Document:

EXHIBIT 10.2

                        AMENDMENT TO EMPLOYMENT AGREEMENT

     This Amendment to Employment Agreement (this "Agreement"), dated as of
August 12, 2008 and effective as of March 5, 2008 (the "Amendment Date"), is
between ESCALA GROUP, INC., a Delaware corporation (the "Company"), and CAROL
MELTZER, an individual ("Executive").

     WHEREAS, the Company and Executive are parties to an Amended and Restated
Employment Agreement, dated as of December 5, 2006 (the "Original Agreement"),
pursuant to which Executive has been employed by the Company as its General
Counsel and Executive Vice President;

     WHEREAS, the parties desire to amend the Original Agreement.

     NOW, THEREFORE, the parties agree as follows:

     1. Effective as of the Amendment Date, the last sentence of paragraph (a)
of Section 2 ("Employment") of the Original Agreement is hereby amended to read
as follows:

        "Executive shall serve as the General Counsel, Chief Administrative
        Officer and Executive Vice President of the Company, and shall report
        to the Chief Executive Officer and Board of Directors of the Company."

     2. Effective as of the Amendment Date, the words "New York, New York", as
they appear in the first sentence of paragraph (c) of Section 2, shall be
replaced by the words "Bethel, Connecticut."

     3. Effective as of the Amendment Date, subparagraph (ii) of paragraph (e)
of Section 4 ("Termination of Employment") of the Original Agreement is hereby
amended to read in is entirety as follows:

        "(ii) Executive no longer holds the offices of both General Counsel
        and Chief Administrative Officer of the Company, or her functions
        and/or duties are materially diminished;"

     4. Effective as of the Amendment Date, subparagraph(iii) of paragraph (e)
of Section 4 ("Termination of Employment") of the Original Agreement is hereby
amended to read in its entirety as follows:

        "(iii) Executive's job site is relocated to a location which is more
        than 100 miles from Bethel, CT, unless the parties mutually agree to
        such relocation,"

<PAGE>

     5. This Agreement is governed by the laws of the State of New York, without
giving effect to principles of conflict of laws.

     6. Except as specifically amended hereby, the Original Agreement shall
remain in full force and effect in accordance with its terms. This Agreement
shall not constitute an amendment to or modification of any other agreement
between the parties hereto. Capitalized terms used herein and not otherwise
defined will have their meanings as set forth in the Original Agreement.

                                    ESCALA GROUP, INC.

                                    By: /s/ Greg Roberts
                                            ------------
                                        Greg Roberts,
                                        President and Chief Executive Officer

                                    /s/ Carol Meltzer
                                        ------------
                                    CAROL MELTZER

                                       2Exhibit 10.1
    

    

    

    

    

    
      LOAN AND SECURITY AGREEMENT
    

    

    

    
      by and among
    

    

    

    
      HERCULES FUNDING II LLC 
    

    

    

    
      as Borrower,
    

    

    

    
      THE LENDERS THAT ARE SIGNATORIES HERETO
    

    
      as the Lenders,
    

    
      and
    

    
      WELLS FARGO FOOTHILL, LLC 
    

    
      as the Arranger and Administrative Agent, 
    

    

    

    

    

    
      Dated as of August 25, 2008
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      TABLE OF CONTENTS
    

    
    	
          
            1.
          

        	
          
            DEFINITIONS AND CONSTRUCTION
          

        	
          1
        
	

        	

        	

        	
           
        
	

        	
          1.1
        	
          Definitions
        	
          1
        
	

        	
          1.2
        	
          Accounting Terms
        	
          24
        
	

        	
          1.3
        	
          Code
        	
          24
        
	

        	
          1.4
        	
          Construction
        	
          
            24
          

        
	

        	
          1.5
        	
          Schedules and Exhibits
        	
          25
        
	

        	

        	

        	
           
        
	
          
            2.
          

        	
          
            LOAN AND TERMS OF PAYMENT
          

        	
          25
        
	

        	

        	

        	
           
        
	

        	
          2.1
        	
          Revolver Advances
        	
          25
        
	

        	
          2.2
        	
          Borrowing Procedures and Settlements
        	
          26
        
	

        	
          2.3
        	
          Payments
        	
          32
        
	

        	
          2.4
        	
          Overadvances
        	
          35
        
	

        	
          2.5
        	
          Interest Rates: Rates, Payments, and Calculations
        	
          35
        
	

        	
          2.6
        	
          Cash Management
        	
          36
        
	

        	
          2.7
        	
          Crediting Payments
        	
          37
        
	

        	
          2.8
        	
          Designated Account
        	
          38
        
	

        	
          2.9
        	
          Maintenance of Loan Account; Statements of Obligations
        	
          38
        
	

        	
          2.10
        	
          Fees
        	
          38
        
	

        	
          2.11
        	
          Capital Requirements
        	
          39
        
	

        	
          2.12
        	
          LIBOR Option
        	
          39
        
	

        	

        	
          
             
          

        	

        
	
          
            3.
          

        	
          
            CONDITIONS; TERM OF AGREEMENT
          

        	
          41
        
	

        	

        	

        	
           
        
	

        	
          3.1
        	
          Conditions Precedent to the Initial Extension of Credit
        	
          41
        
	

        	
          3.2
        	
          Conditions Subsequent to the Initial Extension of Credit
        	
          43
        
	

        	
          3.3
        	
          Conditions Precedent to all Extensions of Credit
        	
          44
        
	

        	
          3.4
        	
          Term
        	
          44
        
	

        	
          3.5
        	
          Effect of Termination
        	
          45
        
	

        	
          3.6
        	
          Early Termination by Borrower
        	
          45
        
	

        	

        	

        	
           
        
	
          
            4.
          

        	
          
            CREATION OF SECURITY INTEREST
          

        	
          46
        
	

        	

        	

        	
           
        
	

        	
          4.1
        	
          Grant of Security Interest
        	
          46
        
	

        	
          4.2
        	
          Negotiable Collateral
        	
          46
        
	

        	
          4.3
        	
          Collection of Accounts, General Intangibles, and Negotiable
          Collateral
        	
          46
        
	

        	
          4.4
        	
          Filing of Financing Statements; Commercial Tort Claims; Delivery of
          Additional Documentation Required
        	
          47
        
	

        	
          4.5
        	
          Power of Attorney
        	
          48
        
	

        	
          4.6
        	
          Right to Inspect and Verify
        	
          48
        
	

        	
          4.7
        	
          Control Agreements
        	
          49
        
	

        	
          4.8
        	
          Servicing of Notes Receivable
        	
          49
        
	

        	
          4.9
        	
          Release of Notes Receivable
        	
          49
        
	

        	

        	
          
             
          

        	

        
	
          
            5.
          

        	
          
            REPRESENTATIONS AND WARRANTIES
          

        	
          50
        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
    	
          
            TABLE OF CONTENTS
          

        
	
          
             
          

        	
          
             
          

        	
          
             
          

        
	

        	
          
            5.1
          

        	
          
            No Encumbrances
          

        	
          
            50
          

        
	

        	
          5.2
        	
          Eligible Notes Receivables
        	
          50
        
	

        	
          5.3
        	
          Equipment
        	
          50
        
	

        	
          5.4
        	
          Location of Collateral
        	
          50
        
	

        	
          5.5
        	
          Records
        	
          50
        
	

        	
          5.6
        	
          State of Incorporation; Location of Chief Executive Office;
          Organizational Identification Number; Commercial Tort Claims
        	
          51
        
	

        	
          5.7
        	
          Due Organization and Qualification; Subsidiaries
        	
          51
        
	

        	
          5.8
        	
          Due Authorization; No Conflict
        	
          51
        
	

        	
          5.9
        	
          Litigation
        	
          52
        
	

        	
          5.10
        	
          No Material Adverse Change
        	
          52
        
	

        	
          5.11
        	
          Fraudulent Transfer
        	
          52
        
	

        	
          5.12
        	
          Employee Benefits
        	
          53
        
	

        	
          5.13
        	
          Environmental Condition
        	
          53
        
	

        	
          5.14
        	
          Brokerage Fees
        	
          53
        
	

        	
          5.15
        	
          Intellectual Property
        	
          53
        
	

        	
          5.16
        	
          Leases
        	
          53
        
	

        	
          5.17
        	
          Deposit Accounts and Securities Accounts
        	
          53
        
	

        	
          5.18
        	
          Complete Disclosure
        	
          54
        
	

        	
          5.19
        	
          Indebtedness
        	
          54
        
	

        	
          5.20
        	
          Compliance
        	
          54
        
	

        	
          5.21
        	
          Servicing
        	
          54
        
	

        	
          5.22
        	
          Permits, Licenses, Etc.
        	
          54
        
	

        	
          5.23
        	
          Margin Stock
        	
          55
        
	

        	
          5.24
        	
          Holding Company and Investment Company Acts
        	
          55
        
	

        	

        	

        	
           
        
	
          
            6.
          

        	
          
            AFFIRMATIVE COVENANTS
          

        	
          55
        
	

        	

        	

        	
           
        
	

        	
          6.1
        	
          Accounting System
        	
          55
        
	

        	
          6.2
        	
          Collateral Reporting
        	
          55
        
	

        	
          6.3
        	
          Financial Statements, Reports, Certificates
        	
          56
        
	

        	
          6.4
        	
          Notices Regarding Collections Servicing Staff
        	
          59
        
	

        	
          6.5
        	
          Collection of Notes Receivable
        	
          59
        
	

        	
          6.6
        	
          Maintenance of Properties
        	
          59
        
	

        	
          6.7
        	
          Taxes
        	
          60
        
	

        	
          6.8
        	
          Insurance
        	
          60
        
	

        	
          6.9
        	
          Location of Collateral
        	
          61
        
	

        	
          6.10
        	
          Compliance with Laws
        	
          61
        
	

        	
          6.11
        	
          Leases
        	
          61
        
	

        	
          6.12
        	
          Existence
        	
          61
        
	

        	
          6.13
        	
          Environmental
        	
          62
        
	

        	
          6.14
        	
          Disclosure Updates
        	
          62
        
	

        	
          6.15
        	
          Formation of Subsidiaries
        	
          62
        
	

        	
          6.16
        	
          Required Asset Documents
        	
          63
        
	

        	
          6.17
        	
          Sale and Servicing Agreement
        	
          63
        
	

        	
          6.18
        	
          Escrow Deposits
        	
          63
        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
    	
          
            TABLE OF CONTENTS
          

        
	

        	

        	

        	
           
        
	

        	
          6.19
        	
          Minimum Funding of Advances
        	
          63
        
	

        	

        	

        	
           
        
	
          
            7.
          

        	
          
            NEGATIVE COVENANTS
          

        	
          63
        
	

        	

        	

        	
           
        
	

        	
          7.1
        	
          Indebtedness
        	
          63
        
	

        	
          7.2
        	
          Liens
        	
          64
        
	

        	
          7.3
        	
          Restrictions on Fundamental Changes
        	
          64
        
	

        	
          7.4
        	
          Disposal of Assets
        	
          64
        
	

        	
          7.5
        	
          Change Name
        	
          64
        
	

        	
          7.6
        	
          Nature of Business
        	
          64
        
	

        	
          7.7
        	
          Prepayments and Amendments
        	
          65
        
	

        	
          7.8
        	
          Change of Control
        	
          65
        
	

        	
          7.9
        	
          Required Procedures
        	
          65
        
	

        	
          7.10
        	
          Restricted Payments
        	
          65
        
	

        	
          7.11
        	
          Accounting Methods
        	
          65
        
	

        	
          7.12
        	
          Investments
        	
          66
        
	

        	
          7.13
        	
          Transactions with Affiliates
        	
          66
        
	

        	
          7.14
        	
          Use of Proceeds
        	
          66
        
	

        	
          7.15
        	
          Collateral with Bailees
        	
          66
        
	

        	
          7.16
        	
          Financial Covenants
        	
          66
        
	

        	
          7.17
        	
          Certain Borrower and HTGC Portfolio Covenants
        	
          67
        
	

        	
          7.18
        	
          Sale and Servicing Agreement.
        	
          68
        
	

        	

        	

        	
           
        
	
          
            8.
          

        	
          
            EVENTS OF DEFAULT
          

        	
          68
        
	

        	

        	

        	
           
        
	
          
            9.
          

        	
          
            THE LENDER GROUP’S RIGHTS AND REMEDIES
          

        	
          71
        
	

        	

        	

        	
           
        
	

        	
          9.1
        	
          Rights and Remedies
        	
          71
        
	

        	
          9.2
        	
          Remedies Cumulative
        	
          73
        
	

        	

        	

        	
           
        
	
          
            10.
          

        	
          
            TAXES AND EXPENSES
          

        	
          73
        
	

        	

        	

        	
           
        
	
          
            11.
          

        	
          
            WAIVERS; INDEMNIFICATION
          

        	
          74
        
	

        	

        	

        	
           
        
	

        	
          11.1
        	
          Demand; Protest; etc
        	
          74
        
	

        	
          11.2
        	
          The Lender Group’s Liability for Borrower Collateral
        	
          74
        
	

        	
          11.3
        	
          Indemnification
        	
          74
        
	

        	

        	

        	
           
        
	
          
            12.
          

        	
          
            NOTICES
          

        	
          75
        
	

        	

        	

        	
           
        
	
          
            13.
          

        	
          
            CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER
          

        	
          76
        
	

        	

        	

        	
           
        
	
          
            14.
          

        	
          
            ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS
          

        	
          77
        
	

        	

        	

        	
           
        
	

        	
          14.1
        	
          Assignments and Participations
        	
          77
        
	

        	
          14.2
        	
          Successors
        	
          79
        

    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
    	
          
            TABLE OF CONTENTS
          

        
	

        	

        	
           
        
	
          
            15.
          

        	
          
            AMENDMENTS; WAIVERS
          

        	
          79
        
	

        	

        	

        	
           
        
	

        	
          15.1
        	
          Amendments and Waivers
        	
          79
        
	

        	
          15.2
        	
          Replacement of Holdout Lender
        	
          80
        
	

        	
          15.3
        	
          No Waivers; Cumulative Remedies
        	
          81
        
	

        	

        	

        	
           
        
	
          
            16.
          

        	
          
            AGENT; THE LENDER GROUP
          

        	
          81
        
	

        	

        	

        	
           
        
	

        	
          16.1
        	
          Appointment and Authorization of Agent
        	
          81
        
	

        	
          16.2
        	
          Delegation of Duties
        	
          82
        
	

        	
          16.3
        	
          Liability of Agent
        	
          82
        
	

        	
          16.4
        	
          Reliance by Agent
        	
          82
        
	

        	
          16.5
        	
          Notice of Default or Event of Default
        	
          83
        
	

        	
          16.6
        	
          Credit Decision
        	
          83
        
	

        	
          16.7
        	
          Costs and Expenses; Indemnification
        	
          84
        
	

        	
          16.8
        	
          Agent in Individual Capacity
        	
          84
        
	

        	
          16.9
        	
          Successor Agent
        	
          84
        
	

        	
          16.10
        	
          Lender in Individual Capacity
        	
          85
        
	

        	
          16.11
        	
          Withholding Taxes
        	
          85
        
	

        	
          16.12
        	
          Collateral Matters
        	
          87
        
	

        	
          16.13
        	
          Restrictions on Actions by Lenders; Sharing of Payments
        	
          88
        
	

        	
          16.14
        	
          Agency for Perfection
        	
          89
        
	

        	
          16.15
        	
          Payments by Agent to the Lenders
        	
          89
        
	

        	
          16.16
        	
          Concerning the Collateral and Related Loan Documents
        	
          89
        
	

        	
          16.17
        	
          Field Audits and Examination Reports; Confidentiality; Disclaimers
          by Lenders; Other Reports and Information
        	
          89
        
	

        	
          16.18
        	
          Several Obligations; No Liability
        	
          90
        
	

        	
          16.19
        	
          Bank Product Providers
        	
          90
        
	

        	

        	

        	
           
        
	
          
            17.
          

        	
          
            GENERAL PROVISIONS
          

        	
          91
        
	

        	

        	

        	
           
        
	

        	
          17.1
        	
          Effectiveness
        	
          91
        
	

        	
          17.2
        	
          Section Headings
        	
          91
        
	

        	
          17.3
        	
          Interpretation
        	
          91
        
	

        	
          17.4
        	
          Severability of Provisions
        	
          91
        
	

        	
          17.5
        	
          Counterparts; Electronic Execution
        	
          91
        
	

        	
          17.6
        	
          Revival and Reinstatement of Obligations
        	
          91
        
	

        	
          17.7
        	
          Confidentiality.
        	
          91
        
	

        	
          17.8
        	
          Lender Group Expenses
        	
          92
        
	

        	
          17.9
        	
          USA Patriot Act
        	
          92
        
	

        	
          17.10
        	
          Integration
        	
          92
        

    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      EXHIBITS AND SCHEDULES
    

    
    	
          Exhibit A-1
        	
           
        	
          Form of Assignment and Acceptance
        
	
          Exhibit B-1
        	

        	
          Form of Borrowing Base Certificate
        
	
          Exhibit C-1
        	

        	
          Form of Compliance Certificate
        
	
          Exhibit L-1
        	

        	
          Form of LIBOR Notice
        
	

        	

        	
           
        
	
          Schedule C-1
        	

        	
          Commitments
        
	
          Schedule P-1
        	

        	
          Permitted Liens
        
	
          Schedule R-1
        	

        	
          Required Asset Documents
        
	
          Schedule 2.6(a)
        	

        	
          Cash Management Banks
        
	
          Schedule 5.4
        	

        	
          Locations of Collateral
        
	
          Schedule 5.6(a)
        	

        	
          Jurisdictions of Organization
        
	
          Schedule 5.6(b)
        	

        	
          Chief Executive Offices
        
	
          Schedule 5.6(c)
        	

        	
          Organizational ID Numbers
        
	
          Schedule 5.6(d)
        	

        	
          Commercial Tort Claims
        
	
          Schedule 5.7(b)
        	

        	
          Capitalization of Borrower and HTGC
        
	
          Schedule 5.7(c)
        	

        	
          Capitalization of Borrower’s and HTGC’s Subsidiaries
        
	
          Schedule 5.9
        	

        	
          Litigation
        
	
          Schedule 5.13
        	

        	
          Environmental Matters
        
	
          Schedule 5.15
        	

        	
          Intellectual Property
        
	
          Schedule 5.17
        	

        	
          Deposit Accounts and Securities Accounts
        
	
          Schedule 5.19
        	

        	
          Permitted Indebtedness
        
	
          Schedule 5.23
        	

        	
          Licenses, Franchises, Consents and Approvals
        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      LOAN AND SECURITY AGREEMENT
    

    

    

    
      THIS LOAN AND SECURITY AGREEMENT (this “Agreement”),
      is entered into as of August 25, 2008, between and among, on the one
      hand, the lenders identified on the signature pages hereof (such
      lenders, together with their respective successors and assigns, are
      referred to hereinafter each individually as a “Lender” and
      collectively as the “Lenders”), WELLS FARGO FOOTHILL,
      LLC, a Delaware limited liability company, as the arranger and
      administrative agent for the Lenders (“Agent”), and, on the
      other hand, HERCULES FUNDING II LLC, a Delaware limited liability
      company (“Borrower”).
    

    
      The parties agree as follows:
    

    
      1.  DEFINITIONS AND CONSTRUCTION.
    

    
         1.1  Definitions.  As
      used in this Agreement, the following terms shall have the following
      definitions:
    

    
      “Account” means an account (as that term is defined in the
      Code).
    

    
      “Account Debtor” means any Person who is obligated under,
      with respect to, or on account of, an Account, chattel paper or a
      General Intangible, or is a debtor under, or a maker of, a Note
      Receivable.
    

    
      “ACH Transactions” means any cash management or related
      services (including the Automated Clearing House processing of
      electronic funds transfers through the direct Federal Reserve Fedline
      system) provided by a Bank Product Provider for the account of Borrower
      or its Subsidiaries.
    

    
      “Additional Documents” has the meaning set forth in Section
      4.4(c).
    

    
      “Advances” has the meaning set forth in Section
      2.1(a).
    

    
      “Affiliate” means, as applied to any Person, any other
      Person who, directly or indirectly through one or more intermediaries,
      controls, is controlled by, or is under common control with, such
      Person.  For purposes of this definition, “control” means the
      possession, directly or indirectly through one or more intermediaries,
      of the power to direct the management and policies of a Person, whether
      through the ownership of Stock, by contract, or otherwise; provided,
      however, that, in any event: (a) any Person which owns directly
      or indirectly 10% or more of the Stock having ordinary voting power for
      the election of directors or other members of the governing body of a
      Person or 10% or more of the partnership, membership or other ownership
      interests of a Person (other than as a limited partner of such Person)
      shall be deemed to control such Person, (b) each director (or comparable
      manager) of a Person shall be deemed to be an Affiliate of such Person,
      and (c) each partnership or joint venture in which a Person is a partner
      or joint venturer shall be deemed to be an Affiliate of such Person.
    

    
      “Agent” means WFF, solely in its capacity as agent for the
      Lenders hereunder, and any successor thereto.
    

    
      -1-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Agent Advances” has the meaning set forth in Section
      2.2(e)(i).
    

    
      “Agent-Related Persons” means Agent together with its
      Affiliates, officers, directors, employees, and agents.
    

    
      “Agent’s Account” means an account at a bank
      designated by Agent from time to time as the account into which Borrower
      shall make all payments to Agent for the benefit of the Lender Group and
      into which the Lender Group shall make all payments to Agent under this
      Agreement and the other Loan Documents; unless and until Agent notifies
      Borrower and the Lender Group to the contrary, Agent’s Account shall be
      that certain deposit account bearing account number 4121345110 and
      maintained by Agent with Wells Fargo Bank, N.A., San Francisco, CA, ABA
      No. 121000248.
    

    
      “Agent’s Liens” means the Liens granted by Borrower
      and its Subsidiaries to Agent for the benefit of the Lender Group under
      this Agreement or the other Loan Documents.
    

    
      “Agreement” has the meaning set forth in the preamble
      hereto.
    

    
      “Assignee” has the meaning set forth in Section
      14.1(a).
    

    
      “Assignment and Acceptance” means an Assignment and
      Acceptance substantially in the form of Exhibit A-1.
    

    
      “Authorized Person” means any of Manuel Henriquez, David
      Lund, Jessica Tong Baron, Scott Harvey, or any other individual then
      serving as the Chief Executive Officer, Chief Financial Officer,
      Corporate Controller, or Chief Legal Officer of Borrower or HTGC, as
      applicable; provided, that for purposes of this Agreement, no
      individual who is an Authorized Person shall cease to be an Authorized
      Person, and no individual who is not then an Authorized Person shall
      become an Authorized Person, unless and until Agent has received written
      notice of such change from Borrower or HTGC, as applicable, and in the
      case of an individual becoming an Authorized Person such individual has
      been approved by Agent in its Permitted Discretion.
    

    
      “Availability” means, as of any date of determination, the
      amount that Borrower is entitled to borrow as Advances under Section
      2.1 (after giving effect to all then outstanding Obligations (other
      than Bank Product Obligations) and all sublimits and reserves then
      applicable hereunder).
    

    
      “Backup Servicer” means Lyon Financial Services, Inc.,
      doing business as U.S. Bank Portfolio Services, as Backup Servicer to
      assume the functions of servicing the Notes Receivable pursuant to the
      Sale and Servicing Agreement, or any replacement for such Person
      acceptable to both Borrower and Agent or otherwise appointed pursuant to
      the terms of the Sale and Servicing Agreement.
    

    
      “Backup Servicer Fees” means the “Backup Servicer Fee”
      payable to Backup Servicer in accordance with the Sale and Servicing
      Agreement.
    

    
      “Bank Product” means any financial accommodation extended
      to Borrower or its Subsidiaries by a Bank Product Provider (other than
      pursuant to this Agreement) including:  (a) credit cards, (b) credit
      card processing services, (c) debit cards, (d) purchase cards, (e) ACH
      Transactions, (f) cash management, including controlled disbursement,
      accounts or services, or (g) transactions under Hedging Agreements.
    

    
      -2-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Bank Product Agreements” means those agreements entered
      into from time to time by Borrower or its Subsidiaries with a Bank
      Product Provider in connection with the obtaining of any of the Bank
      Products.
    

    
      “Bank Product Obligations” means all obligations,
      liabilities, contingent reimbursement obligations, fees, and expenses
      owing by Borrower or its Subsidiaries to any Bank Product Provider
      pursuant to or evidenced by the Bank Product Agreements and irrespective
      of whether for the payment of money, whether direct or indirect,
      absolute or contingent, due or to become due, now existing or hereafter
      arising, and including all such amounts that Borrower or its
      Subsidiaries are obligated to reimburse to Agent or any member of the
      Lender Group as a result of Agent or such member of the Lender Group
      purchasing participations from, or executing indemnities or
      reimbursement obligations to, a Bank Product Provider with respect to
      the Bank Products provided by such Bank Product Provider.
    

    
      “Bank Product Provider” means Wells Fargo or any of its
      Affiliates.
    

    
      “Bank Product Reserve” means, as of any date of
      determination, the amount of reserves that Agent has established (based
      upon the Bank Product Providers’ reasonable determination of the credit
      exposure of Borrower and its Subsidiaries in respect of then extant Bank
      Products) in respect of Bank Products then provided or outstanding; provided,
      however, that such amount shall at no time exceed the lesser of
      (a) five percent (5%) of the Maximum Revolver Amount at such time, or
      (b) $15,000,000.
    

    
      “Bankruptcy Code” means title 11 of the United States Code,
      as in effect from time to time.
    

    
      “Base LIBOR Rate” means the rate per annum, determined by
      Agent in accordance with its customary procedures, and utilizing such
      electronic or other quotation sources as it considers appropriate
      (rounded upwards, if necessary, to the next 1/16%), to be the rate at
      which Dollar deposits (for delivery on the first day of an Interest
      Period) in the amount of $1,000,000 are offered to major banks in the
      London interbank market on or about 1:00 p.m. (New York time) two (2)
      Business Days prior to the commencement of such Interest Period, for a
      term comparable to such Interest Period, which determination shall be
      conclusive in the absence of manifest error.
    

    
      “Base Rate” means the rate of interest announced, from time
      to time, within Wells Fargo at its principal office in San Francisco as
      its “prime rate,” with the understanding that the “prime rate” is one of
      Wells Fargo’s base rates (not necessarily the lowest of such rates) and
      serves as the basis upon which effective rates of interest are
      calculated for those loans making reference thereto and is evidenced by
      the recording thereof after its announcement in such internal
      publications as Wells Fargo may designate.
    

    
      “Base Rate Loan” means each portion of an Advance that
      bears interest at a rate determined by reference to the Base Rate.
    

    
      -3-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Base Rate Margin” means two percent (2.00%).
    

    
      “Benefit Plan” means a “defined benefit plan” (as defined
      in Section 3(35) of ERISA) for which Borrower or any Subsidiary or ERISA
      Affiliate of Borrower has been an “employer” (as defined in Section 3(5)
      of ERISA) within the past six years.
    

    
      “Board of Directors” means the board of directors (or
      comparable managers or managing members) of a Person or any committee
      thereof duly authorized to act on behalf of the board of directors (or
      comparable managers or managing members).
    

    
      “Books” means all of Borrower’s and its Subsidiaries’ now
      owned or hereafter acquired books and records (including all of their
      Records indicating, summarizing, or evidencing their assets (including
      the Collateral) or liabilities, all of Borrower’s and its Subsidiaries’
      Records relating to their business operations or financial condition,
      and all of their goods or General Intangibles related to such
      information).
    

    
      “Borrower” has the meaning set forth in the preamble to
      this Agreement.
    

    
      “Borrower Collateral” means all of Borrower’s now owned or
      hereafter acquired right, title, and interest in and to all property,
      including, without limitation, each of the following:
    

    
      (a)       all of its Accounts,
    

    
      (b)       all of its Books,
    

    
      (c)       all of its commercial tort claims,
    

    
      (d)       all of its Deposit Accounts,
    

    
      (e)       all of its Equipment,
    

    
      (f)       all of its General Intangibles,
    

    
      (g)       all of its Inventory,
    

    
      (h)       all of its Investment Property (including all of its
      securities and Securities Accounts),
    

    
      (i)       all of its Negotiable Collateral, including all of its Notes
      Receivable,
    

    
      (j)       all of its Supporting Obligations,
    

    
      (k)       money or other assets of Borrower that now or hereafter come
      into the possession, custody, or control of Agent or any Lender, and
    

    
      (l)       the proceeds and products, whether tangible or intangible, of
      any of the foregoing, including proceeds of insurance covering any or
      all of the foregoing, and any and all Accounts, Books, Deposit Accounts,
      Equipment, General Intangibles, Inventory, Investment Property,
      Negotiable Collateral, Real Property, Supporting Obligations, money, or
      other tangible or intangible property resulting from the sale, exchange,
      collection, or other disposition of any of the foregoing, or any portion
      thereof or interest therein, and the proceeds thereof.
    

    
      -4-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Borrower’s Required Procedures” means the “Credit
      and Collection Policy” as defined in the Sale and Servicing Agreement,
      specifically including underwriting, valuation, auditing and
      documentation guidelines, standard documentation, and portfolio
      management policies and procedures, in the form delivered to Agent and
      approved by Agent on or prior to the Closing Date, as amended from time
      to time in accordance with the Sale and Servicing Agreement.
    

    
      “Borrowing” means a borrowing hereunder consisting of
      Advances made on the same day by the Lenders (or Agent on behalf
      thereof), or by Swing Lender in the case of a Swing Loan, or by Agent in
      the case of an Agent Advance.
    

    
      “Borrowing Base” means, as of any date of determination,
      the sum of:
    

    
      (a)       fifty percent (50%) of the Net Eligible Notes Receivables, minus
    

    
      (b)       the sum of (i) the Bank Product Reserve, and (ii) the
      aggregate amount of reserves, if any, established by Lender under  Section
      2.1(b).
    

    
      “Borrowing Base Certificate” means a certificate in the
      form of Exhibit B-1.
    

    
      “Business Day” means any day that is not a Saturday,
      Sunday, or other day on which banks are authorized or required to close
      in the State of New York, the State of California, the State of Texas,
      or the State of Minnesota, except that if a determination of a Business
      Day shall relate to a LIBOR Rate Loan, the term “Business Day” also
      shall exclude any day on which banks are closed for dealings in Dollar
      deposits in the London interbank market.
    

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

    
      “Capitalized Lease Obligation” means that portion of the
      obligations under a Capital Lease that is required to be capitalized in
      accordance with GAAP.
    

    
      “Cash Equivalents” means (a) marketable direct obligations
      issued or unconditionally guaranteed by the United States or issued by
      any agency thereof and backed by the full faith and credit of the United
      States, in each case maturing within 1 year from the date of acquisition
      thereof, (b) marketable direct obligations issued by any state of the
      United States or any political subdivision of any such state or any
      public instrumentality thereof maturing within 1 year from the date of
      acquisition thereof and, at the time of acquisition, having one of the
      two highest ratings obtainable from either Standard & Poor’s Rating
      Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”),
      (c) commercial paper maturing no more than 270 days from the date of
      creation thereof and, at the time of acquisition, having a rating of at
      least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of
      deposit or bankers’ acceptances maturing within 1 year from the date of
      acquisition thereof issued by any bank organized under the laws of the
      United States or any state thereof having at the date of acquisition
      thereof combined capital and surplus of not less than $250,000,000, (e)
      demand Deposit Accounts maintained with any bank organized under the
      laws of the United States or any state thereof so long as the amount
      maintained with any individual bank is less than or equal to $100,000
      and is insured by the Federal Deposit Insurance Corporation, and (f)
      Investments in money market funds or mutual funds substantially all of
      whose assets are invested in the types of assets described in clauses
      (a) through (e) above.
    

    
      -5-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Cash Management Account” has the meaning set forth in Section
      2.6(a).
    

    
      “Cash Management Agreements” means those certain cash
      management service agreements, in form and substance satisfactory to
      Agent, each of which is among Borrower or one of its Subsidiaries,
      Agent, and one of the Cash Management Banks.
    

    
      “Cash Management Bank” has the meaning set forth in Section
      2.6(a).
    

    
      “Change of Control” means any of the following: (a) HTGC
      ceases to directly own and control 100% of the outstanding capital Stock
      of Borrower; (b) Borrower ceases to directly own and control 100% of the
      outstanding capital Stock of each of its Subsidiaries; (c) HTGC or
      parties designated or appointed by HTGC cease to be the only Manager(s)
      of Borrower; (d) any person or group of persons (within the meaning of
      the Securities  Exchange Act of 1934) shall have acquired beneficial
      ownership (within the meaning of Rule 13d-3 promulgated by the
      Securities and Exchange Commission under the Securities Exchange Act of
      1934) of twenty percent (20%) or more of the issued and outstanding
      shares of capital Stock of HTGC having the right to vote for the
      election of directors of HTGC under ordinary circumstances; or
      (e) during any period of twelve consecutive calendar months, individuals
      who at the beginning of such period constituted the board of directors
      of HTGC (together with any new directors whose election by the board of
      directors of HTGC or whose nomination for election by the Stockholders
      of HTGC was approved by a vote of at least two-thirds of the directors
      then still in office who either were directors at the beginning of such
      period or whose election or nomination for election was previously so
      approved) cease for any reason other than death or disability to
      constitute a majority of the directors then in office.
    

    
      “Closing Certificates” means certificates from an
      Authorized Person of Borrower and an Authorized Person of HTGC, in each
      case (i) attesting to the resolutions of such Person’s Board of
      Directors authorizing its execution, delivery, and performance of this
      Agreement and the other Loan Documents to which such Person is a party,
      (ii) authorizing specific officers of such Person to execute the same,
      (iii) attesting to the incumbency and signatures of such specific
      officers of such Person, and (iv) addressing such other factual matters
      in connection with the Agreement and the other Loan Documents as may
      reasonably be required by Agent.
    

    
      “Closing Date” means the date of this Agreement.
    

    
      “Closing Date Business Plan” means the set of Projections
      of Borrower for the period from the Closing Date through December 31,
      2009, on a month-by-month basis, in form and substance (including as to
      scope and underlying assumptions) satisfactory to Agent.
    

    
      “Code” means the New York Uniform Commercial Code, as in
      effect from time to time; provided, however, that in the
      event that, by reason of mandatory provisions of law, any or all of the
      attachment, perfection, priority, or remedies with respect to Agent’s
      Lien on any Collateral is governed by the Uniform Commercial Code as
      enacted and in effect in a jurisdiction other than the State of New
      York, the term “Code” shall mean the Uniform Commercial Code as enacted
      and in effect in such other jurisdiction solely for purposes of the
      provisions thereof relating to such attachment, perfection, priority, or
      remedies.
    

    
      -6-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Collateral” means the Borrower Collateral and all other
      assets and interests in assets and proceeds thereof now owned or
      hereafter acquired by Borrower or its Subsidiaries in or upon which a
      Lien is granted under any of the Loan Documents.
    

    
      “Collateral Access Agreement” means a landlord waiver,
      bailee letter, or acknowledgement agreement of any lessor, warehouseman,
      processor, consignee, or other Person in possession of, having a Lien
      upon, or having rights or interests in any Collateral, in each case, in
      form and substance satisfactory to Agent.
    

    
      “Collateral Custodian” means a Person acceptable to both
      Borrower and Agent that is appointed pursuant to a Collateral Custodian
      Agreement acceptable to such Person, Borrower and Agent to hold the
      original Notes Receivable and certain other documents to be delivered
      under this Agreement or the Sale and Servicing Agreement for Agent’s
      benefit.  As of the Closing Date, there is no Collateral Custodian, and
      the original Notes Receivable and certain other documents required to be
      delivered under this Agreement or the Sale and Servicing Agreement will
      be delivered directly to and held by Agent.
    

    
      “Collateral Custodian Agreement” means a written agreement
      pursuant to which Borrower and Agent appoint a Collateral Custodian with
      respect to this Agreement and the Sale and Servicing Agreement and
      specify the duties and compensation of such Collateral Custodian.
    

    
      “Collateral Custodian Fees” means any fees payable to a
      Collateral Custodian in accordance with its Collateral Custodian
      Agreement.
    

    
      “Collections” means all cash, checks, notes,
      instruments, and other items of payment (including insurance proceeds,
      proceeds of cash sales, rental proceeds, and tax refunds) of Borrower.
    

    
      “Commercial Tort Claim Assignment” has the meaning set
      forth in Section 4.4(b).
    

    
      “Commitment” means, with respect to each Lender, the
      aggregate commitment of such Lender to make Advances and, with respect
      to all Lenders, the aggregate commitments of all Lenders to make
      Advances, in each case as such Dollar amounts are set forth beside such
      Lender’s name under the applicable heading on Schedule C-1
      or on the signature page of the Assignment and Acceptance pursuant to
      which such Lender became a Lender hereunder in accordance with the
      provisions of Section 14.1.
    

