Document:

Amendment to Sixth Amended and Restated Revolving Credit and Term Loan Agreement

 Exhibit 10.3 
 Execution Copy 
 SEVENTH AMENDMENT TO 
 SIXTH AMENDED AND RESTATED 
 REVOLVING CREDIT AND TERM LOAN AGREEMENT

 This Seventh Amendment to Sixth Amended and Restated Revolving Credit and Term Loan Agreement (“Seventh Amendment”)
is made as of September 18, 2008, by and among Noble International, Ltd. (“Borrower”), the Lenders parties thereto from time to time and Comerica Bank, as Agent for the Lenders (the “Agent”). 
 RECITALS 
 A. Borrower, Agent and the
Lenders entered into that certain Sixth Amended and Restated Revolving Credit and Term Loan Agreement dated as of December 11, 2006, as amended by the First Amendment dated as of March 14, 2007, by the Second Amendment dated as of
March 28, 2007, by the Third Amendment dated as of May 8, 2007, by the Fourth Amendment dated as of August 24, 2007, by the Fifth Amendment dated as of November 2, 2007 and by the Sixth Amendment dated as of March 20, 2008
(as amended or otherwise modified from time to time, the “Credit Agreement”) under which the Lenders extended (or committed to extend) credit to Borrower, as set forth therein. 
 B. Borrower has requested that Agent and the Lenders make certain amendments to the Credit Agreement, and Agent and the Lenders are willing to do so, but
only on the terms and conditions set forth in this Seventh Amendment. 
 NOW, THEREFORE, Borrower, Agent and the Lenders agree:

  

	1.	 Borrower has requested that the Agent and the Lenders consent to a $12,500,000 term loan (“GE Loan”) to be made by GE Capital Solutions (“GE”)
to Borrower, to be secured by a first lien on all equipment of the Borrower and its Subsidiaries located at the following manufacturing facilities: Butler, Indiana; Shelbyville, KY, South Haven, Michigan; Spring Lake, Michigan; Stow, Ohio;
Tonawanda, New York; Warren, Michigan and Brantford, Ontario, which is more particularly described on Attachment 3 (the “Pledged Equipment”). The Lenders hereby consent to GE Loan, and to the granting of a lien by the Credit Parties on the
Pledged Equipment in favor of GE to support the GE Loan, provided that (a) after giving effect to this Seventh Amendment, no Default or Event of Default shall have occurred and be continuing at the time such sale is consummated both before and
after giving effect thereto, (b) the net cash proceeds from the GE Loan shall be used (i) first to repay all outstanding Advances under the Term Loan until the Term Loan has been paid in full, and (ii) then to the extent any balance
remaining thereafter, to repay outstanding Advances under the Revolving Credit, without a corresponding reduction in the Revolving Credit Aggregate Commitment, by at least $1,250,000 and (c) the Borrower has provided to Agent a copy of the
documentation 

	 	 
relating to the GE Loan and such documents are in form and substance satisfactory to the Agent and the Majority Lenders. Upon the satisfaction of the
conditions set forth above (including, without limitation, the receipt by the Agent of the proceeds required in clause (b) above), the Agent shall execute and deliver to Borrower, and the Lenders hereby consent to the execution and delivery by
the Agent to the Borrower of, any release or discharge documents reasonably required by Borrower, at Borrower’s expense, to evidence the release of the Agent’s security interest in the Pledged Equipment. 

