Document:

exhibit1021.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.2

CONSULTING AGREEMENT, dated as of September 4, 2007, (this “Agreement”) by and between ELITE PHARMACEUTICALS, INC., a Delaware corporation with its principal place of business located at 165 Ludlow Avenue, Northvale, NJ
07467 (the “Company”), on the one hand, and Bridge Ventures, Inc., a Florida corporation, with offices located at 1241 Gulf of Mexico Drive, Sarasota, Florida 34228 (“Bridge”), and Saggi Capital Inc., a Florida corporation, with
offices located at 500 West Highway 316, Citra, Florida 32113 (“Saggi”, together with Bridge, the “Consultants”), on the other hand. 

     WHEREAS, the Consultants have relationships with various financial institutions and organizations, as well as with venture capital sources, companies, and/or individuals that seek to invest in
emerging growth companies, including those in the pharmaceutical sector, and have developed certain expertise in advising public companies in connection with investor relations matters; and 

     WHEREAS, the Company desires to obtain the services and advice of the Consultants and the Consultants desires to render such services and advice to the Company.

     NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, and for other good and valuable consideration, the parties agree as follows: 

1. SERVICES

     
  The Consultants agree to perform such consulting and advisory services as may be requested by the Chief Executive Officer of the Company or his designee and as the Company and the Consultants shall agree from time to time,
including without limitation, the introduction of potential contacts and investors, the attraction of investment capital and providing investor relations services and to generate investor interest in the Company. The Consultants shall render such
services either in person (at the Company’s facilities or at such other location as is reasonably acceptable to the Company and the Consultants) or by telephone, as the Company may reasonably request.  The parties hereto agree that Harris
Freedman (“Freedman”) and Sharon Will (“Will”, and together with Freedman, the “Consultant Representatives”) shall deliver all of the services on behalf of the Consultants hereunder.

2. TERM

     
 The term of this Agreement shall commence on the date hereof and continue for a period of one hundred eighty (180) days from the date hereof (the “Term”), subject to earlier termination by the Company under Section 4(e)
hereof.

 

3. COMPENSATION 

     
3.1. Cash Compensation 

               During the Term, the Company will pay the Consultants, collectively, consulting fees in the amount of Ten Thousand Dollars (US$10,000) per calendar month (“Monthly Consulting Fee”) and shall reimburse the reasonable out of pocket expenses approved by the Company and necessarily incurred by the Consultants in connection with the performance of its services
hereunder. The Consultants will invoice the Company for consulting fees and expenses on a monthly basis, in a form reasonably satisfactory to the Company, and the Company agrees to pay such invoices on a monthly basis after receipt thereof.
Consulting fees for any partial period shall be prorated.  The Monthly Consulting Fee shall be payable by the Company to Bridge and Bridge shall forward to Saggi the agreed-upon portion of the Monthly Consulting Fee payable to Saggi under this
Agreement, as may be agreed to by Bridge and Saggi from time to time.

      3.2. Equity Compensation 

               Upon the execution of this Agreement, the Company shall grant to the Consultants five-year warrants (the “Warrants”) to purchase,
in the aggregate, up to one hundred fifty thousand (150,000) shares (the “Warrant Shares”) of Common Stock, par value $0.01 per share, of the Company (the “Common Stock”). The Warrants shall be in substantially the form attached hereto as Exhibit A and shall be issued to the Consultants in the amount set forth below: 

	
Warrant Holder
		 
		
Warrant Shares
	
	
Bridge Ventures, Inc.
		 
		
75,000
	
	
Saggi Capital Inc.
		 
		
75,000
	

4. PROPRIETARY INFORMATION

               (a) The Consultants and the Consultant Representatives agree that all information, whether or not in writing, of a private, secret or confidential nature concerning the Company’s products,
business, business relationships or financial affairs (collectively, “Proprietary Information”) is and shall be the exclusive property of the Company.  By way of illustration, but not limitation, Proprietary Information may include
inventions, products, processes, methods, techniques, formulas, compositions, compounds, projects, developments, plans, research data, clinical data, financial data, personnel data, computer programs, customer and supplier lists and contacts at or
knowledge of customers or prospective customers of the Company. The Consultants and the Consultant Representatives will not disclose any Proprietary Information to any person or entity other than employees of the Company or use the same for any
purposes (other than in the performance of its duties as a consultant of the Company) without written approval by an officer of the Company, either during or after the Term. 

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               (b) The Consultants and the Consultant Representatives agree that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program listings or other written,
photographic or other tangible material containing Proprietary Information, whether created by the Consultants, the Consultant Representatives or others, which shall come into its custody or possession, shall be and are the exclusive property of the
Company to be used by the Consultants and the Consultant Representatives only in the performance of its duties for the Company.