    
      “Compliance Certificate”  means a certificate substantially
      in the form of Exhibit C-1 delivered by the chief financial
      officer of Borrower to Agent.
    

    
      “Control Agreement” means a control agreement, in form and
      substance satisfactory to Agent, executed and delivered by Borrower or
      one of its Subsidiaries, Agent, and the applicable securities
      intermediary (with respect to a Securities Account) or bank (with
      respect to a Deposit Account).
    

    
      -7-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Daily Balance” means, with respect to each day during the
      term of this Agreement, the aggregate outstanding amount of all Advances
      or Obligations, as the context requires, at the end of such day.
    

    
      “Debt to Worth Ratio” means, with respect to any Person as
      of any date of determination, a ratio of (a) the sum of (i) the
      outstanding amount of all Indebtedness of such Person as of such date, minus
      (ii) the outstanding amount of the Subordinated Debt of such Person as
      of such date, to (b) the sum of (i) Tangible Net Worth of such Person as
      of such date, plus (ii) the outstanding amount of the
      Subordinated Debt of such Person as of such date.
    

    
      “Default” means an event or condition that, but for the
      giving of notice or the passage of time, or both, would constitute an
      Event of Default.
    

    
      “Defaulted Note Receivable” means any Note Receivable with
      respect to which (a) any payment thereunder remains outstanding and
      unpaid, in whole or in part, for more than ninety (90) days past
      the date it became due and payable according to the original face and
      tenor of such Note Receivable or as extended in accordance with
      Borrower’s Required Procedures, (b) with respect to which foreclosure
      proceedings have been initiated against any property securing such Note
      Receivable, or (c) that Borrower or Agent in its Permitted Discretion
      deems to be non-collectible.
    

    
      “Defaulting Lender” means any Lender that fails to make any
      Advance (or other extension of credit) that it is required to make
      hereunder on the date that it is required to do so hereunder.
    

    
      “Defaulting Lender Rate” means (a) for the first three (3)
      days from and after the date the relevant payment is due, the Base Rate,
      and (b) thereafter, the interest rate then applicable to Advances that
      are Base Rate Loans (inclusive of the Base Rate Margin applicable
      thereto).
    

    
      “Delinquent Note Receivable” means any Note Receivable with
      respect to which any payment thereunder remains outstanding and unpaid,
      in whole or in part, for more than sixty (60) days past the date it
      became due and payable according to the original face and tenor of such
      Note Receivable or as extended in accordance with Borrower’s Required
      Procedures.  
    

    
      “Deposit Account” means any deposit account (as that term
      is defined in the Code).
    

    
      “Designated Account” means account number 4121766364 of
      Borrower maintained with Borrower’s Designated Account Bank, or such
      other deposit account of Borrower (located within the United States)
      that has been designated as such, in writing, by Borrower to Agent.
    

    
      “Designated Account Bank” means Wells Fargo.
    

    
      “Disbursement Letter” means an instructional letter
      executed and delivered by Borrower to Agent regarding the extensions of
      credit to be made on the Closing Date, the form and substance of which
      is satisfactory to Agent.
    

    
      “Dollars” or “$” means United States
      dollars.
    

    
      -8-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “EBITDA” means, with respect to any Person for any fiscal
      period, such Person’s consolidated net earnings (or loss), minus
      to the extent included in determining net earnings, extraordinary gains, minus
      to the extent included in determining net earnings, interest income, plus
      interest expense, plus income taxes, plus depreciation and
      amortization, in each case as determined for such period and in each
      case not otherwise defined herein as determined in accordance with GAAP.
    

    
      “Eligible Notes Receivable” means those Notes Receivable
      that comply with each of the representations and warranties respecting
      Eligible Notes Receivable made in the Loan Documents, and that are not
      excluded as ineligible by virtue of one or more of the excluding
      criteria set forth below; provided, however, that such
      criteria may be modified from time to time by Agent in Agent’s Permitted
      Discretion; provided further, that so long as no Default
      or Event of Default has occurred and is continuing, Agent shall first
      notify and attempt to discuss with Borrower any such modification that
      Agent proposes to make to such criteria unless Agent, in its Permitted
      Discretion, believes that exigent circumstances justify the immediate
      modification of such criteria.  Eligible Notes Receivable shall not
      include a Note Receivable (unless specifically determined to be an
      Eligible Note Receivable by Agent following a review thereof on a
      case-by-case basis) if:
    

    
      (a)       such Note Receivable does not evidence a commercial loan made
      to an Account Debtor in which venture capital firms, private equity
      groups or other institutional investors have an aggregate equity
      ownership of at least fifteen percent (15%) on a fully-diluted basis;
    

    
      (b)       such Note Receivable does not represent a valid and binding
      obligation enforceable in accordance with its terms for the amount
      outstanding thereof without defense (whether actual or alleged);
    

    
      (c)       such Note Receivable (i) is not approved, documented, managed
      and otherwise in conformance with Borrower’s Required Procedures in
      effect upon Borrower’s acquisition thereof, or (ii) is not evidenced by
      HTGC’s standard loan documents for loans to be sold to Borrower and
      financed under this Agreement, or other documentation acceptable to
      Agent;
    

    
      (d)       such Note Receivable (i) has been modified or had its maturity
      extended in a manner that is not in compliance with Borrower’s Required
      Procedures, or (ii) has had its maturity extended or otherwise been
      modified in accordance with Borrower’s Required Procedures, and the
      aggregate outstanding principal amount of all Eligible Notes Receivable
      which have had their maturity extended or have otherwise been modified
      exceeds ten percent (10%) of the aggregate outstanding principal amount
      of all Eligible Notes Receivable at such time; provided, that
      only the amount in excess of such limit shall be considered ineligible;
    

    
      (e)       such Note Receivable has an outstanding principal amount that
      exceeds the greater of (i) ten percent (10%) of the aggregate
      outstanding principal amount of all Eligible Notes Receivable at such
      time, or (ii) $15,000,000; provided, that only the amount in
      excess of such limit shall be considered ineligible and such limit may
      be waived by Agent on a case by case basis in its sole discretion;
    

    
      (f)       such Note Receivable causes the aggregate outstanding
      principal amount of all Eligible Notes Receivable owed by Account
      Debtors who have received equity investments from the same venture
      capital firm as the lead investor, to exceed twenty-five percent (25%)
      of the aggregate outstanding principal amount of all Eligible Notes
      Receivable at such time; provided, that in each case only the
      amount in excess of such limit shall be considered ineligible;
    

    
      -9-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (g)       such Note Receivable causes the aggregate outstanding
      principal amount of all Eligible Notes Receivable owed by Account
      Debtors whose business activities fall within a single industry, as
      defined by the Standard Industrial Classification/NAIC classification
      (six-digit NAIC codes) then in effect, to exceed thirty-five percent
      (35%) of the aggregate outstanding principal amount of all Eligible
      Notes Receivable at such time; provided, that in each case only
      the amount in excess of such limit shall be considered ineligible;
    

    
      (h)       such Note Receivable causes the aggregate outstanding
      principal amount of all Eligible Notes Receivable owed by Account
      Debtors that are rated Investment Grade 3 in accordance with Borrower’s
      Required Procedures then in effect, to exceed thirty percent (30%) of
      the aggregate outstanding principal amount of all Eligible Notes
      Receivable at such time; provided, that in each case only the
      amount in excess of such limit shall be considered ineligible;
    

    
      (i)       such Note Receivable is owed by an Account Debtor that is
      rated Investment Grade 4 or Investment Grade 5 in accordance with
      Borrower’s Required Procedures then in effect;
    

    
      (j)       such Note Receivable is owed by an Account Debtor that, based
      upon Borrower’s most-recent quarterly credit analysis and taking into
      account such Account Debtor’s anticipated positive or negative cash
      flow, does not have either (i) sufficient unrestricted cash on hand or
      committed availability under revolving lines of credit to allow such
      Account Debtor to service at least two (2) months of debt service under
      such Note Receivable or (ii) a signed commitment letter from a
      “qualified investor” to make an additional equity investment in such
      Account Debtor in an amount sufficient to allow such Account Debtor to
      service at least six (6) months of debt service under such Note
      Receivable (for purposes on this clause (j),
      “qualified investor” shall mean a venture capital firm on Borrower’s
      approved list, a private equity group, a strategic acquirer or other
      institutional investor acceptable to Agent in its Permitted Discretion;
    

    
      (k)       Borrower’s Liens to secure payment of such Note Receivable are
      not first priority Liens on substantially all property of the Account
      Debtor, except for such permitted Liens or exclusions as are consistent
      with Borrower’s Required Procedures; provided, that such
      Note Receivable shall not be ineligible solely by reason of this clause (k)
      by reason of the existence of a prior Lien secured solely by the
      Accounts (and proceeds thereof) owned by such Account Debtor’s to secure
      a revolving line of credit provided to the Account Debtor so long as
      (i) the maximum committed principal amount of such revolving line of
      credit does not exceed fifty percent (50%) of the maximum committed
      principal amount of Borrower’s loan to such Account Debtor, and (ii) the
      aggregate outstanding principal amount of all Eligible Notes Receivable
      with respect to which such a revolving line of credit exists shall not
      exceed ten percent (10%) of the aggregate outstanding principal amount
      of all Eligible Notes Receivable at such time (provided, that in
      the case of clause (ii), only the amount in excess of such limit
      shall be considered ineligible);
    

    
      (l)       such Note Receivable has a remaining term of more than sixty
      (60) months;
    

    
      (m)       such Note Receivable has a remaining term of more than
      forty-two (42) months, unless the Account Debtor maintains a trailing
      twelve-month EBITDA in excess of $2,000,000;
    

    
      (n)       such Note Receivable causes the aggregate outstanding
      principal amount of all Eligible Notes Receivable that have a remaining
      term of more than forty-two (42) months to exceed twenty-five (25%) of
      the aggregate outstanding principal amount of all Eligible Notes
      Receivable at such time; provided, that only the amount in excess
      of such limit shall be considered ineligible and such limit may be
      waived by Agent on a case by case basis in its sole discretion;
    

    
      -10-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (o)       the Account Debtor with respect to such Note Receivable is
      subject to an Insolvency Proceeding, is not Solvent, has gone out of
      business, or as to which Borrower has received notice of an imminent
      Insolvency Proceeding or a material impairment of the financial
      condition of such maker;
    

    
      (p)       the documentation associated with such Note Receivable does
      not require the Account Debtor to provide ongoing financial information
      to Borrower, including financial statements on not less than a quarterly
      basis, annual audited financial statements prepared by an independent
      third-party auditor, annual budgets and ongoing loan monitoring and
      covenant compliance certificates consistent with Borrower’s Required
      Procedures;
    

    
      (q)       such Note Receivable was originated by a lender other than
      HTGC or a bank, commercial finance company or other institutional lender
      approved by Agent in its Permitted Discretion;
    

    
      (r)       such Note Receivable causes the aggregate outstanding
      principal amount of all Eligible Notes Receivable originated by a lender
      other than HTGC to exceed twenty percent (20%) of the aggregate
      outstanding principal amount of all Eligible Notes Receivable at such
      time; provided, that in each case only the amount in excess of
      such limit shall be considered ineligible;
    

    
      (s)       such Note Receivable has not been originated in accordance
      with, or does not comply in all respects with, all applicable federal,
      state and local laws and regulations, including applicable usury and
      credit disclosure laws and regulations;
    

    
      (t)       such Note Receivable does not require current payments of the
      full amount of cash interest accruing on the full unpaid principal
      amount thereof on at least a quarterly basis; provided, that
      notwithstanding this clause (t), Notes Receivable that
      provide for payment-in-kind or accrual of a portion of such interest may
      be eligible so long as such payment-in-kind or accruing portion of such
      interest does not exceed twenty-five percent (25%) of the total interest
      then due;
    

    
      (u)       such Note Receivable (i) is a Delinquent Note Receivable or a
      Defaulted Note Receivable, or (ii) unless waived by Agent on a case by
      case basis in its sole discretion, has been at any time a Delinquent
      Note Receivable or a Defaulted Note Receivable;
    

    
      (v)       the Account Debtor with respect to such Note Receivable is in
      the nuclear waste, natural resource, utility, or fishing vessel industry;
    

    
      (w)       the proceeds of such Note Receivable were or are to be used
      for personal, family or household purposes;
    

    
      (x)       Borrower’s interest in such Note Receivable represents (i) its
      interest as one of the lenders in a multi-lender syndicate or other
      co-lending arrangement, unless such arrangement has been reviewed and
      approved by Agent on a case by case basis in its sole discretion, or
      (ii) is only a participating interest;
    

    
      (y)       the Account Debtor with respect to such Note Receivable is an
      Affiliate of Borrower or a shareholder or employee or agent of Borrower
      or a member, employee or agent of any Affiliate of Borrower, or a member
      of the family of any of the foregoing:
    

    
      (z)       such Note Receivable that is not payable in Dollars;
    

    
      (aa)      the Account Debtor with respect to such Note Receivable (i)
      does not maintain its chief executive office or principal residence in
      the United States, or (ii) is not organized under the laws of the United
      States or any state thereof, or (iii) is the government of any foreign
      country or sovereign state, or of any state, province, municipality, or
      other political subdivision thereof, or of any department, agency,
      public corporation, or other instrumentality thereof;
    

    
      -11-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (bb)      the Account Debtor with respect to such Note Receivable is
      either (i) the United States or any department, agency, or
      instrumentality of the United States, or (ii) any state of the United
      States;
    

    
      (cc)      the Account Debtor with respect to such Note Receivable is
      also a creditor of Borrower, or has made a refundable deposit (not held
      in a separate escrow account), or has or has asserted a right of setoff,
      or has disputed its obligation to pay all or any portion of the Note
      Receivable, to the extent of such deposit, claim, right of setoff, or
      dispute;
    

    
      (dd)      the Agent or the Collateral Custodian (if one has been
      appointed) is not then in possession of each of the Required Asset
      Documents;
    

    
      (ee)      Agent has not received a copy of HTGC’s investment memorandum
      with respect to the loan evidenced by such Note Receivable; or
    

    
      (ff)      such Note Receivable is not subject to a valid and perfected
      first-priority Lien of Agent.
    

    
      Notwithstanding the foregoing, Agent will have the right to underwrite
      any Note Receivable with an original principal balance in excess of
      $15,000,000 to determine, in Agent’s sole discretion, whether such Note
      Receivable shall be an Eligible Note Receivable.
    

    
      “Eligible Transferee” means (a) a commercial bank organized
      under the laws of the United States, or any state thereof, and having
      total assets in excess of $250,000,000, (b) a commercial bank organized
      under the laws of any other country which is a member of the
      Organization for Economic Cooperation and Development or a political
      subdivision of any such country and which has total assets in excess of
      $250,000,000, provided that such bank is acting through a branch or
      agency located in the United States, (c) a finance company, insurance
      company, or other financial institution or fund that is engaged in
      making, purchasing, or otherwise investing in commercial loans in the
      ordinary course of its business and having (together with its
      Affiliates) total assets in excess of $250,000,000, (d) any Affiliate
      (other than individuals) of a Lender that was party hereto as of the
      Closing Date, (e) so long as no Event of Default has occurred and is
      continuing, any other Person approved by Agent and Borrower, (which
      approval of Borrower shall not be unreasonably withheld, delayed, or
      conditioned), and (f) during the continuation of an Event of Default,
      any other Person approved by Agent.
    

    
      “Environmental Actions” means any complaint, summons,
      citation, notice, directive, order, claim, litigation, investigation,
      judicial or administrative proceeding, judgment, letter, or other
      communication from any Governmental Authority, or any third party
      involving violations of Environmental Laws or releases of Hazardous
      Materials from (a) any assets, properties, or businesses of Borrower,
      its Subsidiaries, or any of their predecessors in interest, (b) from
      adjoining properties or businesses, or (c) from or onto any facilities
      which received Hazardous Materials generated by Borrower, its
      Subsidiaries, or any of their predecessors in interest.
    

    
      “Environmental Law” means any applicable federal, state,
      provincial, foreign or local statute, law, rule, regulation, ordinance,
      code, binding and enforceable guideline, binding and enforceable written
      policy, or rule of common law now or hereafter in effect and in each
      case as amended, or any judicial or administrative interpretation
      thereof, including any judicial or administrative order, consent decree
      or judgment, in each case, to the extent binding on Borrower or its
      Subsidiaries, relating to the environment, the effect of the environment
      on employee health or safety, or Hazardous Materials, including the
      Comprehensive Environmental Response Compensation and Liability Act, 42
      U.S.C. § 9601 et seq.; the Resource Conservation and
      Recovery Act, 42 U.S.C. § 6901 et seq.; the Federal
      Water Pollution Control Act, 33 U.S.C. § 1251 et seq;
      the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq;
      the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Safe
      Drinking Water Act, 42 U.S.C. § 3803 et seq.; the Oil
      Pollution Act of 1990, 33 U.S.C. § 2701 et seq.;
      the Emergency Planning and the Community Right-to-Know Act of 1986, 42
      U.S.C. § 11001 et seq.; the Hazardous Material
      Transportation Act, 49 U.S.C. § 1801 et seq.;
      and the Occupational Safety and Health Act, 29 U.S.C. §651 et
      seq. (to the extent it regulates occupational exposure to
      Hazardous Materials); any state and local or foreign counterparts or
      equivalents, in each case as amended from time to time.
    

    
      -12-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Environmental Liabilities and Costs” means all
      liabilities, monetary obligations, losses, damages, punitive damages,
      consequential damages, treble damages, costs and expenses (including all
      reasonable fees, disbursements and expenses of counsel, experts, or
      consultants, and costs of investigation and feasibility studies), fines,
      penalties, sanctions, and interest incurred as a result of any claim or
      demand, or Remedial Actions required, by any Governmental Authority or
      any third party, and which relate to any Environmental Action.
    

    
      “Environmental Lien” means any Lien in favor of any
      Governmental Authority for Environmental Liabilities and Costs.
    

    
      “Equipment” means all equipment (as that term is defined in
      the Code), including machinery, machine tools, motors, furniture,
      furnishings, fixtures, vehicles (including motor vehicles), computer
      hardware, tools, parts and goods (other than consumer goods, farm
      products, or Inventory), wherever located, including all attachments,
      accessories, accessions, replacements, substitutions, additions, and
      improvements to any of the foregoing.
    

    
      “ERISA” means the Employee Retirement Income Security Act
      of 1974, as amended, and any successor statute thereto.  
    

    
      “ERISA Affiliate” means (a) any Person subject to ERISA
      whose employees are treated as employed by the same employer as the
      employees of Borrower or its Subsidiaries under IRC Section 414(b), (b)
      any trade or business subject to ERISA whose employees are treated as
      employed by the same employer as the employees of Borrower or its
      Subsidiaries under IRC Section 414(c), (c) solely for purposes of
      Section 302 of ERISA and Section 412 of the IRC, any organization
      subject to ERISA that is a member of an affiliated service group of
      which Borrower or any of its Subsidiaries are a member under IRC Section
      414(m), or (d) solely for purposes of Section 302 of ERISA and Section
      412 of the IRC, any Person subject to ERISA that is a party to an
      arrangement with Borrower or any of its Subsidiaries and whose employees
      are aggregated with the employees of Borrower or its Subsidiaries under
      IRC Section 414(o).
    

    
      “Event of Default” has the meaning set forth in Section
      8.
    

    
      “Exchange Act” means the Securities Exchange Act of 1934,
      as in effect from time to time.
    

    
      -13-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Fee Letter” means that certain Fee Letter, dated as of
      even date herewith, between Borrower and Agent, in form and substance
      satisfactory to Agent.
    

    
      “FEIN” means Federal Employer Identification Number.
    

    
      “Funding Date” means the date on which a Borrowing occurs.
    

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

    
      “General Intangibles” means all general intangibles (as
      that term is defined in the Code), including payment intangibles,
      contract rights, rights to payment, rights arising under common law,
      statutes, or regulations, choses or things in action, goodwill, patents,
      trade names, trade secrets, trademarks, servicemarks, copyrights,
      blueprints, drawings, purchase orders, customer lists, monies due or
      recoverable from pension funds, route lists, rights to payment and other
      rights under any royalty or licensing agreements, infringement claims,
      computer programs, information contained on computer disks or tapes,
      software, literature, reports, catalogs, insurance premium rebates, tax
      refunds, and tax refund claims, and any other personal property other
      than Accounts, commercial tort claims, Deposit Accounts, goods,
      Investment Property, and Negotiable Collateral.
    

    
      “Governing Documents” means, with respect to any Person,
      the certificate or articles of incorporation, formation or organization,
      bylaws, partnership agreement, operating or limited liability company
      agreement, or other organizational documents of such Person.
    

    
      “Governmental Authority” means any federal, state, local,
      or other governmental or administrative body, instrumentality, board,
      department, or agency or any court, tribunal, administrative hearing
      body, arbitration panel, commission, or other similar dispute-resolving
      panel or body.
    

    
      “Guarantor” means any Person that executes a Guaranty with
      respect to the Obligations.
    

    
      “Guaranty” means any guaranty executed and delivered by a
      Guarantor in favor of Agent, for the benefit of the Lender Group and the
      Bank Product Providers, in form and substance satisfactory to Agent.
    

    
      “Hazardous Materials” means (a) substances that are defined
      or listed in, or otherwise classified pursuant to, any applicable laws
      or regulations as “hazardous substances,” “hazardous materials,”
      “hazardous wastes,” “toxic substances,” or any other formulation
      intended to define, list, or classify substances by reason of
      deleterious properties such as ignitability, corrosivity, reactivity,
      carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil,
      petroleum, or petroleum derived substances, natural gas, natural gas
      liquids, synthetic gas, drilling fluids, produced waters, and other
      wastes associated with the exploration, development, or production of
      crude oil, natural gas, or geothermal resources, (c) any flammable
      substances or explosives or any radioactive materials, and (d) asbestos
      in any form or electrical equipment that contains any oil or dielectric
      fluid containing levels of polychlorinated biphenyls in excess of 50
      parts per million.
    

    
      -14-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Hedging Agreement” means any and all agreements or
      documents now existing or hereafter entered into by Borrower or any of
      its Subsidiaries that provide for an interest rate, credit, commodity or
      equity swap, cap, floor, collar, forward foreign exchange transaction,
      currency swap, cross currency rate swap, currency option, or any
      combination of, or option with respect to, these or similar
      transactions, for the purpose of hedging Borrower’s or any of its
      Subsidiaries’ exposure to fluctuations in interest or exchange rates,
      loan, credit exchange, security or currency valuations or commodity
      prices.
    

    
      “Holdout Lender” has the meaning set forth in Section
      15.2(a).
    

    
      “HTGC” means Hercules Technology Growth Capital, Inc., a
      Maryland corporation.
    

    
      “Indebtedness” means (a) all obligations for borrowed
      money, (b) all obligations evidenced by bonds, debentures, notes, or
      other similar instruments and all reimbursement or other obligations in
      respect of letters of credit, bankers acceptances, interest rate swaps,
      or other financial products, (c) all obligations as a lessee under
      Capital Leases, (d) all obligations or liabilities of others secured by
      a Lien on any asset of a Person or its Subsidiaries, irrespective of
      whether such obligation or liability is assumed, (e) all obligations to
      pay the deferred purchase price of assets (other than trade payables
      incurred in the ordinary course of business and repayable in accordance
      with customary trade practices), (f) all obligations owing under Hedging
      Agreements, and (g) any obligation of guaranteeing or intended to
      guarantee (whether directly or indirectly guaranteed, endorsed, co-made,
      discounted, or sold with recourse) any obligation of any other Person
      that constitutes Indebtedness under any of clauses (a) through (f)
      above.
    

    
      “Indemnified Liabilities” has the meaning set forth in Section
      11.3.
    

    
      “Indemnified Person” has the meaning set forth in Section
      11.3.
    

    
      “Insolvency Proceeding” means any proceeding commenced by
      or against any Person under any provision of the Bankruptcy Code or
      under any other state or federal bankruptcy or insolvency law,
      assignments for the benefit of creditors, formal or informal moratoria,
      compositions, extensions generally with creditors, or proceedings
      seeking reorganization, arrangement, or other similar relief.
    

    
      “Intangible Assets” means, with respect to any Person, that
      portion of the book value of all of such Person’s assets that would be
      treated as intangibles under GAAP.
    

    
      “Interest Coverage Ratio” means, with respect to any Person
      for any period, the ratio of (i) Net Investment Income for such period,
      to (ii) total interest expense (including unused line fees) to the
      extent paid or required to be paid during such period, in each case
      determined for such Person.
    

    
      “Interest Period” means, with respect to each LIBOR Rate
      Loan, a period commencing on the first day of a calendar month and
      ending on the last day of such calendar month; provided, however,
      that if Borrower delivers a LIBOR Notice in accordance with Section 2.12
      on or before the Closing Date, then such LIBOR Notice shall create and
      be effective with respect to an Interest Period commencing on the
      Closing Date and ending on the last day of the calendar month in which
      the Closing Date occurs.
    

    
      -15-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Inventory” means inventory (as that term is defined in the
      Code).
    

    
      “Investment” means, with respect to any Person, any
      investment by such Person in any other Person (including Affiliates) in
      the form of loans, guarantees, advances, or capital contributions
      (excluding (a) commission, travel, and similar advances to officers and
      employees of such Person made in the ordinary course of business, and
      (b) bona fide Accounts arising in the ordinary course of business
      consistent with past practice), purchases or other acquisitions of
      Indebtedness, Stock or all or substantially all of the assets of such
      Person (or of any division or business line of such other Person), and
      any other items that are or would be classified as investments on a
      balance sheet prepared in accordance with GAAP.
    

    
      “Investment Property” means investment property (as that
      term is defined in the Code).
    

    
      “IRC” means the Internal Revenue Code of 1986, as in effect
      from time to time.
    

    
      “Lender” and “Lenders” have the
      respective meanings set forth in the preamble to this Agreement, and
      shall include any other Person made a party to this Agreement in
      accordance with the provisions of Section 14.1.
    

    
      “Lender Group” means, individually and collectively, each
      of the Lenders and Agent.
    

    
      “Lender Group Expenses” means all reasonable (a) costs or
      expenses (including taxes, and insurance premiums) required to be paid
      by Borrower or its Subsidiaries under any of the Loan Documents that are
      paid, advanced or incurred by the Lender Group, (b) fees or charges paid
      or incurred by Agent in connection with the Lender Group’s transactions
      with Borrower or its Subsidiaries, including, fees or charges for
      photocopying, notarization, couriers and messengers, telecommunication,
      public record searches (including tax lien, litigation, and UCC searches
      and including searches with the patent and trademark office, the
      copyright office, or the department of motor vehicles), filing,
      recording, publication, appraisal (including initial and subsequent
      periodic Collateral appraisals or valuations or business valuations to
      the extent of the fees and charges therefor (and up to the amount of any
      limitation contained in this Agreement)), real estate surveys, real
      estate title policies and endorsements, and environmental audits, (c)
      costs and expenses incurred by Agent in the disbursement of funds to
      Borrower (by wire transfer or otherwise), (d) charges paid or incurred
      by Agent resulting from the dishonor of checks, (e) costs and expenses
      paid or incurred by the Lender Group to correct any default or enforce
      any provision of the Loan Documents, or in gaining possession of,
      maintaining, handling, preserving, storing, shipping, selling, preparing
      for sale, or advertising to sell the Collateral, or any portion thereof,
      irrespective of whether a sale is consummated, (f) audit fees and
      expenses of Agent related to audit examinations of the Books to the
      extent of the fees and charges (and up to the amount of any limitation)
      contained in this Agreement, (g) costs and expenses of third party
      claims or any other suit paid or incurred by the Lender Group in
      enforcing or defending the Loan Documents or in connection with the
      transactions contemplated by the Loan Documents or the Lender Group’s
      relationship with Borrower or any of its Subsidiaries or any Guarantor,
      (h) Agent’s costs and expenses (including attorneys’ fees) incurred in
      advising, structuring, drafting, reviewing, administering, or amending
      the Loan Documents, and (i) Agent’s and each Lender’s costs and expenses
      (including attorneys’, accountants’, consultants’, and other advisors’
      fees and expenses) incurred in terminating, enforcing (including
      attorneys’, accountants’, consultants’, and other advisors’ fees and
      expenses incurred in connection with a “workout,” a “restructuring,” or
      an Insolvency Proceeding concerning Borrower or any of its Subsidiaries
      or any Guarantor or in exercising rights or remedies under the Loan
      Documents), or defending the Loan Documents, irrespective of whether
      suit is brought, or in taking any Remedial Action concerning the
      Collateral.  All such amounts representing a mere pass-through by a
      member of the Lender Group of out-of-pocket costs and expenses set by a
      third-party shall be deemed to be reasonable for purposes of this
      Agreement and other Loan Documents.
    

    
      -16-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Lender-Related Person” means, with respect to any Lender,
      such Lender, together with such Lender’s Affiliates, and the officers,
      directors, employees, and agents of such Lender.
    

    
      “LIBOR Deadline” has the meaning specified therefor in Section
      2.12(a).
    

    
      “LIBOR Notice” means a written notice in the form of Exhibit
      L-1.
    

    
      “LIBOR Option” has the meaning specified therefor in Section
      2.12(a).
    

    
      “LIBOR Rate” means, for each Interest Period for each LIBOR
      Rate Loan, the rate per annum determined by Agent by dividing (a) the
      Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve
      Percentage.  The LIBOR Rate shall be adjusted on and as of the effective
      day of any change in the Reserve Percentage.
    

    
      “LIBOR Rate Loan” means each portion of an Advance that
      bears interest at a rate determined by reference to the LIBOR Rate
      pursuant to Borrower’s exercise of the LIBOR Option in accordance with Section
      2.12.
    

    
      “LIBOR Rate Margin” means three and one-quarter of one
      percent (3.25%).
    

    
      “Lien” means any interest in an asset securing an
      obligation owed to, or a claim by, any Person other than the owner of
      the asset, irrespective of whether (a) such interest is based on the
      common law, statute, or contract, (b) such interest is recorded or
      perfected, and (c) such interest is contingent upon the occurrence of
      some future event or events or the existence of some future circumstance
      or circumstances.  Without limiting the generality of the foregoing, the
      term “Lien” includes the lien or security interest arising from a
      mortgage, deed of trust, deed to secure debt, encumbrance, pledge,
      hypothecation, assignment, deposit arrangement, security agreement,
      conditional sale or trust receipt, or from a lease, consignment, or
      bailment for security purposes and also includes reservations,
      exceptions, encroachments, easements, rights-of-way, covenants,
      conditions, restrictions, leases, and other title exceptions and
      encumbrances affecting Real Property.
    

    
      “Loan Account” has the meaning set forth in Section
      2.9.
    

    
      “Loan Documents” means this Agreement, the Bank Product
      Agreements (if any), the Cash Management Agreements, the Closing
      Certificate, the Control Agreements, the Sale and Servicing Agreement,
      the Disbursement Letter, the Fee Letter, the Guaranties (if any), the
      Officers’ Certificates, any note or notes executed by Borrower in
      connection with this Agreement and payable to a member of the Lender
      Group, and any other agreement entered into, now or in the future, by
      Borrower or any of its Subsidiaries or any Guarantor and the Lender
      Group in connection with this Agreement.
    

    
      -17-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Material Adverse Change” means (a) a material adverse
      change in the business, prospects, operations, results of operations,
      assets, liabilities or condition (financial or otherwise) of Borrower
      and its Subsidiaries, taken as a whole, or HTGC and its Subsidiaries,
      taken as a whole, (b) a material impairment of the ability to HTGC,
      Borrower’s or their respective Subsidiaries to perform their obligations
      under the Loan Documents to which they are parties or of the Lender
      Group’s ability to enforce the Obligations or realize upon the
      Collateral, or (c) a material impairment of the enforceability or
      priority of the Agent’s Liens with respect to the Collateral as a result
      of an action or failure to act on the part of HTGC, Borrower’s or their
      respective Subsidiaries.
    

    
      “Maturity Date” has the meaning set forth in Section
      3.4.
    

    
      “Maximum Revolver Amount” means $300,000,000, or such other
      amount of the aggregate Commitments at such time as reflected on Schedule
      C-1 as then in effect pursuant to this Agreement or any amendment to
      this Agreement.
    

    
      “Negotiable Collateral” means letters of credit, letter of
      credit rights, instruments, promissory notes, drafts, documents, and
      chattel paper (including electronic chattel paper and tangible chattel
      paper).
    

    
      “Net Eligible Notes Receivable” means, as of any date of
      determination, the aggregate unpaid principal amount of all Eligible
      Notes Receivable (less any portions that are excluded based upon the
      definition thereof) on such date.
    

    
      “Net Investment Income” means, with respect to any Person
      for any fiscal period, such Person’s interest and fee income, less
      operating expenses, in each case as determined for such period and in
      each case not otherwise defined herein as determined in accordance with
      GAAP.
    

    
      “Note Receivable” means a promissory note evidencing a
      commercial loan made or purchased by Borrower in accordance with
      Borrower’s Required Procedures and secured by a Lien on property owned
      by the maker of such note.
    

    
      “Obligations” means (a) all loans, Advances, debts,
      principal, interest (including any interest that, but for the
      commencement of an Insolvency Proceeding, would have accrued), premiums,
      liabilities (including all amounts charged to Borrower’s Loan Account
      pursuant hereto), obligations (including indemnification obligations),
      fees (including the fees provided for in the Fee Letter), charges,
      costs, Lender Group Expenses (including any fees or expenses that, but
      for the commencement of an Insolvency Proceeding, would have accrued),
      lease payments, guaranties, covenants, and duties of any kind and
      description owing by Borrower to the Lender Group pursuant to or
      evidenced by the Loan Documents and irrespective of whether for the
      payment of money, whether direct or indirect, absolute or contingent,
      due or to become due, now existing or hereafter arising, and including
      all interest not paid when due and all Lender Group Expenses that
      Borrower is required to pay or reimburse by the Loan Documents, by law,
      or otherwise, and (b) all Bank Product Obligations.  Any reference in
      this Agreement or in the Loan Documents to the Obligations shall include
      all extensions, modifications, renewals, supplements, restatements or
      alterations thereof, both prior and subsequent to any Insolvency
      Proceeding.
    

    
      -18-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Officer’s Certificates” means the forms of
      Representations and Warranties of Officers provided by Agent to Borrower
      and HTGC, together with each of Borrower’s and HTGC’s completed
      responses to the inquiries set forth therein, the form and substance of
      such responses to be satisfactory to Agent.
    

    
      “Originating Lender” has the meaning set forth in Section
      14.1(e).
    

    
      “Overadvance” has the meaning set forth in Section
      2.4.
    

    
      “Participant” has the meaning set forth in Section
      14.1(e).
    

    
      “Permitted Discretion” means a determination made in the
      exercise of reasonable (from the perspective of a secured asset-based
      lender) business judgment.
    

    
      “Permitted Dispositions” means (a) sales or other
      dispositions of Equipment that is substantially worn, damaged, or
      obsolete in the ordinary course of business, (b) sales of Inventory to
      buyers in the ordinary course of business, (c) the use or transfer of
      money or Cash Equivalents in a manner that is not prohibited by the
      terms of this Agreement or the other Loan Documents, (d) the licensing,
      on a non-exclusive basis, of patents, trademarks, copyrights, and other
      intellectual property rights in the ordinary course of business, (e) a
      sale of a Note Receivable in the ordinary course of business, without
      recourse to Borrower (other than limited recourse for not more than 90
      days for any misrepresentation or for failure of Account Debtor to make
      first payment following sale or for other conditions approved in writing
      by Agent) for a cash purchase price of not less than one hundred percent
      (100%) of the unpaid balance thereof, (f) a sale of Note Receivable
      Collateral in connection with a foreclosure or similar proceeding
      following a default under the Note Receivable secured by such Note
      Receivable Collateral, and (g) sale of Real Estate Owned.
    

    
      “Permitted Investments” means (a) Investments in cash and
      Cash Equivalents, (b) Investments in negotiable instruments for
      collection, (c) advances made in connection with purchases of goods or
      services in the ordinary course of business, (d) commercial loans
      evidenced by a Note Receivable made in the ordinary course of business,
      (e) Investments received in settlement of amounts due to Borrower or any
      of its Subsidiaries effected in the ordinary course of business or owing
      to Borrower or any of its Subsidiaries as a result of Insolvency
      Proceedings involving an Account Debtor or upon the foreclosure or
      enforcement of any Lien in favor of Borrower or its Subsidiaries, and
      (f) Real Estate Owned.
    