  

	2.	The Borrower has informed the Lenders that Noble Metal Processing, Inc. intends to sell the Equity Interests of Noble Metal Processing – Australia Pty LTD. (“Noble
Australia”) to Noble European Holdings B.V. on the terms substantially as set forth in the form of Share Sale Agreement previously delivered to Agent (“Noble Australia Acquisition Documents”) (such sale shall be referred to herein as
the “Noble Australia Sale”). In connection therewith, the Borrower has requested that the Lenders consent to the Noble Australia Sale pursuant to Section 8.5(f)(iii) of the Credit Agreement. The Lenders hereby consent to the Noble
Australia Sale, provided that (a) the Agent shall have received copies of the fully executed Noble Australia Acquisition Documents in form and substance satisfactory to Agent, (b) the total proceeds of the Noble Australia Sale shall not be
less than $11,600,000, (c) after giving effect to this Consent and both before and after giving effect to the consummation of the Noble Australia Sale, no Default or Event of Default shall have occurred and be continuing, (d) the Noble
Australia Sale is consummated no later than the date which is thirty (30) days after the date of this Consent and (e) the Net Cash Proceeds from the Noble Australia Sale shall be used first to repay outstanding Advances under the Term
Loan, if any, and to the extent of any balance remaining thereafter, to repay outstanding Advances under the Revolving Credit, without a corresponding reduction in the Revolving Credit Aggregate Commitment. The Noble Australia Sale as consented to
in this Consent shall not be subject to or calculated as part of the limitation on Asset Sales as set forth in Section 8.5(f)(i). Upon the effectiveness of this Consent, the receipt by the Agent of satisfactory evidence that the Noble Australia
Sale has been consummated and the receipt by the Agent of any amounts required in clause (e) above, the Agent shall execute and deliver to Borrower, and the Lenders hereby consent to the execution and delivery by the Agent to the Borrower of,
any release or discharge documents reasonably required by Borrower, at Borrower’s expense, to evidence the release of the Agent’s security interest in the Equity Interests of Noble Australia, and to deliver to the Borrower the stock
certificates and related stock powers of Noble Australia that were pledged to the Agent. 

  

	3.	Section 1 of the Credit Agreement is amended as follows: 

  

	 	(a)	The following definition is hereby amended and restated as follows: 

 “Base Tangible Net Worth” shall mean, as of the last day of any fiscal quarter, an amount equal to the sum of $200,000,000 plus fifty percent (50%) of Consolidated Net Income (not reduced by losses)
for each fiscal quarter, commencing with the quarter ending on September 30, 2008. 

 “Consolidated EBITDA to Interest and Debt Service Coverage Ratio” shall mean (a) for
any period through and including the quarter ending September 30, 2008, the ratio of (i) Consolidated EBITDA for the applicable Measuring Period, to (ii) Consolidated Interest Expense of the US/Canadian Companies for the applicable
Measuring Period and (b) for any period thereafter, the ratio of (i) Consolidated EBITDA for the applicable Measuring Period, to (ii) the sum of Consolidated Interest Expense of the US/Canadian Companies for the applicable Measuring
Period, plus all principal payments paid or due and payable on Debt of the US/Canadian Companies (other than payments in respect of the Revolving Credit or any other revolving credit facility that do not result in a permanent reduction in the
applicable commitment), during the applicable Measuring Period; provided, however, that such principal payments (i) for the fiscal quarter ending December 31, 2008, shall be equal to the amount of such principal payments paid or payable
during such quarter only, (ii) for the fiscal quarter ending March 31, 2009, shall be equal to the amount of such principal payments paid or payable during the two fiscal quarters quarter ending as of such date and (iii) for the
fiscal quarter ending June 30, 2009, shall be equal to the amount of such principal payments paid or payable during the three fiscal quarters quarter ending as of such date. 
 “Revolving Credit Aggregate Commitment” shall mean Forty Million Dollars ($40,000,000), subject to any increases in the Revolving Credit
Aggregate Commitment made from time to time after the Seventh Amendment Effective Date pursuant to Section 2.18 of this Agreement, by an amount not to exceed the Revolving Credit Optional Increase, further subject to reduction or termination
under Sections 2.14, 2.15 or 9.2 hereof. 
  

