney.

     

    Borrower
hereby makes, constitutes and appoints each of Lender's officers or agents as
Borrower's attorney-in-fact with full power of substitution, in the name of
Borrower or in the name of Lender, but for Lender's use and benefit, to do or
perform at any time, in Lender's discretion, any of the
following:  (i) at any time, irrespective of whether there exists an
Event of Default, receive, open and dispose of all mail addressed to Borrower
and endorse Borrower's name on any checks or other payment items with respect to
any Collateral and to deposit same and apply them to such of the Obligations as
Lender may elect; and (ii) at any time that an Event of Default exists, cause
all mail to be diverted from any post office box in Borrower's name to a post
office box or other address designated by Lender; demand, sue for, collect and
receive monies due or to become due on any Accounts and to settle, compound,
compromise or extend the time of payment of any Account or other Collateral upon
terms acceptable to Lender without releasing Borrower from any liability to
Lender, and do such other and further acts in Borrower's name which Lender may
deem necessary or desirable to enforce any of the terms of this Agreement or to
collect any of the Obligations or realize upon any Collateral.  This
power, being coupled with an interest, is irrevocable.

    

    4.6 Books and
Records.

     

    Borrower
irrevocably authorizes all accountants and third parties to disclose and deliver
to Lender, at Borrower's expense, all financial information, books and records,
work papers, management reports and other information in their possession
regarding Borrower.  Borrower will not enter into any agreement with
any accounting firm, service bureau or third party to store Borrower's books or
records at any location other than Borrower's Address or at one or more of the
business locations set forth in Schedule F hereto without
first obtaining Lender's written consent (which consent may be conditioned upon
such accounting firm, service bureau or other Person agreeing to give Lender the
same rights with respect to access to books and records and related rights as
Lender has under this Agreement).

     

    SECTION  5. REPRESENTATIONS
AND WARRANTIES.

     

    5.1 General.

     

    To induce
Lender to enter into this Agreement and make Advances, Borrower represents and
warrants that Borrower's legal name is exactly as set forth on the signature
page of this Agreement; Borrower is duly organized and validly existing under
the laws of the State of Florida and is qualified to do business in each state
where such qualification is required, all of which are listed on Schedule F attached hereto;
the Lien granted by Borrower in the Collateral is and will at all times remain a
duly perfected, first priority Lien in such Collateral; Borrower is able to pay,
does pay and will continue to pay its debts as they mature in the ordinary
course of business; the most recent financial statements provided to Lender
accurately reflect Borrower's financial condition as of that date and that there
has been no material adverse change in Borrower's financial condition since the
date of those financial statements; there are no actions, suits or other legal
proceedings of any kind now pending or, to Borrower's knowledge, threatened
against Borrower; no Default or Event of Default exists hereunder; Borrower has
never carried on business under or used any name other than its legal name and
the trade names or trade styles listed on Schedule F attached hereto,
and has obtained all consents, approvals and authorizations of, made all
declarations or filings with, and given all notices to, all Governmental Units
and all other Persons as is required or necessary to its assets and to carry on
its business, and Borrower has not been notified by any such Governmental Unit
or other Person that such Governmental Unit or other Person has rescinded or not
renewed, or intends to rescind or not renew, any such license, consent,
accreditation, approval or authorization. Each of the foregoing
representations and warranties shall be deemed reaffirmed and remade as of the
date of each Advance hereunder and shall not be affected by any knowledge of, or
any investigation by, Lender.  The continuing accuracy of each of the
foregoing representations and warranties shall be a condition precedent to each
Advance.

     

    
      
        
        

      

      
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    5.2 Accounts.

     

    Lender
may rely, in determining which Accounts are Eligible Accounts, on all statements
and representations made by Borrower with respect to any Account. With respect
to each Account, Borrower warrants that (i) all information relating to such
Account that has been delivered to Lender is true and correct in all material
respects, such Account has been invoiced after the date the services or goods
giving rise to such Account were rendered or provided in the ordinary course of
business, as applicable, all information set forth in the invoice is true,
complete and correct in all material respects, Borrower has delivered to the
Account Obligor all requested supporting claim documents and each invoice
contains the Payment Notice to remit payments as set forth in Section 4.2; (ii)
the Account and any goods sold in respect of such Account are the Borrower’s
exclusive property and are not and will not be, subject to any consignment, sale
on approval, sale or return or “bill and hold” arrangement or any Lien other
than in Lender’s favor; (iii) any goods the sale or other disposition of which
give rise to the Account or other right to payment are not (and will not at any
time be) subject to any Lien other than in Lender’s favor; (iv) all amounts
payable in respect of the Account are payable in Dollars; (v) the Account
Obligor has accepted the goods or services relating to the Account; (vi) the
Account Obligor owes and is obligated to pay the full amount stated in the
invoice relating to the Account according its terms, without dispute, offset,
deduction, defense or counterclaim; (vii) the Account does not arise from a sale
to an Affiliate or a sale to a consumer of goods to be used for personal, family
or household purposes; (viii) it has absolute ownership of and title to the
Account; (ix) the Account is not evidenced by any instrument, negotiable
document, warehouse receipt or chattel paper; (x) prior to the date on which the
Account arose, it had not received notice of the insolvency of the Account
Obligor in respect of such Account or the commencement of any Insolvency
Proceedings by or against such Account Obligor.

     

    5.3 Borrower
Reports.

     

    Borrower
will provide Lender the reports listed below in a format and frequency
acceptable to the Lender. All reports, which are to be submitted in Excel format
and/or via direct data submission to an online computer system authorized and in
form and substance acceptable to Lender, are due as follows: (i) Borrowing Base
Certificate is due with each funding request and to be delivered no later than
11:00 AM EST or DST, whichever is in effect; (ii) a detailed invoice date aging
of the Accounts is due each day not later than 11:00 AM EST or DST, whichever is
in effect; (iii) a complete customer list of all Accounts with contact
information (name of primary contact, address and telephone number) is due at
the beginning of each calendar quarter and (iv) a summary listing of Inventory
stating approximate values and location is due no later than the fifth Business
Day following each month end.

     

    SECTION  6. COVENANTS.