               (c) The Consultants’ and the Consultant Representatives’ obligations under this Section 4 shall not apply to any information that (i) is generally known to the public at the time of
disclosure or becomes generally known without the Consultants or the Consultant Representatives violating this Agreement, (ii) is in the Consultants’ or the Consultant Representatives’ possession at the time of disclosure without the
Consultants or the Consultant Representatives violating this Agreement, (iii) becomes known to the Consultants or the Consultant Representatives through disclosure by sources other than the Company without such sources violating any confidentiality
obligations to the Company, or (iv) is independently developed by the Consultants or the Consultant Representatives without reference to or reliance upon the Company’s Proprietary Information. 

               (d) Upon termination of this Agreement or at any other time upon request of the Company, the Consultants and the Consultant Representatives shall promptly deliver to the Company all records, files,
memoranda, notes, designs, data, reports, price lists, customer lists, drawings, plans, computer programs, software, software documentation, sketches, laboratory and research notebooks and other documents (and all copies or reproductions of such
materials) containing or relating to Proprietary Information of the Company. After such delivery, the Consultants and the Consultant Representatives shall not retain any such materials or copies thereof. 

               (e) The Consultants and the Consultant Representatives acknowledge that any breach of the provisions of this Section 4 shall result in serious and irreparable injury to the Company for which the
Company cannot be adequately compensated by monetary damages alone.  The Consultants and the Consultant Representatives agree, therefore, that, in addition to any other remedy it may have, the Company shall be entitled to enforce the specific
performance of this Agreement by the Consultants and the Consultant Representatives and to seek both temporary and permanent injunctive relief (to the extent permitted by law). The Company may terminate this Agreement, effective immediately upon the
giving of written notice, if the Consultants or the Consultant Representatives breaches or threatens to breach any provision of this Section 4. 

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5. REPRESENTATIONS AND WARRANTIES 

      5.1. Representations and Warranties of the Company.

     The Company hereby represents and warrants as of the date hereof to the Consultants as follows: 

                 (a) The Company is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the
transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by such Consultant of the transactions contemplated by this Agreement have been duly authorized by all
necessary corporate or similar action on the part of such Consultant. This Agreement constitutes the valid and legally binding obligation of such Consultant, enforceable against it in accordance with its terms. 

      5.2. Representations and Warranties of the Consultants.

     Each Consultant and each Consultant Representative hereby represents and warrants as of the date hereof to the Company as follows: 

                 (a) Such Consultant, if an entity, is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and
to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. Such Consultant, if an individual, has legal capacity and authority to enter into and consummate the transactions contemplated by
this Agreement and otherwise to carry out its, his or her obligations hereunder. The execution, delivery and performance by such Consultant of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or
similar action on the part of such Consultant.  This Agreement constitutes the valid and legally binding obligation of such Consultant and such Consultant Representative, enforceable against it in accordance with its terms. 

                (b) Such Consultant understands that the Warrants and the Warrant Shares (collectively, the “Securities”) are “restricted securities” and have not
been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation
of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or
understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law. Such Consultant is acquiring the Securities hereunder in the ordinary
course of its business. 

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                 (c) At the time such Consultant was offered the Securities, it was, and at the date hereof it is, and on each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule
501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Such Consultant is not required to be registered as a broker-dealer under
Section 15 of the Exchange Act. 

                 (d) Such Consultant, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Consultant is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss
of such investment. Such Consultant has been given the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of the offer of the Securities and other matters pertaining to such
investment.

                 (e) To the Consultant’s knowledge, such Consultant is not acquiring the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or
similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 

6. INDEPENDENT CONTRACTOR STATUS

      The Consultants shall perform all of their services under this Agreement as an “independent contractor” and not as an employee or agent of the Company. Neither the Consultants nor the
Consultant Representatives are authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the Company in any manner.  Neither the Consultants nor the Consultant
Representatives shall be entitled to any benefits, insurance coverage or privileges, including, without limitation, social security, unemployment, medical or pension benefits, made available to the employees of the Company. 

7. PIGGY-BACK REGISTRATION RIGHTS; RESTRICTIVE LEGEND

               (a) The Company shall notify the Consultants in writing at least ten (10) days prior to the filing of any registration statement under the Securities Act for purposes of a public offering of
securities of the Company (excluding any registration statement(s) relating to the shares of common stock underlying the Series C Preferred Stock and related warrants issued by the Company July 17, 2007, and any registration statement relating to
any employee benefit plan or with respect to any corporate reorganization or other transaction under Rule 145 of the Securities Act) and will afford the Consultants an opportunity to include in such registration statement all or part of
the

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shares of Common Stock issuable upon the due and proper exercise of the Warrants by the Consultants the “Registrable Securities”). If the Consultants desire to
include in any such registration statement all or any part of the Registrable Securities held by them, the Consultants shall, within five (5) days after the above-described notice from the Company, so notify the Company in writing. Such notice shall
state the intended method of disposition of the Registrable Securities by the Consultants. If a Consultant decides not to include all of its Registrable Securities in any registration statement thereafter filed by the Company, such Consultant shall
nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and
conditions set forth herein. 

