Document:

Exhibit
      10.14

     

    SECOND
      AMENDMENT TO OFFICE LEASE

    

    THIS
      SECOND AMENDMENT TO OFFICE LEASE (the “Amendment”) is dated for reference
      purposes only, this 1st
      day of
      March, 2006, by and between OLEN COMMERCIAL REALTY CORP., A NEVADA CORPORATION
      (“Landlord”),
      on
      the one hand, and PACIFIC COAST NATIONAL BANCORP, A CALIFORNIA CORPORATION,
      (“Tenant”)
      on the
      other hand, with reference to the facts set forth in the Recitals
      below.

    

    R
      E C I T A L S

    

    A. Landlord
      and Tenant are parties to that certain Office Lease dated July 15, 2004, (the
      “Original
      Lease”),
      which
      was amended by that certain Amendment to Lease Date Change dated as of February
      23, 2005 (the “First
      Amendment”);
      (as
      amended, the “Lease”),
      pursuant to which Tenant leases from Landlord those certain premises (the
“Original
      Premises”)
      consisting of approximately 7,285 rentable square feet commonly known as Suites
      100 - 140, of that certain building commonly known as 905 Calle Amanecer, San
      Clemente, CA 92673 (the “Building”),
      and
      more particularly described in the Lease.

    

    B. Capitalized
      terms not defined in this Amendment have the meanings given to them in the
      Lease.

    

    C. Tenant
      desires to lease 2,845 rentable square feet of Additional Space known as Suite
      150 on the first (1st)
      floor
      of the Building. Landlord and Tenant desire to amend the Lease to reflect the
      addition of Suite 150 in accordance with the terms hereinafter
      provided.

    

    A
      G R E E
      M E N T

    

    NOW,
      THEREFORE, in consideration of the above Recitals and other good and valuable
      consideration, the receipt of which is hereby acknowledged, the parties agree
      as
      follows:

    

    1. Additional
      Space.
      On the
      date the Second Amendment is fully executed, Tenant shall lease from Landlord
      2,845 rentable square feet which is a portion of the first (1st)
      floor
      of 905 Calle Amanecer, San Clemente, CA 92673 known as Suite 150 depicted on
      Exhibit
      “A”
      attached
      hereto (the “Additional
      Space”).
      The
      term of the lease for the Additional Space only shall commence upon Landlord’s
      notice to Tenant that Tenant Improvements as set forth hereinafter are
      Substantially Complete, but in no event later than September 1, 2006. At that
      time an Addendum (“Date
      Change Addendum”)
      shall
      be created defining said Commencement Date which will be attached hereto and
      will become hereof a part of the terms and conditions of this Second Amendment
      to Office Lease. The term of the lease for the Additional Space shall expire
      May
      31, 2015. On the Commencement Date, as defined below, the “Premises” shall
      include the Original Premises and the Additional Space and the total square
      footage for the Original Premises and the Additional Space shall be 10,130
      rentable square feet.

    

    

    
      	
              /s/
                JT                   
                

            	
              /s/
                MH                  
                

            
	
              Landlord
                Initials

            	
              Tenant’s
                Initials

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. Monthly
      Base Rent.
      The
      Base Monthly Rent for the Additional Space only shall be Five thousand six
      hundred ninety dollars ($5,690.00) per month Full Service Gross, commencing
      upon
      Landlord’s written notice to Tenant that Tenant Improvements are Substantially
      Completed, but in no event later than September 1, 2006 (“Commencement Date”)
      and continuing until May 31, 2015. Commencing with June 1, 2007, the Base
      Monthly Rent shall be Five thousand eight hundred thirty-two dollars and
      twenty-five cents ($5,832.25) per month Full Service Gross. Commencing with
      June
      1, 2008, the Base Monthly Rent shall be Five thousand nine hundred seventy-four
      dollars and fifty cents ($5,974.50) per month Full Service Gross. Commencing
      with June 1, 2009, the Base Monthly Rent shall be Six thousand one hundred
      sixteen dollars and seventy-five cents ($6,116.75) per month Full Service Gross.
      Commencing with June 1, 2010, the Base Monthly Rent shall be Six thousand two
      hundred fifty-nine dollars ($6,259.00) per month Full Service Gross. Commencing
      with June 1, 2011, the Base Monthly Rent shall be Six thousand four hundred
      one
      dollars and twenty-five cents ($6,401.25) per month Full Service Gross.
      Commencing with June 1, 2012, the Base Monthly Rent shall be Six thousand five
      hundred forty-three dollars and fifty cents ($6,543.50) per month Full Service
      Gross. Commencing with June 1, 2013, the Base Monthly Rent shall be Six thousand
      six hundred eighty-five dollars and seventy-five cents ($6,685.75) per month
      Full Service Gross. Commencing with June 1, 2014, the Base Monthly Rent shall
      be
      Six thousand eight hundred twenty-eight dollars ($6,828.00) per month full
      Service Gross.

    

    3. Tenant
      Improvements.
      Landlord agrees to complete, at Landlord’s sole expense, the following Tenant
      Improvements in the Additional Space only, as follows:

    

    
      	 	
              1.

            	
              Replace
                carpeting throughout with Landlord’s standard carpet in Tenant’s choice of
                colors;

            

    

    
      	 	
              2.

            	
              Paint
                Premises with Landlord’s standard
                paint;

            

    

    
      	 	
              3.

            	
              Clean
                entire suite to “move-in”
condition;

            

    

    

    Landlord
      shall complete the Tenant Improvements in accordance with all applicable
      building codes and ordinances, and Landlord shall use building-standard
      materials and finishes. Landlord shall complete the Tenant Improvements in
      a
      good and workmanlike manner and shall use only new materials. Landlord shall
      make every reasonable effort to complete the above Tenant Improvements as soon
      as reasonably possible after receipt of this signed Second Amendment to Office
      Lease and move-in monies, and estimates said work to take approximately two
      (2)
      to three (3) weeks to complete from date of Landlord’s receipt of signed Second
      Amendment to Office Lease and move-in monies and vacation and surrender of
      the
      Premises by the existing Tenant, but Landlord can make no guaranty of an exact
      date of completion. However, Landlord shall complete the Tenant Improvements
      before September 1, 2006.

    

    

    
      	
              /s/
                JT                   
                

            	
              /s/
                MH                  
                

            
	
              Landlord
                Initials

            	
              Tenant’s
                Initials

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Substantially
      Completed” or “Substantially Completes” shall be defined as when the Tenant
      Improvements as set forth herein are completed and the suite is cleaned to
      the
      point that any reasonable tenant walking the Additional Space would deem it
      ready to occupy, minor punch-list items excepted, and Landlord has tendered
      possession of the Additional Space to Tenant.

    

    4. Tenant’s
      Prorata Share.
      Effective as of the Commencement Date for the Additional Space of 2,845 rentable
      square feet, Tenant’s Prorata share for the entire Premises of 10,130 rentable
      square feet shall be 11.92%.

    

    5. Base
      Building Operating Expenses.
      In
      addition to the expenses set forth in the Original Office Lease, Tenant shall
      pay annually Tenant’s Share of increases in Building Operating Expenses in
      excess of the 2006 Base Year Expenses for the Additional Space only (Suite
      150).

    

    6. Option
      to Extend.
      Landlord and Tenant acknowledge and agree that the Option to Extend as set
      forth
      in Addendum “D” of the Original Lease remains in full force and effect for the
      Original Premises and/or the Additional Space upon the terms and conditions
      set
      froth therein.

    

    7. No
      Other Modifications.
      Except
      as modified in this Agreement, all other terms and conditions of the Lease
      and
      previous Amendments thereto shall remain unchanged and in full force and effect.
      To the extent of a conflict between the terms of the Lease and the terms of
      this
      Amendment, the terms of this Amendment shall prevail. A breach by Tenant of
      any
      of the terms of this Amendment shall constitute a material breach by Tenant
      of
      the Lease as to which Landlord shall have all rights and remedies. This
      Amendment may be executed in multiple counterparts, each of which shall be
      deemed to be an original, but all of which, together, shall constitute one
      and
      the same instrument.

    

    8. Upon
      Execution.
      Tenant
      shall pay Landlord upon execution hereof, Eleven thousand three hundred eighty
      dollars ($11,380.00) which includes: Five thousand six hundred ninety dollars
      ($5,690.00) for the first month’s Rent and Five thousand six hundred ninety
      dollars ($5,690.00) Security Deposit for the Additional Space.

    
 

    
      	
              /s/
                JT                   
                

            	
              /s/
                MH                  
                

            
	
              Landlord
                Initials

            	
              Tenant’s
                Initials

            

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the
      day
      and year set forth above.

    

      
        	
                LANDLORD:

              	 	
                
                  OLEN
                    COMMERCIAL REALTY CORP.

                

              
	 	 	
                A
                  NEVADA CORPORATION

              
	 	 	 	 
	 	 	
                By:
                  

              	/s/
                Jayne
                Taylor
	 	 	
                Name:

              	
                Jayne
                  Taylor

              
	 	 	
                Title:

              	
                Vice
                  President

              
	 	 	 	 
	 	 	 	 
	
                TENANT:

              	 	
                PACIFIC
                  COAST NATIONAL BANCORP,

              
	 	 	
                A
                  CALIFORNIA CORPORATION

              
	 	 	 	 
	 	 	
                By:
                  

              	/s/
                Michael S.
                Hahn
	 	 	
                Name:

              	
                Michael
                  S. Hahn

              
	 	 	
                Title:

              	
                President

              
	 	 	 	 
	 	 	 	 
	 	 	
                By:
                  

              	/s/
                David E.
                Davies
	 	 	
                Name:

              	
                David
                  E. Davies

              
	 	 	
                Title:

              	
                Secretary

              

      

    

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PACIFIC
      POINTE CORPORATE CENTRE

    905
      Calle
      Amanecer

    San
      Clemente, CA 92673

    

    

    [graphic]

    

    

    

    

    

    

    
      	
              /s/
                JT                       
                

            	
              Exhibit
                “A”

            	
              /s/
                MH                  
                

            
	
              Landlord’s
                Initials

            	 	
              Tenant’s
                Initials

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ADDENDUM
      TO SECOND AMENDMENT TO OFFICE LEASE

    

    THIS
      ADDENDUM TO SECOND AMENDMENT TO OFFICE LEASE is dated for reference purposes
      only, this 30th day of June, 2006, by and between OLEN COMMERCIAL REALTY CORP.,
      A NEVADA CORPORATION “Landlord”,
      and
      PACIFIC COAST NATIONAL BANCORP, A CALIFORNIA CORPORATION, hereinafter called
      “Tenant”.

    

    Landlord
      and Tenant entered into that certain written Office Lease, dated July 15, 2004,
      (the “Original
      Lease”)
      which
      was amended by that certain Amendment to Lease/Date Change (the “First
      Amendment”),
      dated
      February 23, 2005; Second Amendment to Office Lease dated March 1, 2006 (the
      “Second
      Amendment”)
      pursuant to which Tenant leases from Landlord those certain Premises (the
“Original
      Premises”)
      consisting of approximately 10,130 rentable square feet commonly known as Suites
      100-140 and 150 of that certain building commonly known as 905 Calle Amanecer,
      San Clemente, CA 92673 (the “Building”),
      and
      more particularly described in the Lease.

    

    Landlord
      and Tenant hereby express their mutual desire and intent to amend the Term
      of
      the Second Amendment to Office Lease for the Additional Space of 2,845 rentable
      square feet known as Suite 150, as follows:

    

    The
      term
      of this Lease for the Additional Space known as Suite 150 shall be
      for:

    

    Eight
      (8) years and Nine (9)_months.

    

    
      	 	
              A.

            	
              Original
                Commencement Date for the Additional Space was: upon
                Landlord’s notice to Tenant that Tenant Improvements as set forth herein
                are Substantially Complete, but in no event later than September
                1,
                2006.

            

    

     

    
      	 	
              B.

            	
              Revised
                Commencement Date for the Additional Space is: August
                1, 2006.

            

    

     

    
      	 	
              C.

            	
              Expiration
                Date for the Additional Space is: May
                31, 2015.

            

    

    

    

    
      	
              /s/
                BK                     

            	 	
              /s/
                MH                 
                

            
	
              Landlord’s
                Initials

            	
              Page
                1 of 2

            	
              Tenant’s
                Initials

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Addendum
      to Second Amendment to Office Lease

    Pacific
      Coast National Bancorp

    June
      30,
      2006

    

    

    Except
      as
      modified herein, all other terms and conditions of the Lease between the Parties
      above described, and attached hereto, shall continue in full force and
      effect..

    

    
      	
              LANDLORD:

            	 	
              
                OLEN
                  COMMERCIAL REALTY CORP.

              

            
	 	 	
              A
                NEVADA CORPORATION

            
	 	 	 	 
	 	 	
              By:

            	
              /s/
                Brandy Krechel

            
	 	 	
              Name:

            	
              Brandy
                Krechel

            
	 	 	
              Title:

            	
              Director
                of Marketing

            
	 	 	 	 
	 	 	
              Date:

            	
              7/13/06

            
	 	 	 	 
	 	 	 
	
              TENANT:

            	 	
              PACIFIC
                COAST NATIONAL BANCORP,

            
	 	 	
              A
                CALIFORNIA CORPORATION

            
	 	 	 	 
	 	 	
              By:

            	
              /s/
                Michael S. Hahn

            
	 	 	
              Name:

            	
              Michael
                S. Hahn

            
	 	 	
              Title:

            	
              President

            
	 	 	 	 
	 	 	
              Date:

            	
              7/6/2006

            
	 	 	 	 
	 	 	 	 
	 	 	
              By:

            	
              /s/
                David E. Davies

            
	 	 	
              Name:

            	
              David
                E. Davies

            
	 	 	
              Title:

            	
              Secretary

            
	 	 	 	 
	 	 	
              Date:

            	
              7/10/06

            

    

    

    

    Page
      2 of
      2SECOND
      AMENDED AND RESTATED FINANCING AGREEMENT

     

    The
      CIT Group/Business Credit, Inc.

    (as
      Agent)

     

    SunTrust
      Bank

    (as
      Documentation Agent)

    

    The
      Lenders that are parties hereto

     

    and

     

    United
      Fuel & Energy Corporation

    and

    Three
      D Oil Co. of Kilgore, Inc. 

    (as
      Companies)

    

     

    Dated:
      March 27, 2007

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    TABLE
      OF CONTENTS

     

    
      	
               

            	
               

            	
               

            	
               

            	
              Page

            
	
              SECTION
                1.

            	
               

            	
              Definitions

            	
               

            	
              2

            
	
              SECTION
                2.

            	
               

            	
              Conditions
                Precedent

            	
               

            	
              27

            
	
              SECTION
                3.

            	
               

            	
              Loans
                and Advances

            	
               

            	
              30

            
	
              SECTION
                4.

            	
               

            	
              Term
                Loans

            	
               

            	
              41

            
	
              SECTION
                5.

            	
               

            	
              Letters
                of Credit

            	
               

            	
              42

            
	
              SECTION
                6.

            	
               

            	
              Collateral

            	
               

            	
              45

            
	
              SECTION
                7.

            	
               

            	
              Representations,
                Warranties and Covenants

            	
               

            	
              48

            
	
              SECTION
                8.

            	
               

            	
              Interest,
                Fees and Expenses

            	
               

            	
              62

            
	
              SECTION
                9.

            	
               

            	
              Powers

            	
               

            	
              69

            
	
              SECTION
                10.

            	
               

            	
              Events
                of Default and Remedies

            	
               

            	
              70

            
	
              SECTION
                11.

            	
               

            	
              Termination

            	
               

            	
              75

            
	
              SECTION
                12.

            	
               

            	
              Miscellaneous

            	
               

            	
              75

            
	
              SECTION
                13.

            	
               

            	
              Agreements
                Regarding the Lenders; Participations and Assignments

            	
               

            	
              81

            
	
              SECTION
                14.

            	
               

            	
              Agency

            	
               

            	
              84

            
	
              SECTION
                15.

            	
               

            	
              Joint
                and Several Liability of Companies

            	
               

            	
              89

            

    

     

    EXHIBITS

     

    Exhibit
      A
      - Form of Assignment and Transfer Agreement

    Exhibit
      B
      - Form of Initial Term Loan Promissory Note

    Exhibit
      C
      - Form of Acquisition Term Loan Promissory Note

    Exhibit
      D
      - Form of Revolving Loan Promissory Note

    Exhibit
      E
      - Form of Swingline Note

    Exhibit
      F
      - Form of Three D Real Property Term Loan Promissory Note

     

    SCHEDULES

     

    Schedule
      1 - Existing Liens

    Schedule
      7(1) - Company Information

    Schedule
      7(15)(e) - Permitted Indebtedness; Other Lending Agreements

    Schedule
      7(15)(g) - Real Property Owned and Leased/Collateral Locations

     

    
      
        
          
            
            

          

          
            i

            
              

            

          

           

        

      

    

     

    Schedule
      7(15)(h) - Litigation

    Schedule
      7(15)(l) - Environmental Matters

    Schedule
      7(15)(q) - Subsidiaries

    Schedule
      7(15)(r) - Intellectual Property
 

    
      
        
          
          

        

        
          ii

          
            

          

        

         

      

    

     

    SECOND
      AMENDED AND RESTATED FINANCING AGREEMENT

     

    THE
      CIT GROUP/BUSINESS CREDIT, INC.
      (“CIT”)
      a New
      York corporation, with offices located at Two Lincoln Centre, 5420 LBJ
      Freeway, Suite 200, Dallas, Texas 75240, and SUNTRUST
      BANK (“SunTrust”),
      a
      Georgia banking corporation (CIT and SunTrust in their respective capacity
      as a
      Lender [as defined below], being hereinafter referred to as “Existing
      Lenders”),
      PNC
      BANK, NATIONAL ASSOCIATION (“PNC”),
      a
      national banking association, and WACHOVIA
      BANK, N.A. (“Wachovia”),
      a
      national banking association (PNC and Wachovia, in their respective capacities
      as a Lender, being hereinafter referred to as the “Additional
      Lenders”)
      (CIT,
      SunTrust, PNC, Wachovia and the Swingline Lender and any other entity becoming
      a
      Lender hereunder pursuant to Paragraph
      13.4(b)
      of
Section
      13
      of this
      Financing Agreement, are collectively referred to as the “Lenders”
and
      individually as a “Lender”),
      CIT,
      as the administrative and collateral agent for the Lenders (the “Agent”),
      and
      SunTrust, as documentation agent for the Lenders (the “Documentation
      Agent”),
      are
      pleased to confirm the terms and conditions under which the Lenders, acting
      through the Agent, shall make revolving loans and term loans and other financial
      accommodations to UNITED
      FUEL & ENERGY CORPORATION (“United”),
      a
      Texas corporation formerly known as Eddins-Walcher Company, United being the
      surviving entity of the merger of United Fuel & Energy Corporation, a Texas
      corporation, into Eddins-Walcher Company, with Eddins-Walcher Company having
      changed its name to United Fuel & Energy Corporation in connection with such
      merger and being a wholly-owned Subsidiary of United Fuel & Energy
      Corporation, a Nevada corporation (“Parent”),
      United having a principal place of business at 405 N. Marienfeld, Suite
      300, Midland, Texas 79701, and THREE
      D OIL CO. OF KILGORE, INC. (“Three
      D”),
      a
      Texas corporation, Three D being a wholly-owned Subsidiary of United and having
      a principal place of business at 405 N. Marienfeld, Suite 300, Midland,
      Texas 79701 (United and Three D being herein individually referred to as a
“Company”
and
      collectively referred to as the “Companies”).