     

    6.1 Affirmative
Covenants.

     

    Borrower
shall: permit representatives of Lender from time to time, as often as
may be reasonably requested, but only during normal business hours, to
inspect and appraise the Collateral and to inspect, audit, and make
extracts from Borrower's books and records and to discuss Borrower's
financial affairs with Borrower's independent accountants; shall keep
adequate records and books of account with respect to its business
activities in accordance with prudent accounting practices; shall cause to
be prepared and furnished to Lender, in accordance with GAAP within 30 days
after the end of each month, an unaudited balance sheet of Borrower and its
subsidiaries and related unaudited statements of income and cash flow for
such month and for the portion of Borrower's fiscal year then elapsed, on a
consolidated and consolidating basis and certified by an authorized officer of
Borrower; shall cause to be prepared and furnished to Lender, in accordance with
GAAP within 90 days after the end of each fiscal year of Borrower, compiled financial
statements of Borrower and its subsidiaries as of the end of such fiscal year,
on a consolidated and consolidating basis; shall pay and discharge all taxes
prior to the date on which such taxes become delinquent or penalties attach
thereto; shall comply with all Applicable Laws; shall carry property,
liability and other insurance, with insurers acceptable to Lender, in such form
and amounts, and with such deductibles and other provisions as Lender shall
require, with each such insurance policy naming Lender as loss payee or
additional insured pursuant to a form of endorsement acceptable to Lender; shall
promptly notify Lender of all disputes or 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    claims
relating to Accounts; and shall cause each Obligor to deliver to Lender an
updated financial statement as requested by Lender, but in no event less
frequently than annually.

    

    6.2 Negative
Covenants.

     

    Borrower
will not: merge or consolidate with another Person, form any new subsidiary or
acquire any interest in any Person; acquire any assets except in the ordinary
course of business and as otherwise permitted by this Agreement and the other
Loan Documents; enter into any transaction outside the ordinary course of
business; sell or transfer any Collateral or other assets, except that Borrower
may sell finished goods Inventory in the ordinary course of its business; make
any loans to, or investments in, any Affiliate or other Person in the form of
money or other assets; incur any debt outside the ordinary course of business;
guarantee or otherwise become liable with respect to the obligations of another
party or entity; pay or declare any dividends or other distributions on
Borrower's equity interests (except for dividends payable solely in equity
interests of Borrower); redeem, retire, purchase or otherwise acquire,
directly or indirectly, any of Borrower's equity interests; make any change in
Borrower's capital structure; dissolve or elect to dissolve; pay any principal
or interest on any indebtedness owing to an Affiliate, enter into any
transaction with an Affiliate other than on arms-length terms; compromise or
settle any Account for less than the full amount thereof, grant any extension of
time of payment of any Account, release (in whole or in part) any Account
Obligor or other Person liable for the payment of any Account or grant any
credits, discounts, allowances, deductions, return authorizations or the like
with respect to any Account other than in the ordinary course of business and
provided that the same is promptly reported in writing to Lender; or agree to do
any of the foregoing.

    

    6.3 Financial and Other
Covenants.

     

    Borrower
shall at all times comply with the financial and other covenants set forth in
the Schedule E attached
hereto and submit the Certificate of Compliance in the form provided as Exhibit A attached
hereto.

     

    SECTION  7. EVENTS
OF DEFAULT AND REMEDIES.

     

    7.1 Events of
Default.

     

    The
occurrence of any of the following events shall constitute an "Event of
Default" under this Agreement, and Borrower shall give Lender immediate
written notice thereof: (i) Borrower shall fail to pay any of the Obligations on
the due date thereof (whether due at stated maturity, on demand, upon
acceleration, or otherwise); (ii) any representation, warranty, or other
statement to Lender by or on behalf of Borrower, whether made in or
furnished in compliance with or in reference to any of the Loan Documents,
proves to have been false or misleading in any material respect when made; (iii)
Borrower shall fail or neglect to perform, keep, or observe any covenant
contained in this Agreement or any of the other Loan Documents; (iv) Borrower
shall cease to be solvent or shall cease to pay, or be unable to pay, its debts
and other obligations as the same become due and payable; (v) any Insolvency
Proceeding shall be commenced by or against Borrower or any Obligor; (vi) one or
more judgments or orders for the payment of money shall be entered against
Borrower in an aggregate amount of more than $50,000.00; (vii) any Obligor shall
revoke or attempt to revoke or terminate, or fail to confirm Obligor's liability
under, any guaranty to which any Obligor is a party; (viii) the transfer by the
present shareholders or members (as listed on Schedule G attached hereto) of
Borrower to any other person or entity any or all of the common stock or other
ownership interests of Borrower outstanding or in treasury as of the date
hereof, or that in the event of any transfer by operation of law, Borrower fails
to immediately notify Lender; (ix) any instruction or agreement regarding the
Remittance Address and procedures related thereto is amended or terminated
without the written consent of Lender, or if Borrower fails, within three
Business Days of receipt, to forward Collections it receives with respect to any
Accounts to the Remittance Address; (x) any default shall occur under any other
agreement or arrangement between Borrower and Lender; (xi) any guarantor of any
of the Collateral shall revoke or attempt to revoke, or shall dispute, such
guaranty of any of the Obligations; (xii) any failure of any Obligor to furnish
Lender current financial information upon request; (xiii) any failure of any
Obligor or any pledgor of any security interest in the Collateral (the
"Pledgor") to observe or perform any agreement, covenant or promise contained in
any agreement, instrument or certificate executed in connection with the
granting of a security interest in any Collateral to secure the 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Obligations;
(xiv) any loss, theft, substantial damage, destruction, sale, foreclosure of or
encumbrance to any of the Collateral, or the making of any levy, seizure or
attachment thereof or thereon or the rendering of any judgment or lien or
garnishment or attachment against any Obligor or its property, whether actual or
threatened; (xv) the death, dissolution, termination of existence, insolvency,
business failure, appointment of a receiver of any part of the property of,
assignment for the benefit of creditors by, or the commencement of any
proceeding under any bankruptcy or insolvency laws, state or federal, by or
against Borrower or any other Obligor; (xvi) any discontinuance or termination
of any guaranty of any of the Obligations by a guarantor;  (xvii) any
amendment or termination of a financing statement naming the Borrower as debtor
and the Lender as secured party, or any corrective statement with respect
thereto, is filed without the prior written consent of the Lender; (xviii) any
Account remaining unpaid for a period of ninety-one (91) days from the date of
any Advance under this Agreement with respect thereto; (xix) if the Collateral
declines in value or for any reason becomes insufficient in Lender's sole and
exclusive judgment to secure the repayment of the Obligations and Borrower,
after demand, fails or refuses to substitute and/or make additions to the
Collateral, or pay down the Obligations satisfactory to Lender; or (xx) Lender
deeming itself insecure as to the ability of Borrower to repay the Obligations,
or as to the sufficiency of the Collateral.