               (b) If the registration statement under which the Company gives notice under this Section 7 is for an underwritten offering, the Company shall so advise the Consultants.  In such event, the right of
any such Consultant to be included in a registration pursuant to this Section 7 shall be conditioned upon such Consultant’s participation in such underwriting and the inclusion of such Consultant’s Registrable Securities in the
underwriting to the extent provided herein. All Consultants proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for
such underwriting by the Company.  Notwithstanding any other provision of the Agreement, if the underwriter determines in good faith that marketing factors require a limitation of the number of shares to be underwritten, the number of shares that
may be included in the underwriting shall be allocated, first, to the Company; second, to the holders of equity securities that initiated the filing of such registration statement, if any; third, to the Consultant and any shareholders with rights
that are pari passu to the rights of the Consultants on a pro rata basis based on the total number of Registrable Securities held by the Consultants and Common Stock held by such
shareholders; and fourth, to any other shareholder of the Company (other than a Consultant) on a pro rata basis. If any Consultant disapproves of the terms of any such underwriting, such Consultant may elect to withdraw therefrom by written notice
to the Company and the underwriter, delivered at least ten (10) days prior to the effective date of the registration statement.  Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the
registration.

                (c) The Company shall have the right to terminate or withdraw any registration initiated by it prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration.  The
Consultants’ registration rights pursuant to this Section 7 shall expire if, and for so long as, all Registrable Securities held by and issuable to such Consultant may be sold under Rule 144, or any other successor exemption under the
Securities Act. 

               (d) Each certificate representing Registrable Securities shall (unless otherwise permitted by the provisions of the Agreement) be stamped or otherwise imprinted with legends substantially similar to
the following (in addition to any legend required under applicable state securities laws): 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,

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AS AMENDED (THE “ACT”) AND ARE BEING ISSUED PURSUANT TO EXEMPTIONS THERETO.  THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL EITHER (A) THEY ARE
REGISTERED UNDER THE ACT OR (B) AN EXEMPTION FROM REGISTRATION IS AVAILABLE AND, IF REQUESTED, THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED AND THAT THE TRANSFER
WILL NOT VIOLATE THE ACT OR ANY OTHER FEDERAL OR STATE SECURITIES LAWS. 

8. NOTICES

       All notices required or permitted under this Agreement shall be in writing and shall be mailed, delivered, or faxed and confirmed in writing, addressed to the other party at the address shown above, or at such other address or
addresses as either party shall designate to the other in accordance with this Section 8, and any such notices and other communications shall take effect at the time of receipt thereof. 

9. ENTIRE AGREEMENT; AMENDMENT

       This Agreement constitutes the entire agreement between the parties and supersede all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. This Agreement may be amended
only by a written instrument executed by the Company and the Consultants. 

10. GOVERNING LAW

       This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of New York, without regard to principles of conflicts of laws. 

11. SUCCESSORS AND ASSIGNS

       This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns, including any corporation with which, or into which, the Company may be merged or which may
succeed to its assets or business, provided, however, that the obligations of the Consultants are personal and shall not be assigned by it without the Company’s express written consent.

12. NO CONFLICTS

      Each Consultant represents and warrants to the Company that he or it is free to be engaged by the Company upon the terms contained in this Agreement and that there are no consulting agreements, employment contracts, restrictive
covenants or other agreements or fiduciary obligations preventing or interfering with in any manner whatsoever the full performance of such Consultant’s duties hereunder.

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13. LEGAL COMPLIANCE

     The Consultants will comply with all applicable governmental laws, ordinances, rules and regulations applicable to the performance of the services hereunder. 

14. NON-SOLICITATION

      The Consultants and the Consultant Representatives agree that during the term of this Agreement and for a period of one year thereafter, they will not, in any manner, directly or indirectly hire or engage any employee or
consultant of the Company, its parent, its subsidiaries or affiliates or assist any person, firm or corporation in doing so. 

15. SECURITIES LAWS

      The Consultants and the Consultant Representatives acknowledge that they are aware (and that its employees have been advised) that the United States securities laws (“Securities Laws”) prohibit the Consultants, their
respective employees, the Consultant Representatives and any person or entity who has received material non-public information about the Company, its parent, subsidiaries or affiliates, from purchasing or selling securities of Elite Pharmaceuticals,
Inc. or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities in reliance on such information. The Consultants and the
Consultant Representatives shall not do or perform any act in violation of any Securities Laws or other applicable securities law. 

16. NO GRANTING OF LICENSE

     Nothing herein contained is intended or shall be interpreted as (a) granting or creating any right or license in or to any Consultant with respect to any patent rights, copyrights, trademarks, trade
secretes, or other intellectual property or proprietary rights owned or controlled by the Company, or (b) waiving or relinquishing any rights of enforcement that the Company may have with respect to patent, copyright, trademark, trade secrets, or
other intellectual or other proprietary infringement or misappropriation.