     

    RECITALS:

     

    A.  CIT
      and
      the Companies are parties to that certain Financing Agreement, dated as of
      October 10, 2003, as amended by (i) an Agreement Regarding Brands Shopping
      Network, Inc. Transaction and August 2004 Amendment To Financing Agreement
      dated
      as of August 6, 2004, (ii) a September 2004 Extension of Financing
      Agreement dated as of September 30, 2004, (iii) an Agreement Regarding
      Sterling Bank Transaction and November 2004 Amendment dated as of November
      1,
      2004, and (iv) a December 2004 Amendment to Financing Agreement dated as of
      December __, 2004 (as amended, the “Original
      Financing Agreement”).

     

    B.  CIT,
      SunTrust, Agent and Companies entered into that certain Amended and Restated
      Financing Agreement dated April 8, 2005 (as amended and modified from time
      to time, the “Existing
      Financing Agreement”).

     

    C.  Companies
      have requested that Agent and Lenders agree and, subject to the terms and
      conditions of this Financing Agreement, Agent and Lenders have agreed, to
      entirely amend and restate the Existing Financing Agreement to, among other
      things:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              Increase
                the maximum total credit facility to $90,000,000, including increasing
                the
                Revolving Line of Credit to $70,000,000, making a new term loan in
                the
                amount of $5,000,000 on the Closing Date, and providing for future
                additional term loans of up to the aggregate amount of $15,000,000,
                and
                for the making by Lenders of their respective Pro Rata Percentage
                of new
                advances made on the Closing Date;
                and

            

    

     

    
      	(ii)  	
              Provide
                for the assignment by Existing Lenders to Additional Lenders and
                otherwise
                for the extension by all Lenders of amounts necessary for all Lenders
                to
                hold their respective Pro Rata Percentage of the Commitments, it
                being the
                intent of Companies, Agent and Lenders that the Revolving Loans and
                Letters of Credit existing under the Existing Financing Agreement
                as of
                the Closing Date shall continue, remain outstanding and not be repaid
                on
                the Closing Date, but shall be assigned and reallocated among the
                Lenders
                as provided in this Financing Agreement, and accordingly the Loans
                and
                Commitments are not in novation or discharge thereof;
                and

            

    

     

    
      	(iii)  	
              Amend
                certain provisions of the credit facility provided for in the Existing
                Financing Agreement.

            

    

     

    D.  The
      parties hereto desire to amend, restate and modify, but not extinguish, the
      Existing Financing Agreement in its entirety as hereinafter set
      forth.

     

    NOW
      THEREFORE, for
      good
      and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the Companies, the Agent and the Lenders agree to amend and
      restate the Existing Financing Agreement in the following manner:

     

    SECTION
      1.   Definitions

     

    Accounts
      shall
      mean all of each of the Companies’ now existing and future: (a) accounts
      (as defined in the UCC), and any and all other receivables (whether or not
      specifically listed on schedules furnished to the Agent), including, without
      limitation, all accounts created by, or arising from, all of each Company’s
      sales, leases, rentals of goods or renditions of services to their customers,
      including but not limited to, those accounts arising under any Company’s trade
      names or styles, or through any Company’s divisions; (b) any and all
      instruments, documents, chattel paper (including electronic chattel paper)
      (all
      as defined in the UCC); (c) unpaid seller’s or lessor’s rights (including
      rescission, replevin, reclamation, repossession and stoppage in transit)
      relating to the foregoing or arising therefrom; (d) rights to any goods
      represented by any of the foregoing, including rights to returned, reclaimed
      or
      repossessed goods; (e) reserves and credit balances arising in connection
      with or pursuant hereto; (f) guarantees, supporting obligations, payment
      intangibles and letter of credit rights (all as defined in the UCC);
      (g) insurance policies or rights relating to any of the foregoing;
      (h) general intangibles pertaining to any and all of the foregoing
      (including all rights to payment, including those arising in connection with
      bank and non-bank credit cards), and including books and records and any
      electronic media and software thereto; (i) notes, deposits or property of
      account debtors securing the obligations of any such account debtors to the
      Companies (or any of them); and (j) cash and non-cash proceeds (as defined
      in the UCC) of any and all of the foregoing.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    Acquisition
      Term Loan Line of Credit
      shall
      mean the aggregate commitment of the Lenders to make after the Closing Date
      Acquisition Term Loans to Companies in aggregate original principal amount
      of up
      to $14,000,000 pursuant to Paragraph
      4.3
      of
Section
      4
      of this
      Financing Agreement.

     

    Acquisition
      Term Loans
      shall
      mean the term loans to be made to the Companies by the Lenders upon the
      satisfaction of the conditions set forth in Paragraph 4.3
      of
Section 4
      of this
      Financing Agreement.

     

    Additional
      Lender
      shall
      have the meaning given to such term in the opening paragraph of this Financing
      Agreement.

     

    Adjustment
      Date
      shall
      mean (a) initially, the Initial Adjustment Date, and (b) thereafter,
      the first day of each thereafter occurring May, August, November and February;
      provided,
      however,
      that if
      the financial statements of Companies to be delivered to Agent pursuant to
      Paragraph 7.8(c)
      of
Section 7
      hereof
      for the month ending as of the last day of the Fiscal Quarter immediately
      preceding such first day of such calendar month (for example, as to May 1,
      2008, the financial statements to be delivered pursuant to Paragraph 7.8(c)
      of
Section 7
      hereof
      for the month ending March 31, 2008) have not been delivered by the due date
      for
      such financial statements, such “Adjustment Date” shall instead be the tenth day
      after delivery to Agent of such financial statements.

     

    Affiliate
      shall
      mean, as applied to any Person, any other Person who, directly or indirectly,
      controls, is controlled by, or is under common control with, such Person. For
      purposes of this definition, “control” means the possession, directly or
      indirectly, of the power to direct the management and policies of a Person,
      whether through the ownership of Capital Stock, by contract, or
      otherwise;
      provided,
      however,
      that,
      in any event: (a) any Person which owns directly or indirectly 10% or more
      of the Capital 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 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
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Anniversary
      Date shall
      mean September 30, 2012.

     

    Applicable
      Base Rate Margin means,
      with respect to any amount outstanding under the Revolving Loans or the Term
      Loans, as the case may be, which are Base Rate Loans, the rate of interest
      per
      annum determined as set forth below:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (a)  as
      to
      the amount of Revolving Loans outstanding on any day:

     

    (i)  during
      the period beginning the Closing Date and continuing until the Initial
      Adjustment Date - 0.00%; and

     

    (ii)  thereafter,
      on each Adjustment Date (beginning on the Initial Adjustment Date) and
      continuing until the next Adjustment Date, the applicable percent per annum
      set
      forth in the pricing table below opposite the relevant Fixed Charge Coverage
      Ratio calculated as of the last day of the relevant Fiscal Quarter for the
      four
      Fiscal Quarter period ending on such day:

     

    APPLICABLE
      BASE RATE

    MARGIN
      PRICING TABLE

     

    
      	
              Fixed
                Charge Coverage
                Ratio

            	
               

            	
              Applicable
                Base Rate Margin

            
	
              (A) Greater
                than or equal to 1.20 to 1.00

            	
               

            	
              (A) 0.00%

            
	
              (B) Less
                than 1.20 to 1.00

            	
               

            	
              (B) 0.25%

            

    

    

    All
      adjustments to the Applicable Base Rate Margin shall be implemented by the
      Agent
      based on the financial statements and related officer’s certificate for the
      relevant period delivered by the Companies to the Agent pursuant to Paragraph 7.8(c)
      of
Section 7
      hereof,
      and shall take effect retroactively on the Adjustment Date immediately
      succeeding the date of the Agent’s receipt of such financial statements.
      Notwithstanding the foregoing: (a) no reduction in Applicable Base Rate
      Margin shall occur on an Adjustment Date if a Default or an Event of Default
      shall have occurred and be continuing on such Adjustment Date or the date of
      the
      Agent’s receipt of the financial statements on which such reduction is to be
      based; and (b) if the Companies fail to deliver the financial statements on
      which any reduction in applicable margins is to be based within ten (10) days
      of
      the due date for such items set forth in Paragraph 7.8(c)
      of
Section 7,
      then
      effective as of the due date for such financial statements, the Applicable
      Base
      Rate Margin shall increase to the highest margin set forth in the table above
      until the following Adjustment Date. Without
      limitation of any other provision of this Financing Agreement or any other
      remedy available to Agent or Lenders under any of the Loan Documents, if, as
      a
      result of any restatement of or other adjustment to the financial statements
      delivered by the Companies to the Agent pursuant to Paragraph 7.8(c)
      of
Section 7
      hereof
      or for any other reason, the Agent determines that (y) the Fixed Charge
      Coverage Ratio as calculated by the Companies as of any applicable date was
      inaccurate by more than 0.04 (for example, the Fixed Charge Coverage Ratio
      is
      initially reported as 1.20 to 1.00, but as corrected is 1.159 to 1.00) (a
“Material
      Adjustment”)
      and
      (z) a proper calculation of the Fixed Charge Coverage Ratio would have
      resulted in a different Applicable Base Rate Margin for any period, then in
      the
      event of a Material Adjustment (but not if a Material Adjustment has not
      occurred) (i) if the proper calculation of the Fixed Charge Coverage Ratio
      would have resulted in a higher Applicable Base Rate Margin for such period,
      the
      Companies shall automatically and retroactively be obligated to pay to the
      Agent
      promptly on demand by the Agent, an amount equal to the excess of the amount
      of
      interest and fees that should have been paid for such period over the amount
      of
      interest and fees actually paid for such period; and (ii) if the proper
      calculation of the Fixed Charge Coverage Ratio would have resulted in a lower
      Applicable Base Rate Margin for such period, the Agent shall have no obligation
      to repay any interest or fees to the Companies; provided that if, as a result
      of
      any Material Adjustment a proper calculation of the Fixed Charge Coverage Ratio
      would have resulted in a higher Applicable Base Rate Margin for one or more
      periods and a lower Applicable Base Rate Margin for one or more other periods
      (due to the shifting of income or expenses form one period to another period
      or
      any similar reason), then the amount payable by the Companies pursuant to clause
      (i) above shall be based upon the excess, if any, of the amount of interest
      and
      fees that should have been paid for all applicable periods over the amount
      of
      interest and fees paid for all such periods.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b)  as
      to
      the amount of Term Loans outstanding on any day
      -
      0.50%.

     

    Applicable
      LIBOR Margin means,
      on
      any specific date, with respect to any amount outstanding under the Revolving
      Loans or Term Loans, as the case may be, which are LIBOR Loans, the rate of
      interest per annum determined as set forth below:

     

    (a)  as
      to
      the amount of Revolver Loans outstanding on any day:

     

    (i)  during
      the period from the Closing Date until the Initial Adjustment
      Date - 1.75%; and

     

    (ii)  thereafter,
      on each Adjustment Date (beginning on the Initial Adjustment Date) and
      continuing until the next Adjustment Date, the applicable percent per annum
      set
      forth in the pricing table below opposite the relevant Fixed Charge Coverage
      Ratio calculated as of the last day of the relevant Fiscal Quarter for the
      four
      Fiscal Quarter period ending on such day:

     

    APPLICABLE
      LIBOR MARGIN

    PRICING
      TABLE

     

    
      	
              Fixed
                Charge Coverage Ratio

            	
               

            	
              Applicable
                LIBOR Margin

            
	
              (A) Greater
                than or equal to 2.25 to 1.00

            	
               

            	
              (A) 1.00%

            
	
              (B) Less
                than 2.25 to 1.00, but equal to or greater than 1.75 to
                1.00

            	
               

            	
              (B) 1.25%

            
	
              (C) Less
                than 1.75 to 1.00, but equal to or greater than 1.40 to
                1.00

            	
               

            	
              (C) 1.50%

            
	
              (D) Less
                than 1.40 to 1.00, but equal to or greater than 1.20 to
                1.00

            	
               

            	
              (D) 1.75%

            
	
              (E) Less
                than 1.20 to 1.00

            	
               

            	
              (E) 2.00%

            
	
               

            	
               

            	
               

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    All
      adjustments to the Applicable LIBOR Margin shall be implemented by the Agent
      based on the financial statements and related officer’s certificate for the
      relevant period delivered by the Companies to the Agent pursuant to Paragraph 7.8(c)
      of
Section 7
      hereof,
      and shall take effect on the Adjustment Date immediately succeeding the date
      of
      the Agent’s receipt of such financial statements. Notwithstanding the foregoing:
      (a) no reduction in Applicable Margins shall occur on an Adjustment Date if
      a Default or an Event of Default shall have occurred and be continuing on such
      Adjustment Date or the date of the Agent’s receipt of the financial statements
      on which such reduction is to be based; and (b) if the Companies fail to
      deliver the financial statements on which any reduction in applicable margins
      is
      to be based within ten (10) days of the due date for such items set forth in
      Paragraph 7.8(c)
      of
Section 7,
      then
      effective as of the due date for such financial statements, the Applicable
      LIBOR
      Margin shall increase to the highest margin set forth in the table above until
      the following Adjustment Date. Without
      limitation of any other provision of this Financing Agreement or any other
      remedy available to Agent or Lenders under any of the Loan Documents, if, as
      a
      result of any restatement of or other adjustment to the financial statements
      delivered by the Companies to the Agent pursuant to Paragraph 7.8(c)
      of
Section 7
      hereof
      or for any other reason, the Agent determines that (y) the Fixed Charge
      Coverage Ratio as calculated by the Companies as of any applicable date was
      inaccurate and such inaccuracy constitutes a Material Adjustment and (z) a
      proper calculation of the Fixed Charge Coverage Ratio would have resulted in
      a
      different Applicable LIBOR Margin for any period, then in the event of a
      Material Adjustment (but not if a Material Adjustment has not occurred)
      (i) if the proper calculation of the Fixed Charge Coverage Ratio would have
      resulted in a higher Applicable LIBOR Margin for such period, the Companies
      shall automatically and retroactively be obligated to pay to the Agent promptly
      on demand by the Agent, an amount equal to the excess of the amount of interest
      and fees that should have been paid for such period over the amount of interest
      and fees actually paid for such period; and (ii) if the proper calculation
      of the Fixed Charge Coverage Ratio would have resulted in a lower Applicable
      LIBOR Margin for such period, the Agent shall have no obligation to repay any
      interest or fees to the Companies; provided that if, as a result of any Material
      Adjustment a proper calculation of the Fixed Charge Coverage Ratio would have
      resulted in a higher Applicable LIBOR Margin for one or more periods and a
      lower
      Applicable LIBOR Margin for one or more other periods (due to the shifting
      of
      income or expenses form one period to another period or any similar reason),
      then the amount payable by the Companies pursuant to clause (i) above shall
      be
      based upon the excess, if any, of the amount of interest and fees that should
      have been paid for all applicable periods over the amount of interest and fees
      paid for all such periods.

     

    (b)  as
      to
      the amount of Term Loans outstanding on any day
      -
      2.50%.

     

    Approved
      Acquisition
      shall
      mean (a) a transaction pursuant to or as a result of which a Company
      acquires new Equipment or acquires new Real Estate or acquires the Capital
      Stock
      in or all or a substantial portion of the assets of a target Person and
      (b) as to which acquisition Agent has given its prior written consent (the
      parties hereto agreeing that such prior written consent by Agent shall satisfy
      the consent otherwise required pursuant to the provisions of Paragraph
      7.9(g)
      of
Section
      7
      of this
      Financing Agreement and that in connection with any such written consent by
      Agent that Agent intends to supply the Lenders with such information as Agent
      has regarding such proposed acquisition, provided that there shall nonetheless
      not be any impact on any such consent given by Agent or liability on part of
      Agent if Agent in fact fails to supply such information to Lenders);
provided,
      however,
      notwithstanding the foregoing, if the purchase price payable in connection
      with
      such acquisition (exclusive of any amount payable in connection with Accounts
      or
      Inventory) is greater than $3,000,000 or if, when combined with the aggregate
      purchase price payable in connection with all Approved Acquisitions (exclusive
      of any amount payable in connection with Accounts or Inventory) previously
      consented to during such Fiscal Year, the aggregate purchase price (exclusive
      of
      any amount payable in connection with Accounts or Inventory) of all Approved
      Acquisitions during such Fiscal Year which have not previously been consented
      to
      in writing by Required Lenders will exceed $8,000,000, each of Agent and the
      Required Lenders must have given its prior written consent to such acquisition
      in order for such acquisition to constitute an “Approved
      Acquisition.”

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    Approved
      Acquisition Term Loan
      shall
      mean a loan made in conjunction with an Approved Acquisition otherwise in
      conformity with the provisions of this Financing Agreement pursuant to or as
      a
      result of which a Company (a) acquires new Equipment and in connection
      therewith has requested that Lenders fund an Acquisition Term Loan in an amount
      equal to eighty-five percent (85%) of the net orderly liquidation value of
      such
      new Equipment (as determined by an appraisal in form and substance reasonably
      satisfactory to Agent, prepared by an appraiser satisfactory to Agent),
      (b) acquires new Real Estate and in connection therewith has requested that
      Lenders fund an Acquisition Term Loan in an amount equal to seventy-five percent
      (75%) of the fair market value of such new Real Estate (as determined by an
      appraisal in form and substance reasonably satisfactory to Agent, prepared
      by an
      appraiser satisfactory to Agent), or (c) acquires the Capital Stock in or
      all or a substantial portion of the assets of a target Person and in connection
      therewith has requested that Lenders fund an Acquisition Term Loan in an amount
      satisfactory to Agent (Agent’s determination of the amount of such Acquisition
      Term Loan in such case to include, but not be limited to, the net orderly
      liquidation value of any Equipment and the fair market value of any Real Estate
      acquired in such acquisition, respectively determined in a manner and pursuant
      to documentation and materials reasonably satisfactory to Agent) and in the
      case
      of (a),
      (b)
      or
(c)
      above,
      Agent, in its sole discretion, has approved Companies’ request that an
      Acquisition Term Loan be made to Companies in connection with such acquisition;
      provided,
      however,
      no
      Company may request an Acquisition Term Loan if at the time of such request
      a
      Default or Event of Default is continuing and no Acquisition Term Loan shall
      be
      made if at the date of funding of such Acquisition Term Loan a Default or Event
      of Default is continuing or if Agent shall not have received all documentation
      and materials requested by Agent in connection with such acquisition (including,
      without limitation, such environmental assessments as to Real Estate as shall
      be
      required by Agent, to be in form and substance satisfactory to Agent).