    

    7.2 Remedies.

     

    Without
in any way limiting the right of Lender to demand payment of any portion of
the Obligations payable upon demand in accordance with this Agreement, upon
or after the occurrence of an Event of Default (and for so long as such Event of
Default shall exist), Lender may in its discretion declare the principal of and
accrued interest on the Advances and all other Obligations outstanding to be,
and whereupon the same shall thereupon become without further notice or demand
(all of which notice and demand Borrower expressly waives), forthwith due and
payable and Borrower shall forthwith pay to Lender the entire principal of
and accrued and unpaid interest on the Advances and other Obligations,
together with reasonable attorneys' fees and court costs if such principal
and interest are collected by or through an attorney at law, and Lender may
terminate this Agreement.  In addition, Lender may, in its discretion,
at any time or times exercise all of the rights and remedies of a secured party
under the UCC or any other Applicable Law and all other legal and equitable
rights to which Lender may be entitled under any of the Loan Documents, all of
which rights and remedies shall be cumulative and shall be in addition to any
other rights or remedies contained in any of the Loan Documents or available
pursuant to Applicable Law, and none of which shall be
exclusive.  Borrower agrees that any requirement of notice to
Borrower of any proposed public or private sale or other disposition of any
Collateral by Lender shall be deemed reasonable notice thereof, if given at
least seven (7) days prior thereto.  Lender may purchase all or any
part of the Collateral at a public sale or, if permitted by Applicable
Law, at any private sale, and, in lieu of actual payment of such purchase
price, may set off the amount of such price against the outstanding
Obligations.  The proceeds realized from any sale or other
disposition of Collateral may be applied first to any Extraordinary
Expenses incurred by Lender, second to interest accrued with respect to any
of the Obligations, and then to the principal balance of the
Obligations.  If any deficiency shall arise, Borrower and each Obligor
shall remain liable to Lender therefor.  The failure or delay of
Lender to require strict performance by Borrower of any provision of the
Loan Documents or to exercise or enforce any rights, Liens, powers, or
remedies under any of the Loan Documents shall not operate as a waiver
of such performance, liens, rights, powers, and remedies, but all such rights,
Liens, powers, and remedies shall continue in full force and effect until all of
the Obligations have been fully satisfied.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    SECTION  8. RELEASE
AND INDEMNITY.

     

    8.1 Release.

     

    Borrower
hereby releases Lender and its affiliates and their respective directors,
officers, employees, attorneys and agents and any other Person affiliated with
or representing Lender (the "Released
Parties") from any and all liability arising from acts or omissions under
or pursuant to this Agreement, whether based on errors of judgment or mistake of
law or fact, except for those arising from the gross negligence or willful
misconduct of Lender or any of the Released Parties.  In no
circumstance will any of the Released Parties be liable for lost profits or
other special or consequential damages.  Such release is made on the
date hereof and remade upon each request for an Advance by
Borrower.

     

    8.2 Indemnity

     

    Borrower
hereby agrees to indemnify the Released Parties and hold them harmless from and
against any and all claims, debts, liabilities, demands, obligations, actions,
causes of action, penalties, costs and expenses (including attorneys' fees), of
every nature, character and description, which the Released Parties may sustain
or incur based upon or arising out of any of the transactions contemplated by
this Agreement or the other Documents or any of the Obligations or any other
matter, cause or thing whatsoever occurred, done, omitted or suffered to be done
by Lender relating to Borrower or the Obligations (except any such amounts
sustained or incurred as the result of the gross negligence or willful
misconduct of the Released Parties).  Notwithstanding any provision in
this Agreement to the contrary, the indemnity agreement set forth in this
Section shall survive any termination of this Agreement.

    

     

    SECTION  9. TERM.

     

    9.1 Effectiveness of
Agreement.

     

    This
Agreement will become effective when executed by Borrower and accepted by Lender
in the State of Georgia (the “Effective Date”), and will continue in effect for
an initial term of three(3) years (the “Initial Term”), and will continue
thereafter automatically renewing for a period of one year (the “Renewal Term”)
unless terminated by either party as set forth in Section 9.2 of this Agreement
or as otherwise provided herein. Unless sooner demanded, all Obligations will
become immediately due and payable, without further notice or demand, upon any
termination of this Agreement.

    

    9.2 Termination.

     

    Borrower
may terminate this Agreement only as of an Anniversary Date and then only by
giving Lender at least sixty (60) days prior written notice of termination,
whereupon this Agreement shall terminate on said Anniversary
Date.  Lender may terminate this Agreement at any time by giving
Borrower at least sixty (60) days prior written notice of termination, provided
Lender may terminate this Agreement immediately without prior notice to Borrower
at any time an Event of Default exists and this Agreement shall be deemed to
have automatically terminated upon the commencement of any Insolvency Proceeding
by Borrower.

    

    9.3 Early Termination
Fee.

     

    If this
Agreement is terminated by Borrower, automatically on the commencement of an
Insolvency Proceeding by Borrower (and whether such termination occurs on an
Anniversary Date or otherwise), or by Lender at any time after the occurrence of
and Event of Default, Lender will be entitled to a termination fee (the "Early Termination
Fee"), as liquidated damages for its loss of the benefit of the bargain
and not as a penalty (the parties acknowledging that the termination fee is a
reasonable calculation of Lender's loss of the benefit of the bargain from any
such 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    termination).  The
Early Termination Fee, calculated as follows, shall be due and payable on the
effective date of termination and thereafter shall bear interest at a rate equal
to the highest rate applicable to any of the Obligations:

    

    
      	
              i.  

            	
              three
      (3.00)% percent of the Maximum Loan Amount, if terminated prior to the
      first Anniversary Date of the Initial
Term;

            

    

    

    
      	
              ii.  

            	
              two
      (2.00)%  percent of the Maximum Loan Amount, if terminated after
      the First Anniversary Date but prior to the second Anniversary Date of the
      Initial Term;

            

    

    

    
      	
              iii.  

            	
              one
      (1.00)% percent of the Maximum Loan Amount, if terminated after the Second
      Anniversary Date but prior to the third Anniversary Date of the Initial
      Term, or if a Renewal Term is in effective, if terminated prior to the
      Anniversary Date of the then current Renewal
  Term.

            

    

    

    9.4 Effect of
Termination.

     

    No
termination shall affect or impair any right or remedy of Lender or relieve
Borrower of any of the Obligations until all of the Obligations have been
indefeasibly paid in full or performed.

