Document:

Subsidiary Guaranty

    EXHIBIT
      10.2

    

      SUBSIDIARY
        GUARANTY

      

      THIS
        GUARANTY (this “Guaranty”) dated as of February 1, 2007 is made
        by the undersigned (each, a “Guarantor”), in favor of the holders from time to
        time of the Notes hereinafter referred to, including each purchaser named
        in the
        Note Purchase Agreement hereinafter referred to, and their respective successors
        and assigns (collectively, the “Holders” and each individually, a
“Holder”).

       

      W I T N E S S E T H:

      

      WHEREAS,
        Pool Corporation, a Delaware corporation (the “Company”),
        and the initial Holders have entered into a Note Purchase Agreement dated
        as of
        February 1, 2007 (the Note Purchase Agreement as amended, restated or otherwise
        modified from time to time in accordance with its terms and in effect, the
“Note
        Purchase Agreement”); 

       

      

      WHEREAS,
        the Note Purchase Agreement provides for the issuance by the
        Company of $100,000,000 aggregate principal amount of Notes (as defined in
        the
        Note Purchase Agreement);

       

      WHEREAS,
        the Company directly or indirectly owns all or a substantial
        portion of the issued and outstanding capital stock of each Guarantor and,
        by
        virtue of such ownership and otherwise, each Guarantor will derive substantial
        benefits from the purchase by the Holders of the Company’s Notes; 

       

      WHEREAS,
        it is a condition precedent to the obligation of the Holders
        to purchase the Notes that each Guarantor shall have executed and delivered
        this
        Guaranty to the Holders; and

       

      WHEREAS,
        each Guarantor desires to execute and deliver this Guaranty
        to satisfy the conditions described in the preceding paragraph; 

       

      NOW,
        THEREFORE, in consideration of the premises and other benefits
        to each Guarantor, and of the purchase of the Company’s Notes by the Holders,
        and for other good and valuable consideration, the receipt and sufficiency
        of
        which are acknowledged, each Guarantor makes this Guaranty as follows:

       

      SECTION
        1. Definitions. Any capitalized terms not otherwise
        herein defined shall have the meanings attributed to them in the Note Purchase
        Agreement.

       

      SECTION
        2. Guaranty. Each Guarantor, jointly and severally
        with each other Guarantor, unconditionally and irrevocably guarantees to
        the
        Holders the due, prompt and complete payment by the Company of the principal
        of,
        make-whole amount, if any, prepayment premium, if any, breakage amount, if
        any,
        and interest on, and each other amount due under, the Notes or the Note Purchase
        Agreement, when and as the same shall become due and payable (whether at
        stated
        maturity or by required or optional prepayment or by acceleration or otherwise)
        in accordance with the terms of the Notes and the Note Purchase Agreement
        (the
        Notes and the Note Purchase Agreement being sometimes hereinafter collectively
        referred to as the “Note Documents” and the amounts payable by the Company under
        the Note Documents, and all other monetary obligations of the Company thereunder
        (including any attorneys’ fees and expenses), being sometimes collectively
        hereinafter referred to as the “Obligations”). This Guaranty is a guaranty of
        payment and not just of collectibility and is in no way conditioned or
        contingent upon any attempt to collect from the Company or upon any other
        event,
        contingency or circumstance whatsoever. If for any reason whatsoever the
        Company
        shall fail or be unable duly, punctually and fully to pay such amounts as
        and
        when the same shall become due and payable, each Guarantor, without demand,
        presentment, protest or notice of any kind, will forthwith pay or cause to
        be
        paid such amounts to the Holders under the terms of such Note Documents,
        in
        lawful money of the United States, at the place specified in the Note Purchase
        Agreement, or perform or comply with the same or cause the same to be performed
        or complied with, together with interest (to the extent provided for under
        such
        Note Documents) on any amount due and owing from the Company. Each Guarantor,
        promptly after demand, will pay to the Holders the reasonable costs and expenses
        of collecting such amounts or otherwise enforcing this Guaranty, including,
        without limitation, the reasonable fees and expenses of counsel. Notwithstanding
        the foregoing, the right of recovery against each Guarantor under this Guaranty
        is limited to the extent it is judicially determined with respect to any
        Guarantor that entering into this Guaranty would violate Section 548 of the
        United States Bankruptcy Code or any comparable provisions of any state law,
        in
        which case such Guarantor shall be liable under this Guaranty only for amounts
        aggregating up to the largest amount that would not render such Guarantor’s
        obligations hereunder subject to avoidance under Section 548 of the United
        States Bankruptcy Code or any comparable provisions of any state law.