     

    Assignment
      and Transfer Agreement
      shall
      mean the Assignment and Transfer Agreement in the form of Exhibit
      A
      attached
      hereto.

     

    Availability
      shall
      mean the amount by which: (a) the Borrowing Base exceeds
      (b) the outstanding aggregate amount of all outstanding Revolving Loans
      (with the aggregate undrawn amount of the outstanding Letters of Credit not
      to
      be included in the calculation of the aggregate amount of all outstanding
      Revolving Loans).

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    Availability
      Reserve
      shall
      mean, as to any Company, the sum of: (a) (i) three (3) months rental
      payments or similar charges for any of such Company’s leased premises or other
      Collateral locations for which such Company has not delivered to the Agent
      a
      landlord’s waiver in form and substance reasonably satisfactory to the Agent,
      plus (ii) three (3) months estimated payments plus any other fees or
      charges owing by such Company to any applicable warehousemen or third party
      processor (as determined by the Agent in its reasonable business judgment),
      provided that any of the foregoing amounts shall be adjusted from time to time
      hereafter upon (x) delivery to the Agent of any such acceptable waiver,
      (y) the opening or closing of a Collateral location, and/or (z) any
      change in the amount of rental, storage or processor payments or similar
      charges; (b) any reserve which the Agent in its credit judgment requires in
      connection with fuel taxes and sales taxes; (c) any reserve which the Agent
      may reasonably require from time to time pursuant to this Financing Agreement,
      including without limitation, for Letters of Credit pursuant to Paragraph 5.1
      of
Section 5
      hereof;
      (d) any reserves which the Agent in its sole discretion deems advisable in
      connection with the Permitted Indebtedness or the Sterling Intercreditor
      Agreement; and (e) such other reserves as the Agent deems necessary in its
      reasonable judgment as a result of (i) negative forecasts and/or trends in
      such Company’s business, industry, prospects, profits, operations or financial
      condition, or (ii) other issues, circumstances or facts that could
      otherwise negatively impact the Companies, or any one of them, their business,
      prospects, profits, operations, industry, financial condition or
      assets.

     

    Banking
      Services
      shall
      mean each and any of the following bank services provided to any Company:
      (a) commercial credit cards, and (b) treasury management services
      (including, without limitation, controlled disbursement, automated clearinghouse
      transactions, return items, overdrafts and interstate depository network
      services).

     

    Banking
      Services Obligations
      shall
      mean as to Companies any and all obligations of Companies, whether absolute
      or
      contingent and howsoever and whensoever created, arising, evidenced or acquired
      (including all renewals, extensions and modifications thereof and substitutions
      therefor) in connection with Banking Services 

     

    Base
      Rate
      shall
      mean the rate of interest per annum announced by the JPMorgan Chase Bank, N.A.
      from time to time as its prime rate in effect at its principal office in New
      York City. (The prime rate is not intended to be the lowest rate of interest
      charged by the JPMorgan Chase Bank, N.A. to its borrowers).

     

    Base
      Rate Loans
      shall
      mean any loans or advances pursuant to this Financing Agreement made or
      maintained at a rate of interest based upon the Base Rate.

     

    Borrowing
      Base
      shall
      mean, as to Companies, the amount calculated as follows: (a) the
      lesser of
      (i) Revolving Line of Credit or (ii) the
      sum of
      (A) eighty-five percent (85%) of Companies’ aggregate outstanding Eligible
      Accounts Receivable and Companies’ aggregate outstanding Eligible Unbilled
      Card-Lock Customer Accounts; provided,
      however,
      that if
      the then Dilution Percentage is greater than five percent (5.0%), then the
      rate
      of advance herein shall be reduced by the percentage points by which the
      Dilution Percentage exceeds five percent (5.0%), plus
      (B) the
      sum of
      (x) sixty-five percent (65%) of the aggregate value of Companies’ Eligible
      Inventory, valued at the lower of cost or market, on an average cost basis,
      plus
      (y) sixty-five percent (65%) of the aggregate value of Companies’ Eligible
      Card-Lock Inventory, valued at the lower of cost or market, on an average cost
      basis, plus
      (C) the Eligible Equipment Based Amount, plus
      (D) one hundred percent (100%) of the aggregate Eligible Cash Surrender
      Value of Eligible Life Insurance Policy, plus
      (E) the
      lesser of
      (x) one hundred percent (100%) of the Dollar balance of the Eligible Cash
      Collateral or (y) $10,000,000, minus
      (b) any applicable Availability Reserves.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    Business
      Day
      shall
      mean any day on which the Agent and the JPMorgan Chase Bank are open for
      business.

     

    Capital
      Expenditures
      shall
      mean, for any period, the aggregate of all expenditures of the Companies during
      such period on account of property, plant, equipment or similar fixed assets
      that, in conformity with GAAP, are required to be included in or reflected
      in
      the balance sheet of the Companies.

     

    Capital
      Lease
      shall
      mean any lease of property (whether real, personal or mixed) which, in
      conformity with GAAP, is accounted for as a capital lease or a Capital
      Expenditure in the balance sheet of the Companies.

     

    Capital
      Stock
      shall
      mean, with respect to any Person, any and all shares, interests, rights to
      purchase, warrants, options, participations or other equivalents (however
      designated) of such Person’s equity, including all common stock and preferred
      stock, any limited or general partnership interest and any limited liability
      company membership interest.

     

    Cash
      Collateral Account
      shall
      mean a demand deposit, money market or other account satisfactory to Agent,
      in
      its sole discretion, maintained at a bank or financial institution satisfactory
      to Agent, in its sole discretion, which is at all times under the “control” of
      Agent for the benefit of Agent and Lenders pursuant to Section 9-104 of the
      UCC
      as collateral for the Obligations in a manner and pursuant to documentation
      satisfactory to Agent, in its sole discretion, and as to which (a) Agent,
      for the benefit of itself and the Lenders, shall have a valid enforceable first
      priority security interest, (b) no defense, counterclaim, set off or
      dispute shall exist or be asserted with respect thereto (other than any right
      of
      setoff permitted to the relevant bank or other financial institution pursuant
      to
      the provisions of the control agreement executed in connection with such
      account), and (c) no security interests exist other than the security
      interest of Agent (other than any security interest which may be permitted
      to
      the relevant bank or other financial institution pursuant to the provisions
      of
      the control agreement executed in connection with such account).

     

    Casualty
      Proceeds
      shall
      mean (a) payments or other proceeds from an insurance carrier with respect
      to any loss, casualty or damage to Collateral and (b) payments received on
      account of any condemnation or other government taking of any
      Collateral.

     

    CIT
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    Citibank
      Texas
      shall
      mean Citibank, N.A., successor by merger to Citibank Texas, N.A., formerly
      known
      as First American Bank SSB.

     

    Closing
      Date
      shall
      mean the date that this Financing Agreement has been duly executed by the
      parties hereto and delivered to the Agent.

     

    Collateral
      shall
      mean all present and future property of the Companies, including, without
      limitation, all present and future Accounts, Equipment, Inventory, Documents
      of
      Title, General Intangibles, Real Estate and Other Collateral of each of the
      Companies.

     

    Commitment
      shall
      mean, as
      to any
      Lender, the amount of the commitment for such Lender set forth on the signature
      page to this Financing Agreement or in the Assignment and Transfer Agreement
      to
      which such Lender is a party, as such amount may be reduced or increased in
      accordance with the provisions of Paragraph
      13.4(b)
      of
Section
      13
      or any
      other applicable provision of this Financing Agreement.

     

    Companies
      shall
      have the meaning given to such term in the opening paragraph of this Financing
      Agreement.

     

    Consolidated
      Balance Sheet shall
      mean a consolidated or compiled, as applicable, balance sheet for the Parent,
      the Companies and the consolidated subsidiaries of each, eliminating all
      inter-company transactions and prepared in accordance with GAAP.

     

    Copyrights
      shall
      mean all of each of the Companies’ present and hereafter acquired copyrights,
      copyright registrations, recordings, applications, designs, styles, licenses,
      marks, prints and labels bearing any of the foregoing, goodwill, any and all
      general intangibles, intellectual property and rights pertaining thereto, and
      all cash and non-cash proceeds thereof.

     

    Current
      Assets
      shall
      mean those assets of the Companies which, in accordance with GAAP, are
      classified as current.

     

    Current
      Liabilities
      shall
      mean those liabilities of the Companies which, in accordance with GAAP, are
      classified as “current.”

     

    Default
      shall
      mean any event specified in Section 10
      hereof,
      whether or not any requirement for the giving of notice, the lapse of time,
      or
      both, or any other condition, event or act, has been satisfied.

     

    Default
      Rate of Interest
      shall
      mean a rate of interest per annum on any Obligations hereunder, equal to the
      lesser of: (a) the Maximum Legal Rate, or (b) the sum of: (i) two
      percent (2%), and (ii) the applicable increment over the Base Rate (as set
      forth in Paragraph 8.1
      of
Section
      8
      hereof)
      plus the Base Rate, or the applicable increment over the LIBOR Rate (as set
      forth Paragraph 8.14
      of
Section
      8
      hereof)
      plus the LIBOR Rate, which the Agent and the Lenders shall be entitled to charge
      the Companies on all Obligations due to the Agent and the Lenders by the
      Companies, as further set forth in Paragraph 10.2
      of
Section 10
      hereof.

     

    Depository
      Accounts
      shall
      mean the collection accounts, which are subject to the Agent’s instructions, as
      specified in Paragraph 3.4
      of
Section 3
      hereof.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    Dilution
      Percentage shall
      mean, as of any time of calculation, the then sum of Companies’ credits, claims,
      allowances, discounts, write-offs, credits issued as a result of actual customer
      contra charges made, offsets and deductions divided by the then sum of Trade
      Accounts Receivables, all calculated on a rolling ninety (90) day average,
      as
      determined by and calculated by the Agent from time to time.

     

    Documentation
      Agent
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Documentation
      Fee
      shall
      mean the Agent’s standard fees relating to any and all modifications, waivers,
      releases, amendments or additional collateral with respect to this Financing
      Agreement, the Collateral and/or the Obligations.

     

    Documents
      of Title
      shall
      mean all of each of the Companies’ present and future documents (as defined in
      the UCC), and any and all warehouse receipts, bills of lading, shipping
      documents, chattel paper, instruments and similar documents, all whether
      negotiable or not and all goods and Inventory relating thereto and all cash
      and
      non-cash proceeds of the foregoing.

     

    Dollars or $
      shall
      mean lawful currency of the United States of America.

     

    EBITDA shall
      mean, in any period, all net earnings of the Companies for said period before
      (a) all interest and tax obligations, (b) depreciation,
      (c) amortization of the Companies for said period, (d) other non-cash
      items for said period agreed to by Agent as long as the aggregate amount of
      such
      non-cash items does not exceed three percent (3.00%) of the amount of EBITDA
      in
      such period as calculated prior to the non-cash items referred to in this
clause d,
      and
      (e) other non-cash items for said period agreed to by Required Lenders,
      determined in accordance with GAAP on a basis consistent with the latest audited
      financial statements of the Companies, but excluding the effect of extraordinary
      or non-recurring gains or losses for such period.

     

    Eligible
      Accounts Receivable
      shall
      mean, as to any Company, the gross amount of such Company’s Trade Accounts
      Receivable that are subject to a valid, exclusive, first priority and fully
      perfected security interest in favor of the Agent, for the benefit of the
      Lenders, which conform to the warranties contained herein and which, at all
      times, continue to be acceptable to the Agent, in the exercise of its reasonable
      business judgment, less, without duplication, the sum of: (a) any returns,
      discounts, claims, credits and allowances of any nature (whether issued, owing,
      granted, claimed or outstanding), and (b) reserves for any such Trade
      Accounts Receivable that arise from or are subject to or include: (i) sales
      to the United States of America, any state or other governmental entity or
      to
      any agency, department or division thereof, except for any such sales as to
      which such Company has complied with the Assignment of Claims Act of 1940 or
      any
      other applicable statute, rules or regulation, to the Agent’s satisfaction in
      the exercise of its reasonable business judgment; provided,
      however,
      the
      foregoing provisions of this clause
      (b)(i)
      shall
      not apply to sales to a municipality or a school district unless the Agent
      determines in its sole discretion that payments of accounts by such municipality
      or school district are covered by a statute, rule or regulation similar to
      the
      Assignment of Claims Act of 1940 as to sales to the United States of America,
      in
      which case such Accounts will be ineligible unless such Company has complied
      with such statute, rule or regulation to the Agent’s satisfaction in the
      exercise of its reasonable business judgment; (ii) foreign sales, other
      than sales which otherwise comply with all of the other criteria for eligibility
      hereunder and are (x) secured by letters of credit (in form and substance
      satisfactory to the Agent and with respect to which the Companies have complied
      with the provisions of Paragraph
      6.9
      of
Section
      6
      hereof)
      issued or confirmed by, and payable at, banks having a place of business in
      the
      United States of America, or (y) to customers residing in Canada provided
      such Accounts do not exceed $500,000 in the aggregate at any one time;
      (iii) Accounts that remain unpaid more than (A) thirty (30) days from
      invoice date for Accounts subject to ten (10) days (or less) payment terms
      and
      (B) ninety (90) days from invoice date for Accounts subject to any other
      lengthier payment terms; (iv) contra accounts; (v) sales to Parent,
      any other Company, any subsidiary, or to any company affiliated with the
      Companies or Parent in any way; (vi) bill and hold (deferred shipment) or
      consignment sales; (vii) sales to any customer which is:
      (A) insolvent, (B) the debtor in any bankruptcy, insolvency,
      arrangement, reorganization, receivership or similar proceedings under any
      federal or state law, (C) negotiating, or has called a meeting of its
      creditors for purposes of negotiating, a compromise of its debts, or
      (D) financially unacceptable to the Agent or has a credit rating
      unacceptable to the Agent; (viii) all sales to any customer if fifty
      percent (50%) or more of the
      aggregate dollar amount of all outstanding invoices to such customer are unpaid
      more than (A) thirty (30) days from invoice date for Accounts subject to
      ten (10) days (or less) payment terms, and (B) ninety (90) days from
      invoice date for Accounts subject to any other lengthier payment terms;
      (ix) pre-billed receivables and receivables arising from progress billing;
      (x) an amount representing, historically, returns, discounts, claims,
      credits, allowances and applicable terms; (xi) sales not payable in United
      States currency; (xii) sales of propane fuel to consumers to the extent the
      aggregate amount of such Accounts from such consumer propane customers exceeds
      $3,000,000, to the extent of such excess, (xiii) any amounts payable to
      Companies by or through GASCARD pursuant to the provisions of the GASCARD
      Agreement, and (xiv) any other reasons deemed necessary by the Agent in its
      reasonable business judgment, including without limitation those which are
      customary either in the commercial finance industry or in the lending practices
      of the Agent or the Lenders.

     

    
      
        
        

      

      
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    Eligible
      Card-Lock Inventory shall
      mean, as to any Company, such Company’s finished goods Inventory which would
      otherwise constitute Eligible Inventory, except for the fact that it is located
      at any of the card-lock locations of such Company.

     

    Eligible
      Cash Collateral shall
      mean the amount of Dollars on deposit in the Cash Collateral Account and
      reflected in the most recent information regarding the Cash Collateral Account
      delivered to Agent (which in all events shall be delivered no less frequently
      than monthly) in which Agent, on behalf of itself and Lenders, has a valid
      and
      enforceable first priority perfected security interest; provided,
      however,
      that
“Eligible Cash Collateral” shall not include (a) such portion of such
      amount to the extent that any defense, counterclaim, setoff or dispute is
      asserted with respect to such portion; (b) such portion of such amount that
      (i) is not owned by a Company or (ii) is subject to any security
      interest of any Person, other than the security interest in favor of Agent,
      on
      behalf of itself and the Lenders and other than any security interest which
      may
      be permitted to the relevant bank or other financial institution pursuant to
      the
      provisions of the control agreement executed in connection with such Cash
      Collateral Account; (c) such portion of such amount as to which any of the
      representations or warranties in this Financing Agreement and the other Loan
      Documents are untrue; (d) such portion of such amount to the extent such
      Dollars are on deposit in the Cash Collateral Account because of the
      requirements of other provisions of this Financing Agreement; or (e) such
      portion of such amount to the extent that because of the occurrence and
      continuation of a Default or Event of Default or material negative financial
      performance of the Companies, Agent has determined in its sole discretion that
      such portion of such amount shall no longer constitute “Eligible Cash
      Collateral.”

     

    
      
        
        

      

      
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    Eligible
      Cash Surrender Value of Eligible Life Insurance Policy
      shall
      mean the aggregate cash surrender value of the Eligible Life Insurance Policy
      to
      the extent the Agent is satisfied in its sole discretion such cash surrender
      value is unconditionally payable without offset or defense by such insurer
      to
      the Agent and without any right of recoupment thereto of such
      insurer.

     

    Eligible
      Equipment
      shall
      mean, as to any Company, such Company’s Equipment consisting of tractors,
      trailers, trucks and other motor vehicles of such Company, to the extent such
      Equipment (a) is subject to a valid, exclusive first priority and fully
      perfected security interest in favor of the Agent, for the benefit of the
      Lenders, (b) conforms to the warranties contained herein, (c) is
      acceptable to the Agent, in the exercise of its reasonable business judgment,
      to
      be included as a component of the Eligible Equipment Based Amount, (d) is
      covered by the provisions of the Equipment Analysis, and (e) is fully
      insured in the manner required under this Financing Agreement.

     

    Eligible
      Equipment Based Amount
      shall
      mean, as of any relevant date of determination, (a) eighty percent (80%) of
      the Eligible Equipment of Companies consisting of rolling stock which is owned
      by a Company and is covered by the provisions of the Equipment Analysis, with
      this amount to be reduced on the first day of each calendar month, beginning
      February 1, 2005, by an amount equal to 1/48 of the aggregate amount determined
      pursuant to clause
      (a)
      above,
minus
      (b) the greater of the net orderly liquidation value or fair market value,
      as determined by the Agent, of any Equipment described in clause
      (a)
      above
      which is sold, transferred, exchanged or otherwise disposed of or suffers any
      loss or damage because of fire or other casualty or in which the Agent does
      not
      have or ceases to have valid, exclusive first priority and fully perfected
      security interest.