     

    SECTION  10. GENERAL
PROVISIONS.

     

    10.1 Miscellaneous

     

    This
Agreement shall be governed by and construed in accordance with the
internal laws of the State of Georgia; may not be amended, except by
written agreement of Borrower and Lender; expresses the entire understanding of
the parties hereto with respect to the subject matter hereof; may be
executed in one or more counterparts, each of which shall constitute an
original, but all of which taken together shall constitute but one and the same
instrument; and shall be binding upon and inure to the benefit of the respective
successors and assigns of Borrower and Lender (provided that Borrower may not
assign or transfer any of its rights under this Agreement or other Loan
Documents without the prior written consent of Lender).  The paragraph
and section headings in this Agreement are for convenience of reference only and
shall not affect the substantive meaning of any provision of this
Agreement.  Time is of the essence of this Agreement and all of the
other Loan Documents.  All notices given under this Agreement shall be
in writing and shall be given by hand delivery by a reputable private delivery
service, by regular first-class mail or certified mail return receipt requested,
addressed to Lender or Borrower at the address set forth hereinabove, or by
facsimile transmission to Borrower at (407) 363-4574 or Lender at (770)
493-5532, or such other address or facsimile number as may be designated in
writing by one party to the other delivered in accordance with the provisions
hereof.

    

    10.2 Consent
to Forum. 

     

    Borrower
hereby consents to the non-exclusive jurisdiction of any United States federal
court sitting in or with direct or indirect jurisdiction over the Northern
District of Georgia or in any Georgia state or superior court sitting in Fulton
County, Georgia, in any action, suit or other proceeding arising out of or
relating to this Agreement or any of the other Loan Documents and Borrower
irrevocably agrees that all claims and demands in respect of any such action,
suit or proceeding may be heard and determined in any such court and irrevocably
waives any objection it may now or hereafter have as to the venue of any such
action, suit or proceeding brought in any such court or that such court is an
inconvenient forum.  Nothing herein shall limit the right of Lender to
bring proceedings against Borrower or with respect to any Collateral in the
courts of any other jurisdiction.  Any judicial proceeding commenced
by Borrower against Lender involving, directly or indirectly, any matter in any
way arising out of, related to or connected with any Loan Document shall be
brought only in a United States federal court sitting in or with direct
jurisdiction over the Northern District of Georgia or in any Georgia state or
superior court sitting in Fulton County, Georgia.  Nothing in this
Agreement shall be deemed to preclude the enforcement by Lender of
any judgment or order obtained in such forum or the taking of any action
under this Agreement to enforce same in any other appropriate forum or
jurisdiction.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    10.3 Waivers by
Borrower.

     

    To the
fullest extent permitted by Applicable Law, Borrower waives (i) the right
to trial by jury (which Lender hereby also waives) in any action, suit,
proceeding or counterclaim of any kind arising out of or related to any of
the Loan Documents, the Obligations or the Collateral;
(ii) presentment, demand and protest and notice of presentment, protest,
default, non-payment, maturity, release, compromise, settlement, extension or
renewal of any or all commercial paper, accounts, contract rights, documents,
instruments, chattel paper and guaranties at any time held by Lender on which
Borrower may in any way be liable and hereby ratifies and confirms whatever
Lender may do in this regard; (iii) notice prior to taking possession or
control of the Collateral or any bond or security which might be required by any
court prior to allowing Lender to exercise any of Lender's remedies;
(iv) the benefit of all valuation, appraisement and exemption laws;
(v) any claim against any Lender, on any theory of liability, for special,
indirect, consequential, exemplary or punitive damages (as opposed to
direct or actual damages) in respect of any claim for breach of contract or any
other theory of liability arising out of, or the taking of any enforcement
action, or related to any of the Loan Documents, any transaction thereunder or
the use of the proceeds of any Advances; and (vi) notice of acceptance
hereof.  Borrower acknowledges that the foregoing waivers are a
material inducement to Lender's entering into this Agreement and that Lender is
relying upon the foregoing waivers in its future dealings with
Borrower.  Borrower warrants and represents that it has reviewed the
foregoing waivers with its legal counsel and has knowingly and voluntarily
waived its jury trial rights following consultation with
legal  counsel.  In the event of litigation, this Agreement
may be filed as a written consent to a trial by the court.

     

    IN
WITNESS WHEREOF, Borrower and Lender have signed this Agreement as of the date
set forth in the heading.
 

    
      	BORROWER:
	 
	
              OE
      SOURCE, L.C.

            
	 
	
              By:

            	 
	
              Name:

            	
              Harry
      Christenson

            
	
              Title:

            	
              Chief
      Financial Officer

            

    

     

    
      	Attest: 	 
	 	 
	By: 	 
	Name: 	 
	Title: 	 

    

     

    
      	
              LENDER:

              PRESIDENTIAL
      FINANCIAL CORPORATION

            
	 
      
	
              By:

            
	
              Name:

            
	
              Title:

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
A

    

    Definitions

     

    This
Schedule is an integral part of the Loan and Security Agreement dated August 26,
2008, between OE SOURCE, L.C. and PRESIDENTIAL FINANCIAL
CORPORATION (the "Agreement").]

     

    In addition to terms defined in the
Agreement, as used in the Agreement, the following terms have the following
meanings:

     

    “Accounts”
means all of Borrower’s now owned or existing and future acquired or
arising  "accounts", as such term is defined  in
the  UCC, and any and all other receivables (whether or not
specifically listed on schedules furnished to Lender), including, without
limitation, all accounts created by, or arising from, all of Borrower's sales,
leases,  rentals or other dispositions of goods or renditions of
services to its  customers (whether or not they have been earned by
performance), including but not limited to, those accounts arising from sales,
leases, rentals or other dispositions of goods or software sold or licensed or
rendition of services made under any of the trade names,  logos or
styles of Borrower, or through any division of Borrower, all contract rights,
notes, drafts, acceptances, general intangibles and other forms of obligations
and receivables, and any and all Supporting Obligations in respect
thereof.

    

    “Accounts and
Securities” means
all of Borrower’s money, deposit accounts, letters of credit, letter of credit
rights and investment property.

    

    “Account
Obligor” means the Person primarily obligated to pay an Account or
Chattel Paper.

     

    “Account Obligor
Claim” means to any Account Obligor such Account Obligor’s dispute,
claim, offset, defense, deduction, rejection, recoupment, counterclaim or contra
account with respect to any Account Obligor, including any dispute or claim
relative to price, terms, quality, quantity, performance, workmanship
(regardless of the merits of any such dispute or claim).