       

      SECTION
        3. Guarantor’s Obligations Unconditional. The
        obligations of each Guarantor under this Guaranty shall be primary, absolute
        and
        unconditional obligations of each Guarantor, shall not be subject to any
        counterclaim, set-off, deduction, diminution, abatement, recoupment, suspension,
        deferment, reduction or defense based upon any claim each Guarantor or any
        other
        person may have against the Company or any other person, and to the full
        extent
        permitted by applicable law shall remain in full force and effect without
        regard
        to, and shall not be released, discharged or in any way affected by, any
        circumstance or condition whatsoever (whether or not each Guarantor or the
        Company shall have any knowledge or notice thereof), including:

       

      (a) any
        termination, amendment or modification of or deletion from or addition or
        supplement to or other change in any of the Note Documents or any other
        instrument or agreement applicable to any of the parties to any of the Note
        Documents;

      

      (b) any
        furnishing or acceptance of any security, or any release of any security,
        for
        the Obligations, or the failure of any security or the failure of any person
        to
        perfect any interest in any collateral;

      

      (c) any
        failure, omission or delay on the part of the Company to conform or comply
        with
        any term of any of the Note Documents or any other instrument or agreement
        referred to in paragraph (a) above, including, without limitation, failure
        to
        give notice to any Guarantor of the occurrence of a “Default” or an “Event of
        Default” under any Note Document;

      

      (d) any
        waiver
        of the payment, performance or observance of any of the obligations, conditions,
        covenants or agreements contained in any Note Document, or any other waiver,
        consent, extension, indulgence, compromise, settlement, release or other
        action
        or inaction under or in respect of any of the Note Documents or any other
        instrument or agreement referred to in paragraph (a) above or any obligation
        or
        liability of the Company, or any exercise or non-exercise of any right, remedy,
        power or privilege under or in respect of any such instrument or agreement
        or
        any such obligation or liability;

      

      (e) any
        failure, omission or delay on the part of any of the Holders to enforce,
        assert
        or exercise any right, power or remedy conferred on such Holder in this
        Guaranty, or any such failure, omission or delay on the part of such Holder
        in
        connection with any Note Document, or any other action on the part of such
        Holder;

      

      (f) any
        voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement,
        readjustment, assignment for the benefit of creditors, composition,
        receivership, conservatorship, custodianship, liquidation, marshaling of
        assets
        and liabilities or similar proceedings with respect to the Company, any
        Guarantor or to any other person or any of their respective properties or
        creditors, or any action taken by any trustee or receiver or by any court
        in any
        such proceeding;

      

      (g) any
        discharge, termination, cancellation, frustration, irregularity, invalidity
        or
        unenforceability, in whole or in part, of any of the Note Documents or any
        other
        agreement or instrument referred to in paragraph (a) above or any term
        hereof;

      

      (h) any
        merger
        or consolidation of the Company or any Guarantor into or with any other
        corporation, or any sale, lease or transfer of any of the assets of the Company
        or any Guarantor to any other person;

      

      (i) any
        change
        in the ownership of any shares of capital stock of the Company or any change
        in
        the corporate relationship between the Company and any Guarantor, or any
        termination of such relationship;

      

      (j) any
        release or discharge, by operation of law, of any Guarantor from the performance
        or observance of any obligation, covenant or agreement contained in this
        Guaranty; or 

      

      (k) any
        other
        occurrence, circumstance, happening or event whatsoever, whether similar
        or
        dissimilar to the foregoing, whether foreseen or unforeseen, and any other
        circumstance which might otherwise constitute a legal or equitable defense
        or
        discharge of the liabilities of a guarantor or surety or which might otherwise
        limit recourse against any Guarantor.

      

      SECTION
        4. Full Recourse Obligations. The obligations of each
        Guarantor set forth herein constitute the full recourse obligations of such
        Guarantor enforceable against it to the full extent of all its assets and
        properties.

       

      SECTION
        5. Waiver. Each Guarantor unconditionally waives, to
        the extent permitted by applicable law, (a) notice of any of the matters
        referred to in Section 3, (b) notice to such Guarantor of the incurrence of
        any of the Obligations, notice to such Guarantor or the Company of any breach
        or
        default by such Guarantor or the Company with respect to any of the Obligations
        or any other notice that may be required, by statute, rule of law or otherwise,
        to preserve any rights of the Holders against such Guarantor,
        (c) presentment to or demand of payment from the Company or the Guarantor
        with respect to any amount due under any Note Document or protest for nonpayment
        or dishonor, (d) any right to the enforcement, assertion or exercise by any
        of the Holders of any right, power, privilege or remedy conferred in the
        Note
        Purchase Agreement or any other Note Document or otherwise, (e) any
        requirement of diligence on the part of any of the Holders, (f) any
        requirement to exhaust any remedies or to mitigate the damages resulting
        from
        any default under any Note Document, (g) any notice of any sale, transfer
        or other disposition by any of the Holders of any right, title to or interest
        in
        the Note Purchase Agreement or in any other Note Document and (h) any other
        circumstance whatsoever which might otherwise constitute a legal or equitable
        discharge, release (other than a release of such Guarantor herefrom pursuant
        to
        Section 9.7(b) of the Note Purchase Agreement) or defense of a guarantor
        or
        surety (other than the defense of payment) or which might otherwise limit
        recourse against such Guarantor.