17. WAIVER; AUTHORITY; SEVERABILITY

     A waiver by a party hereto of a breach of any term, covenant or condition of this Agreement by the other party hereto shall not operate or be construed as a waiver of any other or subsequent breach by
such party of the same or any other term, covenant or condition hereof. In the event that any of the provisions of this Agreement, or any portion thereof, shall be held to be invalid or unenforceable, the validity and enforceability of the remaining
provisions hereof shall not be affected or impaired but shall remain in full force and effect. 

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18. ATTORNEYS’ FEES

     In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs
and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees,
costs and expenses of appeals. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
 

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     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year set forth above. 

	 	
ELITE PHARMACEUTICALS, INC.
	
	 	 

	
	 	
By: /s/ Bernard Berk
	
	 	
      Name: Bernard Berk
      

	 	
                    Title: CEO
	
	 	 

	
	 	 

	
	 	
BRIDGE VENTURES, INC.
	
	 	 

	
	 	
By: /s/ Harris Freedman
	
	 	
          Name: Harris Freedman
	
	 	
          Title:
	
	 	 

	
	 	 

	
	 	
SAGGI CAPITAL INC.
	
	 	 

	
	 	
By: /s/ Sharon Will
	
	 	
          Name: Sharon Will
	
	 	
          Title:
	
	 	 

	
	 	 

	
	 	
/s/ Harris Freedman
	
	 	
HARRIS FREEDMAN
	
	 	 

	
	 	 

	
	 	
/s/ Sharon Will
	
	 	
SHARON WILL
	

 

10c51178_ex10-2.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.2

FIRST AMENDMENT TO

CREDIT FACILITIES AGREEMENT

      This FIRST AMENDMENT TO CREDIT FACILITIES AGREEMENT (this “Agreement”) is entered into as of August 21, 2007 but effective as of August 21, 2007, by and among MTM TECHNOLOGIES, INC., a New York corporation, MTM
TECHNOLOGIES (US), INC., a Delaware corporation, MTM TECHNOLOGIES (MASSACHUSETTS), LLC, a Delaware limited liability company, and INFO SYSTEMS, INC., a Delaware corporation (collectively, and separately referred to as, “Borrower” or
“the Borrower”), and GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION (“CDF”), as Administrative Agent, and CDF, as the sole lender (the “Lender”). 

Recitals:

	
A.	
Borrower, Administrative Agent and the Lender are parties to that certain Credit Facilities Agreement dated as of August 21, 2007 (the “Loan Agreement”).	
	 
	
B.	
Administrative Agent, Lender and Borrower have agreed to the provisions set forth herein on the terms and conditions contained herein.	
	 

Agreement

      Therefore, in consideration of the mutual agreements herein and other sufficient consideration, the receipt of which is acknowledged, Borrower, Administrative Agent and the Lender hereby agree as follows: 

1.    Definitions. All
references to the “Agreement” or the “Loan Agreement” in
 the Loan Agreement and in this Agreement shall be deemed to be references to
the Loan Agreement as it may be amended, restated, extended, renewed, replaced,
or otherwise modified from time to time. Capitalized terms used and not otherwise
defined  herein have the meanings given them in the Loan Agreement. 

2.    Effectiveness
of Agreement. This Agreement shall become
effective as of the date first written  above, but only if this Agreement has
been executed by Borrower, Administrative Agent and the Lender.

3.    Amendments. The
Loan Agreement is hereby amended as follows: 

     3.1.      Liquidation Multiple.

The
defined term “Liquidation Multiple” in Section 15.1 of the Loan Agreement
is deleted in its entirety and replaced with the following: 

“Liquidation
    Multiple” means
    (I) Net Recovery divided by (II) the sum of (A) the amount of the Aggregate
    Revolving Loan plus (B) the amount of the Aggregate Floorplan Loan, plus
    (C) without duplication of clause (II)(A), the Swingline Loan, plus (D) without
    duplication of clause (II)(B) the Interim Flooplan Loan, as each such amount
    is outstanding as of the last day of the most recently completed fiscal month.” 

     3.2.      Net Recovery.

The
defined term “Net Recovery” in Section 15.1 of the Loan Agreement is
deleted in its entirety and replaced with the following: 

““Net Recovery” means a Dollar amount equal to: (I) (A) one hundred percent (100%) of the face amount of all Accounts of Borrower minus the bad debt reserve, as set forth in the Financial Statements for the
most recently ended fiscal month, multiplied by (B) one hundred percent (100%) minus (C) the sum of (i) Dilution multiplied by two (2) plus (ii) five percent (5%), plus (II) the Floorplan Inventory Value, and minus (III) $1,000,000.”