     

    “Accounts Advance
Rate” means a percentage established by Lender, which shall be
eighty-five percent (85.00%) as of the date of this Agreement, and which may be
increased or decreased by Lender from time to time in the exercise of its
discretion.

     

    “Advance”
or “Advances”
means a loan advance under this Agreement.

     

    “Affiliate or
Affiliates” means, with respect to
any Person, any Person that owns or controls directly or indirectly such Person,
any Person that controls or is controlled by or is under common control with
such Person, and each of such Person's senior executive officers, directors,
partners and, for any Person that is a limited liability company, such Persons,
managers and members.  For purposes hereof, “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 any equity interest, by contract or otherwise.

     

    “Anniversary Date”
means the day that is 365 (or 366, as applicable) days after the date of this
Agreement and the same date in each year thereafter.

     

    “Applicable
Law” means all laws, rules and regulations applicable to the Person,
conduct, transaction, covenant or Loan Document in question, including all
applicable common law and equitable principles; all provisions of all applicable
state, federal and foreign constitutions, statutes, rules, regulations and
orders of governmental bodies; and orders, judgments and decrees of all courts
and arbitrators.

     

    “Bankruptcy
Code” means the United States Bankruptcy Code (11 U.S.C. § 101 et
seq.).

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    “Borrowing Base
Certificate” means the report prepared by Borrower, in the form set forth
on Schedule D attached
hereto, which provides the numerical value of Collateral as of a specific date
signed by an authorized officer of Borrower.

     

    “Business
Day” means a day other than a Saturday or Sunday or any other day on
which Lender or banks in Georgia are authorized to close.

     

    "Capital
Leases" means, for the applicable period, capital leases, conditional
sales contracts and other title retention documents relating to the acquisition
of capital assets (as classified in accordance with GAAP).

    

     “Chattel
Paper” means a record or records that evidence both a monetary obligation
and a security interest in specific goods, a security interest in specific goods
and software used in the goods, a lease of specific goods, or a lease of
specific goods and license of software used in the goods. As used in this
paragraph, "monetary obligation" means a monetary obligation secured by the
goods or owed under a lease of the goods and includes a monetary obligation with
respect to software used in the goods.

    “Collateral”
means all property and interests in property in or upon which a Lien is granted
pursuant to this Agreement or the other Loan Documents.

     

    “Collections”
means, with respect to any Account, all collections and other payments on or
with respect to such Account.

    

    “Cost of Goods
Sold" means the cost of goods sold shown on the financial statements of
the Borrower, which are prepared in accordance with GAAP, for the immediately
preceding three (3) months.

    

    “Default”
means any event, which with notice or passage of time, or both, would constitute
an Event of Default.

     

    “Deposit
Accounts” mean any and all demand, time, savings, passbooks or similar
accounts maintained with a bank.

     

    “Deposit Account
Agreement” means in form and substance reasonably acceptable to Lender,
executed and delivered by each Borrower and the applicable deposit
bank.

     

    "Distributions"
means, for the applicable period, the aggregate of all amounts paid or payable
(without duplication) as dividends, distributions or owner withdrawals and
includes any purchase, redemption or othe retirement of any of Borrower's equity
interests, directly or indirectly, and includes return of capital by Borrower to
its equity holders.

     

     “Dollars”
mean the legal tender of the United States of America.

     

    “Earnings before
Interest, Taxes, Depreciation and Amortization ("EBITDA")" means, for the
trailing three-month period, net income (exclusive of any extraordinary or
non-recurring non-cash gains and extraordinary or non-recurring non-cash losses
and other income which is not from the continuing operations
of  Borrower), plus, to the extent deducted from such net income,
Interest expense, income taxes paid and depreciation/amortization expense, all
determined in accordance with GAAP.

     

    “Eligible
Account” means an Account which arises in the ordinary course of business
of Borrower from the rendition or performance of services and/or for the sale of
goods, is payable in Dollars, is subject to Lender's duly perfected Lien and is
deemed by Lender, in its discretion, to be an Eligible
Account.  Without limiting the generality of the foregoing, no Account
shall be an Eligible Account if:

     

    
      	
              i.  

            	
              the
      Account is more than 90 days from invoice date relative to invoices with
      payment terms of 60 days or less);

            

    

    
      	
              ii.  

            	
              the
      Account Debtor has failed to pay twenty-five percent or more of its
      invoices within ninety (90) days of invoice
  date;

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              iii.  

            	
              except
      for Standard Motor Products, Inc., and Robert Bosch, LLC, the total
      obligations of an Account Debtor to Borrower exceed twenty percent of all
      Accounts, unless otherwise approved by Lender in
  writing;

            

    

    
      	
              iv.  

            	
              the
      total obligation of Standard Motor Products, Inc., as Account Debtor to
      Borrower exceed sixty percent (60%) of all Accounts; provided, however,
      all other eligibility criteria shall still apply to Standard Motor
      Products, Inc.

            

    

    
      	
              v.  

            	
              the
      total obligations of Robert Bosch, LLC, as Account Debtor to Borrower
      exceed sixty (60%) of all Accounts; provided, however, all other
      eligibility criteria shall still apply to Robert Bosch,
    LLC.

            

    

    
      	
              vi.  

            	
              the
      Account is subject to any Account Obligor
Claim;

            

    

    
      	
              vii.  

            	
              the
      Account is not payable in Dollars;

            

    

    
      	
              viii.  

            	
              the
      Account is due and owing by an Account Obligor who is an Affiliate of
      Borrower or a Person controlled by an Affiliate of
    Borrower;

            

    

    
      	
              ix.  

            	
              the
      Account is due and owing by an Account Obligor who is not
      creditworthy;

            

    

    
      	
              x.  

            	
              the
      Account is due and owing by an Account Obligator who does not have its
      principal assets and place of business in the United
    States;

            

    

    
      	
              xi.  

            	
              the
      Account is unbilled;

            

    

    
      	
              xii.  

            	
              any
      covenant, representation or warranty contained in the Agreement with
      respect to such Account has been
breached;

            

    

    
      	
              xiii.  

            	
              an
      Insolvency Proceeding has been commenced by or against the Account Obligor
      or the Account Obligor has failed, suspended business or ceased to be
      solvent;

            

    

    
      	
              xiv.  

            	
              the
      Account is subject to a Lien other than a Permitted
  Lien;

            

    

    
      	
              xv.  