       

      SECTION
        6. Subrogation, Contribution, Reimbursement or
        Indemnity. Until all Obligations have been indefeasibly paid in full, each
        Guarantor agrees not to take any action pursuant to any rights which may
        have
        arisen in connection with this Guaranty to be subrogated to any of the rights
        (whether contractual, under the United States Bankruptcy Code, as amended,
        including Section 509 thereof, under common law or otherwise) of any of the
        Holders against the Company or against any collateral security or guaranty
        or
        right of offset held by the Holders for the payment of the Obligations. Until
        all Obligations have been indefeasibly paid in full, each Guarantor agrees
        not
        to take any action pursuant to any contractual, common law, statutory or
        other
        rights of reimbursement, contribution, exoneration or indemnity (or any similar
        right) from or against the Company which may have arisen in connection with
        this
        Guaranty. So long as any Obligations remain outstanding, if any amount shall
        be
        paid by or on behalf of the Company to any Guarantor on account of any of
        the
        rights waived in this Section 6, such amount shall be held by such Guarantor
        in
        trust, segregated from other funds of such Guarantor, and shall, forthwith
        upon
        receipt by such Guarantor, be turned over to the Holders (duly endorsed by
        such
        Guarantor to the Holders, if required), to be applied against the Obligations,
        whether matured or unmatured, in such order as the Holders may determine.
        The
        provisions of this Section 6 shall survive the term of this Guaranty and
        the
        payment in full of the Obligations.

       

      SECTION
        7. Effect of Bankruptcy Proceedings, etc. This
        Guaranty shall continue to be effective or be automatically reinstated, as
        the
        case may be, if at any time payment, in whole or in part, of any of the sums
        due
        to any of the Holders pursuant to the terms of the Note Purchase Agreement
        or
        any other Note Document is rescinded or must otherwise be restored or returned
        by such Holder upon the insolvency, bankruptcy, dissolution, liquidation
        or
        reorganization of the Company or any other person, or upon or as a result
        of the
        appointment of a custodian, receiver, trustee or other officer with similar
        powers with respect to the Company or other person or any substantial part
        of
        its property, or otherwise, all as though such payment had not been made.
        If an
        event permitting the acceleration of the maturity of the principal amount
        of the
        Notes shall at any time have occurred and be continuing, and such acceleration
        shall at such time be prevented by reason of the pendency against the Company
        or
        any other person of a case or proceeding under a bankruptcy or insolvency
        law,
        each Guarantor agrees that, for purposes of this Guaranty and its obligations
        hereunder, the maturity of the principal amount of the Notes and all other
        Obligations shall be deemed to have been accelerated with the same effect
        as if
        any Holder had accelerated the same in accordance with the terms of the Note
        Purchase Agreement or other applicable Note Document, and such Guarantor
        shall
        forthwith pay such principal amount, LIBOR Breakage Amount, if any, and interest
        thereon and any other amounts guaranteed hereunder without further notice
        or
        demand.

       

      SECTION
        8. Term of Agreement. This Guaranty and all
        guaranties, covenants and agreements of each Guarantor contained herein shall
        continue in full force and effect and shall not be discharged until such
        time as
        all of the Obligations shall be paid and performed in full and all of the
        agreements of such Guarantor hereunder shall be duly paid and performed in
        full;
        provided that each Guarantor shall be automatically and immediately released
        herefrom without any further act by any Person as provided in Section 9.7(b)
        of
        the Note Purchase Agreement.