	 	(b)	The following definitions are hereby added to Section 1: 

 “GE” shall mean GE Capital Solutions and its Affiliates. 
 “GE Loan” shall mean the $12,500,000 loan
to be made by GE pursuant to the GE Loan Documents. 
 “GE Loan Documents” shall mean the documents executed by and between
GE and the Borrower to evidence the GE Loan and the lien on the Pledged Equipment granted to secure the GE Loan, in each case in form and substance satisfactory to the Agent and the Majority Lenders. 
 “Pledged Equipment” shall mean the equipment described on Schedule 1.5 hereof. 

 “Seventh Amendment” shall mean that certain Seventh Amendment to Sixth Amended and Restated
Revolving Credit and Term Loan Agreement dated as of September 18, 2008, by and among the Agent, the Lenders and the Borrower. 
 “Seventh Amendment Effective Date” shall mean the date that all conditions to the effectiveness of the Seventh Amendment as set forth in Section 8 of the Seventh Amendment have been satisfied. 
  

	4.	Section 7 of the Credit Agreement is hereby amended as follows: 

  

	 	(a)	Section 7.9 is hereby amended and restated as follows: 

 “7.9 Minimum Availability. Commencing on the Seventh Amendment Effective Date, maintain Unused Revolving Credit Availability at all times of at least $5,000,000; provided, however, that in the event that the Unused Revolving
Credit Availability as of any date (“Non-Compliance Date”) is less than the amounts required under this Section 7.9, no Default or Event of Default shall be deemed to have occurred hereunder unless the Borrower has failed to make
payments to the Agent, for distribution to the Lenders based on their respective Percentages, in amounts sufficient to cause the Borrower to be in compliance with this Section within three (3) Business Days after such Non-Compliance
Date.” 
  

	 	(b)	Section 7.10 is hereby deleted in its entirety and replaced with the following: 

 “7.10 RESERVED.” 
  

	 	(c)	Section 7.11 is hereby amended and restated in its entirety, as follows: 

 “7.11 RESERVED.” 
  

	 	(d)	Section 7.12(b) is hereby amended and restated in its entirety, as follows: 

 “(b) Consolidated EBITDA to Interest and Debt Service Coverage Ratio. Maintain as of the last day of each fiscal quarter, a Consolidated EBITDA to Interest and Debt Service Coverage Ratio of not less
than 1.10 to 1.00.” 
  

	5.	Section 8 of the Credit Agreement is amended as follows: 

  

	 	(a)	The period (“.”) at the end of clause (j) of Section 8.1 is hereby deleted and replaced with “; and”; and the following is hereby added as new clause
(k): 

 “(k) the GE Loan, provided that the terms and conditions of the 

 
consent set forth in Section 1 of the Seventh Amendment have been satisfied or waived by the Majority Lenders.” 
  

	 	(b)	Clause (g) of Section 8.2 is hereby amended and restated as follows: 

 “(g) Liens on the Pledged Equipment securing the GE Loan pursuant to the terms of the GE Loan Documents; and” 
  

	 	(c)	Section 8.3(e) is hereby amended and restated as follows: 

 “(e) an unsecured guaranty by Borrower of the Debt described in item 1 of Schedule 8.1 to the Agreement, but only to the extent such guaranty replaces the unsecured guaranty by Noble Metal Processing-West Michigan, Inc. (f/k/a
Pullman Industries, Inc.) as described in items 8 and 9 of Schedule 6.20(c) of this Agreement, which was granted in support of such Debt;” 
  

	 	(d)	Section 8.6(c) is hereby amended and restated as follows: 

 “(c) a Distribution by Borrower in an amount previously declared by Borrower for the fiscal quarter ending June 30, 2008, so long as no Default or Event of Default has occurred and is continuing at the time of the making of
such Distribution (both before and after giving effect thereto).” 
  

	6.	New Schedule 1.1 attached hereto as Attachment 2 hereby amends, restates and replaces in its entirety the existing Schedule 1.1 to the Credit Agreement. 