            	
              the
      Account is evidenced by Chattel Paper or an Instrument of any kind, or has
      been reduced to judgment;

            

    

    
      	
              xvi.  

            	
              the
      Account represents, in whole or in part, a billing for interest, fees or
      late charges;

            

    

    
      	
              xvii.  

            	
              the
      Account is not evidenced by an invoice, statement or other electronic or
      documentary evidence satisfactory to
Lender;

            

    

    
      	
              xviii.  

            	
              the
      Account has been turned over or submitted to a third party for
      collection;

            

    

    
      	
              xix.  

            	
              such
      Account is in the form of a cost report receivable owing from any
      Governmental Authority, unless Lender has expressly agreed to include it
      in the Borrowing Base as an Eligible Account;
or

            

    

    
      	
              xx.  

            	
              the
      Account is not owing from the United States of America or which amount is
      not owing from the United States of America or any agency, department or
      subdivision thereof, unless a properly executed assignment of claims has
      been received by Lender; or

            

    

    
      	
              xxi.  

            	
              the
      Account does not comply with such other criteria and requirements as may
      be specified from time to time by Lender in its
  discretion.

            

    

    

    “Eligible
Inventory” means Inventory which Lender, in its sole judgment, deems
eligible for borrowing, based on such considerations as Lender may from time to
time deem appropriate. Without limiting the fact that the determination of which
Inventory is eligible for borrowing is a matter of Lender discretion, Inventory
which does not meet the following requirements will not be deemed to be Eligible
Inventory: Inventory which

     

    
      	
              (i)  

            	
              consists
      of boxed finished goods, in good, new and salable condition, which is not
      perishable, not for demonstration purposes, not obsolete or
      unmerchantable, and is not comprised of raw materials,work in process,
      packaging materials or supplies;

            

    

    
      	
              (ii)  

            	
              meets
      all applicable governmental
standards;

            

    

    
      	
              (iii)  

            	
              has
      been manufactured in compliance with the Fair Labor Standards
      Act;

            

    

    
      	
              (iv)  

            	
               conforms
      in all respects to the warranties and representations set forth in this
      Agreement;

            

    

    
      	
              (v)  

            	
              is
      at all times subject to Lender’s duly perfected, first priority security
      interest;

            

    

    
      	
              (vi)  

            	
              is
      situated at a one of the locations set forth on the Schedule F;
      and

            

    

    
      	
              (vii)  

            	
              Lender
      has received a  Landlord Waiver and Agreement, in form and
      substance acceptable to Lender, from  the landlord where the
      Inventory is situated.

            

    

    

    “Extraordinary
Expenses” means all costs and expenses (including legal fees) incurred by
Lender in connection with the enforcement of any of its rights or remedies under
this Agreement, including any costs and expenses incurred in connection with its
repossession of any of the Collateral, collection of any of the Collateral,
storing or removing any of the Collateral, or advertising for sale or selling
any of the Collateral.

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    “Fixed Charge
Coverage Ratio” means, as of the end of the month, the ratio of (a)
EBITDA minus Non-Financed Capital Expenditures, to  (b) Interest plus
Principal Payments plus Distributions Plus Taxes plus Management
Fees.

     

    “Furniture,
Fixtures and Equipment” means all of Borrower's
presently owned and hereafter acquired machinery, furniture, fixtures and
equipment wherever located (all of the foregoing being hereinafter collectively
referred to as the "FF&E");

     

    “GAAP”
means generally accepted accounting principles as in effect from time to time,
consistently applied.

     

    “General
intangibles” means any personal property, including things in action,
other than accounts, chattel paper, commercial tort claims, deposit accounts,
documents, goods, instruments, investment property, letter of credit rights,
letters of credit, money, and oil, gas, or other minerals before extraction. The
term includes payment intangibles and software.

     

    “Governmental
Unit” means a subdivision, agency, department, county, parish,
municipality, or other unit of the government of the United States, a state, or
a foreign country. The term includes an organization having a separate corporate
existence if the organization is eligible to issue debt on which interest is
exempt from income taxation under the laws of the United States.

     

    "Indebtedness for
Borrowed Money" means (i) all liabilities for borrowed money, (A) for the
deferred purchase price of property or services other than customary terms of
sale granted to Borrower, and (B) under leases which are or should be, under
GAAP, recorded as Capital Leases, in each case in respect of which Borrower is
directly or indirectly, absolutely or contingently liable as obligor, guarantor,
endorser or otherwise, or in respect of which Borrower otherwise assures a
creditor against loss, and (ii) all liabilities of the type described in (i)
above which are secured by (or for which the holder has an existing right,
contingent or otherwise, to be secured by) any Lien upon Property, owned by
Borrower, whether or not Borrower has assumed or become liable for the payment
thereof.

     

    “Instruments” mean any and all
negotiable instruments or any other writings that evidence a right to the
payment of a monetary obligation, are not themselves a security agreement or
lease, and are of a type that in ordinary course of business is transferred by
delivery with any necessary endorsement or assignment.

     

    “Insolvency
Proceeding” means any case or proceeding commenced by or against a Person
under the Bankruptcy Code or any other applicable insolvency law; as an
assignment by a Person for the benefit of such Person's creditors; or for the
appointment of a receiver, trustee, or other custodian for a Person or any of
such Person's property.

     

    "Interest"
means, for the applicable period, all interest paid or payable, including, but
not limited to, interest paid or payable on Indebtedness for Borrowed Money,
determined in accordance with GAAP.

     

    “Inventory”
means all of Borrower’s finished goods and inventory, packing and shipping
supplies, all goods intended to be sold or used by Borrower or to be furnished
by Borrower under contracts of service, including all raw materials, goods in
process, finished goods, materials and supplies of every kind and nature, used
or usable in connection with the manufacture, shipping, advertising, selling,
leasing or furnishing of such goods, all documents evidencing or representing
the same and all documents of title, all negotiable and non-negotiable warehouse
receipts representing the same and all products, accounts and proceeds resulting
from the sale or other disposition of the foregoing, that may be rejected,
returned repossessed or stopped in transit and all other items, customarily
classified as inventory (all of the foregoing being hereinafter collectively
referred to as the “Inventory”);

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    “Inventory
Advance Rate” means a percentage established by Lender, which shall be
fifty percent (50%) as of the date of this Agreement, and which may be increased
or decreased by Lender from time to time in the exercise of its
discretion.