    
      “Permitted Liens” means (a) Liens held by Agent, for the
      benefit of the Lender Group or any Bank Product Provider, (b) Liens for
      unpaid taxes or assessments that either (i) are not yet delinquent, or
      (ii) do not constitute an Event of Default hereunder and are the subject
      of Permitted Protests, (c) Liens set forth on Schedule P-1, (d)
      the interests of lessors under operating leases, (e) Liens that secure
      Purchase Money Indebtedness, including the interests of lessors under
      Capital Leases to the extent that such Liens or interests secure
      Permitted Purchase Money Indebtedness and so long as such Lien attaches
      only to the asset purchased or acquired and the proceeds thereof,
      (f) Liens arising by operation of law in favor of warehousemen,
      landlords, carriers, mechanics, materialmen, laborers, or suppliers,
      incurred in the ordinary course of business and not in connection with
      the borrowing of money, and which Liens either (i) are for sums not yet
      delinquent, or (ii) are the subject of Permitted Protests, (g) Liens on
      amounts deposited in connection with obtaining worker’s compensation or
      other unemployment insurance, (h) Liens on amounts deposited in
      connection with the making or entering into of bids, tenders, or leases
      in the ordinary course of business and not in connection with the
      borrowing of money, (i) Liens on amounts deposited as security for
      surety or appeal bonds in connection with obtaining such bonds in the
      ordinary course of business, (j) Liens resulting from any judgment or
      award that is not an Event of Default hereunder, (k) with respect to any
      Real Property, easements, covenants, restrictions, rights of way, and
      zoning restrictions that do not materially interfere with or impair the
      use or operation thereof, and (l) rights of setoff imposed by law upon
      deposit of cash and cash equivalents in favor of banks or other
      depository institutions incurred in the ordinary course of business in
      deposit accounts maintained with such bank or depository institution to
      the extent permitted under this Agreement.
    

    
      -19-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Permitted Protest” means the right of Borrower or any of
      its Subsidiaries to protest any Lien (other than any Lien that secures
      the Obligations), taxes (other than payroll taxes or taxes that are the
      subject of a United States federal tax lien), or rental payment, provided
      that (a) a reserve with respect to such obligation is established on the
      Books in such amount as is required under GAAP, (b) any such protest is
      instituted promptly and prosecuted diligently by Borrower or any of its
      Subsidiaries, as applicable, in good faith, and (c) Agent is satisfied
      that, while any such protest is pending, there will be no impairment of
      the enforceability, validity, or priority of any of the Agent’s Liens.
    

    
      “Permitted Purchase Money Indebtedness” means, as of any
      date of determination, Purchase Money Indebtedness incurred after the
      Closing Date in an aggregate principal amount outstanding at any one
      time not in excess of $25,000.
    

    
      “Person” means natural persons, corporations, limited
      liability companies, limited partnerships, general partnerships, limited
      liability partnerships, joint ventures, trusts, land trusts, business
      trusts, or other organizations, irrespective of whether they are legal
      entities, and governments and agencies and political subdivisions
      thereof.
    

    
      “Projections” means, with respect to any Person, such
      Person’s forecasted (a) balance sheets, (b) profit and loss statements,
      and (c) cash flow statements (if applicable), all prepared on a basis
      consistent with such Person’s historical financial statements, together
      with appropriate supporting details and a statement of underlying
      assumptions.
    

    
      “Pro Rata Share” means, as of any date of determination,
      with respect to all matters as to a particular Lender (including the
      indemnification obligations arising under Section 16.7),
      (a) prior to the Commitments being terminated or reduced to zero, the
      percentage obtained by dividing (i) such Lender’s Commitment, by (ii)
      the aggregate Commitments of all Lenders, and (b) from and after the
      time that the Commitments have been terminated or reduced to zero, the
      percentage obtained by dividing (i) the aggregate outstanding principal
      amount of such Lender’s Advances, by (ii) the aggregate outstanding
      principal amount of all Advances.
    

    
      -20-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Purchase Money Indebtedness” means Indebtedness (other
      than the Obligations, but including Capitalized Lease Obligations),
      incurred at the time of, or within 20 days after, the acquisition of any
      fixed assets for the purpose of financing all or any part of the
      acquisition cost thereof.
    

    
      “Real Estate Owned” means Real Property that secured a Note
      Receivable and was acquired by Borrower in connection with a
      foreclosure, deed-in-lieu of foreclosure or other similar process in
      which Borrower took legal title to such Real Property following a
      default under such Note Receivable.
    

    
      “Real Property” means any estates or interests in real
      property now owned or hereafter acquired by Borrower or any of its
      Subsidiaries and the improvements thereto.
    

    
      “Record” means information that is inscribed on a tangible
      medium or which is stored in an electronic or other medium and is
      retrievable in perceivable form.
    

    
      “Remedial Action” means all actions taken to (a) clean up,
      remove, remediate, contain, treat, monitor, assess, evaluate, or in any
      way address Hazardous Materials in the indoor or outdoor environment,
      (b) prevent or minimize a release or threatened release of Hazardous
      Materials so they do not migrate or endanger or threaten to endanger
      public health or welfare or the indoor or outdoor environment, (c)
      restore or reclaim natural resources or the environment, (d) perform any
      pre-remedial studies, investigations, or post-remedial operation and
      maintenance activities, or (e) conduct any other actions with respect to
      Hazardous Materials authorized by Environmental Laws.
    

    
      “Replacement Lender” has the meaning set forth in Section
      15.2(a).
    

    
      “Report” has the meaning set forth in Section
      16.17(a).
    

    
      “Required Asset Documents” means the documents set forth on Schedule
      R-1 hereto.
    

    
      “Required Lenders” means, at any time, the Lenders whose
      aggregate Pro Rata Shares constitute more than fifty percent (50%) of
      the Commitments, or if the Commitments have been terminated irrevocably,
      more than fifty percent (50%) of the Obligations then outstanding; provided,
      however, that at any time when there are two or more Lenders,
      “Required Lenders” shall mean two or more Lenders whose aggregate Pro
      Rata Shares constitute more than fifty percent (50%) of the Commitments,
      or if the Commitments have been terminated irrevocably, more than fifty
      percent (50%) of the Obligations then outstanding.
    

    
      “Reserve Percentage” means, on any day, for any Lender, the
      maximum percentage prescribed by the Board of Governors of the Federal
      Reserve System (or any successor Governmental Authority) for determining
      the reserve requirements (including any basic, supplemental, marginal,
      or emergency reserves) that are in effect on such date with respect to
      eurocurrency funding (currently referred to as “eurocurrency
      liabilities”) of that Lender, but so long as such Lender is not required
      or directed under applicable regulations to maintain such reserves, the
      Reserve Percentage shall be zero.
    

    
      -21-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Restricted Payments” means (a) any dividend or other
      distribution, in cash or other property, direct or indirect, on account
      of any class of Stock in Borrower, now or hereafter outstanding, (b) any
      redemption, retirement, sinking fund or similar payment, purchase or
      other acquisition for value, direct or indirect, of any class of Stock
      in Borrower, now or hereafter outstanding, (c) any payment made to
      retire, or obtain the surrender of, any outstanding warrants, options or
      other rights to acquire shares of any class of Stock in Borrower, now or
      hereafter outstanding, (d) any payment or prepayment of principal, or
      redemption, purchase, retirement, defeasance, sinking fund or similar
      payment with respect to, any Subordinated Debt or any Indebtedness owing
      to a holder of Stock in Borrower or an Affiliate of a holder of Stock in
      Borrower, or (e) any payment (other than compensation to an officer or
      director of Borrower, as such, in the ordinary course of business) to a
      holder of Stock in Borrower or to an Affiliate of Borrower or an
      Affiliate of any holder of Stock in Borrower not expressly authorized
      herein.
    

    
      “Revolver Usage” means, as of any date of determination,
      the amount of outstanding Advances.
    

    
      “Sale and Servicing Agreement” means the Sale and Servicing
      Agreement among Borrower, HTGC (as Originator and initial Servicer), the
      Backup Servicer, and Agent, in form and substance satisfactory to Agent.
    

    
      “SEC” means the United States Securities and Exchange
      Commission and any successor thereto.
    

    
      “Securities Account” means a “securities account,” as that
      term is defined in the Code.
    

    
      “Servicer” means HTGC, or any other Person that assumes the
      functions of servicing the Notes Receivables with the prior written
      consent of Agent or is otherwise appointed pursuant to the terms of the
      Sale and Servicing Agreement.
    

    
      “Servicing Fees” means the “Servicing Fee” payable to
      Servicer in accordance with the Sale and Servicing Agreement, which
      shall in no case exceed for each Collection Period (as defined in the
      Sale and Servicing Agreement) one percent (1.0%) per annum on the
      average of the Aggregate Outstanding Loan Balances (as defined in the
      Sale and Servicing Agreement) as of the first and last day of such
      Collection Period.
    

    
      “Settlement” has the meaning set forth in Section
      2.2(f)(i).
    

    
      “Settlement Date” has the meaning set forth in Section
      2.2(f)(i).
    

    
      “Solvent” means, with respect to any Person on a particular
      date, that, at fair valuations, the sum of such Person’s assets is
      greater than all of such Person’s debts.
    

    
      “Stock” means all shares, options, warrants, membership
      interests, units of membership interests, other interests,
      participations, or other equivalents (regardless of how designated) of
      or in a Person, whether voting or nonvoting, including common stock,
      preferred stock, or any other “equity security” (as such term is defined
      in Rule 3a11-1 of the General Rules and Regulations promulgated by the
      SEC under the Exchange Act).
    

    
      -22-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Subordinated Debt” means any unsecured Indebtedness
      specifically subordinated to the prior payment in full in cash of the
      Obligations and which shall otherwise be on terms and conditions
      reasonably satisfactory to Agent and subject to a Subordination
      Agreement.
    

    
      “Subordination Agreement” means a subordination agreement
      executed and delivered by Borrower and each of the holders of
      Subordinated Debt and Agent, the form and substance of which is
      satisfactory to Agent.
    

    
      “Subsidiary” of a Person means a corporation, partnership,
      limited liability company, or other entity in which that Person directly
      or indirectly owns or controls the shares of Stock having ordinary
      voting power to elect a majority of the board of directors (or appoint
      other comparable managers) of such corporation, partnership, limited
      liability company, or other entity.
    

    
      “Supporting Obligation” means a letter-of-credit right or
      secondary obligation that supports the payment or performance of an
      Account, chattel paper, document, General Intangible, Note Receivable,
      instrument, or Investment Property.
    

    
      “Swing Lender” means WFF or any other Lender that, at the
      request of Borrower and with the consent of Agent agrees, in such
      Lender’s sole discretion, to become the Swing Lender hereunder.
    

    
      “Swing Loan” has the meaning set forth in Section
      2.2(d)(i).
    

    
      “Tangible Net Worth” means, with respect to any Person as
      of any date of determination, determined on a consolidated basis and in
      accordance with GAAP, the result of (a) such Person’s total members’ or
      shareholder’s equity, minus (b) all Intangible Assets of
      such Person, minus (c) all of such Person’s prepaid expenses, minus
      (d) all amounts due to such Person from Affiliates of such Person.
    

    
      “Taxes” has the meaning set forth in Section
      16.11(a).
    

    
      “UCC Filing Authorization Letter” means a letter duly
      executed by Borrower authorizing Agent to file appropriate financing
      statements in such office or offices as may be necessary or, in the
      opinion of Agent, desirable to perfect the security interests purported
      to be created by the Loan Documents.
    

    
      “United States” means the United States of America.
    

    
      “Voidable Transfer” has the meaning set forth in Section
      17.6.
    

    
      “Wells Fargo” means Wells Fargo Bank, National Association,
      a national banking association.
    

    
      “WFF” means Wells Fargo Foothill, LLC, a Delaware limited
      liability company.
    

    
         1.2  Accounting Terms.  All
      accounting terms not specifically defined herein shall be construed in
      accordance with GAAP.  When used herein, the term “financial statements”
      shall include the notes and schedules thereto.  Whenever the term
      “Borrower” is used in respect of a financial covenant or a related
      definition, it shall be understood to mean Borrower and its Subsidiaries
      on a consolidated basis unless the context clearly requires otherwise.
    

    
      -23-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
         1.3  Code.  Any
      terms used in this Agreement that are defined in the Code shall be
      construed and defined as set forth in the Code unless otherwise defined
      herein; provided however, that to the extent that the Code
      is used to define any term herein and such term is defined differently
      in different Articles of the Code, the definition of such term contained
      in Article 9 shall govern.
    

    
         1.4  Construction.  Unless
      the context of this Agreement or any other Loan Document clearly
      requires otherwise, references to the plural include the singular,
      references to the singular include the plural, the terms “includes” and
      “including” are not limiting, and the term “or” has, except where
      otherwise indicated, the inclusive meaning represented by the phrase
      “and/or.”  The words “hereof,” “herein,” “hereby,” “hereunder,” and
      similar terms in this Agreement or any other Loan Document refer to this
      Agreement or such other Loan Document, as the case may be, as a whole
      and not to any particular provision of this Agreement or such other Loan
      Document, as the case may be.  Section, subsection, clause, schedule,
      and exhibit references herein are to this Agreement unless otherwise
      specified.  Any reference in this Agreement or in the other Loan
      Documents to any agreement, instrument, or document shall include all
      alterations, amendments, changes, extensions, modifications, renewals,
      replacements, substitutions, joinders, and supplements, thereto and
      thereof, as applicable (subject to any restrictions on such alterations,
      amendments, changes, extensions, modifications, renewals, replacements,
      substitutions, joinders, and supplements set forth herein).  Any
      reference herein to the satisfaction or repayment in full of the
      Obligations shall mean the repayment in full in cash (or cash
      collateralization in accordance with the terms hereof) of all
      Obligations other than contingent indemnification Obligations and other
      than any Bank Product Obligations that, at such time, are allowed by the
      applicable Bank Product Provider to remain outstanding and are not
      required to be repaid or cash collateralized pursuant to the provisions
      of this Agreement.  Any reference herein to any Person shall be
      construed to include such Person’s successors and assigns.  Any
      requirement of a writing contained herein or in the other Loan Documents
      shall be satisfied by the transmission of a Record and any Record
      transmitted shall constitute a representation and warranty as to the
      accuracy and completeness of the information contained therein.
    

    
         1.5  Schedules and Exhibits.  All
      of the schedules and exhibits attached to this Agreement shall be deemed
      incorporated herein by reference.
    

    
      2.  LOAN AND TERMS OF PAYMENT.
    

    
         2.1  Revolver Advances.
    

    
             (a)  Subject to the terms and conditions of this Agreement, and
      during the term of this Agreement, each Lender agrees (severally, not
      jointly or jointly and severally) to make advances (“Advances”)
      to Borrower in an amount at any one time outstanding not to exceed such
      Lender’s Pro Rata Share of an amount equal to the lesser of (i) the
      Maximum Revolver Amount or (ii) the Borrowing Base.
    

    
      -24-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
             (b)  Anything to the contrary in this Section
      2.1 notwithstanding, Agent shall have the right to establish
      reserves in such amounts, and with respect to such matters, as Agent in
      its Permitted Discretion shall deem necessary or appropriate, against
      the Borrowing Base, including reserves with respect to (i) sums that
      Borrower is required to pay (such as taxes, assessments, insurance
      premiums, or, in the case of leased assets, rents or other amounts
      payable under such leases) and has failed to pay under any Section of
      this Agreement or any other Loan Document, (ii) amounts owing by
      Borrower or any of its Subsidiaries to any Person to the extent secured
      by a Lien on, or trust over, any of the Collateral (other than any
      existing Permitted Lien set forth on Schedule P-1 which is
      specifically identified thereon as entitled to have priority over the
      Agent’s Liens), which Lien or trust, in the Permitted Discretion of
      Agent likely would have a priority superior to the Agent’s Liens (such
      as Liens or trusts in favor of landlords, warehousemen, carriers,
      mechanics, materialmen, laborers, or suppliers, or Liens or trusts for
      ad valorem, excise, sales, or other taxes where given priority under
      applicable law) in and to such item of the Collateral, (iii) the
      valuation of any Note Receivable, the Collateral securing any Note
      Receivable, or other Collateral, and (iv) the aggregate amount of
      unfunded commitments of Borrower to the makers of Notes Receivable.  So
      long as no Default or Event of Default has occurred and is continuing,
      Agent shall first notify and attempt to discuss with Borrower any such
      reserve that Agent proposes to establish unless Agent, in its Permitted
      Discretion, believes that exigent circumstances justify the immediate
      establishment of such reserve.
    

    
             (c)  The Lenders shall have no obligation to make additional
      Advances hereunder to the extent such additional Advances would cause
      the Revolver Usage to exceed the Maximum Revolver Amount.
    

    
             (d)  Amounts borrowed pursuant to this Section
      2.1 may be repaid and, subject to the terms and conditions of this
      Agreement, reborrowed at any time during the term of this Agreement.
    

    
         2.2  Borrowing Procedures and
      Settlements.
    

    
             (a)  Procedure
      for Borrowing.  Each Borrowing shall be made by an irrevocable
      written request by an Authorized Person delivered to Agent (which notice
      must be received by Agent no later than 1:00 p.m. (New York time) on the
      Business Day prior to the date that is the requested Funding Date
      specifying (i) the amount of such Borrowing, and (ii) the requested
      Funding Date, which shall be a Business Day.  At Agent’s election, in
      lieu of delivering the above-described written request, any Authorized
      Person may give Agent telephonic notice of such request by the required
      time.  In such circumstances, Borrower agrees that any  such telephonic
      notice will be confirmed in writing within 24 hours of the giving of
      such telephonic notice, but the failure to provide such written
      confirmation shall not affect the validity of the request.
    

    
             (b)  Agent’s
      Election.  Promptly after receipt of a request for a Borrowing
      pursuant to Section 2.2(a), Agent shall elect, in its discretion,
      (i) to have the terms of Section 2.2(c) apply to such requested
      Borrowing, or (ii) to request Swing Lender to make a Swing Loan pursuant
      to the terms of Section 2.2(d) in the amount of the requested
      Borrowing; provided, however, that if Swing Lender
      declines in its sole discretion to make a Swing Loan pursuant to Section
      2.2(d), Agent shall elect to have the terms of Section 2.2(c)
      apply to such requested Borrowing.
    

    
      -25-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
             (c)  Making of
      Advances.
    

    
                 (i)  In the event that Agent shall elect to have the terms of
      this Section 2.2(c) apply to a requested Borrowing as described
      in Section 2.2(b), then promptly after receipt of a request for a
      Borrowing pursuant to Section 2.2(a), Agent shall notify the
      Lenders, not later than 4:00 p.m. (New York time) on the Business Day
      immediately preceding the Funding Date applicable thereto, by telecopy,
      telephone, or other similar form of transmission, of the requested
      Borrowing.  Each Lender shall make the amount of such Lender’s Pro Rata
      Share of the requested Borrowing available to Agent in immediately
      available funds, to Agent’s Account, not later than 1:00 p.m. (New York
      time) on the Funding Date applicable thereto.  After Agent’s receipt of
      the proceeds of such Advances, upon satisfaction of the applicable
      conditions precedent set forth in Section 3 hereof, Agent shall
      make the proceeds thereof available to Borrower on the applicable
      Funding Date by transferring immediately available funds equal to such
      proceeds received by Agent to Borrower’s Designated Account; provided,
      however, that, subject to the provisions of Section 2.2(i),
      Agent shall not request any Lender to make, and no Lender shall have the
      obligation to make, any Advance if Agent shall have actual knowledge
      that (1) one or more of the applicable conditions precedent set forth in Section
      3 will not be satisfied on the requested Funding Date for the
      applicable Borrowing unless such condition has been waived, or (2) the
      requested Borrowing would exceed the Availability on such Funding Date.
    

    
                (ii)  Unless Agent receives notice from a Lender on or prior
      to the Closing Date or, with respect to any Borrowing after the Closing
      Date, prior to 12:00 noon (New York time) on the date of such Borrowing,
      that such Lender will not make available as and when required hereunder
      to Agent for the account of Borrower the amount of that Lender’s Pro
      Rata Share of the Borrowing, Agent may assume that each Lender has made
      or will make such amount available to Agent in immediately available
      funds on the Funding Date and Agent may (but shall not be so required),
      in reliance upon such assumption, make available to Borrower on such
      date a corresponding amount.  If and to the extent any Lender shall not
      have made its full amount available to Agent in immediately available
      funds and Agent in such circumstances has made available to Borrower
      such amount, that Lender shall on the Business Day following such
      Funding Date make such amount available to Agent, together with interest
      at the Defaulting Lender Rate for each day during such period.  A notice
      submitted by Agent to any Lender with respect to amounts owing under
      this subsection shall be conclusive, absent manifest error.  If such
      amount is so made available, such payment to Agent shall constitute such
      Lender’s Advance on the date of Borrowing for all purposes of this
      Agreement.  If such amount is not made available to Agent on the
      Business Day following the Funding Date, Agent will notify Borrower of
      such failure to fund and, upon demand by Agent, Borrower shall pay such
      amount to Agent for Agent’s account, together with interest thereon for
      each day elapsed since the date of such Borrowing, at a rate per annum
      equal to the interest rate applicable at the time to the Advances
      composing such Borrowing.  The failure of any Lender to make any Advance
      on any Funding Date shall not relieve any other Lender of any obligation
      hereunder to make an Advance on such Funding Date, but no Lender shall
      be responsible for the failure of any other Lender to make the Advance
      to be made by such other Lender on any Funding Date.  
    

    
      -26-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
               (iii)  Agent shall not be obligated to transfer to a Defaulting
      Lender any payments made by Borrower to Agent for the Defaulting
      Lender’s benefit, and, in the absence of such transfer to the Defaulting
      Lender, Agent shall transfer any such payments to each other
      non-Defaulting Lender member of the Lender Group ratably in accordance
      with their Commitments (but only to the extent that such Defaulting
      Lender’s Advance was funded by the other members of the Lender Group)
      or, if so directed by Borrower and if no Default or Event of Default had
      occurred and is continuing (and to the extent such Defaulting Lender’s
      Advance was not funded by the Lender Group), retain same to be
      re-advanced to Borrower as if such Defaulting Lender had made Advances
      to Borrower.  Subject to the foregoing, Agent may hold and, in its
      Permitted Discretion, re-lend to Borrower for the account of such
      Defaulting Lender the amount of all such payments received and retained
      by it for the account of such Defaulting Lender.  Solely for the
      purposes of voting or consenting to matters with respect to the Loan
      Documents, such Defaulting Lender shall be deemed not to be a “Lender”
      and such Lender’s Commitment shall be deemed to be zero.  This Section
      shall remain effective with respect to such Lender until (x) the
      Obligations under this Agreement shall have been declared or shall have
      become immediately due and payable, (y) the non-Defaulting Lenders,
      Agent, and Borrower shall have waived such Defaulting Lender’s default
      in writing, or (z) the Defaulting Lender makes its Pro Rata Share of the
      applicable Advance and pays to Agent all amounts owing by Defaulting
      Lender in respect thereof.  The operation of this Section shall not be
      construed to increase or otherwise affect the Commitment of any Lender,
      to relieve or excuse the performance by such Defaulting Lender or any
      other Lender of its duties and obligations hereunder, or to relieve or
      excuse the performance by Borrower of its duties and obligations
      hereunder to Agent or to the Lenders other than such Defaulting
      Lender.  Any such failure to fund by any Defaulting Lender shall
      constitute a material breach by such Defaulting Lender of this Agreement
      and shall entitle Borrower at its option, upon written notice to Agent,
      to arrange for a substitute Lender to assume the Commitment of such
      Defaulting Lender, such substitute Lender to be acceptable to Agent.  In
      connection with the arrangement of such a substitute Lender, the
      Defaulting Lender shall have no right to refuse to be replaced
      hereunder, and agrees to execute and deliver a completed form of
      Assignment and Acceptance Agreement in favor of the substitute Lender
      (and agrees that it shall be deemed to have executed and delivered such
      document if it fails to do so) subject only to being repaid its share of
      the outstanding Obligations without any premium or penalty of any kind
      whatsoever; provided, however, that any such assumption of
      the Commitment of such Defaulting Lender shall not be deemed to
      constitute a waiver of any of the Lender Groups’ or Borrower’s rights or
      remedies against any such Defaulting Lender arising out of or in
      relation to such failure to fund.
    

    
             (d)  Making of
      Swing Loans.
    

    
                 (i)  In the event Agent shall elect, with the consent of
      Swing Lender, as a Lender, to have the terms of this Section 2.2(d)
      apply to a requested Borrowing as described in Section 2.2(b),
      Swing Lender as a Lender shall make such Advance in the amount of such
      Borrowing (any such Advance made solely by Swing Lender as a Lender
      pursuant to this Section 2.2(d) being referred to as a “Swing
      Loan” and such Advances being referred to collectively as “Swing
      Loans”) available to Borrower on the Funding Date applicable thereto
      by transferring immediately available funds to Borrower’s Designated
      Account or, at the request of Borrower, to the account of a Settlement
      Agent.  Each Swing Loan shall be deemed to be an Advance hereunder and
      shall be subject to all the terms and conditions applicable to other
      Advances, except that all payments on any Swing Loan shall be payable to
      Swing Lender as a Lender solely for its own account (and for the account
      of the holder of any participation interest with respect to such Swing
      Loan).  Subject to the provisions of Section 2.2(i),
      Agent shall not request Swing Lender as a Lender to make, and Swing
      Lender as a Lender shall not make, any Swing Loan if Agent has actual
      knowledge that (i) one or more of the applicable conditions precedent
      set forth in Section 3 will not be satisfied on the requested
      Funding Date for the applicable Borrowing unless such condition has been
      waived, (ii) the requested Borrowing would exceed the Availability on
      such Funding Date, or (iii) the requested Borrowing would cause the
      aggregate outstanding amount of Swing Loans to exceed the lesser of
      (A) $15,000,000 or (B) five percent (5%) of the Maximum Revolver Amount
      at such time.  Swing Lender as a Lender shall not otherwise be required
      to determine whether the applicable conditions precedent set forth in Section
      3 have been satisfied on the Funding Date applicable thereto prior
      to making, in its sole discretion, any Swing Loan.
    

    
      -27-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                (ii)  The Swing Loans shall be secured by the Agent’s Liens,
      constitute Advances and Obligations hereunder, and bear interest at the
      rate applicable from time to time to Advances that are Base Rate Loans.
    

    
             (e)  Agent
      Advances.
    

    
                 (i)  Agent hereby is authorized by Borrower and the Lenders,
      from time to time in Agent’s sole discretion, (1) after the occurrence
      and during the continuance of a Default or an Event of Default, or (2)
      at any time that any of the other applicable conditions precedent set
      forth in Section 3 have not been satisfied, to make Advances to
      Borrower on behalf of the Lenders that Agent, in its Permitted
      Discretion deems necessary or desirable (A) to preserve or protect the
      Collateral, or any portion thereof, (B) to enhance the likelihood of
      repayment of the Obligations (other than the Bank Product Obligations),
      or (C) to pay any other amount chargeable to Borrower pursuant to the
      terms of this Agreement, including Lender Group Expenses and the costs,
      fees, and expenses described in Section 10 (any of the Advances
      described in this Section 2.2(e) shall be referred to as “Agent
      Advances”); provided, however, that Agent shall
      not knowingly make additional Agent Advances that would cause the
      aggregate amount of outstanding Agent Advances at such time to exceed
      ten percent (10%) of the Borrowing Base at such time without the consent
      of all Lenders.  Each Agent Advance shall be deemed to be an Advance
      hereunder, except that all payments thereon shall be payable to Agent
      solely for its own account.
    

    
                (ii)  The Agent Advances shall be repayable on demand and
      secured by the Agent’s Liens granted to Agent under the Loan Documents,
      shall constitute Advances and Obligations hereunder, and shall bear
      interest at the rate applicable from time to time to Advances that are
      Base Rate Loans.
    

    
      -28-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
             (f)  Settlement.  It
      is agreed that each Lender’s funded portion of the Advances is intended
      by the Lenders to equal, at all times, such Lender’s Pro Rata Share of
      the outstanding Advances.  Such agreement notwithstanding, Agent, Swing
      Lender, and the other Lenders agree (which agreement shall not be for
      the benefit of or enforceable by Borrower) that in order to facilitate
      the administration of this Agreement and the other Loan Documents,
      settlement among them as to the Advances, the Swing Loans, and the Agent
      Advances shall take place on a periodic basis in accordance with the
      following provisions:
    

    
                 (i)  Agent shall request settlement (“Settlement”)
      with the Lenders on a weekly basis, or on a more frequent basis if so
      determined by Agent, (1) on behalf of Swing Lender, with respect to each
      outstanding Swing Loan, (2) for itself, with respect to each Agent
      Advance, and (3) with respect to Collections received, as to each by
      notifying the Lenders by telecopy, telephone, or other similar form of
      transmission, of such requested Settlement, no later than 5:00 p.m. (New
      York time) on the Business Day immediately prior to the date of such
      requested Settlement (the date of such requested Settlement being the “Settlement
      Date”).  Such notice of a Settlement Date shall include a summary
      statement of the amount of outstanding Advances, Swing  Loans, and Agent
      Advances for the period since the prior Settlement Date.  Subject to the
      terms and conditions contained herein (including Section 2.2(c)(iii)):  (y)
      if a Lender’s balance of the Advances, Swing Loans, and Agent Advances
      exceeds such Lender’s Pro Rata Share of the Advances, Swing Loans, and
      Agent Advances as of a Settlement Date, then Agent shall, by no later
      than 2:00 p.m. (New York time) on the Settlement Date, transfer in
      immediately available funds to the account of such Lender as such Lender
      may designate, an amount such that each such Lender shall, upon receipt
      of such amount, have as of the Settlement Date, its Pro Rata Share of
      the Advances, Swing Loans, and Agent Advances, and (z) if a Lender’s
      balance of the Advances, Swing Loans, and Agent Advances is less than
      such Lender’s Pro Rata Share of the Advances, Swing Loans, and Agent
      Advances as of a Settlement Date, such Lender shall no later than 2:00
      p.m. (New York time) on the Settlement Date transfer in immediately
      available funds to the Agent’s Account, an amount such that each such
      Lender shall, upon transfer of such amount, have as of the Settlement
      Date, its Pro Rata Share of the Advances, Swing Loans, and Agent
      Advances.  Such amounts made available to Agent under clause
      (z) of the immediately preceding sentence shall be applied against
      the amounts of the applicable Swing Loan or Agent Advance and, together
      with the portion of such Swing Loan or Agent Advance representing Swing
      Lender’s Pro Rata Share thereof, shall constitute Advances of such
      Lenders.  If any such amount is not made available to Agent by any
      Lender on the Settlement Date applicable thereto to the extent required
      by the terms hereof, Agent shall be entitled to recover for its account
      such amount on demand from such Lender together with interest thereon at
      the Defaulting Lender Rate.
    

    
                (ii)  In determining whether a Lender’s balance of the
      Advances, Swing Loans, and Agent Advances is less than, equal to, or
      greater than such Lender’s Pro Rata Share of the Advances, Swing Loans,
      and Agent Advances as of a Settlement Date, Agent shall, as part of the
      relevant Settlement, apply to such balance the portion of payments
      actually received in good funds by Agent with respect to principal,
      interest, fees payable by Borrower and allocable to the Lenders
      hereunder, and proceeds of Collateral.  To the extent that a net amount
      is owed to any such Lender after such application, such net amount shall
      be distributed by Agent to that Lender as part of such next Settlement.
    

    
      -29-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
               (iii)  Between Settlement Dates, Agent, to the extent no Agent
      Advances or Swing Loans are outstanding, may pay over to Swing Lender
      any payments received by Agent, that in accordance with the terms of
      this Agreement would be applied to the reduction of the Advances, for
      application to Swing Lender’s Pro Rata Share of the Advances.  If, as of
      any Settlement Date, Collections received since the then immediately
      preceding Settlement Date have been applied to Swing Lender’s Pro Rata
      Share of the Advances other than to Swing Loans, as provided for in the
      previous sentence, Swing Lender shall pay to Agent for the accounts of
      the Lenders, and Agent shall pay to the Lenders, to be applied to the
      outstanding Advances of such Lenders, an amount such that each Lender
      shall, upon receipt of such amount, have, as of such Settlement Date,
      its Pro Rata Share of the Advances.  During the period between
      Settlement Dates, Swing Lender with respect to Swing Loans, Agent with
      respect to Agent Advances, and each Lender (subject to the effect of
      letter agreements between Agent and individual Lenders) with respect to
      the Advances other than Swing Loans and Agent Advances, shall be
      entitled to interest at the applicable rate or rates payable under this
      Agreement on the daily amount of funds employed by Swing Lender, Agent,
      or the Lenders, as applicable.
    

    
             (g)  Notation.  Agent
      shall record on its books the principal amount of the Advances owing to
      each Lender, including the Swing Loans owing to Swing Lender, and Agent
      Advances owing to Agent, and the interests therein of each Lender, from
      time to time and such records shall, absent manifest error, conclusively
      be presumed to be correct and accurate.  In addition, each Lender is
      authorized, at such Lender’s option, to note the date and amount of each
      payment or prepayment of principal of such Lender’s Advances in its
      books and records, including computer records.
    

    
             (h)  Lenders’
      Failure to Perform.  All Advances (other than Swing Loans and Agent
      Advances) shall be made by the Lenders contemporaneously and in
      accordance with their Pro Rata Shares.  It is understood that (i) no
      Lender shall be responsible for any failure by any other Lender to
      perform its obligation to make any Advance (or other extension of
      credit) hereunder, nor shall any Commitment of any Lender be increased
      or decreased as a result of any failure by any other Lender to perform
      its obligations hereunder, and (ii) no failure by any Lender to perform
      its obligations hereunder shall excuse any other Lender from its
      obligations hereunder.
    

    
             (i)  Optional
      Overadvances.  Any contrary provision of this Agreement
      notwithstanding, the Lenders hereby authorize Agent or Swing Lender, as
      applicable, and Agent or Swing Lender, as applicable, may, but is not
      obligated to, knowingly and intentionally, continue to make Advances
      (including Swing Loans) to Borrower notwithstanding that an Overadvance
      exists or thereby would be created, so long as (i) after giving effect
      to such Advances (including a Swing Loan), the outstanding Revolver
      Usage does not exceed the Borrowing Base by more than ten percent (10%)
      of the Borrowing Base, (ii) after giving effect to such Advances
      (including a Swing Loan), the outstanding Revolver Usage (except for and
      excluding amounts charged to the Loan Account for interest, fees, or
      Lender Group Expenses) does not exceed the Maximum Revolver Amount, and
      (iii) at the time of the making of any such Advance (including any Swing
      Loan), Agent does not believe, in good faith, that the Overadvance
      created by such Advance will be outstanding for more than 90 days.  The
      foregoing provisions are for the exclusive benefit of Agent, Swing
      Lender, and the Lenders and are not intended to benefit Borrower in any
      way.  The Advances and Swing Loans, as applicable, that are made
      pursuant to this Section 2.2(i) shall be subject to the same
      terms and conditions as any other Advance or Swing Loan, as applicable,
      except that the rate of interest applicable thereto shall be the rate
      applicable to Advances under Section 2.5(b) hereof without regard
      to the presence or absence of a Default or Event of Default.
    

    
      -30-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                 (i)  In the event Agent obtains actual knowledge that the
      Revolver Usage exceeds the amounts permitted by the preceding paragraph,
      regardless of the amount of, or reason for, such excess, Agent shall
      notify Lenders as soon as practicable (and prior to making any (or any
      additional) intentional Overadvances (except for and excluding amounts
      charged to the Loan Account for interest, fees, or Lender Group
      Expenses) unless Agent determines that prior notice would result in
      imminent harm to the Collateral or its value), and the Lenders thereupon
      shall, together with Agent, jointly determine the terms of arrangements
      that shall be implemented with Borrower intended to reduce, within a
      reasonable time, the outstanding principal amount of the Advances to
      Borrower to an amount permitted by the preceding paragraph.  In the
      event Agent or any Lender disagrees over the terms of reduction or
      repayment of any Overadvance, the terms of reduction or repayment
      thereof shall be implemented according to the determination of the
      Required Lenders.
    

    
                (ii)  Each Lender shall be obligated to settle with Agent as
      provided in Section 2.2(f) for the amount of such Lender’s Pro
      Rata Share of any unintentional Overadvances by Agent reported to such
      Lender, any intentional Overadvances made as permitted under this Section
      2.2(i), and any Overadvances resulting from the charging to the Loan
      Account of interest, fees, or Lender Group Expenses.
    

    
         2.3  Payments.
    

    
             (a)  Payments by
      Borrower.
    