  

	7.	New Schedule 1.5 (Pledged Equipment) attached hereto as Attachment 3 is hereby added to the Credit Agreement. 

  

	8.	This Seventh Amendment shall become effective (according to the terms hereof) on the date that the following conditions have been fully satisfied by Borrower (“Seventh
Amendment Effective Date”): 

  

	 	(a)	Agent shall have received counterpart originals of this Seventh Amendment, in each case duly executed and delivered by Borrower and the requisite Lenders and the Agent in form
satisfactory to Agent and the Lenders. 

  

	 	(b)	Agent shall have received the Acknowledgment of Guarantor executed and delivered by each Guarantor in the form attached to this Seventh Amendment as Attachment 1.

  

	 	(c)	The conditions set forth in Section 1 of this Seventh Amendment shall have been satisfied, including, without limitation the repayment in full of all outstanding Term Loan
Advances and the application of any remaining proceeds to repay Revolving Credit Advances as set forth therein. 

	 	(d)	Borrower shall have paid (i) to the Agent, for pro rata distribution to each Lender that has approved, executed, delivered and released its signature page to this Seventh
Amendment by 12:00 pm (est) on September 18, 2008, a nonrefundable amendment fee in an amount equal to five (5) basis points on the Revolving Credit Aggregate Commitment (after giving effect to this Seventh Amendment), (ii) to Agent,
for distribution to the Lenders, as applicable, all interest, fees and other amounts, if any, due and owing to the Agent and the Lenders and accrued to the Seventh Amendment Effective Date to the extent requested by the Agent prior to the date
hereof and (iii) to Agent, all fees and other amounts, if any, due and owing to the Agent in accordance with any fee letter executed by and among the Agent and Borrower. 

  

	9.	Borrower hereby represents and warrants that, after giving effect to the amendments to the Credit Agreement contained herein, (a) execution and delivery of this Seventh
Amendment are within such party’s corporate powers, have been duly authorized, are not in contravention of law or the terms of their respective articles of incorporation or bylaws, and except as have been previously obtained do not require the
consent or approval, material to the amendments contemplated in this Seventh Amendment, of any governmental body, agency or authority, and this Seventh Amendment and the Credit Agreement will constitute the valid and binding obligations of such
undersigned parties enforceable in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting the enforcement of creditors’ rights generally
and by general principles of equity (whether enforcement is sought in a proceeding in equity or at law), (b) the continuing representations and warranties set forth in Sections 6.1 through 6.24 inclusive, of the Credit Agreement are true and
correct on and as of the date hereof, and such representations and warranties are and shall remain continuing representations and warranties during the entire life of the Credit Agreement, and (c) as of the Seventh Amendment Effective Date, no
Default or Event of Default shall have occurred and be continuing. 

  

	10.	Borrower and the Lenders each hereby ratify and confirm their respective obligations under the Credit Agreement, as amended by the Seventh Amendment and agree that the Credit
Agreement hereby remains in full force and effect after giving effect to the effectiveness of the Seventh Amendment and that, upon such effectiveness, all references in such Loan Documents to the “Credit Agreement” shall be references to
the Credit Agreement as amended by the Seventh Amendment. 

  

	11.	Except as specifically set forth above, this Seventh Amendment shall not be deemed to amend or alter in any respect the terms and conditions of the Credit Agreement or any of the
Notes issued thereunder, or to constitute a waiver by the Lenders or Agent of any right or remedy under or a consent to any transaction not meeting the terms and conditions of the Credit Agreement, any of the Notes issued thereunder or any of the
other Loan Documents. 

  

	12.	 Unless otherwise defined to the contrary herein, all capitalized terms used in this Seventh 

	 	 
Amendment shall have the meaning set forth in the Credit Agreement. 

  

	13.	This Seventh Amendment may be executed in counterpart in accordance with Section 14.9 of the Credit Agreement. 

  

	14.	This Seventh Amendment shall be construed in accordance with and governed by the laws of the State of Michigan. 

 [signatures follow on succeeding pages] 

 IN WITNESS WHEREOF, Borrower, the Lenders and Agent have each caused this Seventh Amendment to be
executed by their respective duly authorized officers or agents, as applicable, all as of the date first set forth above. 
  