     3.3.      Floorplan Inventory Value.

The
defined term “Floorplan Inventory Value” on Exhibit 2.1 to the Loan
Agreement is deleted in its entirety and replaced with the following: 

“FLOORPLAN INVENTORY VALUE -- means (A) except for Inventory described in clause (B) below, one hundred percent (100%) multiplied by the total aggregate wholesale invoice price of all of Borrower’s Inventory financed under the Aggregate Floorplan Loan
Facility or the Interim Floorplan Loan Facility and which was not evidenced by invoices outstanding on the Closing Date in which Administrative Agent has a first priority, perfected Security Interest (subject to no other Security Interest other than
the Security Interest of the Subordinated Lenders if a Subordination Agreement remains in effect) that is unsold and not leased by Borrower and is in Borrower’s possession and control as of the date of determination, less the amount of any such
Inventory reported by the Borrower (if the Borrower is required by the Administrative Agent or the Required Lenders to report) as demonstration items or Inventory that is obsolete or otherwise unmerchantable or if in the possession or control of
Borrower for 180 days or more from the date of the invoice for such Inventory, as calculated by Administrative Agent, as of the last day of the most recently completed fiscal month, plus (B) fifty percent (50%) multiplied by the total aggregate
wholesale invoice price of all of Borrower’s Inventory financed under the Aggregate Floorplan Loan Facility, the Interim Floorplan Loan Facility, the Aggregate Revolving Loan Facility, or by a Swingline Loan, which was evidenced by invoices
outstanding on the Closing Date in which Administrative Agent has a first priority, perfected Security Interest (subject to no other Security Interest other than the Security Interest of the Subordinated Lenders if a Subordination Agreement remains
in effect) that is unsold and not leased by Borrower and is in Borrower’s possession and control as of the date of determination, less the amount of any such Inventory reported by the Borrower (if the Borrower is required by the Administrative
Agent or the Required Lenders to report) as demonstration items or Inventory that is obsolete or otherwise unmerchantable or if in the possession or control of Borrower for 180 days or more from the date of the invoice for such Inventory, as
calculated by Administrative Agent, as of the last day of the most recently completed fiscal month, plus (C) fifty percent (50%) multiplied by the lesser of (i) $1,500,000 and (ii) the total aggregate wholesale invoice price of all of
Borrower’s Inventory that is not financed under the Aggregate Floorplan Loan Facility or the Interim Floorplan Loan Facility in which Administrative Agent has a first priority, perfected Security Interest (subject to no other Security Interest
other than the Security Interest of the Subordinated Lenders if a Subordination Agreement remains in effect) that is unsold and not leased by Borrower and is in Borrower’s possession and control as of the date of determination, less the amount
of any such Inventory reported by the Borrower (if the Borrower is required by the Administrative Agent or the Required Lenders to report) as demonstration items or Inventory that is obsolete or otherwise unmerchantable or if in the possession or
control of Borrower for 180 days or more from the date of the invoice for such Inventory, as calculated by Administrative Agent, as of the last day of the

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most recently completed fiscal month. If any Inventory financed under the Aggregate Floorplan Loan Facility or the Interim Floorplan Loan Facility with a value in excess of $0.00 for each location is located on any
premises that are not owned by Borrower (not including any lessee or other person to whom Inventory is leased or rented in the ordinary course of such Covered Person’s business, or other locations where Borrower is not obligated to pay rent for
up to 30 consecutive days) and Borrower has not obtained or caused to be obtained written waivers or consents, in form and substance satisfactory to Administrative Agent, then such Inventory shall be deemed to have a “Floorplan Inventory
Value” of zero Dollars ($0.00) .” 

     3.4.      Schedule II to the Compliance Certificate.

Schedule II to the Compliance Certificate attached to the Loan Agreement as a part of Exhibit 13.13. is deleted in its entirety and replaced with the Schedule II attached hereto. 

4.      General Representations and Warranties of Borrower. Each Borrower hereby represents and
warrants to Administrative Agent and the Lender that (i) such Borrower’s execution of this Agreement has been duly authorized by all requisite action of such Borrower, (ii) no consents are necessary from any third parties for such
Borrower’s execution, delivery or performance of this Agreement except for those already duly obtained, (iii) this Agreement, the Loan Agreement, and each of the other Loan Documents, constitute the legal, valid and binding obligations of such
Borrower enforceable against such Borrower in accordance with their terms, except to the extent that the enforceability thereof against such Borrower may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors
rights generally or by equity principles of general application, (iv) except as disclosed on the disclosure schedule attached to the Loan Agreement, all of the representations and warranties contained in Section 11 of the Loan Agreement are true and
correct with the same force and effect as if made on and as of the date of this Agreement with such exceptions as have been disclosed to Lenders in writing, (v) after giving effect to this Agreement, there is no Existing Default, and (vi) the
execution, delivery and performance of this Agreement by Borrower does not violate, contravene, or conflict with any Material Law or Material Agreement. 