     

    Eligible
      Inventory shall
      mean, as to any Company, the gross amount of such Company’s finished goods
      Inventory consisting of gasoline, diesel and propane fuel, lubricants, oil
      and
      chemicals that is subject to a valid, exclusive, first priority and fully
      perfected security interest in favor of the Agent, for the benefit of the
      Lenders, and which conforms to the warranties contained herein and which, at
      all
      times, continues to be acceptable to the Agent in the exercise of its reasonable
      business judgment, less,
      without
      duplication, any (a) work-in-process, (b) supplies and raw materials,
      (c) Inventory not present in the United States of America,
      (d) Inventory returned or rejected by any of the Company’s customers (other
      than goods that are undamaged and resalable in the normal course of business)
      and goods to be returned to a Company’s suppliers, (e) Inventory in transit
      to third parties (other than a Company’s agents or warehouses), or in the
      possession of a warehouseman, bailee, third party processor, or other third
      party, unless such warehouseman, bailee or third party has executed a notice
      of
      security interest agreement (in form and substance satisfactory to the Agent)
      and the Agent, for the benefit of the Lenders, shall have a first priority
      perfected security interest in such Inventory, (f) Inventory located at any
      of the card-lock locations of a Company, and (g) less any reserves required
      by the Agent in its reasonable discretion, including without limitation for
      special order goods, discontinued, slow-moving and obsolete Inventory, market
      value declines, bill and hold (deferred shipment), consignment sales, shrinkage
      and any applicable customs, freight, duties and Taxes.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    Eligible
      Life Insurance Policy
      shall
      mean that certain life insurance policy maintained by the Companies on the
      life
      of Jack E. Walcher to the extent such life insurance policy has been
      assigned to the Agent as collateral for the Obligations pursuant to
      documentation in form and substance satisfactory to the Agent, which assignment
      documentation shall have been unconditionally agreed to and acknowledged in
      writing by the relevant issuer of such life insurance policy (such assignment
      documentation being referred to in this Financing Agreement as the “Life
      Insurance Assignment Documentation”).

     

    Eligible
      Unbilled Card-Lock Customer Accounts
      shall
      mean bona fide final sales of fuel to customers of a Company at card-lock
      locations which have not yet been invoiced by such Company, but which are
      invoiced to the relevant Account Debtor at pre-determined weekly or monthly
      intervals, to the extent such a card-lock sales transaction is evidenced by
      detailed timely sale information in form and substance and satisfactory to
      the
      Agent, in its sole discretion, and to the extent such Account represents a
      final
      sale that would otherwise constitute an Eligible Accounts Receivable except
      for
      the fact such Account has not yet been invoiced. Once such Card-Lock sales
      transaction is invoiced, it no longer constitutes an “Eligible Unbilled
      Card-Lock Customer Account.”

     

    Employee
      Plan shall
      mean any employee benefit plan, program or policy with respect to which any
      Company or any ERISA Affiliate may have any liability or any obligation to
      contribute, other than a Plan or a Multiemployer Plan.

     

    Environmental
      Laws shall
      mean applicable federal, state or local laws, rules or regulations, and any
      applicable judicial interpretations thereof, including any judicial or
      administrative order, judgment, permit, approval decision or determination,
      in
      each case pertaining to conservation or protection of the environment, in effect
      at the time in question, including the Clean Air Act, the Comprehensive
      Environmental Response, Compensation and Liability Act (“CERCLA”),
      the
      Federal Water Pollution Control Act, the Occupational Safety and Health Act,
      the
      Resource Conservation and Recovery Act, the Safe Drinking Water Act, the Toxic
      Substances Control Act, the Superfund Amendments and Reauthorization Act of
      1986, the Hazardous Materials Transportation Act and analogous state and local
      laws as may be amended from time to time thereby imposing either more or less
      stringent requirements as relates to activity occurring after the Closing Date
      of any such amendments.

     

    Equipment shall
      mean all of each Companies’ present and hereafter acquired equipment (as defined
      in the UCC) including, without limitation, all machinery, equipment, furnishings
      and fixtures, and all additions, substitutions and replacements thereof,
      wherever located, together with all attachments, components, parts, equipment
      and accessories installed thereon or affixed thereto and all proceeds thereof
      of
      whatever sort.

     

    Equipment
      Analysis
      shall
      mean an analysis in form and substance reasonably satisfactory to the Agent,
      in
      its sole discretion, of the net orderly liquidation value of certain Equipment
      of the Companies, prepared at such time and in a manner and by a person
      satisfactory to the Agent, in its sole discretion.

     

    
      
        
        

      

      
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    ERISA
      shall
      mean the Employee Retirement Income Security Act or 1974, as amended from time
      to time and the rules and regulations promulgated thereunder from time to
      time.

     

    ERISA
      Affiliate
      shall
      mean (a) any person which, together with any Company, is treated as a
“single employer” under Section 414 of the Internal Revenue Code of 1986,
      as amended, and the regulations thereunder, and (b) any Subsidiary of any
      Company.

     

    Eurocurrency
      Reserve Requirements
      for any
      day, as applied to a LIBOR Loan, shall mean the aggregate (without duplication)
      of the maximum rates of reserve requirements (expressed as a decimal fraction)
      in effect with respect to the Agent or any Lender on such day (including,
      without limitation, basic, supplemental, marginal and emergency reserves under
      Regulation D or any other applicable regulations of the Board of Governors
      of
      the Federal Reserve System or other governmental authority having jurisdiction
      with respect thereto, as now and from time to time in effect, dealing with
      reserve requirements prescribed for Eurocurrency funding (currently referred
      to
      as “Eurocurrency
      Liabilities”
in
      Regulation D of such Board) maintained by the Agent or any Lender (such rate
      to
      be adjusted to the nearest one sixteenth of one percent (1/16 of 1%) or, if
      there is not a nearest one sixteenth of one percent (1/16 of 1%), to the next
      higher one sixteenth of one percent (1/16 of 1%)).

     

    Event(s)
      of Default
      shall
      have the meaning provided for in Section 10
      hereof.

     

    Existing
      Financing Agreement
      shall
      have the meaning given such term in the Recitals to this Financing
      Agreement.

     

    Existing
      Lenders
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Fee
      Letter
      shall
      mean that certain fee letter dated on or before the date hereof, among Companies
      and Agent, in form and substance mutually agreeable to Agent and the
      Companies.

     

    Financing
      Agreement
      means
      this Second Amended and Restated Financing Agreement, as the same may be
      modified, supplemented, extended, amended or restated from time to
      time.

     

    Fiscal
      Quarter
      shall
      mean, with respect to the Companies, each three (3) month period ending on
      March
      31, June 30, September 30 and December 31 of each Fiscal Year.

     

    Fiscal
      Year
      shall
      mean each twelve (12) month period commencing on January 1 of each year and
      ending on the following December 31.

     

    Fixed
      Charge Coverage Ratio
      shall
      mean, for the relevant period, the ratio determined by dividing EBITDA by the
      sum of (a) the amount of principal and interest repaid or scheduled to be
      repaid on the Indebtedness during such period (other than (i) such
      voluntary prepayments of principal and interest as to which the Agent and the
      Lenders have agreed in writing should not be included in this clause
      (a),
      (ii) the principal repaid on Revolving Loans and (iii) any mandatory
      prepayments of the Term Loans out of Surplus Cash generated during such period
      as required pursuant to Paragraph
      4.4(c)
      of
Section
      4
      hereof),
      (b) all cash dividends paid by the Companies to their shareholders and the
      redemption price of all Capital Stock redeemed by the Companies,
      (c) Unfinanced Capital Expenditures actually incurred by the Companies, and
      (d) all federal, state and local income tax expenses due and payable net of
      any tax refund received by the Companies.

     

    
      
        
        

      

      
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    Fixed
      Charges
      shall
      mean, for the relevant period, the sum of (a) the amount of principal and
      interest repaid or scheduled to be repaid on the Indebtedness during such period
      (other than (i) such voluntary prepayments of principal and interest as to
      which the Agent and the Lenders have agreed in writing should not be included
      in
      this clause
      (a),
      (ii) the principal repaid on Revolving Loans and (iii) any mandatory
      prepayments of the Term Loans out of Surplus Cash generated during such period
      as required pursuant to Paragraph
      4.4(c)
      of
Section
      4
      hereof),
      (b) all dividends paid by the Companies to their shareholders and the
      redemption price of all Capital Stock redeemed by the Companies,
      (c) Unfinanced Capital Expenditures actually incurred by the Companies, and
      (d) all federal, state and local income tax expenses due and payable net of
      any tax refund received by the Companies.

     

    GAAP
      shall
      mean generally accepted accounting principles in the United States of America
      as
      in effect from time to time and for the period as to which such accounting
      principles are to apply, provided that in the event the Companies modify their
      accounting principles and procedures as applied as of the Closing Date, the
      Companies shall provide such statements of reconciliation as shall be in form
      and substance reasonably acceptable to the Agent.

     

    GASCARD
      shall
      have the meaning given to such term in the GASCARD Agreement.

     

    GASCARD
      Agreement
      shall
      mean that certain GASCARD SUBLICENSE AGREEMENT entered into by United, West
      Texas Gas, Inc. and the other parties signatory thereto, as the same may be
      renewed, restated and amended from time to time, together with all agreements
      executed in substitution therefor.

     

    General
      Intangibles
      shall
      mean all of each of the Companies’ present and hereafter acquired general
      intangibles (as defined in the UCC), and shall include, without limitation,
      all
      present and future right, title and interest in and to: (a) all Trademarks,
      tradenames, corporate names, business names, logos and any other designs or
      sources of business identities, (b) Patents, together with any improvements
      on said Patents, utility models, industrial models, and designs,
      (c) Copyrights, (d) trade secrets, (e) licenses, permits and
      franchises, (f) all applications with respect to the foregoing,
      (g) all right, title and interest in and to any and all extensions and
      renewals, (h) goodwill with respect to any of the foregoing, (i) any
      other forms of similar intellectual property, (j) all customer lists,
      distribution agreements, supply agreements, blue prints, indemnification rights
      and tax refunds, together with all monies and claims for monies now or hereafter
      due and payable in connection with any of the foregoing or otherwise, and all
      cash and non-cash proceeds thereof, including, without limitation, the proceeds
      or royalties of any licensing agreements between any Company and any licensee
      of
      any such Company’s General Intangibles.

     

    Guaranties
      shall
      mean the guaranty documents executed and delivered by the Guarantors
      guaranteeing the Obligations.

     

    Guarantors
      shall
      mean Parent and any other person or entity who hereafter guarantees payment
      of
      all or any portion of the Obligations.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    Indebtedness
      shall
      mean, without duplication, all liabilities, contingent or otherwise, which
      are
      any of the following: (a) obligations in respect of borrowed money or for
      the deferred purchase price of property, services or assets, other than
      Inventory, or (b) lease obligations which, in accordance with GAAP, have
      been, or which should be capitalized.

     

    Initial
      Adjustment Date
      shall
      mean the later of (a) February 1, 2008 or (b) the tenth day after
      the delivery to Agent pursuant to Paragraph 7.8(c)
      of
Section 7
      hereof
      of the financial statements of the Companies for the month ending
      December 31, 2007.

     

    Initial
      Term Loan shall
      mean the term loan in the principal amount $6,000,000 made by the Lenders to
      the
      Companies on the Closing Date on the terms and conditions set forth in
Paragraph
      4.2
      of
Section
      4
      of this
      Financing Agreement.

     

    Insurance
      Proceeds
      shall
      mean proceeds or payments from an insurance carrier with respect to any loss,
      casualty or damage to Collateral.

     

    Interest
      Period
      shall
      mean:

     

    (a)  with
      respect to any initial request by any of the Companies for a LIBOR Loan, a
      one
      month, two month or three month period commencing on the borrowing or conversion
      date with respect to a LIBOR Loan and ending one, two or three months
      thereafter, as applicable; and

     

    (b)  thereafter
      with respect to any continuation of, or conversion to, a LIBOR Loan, at the
      option of any of the Companies, any one month, two month or three month period
      commencing on the last day of the immediately preceding Interest Period
      applicable to such LIBOR Loan and ending one, two or three months thereafter,
      as
      applicable;

     

    provided
      that,
      the
      foregoing provisions relating to Interest Periods are subject to the
      following:

     

    (i)  if
      any
      Interest Period would otherwise end on a day which is not a Working Day, that
      Interest Period shall be extended to the next succeeding Working Day, unless
      the
      result of such extension would extend such payment into another calendar month
      in which event such Interest Period shall end on the immediately preceding
      Working Day;

     

    (ii)  any
      Interest Period that begins on the last Working Day of a calendar month (or
      on a
      day for which there is no numerically corresponding day in the calendar month,
      at the end of such Interest Period) shall end on the last Working Day of a
      calendar month; and

     

    (iii)  for
      purposes of determining the availability of Interest Periods, such Interest
      Periods shall be deemed available if (x) JP Morgan Chase Bank quotes an
      applicable rate or the Agent determines LIBOR, as provided in the definition
      of
      LIBOR, (y) LIBOR determined by JP Morgan Chase Bank or the Agent will
      adequately and fairly reflect the cost of maintaining or funding its loans
      bearing interest at LIBOR, for such Interest Period, and (z) such Interest
      Period will end on or before the earlier of Anniversary Date or the last day
      of
      the then current term of this Financing Agreement. If a requested Interest
      Period shall be unavailable in accordance with the foregoing sentence, the
      Companies shall continue to pay interest on the Obligations at the applicable
      per annum rate based upon the Base Rate.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    Inventory
      shall
      mean all of each of the Companies’ present and hereafter acquired inventory (as
      defined in the UCC) and including, without limitation, all merchandise,
      inventory and goods, and all additions, substitutions and replacements thereof,
      wherever located, together with all goods and materials used or usable in
      manufacturing, processing, packaging or shipping same in all stages of
      production from raw materials through work-in-process to finished goods - and
      all proceeds thereof of whatever sort.

     

    Investment
      Property shall
      mean all now owned and hereafter acquired investment property (as defined in
      the
      UCC) and all proceeds thereof.

     

    Issuing
      Bank
      shall
      mean the bank issuing Letters of Credit for the Companies.

     

    Letters
      of Credit
      shall
      mean all letters of credit issued with the assistance of the Lenders (acting
      through the Agent) in accordance with Section 5
      hereof
      by the Issuing Bank for or on behalf of a Company.

     

    Letter
      of Credit Guaranty
      shall
      mean the guaranty delivered by the Agent, on behalf of the Lenders, to the
      Issuing Bank of any Company reimbursement obligations under the Issuing Bank’s
      reimbursement agreement, application for Letter of Credit or other like
      document.

     

    Letter
      of Credit Guaranty Fee
      shall
      mean the fee the Agent, on behalf of the Lenders, may charge the Companies
      under
Paragraph 8.3
      of
Section 8
      hereof
      for: (a) issuing a Letter of Credit Guaranty, and/or (b) otherwise
      aiding the Companies, or any one of them, in obtaining Letters of Credit, all
      pursuant to Section 5
      hereof.

     

    Letter
      of Credit Sub-Line
      shall
      mean the commitment of the Lenders to assist the Companies in obtaining Letters
      of Credit, pursuant to Section 5
      hereof,
      in an aggregate amount of $5,000,000.00.

     

    LIBOR
      shall
      mean, at any time of determination, and subject to availability, for each
      applicable Interest Period, a variable rate of interest equal to: (a) at
      the Agent’s election (i) the applicable LIBOR quoted to the Agent by JP
      Morgan Chase Bank (or any successor thereof), or (ii) the rate of interest
      determined by the Agent at which deposits in U.S. dollars are offered for the
      relevant Interest Period based on information presented on Reuters Screen
      LIBOR01 Page as of 11:00 A.M. (London time) on the day which is two (2) Business
      Days prior to the first day of such Interest Period, provided that,
      if at
      least two such offered rates appear on Reuters Screen LIBOR01 Page in respect
      of
      such Interest Period, the arithmetic mean of all such rates (as determined
      by
      the Agent) will be the rate used; divided by (b) a number equal to 1.0
      minus the aggregate (but without duplication) of the rates (expressed as a
      decimal fraction) of Eurocurrency Reserve Requirements in effect on the day
      which is two (2) Business Days prior to the beginning of such Interest
      Period.

     

    LIBOR
      Lending Office
      shall
      mean, (a) with respect to the Agent and CIT, shall mean the office of JP
      Morgan Chase Bank, or any successor thereof, maintained at 270 Park Avenue,
      New
      York, NY 10017, and (b) with respect to each Lender, the address set forth
      on the signature page to this Financing Agreement or the Assignment and Transfer
      Agreement to which such Lender is a party.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    LIBOR
      Loan
      shall
      mean any loans made pursuant to this Financing Agreement which are made or
      maintained at a rate of interest based upon LIBOR, provided that (a) no
      Default or Event of Default has occurred hereunder, which has not been waived
      in
      writing by the Agent and the Required Lenders, and (b) no LIBOR Loan shall
      be made with an Interest Period that ends subsequent to an Anniversary Date
      or
      any applicable Termination Date.

     

    Life
      Insurance Assignment Documentation
      shall
      have the meaning given to such term in the definition of “Eligible Life
      Insurance Policy.”

     

    Line
      of Credit shall
      mean the aggregate commitment of the Lenders in an amount equal to $90,000,000
      to (a) make Revolving Loans pursuant to Section
      3
      of this
      Financing Agreement, (b) assist Companies in opening Letters of Credit
      pursuant to Section
      5
      of this
      Financing Agreement, and (c) make the Term Loans pursuant to Section
      4
      of this
      Financing Agreement.

     

    Line
      of Credit Fee
      shall:
      (a) mean the fee payable to the Agent, for the benefit of the Lenders, due
      at the end of each month for the Revolving Line of Credit and the Acquisition
      Term Loan Line of Credit, and (b) such fee to be equal to the sum of the
      amounts set forth below in clause
      (i)
      and
(ii)
      and
      determined as follows: (i) multiplying (x) the difference between
      (A) the Revolving Line of Credit, and (B) the sum, for said month, of
      the average daily balance of Revolving Loans plus the average daily balance
      of
      Letters of Credit outstanding for said month, by (y) one-quarter of one
      percent (0.25%) per annum for the number of days in said month, and
      (ii) multiplying (x) the difference between (A) Acquisition Term
      Loan Line of Credit and (B) the aggregate amount of Acquisition Term Loans
      made pursuant to this Financing Agreement as of the last day of said month,
      by
      (y) one quarter of one percent (0.25%) per annum for the number of days in
      said month.

     

    Loan
      Documents
      shall
      mean this Financing Agreement, the Promissory Notes, any mortgages and deeds
      of
      trust on any Real Estate, the Fee Letter, the Sterling Intercreditor Agreement,
      each Subordination Agreement, the Guaranties, the Life Insurance Assignment
      Documentation, the control agreements, any stock pledge agreements, other
      collateral documents, any other closing documents and any other ancillary loan
      and security agreements executed from time to time in connection with this
      Financing Agreement, all as may be renewed, amended, extended, increased or
      supplemented from time to time.