			
	COMERICA BANK,
	 as Agent

		
	 By:
	 	      /s/ James Q. Goudie

	 Its:
	 	      Vice President

 Signature Page to Seventh Amendment 
 (847532) 

			
	 NOBLE INTERNATIONAL, LTD.

		
	 By:
	 	      /s/ David J. Fallon

	 Its:
	 	      CFO

  

 Signature Page to Seventh Amendment 
 (847532) 

			
	 COMERICA BANK, as Swing Line Lender,
 Issuing Lender and a Lender

		
	 By:
	 	      /s/ James Q. Goudie

	 Its:
	 	      Vice President

  

 Signature Page to Seventh Amendment 
 (847532) 

			
	 NATIONAL CITY BANK,

	as Co-Lead Arranger, Joint Bookrunner, Co-Syndication Agent and a Lender
		
	 By:
	 	      /s/ Michael Kell

	 Its:
	 	      Vice President

  

 Signature Page to Seventh Amendment 
 (847532) 

			
	CITIZENS BANK,
	 as a Lender

		
	 By:
	 	      /s/ L. E. Schuster

	 Its:
	 	      Senior Vice President

  

 Signature Page to Seventh Amendment 
 (847532) 

 ATTACHMENT 1 
 ACKNOWLEDGMENT OF GUARANTORS 
 Each of the undersigned, being an authorized officer of the guarantors
listed below (collectively, the “Guarantors”) hereby acknowledge that (a) such Guarantor executed a Second Amended and Restated Guaranty dated as of October 12, 2006 (“Guaranty”) and that certain Reaffirmation of Loan
Documents dated as of December 11, 2006, pursuant to which such Guarantor guaranteed the obligations of Borrower under that certain Noble International, Ltd. Sixth Amended and Restated Credit Agreement dated as of December 11, 2006 (as
amended or otherwise modified from time to time, the “Credit Agreement”), among Noble International, Ltd. (“Borrower”), the Lenders parties thereto from time to time and Comerica Bank, as Agent for the Lenders (the
“Agent”) and (b) Borrower, the Lenders and the Agent have executed the Seventh Amendment to the Credit Agreement dated as of date hereof (the “Amendment”). Each of the undersigned hereby ratifies and confirms its obligations
under the Credit Agreement and the Guaranty and agrees that the Guaranty remains in full force and effect after giving effect to the effectiveness of the Amendment. Capitalized terms not otherwise defined herein will have the meanings given in the
Credit Agreement. This acknowledgment shall be governed by and construed in accordance with the laws of, and be enforceable in, the State of Michigan. 
 Dated as of the September 19, 2008. 
  

			
	 NOBLE ADVANCED TECHNOLOGIES, INC.

	 NOBLE TUBE TECHNOLOGIES, LLC

	 NOBLE LOGISTIC SERVICES, INC.

	 NOBLE METAL PROCESSING-OHIO, LLC

	 NOBLE METAL PROCESSING-WEST MICHIGAN, INC. (f/k/a PULLMAN INDUSTRIES, INC.)

	 PULLMAN INVESTMENTS LLC

	 NOBLE METAL PROCESSING-INDIANA, INC. (f/k/a PULLMAN INDUSTRIES OF INDIANA, INC.)

	 NOBLE MANUFACTURING GROUP, INC.

	 NOBLE METAL PROCESSING, INC.

	 NOBLE LAND HOLDINGS, INC.

	 PROTOTECH LASER WELDING INC.

	 NOBLE SWISS HOLDINGS, LLC

	 NOBLE METAL PROCESSING-NEW YORK, INC.

	 NOBLE METAL PROCESSING-KENTUCKY, G.P.