       

      SECTION
        9. Representations and Warranties. Each Guarantor
        represents and warrants to each Holder that:

       

      (a) such
        Guarantor is duly organized, validly existing and in good standing under
        the
        laws of its jurisdiction of organization and has the requisite power and
        authority to own and operate its property, to lease the property it operates
        as
        lessee and to conduct the business in which it is currently engaged;

      

      (b) such
        Guarantor has the requisite power and authority and the legal right to execute
        and deliver, and to perform its obligations under, this Guaranty, and has
        taken
        all necessary action to authorize its execution, delivery and performance
        of
        this Guaranty;

      

      (c) this
        Guaranty constitutes a legal, valid and binding obligation of such Guarantor
        enforceable in accordance with its terms, except as enforceability may be
        limited by bankruptcy, insolvency, reorganization, moratorium or similar
        laws
        affecting the enforcement of creditors’ rights generally and by general
        equitable principles (regardless of whether such enforceability is considered
        in
        a proceeding in equity or at law);

      

      (d) the
        execution, delivery and performance of this Guaranty will not
        (i) contravene, result in any breach of, or constitute a default under, or
        result in the creation of any Lien in respect of any property of such Guarantor
        under any indenture, mortgage, deed of trust, loan, credit agreement, corporate
        charter or by-laws, or any other agreement evidencing Debt, (ii) contravene,
        result in any breach of, or constitute a default under, or result in the
        creation of any Lien in respect of any property of such Guarantor under,
        any
        other agreement or instrument to which such Guarantor is bound or by which
        such
        Guarantor or any of its properties may be bound or affected, except as could
        not
        reasonably be expected to have a Material Adverse Effect, (iii) conflict
        with or
        result in a breach of any of the terms, conditions or provisions of any order,
        judgment, decree, or ruling of any court, arbitrator or Governmental Authority
        applicable to such Guarantor, except as could not reasonably be expected
        to have
        a Material Adverse Effect, or (iv) violate any provision of any statute or
        other rule or regulation of any Governmental Authority applicable to such
        Guarantor, except as could not reasonably be expected to have a Material
        Adverse
        Effect;

      

      (e) no
        consent, approval or authorization of, or registration, filing or declaration
        with, any Governmental Authority is required in connection with the execution,
        delivery or performance by such Guarantor of this Guaranty; 

      

      (f) except
        as
        disclosed in Section 5.8 of the Note Purchase Agreement, no litigation,
        investigation or proceeding of or before any arbitrator or governmental
        authority is pending or, to the knowledge of such Guarantor, threatened by
        or
        against such Guarantor or any of its properties or revenues (i) with
        respect to this Guaranty or any of the transactions contemplated hereby or
        (ii) that could reasonably be expected to have a material adverse effect
        upon the business, operations or financial condition of such Guarantor and
        its
        Subsidiaries taken as a whole;

      

      (g) such
        Guarantor (after giving due consideration to any rights of contribution)
        has
        received fair consideration and reasonably equivalent value for the incurrence
        of its obligations hereunder or as contemplated hereby and after giving effect
        to the transactions contemplated herein, (i) the fair value of the assets
        of such Guarantor (both at fair valuation and at present fair saleable value)
        exceeds its liabilities, (ii) such Guarantor is able to and expects to be
        able
        to pay its debts as they mature, and (iii) such Guarantor has capital
        sufficient to carry on its business as conducted and as proposed to be
        conducted.

      

        SECTION
          10. Notices. All notices and communications provided for hereunder shall
          be in writing and sent (a) by facsimile if the sender on the same day sends
          a confirming copy of such notice by a recognized overnight delivery service
          (charges prepaid), (b) by registered or certified mail with return receipt
          requested (postage prepaid), or (c) by a recognized overnight delivery
          service (with charges prepaid), addressed (a) if to the Company or any
          Holder at the address or telecopy number set forth in the Note Purchase
          Agreement or (b) if to a Guarantor, in care of the Company at the Company’s
          address or telecopy number set forth in the Note Purchase Agreement, or
          in each
          case at such other address or telecopy number as the Company, any Holder
          or such
          Guarantor shall from time to time designate in writing to the other parties.
          Any
          notice so addressed shall be deemed to be given when actually
          received.

       

      SECTION
        11. Survival. All warranties, representations and
        covenants made by each Guarantor herein or in any certificate or other
        instrument delivered by it or on its behalf hereunder shall be considered
        to
        have been relied upon by the Holders and shall survive the execution and
        delivery of this Guaranty, regardless of any investigation made by any of
        the
        Holders. All statements in any such certificate or other instrument shall
        constitute warranties and representations by such Guarantor hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SECTION
        12. Jurisdiction and Process; Waiver of Jury Trial. 

       

      (a) Each
        Guarantor irrevocably submits to the non exclusive jurisdiction of any New
        York
        State or federal court sitting in the Borough of Manhattan, The City of New
        York, over any suit, action or proceeding arising out of or relating solely
        to
        this Agreement or the Notes. To the fullest extent permitted by applicable
        law,
        each Guarantor irrevocably waives and agrees not to assert, by way of motion,
        as
        a defense or otherwise, any claim that it is not subject to the jurisdiction
        of
        any such court, any objection that it may now or hereafter have to the laying
        of
        the venue of any such suit, action or proceeding brought in any such court
        and
        any claim that any such suit, action or proceeding brought in any such court
        has
        been brought in an inconvenient forum.