    

    "Inventory
Turnover" means, for any month-end, (a) the value of the Inventory of the
Borrower as of the last day of such month, as stated in Borrower’s monthly
financial statement calculated at the lower of cost and fair-market value, on a
first-in, first-out basis and in accordance with GAAP, multiplied by 90 days
divided by (b) the Cost of Goods Sold  for the last three
months.

     

    “Investment
Property" means a security, whether certificated or uncertificated,
security entitlement, securities account, commodity contract, or commodity
account.

    

    “Lien”
means any security interest in, or common law, statutory or contractual lien
with respect to, any property of a Person.  For the purpose of this
Agreement, Borrower shall be deemed to be the owner of any property which it has
acquired or holds subject to a conditional sale agreement or other arrangement
pursuant to which title to the property has been retained by or vested in some
other Person for security purposes.

     

    “Loans”
means all monies advanced by the Lender to the Borrower pursuant to the terms of
this Agreement.

     

    “Loan
Documents” means the Agreement and all notes, guaranties, security
agreements, certificates, landlord's agreements, Bank Agreements, Deposit
Account Agreements and all other agreements, documents and instruments now or
hereafter executed or delivered by Borrower or any Obligor in connection with,
or to evidence the transactions contemplated by, this Agreement.

     

    “Management
Fees” means, for the applicable period, all fees, charges and other
amounts (including without limitation salaries and any other compensation such
as bonuses, pensions and profit sharing payments) due and to become due to any
of Borrower’s Affiliates in consideration for, directly or indirectly,
management, consulting or similar services.

     

    “Maximum
Inventory Loan” means an amount not to exceed $500,000.00; provided
however, draws against inventory shall not exceed draws against Approved
Receivables.

    

    “Maximum Loan
Amount” means $2,000,000.00.

    

    "Non-Financed
Capital Expenditures" means, for the applicable period, Capital
Expenditures not financed with additional long-term debt or Capital
Leases.

     

    “Obligations”
means all present and future Advances, Loans, debts, liabilities, obligations,
guaranties, covenants, duties and indebtedness at any time owing by Borrower or
any Obligor to Lender, whether evidenced by or arising under the Agreement or
any other Loan Document, whether arising from an extension of credit, guaranty,
indemnification or otherwise whether direct or indirect (including those
acquired by assignment and any participation by Lender in Borrower's
indebtedness owing to others), whether absolute or contingent, whether due or to
become due, and whether arising before or after the commencement of a proceeding
under the Bankruptcy Code or any similar statute, including all interest,
charges, expenses, fees, attorney's fees, expert witness fees, audit fees,
letter of credit fees, loan fees, Early Termination Fees and any other sums
chargeable to, or reimbursable by, Borrower under the Agreement or under any
other Loan Document.

     

    “Obligor”
means any guarantor, endorser, acceptor, surety or other person liable on, or
with respect to, the Obligations or who is the owner of any property that is
security for the Obligations, other than Borrower.

     

    “Other
Property” means any and all other property of any nature whatsoever of
Borrower now or hereafter in the possession of, assigned to or hypothecated to
Lender for any purpose, including, but not limited to balances, credits,
deposits, accounts, items and monies of Borrower now or hereafter with Lender
and all dividends and 

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

     

    distributions
on or rights in connection with any such property and all rights of Borrower
earned or to be earned under contracts to sell goods or render
services.

     

    “Payment
Account” means an account maintained by Lender to which all Collections
or other monies from time to time remitted as directed and deposited by Lender
shall be transferred and all other payments by Borrower to Lender shall be sent
in immediately available federal funds.

     

    “Payment
Notice” means the notice placed on each invoice, directing the Account to
remit only to the Remittance Address.  Payment made to any other party
or location will not constitute valid payment of the
invoice.  Notice:  OE SOURCE, L.C., P O Box 105328, Atlanta
GA 30348-5328.

     

    “Permitted
Liens” means Liens in favor of Lender and any other Liens agreed or
consented to by Lender in writing.

     

    “Person”
means any individual, sole proprietorship, partnership, joint venture, limited
liability company, trust, unincorporated organization, association, corporation,
government or any agency or political division thereof, or any other
entity.

     

    “Principal
Payments" means, for the applicable period, the sum of all payments of
principal of any Indebtedness for Borrowed Money.

     

    “Procedures
Letter” means
the letter dated as
of August ___, 2008 issued by Lender and agreed to by Borrower which sets forth the
procedures with respect to Advances and reporting to the extent such procedures
are not covered in this Agreement.

     

    “Proceeds”
means  all substitutions, improvements, accessions, additions,
renewals and replacements of or to any of the Collateral (including, but not
limited to, returned or unearned premiums from any insurance written in
connection with this Agreement) and all proceeds of any of the foregoing,
including, but not limited to, any and all proceeds in the form of Accounts and
Inventory.

     

    “Prime
Rate” means the per annum rate of prime rate of interest quoted in The Wall Street Journal from
time to time.  If the Wall Street Journal Prime
becomes unavailable during the term of this Agreement, Lender may designate an
equivalent substitute index after notice to Borrower.

     

    “Records”
means all of Borrower’s books and records relating to its business or assets,
including records pertaining to any Collateral.  Without limiting the
generality of the foregoing, Borrower’s accounting and financial records will
include all records (whether paper, computer or electronic) data, tapes, discs,
or other media and all programs, files, records and procedure manuals relating
thereto wherever located.

     

    “Supporting
Obligations” mean a letter of credit right or secondary obligation that
supports the payment or performance of an account, chattel paper, a document, a
general intangible, an instrument, or investment property.

     

    "Taxes"
means, for the applicable period, the provision or benefit for income taxes of
Borrower with respect to the applicable period.

     

    “Term”
means the period commencing on the date of this Agreement and ending on the date
on which this Agreement is terminated pursuant to Section 9.2.

     

    “UCC”
means, at any given time, the Uniform Commercial Code as adopted and in effect
at such time in the State of Georgia.

     

    All
accounting terms used in the Agreement, unless otherwise indicated, shall have
the meanings given to such terms in accordance with GAAP.  All other
terms contained in the Agreement, unless otherwise indicated, shall have the
meanings provided by the UCC, to the extent such terms are defined
therein.  The term "including," whenever used in the Agreement, shall
mean "including, but not limited to."  The singular form of any term
shall include the plural form, and vice versa, when the context so
requires.  References to Sections, subsections and Schedules are to
Sections and subsections of, and Schedules to, the Agreement; to agreements and
statutes shall include all amendments thereto and successor statutes in the case
of statutes; to the time of day shall mean the time of day on the day in
question in Atlanta, Georgia; to Lender's discretion means Lender's sole and
absolute discretion.