5.      Reaffirmation; No Claims. Each Borrower hereby represents, warrants, acknowledges and confirms
that (i) the Loan Agreement and the other Loan Documents remain in full force and effect, and (ii) the Security Interests of the Administrative Agent under the Security Documents secure all the Loan Obligations under the Loan Agreement, continue in
full force and effect, and have the same priority as before this Agreement.  Until the Loan Obligations are paid in full in good funds and all obligations and liabilities of
Borrower under the Credit Agreement and the Loan Documents are performed and paid in full in good funds, Borrower agrees and covenants that it is bound by the covenants and agreements set forth in the Credit Agreement, the Loan Documents and in this
Agreement. Borrower hereby ratifies and confirms the Loan Obligations.

6.      Payment of Fees and Expenses. Borrower shall promptly pay to Administrative Agent an amount
equal to all reasonable fees, costs, and expenses, incurred by the Administrative Agent (including all reasonable attorneys fees and expenses) in connection with the preparation, negotiation, execution, and delivery of this Agreement, and any
further documentation which may be required in connection herewith. 

7.      Governing Law. This Agreement and the rights and obligations of the parties hereunder and
thereunder shall be governed by and construed and interpreted in accordance with the internal Laws of the State of Illinois applicable to contracts made and to be performed wholly within such state, without regard to choice or conflicts of law
principles. 

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

9.      Section Titles. The section titles in this Agreement are for convenience of reference only and
shall not be construed so as to modify any provisions of this Agreement. 

10.     Counterparts;
Facsimile Transmissions. This Agreement
may be executed in one or more  counterparts and on separate counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Signatures to this Agreement may be given by facsimile
or other electronic transmission,  and such signatures shall be fully binding
on the party sending the same. 

11.     Binding
Arbitration. This Agreement is subject to
the binding arbitration provisions contained  in the Credit Agreement and the
Loan Documents as applicable to the parties hereto. 

12.     Incorporation
By Reference. Administrative Agent, Lender
and Borrower hereby agree that all of  the terms of the Loan Documents are incorporated
in and made a part of this Agreement by this reference. 

13.     Notice—Oral
Commitments Not Enforceable.

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

14.     Statutory
Notice-Insurance.

UNLESS YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US, WE MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR COLLATERAL.  THIS INSURANCE MAY, BUT NEED NOT, PROTECT
YOUR INTERESTS.  THE COVERAGE THAT WE PURCHASE MAY NOT PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN CONNECTION WITH THE COLLATERAL. YOU MAY LATER CANCEL ANY INSURANCE PURCHASED BY US, BUT ONLY AFTER PROVIDING EVIDENCE THAT
YOU HAVE OBTAINED INSURANCE AS REQUIRED BY OUR AGREEMENT.  IF WE PURCHASE INSURANCE FOR THE COLLATERAL, YOU WILL BE RESPONSIBLE FOR THE

4

COSTS OF THAT INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE
INSURANCE.  THE COSTS OF THE INSURANCE MAY BE ADDED TO YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE YOU MAY BE ABLE TO OBTAIN ON YOUR OWN. 

{remainder of page intentionally left blank; signature page immediately follows} 

 

5

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

	
GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION,
	
	
as Administrative Agent and sole Lender
	
	 

	
	
By:
		
/s/ David Mintert
		 
	
Name:
		
David Mintert
	
	
Title:
		
Vice President, Operations
	
	 

	
	 

	
	 

	
	
MTM TECHNOLOGIES, INC., as a Borrower
	
	 

	
	
By:
		
/s/ J.W. Braukman, III
		 
	
Name:  
		
J.W. Braukman, III
	
	
Title:
		
Senior Vice President and Chief Financial Officer
	
	 

	
	 

	
	 

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

	
	
By:
		
/s/ J.W. Braukman, III
		 
	
Name:
		
J.W. Braukman, III
	
	
Title:
		
Senior Vice President and Chief Financial Officer
	
	 

	
	 

	
	 

	
	
MTM TECHNOLOGIES (MASSACHUSETTS), LLC, as a Borrower
	
	 

	
	 

	
	
By:
		
/s/ J.W. Braukman, III
		 
	
Name:
		
J.W. Braukman, III
	
	
Title:
		
Senior Vice President and Chief Financial Officer
	
	 

	
	 

	
	 

	
	
INFO SYSTEMS, INC., as a Borrower
	
	 

	
	 

	
	
By:
		
/s/ J.W. Braukman, III
		 
	
Name:
		
J.W. Braukman, III
	
	
Title:
		
Senior Vice President and Chief Financial Officer
	

6

SCHEDULE II TO COMPLIANCE CERTIFICATE

Note: the text of Section 15 of the Loan Agreement controls over any difference between this certificate and Section 15 of the Loan Agreement. Reference should be made to the Loan Agreement for more specific
instructions regarding the calculation periods and how the components of the financial covenants should be calculated. 

All calculations done in accordance with GAAP
on a consolidated basis, in accordance with the provisions of the Credit Facilities
Agreement and are based on the period ended __________________.

	
I.
		