    
                 (i)  Except as otherwise expressly provided herein, all
      payments by Borrower shall be made to Agent’s Account for the account of
      the Lender Group and shall be made in immediately available funds, no
      later than 2:00 p.m. (New York time) on the date specified herein.  Any
      payment received by Agent later than 2:00 p.m. (New York time) shall be
      deemed to have been received on the following Business Day and any
      applicable interest or fee shall continue to accrue until such following
      Business Day.
    

    
                (ii)  Unless Agent receives notice from Borrower prior to the
      date on which any payment is due to the Lenders that Borrower will not
      make such payment in full as and when required, Agent may assume that
      Borrower has made (or will make) such payment in full to Agent on such
      date in immediately available funds and Agent may (but shall not be so
      required), in reliance upon such assumption, distribute to each Lender
      on such due date an amount equal to the amount then due such Lender.  If
      and to the extent Borrower does not make such payment in full to Agent
      on the date when due, each Lender severally shall repay to Agent on
      demand such amount distributed to such Lender, together with interest
      thereon at the Defaulting Lender Rate for each day from the date such
      amount is distributed to such Lender until the date repaid.
    

    
      -31-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
             (b)  Apportionment
      and Application of Payments.
    

    
                 (i)  Except as otherwise provided with respect to Defaulting
      Lenders and except as otherwise provided in the Loan Documents
      (including letter agreements between Agent and individual Lenders),
      aggregate principal and interest payments shall be apportioned ratably
      among the Lenders (according to the unpaid principal balance of the
      Obligations to which such payments relate held by each Lender) and
      payments of fees and expenses (other than fees or expenses that are for
      Agent’s separate account, after giving effect to any letter agreements
      between Agent and individual Lenders) shall be apportioned ratably among
      the Lenders having a Pro Rata Share of the type of Commitment or
      Obligation to which a particular fee relates.  All payments shall be
      remitted to Agent and all such payments (other than payments received
      while no Event of Default has occurred and is continuing and which
      relate to the payment of principal or interest of specific Obligations
      or which relate to the payment of specific fees payable to Agent or
      Lenders, in either case as specified by Borrower), and all proceeds of
      Accounts or other Collateral received by Agent, shall be applied as
      follows:
    

    
                     (A)  first,
      to pay on a ratable basis, until paid in full (i) any Collateral
      Custodian Fees then due to a Collateral Custodian (if one has been
      appointed) under its Collateral Custodian Agreement, (ii) any Backup
      Servicer Fees then due to Backup Servicer under the Sale and Servicing
      Agreement, and (iii) upon the appointment pursuant to the Sale and
      Servicing Agreement of the Backup Servicer as successor Servicer, the
      Successor Engagement Fee (as defined in the Sale and Servicing
      Agreement) and any Transition Costs (as defined in the Sale and
      Servicing Agreement) then due to Backup Servicer,
    

    
                     (B)  second,
      to pay the Servicing Fee of Servicer and, with respect to a successor
      Servicer, expenses and other amounts due such successor Servicer, under
      the Sale and Servicing Agreement (provided, that with respect to the
      initial Servicer, such Fee shall only be paid so long as no Event of
      Default has occurred and is continuing), until paid in full,
    

    
                     (C)  third,
      to pay any Lender Group Expenses then due to Agent under the Loan
      Documents, until paid in full,
    

    
                     (D)  fourth,
      to pay any Lender Group Expenses then due to the Lenders under the Loan
      Documents, on a ratable basis, until paid in full,
    

    
                     (E)  fifth,
      to pay any fees then due to Agent (for its separate account, after
      giving effect to any letter agreements between Agent and individual
      Lenders) under the Loan Documents until paid in full,
    

    
      -32-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                     (F)  sixth,
      to pay any fees then due to any or all of the Lenders (after giving
      effect to any letter agreements between Agent and individual Lenders)
      under the Loan Documents, on a ratable basis, until paid in full,
    

    
                     (G)  seventh,
      to pay interest due in respect of all Agent Advances, until paid in full,
    

    
                     (H)  eighth,
      ratably to pay interest due in respect of the Advances (other than Agent
      Advances) and  the Swing Loans until paid in full,
    

    
                     (I)  ninth,
      to pay the principal of all Agent Advances until paid in full,
    

    
                     (J)  tenth,
      to pay the principal of all Swing Loans until paid in full,
    

    
                     (K)  eleventh,
      so long as no Event of Default has occurred and is continuing, and at
      Agent’s election (which election Agent agrees will not be made if an
      Overadvance would be created thereby), to pay amounts then due and owing
      by Borrower or its Subsidiaries in respect of Bank Products, until paid
      in full,
    

    
                     (L)  twelfth,
      so long as no Event of Default has occurred and is continuing, to pay
      the principal of all Advances until paid in full,
    

    
                     (M)  thirteenth,
      if an Event of Default has occurred and is continuing, ratably (i) to
      pay the principal of all Advances until paid in full, and (ii) to Agent,
      to be held by Agent, for the benefit of the Bank Product Providers, as
      cash collateral in an amount up to the amount of the Bank Product
      Reserve established prior to the occurrence of, and not in contemplation
      of, the subject Event of Default until Borrower’s and its Subsidiaries’
      obligations in respect of the Bank Products have been paid in full or
      the cash collateral amount has been exhausted,
    

    
                     (N)  fourteenth,
      if an Event of Default has occurred and is continuing, to pay any other
      Obligations (including the provision of amounts to Agent, to be held by
      Agent, for the benefit of the Bank Product Providers, as cash collateral
      in an amount up to the amount determined by Agent in its Permitted
      Discretion as the amount necessary to secure Borrower’s and its
      Subsidiaries’ obligations in respect of the Bank Products), and
    

    
                     (O)  fifteenth,
      to Borrower (to be wired to the Designated Account) or such other Person
      entitled thereto under applicable law.
    

    
                (ii)  Agent promptly shall distribute to each Lender, pursuant
      to the applicable wire instructions received from each Lender in
      writing, such funds as it may be entitled to receive, subject to a
      Settlement delay as provided in Section 2.2(f).
    

    
      -33-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
               (iii)  In each instance, so long as no Event of Default has
      occurred and is continuing, this Section 2.3(b) shall not apply
      to any payment made by Borrower to Agent and specified by Borrower to be
      for the payment of specific Obligations then due and payable (or
      prepayable) under any provision of this Agreement.
    

    
                (iv)  For purposes of the foregoing, “paid in full” means
      payment of all amounts owing under the Loan Documents according to the
      terms thereof, including loan fees, service fees, professional fees,
      interest (and specifically including interest accrued after the
      commencement of any Insolvency Proceeding), default interest, interest
      on interest, and expense reimbursements, whether or not any of the
      foregoing would be or is allowed or disallowed in whole or in part in
      any Insolvency Proceeding.
    

    
                 (v)  In the event of a direct conflict between the priority
      provisions of this Section 2.3 and other provisions contained in
      any other Loan Document, it is the intention of the parties hereto that
      such priority provisions in such documents shall be read together and
      construed, to the fullest extent possible, to be in concert with each
      other.  In the event of any actual, irreconcilable conflict that cannot
      be resolved as aforesaid, the terms and provisions of this Section 2.3
      shall control and govern.
    

    
         2.4  Overadvances.  If,
      at any time or for any reason, the amount of Obligations (other than
      Bank Product Obligations) owed by Borrower to the Lender Group pursuant
      to Section 2.1 is greater than any of the limitations set forth
      in Section 2.1 (an “Overadvance”), Borrower
      immediately shall pay to Agent, in cash, the amount of such excess,
      which amount shall be used by Agent to reduce the Obligations in
      accordance with the priorities set forth in Section 2.3(b).  All
      Overadvances shall be treated as Base Rate Loans.  In addition, Borrower
      hereby promises to pay the Obligations (including principal, interest,
      fees, costs, and expenses) in Dollars in full as and when due and
      payable under the terms of this Agreement and the other Loan Documents.
    

    
         2.5  Interest Rates:  Rates, Payments,
      and Calculations.
    

    
      (a)  Interest Rates.  Except as provided in Section 2.5(b)
      below, all Obligations (except for Bank Product Obligations) that have
      been charged to the Loan Account pursuant to the terms hereof shall bear
      interest on the Daily Balance thereof as follows:
    

    
         (i)  if the relevant Obligation is a LIBOR Rate Loan, at a per annum
      rate equal to (A) the LIBOR Rate plus (B) the LIBOR Rate
      Margin (provided, however, that in no case shall such per
      annum rate be less than five percent (5.00%) at any time), and
    

    
        (ii)  otherwise, at a per annum rate equal to (A) the Base Rate plus
      (B)  the Base Rate Margin (provided, however,
      that in no case shall such per annum rate be less than five percent
      (5.00%) at any time).
    

    
      (b)  Default Rate.  Upon the occurrence and during the
      continuation of an Event of Default (and at the election of Agent or the
      Required Lenders), all Obligations (except for Bank Product Obligations)
      that have been charged to the Loan Account pursuant to the terms hereof
      shall bear interest on the Daily Balance thereof at a per annum rate
      equal to four percent (4.0%) above the per annum rate otherwise
      applicable hereunder to Base Rate Loans hereunder.
    

    
      -34-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (c)  Payment.  Except to the extent, if any, provided
      to the contrary in Section 2.10 or Section 2.12,
      interest and all other fees payable hereunder shall be due and payable,
      in arrears, (i) on the first day of each month at any time that
      Obligations or Commitments are outstanding, and (ii) on the Maturity
      Date.  Borrower hereby authorizes Agent, from time to time without prior
      notice to Borrower, to charge all interest and fees (when due and
      payable), all Lender Group Expenses (as and when incurred), all fees and
      costs provided for in Section 2.10 (as and when accrued or
      incurred), and all other payments as and when due and payable under any
      Loan Document (including any amounts due and payable to the Bank Product
      Providers in respect of Bank Products up to the amount of the Bank
      Product Reserve) to Borrower’s Loan Account, which amounts thereafter
      shall constitute Advances hereunder and shall accrue interest at the
      rate then applicable to Advances hereunder.  Any interest not paid when
      due shall be compounded by being charged to Borrower’s Loan Account and
      shall thereafter constitute Advances hereunder and shall accrue interest
      at the rate then applicable to Advances hereunder.
    

    
      (d)  Computation.  All interest and fees chargeable
      under the Loan Documents shall be computed on the basis of a 360-day
      year for the actual number of days elapsed.  In the event the Base Rate
      is changed from time to time hereafter, the rates of interest hereunder
      based upon the Base Rate automatically and immediately shall be
      increased or decreased by an amount equal to such change in the Base
      Rate.  
    

    
      (e)  Intent to Limit Charges to Maximum Lawful Rate.  In
      no event shall the interest rate or rates payable under this Agreement,
      plus any other amounts paid in connection herewith, exceed the highest
      rate permissible under any law that a court of competent jurisdiction
      shall, in a final determination, deem applicable.  Borrower and the
      Lender Group, in executing and delivering this Agreement, intend legally
      to agree upon the rate or rates of interest and manner of payment stated
      within it; provided, however, that, anything contained
      herein to the contrary notwithstanding, if said rate or rates of
      interest or manner of payment exceeds the maximum allowable under
      applicable law, then, ipso facto, as of the date of
      this Agreement, Borrower is and shall be liable only for the payment of
      such maximum as allowed by law, and payment received from Borrower in
      excess of such legal maximum, whenever received, shall be applied to
      reduce the principal balance of the Obligations to the extent of such
      excess.
    

    
         2.6  Cash Management.
    

    
      (a)  Borrower shall and shall cause each of its Subsidiaries to, or
      shall cause Servicer to, (i) establish and maintain cash management
      services of a type and on terms satisfactory to Agent at one or more of
      the banks set forth on Schedule 2.6(a) (each, a “Cash
      Management Bank”), and shall request in writing and otherwise take
      such reasonable steps to ensure that all of Borrower’s and its
      Subsidiaries’ Account Debtors forward payment of the amounts owed by
      them directly to such Cash Management Bank, and (ii) deposit or cause to
      be deposited promptly, and in any event no later than the first Business
      Day after the date of receipt thereof, all of their Collections
      (including those sent directly by their Account Debtors to Borrower or
      one of its Subsidiaries) into a bank account in Agent’s name (a “Cash
      Management Account”) at one of the Cash Management Banks, (iii)
      cause all payments for each sale or other disposition of one or more
      Notes Receivable or payment in full of one or more Notes Receivable in
      connection with the refinancing of such Note Receivable or the sale and
      release of the collateral securing such Note Receivable to be made by
      the escrow company, title insurance company or refinancing lender or
      purchaser directly to a Cash Management Account by wire transfer or
      check drawn on the account of such escrow company or title insurance
      company or by cashier’s check, and (iv) until such time as a Cash
      Management Account is established, forward or cause to be forwarded no
      later than the first Business Day after the date of receipt thereof, all
      of their Collections to Agent’s Account.  Borrower shall, or shall cause
      Servicer to, request in writing and otherwise take such reasonable steps
      to ensure that all of Borrower’s and its Subsidiaries’ Account Debtors
      forward payment of the amounts owed by them to Borrower directly to a
      Cash Management Account.
    

    
      -35-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b)  Each Cash Management Bank shall establish and maintain Cash
      Management Agreements with Agent and Borrower, in form and substance
      acceptable to Agent.  Each such Cash Management Agreement shall provide,
      among other things, that (i) the Cash Management Bank will comply with
      any instructions originated by Agent directing the disposition of the
      funds in such Cash Management Account without further consent by
      Borrower or its Subsidiaries, as applicable, (ii) the Cash Management
      Bank has no rights of setoff or recoupment or any other claim against
      the applicable Cash Management Account other than for payment of its
      service fees and other charges directly related to the administration of
      such Cash Management Account and for returned checks or other items of
      payment, and (iii) it will forward, by an automatic daily sweep, all
      amounts in the applicable Cash Management Account to the Agent’s Account.
    

    
      (c)  So long as no Default or Event of Default has occurred and is
      continuing, Borrower may amend Schedule 2.6(a) to add or replace
      a Cash Management Bank or Cash Management Account; provided, however,
      that (i) such prospective Cash Management Bank shall be reasonably
      satisfactory to Agent and Agent shall have consented in writing in
      advance to the establishment of such Cash Management Account with the
      prospective Cash Management Bank, and (ii) prior to the time of the
      opening of such Cash Management Account, Borrower (or its Subsidiary, as
      applicable) and such prospective Cash Management Bank shall have
      executed and delivered to Agent a Cash Management Agreement.  Borrower
      (or its Subsidiaries, as applicable) shall close any of its Cash
      Management Accounts (and establish replacement cash management accounts
      in accordance with the foregoing sentence) promptly and in any event
      within 30 days of notice from Agent that the creditworthiness of any
      Cash Management Bank is no longer acceptable in Agent’s reasonable
      judgment, or as promptly as practicable and in any event within 60 days
      of notice from Agent that the operating performance, funds transfer, or
      availability procedures or performance of the Cash Management Bank with
      respect to Cash Management Accounts or Agent’s liability under any Cash
      Management Agreement with such Cash Management Bank is no longer
      acceptable in Agent’s reasonable judgment.
    

    
      (d)  The Cash Management Accounts shall be cash collateral accounts
      subject to Control Agreements, and Borrower hereby grants a Lien in all
      Cash Management Accounts to Agent to secure payment of the Obligations.
    

    
      -36-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
         2.7  Crediting Payments.  The
      receipt of any payment item by Agent (whether from transfers to Agent by
      the Cash Management Banks pursuant to the Cash Management Agreements or
      otherwise) shall not be considered a payment on account unless such
      payment item is a wire transfer of immediately available federal funds
      made to the Agent’s Account or unless and until such payment item is
      honored when presented for payment.  Should any payment item not be
      honored when presented for payment, then Borrower shall be deemed not to
      have made such payment and interest shall be calculated
      accordingly.  Anything to the contrary contained herein notwithstanding,
      any payment item shall be deemed received by Agent only if it is
      received into the Agent’s Account on a Business Day on or before 2:00
      p.m. (New York time).  If any payment item is received into the Agent’s
      Account on a non-Business Day or after 2:00 p.m. (New York time) on a
      Business Day, it shall be deemed to have been received by Agent as of
      the opening of business on the immediately following Business Day.
    

    
         2.8  Designated Account.  Agent
      is authorized to make the Advances under this Agreement based upon
      telephonic or other instructions received from anyone purporting to be
      an Authorized Person or, without instructions, if pursuant to Section
      2.5(c).  Borrower agrees to establish and maintain the Designated
      Account with the Designated Account Bank for the purpose of receiving
      the proceeds of the Advances requested by Borrower and made by Agent or
      the Lenders hereunder.  Unless otherwise agreed by Agent and Borrower,
      any Advance, Agent Advance, or Swing Loan requested by Borrower and made
      by Agent or the Lenders hereunder shall be made to the Designated
      Account.
    

    
         2.9  Maintenance of Loan
      Account; Statements of Obligations.  Agent shall maintain
      an account on its books in the name of Borrower (the “Loan
      Account”) on which Borrower will be charged with all Advances
      (including Agent Advances and Swing Loans) made by Agent, Swing Lender,
      or the Lenders to Borrower or for Borrower’s account, and with all other
      payment Obligations hereunder or under the other Loan Documents (except
      for Bank Product Obligations), including, accrued interest, fees and
      expenses, and Lender Group Expenses.  In accordance with Section
      2.7, the Loan Account will be credited with all payments received by
      Agent from Borrower or for Borrower’s account, including all amounts
      received in the Agent’s Account from any Cash Management Bank.  Agent
      shall render statements regarding the Loan Account to Borrower,
      including principal, interest, fees, and including an itemization of all
      charges and expenses constituting Lender Group Expenses owing, and such
      statements, absent manifest error, shall be conclusively presumed to be
      correct and accurate and constitute an account stated between Borrower
      and the Lender Group unless, within 30 days after receipt thereof by
      Borrower, Borrower shall deliver to Agent written objection thereto
      describing the error or errors contained in any such statements.
    

    
        2.10  Fees.  Borrower
      shall pay to Agent the following fees and charges, which fees and
      charges shall be non-refundable when paid (irrespective of whether this
      Agreement is terminated thereafter) and shall be apportioned among the
      Lenders in accordance with the terms of letter agreements between Agent
      and individual Lenders:
    

    
      (a)  Unused Line Fee.  On the first day of each month,
      Borrower shall pay an unused line fee equal to (i) the amount by which
      (A) the Maximum Revolver Amount then in effect exceeds (B) the average
      Daily Balance of Advances that were outstanding during the immediately
      preceding month, or portion thereof during which this Agreement is in
      effect, multiplied by (ii) (A) for each payment date
      occurring on or before August 1, 2009, one-half of one percent (0.50%)
      per annum, and (B) for each payment date occurring after August 1, 2009,
      three-tenths of one percent (0.30%) per annum.
    

    
      -37-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b)  Fee Letter Fees.  As and when due and payable
      under the terms of the Fee Letter, Borrower shall pay to Agent the fees
      set forth in the Fee Letter.
    

    
      (c)  Audit, Appraisal, and Valuation Charges.  For the
      separate account of Agent, Borrower shall pay to Agent audit, appraisal,
      and valuation fees and charges as follows (i) a fee of $1,000 per day,
      per auditor, plus out-of-pocket expenses for each financial or
      collateral audit of Borrower performed by personnel employed by Agent,
      (ii) a fee of $1,000 per day, per applicable individual, plus
      out-of-pocket expenses for the establishment of electronic collateral
      reporting systems, if requested by Agent, (iii) a fee of $1,500 per day
      per appraiser, plus out-of-pocket expenses, for each appraisal of the
      Collateral, or any portion thereof, performed by personnel employed by
      Agent, and (iv) the actual charges paid or incurred by Agent if it
      elects to employ the services of one or more third Persons to perform
      financial or collateral audits of Borrower or its Subsidiaries, to
      establish electronic collateral reporting systems, to appraise the
      Collateral or any portion thereof, or to assess Borrower’s or its
      Subsidiaries’ procedures or business valuation; provided
      that so long as no Event of Default has occurred and is continuing,
      Borrower will not be charged for more than three (3) financial or
      collateral audits in any twelve-month period.
    

    
        2.11  Capital Requirements.  If,
      after the date hereof, any Lender determines that (i) the adoption of or
      change in any law, rule, regulation or guideline regarding capital
      requirements for banks or bank holding companies, or any change in the
      interpretation or application thereof by any Governmental Authority
      charged with the administration thereof, or (ii) compliance by such
      Lender or its parent bank holding company with any guideline, request,
      or directive of any such entity regarding capital adequacy (whether or
      not having the force of law), has the effect of reducing the return on
      such Lender’s or such holding company’s capital as a consequence of such
      Lender’s Commitments hereunder to a level below that which such Lender
      or such holding company could have achieved but for such adoption,
      change, or compliance (taking into consideration such Lender’s or such
      holding company’s then existing policies with respect to capital
      adequacy and assuming the full utilization of such entity’s capital) by
      any amount deemed by such Lender to be material, then such Lender may
      notify Borrower and Agent thereof.  Following receipt of such notice,
      Borrower agrees to pay such Lender on demand the amount of such
      reduction of return of capital as and when such reduction is determined,
      payable within 90 days after presentation by such Lender of a statement
      in the amount and setting forth in reasonable detail such Lender’s
      calculation thereof and the assumptions upon which such calculation was
      based (which statement shall be deemed true and correct absent manifest
      error).  In determining such amount, such Lender may use any reasonable
      averaging and attribution methods.
    

    
        2.12  LIBOR Option.
    

    
      (a)  LIBOR Election.  So long as no Event of Default
      has occurred and is continuing, Borrower may, by notifying Agent prior
      to 1:00 p.m. (New York time) at least three (3) Business Days prior to
      the commencement of an Interest Period (the “LIBOR Deadline”),
      elect to exercise Borrower’s option (the “LIBOR Option”)
      to have interest on all of the Advances (other than Advances with
      respect to Swing Loans, Agent Advances and Overadvances) determined for
      such Interest Period by reference to the LIBOR Rate.  Notice of
      Borrower’s election of the LIBOR Option for any Interest Period shall be
      made by delivery by Borrower to Agent of a LIBOR Notice received by
      Agent before the LIBOR Deadline, or by telephonic notice to Agent by
      Borrower received by Agent before the LIBOR Deadline (to be confirmed by
      delivery to Agent of a LIBOR Notice received by Agent prior to 5:00 p.m.
      (New York time) on the same day).  Each LIBOR Notice shall be
      irrevocable and binding on Borrower.  Promptly upon its receipt of any
      LIBOR Notice, Agent shall provide a copy thereof to each of the
      Lenders.  Notwithstanding the foregoing, if Borrower has not exercised
      the LIBOR Option in accordance with this Section 2.12 prior
      to the LIBOR Deadline for an Interest Period, then interest on all of
      the Advances eligible to have interest determined by reference to the
      LIBOR Rate (including the Advances that were treated as LIBOR Rate Loans
      during the immediately preceding Interest Period) shall be determined
      for such Interest Period by reference to the LIBOR Rate unless Borrower
      has notified Lender prior to 1:00 p.m. (New York time) at least three
      (3) Business Days prior to the commencement of an Interest Period that
      it elects interest on such Advances to accrue by reference to the Base
      Rate.  At any time that an Event of Default has occurred and is
      continuing, Borrower no longer shall have the option to request that
      Advances bear interest determined by reference to the LIBOR Rate, and
      Lender shall have the right to convert the interest rate on all
      outstanding LIBOR Rate Loans to the rate then applicable to Base Rate
      Loans hereunder for the remainder of such Interest Period.
    

    
      -38-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
       (b)  Base Rate Loans in Absence of LIBOR Election
      Availability.  If Borrower is not entitled to exercise the LIBOR
      Option for such Interest Period, then interest on all of the Advances
      (including Advances that were treated as LIBOR Rate Loans during the
      immediately preceding Interest Period) shall be determined for such
      Interest Period by reference to the Base Rate.
    

    
      (c)  Special Provisions Applicable to LIBOR Rate.
    

    
         (i)  The LIBOR Rate may be adjusted by Agent with respect to any
      Lender on a prospective basis to take into account any additional or
      increased costs to such Lender of maintaining or obtaining any
      eurodollar deposits or increased costs, in each case, due to changes in
      applicable law occurring subsequent to the commencement of the then
      applicable Interest Period, including changes in tax laws (except
      changes of general applicability in corporate income tax laws) and
      changes in the reserve requirements imposed by the Board of Governors of
      the Federal Reserve System (or any successor), excluding the Reserve
      Percentage, which additional or increased costs would increase the cost
      of funding or maintaining loans bearing interest by reference to the
      LIBOR Rate.  In any such event, the affected Lender shall give Borrower
      and Agent notice of such a determination and adjustment and Agent
      promptly shall transmit the notice to each other Lender and, upon its
      receipt of the notice from the affected Lender, Borrower may, by notice
      to such affected Lender (A) require such Lender to furnish to Borrower a
      statement setting forth the basis for adjusting such LIBOR Rate and the
      method for determining the amount of such adjustment, or (B) repay the
      LIBOR Rate Loans with respect to which such adjustment is made.
    

    
      -39-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        (ii)  In the event that any change in market conditions or any law,
      regulation, treaty, or directive, or any change therein or in the
      interpretation of application thereof, shall at any time after the date
      hereof, in the reasonable opinion of any Lender, make it unlawful or
      impractical for such Lender to fund or maintain LIBOR Rate Loans or to
      continue such funding or maintaining, or to determine or charge interest
      rates by reference to the LIBOR Rate, such Lender shall give notice of
      such changed circumstances to Agent and Borrower, and Agent promptly
      shall transmit the notice to each other Lender and (A) in the case of
      any LIBOR Rate Loans of such Lender that are outstanding, the date
      specified in such Lender’s notice shall be deemed to be the last day of
      the Interest Period of such LIBOR Rate Loans, and interest upon the
      LIBOR Rate Loans of such Lender thereafter shall accrue interest at the
      rate then applicable to Base Rate Loans, and (B) Borrower shall not be
      entitled to elect the LIBOR Option until such Lender determines that it
      would no longer be unlawful or impractical to do so.
    

    
      (d)  No Requirement of Matched Funding.  Anything
      to the contrary contained herein notwithstanding, neither Agent, nor any
      Lender, nor any of their Participants, is required actually to acquire
      eurodollar deposits to fund or otherwise match fund any Advance as to
      which interest accrues by reference to the LIBOR Rate.
    

    
      3.  CONDITIONS; TERM OF AGREEMENT.
    

    
         3.1  Conditions Precedent to
      the Initial Extension of Credit.  The obligation of each Lender
      to make its initial extension of credit hereunder, is subject to the
      fulfillment, to the satisfaction of Agent and each Lender (the making of
      such initial extension of credit by a Lender being conclusively deemed
      to be its satisfaction or waiver of the following), of each of the
      following conditions precedent:
    

    
      (a)  Agent shall have received a UCC Filing Authorization Letter, duly
      executed by Borrower, together with appropriate financing statements
      duly filed in such office or offices as may be necessary or, in the
      opinion of Agent, desirable to perfect the Agent’s Liens in and to the
      Collateral, and Agent shall have received searches reflecting the filing
      of all such financing statements;
    

    
      (b)  Agent shall have received each of the following documents, in form
      and substance satisfactory to Agent, duly executed, and each such
      document shall be in full force and effect:
    

    
      (i)  the Cash Management Agreements,
    

    
      (ii)  the Closing Certificates,
    

    
      (iii)  the Control Agreements,
    

    
      (iv)  the Disbursement Letter for the initial Advance,
    

    
      (v)  the Fee Letter,
    

    
      (vi)  the Officer’s Certificates, and
    

    
      -40-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (vii)  the Sale and Servicing Agreement.
    

    
      (c)  Agent shall have received certificates from (i) the Secretary of
      Borrower and (ii) the Secretary of HTGC, (A) attesting to the
      resolutions of such Person’s Board of Directors authorizing its
      execution, delivery, and performance of this Agreement and the other
      Loan Documents to which such Person is a party, (B) authorizing specific
      officers of such Person to execute the same, and (C) attesting to the
      incumbency and signatures of such specific officers of such Person;
    

    
      (d)  Agent shall have received copies of Borrower’s and HTGC’s Governing
      Documents, as amended, modified, or supplemented to the Closing Date,
      certified by the Secretary of such Person or the Manager of such Person,
      as applicable;
    

    
      (e)  Agent shall have received certificates of status with respect to
      Borrower and HTGC, dated within 10 days of the Closing Date, such
      certificate to be issued by the appropriate officer of the jurisdiction
      of organization of such Person, which certificate shall indicate that
      such Person is in good standing in such jurisdiction;
    

    
      (f)  Agent shall have received certificates of status with respect to
      Borrower and HTGC, each dated within 30 days of the Closing Date, such
      certificates to be issued by the appropriate officer of the
      jurisdictions (other than the jurisdiction of organization of such
      Person) in which its failure to be duly qualified or licensed would
      constitute a Material Adverse Change, which certificates shall indicate
      that such Person is in good standing in such jurisdictions;
    

    
      (g)  Agent shall have received a certificate of insurance, together with
      the endorsements thereto, as are required by Section 6.8, the
      form and substance of which shall be satisfactory to Agent;
    

    
      (h)  Agent shall have received a certificate from the chief financial
      officer and chief executive officer of Borrower, certifying (i) as to
      the truth and accuracy of the representations and warranties of Borrower
      contained in Section 5 of this Agreement, (ii) the absence of any
      Defaults or Events of Default, and (iii) that after giving effect to the
      incurrence of Indebtedness under this Agreement and the other
      transactions contemplated by this Agreement, Borrower is Solvent;
    

    
      (i)  Agent shall have received an opinion or opinions of Borrower’s and
      HTGC’s counsel in form and substance satisfactory to Agent;
    

    
      (j)  Agent shall have received satisfactory evidence (including a
      certificate of the chief financial officer of HTGC and a certificate of
      the chief financial officer of Borrower) that all tax returns required
      to be filed by Borrower or HTGC have been timely filed and all taxes
      upon Borrower or HTGC or their properties, assets, income, and
      franchises (including Real Property taxes, sales taxes, and payroll
      taxes) have been paid prior to delinquency, except such taxes that are
      the subject of a Permitted Protest;
    

    
      (k)  Agent shall have completed its business, legal, and collateral due
      diligence, including a review of the legal structure of Borrower, HTGC
      and their Affiliates, a collateral audit and review of the books and
      records of Borrower and HTGC and any of their Affiliates with business
      operations similar to those of Borrower, a review of their collateral
      valuation methods, verification of each of such Person’s representations
      and warranties to the Lender Group, and verification of third-party
      service providers, in each case, the results of which shall be
      satisfactory to Agent;
    

    
      -41-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (l)  Agent shall have received completed reference checks with respect
      to HTCG, Borrower, Manual A. Henriquez, H. Scott Harvey, David M. Lund,
      Samir Bhaumik, Parag I. Shah, and Jessica Tong Baron, the results of
      which are satisfactory to Agent in its sole discretion;
    

    
      (m)  Agent shall have received Borrower’s Closing Date Business Plan;  
    

    
      (n)  Borrower shall pay all Lender Group Expenses incurred in connection
      with the transactions evidenced by this Agreement;
    

    
      (o)  with respect to each Eligible Note Receivable as of the making of
      the initial Advance, Agent or the Collateral Custodian (if one has been
      appointed) shall be in possession of all of the Required Asset Documents;
    

    
      (p)  Agent shall have received and approved Borrower’s Required
      Procedures, which Borrower’s Required Procedures shall be consistent
      with those previously represented to Agent and shall be acceptable to
      Agent in its sole discretion;
    

    
      (q)  Agent shall have received evidence satisfactory to Agent either
      that any Person having a Lien (except for Permitted Liens, if any) with
      respect to the assets of Borrower shall have released such Lien or that
      such Lien shall be automatically terminated upon the funding of the
      Advances to be made on the Closing Date;
    

    
      (r)  Borrower and HTGC shall have received all licenses, approvals or
      evidence of other actions required by any Governmental Authority in
      connection with the execution and delivery by Borrower or HTGC of the
      Loan Documents or with the consummation of the transactions contemplated
      thereby;
    

    
      (s)  Agent shall have received satisfactory evidence that as of the
      Closing Date, (i) Borrower has a sum of (A) Tangible Net Worth, plus
      (B) Subordinated Debt, of not less than the lesser of (I) the sum of the
      outstanding principal amounts of Borrower’s three largest Notes
      Receivable, and (II) $25,000,000, and (ii) HTGC has a sum of
      (A) Tangible Net Worth, plus (B) Subordinated Debt, of not
      less than $360,000,000;
    

    
      (t)  Agent’s counsel shall have received and reviewed all standard
      documentation evidencing, governing, securing and guaranteeing Notes
      Receivable, and been satisfied such documentation provides Borrower and
      Agent with appropriate rights and remedies to enforce any necessary
      collection actions with respect to such Notes Receivable;
    

    
      (u)  The initial Advance shall be not less than $7,500,000;
    

    
      (v)  the initial Funding Date shall be on or before September 5,
      2008; and
    

    
      -42-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (w)  all other documents and legal matters in connection with the
      transactions contemplated by this Agreement shall have been delivered,
      executed, or recorded and shall be in form and substance satisfactory to
      Agent.
    

    
         3.2  Conditions Subsequent to the
      Initial Extension of Credit.  The obligation of the Lender Group
      (or any member thereof) to continue to make Advances (or otherwise
      extend credit hereunder) is subject to the fulfillment, on or before the
      date applicable thereto, of each of the following conditions subsequent
      (any failure by Borrower to satisfy or cause the satisfaction of each of
      such conditions subsequent constituting an Event of Default):
    

    
      (a)  At Agent’s option, within ninety (90) days after the Closing Date,
      Borrower shall have begun the implementation of an electronic collateral
      reporting system and Agent shall have conducted an audit of Borrower’s
      reporting systems and internal controls, with the results of such audit
      being satisfactory to Agent.
    

    
      (b)  Within ninety (90) days after the Closing Date, Agent shall have
      received a Collateral Access Agreement with respect to the principal
      location(s) where HTGC and Borrower maintain the Books relating to the
      Notes Receivable and other Collateral (i.e., 400 Hamilton Avenue, Suite
      310, Palo Alto, California  94301); and
    

    
      (c)  Within sixty (60) days after the Closing Date, Agent shall have
      completed a post-closing audit and review of the Collateral, the results
      of which shall be satisfactory to Agent.
    

    
         3.3  Conditions Precedent to
      all Extensions of Credit.  The obligation of
      the Lender Group (or any member thereof) to make any Advances hereunder
      at any time (or to extend any other credit hereunder), including the
      initial Advance, shall be subject to the following conditions precedent:
    

    
      (a)  the representations and warranties contained in this Agreement and
      the other Loan Documents shall be true and correct in all material
      respects on and as of the date of such extension of credit, as though
      made on and as of such date (except to the extent that such
      representations and warranties relate solely to an earlier date);
    

    
      (b)  no Default or Event of Default shall have occurred and be
      continuing on the date of such extension of credit, nor shall either
      result from the making thereof;
    

    
      (c)  no injunction, writ, restraining order, or other order of any
      nature restricting or prohibiting, directly or indirectly, the extending
      of such Advance shall have been issued and remain in force by any
      Governmental Authority against Borrower, Agent, any Lender, or any of
      their respective Affiliates;
    

    
      (d)  no Material Adverse Change shall have occurred,
    

    
      (e)  on or before the day preceding the date of such Advance, Borrower
      shall have delivered to Agent or Collateral Custodian (if one has been
      appointed) pursuant to this Agreement and the Sale and Servicing
      Agreement, with respect to each Note Receivable to be acquired or funded
      with any portion of such Advance, the originals of each of the Required
      Asset Documents; and
    

    
      -43-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (f)  Agent shall have received a current Borrowing Base Certificate.
    

    
         3.4  Term.  This
      Agreement shall continue in full force and effect for a term commencing
      on the Closing Date and ending on the second anniversary of the Closing
      Date (the “Maturity Date”); provided, that so
      long as no Default or Event of Default has occurred and is then
      continuing, on or prior to the date that is six (6) months prior to the
      second anniversary of the Closing Date (the “Election Extension
      Deadline”), Borrower may elect to extend the Maturity Date for one
      (1) additional year (i.e. for a term ending on the third anniversary of
      the Closing Date), which extension shall become effective upon the
      receipt by Agent on or prior to the Election Extension Deadline of both
      (a) Borrower’s irrevocable written notice of such election and (b) the
      commitment extension fee payable under the Fee Letter in connection with
      such extension of the Maturity Date.  The foregoing notwithstanding, the
      Lender Group, upon the election of the Required Lenders, shall have the
      right to terminate its obligations under this Agreement immediately and
      without notice upon the occurrence and during the continuation of an
      Event of Default.
    