	 TAILOR STEEL AMERICA, LLC

	 NOBLE TSA, LLC

		
	By:	 	 /s/ David J. Fallon

	Name:	 	David J. Fallon
	Title:	 	Chief Financial Officer of each of the foregoing entities

  

 Signature Page to Seventh Amendment 
 (847532) 

 ATTACHMENT 2 
 Schedule 1.1 
 Pricing Matrix 
 Noble International, Ltd.  
 Revolving Credit and Term Loan
Facilities  
 (basis points per annum) 
  

									
	 Basis for Pricing
	  	Level I	  	Level II	  	Level III**	  	Level IV
	 Total Debt to EBITDA Ratio*
	  	< 2.00 to 1.00	  	3 2.00 to 1.00 but
 < 2.50 to
1.00
	  	3 2.50 to 1.00 but
 < 3.00 to
1.00
	  	3 3.00 to 1.00
	 Revolving Credit Eurocurrency-Based Rate Margin
	  	325.00	  	350.00	  	370.00	  	425.00
	 Revolving Credit Prime-Based Rate Margin
	  	150	  	150	  	170.00	  	250.00
	 Revolving Credit Facility Fee
	  	25.00	  	25.00	  	30.00	  	50.00
	 Letter of Credit Fees (exclusive of facing fees)
	  	250.00	  	275.00	  	295.00	  	400.00

  

	*	Definitions as set forth in the Credit Agreement. 

  

 (847532) 

 Attachment 3 
 Schedule 1.5 
 Pledged Equipment 
 The equipment and machinery attached as Attachment 1 to that certain payoff letter relating to the Borrower dated September 19, 2008 executed by Comerica Bank and delivered to General Electric Capital
Corporation. 
  

 (847532)fs1a3ex10_ea2paybyday.htm

     

     

    Exhibit
10.2

     

    TANNER
FINANCIAL SERVICES INC.

     

     

    MEMORANDUM
OF UNDERSTANDING: 

    SYNDICATED
LEASE TRANSACTIONS WITH VENDOR RECOURSE

     

    1.0    GENERAL

     

    This
memorandum of understanding shall serve to define the terms and conditions of
syndicated business transactions undertaken and/or to be undertaken between
Tannor Financial Services Inc., 4A-385 Fairway Road, Suite 183,
Kitchener, Ontario, N2C
2N9, hereinafter referred to as (the Lessor) and Pay By The Day Company
Inc., 2nd
Floor West, 193 Jardln Drive, Concord, Ontario, L4K 1X5, hereinafter referred
to as (the Vendor) This document, when executed, shall constitute a de facto
contract between the parties for the purpose of structuring syndicated
transactions.

     

    2.0    TERMS
AND
CONDITIONS:

     

    2.1    PAYMENTS:

     

    Tanner
Financial Services Inc. shall pay the vendor the full amount of the contracted
lease obligation for approved Level A Credit applicants. Tanner Financial
Services Inc. will pay the vendor 90% of the contracted lease obligation amount
for approved Level B and C Credit applicants.

     

    2.2    1ST
PAYMENT RECOURSE AGREEMENT
OBLIGATION ON B AND C CREDIT:

     

    Tanner
Financial Services Inc. shall make every effort to undertake a full due
diligence and follow standard operating procedures on all syndicated lease
transactions. The Lessor agrees to share lessee credit information with the
Vendor as part of the shared risk and credit approval process.

     

    If at any
time or from time to time we, the Lessor, give you, the Vendor, written notice
that an event of 1st payment
default under the Agreement has occurred and is continuing and request that you
repossess the Equipment, if repossession can occur, you agree to do so promptly,
in its then condition and location within Canada. The value of the equipment at
time of default equals the Outstanding Amount as per the Amortization Schedule
at that time including any late charges and/or accumulated
interest.