     

    
      
        
        

      

      
        vi

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
B

    

    Fees
And Expense Reimbursement

    
      

      The
fees and expense reimbursements listed on this schedule are in addition to any
fees listed in the Loan Agreement, any of the Loan Documents or subsequently
agreed to by Lender and Borrower, and are not intended to exclude any expenses
for which Borrower is required to reimburse Lender under the Loan Agreement or
any of the Loan Documents.

    

     

    (a) Service Charge.  A
service charge of .75% based on the average daily loan balance, payable on the
fifteenth (15th) and last day of each month so long as any of the Obligations
are outstanding; provided however, a minimum monthly service
charge of $5,625.00 shall be charged to Borrower’s loan account.

     

    (b) Facility Fee.  Upon
execution of this Agreement, a facility fee equal to one percent 1.00% percent
of the Maximum Loan Amount, will be considered earned and due at closing and
shall be charged annually thereafter on the Anniversary Date.

     

    (c) Overadvance Fee.  A
Fee in the amount of $100.00 per day shall be charged and payable on each day
that an Overadvance is in existence.

     

    (d) Wire Fee.  A charge
of $30.00 for each outgoing wire sent to, or on behalf, of Borrower, and a
charge of $15.00 for each incoming wire received for the benefit of
Borrower.  The Wire Fee is subject to change without
notice.

     

    (e) Automated Clearing House (“ACH”)
Fee.  A charge of $10.00 for each outgoing ACH transaction and
a charge of $10.00 for each incoming ACH transaction.  The ACH fee is
subject to change without notice.

     

    (f) Amendment Fee.  A
minimum fee of $500.00 for each modification or amendment to this
Agreement.

     

    (g) Field
Examination.  A fee of $750.00 per day plus out of pocket
expenses for each field examination conducted by or on behalf of
Lender.

     

    (h) Verification Fee:  A
fee of $25.00 per hour for verification of Collateral.

     

    (i) Remittance Notification to Debtor
Fee:  A fee of $1.00 per letter, plus the cost of
mailing.

     

    (j) Late Reporting Fee: A fee of
$10.00 per day for each report not received by Lender as required under this
Agreement, the Procedures Letter or any other loan document.

    

    (k) Change of Bank Routing Instruction
Fee: A fee of $25.00 for each change of Borrower’s bank of record for
wires and ACHs.

    

    (l) Reconciliation Fee: A fee
of $25.00 will be
charged for each hour, or portion thereof, required for Lender to perform an
account or report reconciliation as a result of improper, inaccurate, or
insufficient submission of information by Borrower.

    

    (m) Misdirected Payment
Fee.  For each such occurrence, Borrower agrees to pay to
Lender an amount equal to fifteen percent (15%) of any payment on account of any
invoice where said payment has been received by Borrower and not delivered in
kind or the proceeds paid by Borrower to Lender within 3 Business Days of
receipt of such payment by Borrower.

     

    
      
        
        

      

      
        vii

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
C

    

    Permitted
Liens

    

    Landlord
lien for property located in any leased premises for which Lender has received
an executed Landlord Waiver acceptable in form and substance to
Lender.

     

    
      
        
        

      

      
        viii

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
D

    

    Borrowing
Base Certificate

    

    TO BE
PROVIDED BY LENDER AT CLOSING

     

    
      
        
        

      

      
        ix

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
E

     

    Financial
And Other Covenants

    

    

    

    

    Minimum Fixed-Charge
Ratio:

    

    At each
month end, Borrower shall have a Fixed Charge Coverage Ratio of not less
than:

    

    
      	 
      	
              Ratio

            
	
              Month
      ending August 31, 2008

            	
              1.0
      to 1.0

            
	
              Month
      ending September 30, 2008

            	
              .75
      to 1.0

            
	
              Each
      subsequent month thereafter

            	
              1.0
      to 1.0

            

    

    

     

    Inventory
Turnover:

    

    At each
month end, Borrower shall have a Inventory Turnover of not less than 18
days

     

    
      
        
        

      

      
        x

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
F

     

    Locations
And Jurisdictions In Which Borrower Is Authorized To Do Business

    

    

    Locations

    Borrower
currently has the following business and inventory locations, and no
other:

    

    Chief Executive
Offices

    5422
Carrier Drive, Suite 309, Orlando Fl 32819

     

    Other
Locations:

    

    Inventory
Locations:

    (If
different from above)

    

    Jurisdictions (Include Legal
Name and all Tradename)

    

    
      	
              Name

            	
              Type
      of Entity (domestic corporation, foreign corporation, partnership, limited
      liability company, D/B/A, tradename, etc.)

            	
              State

            
	
              OE
      SOURCE, L.C.

            	
              Limited
      Liability Company

            	
              Florida

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    

    All
other names used and jurisdictions not listed above (past five
years)

    

    
      	
              Name

            	
              Type
      of Entity (domestic corporation, foreign corporation, partnership, limited
      liability company, D/B/A, tradename, etc.)

            	
              State

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    
      
        
        

      

      
        xi

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
G

     

    Capital
Structure

    

    
      	
              Class
      of

              Stock/Membership
      Interest

            	
              Record
      Owner

            	
              Number
      of Shares Issued and Outstanding/

              Percent
      of Membership Interest

            	
              (Corporations
      Only)

              Number
      of Shares Authorized but Unissued

            
	 
      	
              General
      Automotive Company, Inc.

            	
              100%

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

    

    
      
        
        

      

      
        xii

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

    

    FORM OF
CERTIFICATE OF COMPLIANCE

    

    [Use
Borrower Letterhead with this Form]

    

    

    [Date]

     

    To:  Credit
Manager

     

    This is
to certify that, in accordance with Section 6.1 of the Loan and Security
Agreement between OE Source, L.C., and Presidential Financial Corporation dated
August _____, 2008 (the “Loan Agreement”;)the attached Financial Statements are
complete and true and have been prepared in conformance with GAAP.  In
addition there are no Defaults or Events of Default continuing as of such
date [if there are acceptable
exceptions, list them].

    

    Also
attached are the covenant calculations used in determining compliance with the
financial covenants contained in Schedule E of the Loan Agreement.

    

    Capitalized
terms used herein are as defined in the Loan Agreement

    

    Very
truly yours,

    

    

    ___________________

    

    Chief
Financial Officer, OE Source, L.C.

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