    
         3.5  Effect of Termination.  On
      the Maturity Date or earlier termination of this Agreement in accordance
      with its terms, all Obligations (including all Bank Product Obligations)
      immediately shall become due and payable without notice or demand
      (including providing cash collateral (in an amount determined by Agent
      as sufficient to satisfy the reasonably estimated credit exposure) to be
      held by Agent for the benefit of the Bank Product Providers with respect
      to the Bank Product Obligations).  No termination of this Agreement,
      however, shall relieve or discharge Borrower or its Subsidiaries, or
      HTGC, of their respective duties, Obligations, or covenants hereunder or
      under any other Loan Documents and the Agent’s Liens in the Collateral
      shall remain in effect until all Obligations have been paid in full and
      the Lender Group’s obligations to provide additional credit hereunder
      have been terminated.  When this Agreement has been terminated and all
      of the Obligations have been paid in full and the Lender Group’s
      obligations to provide additional credit under the Loan Documents have
      been terminated irrevocably, Agent will, at Borrower’s sole expense,
      execute and deliver, or authorize the filing of, any termination
      statements, lien releases, mortgage releases, re-assignments of
      trademarks, discharges of security interests, and other similar
      discharge or release documents (and, if applicable, in recordable form)
      as are reasonably necessary to release, as of record, the Agent’s Liens
      and all notices of security interests and liens previously filed by
      Agent with respect to the Obligations.  
    

    
         3.6  Early Termination by
      Borrower.  Borrower has the option, at any time upon ninety (90)
      days prior written notice to Agent, to terminate this Agreement by
      paying to Agent, for the benefit of the Lender Group, in cash, the
      Obligations (including providing cash collateral (in an amount
      determined by Agent as sufficient to satisfy the reasonably estimated
      credit exposure) to be held by Agent for the benefit of the Bank Product
      Providers with respect to the Bank Product Obligations), in full,
      together with any fees provided for in the Fee Letter.  If Borrower has
      sent a notice of termination pursuant to the provisions of this Section 3.6,
      then the Commitments shall terminate and Borrower shall be obligated to
      repay the Obligations (including providing cash collateral (in an amount
      determined by Agent as sufficient to satisfy the reasonably estimated
      credit exposure) to be held by Agent for the benefit of the Bank Product
      Providers with respect to the Bank Product Obligations), in full,
      together with any fees provided for in the Fee Letter, on the date set
      forth as the date of termination of this Agreement in such notice.  In
      the event of the termination of this Agreement and repayment of the
      Obligations at any time prior to the Maturity Date, for any other
      reason, including (a) termination upon the election of the Required
      Lenders to terminate after the occurrence and during the continuation of
      an Event of Default, (b) foreclosure by Agent or Lenders and sale of
      Collateral, (c) sale of the Collateral in any Insolvency Proceeding of
      Borrower, or (iv) restructure, reorganization, or compromise of the
      Obligations by the confirmation of a plan of reorganization or any other
      plan of compromise, restructure, or arrangement in any Insolvency
      Proceeding of Borrower, then, in view of the impracticability and
      extreme difficulty of ascertaining the actual amount of damages to the
      Lender Group or profits lost by the Lender Group as a result of such
      early termination, and by mutual agreement of the parties as to a
      reasonable estimation and calculation of the lost profits or damages of
      the Lender Group, Borrower shall pay to Agent any fees provided for in
      the Fee Letter.
    

    
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      4.  CREATION OF SECURITY INTEREST.
    

    
         4.1  Grant of Security Interest.  Borrower
      hereby grants to Agent, for the benefit of the Lender Group and the Bank
      Product Providers, a continuing security interest in all of Borrower’s
      right, title, and interest in all currently existing and hereafter
      acquired or arising Borrower Collateral in order to secure prompt
      repayment of any and all of the Obligations in accordance with the terms
      and conditions of the Loan Documents and in order to secure prompt
      performance by Borrower of each of its covenants and duties under the
      Loan Documents.  The Agent’s Liens in and to the Borrower Collateral
      shall attach to all Borrower Collateral without further act on the part
      of Agent or Borrower.  Anything contained in this Agreement or any other
      Loan Document to the contrary notwithstanding, except for Permitted
      Dispositions, Borrower and its Subsidiaries have no authority, express
      or implied, to dispose of any item or portion of the Collateral.
    

    
         4.2  Negotiable Collateral.  In
      the event that any Borrower Collateral, including proceeds, is evidenced
      by or consists of Negotiable Collateral other than Notes Receivable
      previously delivered to and being held by the Agent or a Collateral
      Custodian (if one has been appointed), and if and to the extent that
      Agent determines that perfection or priority of Agent’s security
      interest is dependent on or enhanced by possession, Borrower, promptly
      upon the request of Agent, shall endorse and deliver physical possession
      of such Negotiable Collateral and all agreements and documents related
      thereto to Agent.  All Notes Receivable shall be delivered to Agent or a
      Collateral Custodian (if one has been appointed) pursuant to this
      Agreement and the Sale and Servicing Agreement to hold for the benefit
      of Agent and Lenders, duly endorsed in blank or as follows on the back
      of the signature page thereof or on a separate allonge affixed thereto:
    

    
       “Pay to the Order of Wells Fargo Foothill, LLC, as Agent, without
      recourse
    

    
                          HERCULES
      FUNDING II LLC
    

    
                          By: ______________
    

    
                          Name:
    

    
                          Its: [Authorized Person].”
    

    
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         4.3  Collection of Accounts,
      General Intangibles, and Negotiable Collateral.  At any time
      after the occurrence and during the continuation of an Event of Default,
      Agent or Agent’s designee may (a) notify Account Debtors of Borrower and
      makers of Notes Receivable that the Accounts, Notes Receivable, chattel
      paper, or General Intangibles have been assigned to Agent or that Agent
      has a security interest therein, (b) cause a replacement servicer to
      take possession of, and collect, Borrower’s Accounts, or (c) collect
      Borrower’s Accounts, Notes Receivable, chattel paper, or General
      Intangibles directly and charge the collection costs and expenses to the
      Loan Account.  Borrower agrees that it will hold in trust for the Lender
      Group, as the Lender Group’s trustee, any of its or its Subsidiaries’
      Collections that it receives and immediately will deliver such
      Collections to Servicer pursuant to the Sale and Servicing Agreement or,
      at the request of Agent, to Agent or a Cash Management Bank, in each
      case in their original form as received by Borrower or its Subsidiaries.
    

    
         4.4  Filing of Financing
      Statements; Commercial Tort Claims; Delivery of Additional Documentation
      Required.  
    

    
      (a)  Borrower authorizes Agent to file any financing statement necessary
      or desirable to effectuate the transactions contemplated by the Loan
      Documents, and any continuation statement or amendment with respect
      thereto, in any appropriate filing office without the signature of
      Borrower where permitted by applicable law. Borrower hereby ratifies the
      filing of any financing statement filed without the signature of
      Borrower prior to the date hereof.  
    

    
      (b)  If Borrower or its Subsidiaries acquire any commercial tort claims
      after the date hereof, Borrower shall promptly (but in any event within
      three (3) Business Days after such acquisition) deliver to Agent a
      written description of such commercial tort claim and shall deliver a
      written agreement, in form and substance satisfactory to Agent, pursuant
      to which Borrower or its Subsidiary, as applicable, shall grant a
      perfected security interest in all of its right, title and interest in
      and to such commercial tort claim to Agent, as security for the
      Obligations (a “Commercial Tort Claim Assignment”).  
    

    
      (c)  At any time upon the request of Agent, Borrower shall execute or
      deliver to Agent, and shall cause its Subsidiaries to execute or deliver
      to Agent, any and all fixture filings, security agreements, pledges,
      assignments, Commercial Tort Claim Assignments, endorsements of
      certificates of title, and all other documents (collectively, the “Additional
      Documents”) that Agent may request in its Permitted Discretion, in
      form and substance satisfactory to Agent, to create, perfect, and
      continue perfected or to better perfect the Agent’s Liens in the assets
      of Borrower and its Subsidiaries (whether now owned or hereafter arising
      or acquired, tangible or intangible, real or personal), to create and
      perfect Liens in favor of Agent in any owned Real Property acquired
      after the Closing Date, and in order to fully consummate all of the
      transactions contemplated hereby and under the other Loan Documents.  To
      the maximum extent permitted by applicable law, Borrower authorizes
      Agent to execute any such Additional Documents in Borrower’s name and
      authorizes Agent to file such executed Additional Documents in any
      appropriate filing office.  In addition, on such periodic basis as Agent
      shall require, Borrower shall (i) provide Agent with a report of all new
      material patentable, copyrightable, or trademarkable materials acquired
      or generated by Borrower or its Subsidiaries during the prior period,
      (ii) cause all material patents, copyrights, and trademarks acquired or
      generated by Borrower or its Subsidiaries that are not already the
      subject of a registration with the appropriate filing office (or an
      application therefor diligently prosecuted) to be registered with such
      appropriate filing office in a manner sufficient to impart constructive
      notice of Borrower’s or the applicable Subsidiary’s ownership thereof,
      and (iii) cause to be prepared, executed, and delivered to Agent
      supplemental schedules to the applicable Loan Documents to identify such
      patents, copyrights, and trademarks as being subject to the security
      interests created thereunder; provided, however, that
      neither Borrower nor any of its Subsidiaries shall register with the
      U.S. Copyright Office any unregistered copyrights (whether in existence
      on the Closing Date or thereafter acquired, arising, or developed)
      unless (i) the Borrower provides Agent with written notice of its intent
      to register such copyrights not less than 30 days prior to the date of
      the proposed registration, and (ii) prior to such registration, the
      applicable Person executes and delivers to Agent a copyright security
      agreement in form and substance satisfactory to Agent, supplemental
      schedules to any existing copyright security agreement, or such other
      documentation as Agent reasonably deems necessary in order to perfect
      and continue perfected Agent’s Liens on such copyrights following such
      registration.
    

    
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      (d)  Borrower hereby assigns to Agent any and all rights of Borrower to
      access any and all storage facilities where any Collateral or
      information relating to Collateral may be stored and Borrower hereby
      authorizes Agent, at any time after the occurrence and during the
      continuation of an Event of Default, to enter upon any such storage
      facilities and remove any contents thereof in connection with Agent’s
      exercise of its remedies hereunder.
    

    
         4.5  Power of Attorney.  Borrower
      hereby irrevocably makes, constitutes, and appoints Agent (and any of
      Agent’s officers, employees, or agents designated by Agent) as
      Borrower’s true and lawful attorney, with power to (a) if Borrower
      refuses to, or fails timely to execute and deliver any of the documents
      described in Section 4.4, sign the name of Borrower on any of the
      documents described in Section 4.4, (b) at any time that an Event
      of Default has occurred and is continuing, sign Borrower’s name on any
      invoice or bill of lading relating to the Collateral, drafts against
      Account Debtors, or notices to Account Debtors, (c) send requests or
      make telephone inquiries for verification of Borrower’s or its
      Subsidiaries’ Accounts or Notes Receivable, (d) endorse Borrower’s name
      on any of its payment items (including all of its Collections) that may
      come into the Lender Group’s possession, (e) at any time that an Event
      of Default has occurred and is continuing, make, settle, and adjust all
      claims under Borrower’s policies of insurance and make all
      determinations and decisions with respect to such policies of insurance,
      and (f) at any time that an Event of Default has occurred and is
      continuing, settle and adjust disputes and claims respecting Borrower’s
      or its Subsidiaries’ Accounts, Notes Receivable, chattel paper, or
      General Intangibles directly with Account Debtors or makers of Notes
      Receivable, for amounts and upon terms that Agent determines to be
      reasonable, in Agent’s Permitted Discretion, and Agent may cause to be
      executed and delivered any documents and releases that Agent determines
      to be necessary.  The appointment of Agent as Borrower’s attorney, and
      each and every one of its rights and powers, being coupled with an
      interest, is irrevocable until all of the Obligations have been fully
      and finally repaid and performed and the Lender Group’s obligations to
      extend credit hereunder are terminated.
    

    
         4.6  Right to Inspect and Verify.  Agent
      (through any of its officers, employees, or agents) shall have the
      right, from time to time hereafter (i) to inspect the Books and make
      copies or abstracts thereof, (ii) to communicate directly with any and
      all Account Debtors and makers of Notes Receivable to verify the
      existence and terms thereof (provided, that so long as no Event of
      Default has occurred and is continuing, Agent shall notify Borrower
      prior to communicating directly with an Account Debtor or maker of Notes
      Receivable), and (iii) to check, test, and appraise the Collateral, or
      any portion thereof, in order to verify Borrower’s and its Subsidiaries’
      financial condition or the amount, quality, value, condition of, or any
      other matter relating to, the Collateral; and Borrower shall permit any
      designated representative of Agent to visit and inspect any of the
      properties of the Borrower to inspect and to discuss its finances and
      properties and Collateral, upon reasonable notice and at such reasonable
      times during normal business hours.
    

    
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         4.7  Control Agreements.  Borrower
      agrees that it will and will cause its Subsidiaries to take any or all
      reasonable steps in order for Agent to obtain control in accordance with
      Sections 8-106, 9-104, 9-105, 9-106, and 9-107 of the Code with respect
      to all of its or their Securities Accounts, Deposit Accounts, electronic
      chattel paper, Investment Property, and letter-of-credit rights.  Upon
      the occurrence and during the continuance of an Event of Default, Agent
      may notify any bank or securities intermediary to liquidate the
      applicable Deposit Account or Securities Account or any related
      Investment Property maintained or held thereby and remit the proceeds
      thereof to Agent’s Account.
    

    
         4.8  Servicing of Notes Receivable.  Until
      such time as Agent shall notify the Borrower of the revocation of such
      right after the occurrence and during the continuation of an Event of
      Default, the Borrower (a) shall, at its own expense (including through
      the application of available funds pursuant to Section 2.3(b)),
      cause the Servicer to service all of the Notes Receivable, including,
      without limitation, (i) the billing, posting and maintaining complete
      records applicable thereto, and (ii) taking of such action with respect
      to the Notes Receivable as the Borrower may deem advisable, and (b) may
      grant, in the ordinary course of business, to any maker of a Note
      Receivable, any adjustment to which such maker may be lawfully entitled,
      and may take such other actions relating to the settling of any such
      maker’s claims as may be commercially reasonable, but in each case in
      accordance with Borrower’s Required Procedures.  Agent may, at its
      option, at any time or from time to time, after the occurrence and
      during the continuation of an Event of Default hereunder, revoke the
      collection and servicing rights given to Borrower herein by giving
      notice to Borrower in accordance with the terms of the Sale and
      Servicing Agreement.
    

    
         4.9  Release of Notes Receivable.
    

    
             (a)  When a Note Receivable that is in the possession of Agent or
      the Collateral Custodian is repaid in its entirety, Agent shall return
      or shall authorize the Collateral Custodian to return such Note
      Receivable to Borrower to facilitate its payment and Agent shall release
      Agent’s Liens in such Note Receivable promptly upon receipt of the final
      payment relating to such Note Receivable.
    

    
             (b)  When a Note Receivable is sold by Borrower in accordance
      with the terms of this Agreement, Agent shall release Agent’s Liens in
      such Note Receivable and if such Note Receivable is in the possession of
      Agent or the Collateral Custodian, Agent shall transfer or shall
      authorize the Collateral Custodian to transfer such Note Receivable to
      the purchaser thereof or as otherwise directed by such purchaser against
      payment of the agreed amount therefor.
    

    
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             (c)  In the event Borrower’s collateral assignment to Agent of
      any mortgage and loan documents relating to a Note Receivable has been
      recorded and such Note Receivable is (i) repaid in its entirety, (ii)
      sold by Borrower in accordance with the terms of this Agreement or (iii)
      in default and Borrower is commencing foreclosure proceedings against
      the Note Receivable Collateral securing such Note Receivable, then Agent
      shall, at Borrower’s sole expense, execute a reassignment or release of
      such mortgage and loan documents for the benefit of Borrower on forms
      prepared by Borrower and reasonably acceptable to Agent.
    

    
      5.  REPRESENTATIONS AND WARRANTIES.
    

    
      In order to induce the Lender Group to enter into this Agreement,
      Borrower makes the following representations and warranties to the
      Lender Group which shall be true, correct, and complete, in all material
      respects, as of the date hereof, and shall be true, correct, and
      complete, in all material respects, as of the Closing Date, and as of
      the date of the making of each Advance (or other extension of credit)
      made thereafter, as though made on and as of the date of such Advance
      (or other extension of credit) (except to the extent that such
      representations and warranties relate solely to an earlier date) and
      such representations and warranties shall survive the execution and
      delivery of this Agreement:
    

    
         5.1  No Encumbrances.  Borrower
      and its Subsidiaries have good and indefeasible title to, or a valid
      leasehold interest in, their personal property assets and good and
      marketable title to, or a valid leasehold interest in, their Real
      Property, in each case, free and clear of Liens except for Permitted
      Liens.
    

    
         5.2  Eligible Notes Receivables.  As
      to each Note Receivable that is identified by Borrower as an Eligible
      Note Receivable in the most recent Borrowing Base Certificate submitted
      to Agent, as of the date of such certificate: (a) such Note Receivable
      is a bona fide existing payment obligation of the maker of such Note
      Receivable created in the ordinary course of Borrower’s business, (b)
      such Note Receivable has transferred by sale or contribution to, and is
      now owed to Borrower without any known defenses, disputes, offsets,
      counterclaims, or rights of cancellation, (c) such Note Receivable is
      not excluded as ineligible by virtue of one or more of the excluding
      criteria set forth in the definition of Eligible Notes Receivable, (d)
      the original amount of, the unpaid balance of, and the amount and dates
      of payments on such Note Receivable shown on the Books of Borrower and
      in the schedules of same delivered to Agent are true and correct, (e)
      Borrower has no knowledge of any fact which is reasonably likely to
      impair the validity or collectability of such Note Receivable, (f) such
      Note Receivable is subject to a first-priority or second-priority
      security interest, as applicable, in favor of Agent, (g) such Note
      Receivable and all collateral therefor complies with all applicable
      laws, and (h) since delivery to Agent, such Note Receivable has not been
      amended nor any requirements relating thereto waived without the prior
      written consent of Agent, other than an extension or modification in
      accordance with Borrower’s Required Procedures then in effect.
    

    
         5.3  Equipment.  All
      of the Equipment of Borrower and its Subsidiaries is used or held for
      use in their business and is fit for such purposes.
    

    
         5.4  Location of Collateral.  The
      Borrower Collateral (other than the Collateral in the possession of
      Agent or Collateral Custodian) is not stored with a bailee,
      warehouseman, or similar party and is located only at, or in-transit
      between, the locations identified on Schedule 5.4 (as such
      Schedule may be updated pursuant to Section 6.9); provided,
      that loan files that do not include original promissory notes, Lien
      instruments, or assignments of Lien instruments may be stored, from time
      to time, with Servicer or in a public warehouse, access to which has
      been assigned by Borrower to Agent.
    

    
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         5.5  Records.  Borrower keeps
      complete, correct and accurate records of the Notes Receivable owned by
      Borrower and all payments thereon.
    

    
         5.6  State of Incorporation;
      Location of Chief Executive Office; Organizational Identification
      Number; Commercial Tort Claims.  
    

    
      (a)  The jurisdiction of organization of HTGC, Borrower and each of
      their respective Subsidiaries is set forth on Schedule 5.6(a).
    

    
      (b)  The chief executive office of HTGC, Borrower and each of their
      respective Subsidiaries is located at the address indicated on Schedule
      5.6(b) (as such Schedule may be updated pursuant to Section 6.9).
    

    
      (c)  The organizational identification numbers and federal employer
      identification numbers, if any, of HTGC, Borrower and each of their
      respective Subsidiaries are identified on Schedule 5.6(c).
    

    
      (d)  As of the Closing Date, Borrower and its Subsidiaries do not hold
      any commercial tort claims, except as set forth on Schedule 5.6(d).
    

    
         5.7  Due Organization and
      Qualification; Subsidiaries.
    

    
      (a)  Borrower is duly organized and existing and in good standing under
      the laws of the jurisdiction of its organization and qualified to do
      business in any state where the failure to be so qualified reasonably
      could be expected to have a Material Adverse Change.  
    

    
      (b)  Set forth on Schedule 5.7(b), is a complete and
      accurate description of the authorized capital Stock of each of HTGC and
      Borrower, by class, and, as of the Closing Date, a description of the
      interests of each such class that are issued and outstanding.  Other
      than as described on Schedule 5.7(b), there are no subscriptions,
      options, warrants, or calls relating to any capital Stock of Borrower,
      including any right of conversion or exchange under any outstanding
      security or other instrument.  Borrower is not subject to any obligation
      (contingent or otherwise) to repurchase or otherwise acquire or retire
      any shares of its capital Stock or any security convertible into or
      exchangeable for any of its capital Stock.
    

    
      (c)  Set forth on Schedule 5.7(c), is a complete and
      accurate list of HTGC’s and Borrower’s direct and indirect Subsidiaries,
      showing: (i) the jurisdiction of their organization, (ii) the number of
      shares of each class of common and preferred Stock authorized for each
      of such Subsidiaries, and (iii) the number and the percentage of the
      outstanding shares of each such class owned directly or indirectly by
      HTGC or Borrower.  All of the outstanding capital Stock of each such
      Subsidiary has been validly issued and is fully paid and non-assessable.
    

    
      -50-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (d)  Except as set forth on Schedule 5.7(c), there are
      no subscriptions, options, warrants, or calls relating to any shares of
      capital Stock of a Subsidiary of Borrower, including any right of
      conversion or exchange under any outstanding security or other
      instrument.  Neither Borrower nor any of its Subsidiaries is subject to
      any obligation (contingent or otherwise) to repurchase or otherwise
      acquire or retire any shares of capital Stock of a Subsidiary of such
      Person or any security convertible into or exchangeable for any such
      capital Stock.
    

    
         5.8  Due Authorization; No
      Conflict.  
    

    
      (a)  The execution, delivery, and performance by Borrower of this
      Agreement and the other Loan Documents to which it is a party have been
      duly authorized by all necessary action on the part of Borrower.
    

    
      (b)  The execution, delivery, and performance by Borrower of this
      Agreement and the other Loan Documents to which it is a party do not and
      will not (i) violate any provision of federal, state, or local law or
      regulation applicable to Borrower, the Governing Documents of Borrower,
      or any order, judgment, or decree of any court or other Governmental
      Authority binding on Borrower, (ii) conflict with, result in a breach
      of, or constitute (with due notice or lapse of time or both) a default
      under any material contractual obligation of Borrower, (iii) result in
      or require the creation or imposition of any Lien of any nature
      whatsoever upon any properties or assets of Borrower, other than under
      this Agreement and the other Loan Documents, or (iv) require any
      approval of the holders of Borrower’s Stock or any approval or consent
      of any Person under any material contractual obligation of Borrower,
      other than consents or approvals that have been obtained and that are
      still in force and effect.
    

    
      (c)  Other than the filing of financing statements, the execution,
      delivery, and performance by Borrower of this Agreement and the other
      Loan Documents to which Borrower is a party do not and will not require
      any registration with, consent, or approval of, or notice to, or other
      action with or by, any Governmental Authority or other Person, other
      than consents or approvals that have been obtained and that are still in
      force and effect.
    

    
      (d)  This Agreement and the other Loan Documents to which Borrower is a
      party, and all other documents contemplated hereby and thereby, when
      executed and delivered by Borrower will be the legally valid and binding
      obligations of Borrower, enforceable against Borrower in accordance with
      their respective terms, except as enforcement may be limited by
      equitable principles or by bankruptcy, insolvency, reorganization,
      moratorium, or similar laws relating to or limiting creditors’ rights
      generally.
    

    
      (e)  The Agent’s Liens are validly created, perfected, and first
      priority Liens, subject only to Permitted Liens.
    

    
         5.9  Litigation.  Other than
      those matters disclosed on Schedule 5.9, there are no actions,
      suits, or proceedings pending or, to the best knowledge of Borrower,
      threatened, against Borrower, any of its Subsidiaries, or HTGC.
    

    
        5.10  No Material Adverse Change.  All
      financial statements relating to HTGC, Borrower and their respective
      Subsidiaries that have been delivered by HTGC or Borrower to the Lender
      Group have been prepared in accordance with GAAP (except, in the case of
      unaudited financial statements, for the lack of footnotes and being
      subject to year-end audit adjustments) and present fairly in all
      material respects, the financial condition of HTGC, Borrower, and their
      respective Subsidiaries as of the date thereof and results of operations
      for the period then ended.  There has not been a Material Adverse Change
      with respect to HTGC, Borrower or their respective Subsidiaries since
      the date of the latest financial statements submitted to the Lender
      Group on or before the Closing Date.
    

    
      -51-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        5.11  Fraudulent Transfer.
    

    
      (a)  Each of Borrower and each of its Subsidiaries is Solvent.
    

    
      (b)  No transfer of property is being made by Borrower or its
      Subsidiaries and no obligation is being incurred by Borrower or its
      Subsidiaries in connection with the transactions contemplated by this
      Agreement or the other Loan Documents with the intent to hinder, delay,
      or defraud either present or future creditors of Borrower or its
      Subsidiaries.
    

    
        5.12  Employee Benefits.  None
      of Borrower, any of its Subsidiaries, or any of their ERISA Affiliates
      maintains or contributes to any Benefit Plan.
    

    
        5.13  Environmental Condition.  Except
      as set forth on Schedule 5.13, (a) to Borrower’s knowledge, none
      of Borrower’s or its Subsidiaries’ properties or assets has ever been
      used by Borrower, its Subsidiaries or by previous owners or operators in
      the disposal of, or to produce, store, handle, treat, release, or
      transport, any Hazardous Materials, where such use, production, storage,
      handling, treatment, release or transport was in violation, in any
      material respect, of any applicable Environmental Law, (b) to Borrower’s
      knowledge, none of Borrower’s or its Subsidiaries’ properties or assets
      has ever been designated or identified in any manner pursuant to any
      environmental protection statute as a Hazardous Materials disposal site,
      (c) neither Borrower nor any of its Subsidiaries has received notice
      that a Lien arising under any Environmental Law has attached to any
      revenues or to any Real Property owned or operated by Borrower or its
      Subsidiaries, and (d) neither Borrower nor its Subsidiaries has received
      a summons, citation, notice, or directive from the United States
      Environmental Protection Agency or any other federal or state
      governmental agency concerning any action or omission by Borrower or its
      Subsidiaries resulting in the releasing or disposing of Hazardous
      Materials into the environment.
    

    
        5.14  Brokerage Fees.  Neither
      Borrower nor any of its Affiliates has utilized the services of any
      broker or finder in connection with Borrower’s obtaining financing from
      the Lender Group under this Agreement, and any brokerage commission or
      finders fee payable in connection herewith shall be the sole
      responsibility of Borrower or its Affiliates.
    

    
        5.15  Intellectual Property.  Borrower
      and its Subsidiaries own, or hold licenses in, all trademarks, trade
      names, copyrights, patents, patent rights, and licenses that are
      necessary to the conduct of its business as currently conducted, and
      attached hereto as Schedule 5.15 (as updated from time to time)
      is a true, correct, and complete listing of all material patents, patent
      applications, trademarks, trademark applications, copyrights, and
      copyright registrations as to which Borrower or one of its Subsidiaries
      is the owner or is an exclusive licensee, other than shrink wrap and
      other similar licenses generally available to the public.
    

    
      -52-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        5.16  Leases.  Borrower and
      its Subsidiaries enjoy peaceful and undisturbed possession under all
      leases material to their business and to which they are parties or under
      which they are operating, and all of such leases are valid and
      subsisting and no material default by Borrower or its Subsidiaries
      exists under any of them.
    

    
        5.17  Deposit Accounts and Securities
      Accounts.  Set forth on Schedule 5.17 is a
      listing of all of Borrower’s and its Subsidiaries’ Deposit Accounts and,
      Securities Accounts, including, with respect to each bank or securities
      intermediary (a) the name and address of such Person, and (b) the
      account numbers of the Deposit Accounts or Securities Accounts
      maintained with such Person.
    

    
        5.18  Complete Disclosure.  All
      factual information (taken as a whole) furnished by or on behalf of
      HTGC, Borrower or their respective Subsidiaries in writing to Agent or
      any Lender (including all information contained in the Schedules hereto
      or in the other Loan Documents) for purposes of or in connection with
      this Agreement, the other Loan Documents, or any transaction
      contemplated herein or therein is, and all other such factual
      information (taken as a whole) hereafter furnished by or on behalf of
      HTGC, Borrower or their respective in writing to Agent or any Lender
      will be, true and accurate, in all material respects, on the date as of
      which such information is dated or certified and not incomplete by
      omitting to state any fact necessary to make such information (taken as
      a whole) not misleading in any material respect at such time in light of
      the circumstances under which such information was provided.  On the
      Closing Date, the Closing Date Business Plan represents, and as of the
      date on which any other Projections are delivered to Agent, such
      additional Projections represent Borrower’s good faith estimate of its
      and its Subsidiaries’ future performance for the periods covered thereby
      based upon reasonable assumptions when made; provided, however,
      that the parties acknowledge that the Projections are merely estimates
      and that there is no guarantee that Borrower will achieve the results
      forecast in the Projections.
    

    
        5.19  Indebtedness.  Set
      forth on Schedule 5.19 is a true and complete list of all
      Indebtedness of Borrower and its Subsidiaries outstanding immediately
      prior to the Closing Date that is to remain outstanding after the
      Closing Date and such Schedule accurately reflects the aggregate
      principal amount of such Indebtedness and describes the principal terms
      thereof.
    

    
        5.20  Compliance.  The standard
      forms and documents evidencing and executed in connection with Notes
      Receivable and all actions and transactions by Borrower in connection
      therewith comply in all material respects with all applicable
      laws.  Such standard forms and documents are commensurate with forms and
      documentation used by prudent lenders in the same or similar
      circumstances as Borrower, and, without limiting the foregoing, are
      sufficient to create valid, binding and enforceable obligations of each
      Account Debtor named therein.
    

    
        5.21  Servicing.  Borrower has
      entered into the Sale and Servicing Agreement, pursuant to which
      Borrower has engaged HGTC, as the initial Servicer and as Borrower’s
      agent, to monitor, manage, enforce and collect the Notes Receivables and
      disburse Collections in respect thereof as provided by the Sale and
      Servicing Agreement, subject to this Agreement.  HTGC has, and any
      replacement Servicer proposed by Borrower will have, the requisite
      knowledge, experience, expertise and capacity to service the Notes
      Receivables.
    

    
      -53-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        5.22  Permits, Licenses, Etc..  Each
      of Borrower and HTGC has, and is in compliance in all material respects
      with, all permits, licenses, authorizations, approvals, entitlements and
      accreditations required for such Person lawfully to own, lease, manage
      or operate, or to acquire, each business and the Real Property currently
      owned, leased, managed or operated, or to be acquired, by such Person,
      except for such permits, licenses, authorizations, approvals,
      entitlements and accreditations the absence of which could not
      reasonably be expected to result in a Material Adverse Change.  To
      Borrower’s knowledge, no condition exists or event has occurred which,
      in itself or with the giving of notice or lapse of time or both, would
      result in the suspension, revocation, impairment, forfeiture or
      non-renewal of any such permit, license, authorization, approval,
      entitlement or accreditation, the loss of which could reasonably be
      expected to result in a Material Adverse Change, and, to Borrower’s
      knowledge, there is no claim that any thereof is not in full force and
      effect.  Schedule 5.23 lists all of the licenses,
      franchises, approvals or consents of any Governmental Authority or other
      Person that is required for Borrower to conduct its business as
      currently conducted or proposed to be conducted except for such
      licenses, franchises, approvals, or consents the absence of which could
      not reasonably be expected to result in a Material Adverse Change.
    

    
        5.23  Margin Stock.  Borrower
      is not and will not be engaged in the business of extending credit for
      the purpose of purchasing or carrying margin stock (within the meaning
      of Regulations T, U or X of the Board of Governors of the Federal
      Reserve System), and no proceeds of any Advance will be used to purchase
      or carry any margin stock or to extend credit to others for the purpose
      of purchasing or carrying any margin stock.
    

    
        5.24  Holding Company and Investment
      Company Acts.  Borrower is not an “investment company” or
      “promoter” of, or “principal underwriter” of or for, an “investment
      company”, as such terms are defined in the Investment Company Act of
      1940, as amended.
    

    
      6.  AFFIRMATIVE COVENANTS.
    

    
      Borrower covenants and agrees that, until termination of all of the
      Commitments and payment in full of the Obligations, Borrower shall and
      shall cause each of its Subsidiaries to do all of the following:
    

    
         6.1  Accounting System.  Maintain
      a system of accounting that enables Servicer to produce financial
      statements in accordance with GAAP and maintain records pertaining to
      the Collateral that contain information as from time to time reasonably
      may be requested by Agent.  Borrower also shall keep a reporting system
      that shows all additions, fees, payments, claims, and write-downs with
      respect to the Notes Receivable.
    

    
         6.2  Collateral Reporting.  Provide
      or cause Servicer to provide Agent (and if so requested by Agent, with
      copies for each Lender and Backup Servicer) with the following documents
      at the following times in form satisfactory to Agent:
    

    
    	
           
        	
           
        
	
          Daily
        	
          (a) notice of all claims, offsets, or disputes asserted by Account
          Debtors with respect to any of Borrower’s Notes Receivables;
        
	
          
            Date of each
          

          
            Advance and at
          

          
            least monthly (not
          

          
            later than the 10th
          

          
            day of each month)
          

        	
          (b) a Borrowing Base Certificate which includes (i) a detailed
          calculation of the Borrowing Base as of the date of the requested
          Advance, and (ii) detail regarding Notes Receivables that are not
          Eligible Notes Receivables;
        
	
          
            Monthly (not later
          

          
            than the 10th day of
          

          
            each month),
          

          
            calculated or
          

          
            determined as of
          

          
            the last day of the
          

          
            preceding month
          

        	
          (c) a detailed aging, by total, of the Notes Receivables of
          Borrower, together with a reconciliation to the detailed calculation
          of the Borrowing Base most recently provided to Agent,

          
             
          

          
            (d) Collateral reports specifying (i) the current unpaid principal
            balance of each Note Receivable, (ii) current committed amount
            with respect to each Note Receivable, (iii) current payment status
            of each Note Receivable, and (iv) brief description of collateral
            for each Note Receivable, with additional detail showing additions
            to and deletions from the Collateral,
          

          
             
          

          
            (e) a summary aging by Account Debtor of all Notes Receivable of
            Borrower, including delinquency and past-due reports and
            indication of any litigation or foreclosure action,
          

          
             
          

          
            (f) a summary report of categories of non-Eligible Notes
            Receivable for the month most recently ended,
          

          
             
          

          
            (g) Borrower’s credit watch list,
          

        
	
          
            Upon request by
          

          
            Agent
          

        	
          (h) a summary aging, by vendor, of HTGC’s and its Subsidiaries’
          accounts payable and any book overdraft, and

          
             
          

          
            (i) such other reports as to the Collateral, or the financial
            condition of Borrower and its Subsidiaries, as Agent may request.
          

        

    

    
      -54-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      In connection with the foregoing reports, (i) Borrower shall maintain
      and utilize accounting and reporting systems reasonably acceptable to
      Agent, (ii) if requested by Agent, Borrower agrees to cooperate fully
      with Agent to facilitate and implement a system of electronic collateral
      reporting in order to provide electronic reporting of each of the items
      set forth above, (iii) if requested by Agent, Borrower shall use Agent’s
      electronic reporting system for all reporting of the foregoing
      information to Agent, and (iv) to the extent required by Agent, an
      Authorized Person or other representative acceptable to Agent will meet
      with Agent from time to time as requested by Agent to review and discuss
      all Notes Receivable then owned by Borrower.
    