     

    In the
event of 1st payment
default on any syndicated lease transactions, the Vendor will become wholly
responsible for the outstanding amount(s) remaining on said transaction(s). The
Lessor will provide the Vendor with an amortization schedule of the lease(s) in
default and reserves the right to deduct the outstanding monies owed to the
Lessor from future payouts to the Vendor. If no future payouts are forthcoming,
the outstanding amount is due from the Vendor. The Lessor is only entitled to
receive the amount stipulated in the Amortization Schedule plus agreed upon
substantiated
costs or
expenses, if any, related to the defaulted lease. Once the Lessor
receives payout from the Vendor for the Lease Agreement, we will assign to the
Vendor, all of our right, title and interest in the Agreement, any amounts due
thereunder and the Equipment,
without recourse to and without representation or warranties by the
Lessor, of any kind whatsoever.

     

     

    
      
        Tanner
Financial Services Inc. 4A-385 Fairway Road, Suite 182, Kitchener, Ontario.
N2C2N9

         

      

      
        -1-

        
          

        

      

      
         

      

    

     

     

    2.3    REPUDIATION
AND DEFAULT:

     

    Should
the lessee(s) default on their first pre-authorized debit payment, and attempts
by the Lessor to have to Lessee bring the account back into good standing fail,
it shall be conclusively presumed and deemed that the lessee has repudiated the
lease agreement and the Lessor may accept such repudiation. The Lessor will then
notify the Vendor by pre-paid courier, regular mail or fax of the occurrence of
said default along with the lessee amortization schedule specifying the monies
outstanding and needing to be satisfied. Once the Vendor has received this
notification, the Lessor will initiate the Vendor Recourse
Agreement.

     

    The
Lessor agrees to do
all within its power to return a lease back to good or current standing
once the first payment has been missed or the lease becomes in default. The
lessee will be given 15 days notice to bring the account back into good
standing. The Lessor will then allow an additional 15 days before the
outstanding lease amount becomes due from the Vendor. We, the Lessor, will
endeavor to minimize the financial liability of the Vendor in any of the
syndicated [ease transactions that are deemed to be in default.

     

    2.4    LEASE
APPROVAL/DECLINE CRITERIA:

     

    The
Lessor will approve a lease application received from the Vendor under the
following guidelines and/or circumstances:

     

    1)
Completed lease agreement including personal guarantee of lessee or homeowner
with S.I.N. number, driver's license photo ID, name of spouse and spouse's
S.I.N. number (if applicable).

     

    ii) Credit
bureau has proved to be satisfactory to both Lessor and the Vendor.

     

    iii) Signed
delivery & acceptance certificate from the Lessee in the form of a signed
waybill. This will show that the lessee has received the goods and is satisfied
they have received the product they have contracted to purchase.

     

    iv) Lessee
agrees to Pre-Authorized Payment Plan whereby monthly payment will automatically
be withdrawn from their bank account.

     

    v) Automatic
Payments will be debited from the Lessee's bank account on the 15th or
24th
day of each month commencing 30 days from acceptance and delivery. Based on the
date of the acceptance and delivery, the first auto-debit payment will commence
on the date closest to the 15th or
24th
of the following month.

     

    vi) The
Lessor will not accept a lease application under $1,000.00 CDN and there will be
a maximum loan value of $5000.00 CDN.

     

    viii) The
Lessor will not accept a lease application
from a person or persons that do not have a bank account.

     

    ix) The
Lessor reserves the right to decline payment to the Vendor until all paperwork
has been completed and approved.

     

    x) The
Lessor reserves the right to cancel this "Agreement" with the Vendor at any time
and without cause. Lease accounts current at time of cancellation are subject to
the agreement conditions for the duration of the lease term.

     

    xi) The
Vendor will supply the Lessor with an original or faxed signed copy of each
syndicated lease agreement at the Lessor's request.