     

    Material
      Adjustment
      shall
      have the meaning given such term in the definition of “Applicable Base Rate
      Margin.”

     

    Maximum
      Legal Rate
      shall
      mean the maximum lawful interest rate which may be contracted for, charged,
      taken, received or reserved under this Financing Agreement or the other Loan
      Documents by the Agent and the Lenders, in accordance with applicable state
      or
      federal law (whichever provides for the highest permitted rate), taking into
      account all items contracted for, charged or received in connection with the
      Obligations evidenced hereby which are treated as interest under the applicable
      state or federal law, as such rate may change from time to time. The Maximum
      Legal Rate shall be calculated in a manner that takes into account any and
      all
      fees, payments and other charges in respect of the Loan Documents that
      constitute interest under applicable law. Each change in any interest rate
      provided for herein based upon the Maximum Legal Rate resulting from a change
      in
      the Maximum Legal Rate shall take effect without notice to the Companies at
      the
      time of such change in the Maximum Legal Rate. For purposes of determining
      the
      Maximum Legal Rate under Texas law, the applicable rate ceiling shall be:
      (a) the “weekly ceiling” described in and computed in accordance with the
      provisions of Section 303.003 of the Texas Finance Code, as amended; or
      (b) if the parties subsequently contract as allowed by Texas law, the
      quarterly ceiling or the annualized ceiling computed pursuant to Section 303.008
      of the Texas Finance Code, as amended; provided, however, that at any time
      the
“weekly ceiling”, the quarterly ceiling or the annualized ceiling shall be less
      than 18% per annum or more than 24% per annum, the provisions of Section
      303.009(a) and Section 303.009(c) of the Texas Finance Code, as amended, shall
      control for purposes of such determination, as applicable.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

       

    

    Multiemployer
      Plan shall
      mean any plan which is a “multiemployer plan” (as such term is defined in
      Section 4001(a)(3) of ERISA) to which each Company or any ERISA Affiliate
      contributes or has any obligation or liability to make contributions, including
      any withdrawal liability, contingent or otherwise.

     

    Net
      Worth
      shall
      mean, at any date of determination, an amount equal to (a) Total Assets
      minus (b) Total Liabilities, and shall be determined in accordance with
      GAAP, on a consistent basis with the latest audited financial statements of
      the
      Companies.

     

    Obligations shall
      mean all loans, advances and extensions of credit made or to be made by the
      Agent and the Lenders to the Companies (or any of them), or to others for the
      Companies’ account (including, without limitation, all Revolving Loans, all Term
      Loans and Letter of Credit Guaranties); any and all indebtedness and obligations
      which may at any time be owing by the Companies (or any of them) to the Agent
      or
      to CIT or any Affiliate of CIT or to any other Lender, howsoever arising,
      whether now in existence or incurred by the Companies, or any one of them,
      from
      time to time hereafter (including, without limitation, Banking Services
      Obligations and Swap Obligations, provided
      that as
      to any Swap Obligation to which a Lender other than CIT is a party thereto,
      such
      Lender shall have delivered to Agent prior written notice before any transaction
      relating to such Swap Obligation is entered into); whether principal, interest,
      fees, costs, expenses or otherwise; whether secured by pledge, lien upon or
      security interest in any of the Companies’ Collateral, assets or property or the
      assets or property of any other person, firm, entity or corporation; whether
      such indebtedness is absolute or contingent, joint or several, matured or
      unmatured, direct or indirect and whether the Companies, or any one of them,
      are
      liable to the Agent or to CIT or to any Affiliate of CIT or to any other Lender
      for such indebtedness as principal, surety, endorser, guarantor or otherwise,
      including, without limitation, indebtedness and obligations of Companies to
      the
      Agent or any Lender pursuant to the Companies’ Guaranty. Obligations shall also
      include indebtedness owing to the Agent or any Lender by the Companies, or
      any
      one of them, under any Loan Document; indebtedness or obligations incurred
      by,
      or imposed on, the Agent or any Lender as a result of environmental claims
      arising out of any of the Companies’ operations, premises or waste disposal
      practices or sites in accordance with Paragraph 7.7
      of
Section
      7
      hereof;
      the Companies’ liability to the Agent as maker or endorser of any promissory
      note or other instrument for the payment of money; any of the Company’s
      liability to the Agent or any Lender under any instrument of guaranty or
      indemnity, or arising under any guaranty, endorsement or undertaking which
      the
      Agent, on behalf of the Lenders, may make or issue to others for the Companies’
account, including any Letter of Credit Guaranty or other accommodation extended
      by the Agent with respect to applications for Letters of Credit, the Agent’s
      acceptance of drafts or the Agent’s endorsement of notes or other instruments
      for the Companies’ account and benefit.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

       

    

    Operating
      Leases
      shall
      mean all leases of property (whether real, personal or mixed) other than Capital
      Leases.

     

    Original
      Financing Agreement
      shall
      have the meaning given to such term in the Recitals to this Financing
      Agreement.

     

    Other
      Collateral
      shall
      mean all of each of the Companies’ now owned and hereafter acquired lockbox,
      blocked account and any other deposit accounts maintained with any bank or
      financial institutions into which the proceeds of Collateral are or may be
      deposited; all other deposit accounts and all Investment Property; all cash
      and
      other monies and property in the possession or control of the Agent or any
      Lender; all books, records, ledger cards, disks and related data processing
      software at any time evidencing or containing information relating to any of
      the
      Collateral described herein or otherwise necessary or helpful in the collection
      thereof or realization thereon; and all cash and non-cash proceeds of the
      foregoing.

     

    Out-of-Pocket
      Expenses
      shall
      mean all of the Agent’s present and future expenses incurred relative to this
      Financing Agreement or any other Loan Document, whether incurred heretofore
      or
      hereafter, which expenses shall include, without being limited to, (a) the
      cost of record searches, all costs and expenses incurred by the Agent in opening
      bank accounts, depositing checks, receiving and transferring funds, and wire
      transfer charges, any charges imposed on the Agent due to returned items and
      “insufficient funds” of deposited checks and the Agent’s standard fees relating
      thereto, (b) any amounts paid by, incurred by or charged to, the Agent by
      the Issuing Bank under a Letter of Credit Guaranty or a Company’s reimbursement
      agreement, application for Letters of Credit or other like document which
      pertain either directly or indirectly to such Letters of Credit, and the Agent’s
      standard fees relating to the Letters of Credit and any drafts thereunder,
      (c) title insurance premiums and real estate survey costs, (d) travel,
      lodging and similar expenses of the Agent’s personnel in connection with
      inspecting and monitoring the Collateral from time to time hereunder,
      (e) any reasonable applicable counsel fees and disbursements, (f) fees
      and taxes relative to the filing of financing statements and recording of real
      estate lien documents, and (g) all expenses, costs and fees set forth in
Paragraph 10.3
      of
Section 10
      hereof.

     

    Overadvance
      Rate
      shall
      mean a rate equal to: the lesser of (a) the Maximum Legal Rate or
      (b) one-half of one percent (1/2%) per annum in excess of the applicable
      contract rate of interest determined in accordance with Paragraph 8.1(a)
      of
Section
      8
      hereof.

     

    Overadvances
      shall
      mean the amount by which (a) the sum of all outstanding Revolving Loans
plus
      the
      undrawn amount of all outstanding Letters of Credit exceeds (b) the
      Borrowing Base.

     

    Parent
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Patents
      shall
      mean all of each of the Companies’ present and hereafter acquired patents,
      patent applications, registrations, any reissues or renewals thereof, licenses,
      any inventions and improvements claimed thereunder, and all general intangible,
      intellectual property and patent rights with respect thereto of the Companies
      or
      any one of them, and all income, royalties, cash and non-cash proceeds
      thereof.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

    

    Permitted
      Encumbrances
      shall
      mean (a) liens identified in Schedule 1
      attached
      hereto; (b) Purchase Money Liens; (c) liens of local or state
      authorities for franchise or other like Taxes, provided that the aggregate
      amounts of such liens shall not exceed $100,000.00 in the aggregate at any
      one
      time; (d) statutory liens of landlords and liens of carriers, warehousemen,
      bailees, mechanics, materialmen and other like liens imposed by law, created
      in
      the ordinary course of business and for amounts not yet due (or which are being
      contested in good faith, by appropriate proceedings or other appropriate actions
      which are sufficient to prevent imminent foreclosure of such liens) and with
      respect to which adequate reserves or other appropriate provisions are being
      maintained by the Companies in accordance with GAAP; (e) deposits made (and
      the liens thereon) in the ordinary course of business of the Companies
      (including, without limitation, security deposits for leases, indemnity bonds,
      surety bonds and appeal bonds) in connection with workers’ compensation,
      unemployment insurance and other types of social security benefits or to secure
      the performance of tenders, bids, contracts (other than for the repayment or
      guarantee of borrowed money or purchase money obligations), statutory
      obligations and other similar obligations arising as a result of progress
      payments under government contracts; (f) easements (including, without
      limitation, reciprocal easement agreements and utility agreements),
      encroachments, minor defects or irregularities in title, variation and other
      restrictions, charges or encumbrances (whether or not recorded) affecting the
      Real Estate, if applicable, and which in the aggregate (A) do not
      materially interfere with the occupation, use or enjoyment by any of the
      Companies of their business or the property so encumbered and (B) in the
      reasonable business judgment of the Agent do not materially and adversely affect
      the value of such Real Estate; (g) liens granted the Agent, for the benefit
      of the Lenders, by the Companies or any one of them; (h) liens of judgment
      creditors provided such liens do not exceed, in the aggregate, at any time,
      $50,000.00 (other than liens bonded or insured to the reasonable satisfaction
      of
      the Agent); (i) tax liens which are not yet due and payable or which are
      being diligently contested in good faith by the Companies by appropriate
      proceedings, and which liens are not (x) filed on any public records,
      (y) senior to the liens of the Agent, or (z) for Taxes due the United
      States of America or any state thereof having similar priority statutes, as
      further set forth in Paragraph 7.6
      hereof
      of Section
      7;
      and
      (j) liens in favor of Sterling as to property of United to the extent
      described in the Sterling Intercreditor Agreement, but only to the extent such
      liens only secure the Sterling Term Loan.

     

    Permitted
      Indebtedness shall
      mean (a) the Indebtedness existing on the Closing Date and described on
Schedule
      7.15(e)
      hereof
      (provided that after the Closing Date there are no increases in the principal
      balance or changes in the payment terms of such Indebtedness or changes in
      any
      collateral therefor), (b) the Sterling Term Loan, and (c) any
      extension of any of the Indebtedness described in clauses
      (a)
      and
(b)
      above
      provided such extension does not involve an increase in the unpaid principal
      balance thereof or increase in the principal amortization or payment terms
      thereof.

     

    Person
      shall
      mean any individual, partnership, joint venture, firm, corporation, limited
      liability company or partnership, association, trust or other enterprise or
      any
      government or political subdivision or any agency, department or instrumentality
      thereof.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

       

    

    Plan shall
      mean any employee pension benefit plan (as defined in Section 3(2) of
      ERISA), subject to Title IV of ERISA or Section 412 of the Internal
      Revenue Code of 1986, as amended, other than a Multiemployer Plan, with respect
      to which any Company or an ERISA Affiliate contributes or has an obligation
      or
      liability to contribute, including any such plan that may have been
      terminated.

     

    PNC
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Preferred
      Stock
      shall
      mean any issued and outstanding Series A 8% Cumulative Convertible Preferred
      Stock of Parent as of the Closing Date. 

     

    Prepayment
      Premium
      shall
      mean an amount equal to the product obtained by multiplying the principal amount
      of any Term Loan prepaid (other than mandatory prepayments made from Surplus
      Cash) by (i) one-half of one percent (0.50)% if such prepayment occurs on
      or before the first anniversary of the Closing Date, and one-quarter of one
      percent (0.25%) if such prepayment occurs after the first anniversary of the
      Closing Date.

     

    Promissory
      Notes
      shall
      mean, collectively, (i) the notes in the form of Exhibit
      B
      (in the
      case of the Initial Term Loan) and Exhibit
      C
      (in the
      case of any Acquisition Term Loan) and Exhibit D
      (in the
      case of Revolving Loans) and Exhibit F
      (in the
      case of the Three D Real Property Term Loan) attached hereto, delivered by
      the Companies to each Lender to evidence the loans made by such Lender to the
      Companies pursuant to Section 3
      and
Section 4
      of this
      Financing Agreement, and (ii) the note in the form of Exhibit E
      attached
      hereto, delivered by the Companies to the Swingline Lender to evidence the
      Swingline Loans made by Swingline Lender pursuant to Section 3
      of this
      Financing Agreement.

     

    Propane
      Division
      shall
      mean the property of Customers directly related to the supply and sale by
      Companies of propane fuel to their residential and commercial propane fuel
      customers.

     

    Propane
      Tanks
      shall
      mean propane tanks of United used in the sale by United of propane fuel to
      its
      residential and commercial propane fuel users.

     

    Pro
      Rata Percentage
      shall
      mean, as to each Lender at any time, a fraction (expressed as a percentage),
      the
      numerator of which is the amount of such Lender’s Commitment at such time and
      the denominator of which is the aggregate amount of all Commitments at such
      time
      (or in the event that the Commitments of the Lenders hereunder have terminated,
      the numerator of which is the principal amount of loans then owed to such Lender
      hereunder and the denominator of which is the principal amount of loans then
      owed to all Lenders hereunder, as reflected by CIT’s System); provided
      that
      CIT’s Commitment with respect to Swingline Loans shall be excluded when
      determining CIT’s Pro Rata Percentage hereunder.

     

    Purchase
      Money Liens
      shall
      mean liens on any item of Equipment acquired after the date of this Financing
      Agreement provided that (a) each such lien shall attach only to the
      property to be acquired, (b) a description of the Equipment so acquired is
      furnished to the Agent, and (c) the debt incurred in connection with such
      acquisitions shall not exceed, in the aggregate, $2,500,000 in any Fiscal
      Year.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

       

    

    Real
      Estate
      shall
      mean each of each Company’s fee and/or leasehold interests in real
      property.

     

    Required
      Lenders
      shall
      mean (a) at all times while there are (2) two or fewer Lenders hereunder,
      all of the Lenders, and (b) at all times while there are three (3) or more
      Lenders hereunder, those Lenders holding at least fifty-one percent (51%) of
      the
      total Commitments (excluding CIT’s Commitment with respect to Swingline Loans)
      under the Line of Credit (or fifty-one percent (51%) of the outstanding
      principal amount of all loans outstanding hereunder, as reflected by CIT’s
      System, in the event that the Commitments of the Lenders hereunder have
      terminated).

     

    Revolving
      Line of Credit
      shall
      mean the aggregate commitment of the Lenders to make loans and advances pursuant
      to Section 3
      hereof
      and issue Letters of Credit Guaranties to the Companies, in the aggregate amount
      of $70,000,000.00.

     

    Revolving
      Loan Account
      shall
      mean the accounts on the Agent’s books, in each Company’s name, in which each
      Company will be charged with all applicable Obligations under this Financing
      Agreement.

     

    Revolving
      Loans
      shall
      mean the loans and advances made, from time to time, to or for the account
      of
      each of the Companies by the Agent and the Lenders (including the Swingline
      Lender) pursuant to Section 3
      hereof.

     

    Settlement
      Date
      shall
      mean: (a) with respect to Revolving Loans other than Swingline Loans,
      Wednesday of each week (or if any Wednesday is not a Business Day on which
      all
      Lenders are open for business, the immediately preceding Business Day on which
      all Lenders are open for business), provided
      that the
      Agent, in its discretion, may require that the Settlement Date with respect
      to
      Revolving Loans other than Swingline Loans occur more frequently (even daily)
      so
      long as such Settlement Date is a Business Day on which each Lender is open
      for
      business; and (b) with respect to Swingline Loans, any date specified by
      the Swingline Lender upon notice (oral or written) to the Agent, so long as
      such
      date is a Business Day on which each Lender is open for business.

     

    Sterling
      shall
      mean Sterling Bank.

     

    Sterling
      Intercreditor Agreement
      shall
      mean that certain Second Amended and Restated Intercreditor Agreement, dated
      on
      or about the Closing Date, among Sterling, Agent and Lenders, detailing the
      respective rights of Sterling and the Agent as to assets of United and covering
      other matters relating to the credit facility established by this Financing
      Agreement and the Sterling Term Loan.

     

    Sterling
      Term Loan
      shall
      mean, collectively, the existing term loans from Sterling to United which as
      of
      the Closing Date have an aggregate unpaid principal balance of $4,654,516,
      which
      term loans are secured only by the real property of United, together with
      improvements thereon and fixtures affixed thereto and certain equipment located
      thereon, as well as the propane equipment of United, all as described in the
      Sterling Intercreditor Agreement.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

       

    

    Sterling
      Term Loan Documentation
      shall
      mean the documentation evidencing, securing and otherwise executed in connection
      with or relating to the Sterling Term Loan.

     

    Subordinated
      Debt
      shall
      mean the debt due a Subordinating Creditor (and the note(s) evidencing such)
      which has been subordinated, by a Subordination Agreement, to the prior payment
      and satisfaction of the Obligations of the Companies to the Agent and the
      Lenders.

     

    Subordinating
      Creditor
      shall
      mean any party hereafter executing a Subordination Agreement.

     

    Subordination
      Agreement
      shall
      mean the agreement (in form and substance satisfactory to the Agent) among
      the
      Companies, a Subordinating Creditor and the Agent, on behalf of the Lenders,
      pursuant to which Subordinated Debt is subordinated to the prior payment and
      satisfaction of the Companies’ Obligations to the Agent and the
      Lenders.

     

    Subsidiary
      shall
      mean any corporation or other entity of whose shares of stock or other ownership
      interests having ordinary voting power (other than stock or other ownership
      interests having such power only by reason of the happening of a contingency)
      to
      elect a majority of the directors of such corporation, or other persons
      performing similar functions for such entity, are owned, directly or indirectly,
      by any Company.

     

    Surplus
      Cash
      shall
      mean for any fiscal year of the Companies, the excess of Companies’ EBITDA for
      such fiscal year minus
      the
      Companies’ Fixed Charges for such fiscal year.

     

    SunTrust shall
      have the meaning given such term in opening paragraph of this Financing
      Agreement.

     

    Swap
      Agreement
      shall
      mean any agreement with respect to any swap, forward, future or derivative
      transaction or option or similar agreement involving, or settled by reference
      to, one or more rates, currencies, commodities, equity or debt instruments
      or
      securities, or economic, financial or pricing indices or measures of economic,
      financial or pricing risk or value or any similar transaction or any combination
      of these transactions, provided
      that no
      phantom stock or similar plan providing for payments only on account of services
      provided by current or former directors, officers, employers or consultants
      of
      Companies shall be a Swap Agreement.