Minimum Liquidation Recovery calculated monthly
		 
		 

		 
	 

	
	 

		
A.
		
Net Recovery
		 
		 

		 
	 

		 

		
(i) (A) 100% of the face amount of all Accounts of
		 
		 

		 
	 

		 

		
Borrower minus the bad debt reserve as set
		 
		 

		 
	 

		 

		
forth in the Financial Statements for the most
		 
		 

		 
	 

		 

		
recently ended fiscal month multiplied by (B) 100% minus
		 
		 

		 
	 

		 

		
(C) the sum of (I) Dilution multiplied by 2 plus (II) 5%
		$
		 
	 
	 	 	 	 	 	 
	 

		 

		
(ii) 100% multiplied by total aggregate wholesale invoice price
		 
		 

		 
	 

		 

		
of all of Borrower’s Inventory that is financed under the
		 
		 

		 
	 

		 

		
Floorplan Loan Facility and the Interim Floorplan Loan Facility
		 
		 

		 
	 

		 

		
and which was not evidenced by invoices outstanding on
		 
		 

		 
	 

		 

		
the Closing Date, in which Administrative Agent has a first priority, perfected
	
	 

		 

		
Security Interest (subject to no other Security Interest other
		 
		 

		 
	 

		 

		
than the Security Interest of the Subordinated Lenders
		 
		 

		 
	 

		 

		
if a Subordination Agreement remains in effect),
		 
		 

		 
	 

		 

		
as calculated by Administrative Agent in as of
		 
		 

		 
	 

		 

		
the last day of the most recently completed fiscal month
		$
		 

		 
	 	 	 	 	 	 
	 

		 

		
(iii) 50% multiplied by total aggregate wholesale invoice
		 
		 

		 
	 

		 

		
price of all of Borrower’s Inventory that is financed under
		 
		 

		 
	 

		 

		
the Aggregate Floorplan Loan Facility, the Interim Floorplan Loan Facility
		 
		 

		 
	 

		 

		
the Aggregate Revolving Loan Facility, or by a Swingline Loan,
		 
		 

		 
	 

		 

		
and which was evidenced by invoices outstanding on the
		 
		 

		 
	 
		 	Closing Date, in which Administrative
    Agent has a first priority, perfected	 	 	 
	 

		 

		
Security Interest (subject to no other Security Interest other
		 
		 

		 
	 

		 

		
than the Security Interest of the Subordinated Lenders
		 
		 

		 
	 

		 

		
if a Subordination Agreement remains in effect)
		 
		 

		 
	 

		 

		
as calculated by Administrative Agent, as of the last day
		 
		 

		 
	 

		 

		
of the most recently completed fiscal month
		$ 	 	 
	 	 	 	 	 	 
	 

		 

		
(iv) 50% multiplied by the lesser of (a) $1,500,000 and
		 
		 

		 
	 

		 

		
(b) the total aggregate wholesale invoice price of all of Borrower’s
		 
		 

		 
	 

		 

		
Inventory that is not financed under the Floorplan Loan Facility
		 
		 

		 
	 

		 

		
and the Interim Floorplan Loan Facility and on which
		 
		 

		 
	 

		 

		
Administrative Agent has a first priority perfected Security Interest,
		 
		 

		 
	 

		 

		
in which Administrative Agent has a first priority, perfected
		 
		 

		 
	 

		 

		
Security Interest (subject to no other Security Interest other
		 
		 

		 
	 

		 

		
than the Security Interest of the Subordinated Lenders
		 
		 

		 
	 

		 

		
if a Subordination Agreement remains in effect)
		 
		 

		 
	 

		 

		
as calculated by Administrative Agent, as of the last day of the most
		 
		 

		 

7

	 

		 

		
recently completed fiscal month
		$ 	 	 
	 

		 

		
(v) an amount equal to--
		
$
		
1,000,000
		 
	 

		 

		
(vi) Net Recovery: Item (i) plus Item (ii) plus Item (iii)
		 

		 

		 
	 

		 

		
plus Item (iv) minus Item (v)
		$ 	 	 
	 

	
	 

		
B.
		
the sum of (A) the amount of the Aggregate Revolving Loan
		 

		 

		 
	 

		 

		
plus (B) the amount of the Aggregate Floorplan Loan,
		 

		 

		 
	 

		 

		
plus (C) without duplication of clause (II)(A), the Swingline Loan,
		 

		 

		 
	 
		 	plus (D) without duplication of
    clause (II)(B) the Interim Flooplan Loan	 	 	 
	 

		 

		
as each such amount is outstanding as of the last day of the fiscal month
		$ 	 	 
	 

	
	 

		
C.
		
Item A(vi) divided Item (B)
		  	 	 
	 

	
	 

		
D.
		
Minimum Ratio Permitted by Section 15.2
		 

		
1.20 to 1.00
		 
	 

	
	
II
		
Minimum EBITDA calculated quarterly
		 

		 

		 
	 

	
	 

		
A.
		