      

      (b) Each
        Guarantor consents to process being served in any suit, action or proceeding
        solely of the nature referred to in Section 12(a) by mailing a copy thereof
        by
        registered or certified or priority mail, postage prepaid, return receipt
        requested, or delivering a copy thereof in the manner for delivery of notices
        specified in Section 10, to it. Each Guarantor agrees that such service upon
        receipt (i) shall be deemed in every respect effective service of process
        upon
        it in any such suit, action or proceeding and (ii) shall, to the fullest
        extent
        permitted by applicable law, be taken and held to be valid personal service
        upon
        and personal delivery to it. Notices hereunder shall be conclusively presumed
        received as evidenced by a delivery receipt furnished by the United States
        Postal Service or any reputable commercial delivery service.

      

      (c) Nothing
        in
        this Section 12 shall affect the right of any holder of a Note to serve process
        in any manner permitted by law, or limit any right that the holders of any
        of
        the Notes may have to bring proceedings against any Guarantor in the courts
        of
        any appropriate jurisdiction or to enforce in any lawful manner a judgment
        obtained in one jurisdiction in any other jurisdiction.

      

      (d) EACH
        GUARANTOR WAIVES TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO
        THIS
        AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH
        OR
        THEREWITH.

      

      SECTION
        13. Miscellaneous. Any provision of this Guaranty
        which is prohibited or unenforceable in any jurisdiction shall, as to such
        jurisdiction, be ineffective to the extent of such prohibition or
        unenforceability without invalidating the remaining provisions hereof, and
        any
        such prohibition or unenforceability in any jurisdiction shall not invalidate
        or
        render unenforceable such provision in any other jurisdiction. To the extent
        permitted by applicable law, each Guarantor hereby waives any provision of
        law
        that renders any provisions hereof prohibited or unenforceable in any respect.
        The terms of this Guaranty shall be binding upon, and inure to the benefit
        of,
        each Guarantor and the Holders and their respective successors and assigns.
        No
        term or provision of this Guaranty may be changed, waived, discharged or
        terminated orally, but only by an instrument in writing signed by each Guarantor
        and the Required Holders. The section and paragraph headings in this Guaranty
        and the table of contents are for convenience of reference only and shall
        not
        modify, define, expand or limit any of the terms or provisions hereof, and
        all
        references herein to numbered sections, unless otherwise indicated, are to
        sections in this Guaranty. This Guaranty shall in all respects be governed
        by,
        and construed in accordance with, the laws of the State of New York, including
        all matters of construction, validity and performance.

       

      [REMAINDER
        OF PAGE LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

       

      

       

      
        
          
            CHIC_

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, each Guarantor has caused
        this Guaranty to be duly executed as of the day and year first above
        written.

      

      
        	
                SCP
                  DISTRIBUTORS LLC, 

                a
                  Delaware limited liability company

                 

                 

                By:      /s/
                  Craig K.
                  Hubbard  

                Name:      Craig
                  K. Hubbard

                Title: 
     Treasurer

              	
                ALLIANCE
                  TRADING, INC., 

                a
                  Delaware corporation

                 

                 

                By:
  /s/
                  Shaleen Lee  

                Name:
  Shaleen
                  Lee

                Title:  
  Secretary

              
	
                 

                CYPRESS,
                  INC., 

                a
                  Nevada corporation

                 

                 

                By:
  /s/
                  Shaleen Lee  

                Name:
  Shaleen
                  Lee

                Title:  
  Secretary

              	
                 

                SUPERIOR
                  POOL PRODUCTS LLC, 

                a
                  Delaware limited liability company

                 

                 

                By:
  /s/
                  Craig K. Hubbard  

                Name:
  Craig
                  K. Hubbard

                Title:  
  Treasurer

              
	
                 

                SCP
                  ACQUISITION CO. LLC, 

                a
                  Delaware limited liability company

                 

                By:
                  SCP Distributors LLC, its Sole Member

                 

                By:    /s/
                  Craig K.
                  Hubbard  

                Name:   Craig
                  K. Hubbard

                Title: 
   Treasurer

              	
                 

                SCP
                  INTERNATIONAL, INC., 

                a
                  Delaware corporation

                 

                 

                By:
  /s/
                  Mark W. Joslin  

                Name:  Mark
                  W. Joslin

                Title: 
  Treasurer

              
	
                 

                POOL
                  DEVELOPMENT LLC, 

                a
                  Delaware limited liability company

                 

                 

                By:
  /s/
                  Mark W. Joslin  

                Name:
  Mark
                  W. Joslin

                Title:  
  Treasurer

              	
                 