     

    
 

    
      
        Tanner
Financial Services Inc. 4A-385 Fairway Road, Suite 182, Kitchener, Ontario.
N2C2N9

         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    2.5    RESERVE
ACCOUNT – HOLDBACKS AND DISBURSMENTS:

     

    The
Lessor will add a 3% interest premium to each lease transaction to accumulate in
a reserve account in the event of the one of the following two
scenarios:

     

    i) First and
foremost to be applied against any monies outstanding to the Lessor caused by
defaulted lease(s) to help offset the financial exposure of the Vendor should
the Lessor need to invoke the Vendor Recourse Agreement.

     

    ii) To be
paid out to the Vendor upon successful completion of a lease agreement

     

    3.0    AGREEMENT TO
INDENIFY:

     

    You agree
to indemnify on demand and save the Lessor harmless of, from and against any
losses, damages, penalties, forfeitures, claims, costs, expenses (including
court costs and legal fees and expenses on a solicitor and his own client basis)
or liabilities which may at any time be brought, incurred, assessed or adjudged
against us, relating to, or arising from, the following: any alleged failure by the Vendor to
comply with any applicable laws in your performance or alleged failure on the
Vendors part to keep or perform any of your obligations, express or implied,
with respect to this Agreement; any alleged injury to persons or property or any
violation or invasion of any patent, industrial design, invention or other
intellectual property rights: any government fees, charges, taxes or penalties
levied or imposed in respect of the Agreement; any breach by you of any of your
representation, warranties, covenants or other obligations or agreements
contained in this document, or in any information provided to the Lessor by the
Vendor. If
the Vendor, does not pay the Lessor the amount when due hereunder, you
shall pay interest on such amount, until received by Lessor, at an annual rate
of interest equal to 18%. All of the indemnities and agreements contained in
this paragraph shall survive and continue in full force and effect,
notwithstanding termination of this document or the agreement.

     

    4.0    MISCELLANEOUS

     

    Any
notice, consent or other communication required or permitted to be given or made
hereunder shall be in writing and shall be effectively given or made
if:

     

    
      i)  delivered
personally,

    

     

    
      ii)  sent by
prepaid courier service, or 

       

      iii) sent
by fax.

    

     

    Notices
addressed to the Vendor shall be to the Vendors address set forth on the first
page of this document.

     

    Any
notice or other communication so given, or made shall be conclusively deemed to
have been given or made and to have been received (i) when so personally
delivered, (ii) if sent by fax on the day of sending of the same, provided that
such a day is a business day in the place of the address and if not, on the
first business day thereafter, or (iii) on the date of receipt, if sent by
private courier. Any party hereto may from time to time change its address for
notice by notice to the other party hereto given in the manner
aforesaid.

     

    This
document is made pursuant to the laws of the Province of Ontario and the laws of
Canada applicable therein and shall be governed by and construed, Interpreted
and performed in accordance therewith.

     

     

    
      
        Tanner
Financial Services Inc. 4A-385 Fairway Road, Suite 182,
Kitchener, Ontario. N2C2N9

         

      

      
        -3-

        
          

        

      

      
         

      

    

    

     

     

    
    

     

    Any
agreement between the Lessor and the Vendor does not release the Lessee from
their responsibilities under the lease agreement.

     

    If the
foregoing meets with your approval, kindly so indicate by
signature under the words "Accepted and Approved" at the end of the
signed duplicate of this document and return the duplicate to the Lessor,
whereupon this document shall constitute an agreement between us, effected as of
the date set forth on the bottom of this document.

     

    ACCEPTED
AND APPROVED:

     

     

    PAY
BY THE DAY COMPANY INC.

     

    EXECUTED ON:     July
28/08            

     

    
      
        	
                Jordan
      Starkman

              	 
      	
                President

              	 
      	
                /s/
      Jordan Starkman

              
	
                Name

              	 
      	
                Title

              	 
      	
                Signature

              

      

    

     

     

     

    Tanner Financial Services
Inc. 4A-385 Fairway Road, Suite 182, Kitchener, Ontario. N2C2N9

     

    -4-

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