     

    Swap
      Obligations
      shall
      mean as to any Company any and all obligations of such Company, whether absolute
      or contingent and howsoever and whensoever created, arising, evidenced or
      acquired (including all renewals, extensions and modifications thereof and
      substitutions therefor) under (a) any and all Swap Agreements and
      (b) any and all cancellations, buybacks, reversals, terminations, or
      assignments of any Swap Agreement transaction.

     

    Swingline
      Commitment
      shall
      mean the commitment of the Swingline Lender to make Swingline Loans to the
      Companies pursuant to Paragraph 3.1(b)
      of
Section
      3
      of this
      Financing Agreement, not to exceed ten percent (10%) of the Revolving Line
      of
      Credit in effect from time to time.

     

    Swingline
      Lender
      shall
      mean CIT and its successors and assigns.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

       

    

    Swingline
      Loan
      shall
      have the meaning given to such term in Paragraph 3.1(b)
      of
Section
      3
      hereof

     

    Taxes
      shall
      mean all federal, state, municipal and other governmental taxes, levies,
      charges, claims and assessments which are or may be due by the Companies with
      respect to their business, operations, Collateral or otherwise.

     

    Term
      Loans
      shall
      mean, collectively, the Initial Term Loan and the Acquisition Term Loans, and
      the Three D Real Property Term Loan. 

     

    Termination
      Date shall
      mean the date on which this Financing Agreement is terminated, whether by notice
      of termination given by one of the parties hereto or by the provisions of this
      Financing Agreement. Notice of termination by any one Company shall be deemed
      to
      be notice by the Companies for purposes hereof.

     

    Termination
      Fee
      shall:
      (a) mean the fee that the Lenders are entitled to charge the Companies in
      the event of termination of the Revolving Line of Credit or this Financing
      Agreement; and (b) be determined by multiplying the Revolving Line of
      Credit, by (i) one-half of one percent (0.50%) if the Termination Date
      occurs on or before the first anniversary of the Closing Date, and
      (ii) one-quarter of one percent (0.25%) if the Termination Date occurs
      after the first anniversary of the Closing Date.

     

    Three D
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Three D
      Real Property Term Loan
      shall
      mean the term loan in the principal amount of $1,000,000 to be made by the
      Lenders to the Companies on the terms and conditions set forth in Paragraph 4.4
      of
Section 4
      of this
      Financing Agreement.

     

    Three D
      Real Property Term Loan Conditions Precedent
      shall
      mean each of the following conditions which conditions must be satisfied in
      a
      manner and pursuant to documentation satisfactory to Agent (or have been waived
      in writing by Agent) before the Three D Real Property Term Loan shall be
      made pursuant to Paragraph 4.4
      of
Section 4
      of this
      Financing Agreement:

     

    (a) Agent
      shall have received evidence satisfactory to Agent, in its sole discretion,
      that
      Agent, for the benefit of itself and the Lenders, has a valid perfected first
      priority lien against the real property in Anderson County, Texas and Gregg
      County, Texas, owned by Three D, free and clear of all defects and
      encumbrances other than Permitted Encumbrances; and

     

    (b) All
      of
      the conditions precedent specified in Section 2
      of this
      Financing Agreement shall have been and continue to be satisfied (or waived
      in
      writing by Agent).

     

    Total
      Assets
      shall
      mean total assets determined in accordance with GAAP, on a basis consistent
      with
      the latest audited financial statements of the Companies.

     

    Total
      Liabilities
      shall
      mean total liabilities determined in accordance with GAAP, on a basis consistent
      with the latest audited financial statements of the Companies.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

       

    

    Trade
      Accounts Receivable
      shall
      mean that portion of each of the Companies’ Accounts which arises from the sale
      of Inventory or the rendition of services in the ordinary course of the
      Companies’ business.

     

    Trademarks
      shall
      mean all of each of the Companies’ present and hereafter acquired trademarks,
      trademark registrations, recordings, applications, tradenames, trade styles,
      service marks, prints and labels (on which any of the foregoing may appear),
      licenses, reissues, renewals, and any other intellectual property and trademark
      rights pertaining to any of the foregoing, together with the goodwill associated
      therewith, and all cash and non-cash proceeds thereof.

     

    UCC
      shall
      mean the Uniform Commercial Code as the same may be amended and in effect from
      time to time in the state of Texas.

     

    Unfinanced
      Capital Expenditures
      shall
      mean Capital Expenditures incurred by the Companies to the extent not funded
      with either (i) proceeds of Indebtedness secured by Purchase Money Liens
      (other than the Revolving Loans); or (ii) proceeds of cash infusions of
      equity.

     

    United
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Wachovia
      shall
      have the meaning given such term in the opening paragraph of this Financing
      Agreement.

     

    Working
      Capital
      shall
      mean Current Assets in excess of Current Liabilities.

     

    Working
      Day
      shall
      mean any Business Day on which dealings in foreign currencies and exchanges
      between banks may be transacted.

     

    SECTION
      2.  Conditions
      Precedent

     

    2.1  Notwithstanding
      any other provisions of this Financing Agreement or any of the other Loan
      Documents and without affecting in any manner the rights of Agent or any Lender
      under the other Sections of this Financing Agreement, it is understood and
      agreed that neither Agent nor any Lender will make any initial loans under
      Section
      3
      or
Section
      4
      of this
      Financing Agreement unless and until each of the following conditions has been
      and continues to be satisfied (or has been waived in writing by Agent), all
      in
      form and substance satisfactory to Agent, in its sole discretion, and that
      the
      release by Agent and Lenders of the existing guaranty and stock pledge agreement
      executed by Thomas E. Kelly pursuant to Paragraph
      12.15
      of
Section 12
      of this
      Financing Agreement is conditioned upon each of the following conditions having
      been satisfied (or waived in writing by Agent), all in form and substance
      satisfactory to Agent, in its sole discretion:

     

    (a)  Lien
      Searches
      - The
      Agent shall have received updated tax, judgment and Uniform Commercial Code
      searches satisfactory to the Agent for all locations presently occupied or
      used
      by each of the Companies, United and Parent.

     

    
      
        
        

      

      
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    (b)  UCC
      Filings
      - The
      Agent shall have verified to its satisfaction that all financing statements
      required to be filed in order to create, in favor of the Agent, on behalf of
      the
      Lenders, a first perfected security interest in (i) the Collateral, subject
      only to the Permitted Encumbrances, and all stock in United and the Companies,
      are properly filed in each office in each jurisdiction required in order to
      create in favor of the Agent a perfected lien on the Collateral. 

     

    (c)  Ratifications
      and Confirmations
      - Each
      of the Companies and Parent, shall have executed and delivered to the Agent,
      on
      behalf of the Lenders, (i) this Financing Agreement and
      (ii) amendments to, or ratifications and confirmations of, all Loan
      Documents previously executed by such parties, each of which shall be in form
      and substance satisfactory to the Agent.

     

    (d)  Board
      Resolution
      - The
      Agent shall have received a certified copy of the resolutions of the Board
      of
      Directors of each of the Companies and Parent authorizing (as applicable) the
      execution, delivery and performance of this Financing Agreement and the
      documents described in Paragraph
      2.1(c)
      of this
Section
      2,
      together with a certificate of the Secretary or Assistant Secretary of each
      of
      the Companies and Parent (as the case may be) as to the incumbency and signature
      of the officers of each executing such documents.

     

    (e)  Officer’s
      Certificate
      - The
      Agent shall have received an executed Officer’s Certificate of each of the
      Companies and Parent, in form and substance satisfactory to the Agent,
      certifying that (i) the representations and warranties contained herein are
      true and correct in all material respects on and as of the Closing Date;
      (ii) each of the Companies and Parent is in compliance with all of the
      terms and provisions set forth herein; and (iii) no Default or Event of
      Default has occurred.

     

    (f)  Opinions
      -
      Counsel for the Companies and Parent shall have delivered to the Agent, on
      behalf of the Lenders, a legal opinion satisfactory to the Agent opining to
      such
      matters incident to the transactions covered by this Financing Agreement and
      the
      other Loan Documents as the Agent and the Lenders may require, and the Companies
      and Parent authorize and direct such counsel to deliver such opinion to the
      Agent.

     

    (g)  Absence
      of Default
      - No
      Default or Event of Default shall have occurred and no material adverse change
      shall have occurred in the financial condition, business, prospects, profits,
      operations or assets of any of the Companies, Parent or any other
      Guarantor.

     

    (h)  Legal
      Restraints/Litigation
      - As of
      the Closing Date, there shall be no (x) litigation, investigation or
      proceeding (judicial or administrative) pending or threatened against any of
      the
      Companies, Parent or any other Guarantor, or any of their assets, by any agency,
      division or department of any county, city, state or federal government arising
      out of this Financing Agreement; (y) injunction, writ or restraining order
      restraining or prohibiting the consummation of the financing arrangements
      contemplated under this Financing Agreement; or (z) suit, action,
      investigation or proceeding (judicial or administrative) pending against any
      of
      the Companies, Parent or any other Guarantor, or any of their assets, which,
      in
      the opinion of the Agent, if adversely determined, could have a material adverse
      effect on the business, operation, assets, financial condition or Collateral
      of
      the Companies, Parent or any other Guarantor.

     

    
      
        
        

      

      
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    (i)  Sterling
      Intercreditor Agreement
      -
      Companies shall have delivered the Sterling Intercreditor Agreement to Agent,
      duly executed by Sterling.

     

    (j)  Additional
      Documents
      - Each
      of the Companies and Parent (as applicable) shall have executed and delivered
      to
      the Agent, on behalf of the Lenders, or arranged for the execution and delivery
      to the Agent, all other documents and agreement deemed necessary by the Agent
      to
      consummate the transactions contemplated by this Financing
      Agreement.

     

    (k)  Existing
      Credit Facility with Citibank Texas.
      (i) Three D’s existing credit facility with Citibank Texas shall be
      terminated, (ii) all loans and obligations of the Companies and the
      Guarantors with respect thereto shall be paid or satisfied in full utilizing
      the
      proceeds of the Initial Term Loan to be made under this Financing Agreement,
      (iii) all liens and security interests in favor of Citibank Texas in
      connection therewith shall be terminated and/or released upon such payment,
      and
      (iv) all documentation with respect thereto shall be terminated including,
      without limitation, the First American Term Loan Documentation and the First
      American Intercreditor Agreement (as each such term is defined in the Existing
      Financing Agreement).

     

    (l)  [Reserved]

     

    (m)  Schedules.
      The
      Companies shall have supplemented or restated all Schedules to this Financing
      Agreement to the extent necessary to make such Schedules true and correct in
      all
      material respects as of the Closing Date.

     

    (n)  Payoff
      of Existing Indebtedness of United to William H. Clark, Jr. and Martin T.
      Clark.
      (i) All indebtedness of the Companies and the Guarantors as to
      William H. Clark, Jr. and Martin T. Clark shall be paid or satisfied
      in full utilizing the proceeds of the Initial Term Loan to be made under this
      Financing Agreement, and (ii) all liens and security interests in favor of
      William H. Clark, Jr. and/or Martin T. Clark in connection therewith
      shall be terminated and released upon such payment.

     

    (o)  Mortgages.
      The
      Companies shall have executed and delivered to the Agent (or to an agent of
      the
      Agent or an agent of the Title Insurance Company) executed mortgages and deeds
      of trust in form and substance satisfactory to the Agent covering the Real
      Estate, and the Agent shall have received evidence that all charges for mortgage
      taxes and recording fees, if any, shall be paid upon the recording of each
      mortgage or deed of trust.

     

    (p)  Title
      Insurance Policies.
      The
      Agent shall have received, in respect of each mortgage and deed of trust
      described in Paragraph
      2.1(o)
      above
      (but not including, however, any deed of trust or mortgage if pursuant to the
      Sterling Intercreditor Agreement, Sterling has a lien in the Real Estate covered
      thereby superior to the lien therein of Agent), a mortgagee’s marked-up
      unconditional commitment for title insurance from a title insurance company
      reasonably satisfactory to the Agent (the “Title
      Insurance Company”).
      Each
      such commitment shall obligate the Title Insurance Company to issue to the
      Agent, for the benefit of the Lenders, a title insurance policy: (i) in an
      amount not less than the appraised fair market value of the Real Estate covered
      thereby; (ii) that insures that the mortgage or deed of trust insured
      thereby creates a valid first priority lien on the Real Estate covered thereby,
      free and clear of all defects and encumbrances except for Permitted
      Encumbrances; (iii) that names the Agent, for the benefit of the Lenders,
      as the insured thereunder; and (iv) that contains such endorsements and
      effective coverage as the Agent may reasonably require, including, without
      limitation, a revolving line of credit endorsement. The Agent also shall have
      received evidence that all premiums in respect of the policies to be issued
      have
      or will be paid on the Closing Date.

     

    
      
        
        

      

      
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    (q)  Surveys.
      The
      Agent and the Title Insurance Company shall have received such surveys of the
      Real Estate and all improvements thereon as shall be required by Agent, each
      of
      which shall be in form and substance reasonably satisfactory to the Agent,
      prepared by an independent licensed land surveyor satisfactory to the Agent
      and
      certified to the Agent and the Title Company.

     

    Upon
      the
      execution of this Financing Agreement and the initial disbursement of loans
      hereunder, all of the above Conditions Precedent shall have been deemed
      satisfied except as otherwise set forth hereinabove or as the Companies, the
      Agent and the Lenders shall otherwise agree in writing.

     

    2.2  Conditions
      to Each Extension of Credit

     

    Except
      to
      the extent expressly set forth in this Financing Agreement, the agreement of
      the
      Agent and the Lenders to make any extension of credit requested to be made
      by it
      to any of the Companies on any date (including without limitation, the initial
      extension of credit) is subject to the satisfaction of the following conditions
      precedent:

     

    (a)  Representations
      and Warranties
      - Each
      of the representations and warranties made by each of the Companies in or
      pursuant to this Financing Agreement shall be true and correct in all material
      respects on and as of such date as if made on and as of such date.

     

    (b)  No
      Default
      - No
      Default or Event of Default shall have occurred and be continuing on such date
      or after giving effect to the extension of credit requested to be made on such
      date.

     

    (c)  Borrowing
      Base
      - Except
      as may be otherwise agreed to from time to time by the Agent and the Companies
      in writing, after giving effect to the extension of credit requested to be
      made
      by any of the Companies on such date, the aggregate outstanding balance of
      the
      Revolving Loans and outstanding Letters of Credit owing by each of the Companies
      will not exceed the lesser of (i) the Revolving Line of Credit or
      (ii) the Borrowing Base.

     

    Each
      borrowing by a Company hereunder shall constitute a representation and warranty
      by the Companies as of the date of such loan or advance that each of the
      representations, warranties and covenants contained in the Financing Agreement
      have been satisfied and are true and correct, except as the Companies, the
      Agent
      and the Lenders shall otherwise agree herein or in a separate
      writing.

     

    SECTION
      3.  Loans
      and Advances.

     

    3.1  (a) On
      the
      Closing Date, the “Revolving Loans” (as defined in the Existing Financing
      Agreement) held by Existing Lenders under the Existing Financing Agreement
      shall
      automatically, and without any action on the part of any Person, be deemed
      to be
      Revolving Loans under this Financing Agreement, and the Additional Lenders
      shall
      by assignments from Existing Lenders (which assignments shall be deemed to
      occur
      automatically, and without the requirement for additional documentation, on
      the
      Closing Date) acquire a portion of the Revolving Loans of the Existing Lenders
      so designated in such amounts and the Lenders shall, through Agent, make such
      other adjustments among themselves as shall be necessary so that after giving
      effect to such assignments and adjustments, the Lenders shall hold Revolving
      Loans in an amount not greater than their respective Pro Rata Percentages.
      Subject to the terms and conditions of this Financing Agreement, the Agent
      and
      the Lenders, pro rata
      in
      accordance with their respective Pro Rata Percentages, severally (and not
      jointly) agree to make loans and advances to each of the Companies on a
      revolving basis (i.e. subject to the limitations set forth herein, each of
      the
      Companies may borrow, repay and re-borrow Revolving Loans). Such requests for
      loans and advances shall be in amounts not to exceed the lesser of (a) the
      Availability, or (b) the Revolving Line of Credit. All requests for loans
      and advances must be received by an officer of the Agent no later than
      (i) 1:00 p.m., New York time, of the Business Day on which any such Base
      Rate Loans and advances are required or (ii) three Business Days prior to
      any requested LIBOR Loan. Should the
      Agent
      (within the limits set forth in Paragraph
      14.10
      of
Section
      14
      hereof)
      or the Lenders for any reason honor requests for Overadvances, any such
      Overadvances shall be made in the Agent’s or the Lenders’ (as applicable) sole
      discretion and subject to any additional terms the Agent or the Lenders deem
      necessary.
      The
      Agent, on behalf of the Lenders, shall disburse all loans and advances to the
      Companies and shall handle all collections of Collateral and repayment of all
      Obligations. It is understood that for purposes of advances to the Companies
      and
      for purposes of this Paragraph 3.1(a)
      of
Section
      3,
      the
      Agent will be using the funds of the Agent, and pending settlement, all interest
      accruing on such advances shall be payable to the Agent.

     

    
      
        
        

      

      
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    (b)  (i) The
      Agent and the Lenders agree that in order to facilitate the administration
      of
      the financing arrangement contemplated by this Financing Agreement, promptly
      after United or the other Company requests from the Agent a loan or advance
      hereunder, the Swingline Lender may elect to have the terms of this Paragraph
      3.1(b)
      of
Section 3
      apply to
      such borrowing request by advancing to such Company the amount of such requested
      loan or advance on the applicable borrowing date (each such loan or advance
      made
      by the Swingline Lender shall be referred to herein as a “Swingline
      Loan”),
      with
      settlement among the Lenders as to the Swingline Loans to take place on a
      periodic basis as set forth in Paragraph 3.1(b)(iv)
      of this
Section
      3
      below.
      Each Swingline Loan shall be subject to all the terms and conditions applicable
      to other Revolving Loans funded by the Lenders, except that (i) prior to
      any settlement thereof among the Lenders, all payments thereon shall be payable
      to the Swingline Lender solely for its own account and (ii) the requirement
      that the Companies request a LIBOR Loan three Business Days prior to the funding
      thereof shall not apply. The aggregate amount of Swingline Loans outstanding
      at
      any time shall not exceed ten percent (10%) of the Revolving Line of Credit
      in
      effect from time to time. The Swingline Lender shall not make any Swingline
      Loan
      if the requested Swingline Loan would exceed the Availability immediately before
      giving effect to such Swingline Loan (i.e. no Overadvances permitted by
Paragraph
      14.10
      of
Section
      14
      hereof
      shall be made as Swingline Loans). However, Swingline Loans may be made even
      if
      a Default or Event of Default exists so long as the Required Lenders have not
      terminated the Commitments pursuant to Paragraph
      10.2
      of
Section
      10
      hereof.