                SPLASH
                  HOLDINGS, INC., 

                an
                  Indiana corporation

                 

                 

                By:
  /s/
                  Mark W. Joslin  

                Name:
  Mark
                  W. Joslin

                Title:  
  Treasurer

              
	
                 

                HORIZON
                  DISTRIBUTORS, INC., 

                a
                  Delaware corporation

                 

                 

                By:
  /s/
                  Jennifer M. Neil  

                Name:
  Jennifer
                  M. Neil

                Title:  Secretary

              	
                 

                POOLCORP
                  FINANCIAL MORTGAGE, LLC, a Delaware limited liability
                  company

                 

                 

                By:
  /s/
                  Mark W. Joslin  

                Name:
  Mark
                  W. Joslin

                Title:  
  President
&
                  TreasurerExhibit 10.1 - Waiver and Amendment

    EXHIBIT
      10.1

     

    WAIVER
      and AMENDMENT, dated
      as
      of February 14, 2007 (this “Waiver”),
      executed in connection with the FINANCING
      AGREEMENT, dated
      as
      of June 8, 2005 (as the same has heretofore been amended and may hereafter
      be
      amended, restated, modified or supplemented from time to time, the “Financing
      Agreement”),
      among
MTM
      TECHNOLOGIES, INC.,
      a New
      York corporation (“Parent”),
      each
      of
      its subsidiaries that is a party thereto (each of Parent and each such
      subsidiary, a “Company”
and
      collectively the “Companies”),
      and
      any other entity that becomes a party thereto as a borrower and THE
      CIT GROUP/BUSINESS CREDIT, INC.,
      a New
      York corporation (“CIT”),
      and
      any other entity becoming a Lender (collectively, the “Lenders”
and
      each individually as a “Lender”),
      and
      CIT, as Agent for the Lenders (the “Agent”).
      Terms
      which are capitalized in this Waiver and not otherwise defined shall have the
      meanings ascribed to such terms in the Financing Agreement.

     

    WHEREAS,
      the
      Companies have requested that the Lenders (i) waive as Events of Default the
      violation by the Companies of the Consolidated Fixed Charge Coverage Ratio
      and
      the Consolidated Senior Leverage Ratio requirements for the period of four
      consecutive fiscal quarters ending on or about December 31, 2006, and
      (ii)
      waive
      the breach by the Companies of any representations and warranties set forth
      in
      the Financing Agreement or any other Loan Documents to which they are a party
      solely as a result of the foregoing, and
      the
      Lenders have agreed to the foregoing requests, on the terms and subject to
      satisfaction of the conditions contained in this Waiver;

     

    WHEREAS,
      the
      Lenders have requested that the Companies agree to modify certain
      terms of the Financing Agreement, and the Companies have agreed to the foregoing
      request, on the terms and subject to the satisfaction of the conditions
      contained in this Waiver;

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises contained herein, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    Section
      One.    Amendment. Effective
      as of the date hereof, upon the satisfaction of the conditions precedent set
      forth in Section Four hereof, the Financing Agreement is hereby amended as
      follows:

     

    (a)
      Section
      1.1.
      Defined
      Terms.
      Section
      1.1 of the Financing Agreement is amended by adding the new defined term
      Consolidated Liquidity, in the appropriate alphabetical order, and the
      definition thereof, as follows:

     

    “Consolidated
      Liquidity
      shall
      mean, as of any date of determination, the sum of (x) all cash and cash
      equivalents on the Consolidated Balance Sheet, calculated after giving effect
      to
      all checks, drafts and other negotiable instruments issued by and drawn on
      a
      bank account of any Company, which checks, drafts and other negotiable
      instruments have not been presented for payment as of the opening of business
      on
      such date of determination, but not including cash reserved for accrued payroll
      obligations, plus (y) the amount of Net Availability.”

     

    (b)
      Section
      7.2(h).
      Financial
      Reporting.
      Section
      7.2(h) of the Financing Agreement is amended by adding new clause (v) thereto,
      as follows: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “(v)
      on a
      weekly basis, a financial report, in form and substance reasonably satisfactory
      to the Agent, which report shall indicate the amount of Consolidated Liquidity
      as of the last day of the previous week, together with a calculation thereof,
      in
      reasonable detail.”

     

    (c)
      Section
      7.3.
      Financial
      Covenants.
      Section
      7.3 of the Financing Agreement is amended by adding new subsection (d) thereto,
      as follows:

     

    “(d)
      Consolidated
      Liquidity.
      To
      cause the Parent to have Consolidated Liquidity of not less than $2,500,000
      at
      all times through and including March 31, 2007, and Consolidated Liquidity
      of
      not less than $3,000,000 at all times thereafter.”