    
         6.3  Financial Statements,
      Reports, Certificates.  Deliver to Agent, with copies to each
      Lender:
    

    
      (a)  as soon as available, but in any event within thirty (30) days
      after the end of each fiscal month of Borrower,
    

    
      (i)  an unaudited consolidated balance sheet, income statement and
      statement of cash flow (if applicable) covering such Person’s and its
      Subsidiaries’ operations during such period and the year-to-date period
      ending thereon, in each case setting forth in comparative form the
      figures for the corresponding periods in the prior year and the figures
      contained in the Closing Date Business Plan, in form acceptable to
      Agent, and
    

    
      -55-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (ii)  a Compliance Certificate demonstrating in reasonable detail
      (A) Borrower’s compliance at the end of such period with the applicable
      financial and portfolio covenants contained in Sections 7.16 and 7.17
      that are measured on a monthly basis, and (B) HTGC’s compliance at the
      end of such period with the minimum portfolio funding liquidity covenant
      contained in Sections 7.16(f);
    

    
      (b)  as soon as available, but in any event within forty-five (45) days
      after the end of each fiscal quarter of Borrower and HTGC,
    

    
      (i)  an unaudited consolidated and consolidating balance sheet, income
      statement and statement of cash flow covering HTCG’s and its
      Subsidiaries’ operations during such period and the year-to-date period
      ending thereon, in each case setting forth in comparative form the
      figures for the corresponding periods in the prior year and the figures
      contained in the Closing Date Business Plan, in form acceptable to
      Agent, and
    

    
      (ii)  a Compliance Certificate demonstrating in reasonable detail
      Borrower’s and HTGC’s compliance at the end of such period with the
      applicable financial and portfolio covenants contained in Sections
      7.16 and 7.17 that are measured on a quarterly basis;
    

    
      (c)  as soon as available, but in any event within ninety (90) days
      after the end of each fiscal year of Borrower and HTGC,
    

    
      (i)  consolidated financial statements of HTGC and its Subsidiaries for
      such fiscal year, audited by Ernst & Young LLP or other independent
      certified public accountants reasonably acceptable to Agent and
      certified, without any qualifications (including any (A) “going concern”
      or like qualification or exception, (B) qualification or exception as to
      the scope of such audit, or (C) qualification which relates to the
      treatment or classification of any item and which, as a condition to the
      removal of such qualification, would require an adjustment to such item,
      the effect of which would be to cause any noncompliance with the
      provisions of Sections 7.16 or 7.17), by such accountants
      to have been prepared in accordance with GAAP (such audited financial
      statements to include a balance sheet, income statement, and statement
      of cash flow and, if prepared, such accountants’ letter to management),
    

    
      (ii)  a certificate of such accountants addressed to Agent and the
      Lenders stating that such accountants do not have knowledge of the
      existence of any Default or Event of Default under Sections 7.16
      or 7.17,
    

    
      (iii)  consolidating financial statements of HTGC and its Subsidiaries
      for such fiscal year, prepared by HTGC based on its audited consolidated
      financial statements for such year, in form acceptable to Agent, and
    

    
      -56-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (iv)  a Compliance Certificate demonstrating in reasonable detail
      Borrower’s and HTGC’s compliance at the end of such period with the
      applicable financial and portfolio covenants contained in Sections
      7.16 and 7.17;
    

    
      (d)  as soon as available, but in any event not less than thirty (30)
      days prior to the commencement of each fiscal year of Borrower and HTGC,
      copies of Projections for Borrower and HTGC (including income statement,
      balance sheet and statement of cash flows, in form and substance
      (including as to scope and underlying assumptions) satisfactory to
      Agent, in its Permitted Discretion, for the forthcoming fiscal year,
      month-by-month, certified by the chief financial officer of Borrower and
      the chief financial officer of HTGC, as applicable, as being such
      officer’s good faith estimate of the financial performance of Borrower
      and HTGC during the period covered thereby;
    

    
      (e)  if and when filed by Borrower or HTGC;
    

    
      (i)  Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K
      current reports,
    

    
      (ii)  any other filings made by Borrower or HTGC with the SEC,
    

    
      (iii)  copies of Borrower’s or HTGC’s federal income tax returns, and
      any amendments thereto, filed with the Internal Revenue Service, and
    

    
      (iv)  any other information that is provided by Borrower or HTGC to the
      holders of its Stock generally,
    

    
      (f)  promptly notify Agent of the following regarding each Note
      Receivable and Note Receivable Collateral which secures such Note
      Receivable:
    

    
      (i)  the occurrence of any event which may impair the prospect of
      payment of such Note Receivable;
    

    
      (ii)  the sending by Servicer or Borrower of any notice of default,
      recordation by Servicer or Borrower of any notice of foreclosure and the
      date of any  scheduled foreclosure sale thereon, or filing by Servicer
      or Borrower of any lawsuit (including case number and court) on a Note
      Receivable or related Note Receivable Collateral;
    

    
      (iii)  the consummation of any foreclosure sale or any deed or bill of
      sale in lieu of foreclosure, retention of collateral in satisfaction of
      debt or similar transaction, and deliver to Agent true and complete
      copies of all documentation executed in respect thereof (in the case of
      notices, postings and the like, and in the case of deeds, bills of sale
      or retention of collateral transactions, all documents related to
      consummation of such transaction or transfer of such property); and
    

    
      (iv)  the receipt by Servicer or Borrower of a notice by any Person of
      (x) a default with respect to any agreement evidencing or governing a
      Lien on any Note Receivable Collateral or (y) any foreclosure sale with
      respect to any Note Receivable Collateral;
    

    
      -57-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (g)  promptly, but in any event within five (5) days after Borrower has
      knowledge of any event or condition that constitutes a Default or an
      Event of Default, notice thereof and a statement of the curative action
      that Borrower proposes to take with respect thereto,
    

    
      (h)  promptly after the commencement thereof, but in any event within
      five (5) days after the service of process with respect thereto on HTGC,
      Borrower or any of their respective Subsidiaries, notice of all actions,
      suits, or proceedings brought by or against HTGC, Borrower or any of
      their respective Subsidiaries before any Governmental Authority which,
      if determined adversely to HTGC, Borrower or such Subsidiary, reasonably
      could be expected to result in a Material Adverse Change, and
    

    
      (i)  upon the request of Agent, any other information reasonably
      requested relating to the financial condition of HTGC, Borrower or any
      of their respective Subsidiaries.
    

    
      In addition, Borrower agrees to deliver financial statements prepared on
      both a consolidated and consolidating basis to the extent required by
      this Section 6.3, and agrees that Borrower will not have fiscal
      year different from that of HTGC and that no Subsidiary of Borrower will
      have a fiscal year different from that of Borrower.  Borrower also
      agrees to cooperate with Agent to allow Agent to (A) audit Borrower or
      its Subsidiaries, and HTGC, and (B) consult with its and each such other
      Person’s independent certified public accountants if Agent reasonably
      requests the right to do so.  In such connection, Borrower authorizes,
      and will cooperate with Agent to cause its Subsidiaries and HTGC to
      authorize, its independent certified public accountants to communicate
      with Agent and to release to Agent whatever financial information
      concerning such Person as Agent reasonably may request.
    

    
         6.4  Notices Regarding
      Collections Servicing Staff.  Provide Agent with (a) notice
      promptly (and in any case within two (2) Business Days) if any
      Authorized Person of Borrower or HTGC ceases to continue to hold such
      position, and (b) notice promptly (and in any case within five (5)
      Business Days) if either more than five (5) or more than
      thirty-three percent (33%) of the employees of Borrower or HTGC involved
      in the servicing of the Notes Receivable and/or the accounting
      department of Borrower or HTGC cease, within any period of sixty (60)
      days to continue to hold such positions.
    

    
         6.5  Collection of Notes
      Receivable.  (a) Subject to Section
      4.8, to use or cause Servicer to use commercially reasonable
      efforts, at Borrower’s sole cost and expense (including through the
      application of available funds pursuant to Section 2.3(b)) and in
      its own name, in accordance with industry standards and applicable laws,
      to promptly and diligently collect and enforce payment of all Notes
      Receivable to the extent that it is commercially reasonable to do so and
      in a commercially reasonable manner, and defend and hold Lender harmless
      from any and all loss, damage, penalty, fine or expense arising from
      such collection or enforcement, (b) in accordance with the Borrower’s
      Required Procedures, maintain at its chief executive office, and, upon
      the request of Lender, make available to Lender copies of its Notes
      Receivable and all related documents and instruments, and all files,
      surveys, certificates, correspondence, appraisals, computer programs,
      accounting records and other information and data relating to the
      Collateral, and (c) permit Lender or its representatives to discuss with
      Borrower’s officers or with appraisers furnishing appraisals of property
      securing any Note Receivable the procedures for preparation, review and
      retention of, and to review and obtain copies of, such appraisals.
    

    
      -58-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
         6.6  Maintenance of Properties.  Maintain
      and preserve all of its properties which are necessary or useful in the
      proper conduct of its business in good working order and condition,
      ordinary wear and tear excepted, and comply at all times with the
      provisions of all material leases to which it is a party as lessee so as
      to prevent any loss or forfeiture thereof or thereunder.
    

    
         6.7  Taxes.  Cause all
      assessments and taxes, whether real, personal, or otherwise, due or
      payable by, or imposed, levied, or assessed against Borrower, its
      Subsidiaries or any of their respective assets to be paid in full,
      before delinquency or before the expiration of any extension period,
      except to the extent that the validity of such assessment or tax shall
      be the subject of a Permitted Protest.  Borrower will and will cause its
      Subsidiaries to make timely payment or deposit of all tax payments and
      withholding taxes required of it and them by applicable laws, including
      those laws concerning F.I.C.A., F.U.T.A., state disability, and local,
      state, and federal income taxes, and will, upon request, furnish Agent
      with proof satisfactory to Agent indicating that Borrower and its
      Subsidiaries have made such payments or deposits.
    

    
         6.8  Insurance.  
    

    
      (a)  At Borrower’s expense, maintain insurance respecting its and its
      Subsidiaries’ assets wherever located covering loss or damage by fire,
      theft, explosion, and all other hazards and risks as ordinarily are
      insured against by other Persons engaged in the same or similar
      businesses.  Borrower also shall maintain business interruption, and
      public liability insurance, as well as insurance against fraud, larceny,
      embezzlement, and criminal misappropriation.  All such policies of
      insurance shall be in such amounts and with such insurance companies as
      are reasonably satisfactory to Agent.  Borrower shall deliver copies of
      all such policies to Agent with an endorsement naming Agent as the sole
      loss payee (under a satisfactory lender’s loss payable endorsement) or
      additional insured, as appropriate.  Each policy of insurance or
      endorsement shall contain a clause requiring the insurer to give not
      less than 30 days prior written notice to Agent in the event of
      cancellation of the policy for any reason whatsoever.  Borrower shall
      also ensure that Servicer maintains similar insurance coverages for the
      benefit of Borrower under the Sale and Servicing Agreement.
    

    
      (b)  Borrower shall give Agent prompt notice of any loss covered by such
      insurance.  Agent shall have the exclusive right to adjust any losses
      claimed under any such insurance policies in excess of $50,000 (or in
      any amount after the occurrence and during the continuation of an Event
      of Default), without any liability to Borrower whatsoever in respect of
      such adjustments.  Any monies received as payment for any loss under any
      insurance policy mentioned above (other than liability insurance
      policies) or as payment of any award or compensation for condemnation or
      taking by eminent domain, shall be paid over to Agent to be applied at
      the option of the Required Lenders either to the prepayment of the
      Obligations or shall be disbursed to Borrower under staged payment terms
      reasonably satisfactory to the Required Lenders for application to the
      cost of repairs, replacements, or restorations. Any such repairs,
      replacements, or restorations shall be effected with reasonable
      promptness and shall be of a value at least equal to the value of the
      items of property destroyed prior to such damage or destruction.
    

    
      -59-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (c)  Borrower will not and will not suffer or permit its Subsidiaries to
      take out separate insurance concurrent in form or contributing in the
      event of loss with that required to be maintained under this Section
      6.8, unless Agent is included thereon as an additional insured or
      loss payee under a lender’s loss payable endorsement.  Borrower promptly
      shall notify Agent whenever such separate insurance is taken out,
      specifying the insurer thereunder and full particulars as to the
      policies evidencing the same, and copies of such policies promptly shall
      be provided to Agent.
    

    
         6.9  Location of Collateral.  Keep
      the Collateral only at the locations identified on Schedule 5.4,
      or at the Agent or at the Collateral Custodian in the case of Notes
      Receivable, and maintain the chief executive offices of Borrower and its
      Subsidiaries only at the locations identified on Schedule 5.6(b); provided,
      however, that Borrower may amend Schedules 5.4 and 5.6
      so long as such amendment occurs by written notice to Agent not less
      than thirty (30) days prior to the date on which such Collateral is
      moved to such new location or such chief executive office is relocated,
      so long as such new location is within the continental United States,
      and so long as, at the time of such written notification, Borrower
      provides to Agent a Collateral Access Agreement with respect thereto.
    

    
        6.10  Compliance with Laws.  Comply
      with the requirements of all applicable laws, rules, regulations, and
      orders of any Governmental Authority, other than laws, rules,
      regulations, and orders the non-compliance with which, individually or
      in the aggregate, could  not reasonably be expected to result in a
      Material Adverse Change.
    

    
        6.11  Leases.  Pay when due
      all rents and other amounts payable under any leases to which Borrower
      or any of its Subsidiaries is a party or by which Borrower’s or any such
      its Subsidiaries’ properties and assets are bound, unless such payments
      are the subject of a Permitted Protest.
    

    
        6.12  Existence.  At all
      times preserve and keep in full force and effect Borrower’s and its
      Subsidiaries’ valid existence and good standing and any rights and
      franchises material to their businesses.  Borrower acknowledges that the
      Lender Group is entering into the Loan Documents in reliance upon
      Borrower’s identity as a separate legal entity from each of its other
      Affiliates.  From and after the Closing Date, Borrower shall conduct its
      own business in its own name and take all reasonable steps, including,
      without limitation, all steps that Agent may from time to time
      reasonably request, to maintain Borrower’s identity and existence as a
      separate legal entity and to make it manifest to third parties that
      Borrower is an entity with assets and liabilities distinct from those of
      its other Affiliates.  Without limiting the generality of the foregoing
      and in addition to the other covenants set forth herein, Borrower shall:
    

    
                (a)       conduct all transactions with its other Affiliates
      strictly on an arm’s-length basis and allocate all overhead expenses
      (including, without limitation, telephone and other utility charges) for
      items shared between such other Affiliates, and Borrower on the basis of
      actual use to the extent practicable and, to the extent such allocation
      is not practicable, on a basis reasonably related to actual use;
    

    
                (b)       observe all corporate formalities as a distinct
      entity, and ensure that all actions relating to the dissolution or
      liquidation of Borrower or the initiation or participation in,
      acquiescence in, or consent to any bankruptcy, insolvency,
      reorganization, or similar proceeding involving Borrower, are duly
      authorized by unanimous vote of its directors;
    

    
      -60-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                (c)       maintain Borrower’s Books separate from those of its
      other Affiliates and otherwise readily identifiable as its own assets
      rather than assets of its other Affiliates;
    

    
                (d)       except as herein specifically otherwise provided,
      not commingle funds or other assets of Borrower with those of its other
      Affiliates and, except for the Cash Management Accounts, not maintain
      bank accounts or other depository accounts to which Borrower is an
      account party, into which Borrower makes deposits or from which Borrower
      has the power to make withdrawals; and
    

    
                (e)       not permit Borrower to pay or finance any of its
      other Affiliates’ operating expenses not properly allocable to Borrower.
    

    
        6.13  Environmental.  (a)
      Keep any property either owned or operated by Borrower or its
      Subsidiaries free of any Environmental Liens or post bonds or other
      financial assurances sufficient to satisfy the obligations or liability
      evidenced by such Environmental Liens, (b) comply, in all material
      respects, with Environmental Laws and provide to Agent documentation of
      such compliance which Agent reasonably requests, (c) promptly notify
      Agent of any release of a Hazardous Material in any reportable quantity
      from or onto property owned or operated by Borrower or its Subsidiaries
      and take any Remedial Actions required to abate said release or
      otherwise to come into compliance with applicable Environmental Law, and
      (d) promptly, but in any event within 5 days of its receipt
      thereof,  provide Agent with written notice of any of the
      following:  (i) notice that an Environmental Lien has been filed against
      any of the real or personal property of Borrower or its Subsidiaries,
      (ii) commencement of any Environmental Action or notice that an
      Environmental Action will be filed against Borrower or its Subsidiaries,
      and (iii) notice of a violation, citation, or other administrative order
      which reasonably could be expected to result in a Material Adverse
      Change.
    

    
        6.14  Disclosure Updates.  Promptly
      and in no event later than five (5) Business Days after obtaining
      knowledge thereof, notify Agent if any written information, exhibit, or
      report furnished to the Lender Group contained, at the time it was
      furnished, any untrue statement of a material fact or omitted to state
      any material fact necessary to make the statements contained therein not
      misleading in light of the circumstances in which made.  The foregoing
      to the contrary notwithstanding, any notification pursuant to the
      foregoing provision will not cure or remedy the effect of the prior
      untrue statement of a material fact or omission of any material fact nor
      shall any such notification have the effect of amending or modifying
      this Agreement or any of the Schedules hereto.
    

    
        6.15  Formation of Subsidiaries.
      Not form or acquire any Subsidiary of Borrower on or after the
      Closing Date without the prior written consent of Agent, and at the time
      that Borrower forms any direct or indirect Subsidiary or acquires any
      direct or indirect Subsidiary after the Closing Date with the prior
      written consent of the Agent, Borrower shall, if and to the extent
      required by Agent, (a) cause such new Subsidiary to provide to Agent a
      joinder to this Agreement, together with such other security documents
      (including mortgages with respect to any Real Property of such new
      Subsidiary), as well as appropriate financing statements (and with
      respect to all property subject to a mortgage, fixture filings), all in
      form and substance satisfactory to Agent (including being sufficient to
      grant Agent a first priority Lien (subject to Permitted Liens) in and to
      the assets of such newly formed or acquired Subsidiary), (b) provide to
      Agent a pledge agreement and appropriate certificates and powers or
      financing statements, hypothecating all of the direct or beneficial
      ownership interest in such new Subsidiary, in form and substance
      satisfactory to Agent, and (c) provide to Agent all other documentation,
      including one or more opinions of counsel satisfactory to Agent, if
      requested by Agent, which in its opinion is appropriate with respect to
      the execution and delivery of the applicable documentation referred to
      above (including policies of title insurance or other documentation with
      respect to all property subject to a mortgage).  Any document,
      agreement, or instrument executed or issued pursuant to this Section
      6.15 shall be a Loan Document.
    

    
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        6.16  Required Asset Documents.
      Immediately upon receipt, deliver to Agent or the Collateral
      Custodian (if one has been appointed) all of the Required Asset
      Documents related to such Note Receivable.
    

    
        6.17  Sale and Servicing Agreement.  Cause
      Servicer to promptly provide Agent with true and complete copies of all
      notices sent or received by Servicer under the Sale and Servicing
      Agreement.
    

    
        6.18  Escrow Deposits.  Deposit
      into a Deposit Account that is subject to a perfected Agent’s Lien all
      amounts advanced by Borrower into escrow and all amounts delivered to
      Borrower to be held in escrow, including, without limitation,
      construction funds, insurance premiums and proceeds, taxes, and other
      funds delivered to Borrower to be held on behalf of any Account Debtor.
    

    
        6.19  Minimum Funding of Advances.  On
      or before September 30, 2008, borrow Advances in an aggregate principal
      amount of not less than $10,000,000.
    

    
      7.  NEGATIVE COVENANTS.
    

    
      Borrower covenants and agrees that, until termination of all of the
      Commitments and full and final payment of the Obligations, Borrower will
      not and will not permit any of its Subsidiaries to do any of the
      following:
    

    
         7.1  Indebtedness.  Create,
      incur, assume, suffer to exist, guarantee, or otherwise become or
      remain, directly or indirectly, liable with respect to any Indebtedness,
      except:
    

    
      (a)  Indebtedness evidenced by this Agreement and the other Loan
      Documents,
    

    
      (b)  Subordinated Debt,
    

    
      (c)  other Indebtedness set forth on Schedule 5.19,
    

    
      (d)  Permitted Purchase Money Indebtedness,
    

    
      (e)  refinancings, renewals, or extensions of Indebtedness permitted
      under clauses (c) and (d) of this Section 7.1 (and
      continuance or renewal of any Permitted Liens associated therewith) so
      long as: (i) the terms and conditions of such refinancings, renewals, or
      extensions do not, in Agent’s judgment, materially impair the prospects
      of repayment of the Obligations by Borrower or materially impair
      Borrower’s creditworthiness, (ii) such refinancings, renewals, or
      extensions do not result in an increase in the principal amount of, or
      interest rate with respect to, the Indebtedness so refinanced, renewed,
      or extended, (iii) such refinancings, renewals, or extensions do not
      result in a shortening of the average weighted maturity of the
      Indebtedness so refinanced, renewed, or extended, nor are they on terms
      or conditions that, taken as a whole, are materially more burdensome or
      restrictive to Borrower, (iv) if the Indebtedness that is refinanced,
      renewed, or extended was subordinated in right of payment to the
      Obligations, then the terms and conditions of the refinancing, renewal,
      or extension Indebtedness must include subordination terms and
      conditions that are at least as favorable to the Lender Group as those
      that were applicable to the refinanced, renewed, or extended
      Indebtedness, and (v) the Indebtedness that is refinanced, renewed, or
      extended is non-recourse to any Person that is liable on account of the
      Obligations other than those Persons which were obligated with respect
      to the Indebtedness that was refinanced, renewed, or extended, and
    

    
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      (f)  endorsement of instruments or other payment items for deposit.
    

    
         7.2  Liens.  Create,
      incur, assume, or suffer to exist, directly or indirectly, any Lien on
      or with respect to any of its assets, of any kind, whether now owned or
      hereafter acquired, or any income or profits therefrom, except for
      Permitted Liens (including Liens that are replacements of Permitted
      Liens to the extent that the original Indebtedness is refinanced,
      renewed, or extended under Section 7.1(e) and so long as the
      replacement Liens only encumber those assets that secured the
      refinanced, renewed, or extended Indebtedness).
    

    
         7.3  Restrictions on
      Fundamental Changes.
    

    
      (a)  Enter into any merger, consolidation, reorganization, or
      recapitalization, or amend any of its Governing Documents as in effect
      on the Closing Date.
    

    
      (b)  Liquidate, wind up, or dissolve itself (or suffer any liquidation
      or dissolution).
    

    
      (c)  Suspend or go out of a substantial portion of its or their business.
    

    
      (d)  Convey, sell, lease, license, assign, transfer, or otherwise
      dispose of, in one transaction or a series of transactions, all or any
      substantial part of its assets, other than through Permitted
      Dispositions.
    

    
         7.4  Disposal of Assets.  Other
      than Permitted Dispositions, convey, sell, lease, license, assign,
      transfer, or otherwise dispose of (or enter into an agreement to convey,
      sell, lease, license, assign, transfer, or otherwise dispose of) any of
      Borrower’s or its Subsidiaries’ assets.
    

    
         7.5  Change Name.  Change
      Borrower’s or any of its Subsidiaries’ name, organizational
      identification number, state of organization or organizational identity; provided,
      however, that Borrower or any of its Subsidiaries may change
      their names upon at least 30 days prior written notice to Agent of such
      change and so long as, at the time of such written notification,
      Borrower or its Subsidiary provides any financing statements necessary
      to perfect and continue perfected the Agent’s Liens.
    

    
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         7.6  Nature of Business.  Make
      any change in the nature of its or their business, or acquire any
      properties or assets that are not reasonably related to the conduct of
      such business activities.  Without limiting the generality of the
      foregoing, Borrower shall not permit HTGC (a) to allow any other
      Subsidiary or Affiliate of HTGC to acquire or hold any new loan first
      funded after the Closing Date that would be an Eligible Note Receivable
      under this Agreement and would create Availability that would not be
      limited by the amount of the Maximum Revolver Amount at the time of
      Borrower’s acquisition thereof (provided, however,
      that (i) loans intended to be financed by Hercules Technology II, L.P.,
      HTGC’s Subsidiary that is licensed as a small business investment
      company under the Small Business Investment Act of 1958, may continue to
      be made and held by Hercules Technology II, L.P., (ii) HTGC may acquire
      or fund new loans through any Subsidiary or Affiliate of HTGC other than
      Borrower if such loan would not be an Eligible Note Receivable under
      this Agreement if held by Borrower or if the outstanding amount of the
      Advances then equals or exceeds the Maximum Revolver Amount, and
      (iii) Agent may waive such requirement in its Permitted Discretion), or
      (b) to cause the portfolio of Notes Receivable held by Borrower, as
      opposed to HTGC or any other Subsidiary or Affiliate of HTGC, to be
      selected in a manner adverse to Borrower or Lender.
    

    
         7.7  Prepayments and Amendments.  Except
      in connection with a refinancing permitted by Section 7.1(e), or
      a Restricted Payment or other payment permitted by Section 7.10,
    

    
      (a)  optionally prepay, redeem, defease, purchase, or otherwise acquire
      any Indebtedness of Borrower or its Subsidiaries, other than the
      Obligations in accordance with this Agreement,
    

    
      (b)  make any payment on account of Indebtedness that has been
      contractually subordinated in right of payment if such payment is not
      permitted at such time under the subordination terms and conditions, or
    

    
      (c)  directly or indirectly, amend, modify, alter, increase, or change
      any of the terms or conditions of any agreement, instrument, document,
      indenture, or other writing evidencing  or concerning any Subordinated
      Debt or any Indebtedness permitted under Sections 7.1(c) , (d)
      or (e), except as permitted by Sections 7.1(e).
    

    
         7.8  Change of Control.  Cause,
      permit, or suffer, directly or indirectly, any Change of Control.
    

    
         7.9  Required Procedures.  Make
      any changes or revisions in any material respect to the Borrower’s
      Required Procedures without advance notice to, and consent by, Agent.
    

    
        7.10  Restricted Payments.  Make
      any Restricted Payment; provided, however, that so long as
      no Default or Event of Default shall have occurred and be continuing or
      would occur as a result thereof and Agent and Lenders shall have
      received the financial statements required by Section 6.3(a) for
      the most recently completed fiscal month, then Borrower may (a) make
      distributions to the holders of its Stock to the extent permitted by
      applicable law, and (b) make regularly scheduled payments of interest on
      the Subordinated Debt only as it becomes due and payable.
    

    
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        7.11  Accounting Methods.  Modify
      or change its fiscal year or its method of accounting (other than as may
      be required to conform to GAAP) or enter into, modify, or terminate any
      agreement currently existing, or at any time hereafter entered into with
      any third party accounting firm or service bureau for the preparation or
      storage of Borrower’s or its Subsidiaries’ accounting records without
      said accounting firm or service bureau agreeing to provide Agent
      information regarding the Collateral or Borrower’s and its Subsidiaries’
      financial condition.
    

    
        7.12  Investments.  Except
      for Permitted Investments, directly or indirectly, make or acquire any
      Investment or incur any liabilities (including contingent obligations)
      for or in connection with any Investment.
    

    
        7.13  Transactions with Affiliates.  Directly
      or indirectly enter into or permit to exist any transaction with any
      Affiliate of Borrower except for transactions that (i) are in the
      ordinary course of Borrower’s business, (ii) are upon fair and
      reasonable terms, (iii) are fully disclosed to Agent, and (iv) are no
      less favorable to Borrower or its Subsidiaries, as applicable, than
      would be obtained in an arm’s length transaction with a non-Affiliate.
    

    
        7.14  Use of Proceeds.  Use
      the proceeds of the Advances for any purpose other than (a) on the
      Closing Date and on the initial Funding Date, to partially refinance
      HTGC’s existing senior secured revolving credit facility and to pay
      transactional fees, costs, and expenses incurred in connection with this
      Agreement, the other Loan Documents, and the transactions contemplated
      hereby and thereby, and (b) after the Closing Date, for working capital
      purposes or to make distributions to the holders of its Stock to the
      extent permitted by applicable law to the extent permitted by
      this Agreement.
    

    
        7.15  Collateral with Bailees.  Store
      any Collateral at any time now or hereafter with a bailee, warehouseman,
      or similar party, other than Agent or Collateral Custodian (if one has
      been appointed); provided, that loan files that do not include
      original promissory notes, Lien instruments, or assignments of Lien
      instruments may be stored, from time to time, in a public warehouse,
      access to which has been assigned by Borrower to Agent.
    

    
        7.16  Financial Covenants.
    

    
      (a)  Minimum Tangible Net Worth of Borrower.  Permit
      Borrower, on a consolidated basis with its Subsidiaries, to fail to
      maintain as of the end of each of its fiscal quarters a sum of
      (i) Tangible Net Worth, plus (ii) Subordinated Debt, that is
      greater than or equal to the sum of (A) the lesser of (I) the sum
      of the outstanding principal amounts of Borrower’s three largest Notes
      Receivable, and (II) $25,000,000, plus (B) any positive
      amount of cumulative capital contributions made to Borrower from and
      after the Closing Date.
    

    
      (b)  Minimum Interest Coverage Ratio of Borrower. Permit
      Borrower, on a consolidated basis with its Subsidiaries, to fail to
      maintain, as measured on the last day of each of its fiscal quarters, an
      Interest Coverage Ratio for the three (3) fiscal month period then ended
      that is greater than or equal to 2.00 to 1.00.
    

    
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      (c)  Minimum Tangible Net Worth of HTGC.  Permit HTGC,
      on a consolidated basis with its Subsidiaries, to fail to maintain as of
      the end of each of its fiscal quarters a sum of (i) Tangible Net Worth, plus
      (ii) Subordinated Debt, that is greater than or equal to the sum of
      (A) $360,000,000, plus (B) ninety percent (90%) of the
      cumulative amount of equity raised by HTGC from and after the Closing
      Date.
    

    
      (d)  Maximum Debt to Worth Ratio of HTGC.  Permit
      HTGC, on a consolidated basis with its Subsidiaries, to fail to maintain
      as of the end of each of its fiscal quarters a Debt to Worth Ratio that
      is less than or equal to 1.25 to 1.00.
    

    
      (e)  Minimum Interest Coverage Ratio of HTGC. Permit
      HTGC, on a consolidated basis with its Subsidiaries, to fail to
      maintain, as measured on the last day of each of its fiscal quarters, an
      Interest Coverage Ratio for the three (3) fiscal month period then ended
      that is greater than or equal to 2.00 to 1.00.
    

    
      (f)  Minimum Portfolio Funding Liquidity Covenant of HTGC.
      Permit HTGC, on a consolidated basis with its Subsidiaries, to fail
      to maintain, as measured on the last day of each of its fiscal months,
      an aggregate amount of unrestricted cash balances and borrowing
      availability under committed lines of credit that is greater than or
      equal to seventy-five percent (75%) of the aggregate amount of
      unfunded commitments of Borrower to the makers of Notes Receivable.
    

    
        7.17  Certain Borrower and HTGC
      Portfolio Covenants.  
    

    
      (a)  Maximum Delinquent Notes Receivable Percentage of
      Borrower.  Permit the aggregate unpaid principal balance of all
      Notes Receivable that are Delinquent Notes Receivable as of the last day
      of any fiscal month, to be in excess of ten percent (10%) of the
      aggregate unpaid principal balance of all Notes Receivable as of such
      day.
    

    
      (b)  Maximum Defaulted Notes Receivable Percentage of
      Borrower.  Permit the aggregate unpaid principal balance of all
      Notes Receivable that are Defaulted Notes Receivable as of the last day
      of any fiscal month, to be in excess of five percent (5%) of the
      aggregate unpaid principal balance of all Notes Receivable as of such
      day.
    

    
      (c)  Maximum Amount of Unfunded Commitments of Borrower.  Permit
      the aggregate amount of unfunded commitments of Borrower to the makers
      of Notes Receivable as of the last day of any fiscal month to be in
      excess of the greater of (i) $30,000,000, and (ii) forty percent (40%)
      of the aggregate amount of the Commitments at such time.
    

    
      (d)  Maximum Delinquent Notes Receivable Percentage of
      HTGC’s Serviced Portfolios.  Permit the aggregate unpaid
      principal balance of all loans that are serviced by HTGC for its
      Subsidiaries and Affiliates with respect to which any payment thereunder
      remains outstanding and unpaid, in whole or in part, for more than sixty
      (60) days past the date it became due and payable as of the last day of
      any fiscal month, to be in excess of ten percent (10%) of the aggregate
      unpaid principal balance of all such loans serviced by HTGC as of such
      day.
    

    
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      (e)  Maximum Defaulted Notes Receivable Percentage of
      HTGC’s Serviced Portfolios.  Permit the aggregate unpaid
      principal balance of all loans that are serviced by HTGC for its
      Subsidiaries and Affiliates with respect to which (a) any payment
      thereunder remains outstanding and unpaid, in whole or in part, for more
      than ninety (90) days past the date it became due and payable according
      to the original face and tenor of such loan, (b) with respect to which
      foreclosure proceedings have been initiated against any property
      securing such loan, or (c) that HTGC deems to be non-collectible as of
      the last day of any fiscal month, to be in excess of ten percent (10%)
      of the aggregate unpaid principal balance of all such loans serviced
      by HTGC as of such day.
    

    
        7.18  Sale and Servicing Agreement.
    

    
      (a)  With respect to the Sale and Servicing Agreement (i) amend or
      modify the Sale and Servicing Agreement in any manner that (A) causes or
      allows the aggregate amount of the servicing fees payable under the Sale
      and Servicing Agreement to exceed, as of any time of determination, an
      amount equal to the amount of the servicing fees as determined pursuant
      to the Sale and Servicing Agreement on the Closing Date, (B) except as
      allowed by clause (A) preceding, obligates Borrower for payment
      of any professional costs or court costs incurred by Servicer in
      servicing under the Sale and Servicing Agreement, (C) causes or allows
      the requirements applicable to Servicer’s standards of conduct,
      compliance with laws or licensing requirements to be less restrictive
      than exist on the Closing Date, (D) releases any indemnity obligations
      of Servicer or modifies any such obligations in any manner that is less
      restrictive than exist on the Closing Date, (E) relieves Servicer of its
      obligation to perform under the Sale and Servicing Agreement, or
      (ii) terminate the Sale and Servicing Agreement, or allow the Sale and
      Servicing Agreement to be terminated, in any such case without the prior
      written consent of Agent.
    

    
      (b)  Allow Servicer to delegate any of its duties or functions under the
      Sale and Servicing Agreement to any Person, or otherwise engage any such
      Person to perform any such duties or functions for or on behalf of
      Servicer or Borrower, in any such case without the prior written consent
      of Agent.  
    

    
      (c)  Transfer the duties and functions of Servicer under the Sale and
      Servicing Agreement to any other Person without the prior written
      consent of Agent.
    