     

    
      
        
        

      

      
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    (ii)  Upon
      the
      making of a Swingline Loan (whether before or after the occurrence of a Default
      or Event of Default and regardless of whether a Settlement has been requested
      with respect to such Swingline Loan), each Lender shall be deemed, without
      further action by any party hereto, to have unconditionally and irrevocably
      purchased from the Swingline Lender, without recourse or warranty, an undivided
      interest and participation in such Swingline Loan equal to such Lender’s Pro
      Rata Percentage of such Swingline Loan. The Swingline Lender may at any time
      upon notice to the Agent, require that the Lenders immediately fund their
      respective participations in the Swingline Loans on any Settlement Date with
      respect to Swingline Loans. From and after the date, if any, on which any Lender
      has funded its participation in any Swingline Loan purchased hereunder, the
      Agent shall promptly distribute to such Lender, such Lender’s Pro Rata
      Percentage of all payments of principal and interest, and all proceeds of
      Collateral, received by the Agent after such date in respect of such Swingline
      Loan.

     

    (iii)  Unless
      the Agent or the Swingline Lender shall have been notified in writing by any
      Lender that prior to any advance to the Companies that such Lender will not
      make
      the amount which would constitute its Pro Rata Percentage of such borrowing
      on
      such date available to the Agent on the next Settlement Date, the Agent and
      the
      Swingline Lender may assume that such Lender shall make such amount available
      to
      the Agent on the next Settlement Date, and in reliance upon such assumption,
      the
      Agent or the Swingline Lender, as the case may be, may make available to the
      Companies a corresponding amount. A certificate of the Agent submitted to any
      Lender with respect to any amount owing under this subsection shall be
      conclusive, absent manifest error. If such Lender’s Pro Rata Percentage of such
      borrowing is not in fact made available to the Agent by such Lender on the
      Settlement Date, the Agent shall be entitled to recover from the Companies,
      within three (3) Business Days after written demand, such Lender’s Pro Rata
      Percentage of such borrowing, together with interest thereon (for the account
      of
      the Agent) at the rate per annum applicable to such borrowing, without prejudice
      to any rights which the Agent may have against such Lender under Paragraph
      13.3
      of
Section
      13
      hereof.
      Nothing contained herein shall be deemed to obligate the Agent or the Swingline
      Lender to make available to the Companies the full amount of a requested advance
      when the Agent or the Swingline Lender has any notice (written or otherwise)
      that any of the Lenders will not advance its Pro Rata Percentage
      thereof.

     

    (iv)  On
      each
      Settlement Date with respect to loans other than Swingline Loans, the Agent
      and
      the Lenders shall each remit to the other, in immediately available funds,
      all
      amounts necessary so as to ensure that, as of the Settlement Date, the Lenders
      shall have advanced their respective Pro Rata Percentages of all outstanding
      loans. On each Settlement Date with respect to Swingline Loans, each Lender
      shall remit to the Agent, for the account of the Companies, such Lender’s Pro
      Rata Percentage of the Swingline Loans outstanding as of such date, and the
      Agent shall, in turn, remit such funds to the Swingline Lender for application
      against the Swingline Loans then outstanding. All payments made by the Lenders
      on any Settlement Date with respect to Swingline Loans shall constitute
      Revolving Loans to the Companies.

     

    (v)  Each
      Lender’s obligation to make the Revolving Loans referred to in Paragraph 3.1(a)
      of
Section 3
      above
      and to make the settlements pursuant to this Paragraph 3.1(b)
      of
Section 3
      shall be
      absolute and unconditional and shall not be affected by any circumstance,
      including without limitation (v) any set-off, counterclaim, recoupment,
      defense or other right which any such Lender or the Companies may have against
      the Agent, the other Companies, any other Lender or any other person,
      (w) the occurrence or continuance of a Default or an Event of Default,
      (x) any adverse change in the condition (financial or otherwise) of the
      Companies, or any of them, (y) any breach of this Financing Agreement or
      any other Loan Document by the Companies (or any of them) or any other Lender
      or
      (z) any other circumstance, happening or event whatsoever, whether or not
      similar to any of the foregoing.

     

    
      
        
        

      

      
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    (vi)  Companies
      agree to execute and deliver to each Lender a Promissory Note in the form of
      Exhibit D
      attached
      hereto to evidence the Pro Rata Percentage of the Revolving Loans extended
      to
      the Companies by such Lender.

     

    (vii)  Companies
      agree to execute and deliver to the Swingline Lender a Promissory Note in the
      form of Exhibit E
      attached
      hereto to evidence the Swingline Loans made by Swingline Lender to the
      Companies.

     

    3.2  On
      or
      before the 10th
      day of
      each month, the Companies agree to furnish Agent with a borrowing base
      certificate in form and substance satisfactory to Agent, certified by the
      treasurer or chief financial officer of each Company (or any other authorized
      officer satisfactory to Agent), together with such confirmatory schedules of
      Trade Accounts Receivable and Inventory and such other information regarding
      the
      other components of the Borrowing Base as Agent may request (all in form and
      substance satisfactory to Agent); provided,
      however,
      if
      after the Closing Date the Companies’ Availability is less than $5,000,000 for
      five (5) consecutive Business Days, the borrowing base certificate and other
      materials described above shall be furnished to Agent at least once each week
      until such time as Companies’ Availability has been equal to or greater than
      $5,000,000 for twenty (20) consecutive Business Days whereupon the submission
      of
      such a borrowing base certificate and other such materials shall again occur
      on
      a monthly basis; and further
      provided,
      however,
      that if
      a Default or an Event of Default has occurred and is continuing, Companies
      shall
      submit such borrowing base certificates and such other materials as frequently
      as shall be reasonably requested by Agent. In addition and in furtherance of
      the
      continuing assignment and security interest in each of the Companies’ Accounts
      and Inventory, each of the Companies will execute and deliver to Agent, in
      form
      and substance reasonably satisfactory to Agent, such other appropriate reports
      designating, identifying and describing the Accounts and Inventory as the Agent
      may reasonably request. In addition, upon the Agent’s request, each of the
      Companies shall provide the Agent with copies of agreements with, or purchase
      orders from, such Companies’ customers, and copies of invoices to customers,
      proof of shipment or delivery, access to their computers, electronic media
      and
      software programs associated therewith (including any electronic records,
      contracts and signatures) and such other documentation and information relating
      to said Accounts and other Collateral as the Agent may reasonably require.
      Failure to provide the Agent with any of the foregoing shall in no way affect,
      diminish, modify or otherwise limit the security interests granted herein.
      Each
      of the Companies hereby authorizes the Agent to regard the Companies’ printed
      name or rubber stamp signature on assignment schedules or invoices as the
      equivalent of a manual signature by one of the Companies’ authorized officers or
      agents.

     

    3.3  Each
      of
      the Companies hereby represents and warrants that: each Trade Account Receivable
      is based on an actual and bona fide sale and delivery of Inventory or rendition
      of services to customers, made by the Companies in the ordinary course of their
      business; the Inventory being sold, and the Trade Accounts Receivable created,
      are the exclusive property of the Companies and are not and shall not be subject
      to any lien, consignment arrangement, encumbrance, security interest or
      financing statement whatsoever, other than the Permitted Encumbrances; the
      invoices evidencing such Trade Accounts Receivable are in the name of the
      Companies; and the Companies’ customers have accepted the Inventory or services,
      owe and are obligated to pay the full amounts stated in the invoices (or stated
      in the sale information maintained by the Companies as to Eligible Unbilled
      Card-Lock Customer Accounts) according to their terms, without dispute, offset,
      defense, counterclaim or contra, except for disputes and other matters arising
      in the ordinary course of business with respect to which the Companies have
      complied with the notification requirements of Paragraph 3.5
      of this
Section 3.
      The
      Companies confirm to the Agent and the Lenders that any and all Taxes or fees
      relating to their business, their sales, the Accounts or Inventory relating
      thereto, are their sole responsibility and that same will be paid by the
      Companies when due, subject to Paragraph 7.6
      of
Section 7
      hereof,
      and that none of said Taxes or fees represent a lien on or claim against the
      Accounts. The Companies hereby further represent and warrant that they shall
      not
      acquire any Inventory on a consignment basis, nor co-mingle their Inventory
      with
      any of their customers or any other Person, including pursuant to any bill
      and
      hold sale or otherwise, and that their Inventory is marketable to their
      customers in the ordinary course of business of the Companies, except as they
      may otherwise report in
      writing to the Agent pursuant to Paragraph 3.5
      of
Section
      3
      hereof
      from time to time. Each of the Companies also warrants and represents that
      they
      are duly and validly existing corporations and are qualified in all states
      where
      the failure to so qualify would have an adverse effect on their business or
      their ability to enforce collection of Accounts due from customers residing
      in
      that state. The Companies agree to maintain such books and records regarding
      Accounts and Inventory as the Agent may reasonably require and agree that the
      books and records of the Companies will reflect the Agent’s security interest,
      for the benefit of the Lenders, in the Accounts and Inventory. All of the books
      and records of the Companies will be available to the Agent at normal business
      hours, including any records handled or maintained for the Companies or any
      one
      of them by any other company or entity.

     

    
      
        
        

      

      
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    3.4  (a) Until
      the Agent, on behalf of the Lenders, has advised the Companies to the contrary
      after the occurrence and during the continuance of an Event of Default, the
      Companies, at their expense, will enforce, collect and receive all amounts
      owing
      on their respective Accounts in the ordinary course of their business and any
      proceeds they so receive shall be subject to the terms hereof, and held on
      behalf of and in trust for the Agent, for the benefit of the Lenders. Such
      privilege shall terminate at the election of the Agent, upon the occurrence
      of
      an Event of Default. Any checks, cash, credit card sales and receipts, notes
      or
      other instruments or property received by a Company with respect to any
      Collateral, including Accounts, shall be held by such Company in trust for
      the
      Agent, for the benefit of the Lenders, separate from such Company’s own or the
      Companies’ property and funds, and promptly turned over to the Agent with proper
      assignments or endorsements by deposit to Depository Accounts subject to Blocked
      Account Agreements described in Paragraph
      3.4(b)
      below.
      Each of the Companies shall: (i) indicate on all of their invoices that
      funds should be delivered to and deposited in such a Depository Account;
      (ii) direct all of their account debtors to deposit any and all proceeds of
      Collateral into such Depository Accounts; provided,
      however,
      as an
      accommodation to Companies, until
      such time as the Agent notifies Companies that this practice is no longer
      acceptable,
      customers of the Companies (to the extent such customers are specified in
      writing to the Agent) who presently initiate net ACH debits and credits may
      continue to be directed to direct these transactions through the Companies’
operating bank accounts, and the Companies hereby agree and acknowledge that
      the
      gross amount of each account payable by each such customer represents Collateral
      and proceeds of Collateral and the above-described practice of initiation of
      net
      ACH debits and credits shall in no way be deemed to limit or affect the validity
      of the Agent’s security interest in such Collateral and the proceeds of such
      Collateral; (iii) irrevocably authorize and direct any banks which maintain
      the Companies’ initial receipt of cash, checks and other items to promptly wire
      transfer all available funds to a Depository Account; and (iv) advise all
      such banks of the Agent’s security interest in such funds. The Companies shall
      provide the Agent with prior written notice of any and all deposit accounts
      opened or to be opened subsequent to the Closing Date, and promptly after the
      opening of any such account, shall cause the bank at which such deposit account
      is located to enter into a Blocked Account Agreement described in Paragraph
      3.4(b)
      below.
      All amounts received by the Agent in payment of Accounts will be credited to
      the
      Revolving Loan Account when the Agent is advised by its bank of its receipt
      of
“collected funds” at the Agent’s bank account in New York, New York on the
      Business Day of such advice if advised no later than 1:00 p.m. EST or on the
      next succeeding Business Day if so advised after 1:00 PM EST. No checks, drafts
      or other instrument received by the Agent shall constitute final payment to
      the
      Agent unless and until such instruments have actually been
      collected.

     

    
      
        
        

      

      
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    (b)  The
      Companies shall establish and maintain, in their name and at their expense,
      Depository Accounts with such banks as are acceptable to the Agent (the
“Blocked
      Accounts”)
      into
      which each of the Companies shall promptly cause to be deposited: (i) all
      proceeds of Collateral received by any of the Companies, including all amounts
      payable to the Companies from credit card issuers and credit card processors,
      and (ii) all amounts on deposit in deposit accounts used by the Companies
      at each of their locations, all as further provided in Paragraph 3.4(a)
      above.
      Unless agreed to by the Required Lenders in writing, the banks at which the
      Blocked Accounts are established shall enter into an agreement, in form and
      substance satisfactory to the Agent (the “Blocked
      Account Agreements”),
      providing that all cash, checks and items received or deposited in the Blocked
      Accounts are the property of the Agent, that the depository bank has no lien
      upon, or right of set off against, the Blocked Accounts and any cash, checks,
      items, wires or other funds from time to time on deposit therein, except as
      otherwise provided in the Blocked Account Agreements, and that automatically,
      on
      each Business Day (except as otherwise provided in the Blocked Account
      Agreements), the depository bank will wire, or otherwise transfer, in
      immediately available funds, all funds received or deposited into the Blocked
      Accounts to such bank account as the Agent may from time to time designate
      for
      such purpose. The Companies hereby confirm and agree that all amounts deposited
      in such Blocked Accounts and any other funds received and collected by the
      Agent, whether as proceeds of Inventory or other Collateral or otherwise, are
      and shall be pledged to the Agent, for the benefit of the Lenders.

     

    3.5  The
      Companies agree to notify the Agent promptly of any matters affecting the value,
      enforceability or collectibility of any Account and of all customer disputes,
      offsets, defenses, counterclaims, returns, rejections and all reclaimed or
      repossessed merchandise or goods, and of any adverse effect in the value of
      their Inventory. The Companies agree to issue credit memoranda promptly (with
      duplicates to the Agent upon request after the occurrence and during the
      continuance of an Event of Default) upon accepting returns or granting
      allowances. Upon the occurrence and during the continuance of an Event of
      Default (which is not waived in writing by the Agent or cured to Agent’s or
      Required Lenders’ satisfaction) following notice from the Agent, the Companies
      agree that all returned, reclaimed or repossessed merchandise or goods shall
      be
      set aside by the Companies, marked with the Agent’s name (as secured party) and
      held by the Companies for the Agent’s account.

     

    
      
        
        

      

      
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    3.6  (a) Subject
      to (b) below, the Agent shall maintain a Revolving Loan Account on its books
      in
      which each of the Companies will be charged with all loans and advances made
      by
      the Agent and the Lenders to such Company to it or for its account, and with
      any
      other Obligations, including any and all costs, expenses and reasonable
      attorney’s fees which the Agent and the Lenders may incur in connection with the
      exercise by or for the Agent and the Lenders of any of the rights or powers
      herein conferred upon the Agent and the Lenders, or in the prosecution or
      defense of any action or proceeding to enforce or protect any rights of the
      Agent and the Lenders in connection with this Financing Agreement, the other
      Loan Documents or the Collateral assigned hereunder, or any Obligations owing
      by
      such Company. The Companies will be credited with all amounts received by the
      Agent from the Companies or from others for the Companies’ account, including,
      as above set forth, all amounts received by the Agent in payment of Accounts,
      and such amounts will be applied to payment of the Obligations as set forth
      herein. In no event shall prior recourse to any Accounts or other security
      granted to or by the Companies be a prerequisite to the Agent’s and the Lenders’
rights to demand payment of any Obligation. Further, it is understood that
      the
      Agent and the Lenders shall have no obligation whatsoever to perform in any
      respect any of the Companies’ contracts or obligations relating to the
      Accounts.

     

    
      
        
        

      

      
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    (b)  In
      order
      to utilize the collective borrowing powers of the Companies (collectively the
      “Collective
      Borrowers”)
      in the
      most efficient and economical manner, and in order to facilitate the handling
      of
      the accounts of the Collective Borrowers on the Agent’s books, the Collective
      Borrowers have requested, and the Agent and the Lenders have agreed to handle
      accounts of the Collective Borrowers on the Agent’s books on a combined basis,
      all in accordance with the following provisions: (i) in lieu of maintaining
      separate accounts on the Agent’s books in the name of each of the Collective
      Borrowers, the Agent shall maintain one account under the name: “United Fuel
& Energy Corporation” (herein the “Collective
      Account”).
      Confirmatory assignments of Accounts will continue to be made to the Agent
      by
      each of the Collective Borrowers. Loans and advances made by the Agent and
      the
      Lenders to any of the Collective Borrowers will be charged to the Collective
      Account indicated above, along with any charges and expenses under this
      Financing Agreement. The Collective Account will be credited with all amounts
      received by the Agent from any of the Collective Borrowers or from others for
      their account including all amounts received by the Agent in payment of Accounts
      assigned to the Agent as provided in this Financing Agreement; (ii) each
      month the Agent will render to the Collective Borrowers one extract of the
      combined Collective Account, which shall be deemed to be an account stated
      as to
      each of the Collective Borrowers and which will be deemed correct and accepted
      by all of the Collective Borrowers unless the Agent receives a written statement
      of exceptions from them within thirty (30) days after such extract has been
      rendered by the Agent; it is expressly understood and agreed by each of the
      Collective Borrowers that the Agent and the Lenders shall have no obligation
      to
      account separately to any of the Collective Borrowers; (iii) requests for
      loans and advances may be made by United as agent for the Collective Borrowers
      and the Agent, on behalf of the Lenders, is hereby authorized and directed
      to
      accept, honor and rely on such instructions and requests, subject to the
      limitation and provisions set forth in this Financing Agreement. It is expressly
      understood and agreed by each of the Collective Borrowers that the Agent and
      the
      Lenders shall have no responsibility to inquire into the correctness of the
      apportionment, allocation, or disposition of (x) any loans and advances
      made to any of the Collective Borrowers or (y) any of the Agent’s and the
      Lenders’ expenses and charges relating thereto, and all loans and advances are
      made for the Collective Account; (iv) the Collective Borrowers jointly and
      severally unconditionally guarantee to the Agent and the Lenders the prompt
      payment in full of (A) all loans and advances made and to be made by the
      Agent and the Lenders to any of them under this Financing Agreement, as well
      as
      (B) all other Obligations of the Collective Borrowers to the Agent and the
      Lenders and hereby expressly confirm in all respects the Guaranties executed
      by
      each of the Collective Borrowers in the Agent’s favor as more fully set forth
      therein; (v) all Accounts assigned to the Agent by any of the Collective
      Borrowers and any other collateral security now or hereafter given to the Agent
      by any of the Collective Borrowers (be it Accounts or otherwise), shall secure
      all loans and advances made by the Agent and the Lenders to any of the
      Collective Borrowers, and shall be deemed to be pledged to the Agent, for the
      benefit of the Lenders, as security for any and all other Obligations of the
      Collective Borrowers to the Agent and the Lenders as set forth under this
      Financing Agreement, the Guaranties, or any other agreements between the Agent
      and the Lenders and any of the Collective Borrowers; (vi) it is understood
      that the handling of the accounts of the Collective Borrowers in a combined
      fashion, as more fully set forth herein, is done solely as an accommodation
      to
      the Collective Borrowers and at their request, and that the Agent and the
      Lenders shall incur no liability to the Collective Borrowers as a result hereof,
      and to induce the Agent and the Lenders to do so, and in consideration thereof,
      each of the Collective Borrowers hereby agrees to indemnify the Agent and the
      Lenders and hold the Agent and the Lenders harmless against any and all
      liability, expense, loss or claim of damage or injury, made against the Agent
      and the Lenders (or any of them) by any of the Collective Borrowers or by any
      third party whosoever, arising from or incurred solely by reason of (1) the
      method of handling the accounts of the Collective Borrowers as herein provided,
      (2) the Agent and the Lenders relying on any instructions of any of the
      Collective Borrowers, or (3) any other action taken by the Agent and the
      Lenders in accordance with this subparagraph (b)
      of
Paragraph 3.6
      of
Section 3
      hereof;
provided,
      however,
      that
      the Collective Borrowers shall have no obligation to indemnify the Agent or
      any
      Lender for such liabilities or damages to the extent attributable to the gross
      negligence or willful misconduct of the Agent or such Lender; and (vii) the
      foregoing request was made because the Collective Borrowers are engaged in
      an
      integrated operation that requires financing on a basis permitting the
      availability of credit from time to time to each of the Collective Borrowers
      as
      required for the continued successful operation of each of the Collective
      Borrowers. Each of the Collective Borrowers expects to derive benefit, directly
      or indirectly, from such availability since the successful operation of each
      of
      the Collective Borrowers is dependent on the continued successful performance
      of
      the functions of the integrated group. In addition, the Companies have informed
      the Agent and the Lenders that because all of the Collective Borrowers continue
      to be engaged in an integrated operation that requires financing on an
      integrated basis and because each Collective Borrower expects to benefit from
      the continued successful performance of such integrated operations and in order
      to best utilize the collective borrowing powers of each Collective Borrower
      in
      the most effective and cost efficient manner and to avoid adverse effects on
      the
      operating efficiencies of each Collective Borrower and the existing back-office
      practices of the Collective Borrowers, each Collective Borrower has requested
      that all Revolving Loans and advances be disbursed solely upon the request
      of
      United.