     

    Section
      Two.    Waivers.
      The
      Companies have advised the Lenders that Parent has (i) failed to maintain a
      Consolidated Senior Leverage Ratio for the period of four consecutive fiscal
      quarters ending on or about December 31, 2006 of not greater than 4.00 to 1.00,
      in violation of Section 7.3(a) of the Financing Agreement, and (ii) failed
      to
      maintain a Consolidated Fixed Charge Coverage Ratio for the period of four
      consecutive fiscal quarters ending on or about December 31, 2006 of not less
      than 1.00 to 1.00, in violation of Section 7.3(b) of the Financing Agreement.
      Each such violation constitutes an Event of Default under Section 10.1(e) of
      the
      Financing Agreement (such Events of Default, collectively, the “Financial
      Covenant Defaults”).
      Effective as of the date hereof, upon the satisfaction of the conditions
      precedent set forth in Section Four hereof, and subject to the satisfaction
      of
      the conditions subsequent set forth in Section Five hereof, the Lenders hereby
      waive the Financial Covenant Defaults
      and any
      breach by the Companies of any representations and warranties set forth in
      the
      Financing Agreement or any other Loan Document to which they are a party solely
      as a result of the foregoing (each such breach, together with the Financial
      Covenant Defaults, the “Designated
      Defaults”)
      as
      Events
      of Default; provided,
      however,
      nothing
      contained herein shall constitute a waiver by the Lenders of any other Event
      of
      Default, whether or not they have any knowledge thereof, nor shall anything
      contained herein constitute a waiver of any future Event of Default whatsoever.
      Henceforth, the Lenders shall require strict compliance by the Companies with
      all of the terms and provisions contained in the Financing
      Agreement.

     

    Section
      Three.    Representations
      and Warranties.
      To
      induce the Lenders to enter into this Waiver, each Company hereby warrants
      and
      represents to the Lenders as follows:

     

    (a)  all
      of
      the representations and warranties contained in the Financing Agreement and
      each
      other Loan Document to which such Company is a party continue to be true and
      correct in all material respects as of the date hereof, as if repeated as of
      the
      date hereof, except (i)
      with
      respect to the absence of the occurrence and continuation of any Event of
      Default, as to which the Lenders acknowledge the occurrence of the Designated
      Defaults, and (ii) to
      the
      extent of changes resulting from transactions expressly permitted by the
      Financing Agreement, this Waiver or any of the other Loan Documents, or to
      the
      extent that
      such
      representations and warranties are expressly
      made
only
      as
      of
an
      earlier
      date;

     

    (b)  the
      execution, delivery and performance of this Waiver by such Company is within
      its
      corporate powers, has been duly authorized by all necessary corporate action,
      and such Company has received all necessary consents and approvals, if any
      are
      required, for the execution and delivery of this Waiver;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  upon
      the
      execution of this Waiver, this Waiver shall constitute the legal, valid and
      binding obligation of such Company, enforceable against such Company in
      accordance with its terms, except as such enforceability may be limited by
      (i)
      bankruptcy, insolvency or similar laws affecting creditors’ rights generally and
      (ii) general principles of equity; and

     

    (d)  neither
      the execution and delivery of this Waiver, nor the consummation of the
      transactions herein contemplated, nor compliance with the provisions hereof
      will
      (i) violate any law or regulation applicable to any Company, (ii) cause a
      violation by any Company of any order or decree of any court or government
      instrumentality applicable to it, (iii) conflict with, or result in the breach
      of, or constitute a default under, any indenture, mortgage, deed of trust,
      or
      other material agreement or material instrument to which any Company is a party
      or by which it may be bound, (iv) result in the creation or imposition of any
      lien, charge, or encumbrance upon any of the property of any Company, except
      in
      favor of the Lenders, to secure the Obligations, (v) violate any provision
      of
      the Certificate of Incorporation, By-Laws or any capital stock provisions of
      any
      Company, or (vi) be reasonably likely to have a Material Adverse
      Effect.

     

    Section
      Four.    Conditions
      Precedent.
      This
      Waiver shall become effective upon the satisfaction of the following conditions
      precedent:

     

    (a)  the
      Agent
      shall have received an original of this Waiver, duly executed by all of the
      parties hereto other than CIT;

     

    (b)  the
      Agent
      shall have received and reviewed to its satisfaction a
      copy of
      the fully executed waiver of Textron of all events of default existing under
      the
      Textron Loan Agreement;

     

    (c)  the
      Agent
      shall have received and reviewed to its satisfaction a copy of the fully
      executed waiver of Columbia Partners, L.L.C. Investment Management and National
      Electrical Benefit Fund (collectively, the “Columbia
      Lenders”)
      of all
      events of default existing under that certain Credit Agreement dated as of
      November 23, 2005, by and among the Columbia Lenders, on the one hand, and
      Parent, together with each
      of
      its subsidiaries that is a party thereto, on the other hand;