    
      8.  EVENTS OF DEFAULT.
    

    
      Any one or more of the following events shall constitute an event of
      default (each, an “Event of Default”) under this Agreement:
    

    
                8.1       If
      Borrower fails to pay when due and payable, or when declared due and
      payable, all or any portion of the Obligations (whether of principal,
      interest (including any interest which, but for the provisions of the
      Bankruptcy Code, would have accrued on such amounts), fees and charges
      due Agent or any Lender, reimbursement of Lender Group Expenses, or
      other amounts constituting Obligations);
    

    
                8.2       If
      Borrower (a) fails to perform, keep, or observe any covenant or other
      provision contained in Sections 2.6, 6.2, 6.3, 6.5,
      6.8, 6.12, 6.14, 6.16, 6.17, 6.18,
      and 7.1 through 7.18 of this Agreement or any comparable
      provision contained in any of the other Loan Documents (b) fails to
      perform, keep, or observe any covenant or other provision contained in Sections
      6.1, 6.6, 6.7, 6.9, 6.10, 6.11, 6.13,
      or 6.15 of this Agreement and such failure continues for a period
      of ten (10) days after the date on which such failure first occurs, or
      (c) fails to perform, keep, or observe any covenant or other provision
      contained in any Section of this Agreement (other than a Section that is
      expressly dealt with elsewhere in this Section 8.2), including
      failure to satisfy a condition subsequent set forth in Section 3.2
      within the period stated, or the other Loan Documents, and such failure
      continues for a period of fifteen (15) Business Days after the date on
      which such failure first occurs;
    

    
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                8.3       If
      any material portion of the assets of Borrower or any of its
      Subsidiaries, or of HTGC, is attached, seized, subjected to a writ or
      distress warrant, levied upon, or comes into the possession of any third
      Person;
    

    
                8.4       If
      an Insolvency Proceeding is commenced by Borrower or any of its
      Subsidiaries, or HTGC;
    

    
                8.5       If
      an Insolvency Proceeding is commenced against Borrower, or any of its
      Subsidiaries, or HTGC, and any of the following events occur:  (a) such
      Person consents to the institution of such Insolvency Proceeding against
      it, (b) the petition commencing the Insolvency Proceeding is not timely
      controverted; provided, however, that, during the pendency
      of such period, Agent (including any successor agent) and each other
      member of the Lender Group shall be relieved of their obligations to
      extend credit hereunder, (c) the petition commencing the Insolvency
      Proceeding is not dismissed within 45 calendar days of the date of the
      filing thereof; provided, however, that, during the
      pendency of such period, Agent (including any successor agent) and each
      other member of the Lender Group shall be relieved of their obligations
      to extend credit hereunder, (d) an interim trustee is appointed to take
      possession of all or any substantial portion of the properties or assets
      of, or to operate all or any substantial portion of the business of such
      Person, or (e) an order for relief shall have been entered therein;
    

    
                8.6       If
      Borrower or any of its Subsidiaries, or HTGC, is enjoined, restrained,
      or in any way prevented by court order from continuing to conduct all or
      any material part of its business affairs;
    

    
                8.7       If
      a notice of Lien, levy, or assessment is filed of record with respect to
      any of the assets of Borrower or any of its Subsidiaries having an
      aggregate value in excess of $100,000, or of any of the assets of HTGC
      having an aggregate value in excess of $500,000, by the United
      States, or any department, agency, or instrumentality thereof, or by any
      state, county, municipal, or governmental agency, or if any taxes or
      debts owing at any time hereafter to any one or more of such entities
      becomes a Lien upon any of the assets of Borrower or any of its
      Subsidiaries having an aggregate value in excess of $100,000, or of any
      of the assets of HTGC having an aggregate value in excess of $500,000,
      and in any such case the same is not paid before such payment is
      delinquent;
    

    
                8.8       If
      a judgment or other claim becomes a Lien or encumbrance upon any assets
      of Borrower or any of its Subsidiaries having an aggregate value in
      excess of $100,000, or of any of the assets of HTGC having an aggregate
      value in excess of $500,000, and in any such case either
      (a) enforcement of such judgment or claim remains unstayed or
      unsatisfied for a period of thirty (30) consecutive days and is not
      fully covered (subject to standard deductibles) by insurance coverage
      under which the insurer has accepted liability, or (b) the judgment
      creditor or claimant begins enforcement proceedings of such judgment or
      Lien;
    

    
                8.9       If
      there is a default by Borrower, HTGC or any of their respective
      Subsidiaries under any Subordinated Debt or any material agreement to
      which Borrower or any of its Subsidiaries is a party, or any loan or
      financing agreement to which HTGC or any of its Subsidiaries other than
      Borrower is a party, and such default (a) occurs at the final maturity
      of the obligations thereunder, or (b) results in a right by the other
      party thereto, irrespective of whether exercised, to accelerate the
      maturity of the obligations of Borrower or any of its Subsidiaries, or
      HTGC or any of its Subsidiaries other than Borrower, thereunder, to
      terminate such agreement, or to refuse to renew such agreement in
      accordance with any automatic renewal right therein;
    

    
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                8.10      If
      Borrower or any of its Subsidiaries, or HTGC, makes any payment on
      account of Indebtedness that has been contractually subordinated in
      right of payment to the payment of the Obligations, except to the extent
      such payment is permitted by the terms of the subordination provisions
      applicable to such Indebtedness;
    

    
                8.11      If
      any warranty, representation, statement, or Record made or provided to
      the Lender Group by Borrower, its Subsidiaries, HTGC, or any officer,
      employee, agent, or director of Borrower or any of its Subsidiaries or
      HTGC is incorrect in any material respect as of the date when made or
      deemed made;
    

    
                8.12      If
      the obligations of any Guarantor under its Guaranty is limited or
      terminated by operation of law or by such Guarantor thereunder;
    

    
                8.13      If
      this Agreement or any other Loan Document that purports to create a Lien
      in favor of Agent or Lenders shall, for any reason, fail or cease to
      create a valid and perfected and, except to the extent permitted by the
      terms hereof or thereof, first priority Lien on or security interest in
      the Collateral covered hereby or thereby in favor of Agent or Lenders,
      except as a result of a disposition of the applicable Collateral in a
      transaction permitted under this Agreement;
    

    
                8.14      If
      any of the individuals serving as of the Closing Date as the Chief
      Executive Officer, Chief Legal Officer, Chief Financial Officer,
      Technology Segment Head, Life Sciences Head, or Corporate Controller,
      respectively, of either Borrower or HTGC, shall cease to be
      actively involved in the business of Borrower or HTGC (as
      applicable) in such capacity and such individual has not been replaced
      within 90 days by an individual acceptable to Agent in Agent’s Permitted
      Discretion.
    

    
                8.15      Either
      Servicer or Borrower fails to comply, in any material respect, with its
      obligations under the Sale and Servicing Agreement; or
    

    
                8.16      Any
      provision of any Loan Document that Agent in its Permitted Discretion
      deems to be material shall at any time for any reason be declared to be
      null and void, or the validity or enforceability thereof shall be
      contested by Borrower or its Subsidiaries, or by HTGC, or a proceeding
      shall be commenced by Borrower or its Subsidiaries, or by HTGC, or by
      any Governmental Authority having jurisdiction over Borrower or its
      Subsidiaries or HTGC seeking to establish the invalidity or
      unenforceability thereof, or Borrower or its Subsidiaries, or HTGC,
      shall deny that such Person has any liability or obligation purported to
      be created under any Loan Document to which it is a party.
    

    
      9.  THE LENDER GROUP’S RIGHTS AND REMEDIES.
    

    
         9.1  Rights and Remedies.  Upon
      the occurrence, and during the continuation, of an Event of Default, the
      Required Lenders (at their election but without notice of their election
      and without demand) may authorize and instruct Agent to do any one or
      more of the following on behalf of the Lender Group (and Agent, acting
      upon the instructions of the Required Lenders, shall do the same on
      behalf of the Lender Group), all of which are authorized by Borrower:
    

    
      (a)  Declare all or any portion of the Obligations, whether evidenced by
      this Agreement, by any of the other Loan Documents, or otherwise,
      immediately due and payable;
    

    
      -69-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b)  Cease advancing money or extending credit to or for the benefit of
      Borrower under this Agreement, under any of the Loan Documents, or under
      any other agreement between Borrower and the Lender Group;
    

    
      (c)  Terminate this Agreement and any of the other Loan Documents as to
      any future liability or obligation of the Lender Group, but without
      affecting any of Agent’s Liens in the Collateral and without affecting
      the Obligations;
    

    
      (d)  Settle or adjust disputes and claims directly with Borrower’s
      Account Debtors and makers of Notes Receivable for amounts and upon
      terms which Agent considers advisable, and in such cases, Agent will
      credit Borrower’s Loan Account with only the net amounts received by
      Agent in payment of such disputed Accounts or Notes Receivable after
      deducting all Lender Group Expenses incurred or expended in connection
      therewith;
    

    
      (e)  Exercise or assign any and all rights to collect, manage, and
      service the Notes Receivables, including, (i) receive, process and
      account for all Collections in respect of Notes Receivables, (ii)
      terminate the Sale and Servicing Agreement and assign servicing
      responsibilities to any replacement servicer, (iii) without notice to or
      demand upon Borrower, make any payments as are reasonably necessary or
      desirable in connection with the Sale and Servicing Agreement or any
      other agreement that Agent enters into with any replacement servicer,
      and (iv) take all lawful actions and procedures which Agent or such
      assignee deems necessary to collect the amounts due to Borrower in
      connection with Notes Receivables (all amounts incurred by Agent
      pursuant to this Section 9.1(e) shall be Lender Group
      Expenses);
    

    
      (f)  Without notice to or demand upon Borrower or any other Person, make
      such payments and do such acts as Agent considers necessary or
      reasonable to protect its security interests in the
      Collateral.  Borrower agrees to assemble the Collateral if Agent so
      requires, and to make the Collateral available to Agent at a place that
      Agent may designate which is reasonably convenient to both
      parties.  Borrower authorizes Agent to enter the premises where the
      Collateral is located, to take and maintain possession of the
      Collateral, or any part of it, and to pay, purchase, contest, or
      compromise any Lien that in Agent’s determination appears to conflict
      with the priority of Agent’s Liens in and to the Collateral and to pay
      all expenses incurred in connection therewith and to charge Borrower’s
      Loan Account therefor.  With respect to any of Borrower’s owned or
      leased premises, Borrower hereby grants Agent a license to enter into
      possession of such premises and to occupy the same, without charge, in
      order to exercise any of the Lender Group’s rights or remedies provided
      herein, at law, in equity, or otherwise;
    

    
      (g)  Without notice to Borrower (such notice being expressly waived),
      and without constituting an acceptance of any collateral in full or
      partial satisfaction of an obligation (within the meaning of the Code),
      set off and apply to the Obligations any and all (i) balances and
      deposits of Borrower held by the Lender Group (including any amounts
      received in the Cash Management Accounts), or (ii) Indebtedness at any
      time owing to or for the credit or the account of Borrower held by the
      Lender Group;
    

    
      (h)  Hold, as cash collateral, any and all balances and deposits of
      Borrower held by the Lender Group, and any amounts received in the Cash
      Management Accounts, to secure the full and final repayment of all of
      the Obligations;
    

    
      -70-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (i)  Ship, reclaim, recover, store, finish, maintain, repair, prepare
      for sale, advertise for sale, and sell (in the manner provided for
      herein) the Borrower Collateral.  Borrower hereby grants to Agent a
      license or other right to use, without charge, Borrower’s labels,
      patents, copyrights, trade secrets, trade names, trademarks, service
      marks, and advertising matter, or any property of a similar nature, as
      it pertains to the Borrower Collateral, in completing production of,
      advertising for sale, and selling any Borrower Collateral and Borrower’s
      rights under all licenses and all franchise agreements shall inure to
      the Lender Group’s benefit;
    

    
      (j)  Sell the Borrower Collateral at either a public or private sale, or
      both, by way of one or more contracts or transactions, for cash or on
      terms, in such manner and at such places (including Borrower’s premises)
      as Agent determines is commercially reasonable.  It is not necessary
      that the Borrower Collateral be present at any such sale;
    

    
      (k)  Except in those circumstances where no notice is required under the
      Code, Agent shall give notice of the disposition of the Borrower
      Collateral as follows:
    

    
      (i)  Agent shall give Borrower a notice in writing of the time and place
      of public sale, or, if the sale is a private sale or some other
      disposition other than a public sale is to be made of the Borrower
      Collateral, the time on or after which the private sale or other
      disposition is to be made; and
    

    
      (ii)  The notice shall be personally delivered or mailed, postage
      prepaid, to Borrower as provided in Section 12, at least 10 days
      before the earliest time of disposition set forth in the notice; no
      notice needs to be given prior to the disposition of any portion of the
      Borrower Collateral that is perishable or threatens to decline speedily
      in value or that is of a type customarily sold on a recognized market;
    

    
      (l)  Agent, on behalf of the Lender Group, may credit bid and purchase
      at any public sale;
    

    
      (m)  Agent may seek the appointment of a receiver or keeper to take
      possession of all or any portion of the Borrower Collateral or to
      operate same and, to the maximum extent permitted by applicable law, may
      seek the appointment of such a receiver without the requirement of prior
      notice or a hearing;
    

    
      (n)  Exercise any and all rights of Borrower under the Sale and
      Servicing Agreement or assume or assign any and all rights and
      responsibilities to collect, manage, and service the Notes Receivables,
      including (i) the responsibility for the receipt, processing and
      accounting for all payments on account of the Notes Receivables, (ii)
      periodically sending demand notices and statements to the Account
      Debtors or makers of Notes Receivable, (iii) enforcing legal rights with
      respect to the Notes Receivables, including hiring attorneys to do so to
      the extent Agent or such assignee deems such engagement necessary, and
      (iv) taking all lawful actions and procedures which Agent or such
      assignee deems necessary to collect the Notes Receivables, and all such
      amounts shall be Lender Group Expenses; and
    

    
      (o)  The Lender Group shall have all other rights and remedies available
      at law or in equity or pursuant to any other Loan Document.
    

    
      -71-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      The foregoing to the contrary notwithstanding, upon the occurrence of
      any Event of Default described in Section 8.4 or Section 8.5,
      in addition to the remedies set forth above, without any notice to
      Borrower or any other Person or any act by the Lender Group, the
      Commitments shall automatically terminate and the Obligations then
      outstanding, together with all accrued and unpaid interest thereon and
      all fees and all other amounts due under this Agreement and the other
      Loan Documents, shall automatically and immediately become due and
      payable, without presentment, demand, protest, or notice of any kind,
      all of which are expressly waived by Borrower.
    

    
         9.2  Remedies Cumulative.  The
      rights and remedies of the Lender Group under this Agreement, the other
      Loan Documents, and all other agreements shall be cumulative.  The
      Lender Group shall have all other rights and remedies not inconsistent
      herewith as provided under the Code, by law, or in equity.  No exercise
      by the Lender Group of one right or remedy shall be deemed an election,
      and no waiver by the Lender Group of any Event of Default shall be
      deemed a continuing waiver.  No delay by the Lender Group shall
      constitute a waiver, election, or acquiescence by it.
    

    
      10.  TAXES AND EXPENSES.
    

    
      If Borrower fails to pay any monies (whether taxes, assessments,
      insurance premiums, or, in the case of leased properties or assets,
      rents or other amounts payable under such leases) due to third Persons,
      or fails to make any deposits or furnish any required proof of payment
      or deposit, all as required under the terms of this Agreement, then,
      Agent, in its sole discretion and without prior notice to Borrower, may
      do any or all of the following:  (a) make payment of the same or any
      part thereof, (b) set up such reserves against the Borrowing Base or the
      Maximum Revolver Amount as Agent deems necessary to protect the Lender
      Group from the exposure created by such failure, or (c) in the case of
      the failure to comply with Section 6.8 hereof, obtain and
      maintain insurance policies of the type described in Section 6.8
      and take any action with respect to such policies as Agent deems
      prudent.  Any such amounts paid by Agent shall constitute Lender Group
      Expenses and any such payments shall not constitute an agreement by the
      Lender Group to make similar payments in the future or a waiver by the
      Lender Group of any Event of Default under this Agreement.  Agent need
      not inquire as to, or contest the validity of, any such expense, tax, or
      Lien and the receipt of the usual official notice for the payment
      thereof shall be conclusive evidence that the same was validly due and
      owing.
    

    
      11.  WAIVERS; INDEMNIFICATION.
    

    
        11.1  Demand; Protest; etc.  Borrower
      waives demand, protest, notice of protest, notice of default or
      dishonor, notice of payment and nonpayment, nonpayment at maturity,
      release, compromise, settlement, extension, or renewal of documents,
      instruments, chattel paper, and guarantees at any time held by the
      Lender Group on which Borrower may in any way be liable.
    

    
        11.2  The Lender Group’s Liability
      for Borrower Collateral.  Borrower hereby agrees that:  (a) so
      long as Agent complies with its obligations, if any, under the Code, the
      Lender Group shall not in any way or manner be liable or responsible
      for:  (i) the safekeeping of the Borrower Collateral, (ii) any loss or
      damage thereto occurring or arising in any manner or fashion from any
      cause, (iii) any diminution in the value thereof, or (iv) any act or
      default of any carrier, warehouseman, bailee, forwarding agency, or
      other Person, and (b) all risk of loss, damage, or destruction of the
      Borrower Collateral shall be borne by Borrower.
    

    
      -72-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        11.3  Indemnification.  Borrower
      shall pay, indemnify, defend, and hold the Agent-Related Persons, the
      Lender-Related Persons with respect to each Lender, each Participant
      (each, an “Indemnified Person”) harmless (to the fullest
      extent permitted by applicable law) from and against any and all claims,
      demands, suits, actions, investigations, proceedings, liabilities,
      costs, penalties, and damages, and all reasonable fees and disbursements
      of attorneys, experts and consultants and other reasonable costs and
      expenses actually incurred in connection therewith or in connection with
      the enforcement of this indemnification (as and when they are incurred
      and irrespective of whether suit is brought), at any time asserted
      against, imposed upon, or incurred by any of them (a) in connection with
      or as a result of or related to the execution, delivery, enforcement,
      performance, or administration (including any restructuring or workout
      with respect hereto) of this Agreement, any of the other Loan Documents,
      or the transactions contemplated hereby or thereby or the monitoring of
      Borrower’s and its Subsidiaries’ compliance with the terms of the Loan
      Documents, (b) with respect to any investigation, litigation, or
      proceeding related to this Agreement, any other Loan Document, or the
      use of the proceeds of the credit provided hereunder (irrespective of
      whether any Indemnified Person is a party thereto), or any act,
      omission, event, or circumstance in any manner related thereto, and
      (c) in connection with or arising out of any presence or release of
      Hazardous Materials at, on, under, to or from any assets or properties
      owned, leased or operated by Borrower or any of its Subsidiaries or any
      Environmental Actions, Environmental Liabilities and Costs or Remedial
      Actions related in any way to any such assets or properties of Borrower
      or any of its Subsidiaries (all the foregoing, collectively, the “Indemnified
      Liabilities”).  The foregoing to the contrary notwithstanding,
      Borrower shall have no obligation to any Indemnified Person under this Section
      11.3 with respect to any Indemnified Liability that a court of
      competent jurisdiction finally determines to have resulted from the
      gross negligence or willful misconduct of such Indemnified Person.  This
      provision shall survive the termination of this Agreement and the
      repayment of the Obligations.  If any Indemnified Person makes any
      payment to any other Indemnified Person with respect to an Indemnified
      Liability as to which Borrower was required to indemnify the Indemnified
      Person receiving such payment, the Indemnified Person making such
      payment is entitled to be indemnified and reimbursed by Borrower with
      respect thereto.  WITHOUT LIMITATION, THE FOREGOING
      INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO
      INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE
      OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF
      ANY OTHER PERSON.
    

    
      12.  NOTICES.
    

    
      Unless otherwise provided in this Agreement, all notices or demands by
      Borrower or Agent to the other relating to this Agreement or any other
      Loan Document shall be in writing and (except for financial statements
      and other informational documents which may be sent by first-class mail,
      postage prepaid) shall be personally delivered or sent by registered or
      certified mail (postage prepaid, return receipt requested), overnight
      courier, electronic mail (at such email addresses as Borrower or Agent,
      as applicable, may designate to each other in accordance herewith), or
      telefacsimile to Borrower or Agent, as the case may be, at its address
      set forth below:
    

    
                          If to Borrower:     Hercules Funding II LLC
                                                
       c/o Hercules Technology Growth Capital, Inc.
                                                  400
      Hamilton Avenue, Suite 310
                                                  Palo
      Alto, California  94301
                                                  Attn:  Chief
      Executive Officer and Chief Financial Officer
                                                  Fax
      No.  650-473-9194
    

    
      -73-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      with copies to:         Hercules Funding II LLC
                              c/o
      Hercules Technology Growth Capital, Inc.
                             
      400 Hamilton Avenue, Suite 310
                              Palo
      Alto, California  94301
                              Attn:  Chief
      Legal Officer
                              Fax No.  650-473-9194

    

    
                          If to Agent:              Wells Fargo Foothill, LLC
                                                  14241
      Dallas Parkway, Suite 1300
                                                  Dallas,
      Texas  75244
                                                  Attn:
      Loan Portfolio Manager – Hercules Technology
                                                  Fax
      No.  972-387-5775
    

    
                          with copies to:         McDermott Will & Emery LLP
                                                  3150
      Porter Drive
                                                  Palo
      Alto, California  94304
                                                  Attn:     Dick
      M. Okada, Esq.
                                                  Fax
      No.  650-813-5100
    

    

    

    
      Agent and Borrower may change the address at which they are to receive
      notices hereunder, by notice in writing in the foregoing manner given to
      the other party.  All notices or demands sent in accordance with this Section
      12, other than notices by Agent in connection with enforcement
      rights against the Borrower Collateral under the provisions of the Code,
      shall be deemed received on the earlier of the date of actual receipt or
      three (3) Business Days after the deposit thereof in the mail as
      provided herein, or if sent by facsimile when sent with receipt
      confirmed by the recipient.  Borrower acknowledges and agrees that
      notices sent by the Lender Group in connection with the exercise of
      enforcement rights against Borrower Collateral under the provisions of
      the Code shall be deemed sent when deposited in the mail or personally
      delivered, or, where permitted by law, transmitted by telefacsimile or
      any other method set forth above.
    

    
      13.  CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.
    

    
      (a)  THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN
      DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN
      DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION,
      INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF
      THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING
      HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED
      UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF NEW YORK.
    

    
      -74-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b)  THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS
      ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
      SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT
      PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF NEW
      YORK, STATE OF NEW YORK, PROVIDED, HOWEVER, THAT ANY SUIT
      SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
      BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE
      AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER
      PROPERTY MAY BE FOUND.  BORROWER AND EACH MEMBER OF THE LENDER GROUP
      WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY
      HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS
      OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
      ACCORDANCE WITH THIS SECTION 13(b).
    

    
      (c)  BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY
      WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
      ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF
      THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT
      CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY
      CLAIMS.  BORROWER AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT
      EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES
      ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  IN THE
      EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN
      CONSENT TO A TRIAL BY THE COURT.
    

    
      14.  ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.
    

    
        14.1  Assignments and Participations
    

    
      (a)  Any Lender may assign and delegate to one or more assignees (each
      an “Assignee”) that are Eligible Transferees all or any
      portion of the Obligations, the Commitments and the other rights and
      obligations of such Lender hereunder and under the other Loan Documents,
      in a minimum amount (unless waived by the Agent) of $5,000,000 (except
      such minimum amount shall not apply to (x) an assignment or delegation
      by any Lender to any other Lender or an Affiliate of any Lender or (y) a
      group of new Lenders, each of whom is an Affiliate of each other or a
      fund or account managed by any such new Lender or an Affiliate of such
      new Lender to the extent that the aggregate amount to be assigned to all
      such new Lenders is at least $5,000,000); provided, however,
      that Borrower and Agent may continue to deal solely and directly with
      such Lender in connection with the interest so assigned to an Assignee
      until (i) written notice of such assignment, together with payment
      instructions, addresses, and related information with respect to the
      Assignee, have been given to Borrower and Agent by such Lender and the
      Assignee, (ii) such Lender and its Assignee have delivered to Borrower
      and Agent an Assignment and Acceptance and Agent has notified the
      assigning Lender of its receipt thereof in accordance with Section
      14.1(b), and (iii) unless waived by the Agent, the assigning Lender
      or Assignee has paid to Agent for Agent’s separate account a processing
      fee in the amount of $5,000.  Anything contained herein to the contrary
      notwithstanding, the payment of any fees shall not be required and the
      Assignee need not be an Eligible Transferee if such assignment is in
      connection with any merger, consolidation, sale, transfer, or other
      disposition of all or any substantial portion of the business or loan
      portfolio of the assigning Lender.
    

    
      -75-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b)  From and after the date that Agent notifies the assigning Lender
      (with a copy to Borrower) that it has received an executed Assignment
      and Acceptance and, if applicable, payment of the required processing
      fee, (i) the Assignee thereunder shall be a party hereto and, to the
      extent that rights and obligations hereunder have been assigned to it
      pursuant to such Assignment and Acceptance, shall have the rights and
      obligations of a Lender under the Loan Documents, and (ii) the assigning
      Lender shall, to the extent that rights and obligations hereunder and
      under the other Loan Documents have been assigned by it pursuant to such
      Assignment and Acceptance, relinquish its rights (except with respect to Section
      11.3 hereof) and be released from any future obligations under this
      Agreement (and in the case of an Assignment and Acceptance covering all
      or the remaining portion of an assigning Lender’s rights and obligations
      under this Agreement and the other Loan Documents, such Lender shall
      cease to be a party hereto and thereto), and such assignment shall
      effect a novation among Borrower, the assigning Lender, and the
      Assignee; provided, however, that nothing contained herein
      shall release any assigning Lender from obligations that survive the
      termination of this Agreement, including such assigning Lender’s
      obligations under Section 16 and Section 17.7(a) of this
      Agreement.
    

    
      (c)  By executing and delivering an Assignment and Acceptance, the
      assigning Lender thereunder and the Assignee thereunder confirm to and
      agree with each other and the other parties hereto as follows:  (i)
      other than as provided in such Assignment and Acceptance, such assigning
      Lender makes no representation or warranty and assumes no responsibility
      with respect to any statements, warranties or representations made in or
      in connection with this Agreement or the execution, legality, validity,
      enforceability, genuineness, sufficiency or value of this Agreement or
      any other Loan Document furnished pursuant hereto, (ii) such assigning
      Lender makes no representation or warranty and assumes no responsibility
      with respect to the financial condition of Borrower or the performance
      or observance by Borrower of any of its obligations under this Agreement
      or any other Loan Document furnished pursuant hereto, (iii) such
      Assignee confirms that it has received a copy of this Agreement,
      together with such other documents and information as it has deemed
      appropriate to make its own credit analysis and decision to enter into
      such Assignment and Acceptance, (iv) such Assignee will, independently
      and without reliance upon Agent, such assigning Lender or any other
      Lender, and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own credit decisions in
      taking or not taking action under this Agreement, (v) such Assignee
      appoints and authorizes Agent to take such actions and to exercise such
      powers under this Agreement as are delegated to Agent, by the terms
      hereof, together with such powers as are reasonably incidental thereto,
      and (vi) such Assignee agrees that it will perform all of the
      obligations which by the terms of this Agreement are required to be
      performed by it as a Lender.
    

    
      (d)  Immediately upon Agent’s receipt of the required processing fee, if
      applicable, and delivery of notice to the assigning Lender pursuant to Section
      14.1(b), this Agreement shall be deemed to be amended to the extent,
      but only to the extent, necessary to reflect the addition of the
      Assignee and the resulting adjustment of the Commitments arising
      therefrom.  The Commitment allocated to each Assignee shall reduce such
      Commitments of the assigning Lender pro tanto.
    

    
      -76-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (e)  Any Lender may at any time sell to one or more commercial banks,
      financial institutions, or other Persons (a “Participant”)
      participating interests in all or any portion of its Obligations, its
      Commitment, and the other rights and interests of that Lender (the “Originating
      Lender”) hereunder and under the other Loan Documents; provided,
      however, that (i) the Originating Lender shall remain a “Lender”
      for all purposes of this Agreement and the other Loan Documents and the
      Participant receiving the participating interest in the Obligations, the
      Commitments, and the other rights and interests of the Originating
      Lender hereunder shall not constitute a “Lender” hereunder or under the
      other Loan Documents and the Originating Lender’s obligations under this
      Agreement shall remain unchanged, (ii) the Originating Lender shall
      remain solely responsible for the performance of such obligations,
      (iii) Borrower, Agent, and the Lenders shall continue to deal solely and
      directly with the Originating Lender in connection with the Originating
      Lender’s rights and obligations under this Agreement and the other Loan
      Documents, (iv) no Lender shall transfer or grant any participating
      interest under which the Participant has the right to approve any
      amendment to, or any consent or waiver with respect to, this Agreement
      or any other Loan Document, except to the extent such amendment to, or
      consent or waiver with respect to this Agreement or of any other Loan
      Document would (A) extend the final maturity date of the Obligations
      hereunder in which such Participant is participating, (B) reduce the
      interest rate applicable to the Obligations hereunder in which such
      Participant is participating, (C) release all or substantially all of
      the Collateral or guaranties (except to the extent expressly provided
      herein or in any of the Loan Documents) supporting the Obligations
      hereunder in which such Participant is participating, (D) postpone the
      payment of, or reduce the amount of, the interest or fees payable to
      such Participant through such Lender, or (E) change the amount or due
      dates of scheduled principal repayments or prepayments or premiums, and
      (v) all amounts payable by Borrower hereunder shall be determined as if
      such Lender had not sold such participation, except that, if amounts
      outstanding under this Agreement are due and unpaid, or shall have been
      declared or shall have become due and payable upon the occurrence of an
      Event of Default, each Participant shall be deemed to have the right of
      set-off in respect of its participating interest in amounts owing under
      this Agreement to the same extent as if the amount of its participating
      interest were owing directly to it as a Lender under this
      Agreement.  The rights of any Participant only shall be derivative
      through the Originating Lender with whom such Participant participates
      and no Participant shall have any rights under this Agreement or the
      other Loan Documents or any direct rights as to the other Lenders,
      Agent, Borrower, the Collections, the Collateral, or otherwise in
      respect of the Obligations.  No Participant shall have the right to
      participate directly in the making of decisions by the Lenders among
      themselves.
    

    
      (f)  In connection with any such assignment or participation or proposed
      assignment or participation, a Lender may, subject to the provisions of Section
      17.7,  disclose all documents and information which it now or
      hereafter may have relating to Borrower and its Subsidiaries and their
      respective businesses.
    

    
      (g)  Any other provision in this Agreement notwithstanding, any Lender
      may at any time create a security interest in, or pledge, all or any
      portion of its rights under and interest in this Agreement in favor of
      any Federal Reserve Bank in accordance with Regulation A of the Federal
      Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such
      Federal Reserve Bank may enforce such pledge or security interest in any
      manner permitted under applicable law.
    

    
      -77-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        14.2  Successors.  This Agreement
      shall bind and inure to the benefit of the respective successors and
      assigns of each of the parties; provided, however, that
      Borrower may not assign this Agreement or any rights or duties hereunder
      without the Lenders’ prior written consent and any prohibited assignment
      shall be absolutely void ab initio.  No consent to assignment by the
      Lenders shall release Borrower from its Obligations.  A Lender may
      assign this Agreement and the other Loan Documents and its rights and
      duties hereunder and thereunder pursuant to Section 14.1 hereof
      and, except as expressly required pursuant to Section 14.1
      hereof, no consent or approval by Borrower is required in connection
      with any such assignment.
    

    
      15.  AMENDMENTS; WAIVERS.
    

    
        15.1  Amendments and Waivers.  No
      amendment or waiver of any provision of this Agreement or any other Loan
      Document (other than Bank Product Agreements or the Fee Letter), and no
      consent with respect to any departure by Borrower therefrom, shall be
      effective unless the same shall be in writing and signed by the Required
      Lenders (or by Agent at the written request of the Required Lenders) and
      Borrower and then any such waiver or consent shall be effective, but
      only in the specific instance and for the specific purpose for which
      given; provided, however, that no such waiver, amendment,
      or consent shall, unless in writing and signed by all of the Lenders
      directly affected thereby and Borrower, do any of the following:
    

    
      (a)  increase or extend any Commitment of any Lender,
    

    
      (b)  postpone or delay any date fixed by this Agreement or any other
      Loan Document for any payment of principal, interest, fees, or other
      amounts due hereunder or under any other Loan Document,
    

    
      (c)  reduce the principal of, or the rate of interest on, any loan or
      other extension of credit hereunder, or reduce any fees or other amounts
      payable hereunder or under any other Loan Document,
    

    
      (d)  change the Pro Rata Share that is required to take any action
      hereunder,
    

    
      (e)  amend or modify this Section or any provision of this Agreement
      providing for consent or other action by all Lenders,
    

    
      (f)  other than as permitted by Section 16.12, release
      Agent’s Lien in and to any of the Collateral;
    

    
      (g)  change the definition of “Required Lenders” or “Pro Rata Share”,
    

    
      (h)  contractually subordinate any of the Agent’s Liens,
    

    
      (i)  release Borrower or any Guarantor from any obligation for the
      payment of money,
    

    
      -78-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (j)  change the definitions of Borrowing Base, Eligible Note Receivables
      or Maximum Revolver Amount;
    

    
      (k)  amend any of the provisions of Section 2.1(b) or Section
      2.3(b)(i),
    

    
      (l)  amend any of the provisions of Section 16;
    

    
      and, provided further, however, that no amendment, waiver
      or consent shall, unless in writing and signed by Agent or Swing Lender,
      as applicable, affect the rights or duties of Agent or Swing Lender, as
      applicable, under this Agreement or any other Loan Document.  The
      foregoing notwithstanding, any amendment, modification, waiver, consent,
      termination, or release of, or with respect to, any provision of this
      Agreement or any other Loan Document that relates only to the
      relationship of the Lender Group among themselves, and that does not
      affect the rights or obligations of Borrower, shall not require consent
      by or the agreement of Borrower.
    

    
        15.2  Replacement of Holdout Lender.
    

    
      (a)  If any action to be taken by the Lender Group or Agent hereunder
      requires the unanimous consent, authorization, or agreement of all
      Lenders, and a Lender (“Holdout Lender”) fails to give its
      consent, authorization, or agreement, then Agent, upon at least 5
      Business Days prior irrevocable notice to the Holdout Lender, may
      permanently replace the Holdout Lender with one or more substitute
      Lenders (each, a “Replacement Lender”), and the Holdout
      Lender shall have no right to refuse to be replaced hereunder.  Such
      notice to replace the Holdout Lender shall specify an effective date for
      such replacement, which date shall not be later than 15 Business Days
      after the date such notice is given.
    

    
      (b)  Prior to the effective date of such replacement, the Holdout Lender
      and each Replacement Lender shall execute and deliver an Assignment and
      Acceptance Agreement, subject only to the Holdout Lender being repaid
      its share of the outstanding Obligations without any premium or penalty
      of any kind whatsoever.  If the Holdout Lender shall refuse or fail to
      execute and deliver any such Assignment and Acceptance Agreement prior
      to the effective date of such replacement, the Holdout Lender shall be
      deemed to have executed and delivered such Assignment and Acceptance
      Agreement.  The replacement of any Holdout Lender shall be made in
      accordance with the terms of Section 14.1.  Until such time as
      the Replacement Lenders shall have acquired all of the Obligations, the
      Commitments, and the other rights and obligations of the Holdout Lender
      hereunder and under the other Loan Documents, the Holdout Lender shall
      remain obligated to make the Holdout Lender’s Pro Rata Share of Advances.
    

    
        15.3  No Waivers; Cumulative Remedies.  No
      failure by Agent or any Lender to exercise any right, remedy, or option
      under this Agreement or any other Loan Document, or delay by Agent or
      any Lender in exercising the same, will operate as a waiver thereof.  No
      waiver by Agent or any Lender will be effective unless it is in writing,
      and then only to the extent specifically stated.  No waiver by Agent or
      any Lender on any occasion shall affect or diminish Agent’s and each
      Lender’s rights thereafter to require strict performance by Borrower of
      any provision of this Agreement.  Agent’s and each Lender’s rights under
      this Agreement and the other Loan Documents will be cumulative and not
      exclusive of any other right or remedy that Agent or any Lender may have.
    

    
      -79-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      16.  AGENT; THE LENDER GROUP.
    

    
        16.1  Appointment and Authorization
      of Agent.  Each Lender hereby designates and appoints WFF as its
      representative under this Agreement and the other Loan Documents and
      each Lender hereby irrevocably authorizes Agent to execute and deliver
      each of the other Loan Documents on its behalf and to take such other
      action on its behalf under the provisions of this Agreement and each
      other Loan Document and to exercise such powers and perform such duties
      as are expressly delegated to Agent by the terms of this Agreement or
      any other Loan Document, together with such powers as are reasonably
      incidental thereto.  Agent agrees to act as such on the express
      conditions contained in this Section 16.  The provisions of this Section
      16 (other than the proviso to Section 16.11(e)) are solely
      for the benefit of Agent, and the Lenders, and Borrower and its
      Subsidiaries shall have no rights as a third party beneficiary of any of
      the provisions contained herein.  Any provision to the contrary
      contained elsewhere in this Agreement or in any other Loan Document
      notwithstanding, Agent shall not have any duties or responsibilities,
      except those expressly set forth herein, nor shall Agent have or be
      deemed to have any fiduciary relationship with any Lender, and no
      implied covenants, functions, responsibilities, duties, obligations or
      liabilities shall be read into this Agreement or any other Loan Document
      or otherwise exist against Agent; it being expressly understood and
      agreed that the use of the word “Agent” is for convenience only, that
      WFF is merely the representative of the Lenders, and only has the
      contractual duties set forth herein.  Except as expressly otherwise
      provided in this Agreement, Agent shall have and may use its sole
      discretion with respect to exercising or refraining from exercising any
      discretionary rights or taking or refraining from taking any actions
      that Agent expressly is entitled to take or assert under or pursuant to
      this Agreement and the other Loan Documents.  Without limiting the
      generality of the foregoing, or of any other provision of the Loan
      Documents that provides rights or powers to Agent, Lenders agree that
      Agent shall have the right to exercise the following powers as long as
      this Agreement remains in effect:  (a) maintain, in accordance with its
      customary business practices, ledgers and records reflecting the status
      of the Obligations, the Collateral, the Collections, and related
      matters, (b) execute or file any and all financing or similar statements
      or notices, amendments, renewals, supplements, documents, instruments,
      proofs of claim, notices and other written agreements with respect to
      the Loan Documents, (c) make Advances, for itself or on behalf of
      Lenders as provided in the Loan Documents, (d) exclusively receive,
      apply, and distribute the Collections as provided in the Loan Documents,
      (e) open and maintain such bank accounts and cash management
      arrangements as Agent deems necessary and appropriate in accordance with
      the Loan Documents for the foregoing purposes with respect to the
      Collateral and the Collections, (f) perform, exercise, and enforce any
      and all other rights and remedies of the Lender Group with respect to
      Borrower, the Obligations, the Collateral, the Collections, or otherwise
      related to any of same as provided in the Loan Documents, and (g) incur
      and pay such Lender Group Expenses as Agent may deem necessary or
      appropriate for the performance and fulfillment of its functions and
      powers pursuant to the Loan Documents.
    