EBITDA (for each fiscal quarter)
		 

		 

		 
	 

		 

		
(see definition of EBITDA in Section 15.1)
		 

		 

		 
	 

		 

		
(i)
		
Net Income
		$ 	 	 
	 

		 

		
(ii)
		
Interest Expense
		$ 	 	 
	 

		 

		
(iii)
		
income tax expense
		$ 	 	 
	 

		 

		
(iv)
		
depreciation expense
		$ 	 	 
	 

		 

		
(v)
		
amortization expense
		$ 	 	 
	 

		 

		
(vi)
		
nonrecurring losses under GAAP in such period
		$ 	 	 
	 

		 

		
(vii)
		
all extraordinary losses not otherwise related
		 

		 

		 
	 

		 

		 

		
to the continuing operations of the Borrower in such period
		$ 	 	 
	 

		 

		
(viii)
		
actual cash and non-cash nonrecurring severance and
		 

		 

		 
	 

		 

		 

		
actual cash and non-cash nonrecurring restructuring charges
		 

		 

		 
	 

		 

		 

		
for such period up to $250,000 in the aggregate in a
		 

		 

		 
	 

		 

		 

		
fiscal quarter and up to $750,000 in the aggregate
		 

		 

		 
	 

		 

		 

		
during the term of this Agreement
		$ 	 	 
	 

		 

		
(ix)
		
Non-cash charges relating to any share-based compensation
		 

		 

		 
	 

		 

		 

		
awards, to the extent such non-cash charges were expensed
		 

		 

		 
	 
		 	 	during such period in accordance
    with SFAS 123R or are	 	 	 
	 

		 

		 

		
required to be shown as an expense in any financial
		 

		 

		 
	 

		 

		 

		
statements for periods prior to the effective date of SFAS 123R
		$ 	 	 
	 

		 

		
(x)
		
extraordinary gains under GAAP in such period
		$ 	 	 
	 

		 

		
(xi)
		
all extraordinary gains not otherwise related
		 

		 

		 
	 

		 

		 

		
to the continuing operations of the Borrower in such period
		$ 	 	 
	 

		 

		
(xii)
		
Sum of items (i) through (ix) less items (x) and (xi) is EBITDA
		$ 	 	 
	 

	
	 

		
B.
		
Minimum EBITDA Required by Section 15.3
		$ 	 	 
	 

	
	 

		
C.
		
EBITDA for preceding 4 fiscal quarters
		$ 	 	 

8

	
III.
		
Excess Cash/Marketable Securities plus Availability Section 15.5 certified monthly
	
	 	 
	 

		
A.
		
the amount of cash or marketable securities permitted
		 

		 

		 
	 

		 

		
by Section 14.1.4 hereof
		$ 	 	 
	 	 
	 

		
B.
		
the Borrowing Base on such date
		$ 	 	 
	 	 
	 

		
C.
		
the Swingline Loan,
		 

		 

		 
	 	 
	 

		
D.
		
the Floorplan Shortfall,
		 

		 

		 
	 	 
	 

		
E.
		
the Letter of Credit Exposure (except to the extent that a
		 

		 

		 
	 

		 

		
Revolving Loan Advance will be used immediately to reimburse
		 

		 

		 
	 

		 

		
Letter of Credit Issuer for unreimbursed draws on a Letter of Credit)
		$ 	 	 
	 	 
	 

		
F.
		
without duplication, the outstanding Aggregate Revolving Loans
		$ 	 	 
	 	 
	 

		
G.
		
the amount of the Other Creditor Indebtedness (unless
		 

		 

		 
	 

		 

		
an Intercreditor Agreement in form and substance satisfactory
		 

		 

		 
	 

		 

		
to Administrative Agent has been executed between Administrative
		 

		 

		 
	 

		 

		
Agent and the holder of such Other Creditor Indebtedness)
		$ 	 	 
	 	 
	 

		
H.
		
the amount of Bid Bonds
		$ 	 	 
	 	 
	 

		
I.
		
the sum of Items C, D, E, F, G and H
		$ 	 	 
	 	 
	 

		
J.
		
Item B minus Item I
		$ 	 	 
	 	 
	 

		
K.
		
the sum of Item A and Item J
		$ 	 	 
	 	 
	 

		
L.
		
Minimum Required by Section 15.5
		
$
		
1,500,000
		 
	 

	
	
IV.
		
Maximum Total Funded Indebtedness to EBITDA calculated fiscal year end only
	
	 	 
	 

		
A.
		
Total Funded Indebtedness (see definition in Section 15.1)
		$ 	 	 
	 	 
	 

		
B.
		
EBITDA (for preceding 4 fiscal quarters) See II above
		$ 	 	 
	 	 
	 

		
C.
		
Ratio of Item IVA to Item IVB
		  	 	 
	 	 
	 

		
D.
		
Maximum ratio permitted by Section 15.4
		 

		
4.00 to 1.00
		 

9

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