     

    (d)  the
      Agent
      shall have received a duly executed original of that certain letter agreement,
      dated as of the date hereof, among the Agent and the Companies (the
“Letter
      Agreement”);

     

    (e)  the
      Agent
      shall have received a non-refundable fee in the amount of $20,000 (the
“Fee”),
      for
      the pro rata benefit of the Lenders, which shall be fully earned on the date
      hereof. The Companies authorize Agent to charge their loan account with the
      amount of the Fee; and

     

    (f)  except
      for the Designated Defaults, no Default or Event of Default, and no event or
      development which has had or is reasonably likely to have a Material Adverse
      Effect, shall have occurred or be continuing on the date hereof.
      

     

    Section
      Five.    Conditions
      Subsequent.
      The
      waiver of the Designated Defaults contained in Section Two hereof shall remain
      effective provided the Companies satisfy the conditions subsequent set forth
      in
      the Letter Agreement on or before the respective dates set forth therein. Upon
      the Companies’ failure to satisfy on a timely basis any of the conditions

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    subsequent
      set forth in the Letter Agreement, the waiver of the Designated Defaults
      contained in Section Two hereof shall be null and void, and each Designated
      Default shall immediately be deemed to constitute a continuing Event of Default,
      notwithstanding anything to the contrary contained herein.

     

    Section
      Six.    General
      Provsions.

     

    (a)  Except
      as
      herein expressly amended, the Financing Agreement and all other agreements,
      documents, instruments and certificates executed in connection therewith, are
      ratified and confirmed in all respects and shall remain in full force and effect
      in accordance with their respective terms.

     

    (b)  This
      Waiver embodies the entire agreement between the parties hereto with respect
      to
      the subject matter hereof and supercedes all prior agreements, commitments,
      arrangements, negotiations or understandings, whether written or oral, of the
      parties with respect thereto.

     

    (c)  This
      Waiver, and matters relating hereto and arising herefore, shall be governed
      by
      and construed in accordance with the internal laws of the State of New York,
      without regard to the conflicts of law principals thereof.

     

    (d)  This
      Waiver may be executed in any number of counterparts, each of which when so
      executed shall be deemed to be an original, and such counterparts together
      shall
      constitute one and the same respective agreement.

     

     

    (Signature
      Page Follows)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the
      parties to this Waiver have signed below to indicate their agreement with the
      foregoing and their intent to be bound thereby.

     

    
      
        
          
            	 	
                    THE
                      CIT GROUP/BUSINESS CREDIT, INC., as a Lender and as the
                      Agent

                  
	 	 	 
	 	
                    By:

                  	
                    /s/
                      Andrew Hausspiegel

                  
	 	 	
                    Name:
                      Andrew Hausspiegel

                    Title:  
                      Vice President

                  
	 	 	 
	 	
                    MTM
                      TECHNOLOGIES, INC.,

                    for
                      itself and as Borrowing Agent, and as successor by merger with
                      each of MTM
                      Technologies (California), Inc., and MTM Technologies (Texas),
                      Inc.

                  
	 	 	 
	 	
                    By:

                  	
                    /s/
                      J.W. Braukman III

                  
	 	 	
                    Name:
                      J.W. Braukman III

                    Title:  
                      Senior Vice President and Chief
                      Financial Officer

                  
	 	 	 
	 	
                    MTM
                      TECHNOLOGIES (US), INC.

                  
	 	 	 
	 	
                    By:

                  	
                    By:
                      /s/ J.W. Braukman III

                  
	 	 	
                    Name:
                      J.W. Braukman III

                  
	 	 	
                    Title:  
                      Senior Vice President and Chief
                      Financial Officer

                  
	 	 	 
	 	
                    INFO
                      SYSTEMS, INC.

                  
	 	 	 
	 	
                    By:

                  	
                    /s/
                      J.W. Braukman III

                  
	 	 	
                    Name: J.W.
                      Braukman III

                  
	 	 	
                    Title:  
                      Senior Vice President and Chief
                      Financial Officer

                  
	 	 	 
	 	
                    MTM
                      TECHNOLOGIES (MASSACHUSETTS), LLC

                  
	 	 	 
	 	
                    By:

                  	
                    /s/
                      J.W. Braukman III

                  
	 	 	
                    Name:
                      J.W. Braukman III

                  
	 	 	
                    Title:  
                      Senior Vice President and Chief
                      Financial Officer

                  

          

        

      

    

     

     

    Signature
      Page to Waiver and Amendment (February 2007)

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