    
        16.2  Delegation of Duties.  Agent
      may execute any of its duties under this Agreement or any other Loan
      Document by or through agents, employees or attorneys-in-fact and shall
      be entitled to advice of counsel concerning all matters pertaining to
      such duties.  Agent shall not be responsible for the negligence or
      misconduct of any agent or attorney-in-fact that it selects as long as
      such selection was made without gross negligence or willful misconduct.  
    

    
      -80-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        16.3  Liability of Agent.  None
      of the Agent-Related Persons shall (a) be liable for any action taken or
      omitted to be taken by any of them under or in connection with this
      Agreement or any other Loan Document or the transactions contemplated
      hereby (except for its own gross negligence or willful misconduct), or
      (b) be responsible in any manner to any of the Lenders for any recital,
      statement, representation or warranty made by Borrower or any Subsidiary
      or Affiliate of Borrower, or any officer or director thereof, contained
      in this Agreement or in any other Loan Document, or in any certificate,
      report, statement or other document referred to or provided for in, or
      received by Agent under or in connection with, this Agreement or any
      other Loan Document, or the validity, effectiveness, genuineness,
      enforceability or sufficiency of this Agreement or any other Loan
      Document, or for any failure of Borrower or any other party to any Loan
      Document to perform its obligations hereunder or thereunder.  No
      Agent-Related Person shall be under any obligation to any Lender to
      ascertain or to inquire as to the observance or performance of any of
      the agreements contained in, or conditions of, this Agreement or any
      other Loan Document, or to inspect the Books or properties of Borrower
      or the books or records or properties of any of Borrower’s Subsidiaries
      or Affiliates.
    

    
        16.4  Reliance by Agent.  Agent
      shall be entitled to rely, and shall be fully protected in relying, upon
      any writing, resolution, notice, consent, certificate, affidavit,
      letter, telegram, telefacsimile or other electronic method of
      transmission, telex or telephone message, statement or other document or
      conversation believed by it to be genuine and correct and to have been
      signed, sent, or made by the proper Person or Persons, and upon advice
      and statements of legal counsel (including counsel to Borrower or
      counsel to any Lender), independent accountants and other experts
      selected by Agent.  Agent shall be fully justified in failing or
      refusing to take any action under this Agreement or any other Loan
      Document unless Agent shall first receive such advice or concurrence of
      the Lenders as it deems appropriate and until such instructions are
      received, Agent shall act, or refrain from acting, as it deems
      advisable.  If Agent so requests, it shall first be indemnified to its
      reasonable satisfaction by the Lenders against any and all liability and
      expense that may be incurred by it by reason of taking or continuing to
      take any such action.  Agent shall in all cases be fully protected in
      acting, or in refraining from acting, under this Agreement or any other
      Loan Document in accordance with a request or consent of the requisite
      Lenders and such request and any action taken or failure to act pursuant
      thereto shall be binding upon all of the Lenders.
    

    
        16.5  Notice of Default or Event of Default.  Agent
      shall not be deemed to have knowledge or notice of the occurrence of any
      Default or Event of Default, except with respect to defaults in the
      payment of principal, interest, fees, and expenses required to be paid
      to Agent for the account of the Lenders and, except with respect to
      Events of Default of which Agent has actual knowledge, unless Agent
      shall have received written notice from a Lender or Borrower referring
      to this Agreement, describing such Default or Event of Default, and
      stating that such notice is a “notice of default.”  Agent promptly will
      notify the Lenders of its receipt of any such notice or of any Event of
      Default of which Agent has actual knowledge.  If any Lender obtains
      actual knowledge of any Event of Default, such Lender promptly shall
      notify the other Lenders and Agent of such Event of Default.  Each
      Lender shall be solely responsible for giving any notices to its
      Participants, if any.  Subject to Section 16.4, Agent
      shall take such action with respect to such Default or Event of Default
      as may be requested by the Required Lenders in accordance with Section
      9; provided, however, that unless and until Agent has
      received any such request, Agent may (but shall not be obligated to)
      take such action, or refrain from taking such action, with respect to
      such Default or Event of Default as it shall deem advisable.
    

    
      -81
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        16.6  Credit Decision.  Each
      Lender acknowledges that none of the Agent-Related Persons has made any
      representation or warranty to it, and that no act by Agent hereinafter
      taken, including any review of the affairs of Borrower and its
      Subsidiaries or Affiliates, shall be deemed to constitute any
      representation or warranty by any Agent-Related Person to any
      Lender.  Each Lender represents to Agent that it has, independently and
      without reliance upon any Agent-Related Person and based on such
      documents and information as it has deemed appropriate, made its own
      appraisal of and investigation into the business, prospects, operations,
      property, financial and other condition and creditworthiness of Borrower
      and any other Person party to a Loan Document, and all applicable bank
      regulatory laws relating to the transactions contemplated hereby, and
      made its own decision to enter into this Agreement and to extend credit
      to Borrower.  Each Lender also represents that it will, independently
      and without reliance upon any Agent-Related Person and based on such
      documents and information as it shall deem appropriate at the time,
      continue to make its own credit analysis, appraisals and decisions in
      taking or not taking action under this Agreement and the other Loan
      Documents, and to make such investigations as it deems necessary to
      inform itself as to the business, prospects, operations, property,
      financial and other condition and creditworthiness of Borrower and any
      other Person party to a Loan Document.  Except for notices, reports, and
      other documents expressly herein required to be furnished to the Lenders
      by Agent, Agent shall not have any duty or responsibility to provide any
      Lender with any credit or other information concerning the business,
      prospects, operations, property, financial and other condition or
      creditworthiness of Borrower and any other Person party to a Loan
      Document that may come into the possession of any of the Agent-Related
      Persons.
    

    
        16.7  Costs and Expenses;
      Indemnification.  Agent may incur and pay Lender Group Expenses
      to the extent Agent reasonably deems necessary or appropriate for the
      performance and fulfillment of its functions, powers, and obligations
      pursuant to the Loan Documents, including court costs, attorneys fees
      and expenses, fees and expenses of financial accountants, advisors,
      consultants, and appraisers, costs of collection by outside collection
      agencies, auctioneer fees and expenses, and costs of security guards or
      insurance premiums paid to maintain the Collateral, whether or not
      Borrower is obligated to reimburse Agent or Lenders for such expenses
      pursuant to this Agreement or otherwise.  Agent is authorized and
      directed to deduct and retain sufficient amounts from the Collections
      received by Agent to reimburse Agent for such out-of-pocket costs and
      expenses prior to the distribution of any amounts to Lenders.  In the
      event Agent is not reimbursed for such costs and expenses by Borrower,
      each Lender hereby agrees that it is and shall be obligated to pay to
      Agent such Lender’s Pro Rata Share thereof.  Whether or not the
      transactions contemplated hereby are consummated, the Lenders shall
      indemnify upon demand the Agent-Related Persons (to the extent not
      reimbursed by or on behalf of Borrower and without limiting the
      obligation of Borrower to do so), according to their Pro Rata Shares,
      from and against any and all Indemnified Liabilities; provided, however,
      that no Lender shall be liable for the payment to any Agent-Related
      Person of any portion of such Indemnified Liabilities resulting solely
      from such Person’s gross negligence or willful misconduct nor shall any
      Lender be liable for the obligations of any Defaulting Lender in failing
      to make an Advance or other extension of credit hereunder.  Without
      limitation of the foregoing, each Lender shall reimburse Agent upon
      demand for such Lender’s Pro Rata Share of any costs or out-of-pocket
      expenses (including attorneys, accountants, advisors, and consultants
      fees and expenses) incurred by Agent in connection with the preparation,
      execution, delivery, administration, modification, amendment, or
      enforcement (whether through negotiations, legal proceedings or
      otherwise) of, or legal advice in respect of rights or responsibilities
      under, this Agreement, any other Loan Document, or any document
      contemplated by or referred to herein, to the extent that Agent is not
      reimbursed for such expenses by or on behalf of Borrower.  The
      undertaking in this Section shall survive the payment of all Obligations
      hereunder and the resignation or replacement of Agent.
    

    
      -82-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        16.8  Agent in Individual Capacity.  WFF
      and its Affiliates may make loans to, issue letters of credit for the
      account of, accept deposits from, acquire equity interests in, and
      generally engage in any kind of banking, trust, financial advisory,
      underwriting, or other business with Borrower and its Subsidiaries and
      Affiliates and any other Person party to any Loan Documents as though
      WFF were not Agent hereunder, and, in each case, without notice to or
      consent of the other members of the Lender Group.  The other members of
      the Lender Group acknowledge that, pursuant to such activities, WFF or
      its Affiliates may receive information regarding Borrower or its
      Affiliates and any other Person party to any Loan Documents that is
      subject to confidentiality obligations in favor of Borrower or such
      other Person and that prohibit the disclosure of such information to the
      Lenders, and the Lenders acknowledge that, in such circumstances (and in
      the absence of a waiver of such confidentiality obligations, which
      waiver Agent will use its reasonable best efforts to obtain), Agent
      shall not be under any obligation to provide such information to
      them.  The terms “Lender” and “Lenders” include WFF in its individual
      capacity.
    

    
        16.9  Successor Agent.  Agent
      may resign as Agent upon 45 days notice to the Lenders (unless such
      notice is waived by the Required Lenders).  If Agent resigns under this
      Agreement, the Required Lenders shall appoint a successor Agent for the
      Lenders.  If no successor Agent is appointed prior to the effective date
      of the resignation of Agent, Agent may appoint, after consulting with
      the Lenders, a successor Agent.  If Agent has materially breached or
      failed to perform any material provision of this Agreement or of
      applicable law, the Required Lenders may agree in writing to remove and
      replace Agent with a successor Agent from among the Lenders.  In any
      such event, upon the acceptance of its appointment as successor Agent
      hereunder, such successor Agent shall succeed to all the rights, powers,
      and duties of the retiring Agent and the term “Agent” shall mean such
      successor Agent and the retiring Agent’s appointment, powers, and duties
      as Agent shall be terminated.  After any retiring Agent’s resignation
      hereunder as Agent, the provisions of this Section 16 shall inure
      to its benefit as to any actions taken or omitted to be taken by it
      while it was Agent under this Agreement.  If no successor Agent has
      accepted appointment as Agent by the date which is 45 days following a
      retiring Agent’s notice of resignation, the retiring Agent’s resignation
      shall nevertheless thereupon become effective and the Lenders shall
      perform all of the duties of Agent hereunder until such time, if any, as
      the Lenders appoint a successor Agent as provided for above.
    

    
       16.10  Lender in Individual Capacity.  Any
      Lender and its respective Affiliates may make loans to, issue letters of
      credit for the account of, accept deposits from, acquire equity
      interests in and generally engage in any kind of banking, trust,
      financial advisory, underwriting or other business with Borrower and its
      Subsidiaries and Affiliates and any other Person party to any Loan
      Documents as though such Lender were not a Lender hereunder without
      notice to or consent of the other members of the Lender Group.  The
      other members of the Lender Group acknowledge that, pursuant to such
      activities, such Lender and its respective Affiliates may receive
      information regarding Borrower or its Affiliates and any other Person
      party to any Loan Documents that is subject to confidentiality
      obligations in favor of Borrower or such other Person and that prohibit
      the disclosure of such information to the Lenders, and the Lenders
      acknowledge that, in such circumstances (and in the absence of a waiver
      of such confidentiality obligations, which waiver such Lender will use
      its reasonable best efforts to obtain), such Lender shall not be under
      any obligation to provide such information to them.  With respect to the
      Swing Loans and Agent Advances, Swing Lender shall have the same rights
      and powers under this Agreement as any other Lender and may exercise the
      same as though it were not the sub-agent of Agent.
    

    
      -83-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
       16.11  Withholding Taxes.  
    

    
      (a)  All payments made by Borrower hereunder or under any note or other
      Loan Document will be made without setoff, counterclaim, or other
      defense.  In addition, all such payments will be made free and clear of,
      and without deduction or withholding for, any present or future Taxes,
      and in the event any deduction or withholding of Taxes is required,
      Borrower shall comply with the penultimate sentence of this Section
      16.11(a).  “Taxes” shall mean, any taxes,
      levies, imposts, duties, fees, assessments or other charges of whatever
      nature now or hereafter imposed by any jurisdiction or by any political
      subdivision or taxing authority thereof or therein with respect to such
      payments (but excluding any tax imposed by any jurisdiction or by any
      political subdivision or taxing authority thereof or therein measured by
      or based on the net income or net profits of any Lender) and all
      interest, penalties or similar liabilities with respect thereto.  If any
      Taxes are so levied or imposed, Borrower agrees to pay the full amount
      of such Taxes and such additional amounts as may be necessary so that
      every payment of all amounts due under this Agreement, any note, or Loan
      Document, including any amount paid pursuant to this Section 16.11(a)
      after withholding or deduction for or on account of any Taxes, will not
      be less than the amount provided for herein; provided, however,
      that Borrower shall not be required to increase any such amounts if the
      increase in such amount payable results from Agent’s or such Lender’s
      own willful misconduct or gross negligence (as finally determined by a
      court of competent jurisdiction).  Borrower will furnish to Agent as
      promptly as possible after the date the payment of any Tax is due
      pursuant to applicable law certified copies of tax receipts evidencing
      such payment by Borrower.
    

    
      (b)  If a Lender claims an exemption from United States withholding tax,
      such Lender agrees with and in favor of Agent and Borrower, to deliver
      to Agent:
    

    
      (i)  if such Lender claims an exemption from United States withholding
      tax pursuant to its portfolio interest exception, (A) a statement of the
      Lender, signed under penalty of perjury, that it is not a (I) a “bank”
      as described in Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder
      of Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or
      (III) a controlled foreign corporation related to Borrower within the
      meaning of Section 864(d)(4) of the IRC, and (B) a properly completed
      and executed IRS Form W-8BEN, before receiving its first payment under
      this Agreement and at any other time reasonably requested by Agent or
      Borrower;
    

    
      (ii)  if such Lender claims an exemption from, or a reduction of,
      withholding tax under a United States tax treaty, properly completed and
      executed IRS Form W-8BEN before receiving its first payment under this
      Agreement and at any other time reasonably requested by Agent or
      Borrower;
    

    
      -84-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (iii)  if such Lender claims that interest paid under this Agreement is
      exempt from United States withholding tax because it is effectively
      connected with a United States trade or business of such Lender, two
      properly completed and executed copies of IRS Form W-8ECI before
      receiving its first payment under this Agreement and at any other time
      reasonably requested by Agent or Borrower; or
    

    
      (iv)  such other form or forms, including IRS Form W-9, as may be
      required under the IRC or other laws of the United States as a condition
      to exemption from, or reduction of, United States withholding or backup
      withholding tax before receiving its first payment under this Agreement
      and at any other time reasonably requested by Agent or Borrower.
    

    
      Such Lender agrees promptly to notify Agent and Borrower of any change
      in circumstances which would modify or render invalid any claimed
      exemption or reduction.
    

    
      (c)  If a Lender claims an exemption from withholding tax in a
      jurisdiction other than the United States, such Lender agrees with and
      in favor of Agent and Borrower, to deliver to Agent any such form or
      forms, as may be required under the laws of such jurisdiction as a
      condition to exemption from, or reduction of, foreign withholding or
      backup withholding tax before receiving its first payment under this
      Agreement and at any other time reasonably requested by Agent or
      Borrower.
    

    
      Such Lender agrees promptly to notify Agent and Borrower of any change
      in circumstances which would modify or render invalid any claimed
      exemption or reduction.
    

    
      (d)  If any Lender claims exemption from, or reduction of, withholding
      tax and such Lender sells, assigns, grants a participation in, or
      otherwise transfers all or part of the Obligations of Borrower to such
      Lender, such Lender agrees to notify Agent and Borrower of  the
      percentage amount in which it is no longer the beneficial owner of
      Obligations of Borrower to such Lender.  To the extent of such
      percentage amount, Agent and Borrower will treat such Lender’s
      documentation provided pursuant to Sections 16.11(b) or 16.11(c)
      as no longer valid.  With respect to such percentage amount, such Lender
      may provide new documentation, pursuant to Sections 16.11(b) or 16.11(c),
      if applicable.
    

    
      (e)  if any Lender is entitled to a reduction in the applicable
      withholding tax, Agent may withhold from any interest payment to such
      Lender an amount equivalent to the applicable withholding tax after
      taking into account such reduction.  If the forms or other documentation
      required by Sections 16.11(b) or 16.11(c) are not
      delivered to Agent, then Agent may withhold from any interest payment to
      such Lender not providing such forms or other documentation an amount
      equivalent to the applicable withholding tax.
    

    
      (f)  If the IRS or any other Governmental Authority of the United States
      or other jurisdiction asserts a claim that Agent did not properly
      withhold tax from amounts paid to or for the account of any Lender due
      to a failure on the part of the Lender (because the appropriate form was
      not delivered, was not properly executed, or because such Lender failed
      to notify Agent of a change in circumstances which rendered the
      exemption from, or reduction of, withholding tax ineffective, or for any
      other reason) such Lender shall indemnify and hold Agent harmless for
      all amounts paid, directly or indirectly, by Agent, as tax or otherwise,
      including penalties and interest, and including any taxes imposed by any
      jurisdiction on the amounts payable to Agent under this Section 16.11,
      together with all costs and expenses (including attorneys fees and
      expenses).  The obligation of the Lenders under this subsection shall
      survive the payment of all Obligations and the resignation or
      replacement of Agent.
    

    
      -85-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
       16.12  Collateral Matters
    

    
      (a)  The Lenders hereby irrevocably authorize Agent, at its option and
      in its sole discretion, to release any Lien on any Collateral (i) upon
      the termination of the Commitments and payment and satisfaction in full
      by Borrower of all Obligations, (ii) constituting property being sold or
      disposed of if a release is required or desirable in connection
      therewith and if such sale or disposition is a Permitted Disposition or
      Borrower certifies to Agent that the sale or disposition is permitted
      under Section 7.4 of this Agreement or the other Loan Documents
      (and Agent may rely conclusively on any such certificate, without
      further inquiry), (iii) constituting property in which Borrower owned no
      interest at the time the Agent’s Lien was granted nor at any time
      thereafter, or (iv) constituting property leased to Borrower under a
      lease that has expired or is terminated in a transaction permitted under
      this Agreement.  Except as provided above, Agent will not execute and
      deliver a release of any Lien on any Collateral without the prior
      written authorization of (y) if the release is of all or substantially
      all of the Collateral, all of the Lenders, or (z) otherwise, the
      Required Lenders.  Upon request by Agent or Borrower at any time, the
      Lenders will confirm in writing Agent’s authority to release any such
      Liens on particular types or items of Collateral pursuant to this Section 16.12;
      provided, however, that (1) Agent shall not be required to
      execute any document necessary to evidence such release on terms that,
      in Agent’s opinion, would expose Agent to liability or create any
      obligation or entail any consequence other than the release of such Lien
      without recourse, representation, or warranty, and (2) such release
      shall not in any manner discharge, affect, or impair the Obligations or
      any Liens (other than those expressly being released) upon (or
      obligations of Borrower in respect of) all interests retained by
      Borrower, including, the proceeds of any sale, all of which shall
      continue to constitute part of the Collateral.  
    

    
      (b)  Agent shall have no obligation whatsoever to any of the Lenders to
      assure that the Collateral exists or is owned by Borrower or is cared
      for, protected, or insured or has been encumbered, or that the Agent’s
      Liens have been properly or sufficiently or lawfully created, perfected,
      protected, or enforced or are entitled to any particular priority, or to
      exercise at all or in any particular manner or under any duty of care,
      disclosure or fidelity, or to continue exercising, any of the rights,
      authorities and powers granted or available to Agent pursuant to any of
      the Loan Documents, it being understood and agreed that in respect of
      the Collateral, or any act, omission, or event related thereto, subject
      to the terms and conditions contained herein, Agent may act in any
      manner it may deem appropriate, in its sole discretion given Agent’s own
      interest in the Collateral in its capacity as one of the Lenders and
      that Agent shall have no other duty or liability whatsoever to any
      Lender as to any of the foregoing, except as otherwise provided herein.
    

    
       16.13  Restrictions on Actions by Lenders;
      Sharing of Payments
    

    
      -86-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (a)  Each of the Lenders agrees that it shall not, without the express
      written consent of Agent, and that it shall, to the extent it is
      lawfully entitled to do so, upon the written request of Agent, set off
      against the Obligations, any amounts owing by such Lender to Borrower or
      any deposit accounts of Borrower now or hereafter maintained with such
      Lender.  Each of the Lenders further agrees that it shall not, unless
      specifically requested to do so in writing by Agent, take or cause to be
      taken any action, including, the commencement of any legal or equitable
      proceedings, to foreclose any Lien on, or otherwise enforce any security
      interest in, any of the Collateral.
    

    
      (b)  If, at any time or times any Lender shall receive (i) by payment,
      foreclosure, setoff, or otherwise, any proceeds of Collateral or any
      payments with respect to the Obligations, except for any such proceeds
      or payments received by such Lender from Agent pursuant to the terms of
      this Agreement, or (ii) payments from Agent in excess of such Lender’s
      Pro Rata Share of all such distributions by Agent, such Lender promptly
      shall (A) turn the same over to Agent, in kind, and with such
      endorsements as may be required to negotiate the same to Agent, or in
      immediately available funds, as applicable, for the account of all of
      the Lenders and for application to the Obligations in accordance with
      the applicable provisions of this Agreement, or (B) purchase, without
      recourse or warranty, an undivided interest and participation in the
      Obligations owed to the other Lenders so that such excess payment
      received shall be applied ratably as among the Lenders in accordance
      with their Pro Rata Shares; provided, however, that to the
      extent that such excess payment received by the purchasing party is
      thereafter recovered from it, those purchases of participations shall be
      rescinded in whole or in part, as applicable, and the applicable portion
      of the purchase price paid therefor shall be returned to such purchasing
      party, but without interest except to the extent that such purchasing
      party is required to pay interest in connection with the recovery of the
      excess payment.
    

    
       16.14  Agency for Perfection.  Agent
      hereby appoints each other Lender as its agent (and each Lender hereby
      accepts such appointment) for the purpose of perfecting the Agent’s
      Liens in assets which, in accordance with Article 8 or Article 9, as
      applicable, of the Code can be perfected only by possession or
      control.  Should any Lender obtain possession or control of any such
      Collateral, such Lender shall notify Agent thereof, and, promptly upon
      Agent’s request therefor shall deliver possession or control of such
      Collateral to Agent or in accordance with Agent’s instructions.
    

    
       16.15  Payments by Agent to the Lenders.  All
      payments to be made by Agent to the Lenders shall be made by bank wire
      transfer or internal transfer of immediately available funds pursuant to
      such wire transfer instructions as each party may designate for itself
      by written notice to Agent.  Concurrently with each such payment, Agent
      shall identify whether such payment (or any portion thereof) represents
      principal, premium, fees, or interest of the Obligations.
    

    
       16.16  Concerning the Collateral and
      Related Loan Documents.  Each member of the Lender Group
      authorizes and directs Agent to enter into this Agreement and the other
      Loan Documents.  Each member of the Lender Group agrees that any action
      taken by Agent in accordance with the terms of this Agreement or the
      other Loan Documents relating to the Collateral and the exercise by
      Agent of its powers set forth therein or herein, together with such
      other powers that are reasonably incidental thereto, shall be binding
      upon all of the Lenders.
    

    
      -87-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
       16.17  Field Audits and Examination
      Reports; Confidentiality; Disclaimers by Lenders; Other Reports and
      Information.  By becoming a party to this Agreement, each Lender:
    

    
      (a)  is deemed to have requested that Agent furnish such Lender,
      promptly after it becomes available, a copy of each field audit or
      examination report (each a “Report” and collectively, “Reports”)
      prepared by or at the request of Agent, and Agent shall so furnish each
      Lender with such Reports,
    

    
      (b)  expressly agrees and acknowledges that Agent does not (i) make any
      representation or warranty as to the accuracy of any Report, and (ii)
      shall not be liable for any information contained in any Report,
    

    
      (c)  expressly agrees and acknowledges that the Reports are not
      comprehensive audits or examinations, that Agent or other party
      performing any audit or examination will inspect only specific
      information regarding Borrower and will rely significantly upon the
      Books, as well as on representations of Borrower’s personnel,
    

    
      (d)  agrees to keep all Reports and other material, non-public
      information regarding Borrower and its Subsidiaries and their
      operations, assets, and existing and contemplated business plans in a
      confidential manner in accordance with Section 17.7, and
    

    
      (e)  without limiting the generality of any other indemnification
      provision contained in this Agreement, agrees:  (i) to hold Agent and
      any other Lender preparing a Report harmless from any action the
      indemnifying Lender may take or fail to take or any conclusion the
      indemnifying Lender may reach or draw from any Report in connection with
      any loans or other credit accommodations that the indemnifying Lender
      has made or may make to Borrower, or the indemnifying Lender’s
      participation in, or the indemnifying Lender’s purchase of, a loan or
      loans of Borrower, and (ii) to pay and protect, and indemnify, defend
      and hold Agent, and any such other Lender preparing a Report harmless
      from and against, the claims, actions, proceedings, damages, costs,
      expenses, and other amounts (including, attorneys fees and costs)
      incurred by Agent and any such other Lender preparing a Report as the
      direct or indirect result of any third parties who might obtain all or
      part of any Report through the indemnifying Lender.
    

    
      In addition to the foregoing:  (x) any Lender may from time to time
      request of Agent in writing that Agent provide to such Lender a copy of
      any report or document provided by Borrower to Agent that has not been
      contemporaneously provided by Borrower to such Lender, and, upon receipt
      of such request, Agent promptly shall provide a copy of same to such
      Lender, (y) to the extent that Agent is entitled, under any provision of
      the Loan Documents, to request additional reports or information from
      Borrower, any Lender may, from time to time, reasonably request Agent to
      exercise such right as specified in such Lender’s notice to Agent,
      whereupon Agent promptly shall request of Borrower the additional
      reports or information reasonably specified by such Lender, and, upon
      receipt thereof from Borrower, Agent promptly shall provide a copy of
      same to such Lender, and (z) any time that Agent renders to Borrower a
      statement regarding the Loan Account, Agent shall send a copy of such
      statement to each Lender.
    

    
      -88-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
       16.18  Several Obligations; No Liability.  Notwithstanding
      that certain of the Loan Documents now or hereafter may have been or
      will be executed only by or in favor of Agent in its capacity as such,
      and not by or in favor of the Lenders, any and all obligations on the
      part of Agent (if any) to make any credit available hereunder shall
      constitute the several (and not joint) obligations of the respective
      Lenders on a ratable basis, according to their respective Commitments,
      to make an amount of such credit not to exceed, in principal amount, at
      any one time outstanding, the amount of their respective
      Commitments.  Nothing contained herein shall confer upon any Lender any
      interest in, or subject any Lender to any liability for, or in respect
      of, the business, assets, profits, losses, or liabilities of any other
      Lender.  Each Lender shall be solely responsible for notifying its
      Participants of any matters relating to the Loan Documents to the extent
      any such notice may be required, and no Lender shall have any
      obligation, duty, or liability to any Participant of any other
      Lender.  Except as provided in Section 16.7, no member
      of the Lender Group shall have any liability for the acts of any other
      member of the Lender Group.  No Lender shall be responsible to Borrower
      or any other Person for any failure by any other Lender to fulfill its
      obligations to make credit available hereunder, nor to advance for it or
      on its behalf in connection with its Commitment, nor to take any other
      action on its behalf hereunder or in connection with the financing
      contemplated herein.
    

    
       16.19  Bank Product Providers.  Each
      Bank Product Provider shall be deemed a party hereto for purposes of any
      reference in a Loan Document to the parties for whom Agent is acting; it
      being understood and agreed that the rights and benefits of such Bank
      Product Provider under the Loan Documents consist exclusively of such
      Bank Product Provider’s right to share in payments and collections out
      of the Collateral as more fully set forth herein. In connection with any
      such distribution of payments and collections, Agent shall be entitled
      to assume no amounts are due to any Bank Product Provider unless such
      Bank Product Provider has notified Agent in writing of the amount of any
      such liability owed to it prior to such distribution.
    

    
      17.  GENERAL PROVISIONS.
    

    
        17.1  Effectiveness.  This
      Agreement shall be binding and deemed effective when executed by
      Borrower, Agent, and each Lender whose signature is provided for on the
      signature pages hereof.
    

    
        17.2  Section Headings.  Headings
      and numbers have been set forth herein for convenience only.  Unless the
      contrary is compelled by the context, everything contained in each
      Section applies equally to this entire Agreement.
    

    
        17.3  Interpretation.  Neither
      this Agreement nor any uncertainty or ambiguity herein shall be
      construed against the Lender Group or Borrower, whether under any rule
      of construction or otherwise.  On the contrary, this Agreement has been
      reviewed by all parties and shall be construed and interpreted according
      to the ordinary meaning of the words used so as to accomplish fairly the
      purposes and intentions of all parties hereto.
    

    
        17.4  Severability of Provisions.  Each
      provision of this Agreement shall be severable from every other
      provision of this Agreement for the purpose of determining the legal
      enforceability of any specific provision.
    

    
      -89-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
        17.5  Counterparts; Electronic
      Execution.  This Agreement may be executed in any number of
      counterparts and by different parties on separate counterparts, each of
      which, when executed and delivered, shall be deemed to be an original,
      and all of which, when taken together, shall constitute but one and the
      same Agreement.  Delivery of an executed counterpart of this Agreement
      by telefacsimile or other electronic method of transmission shall be
      equally as effective as delivery of an original executed counterpart of
      this Agreement.  Any party delivering an executed counterpart of this
      Agreement by telefacsimile or other electronic method of transmission
      also shall deliver an original executed counterpart of this Agreement
      but the failure to deliver an original executed counterpart shall not
      affect the validity, enforceability, and binding effect of this
      Agreement.  The foregoing shall apply to each other Loan Document
      mutatis mutandis.
    

    
        17.6  Revival and Reinstatement of
      Obligations.  If the incurrence or payment of the Obligations by
      Borrower or any Guarantor or the transfer to the Lender Group of any
      property should for any reason subsequently be declared to be void or
      voidable under any state or federal law relating to creditors’ rights,
      including provisions of the Bankruptcy Code relating to fraudulent
      conveyances, preferences, or other voidable or recoverable payments of
      money or transfers of property (each, a “Voidable Transfer”),
      and if the Lender Group is required to repay or restore, in whole or in
      part, any such Voidable Transfer, or elects to do so upon the reasonable
      advice of its counsel, then, as to any such Voidable Transfer, or the
      amount thereof that the Lender Group is required or elects to repay or
      restore, and as to all reasonable costs, expenses, and attorneys fees of
      the Lender Group related thereto, the liability of Borrower or such
      Guarantor automatically shall be revived, reinstated, and restored and
      shall exist as though such Voidable Transfer had never been made.
    

    
        17.7  Confidentiality.
    

    
      (a)  Agent and the Lenders each individually (and not jointly or jointly
      and severally) agree that material, non-public information regarding
      Borrower and its Subsidiaries, their operations, assets, and existing
      and contemplated business plans shall be treated by Agent and the
      Lenders in a confidential manner, and shall not be disclosed by Agent
      and the Lenders to Persons who are not parties to this Agreement,
      except:  (i) to attorneys for and other advisors, accountants, auditors,
      and consultants to any member of the Lender Group, (ii) to Subsidiaries
      and Affiliates of any member of the Lender Group (including the Bank
      Product Providers), provided that any such Subsidiary or Affiliate shall
      have agreed to receive such information hereunder subject to the terms
      of this Section 17.7, (iii) as may be required by statute,
      decision, or judicial or administrative order, rule, or regulation, (iv)
      as may be agreed to in advance by Borrower or as requested or required
      by any Governmental Authority pursuant to any subpoena or other legal
      process, (v) as to any such information that is or becomes generally
      available to the public (other than as a result of prohibited disclosure
      by Agent or the Lenders), (vi) in connection with any assignment,
      prospective assignment, sale, prospective sale, participation or
      prospective participations, or pledge or prospective pledge of Agent’s
      or such Lender’s interest under this Agreement, provided that any such
      assignee, prospective assignee, purchaser, prospective purchaser,
      participant, prospective participant, pledgee, or prospective pledgee
      shall have agreed in writing to receive such information hereunder
      subject to the terms of this Section 17.7(a), and (vii in
      connection with any litigation or other adversary proceeding involving
      parties hereto which such litigation or adversary proceeding involves
      claims related to the rights or duties of such parties under this
      Agreement or the other Loan Documents.  The provisions of this Section
      17.7(a) shall survive for two (2) years after the payment in full of
      the Obligations.
    

    
      -90-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b)  Anything in this Agreement to the contrary notwithstanding, Agent
      may provide information concerning the terms and conditions of this
      Agreement and the other Loan Documents to loan syndication and pricing
      reporting services.
    

    
        17.8  Lender Group Expenses.  Borrower
      agrees to pay any and all Lender Group Expenses promptly after demand
      therefor by Agent and agrees that its obligations contained in this Section
      17.8 shall survive payment or satisfaction in full of all other
      Obligations.
    

    
        17.9  USA Patriot Act.  Each
      Lender that is subject to the requirements of the USA PATRIOT
      Improvement and Reauthorization Act of 2005 (Pub. L. 109-177) (the “Patriot
      Act”) hereby notifies Borrower that pursuant to the requirements of
      the Patriot Act, such Lender is required to obtain, verify and record
      information that identifies Borrower, which information includes the
      name and address of Borrower and other information that will allow such
      Lender to identify Borrower in accordance with the Patriot Act.
    

    
       17.10  Integration.  This
      Agreement, together with the other Loan Documents, reflects the entire
      understanding of the parties with respect to the transactions
      contemplated hereby and shall not be contradicted or qualified by any
      other agreement, oral or written, before the date hereof.
    

    
      [Signature pages to follow.]
    

    
      -91-
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement
      to be executed and delivered as of the date first above written.
    

    

    

    
    	
           
        	
          
            HERCULES FUNDING II LLC,
          

          
            a Delaware limited liability company, as Borrower
          

        
	

        	
          
            By:
          

        	
          
             
          

          
             
          

          
             
          

          
             
          

          
             
          

        
	

        	
          
            Name:
          

        	
          
            Manuel A. Henriquez
          

        
	

        	
          
            Title:
          

        	
          
            President
          

        
	

        	

        	
           
        
	

        	
          
            WELLS FARGO FOOTHILL, LLC,
          

          
            a Delaware limited liability company,
          

          
            as Agent and as a Lender
          

        
	

        	
          
            By:
          

        	
          
             
          

          
             
          

          
             
          

          
             
          

          
             
          

        
	

        	
          
            Name:
          

        	
          
             
          

        
	

        	
          
            Title:
          

        	
          
             
          

        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      EXECUTION VERSION
    

    

    

    
      Schedule C-1
Commitments
    

    
      (as of Closing Date)
    

    
    	
           
        	
           
        	
           
        	

        
	

        	
          Lender
        	
          Commitment
        	

        
	

        	
          Wells Fargo Foothill, LLC.
        	
          $50,000,000
        	

        
	

        	
           
        	
           
        	

        
	

        	
           
        	
           
        	

        
	

        	
           
        	
           
        	

        
	

        	
          All Lenders
        	
          $50,000,000
        	

        

    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      Schedule P-1
    

    
      Permitted Liens
    

    

    

    
      None.
    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Schedule R-1
    

    
      Required Asset Documents
    

    
      With respect to each Note Receivable that Borrower proposes be treated
      as an Eligible Note Receivable:
    

    
      1.        the original promissory note evidencing such Note Receivable,
      duly executed by the applicable Account Debtor as maker and payable to
      the order of the original lender who funded such Note Receivable,
      together with originals of all assignments or endorsements to make such
      Note Receivable now payable to the order of Borrower;
    

    
      2.        a file-stamped copy of the related UCC financing statement(s)
      naming the applicable Account Debtor as the debtor and the original
      lender who funded such Note Receivable as secured party, together with
      file-stamped copy(ies) of UCC amendment(s) evidencing the ultimate
      assignment of the secured party’s interest under such UCC financing
      statement(s) to Borrower;
    

    
      3.        the originals of any warrants issued in connection with such
      Note Receivable, together with originals of all assignments or stock
      powers necessary to transfer all of such warrants to Borrower;
    

    
      4.        the originals of all other agreements, documents, or
      instruments evidencing or securing such Note Receivable;
    

    
      5.        (a) an original Assignment of Note with respect to such Note
      Receivable, executed by Borrower to the order of Lender or in blank,
      (b) an original Assignment of Warrant or stock power with respect to
      each warrant referred to in 3 above, executed by Borrower in blank, and
      (c) an original assignment with respect to all of Borrower’s rights
      under the documents referred to in 4 above, executed by Borrower in
      blank; and
    

    
      6.        a completed UCC amendment for each UCC financing statement
      referred to in 2 above, assigning the secured party’s interest
      thereunder to Lender.

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