     

    
      
        
        

      

      
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    3.7  After
      the
      end of each month, the Agent shall promptly send the Companies a statement
      showing the accounting for the charges, loans, advances and other transactions
      occurring between the Agent and the Lenders and each of the Companies during
      that month. The monthly statements shall be deemed correct and binding upon
      each
      of the Companies and shall constitute an account stated between the Companies,
      on one hand, and the Agent and the Lenders, on the other hand, unless the Agent
      receives a written statement of the exceptions within thirty (30) days of the
      date of the monthly statement.

     

    3.8  In
      the
      event that any requested advance exceeds Availability or that (a) the sum
      of (i) the outstanding balance of Revolving Loans and (ii) outstanding
      balance of Letters of Credit exceeds
      (b)(x) the Borrowing Base or (y) the Revolving Line of Credit, any
      such nonconsensual Overadvance shall be due and payable to the Agent, for the
      benefit of the Lenders, immediately upon the Agent’s or the Required Lenders’
demand therefor.

     

    3.9  (a) Unless
      this Financing Agreement expressly provides otherwise, so long as no Event
      of
      Default shall have occurred and be continuing, the Agent agrees to apply
      (i) all proceeds of Trade Accounts Receivable to the Revolving Loan Account
      (first to accrued interest and then to unpaid principal), (ii) proceeds of
      rolling stock Eligible Equipment described in the definition of “Eligible
      Equipment Based Amount” to the Revolving Loan Account and the amount applied
      shall constitute a permanent reduction in the Eligible Equipment Based Amount
      to
      the extent the amount is applied to the outstanding principal amount of the
      Revolving Loans, (iii) all proceeds of all other Collateral to the last
      maturing installments of principal of the Initial Term Loan until fully repaid,
      and then to the last maturing installments of principal of the Three D Real
      Property Term Loan until fully repaid, and then to the last maturing
      installments of principal of the Acquisition Term Loans (in order of first
      to
      mature) until fully repaid, and (iv) any other payment received by the
      Agent with respect to the Obligations in such order and manner as the Agent
      shall elect in the exercise of its business judgment. To the extent the Agent
      applies proceeds of Collateral to the principal amount of the Revolving Loans,
      such proceeds shall be applied first to outstanding Revolving Loans other than
      Swingline Loans, pro rata
      according to each Lender’s Pro Rata Percentage, and then to outstanding
      Swingline Loans.

     

    (b)  Unless
      this Financing Agreement expressly provides otherwise, so long as no Event
      of
      Default shall have occurred and be continuing, the Agent agrees to apply all
      proceeds of Collateral and other payments received which are described in
Paragraph 3.9(a)
      of
Section 3.9
      to Base
      Rate Loans until there are no Base Rate Loans outstanding, and then to LIBOR
      Loans; provided
      that in
      the event the aggregate outstanding principal amount of Revolving Loans that
      are
      LIBOR Loans exceeds any applicable limit set forth herein, the Agent may apply
      all proceeds of Collateral received by the Agent to the payment of the
      Obligations in such manner and in such order as the Agent may elect in the
      exercise of its business judgment; and provided further
      that in
      no event shall the Agent have any obligation to apply (i) proceeds of Trade
      Accounts Receivable to Term Loans that are Base Rate Loans until all Revolving
      Loans are fully paid and satisfied, (ii) proceeds of rolling stock Eligible
      Equipment described in the definition of “Eligible Equipment Based Amount” to
      Term Loans that are Base Rate Loans until all Revolving Loans are fully paid
      and
      satisfied, and (iii) proceeds of other Collateral to Revolving Loans that
      are Base Rate Loans until the Term Loans are fully paid and satisfied. Subject
      to the terms of the preceding sentence, so long as no Event of Default shall
      have occurred and be continuing, if the Agent receives proceeds of Collateral
      or
      other payments that exceed the outstanding principal amount of Revolving Loans
      that are Base Rate Loans, the Companies may request, in writing, that the Agent
      not apply such excess proceeds to outstanding Revolving Loans that are LIBOR
      Loans, in which case the Agent shall remit such excess to the Companies. If
      as a
      result of the application of the provisions of this Paragraph 3.9(b),
      any
      proceeds of Collateral are applied to loans that are LIBOR Loans, such
      application shall be treated as a prepayment of such LIBOR Loans and the Lenders
      shall be entitled to the costs and fees provided for in Paragraph
      8.19
      of
Section
      8
      hereof.

     

    
      
        
        

      

      
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    (c)  If
      an
      Event of Default shall have occurred and be continuing, the Agent agrees to
      apply all proceeds of Collateral and all other payments received by the Agent
      to
      the payment of the Obligations in the manner and order set forth in Paragraph
      10.4 of
      Section
      10
      hereof.
      If as a result of the application of the provisions of this Paragraph
      3.9(c),
      any
      proceeds or payments are applied to loans that are LIBOR Loans, such application
      shall be treated as a prepayment of such LIBOR Loans and the Lenders shall
      be
      entitled to the costs and fees provided for in Paragraph
      8.19
      of
Section
      8
      hereof.

     

    3.10  Unless
      an
      Event of Default has occurred and is continuing (in which case the provisions
      of
Paragraph
      10.4
      of
Section
      10
      hereof
      shall control), the parties hereto agree that any amount paid to the Agent,
      for
      the benefit of the Lenders, pursuant to the Eligible Life Insurance Policy
      (whether as a death benefit, as cash for surrender of the policy or otherwise),
      shall be applied to the Obligations in such order as the Agent and the Required
      Lenders shall determine, in their sole discretion, and shall serve to
      permanently decrease by such amount the Eligible Cash Surrender Value of
      Eligible Life Insurance Policy.

     

    3.11  Unless
      an
      Event of Default has occurred and is continuing (in which case the provisions
      of
Paragraph
      10.4
      of
Section
      10
      hereof
      shall control), the parties hereto agree that in the event the Propane Division
      or any other division of a Company is sold or otherwise transferred or disposed
      of, the proceeds of such sale, transfer or disposition shall be applied as
      follows:

     

    (a)  first,
      to the
      payment of all costs and expenses of the Agent and its agent or agents
      (including, without limitation, the reasonable fees and expenses of legal
      counsel and other agents) incurred in connection with the collection of such
      proceeds or the protection of the rights and interests of the Agent and the
      Lenders therein;

     

    (b)  second,
      to the
      payment of the Revolving Loans (first to accrued interest thereon and then
      to
      the outstanding principal amount thereof) in an amount equal to the Borrowing
      Base availability generated by the assets being sold in connection with such
      sale, transfer or disposition;

     

    (c)  third,
      to the
      extent that the Eligible Equipment Based Amount is in excess of fifty percent
      (50%) of the net orderly liquidation value (as determined in a manner
      satisfactory to the Agent and the Lenders, in their sole discretion) of the
      rolling stock Eligible Equipment described in the definition of “Eligible
      Equipment Based Amount,” to the payment of the Revolving Loans in the amount of
      such excess as a permanent reduction in the Eligible Equipment Based Amount;
      

     

    
      
        
        

      

      
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    (d)  fourth,
      to the
      last maturing installments of principal of the Initial Term Loan until fully
      repaid, and then to the last maturing installments of principal of the
      Three D Real Property Term Loan until fully repaid, and then to the last
      maturing installments of principal of the Acquisition Term Loans (in order
      of
      first to mature) until fully repaid; and

     

    (e)  fifth,
      to the
      other Obligations in such order as shall be determined by the Agent in its
      sole
      discretion.

     

    The
      parties hereto further agree and acknowledge that the preceding provisions
      of
      this Paragraph 3.11
      of
Section 3
      shall in
      no event be deemed to constitute permission or consent by the Agent and the
      Lenders to any such sale, transfer or disposition; and the other provisions
      of
      this Financing Agreement shall control as to whether any such sale, transfer
      or
      disposition is permitted under this Financing Agreement. To the extent that
      the
      Agent applies proceeds of any such sale, transfer or disposition to the
      principal amount Revolving Loans, such proceeds shall be applied first to
      outstanding Revolving Loans other than Swingline Loans, pro rata
      according to each Lender’s Pro Rata Percentage, and then to outstanding
      Swingline Loans.

     

    3.12  Unless
      an
      Event of Default has occurred and is continuing (in which case the provisions
      of
Paragraph
      10.4
      of
Section
      10
      hereof
      shall control), the parties hereto agree that in the event any Real Estate
      or
      card-lock Equipment in which the Agent, for the benefit of the Lenders, has
      a
      lien is hereafter sold, transferred or disposed of, the net proceeds from such
      sale, transfer or disposition shall be applied as follows:

     

    (a)  first,
      to the
      payment of all costs and expenses of the Agent and its agent or agents
      (including, without limitation, the reasonable fees and expenses of legal
      counsel and other agents) incurred in connection with the collection of such
      proceeds or the protection of the rights and interests of the Agent and the
      Lenders therein;

     

    (b)  second,
      to
      accrued but unpaid interest on the Obligations;

     

    (c)  third,
      to the
      last maturing installments of principal of the Initial Term Loan until fully
      repaid and then to the last maturing installments of principal of the
      Three D Real Property Term Loan until fully paid and then to the last
      maturing installments of principal of the Acquisition Term Loans (in order
      of
      first to mature) until fully repaid;

     

    (d)  fourth,
      to the
      payment of the principal amount of Revolving Loans then outstanding;
      and

     

    (e)  fifth,
      to the
      other Obligations in such order as shall be determined by the Agent in its
      sole
      discretion.

     

    The
      application of such proceeds specified in this Paragraph 3.12
      shall be
      subject to the provisions of Paragraph 3.11
      hereof.
      The parties hereto agree and acknowledge that the preceding provisions of this
      Paragraph 3.12
      shall in
      no event be deemed to constitute permission or consent by the Agent and the
      Lenders to any such sale, transfer or disposition, and the other provisions
      of
      this Financing Agreement shall control as to whether any such sale, transfer
      or
      disposition is permitted under this Financing Agreement. To the extent that
      the
      Agent applies proceeds of any such sale, transfer or disposition to the
      principal amount Revolving Loans, such proceeds shall be applied first to
      outstanding Revolving Loans other than Swingline Loans, pro rata
      according to each Lender’s Pro Rata Percentage, and then to outstanding
      Swingline Loans.

     

    
      
        
        

      

      
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    SECTION
      4.  Term
      Loans

     

    4.1  Companies
      agree to execute and deliver to each Lender a Promissory Note to evidence the
      Pro Rata Percentage of the Initial Term Loan and each Acquisition Term Loan
      and
      the Three D Real Property Term Loan to be extended to the Companies by such
      Lender.

     

    4.2  (a) Upon
      the satisfaction of the conditions set forth in Paragraph
      2.1
      of
Section 2
      hereof,
      each of the Lenders (severally and not jointly) agrees to advance to the
      Companies such Lender’s Pro Rata Percentage of the Initial Term
      Loan.

     

    (b)  The
      principal amount of the Initial Term Loan shall be due and payable as follows:
      (i) principal installments of $69,444.44 each shall be due and payable
      monthly, commencing on May 1, 2007 and on the first day of each month
      thereafter through September 1, 2012, and (ii) the unpaid principal
      amount of the Initial Term Loan shall be due and payable on September 30, 2012.
      

     

    4.3  (a) Within
      the available and unused Acquisition Term Loan Line of Credit, upon the request
      of the Companies each of the Lenders (severally and not jointly) agrees to
      advance to the Companies such Lender’s Pro Rata Percentage of the requested
      Acquisition Term Loan. The Companies agree to use the proceeds of Acquisition
      Term Loans solely in connection with funding a transaction described in the
      definition of “Approved Acquisition Term Loan”.

     

    (b)  The
      Lenders’ commitments to advance their Pro Rata Percentages of any Acquisition
      Term Loan is subject to such requested Acquisition Term Loan being an Approved
      Acquisition Term Loan.

     

    (c)  The
      principal amount of each Acquisition Term Loan shall be due and payable in
      seventy-two (72) equal consecutive monthly installments of principal commencing
      on the first day of the second month following the month in which such
      Acquisition Term Loan is made. Each installment shall be in the amount derived
      by dividing the principal amount of such Acquisition Term Loan by seventy-two
      (72). Notwithstanding the foregoing, the unpaid principal amount of all
      Acquisition Term Loans shall be due and payable on September 30,
      2012.

     

    4.4  (a) Upon
      the satisfaction of the Three D Real Property Term Loan Conditions
      Precedent, each of the Lenders (severally and not jointly) agrees to advance
      to
      the Companies such Lender’s Pro Rata Percentage of the Three D Real
      Property Term Loan.

     

    (b)  The
      principal amount of the Three D Real Property Term Loan shall be due and
      payable as follows: (i) principal installments of $13,888.88 each shall be
      due and payable monthly, commencing on the first day of the second month
      following the month in which the Three D Real Property Term Loan is made
      and on the first day of each calendar month thereafter through September 1,
      2012, and (ii) the unpaid principal amount of the Three D Real
      Property Term Loan shall be due and payable on September 30,
      2012.

     

    
      
        
        

      

      
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    4.5  Provisions
      Regarding all Term Loans.

     

    (a)  In
      the
      event this Financing Agreement or the Revolving Line of Credit is terminated
      by
      either the Agent, the Required Lenders or the Companies for any reason
      whatsoever, all Term Loans, together with all accrued and unpaid interest
      thereon and the applicable Prepayment Premium, if any, shall be due and payable
      in full on the effective date of such termination, notwithstanding any other
      provision of this Financing Agreement or the Notes to the contrary.

     

    (b)  The
      Companies, at their option, may prepay any Term Loan at any time, in whole
      or in
      part, provided
      that on
      the date of such prepayment, there shall be due and payable (i) accrued and
      unpaid interest on the principal so prepaid to the date of such prepayment
      and
      (ii) the Prepayment Premium, if any, due with respect to such
      prepayment.

     

    (c)  In
      the
      event that the Companies have generated Surplus Cash in any fiscal year, on
      the
      date which is ninety (90) days after the end of such fiscal year, there shall
      be
      due and payable a mandatory prepayment of the Term Loans in an amount equal
      to
      twenty-five percent (25%) of the Surplus Cash for such fiscal year.

     

    (d)  Except
      as
      the Required Lenders and the Companies shall otherwise agree in a separate
      writing, each prepayment of the Term Loans (whether voluntary or mandatory)
      shall be applied to accrued but unpaid interest on the Term Loans and then
      to
      the last maturing installments of principal of the Initial Term Loan until
      fully
      repaid, and then to the last maturing installments of principal of the
      Three D Real Property Term Loan until fully repaid, and then to the last
      maturing installments of principal of the Acquisition Term Loans (in order
      of
      first loan to mature) until fully repaid.

     

    (e)  To
      the
      extent repaid, the principal amount of any Term Loan may not be reborrowed
      under
      this Section
      4.

     

    (f)  The
      Companies hereby authorize the Agent, without notice to the Companies, to charge
      the Revolving Loan Account with all payments due under this Section
      4
      as such
      amounts become due. Any amount charged to the Revolving Loan Account shall
      be
      deemed a Base Rate Loan hereunder and shall bear interest at the rate provided
      in Paragraph
      8.1
      of
Section 8
      of this
      Financing Agreement. The Companies confirm that any charges which the Agent
      may
      make to the Revolving Loan Account as provided herein will be made as an
      accommodation to the Companies and solely at the Agent’s
      discretion.

     

    SECTION
      5.  Letters
      of Credit

     

    In
      order
      to assist the Companies, or any one of them, in establishing or
      opening Letters
      of Credit with an Issuing Bank, the Companies have requested that the Lenders
      (acting through the Agent) join in the applications for such Letters of Credit,
      and/or guarantee payment or performance of such Letters of Credit and any drafts
      or acceptances thereunder through the issuance of the Letters of Credit
      Guaranty, thereby lending the Agent’s and the Lenders’ credit to the Companies,
      and the Agent and the Lenders have agreed to do so. These arrangements shall
      be
      handled by the Agent and the Lenders subject to the terms and conditions set
      forth below.

     

    
      
        
        

      

      
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    5.1  Within
      the Revolving Line of Credit and Availability, the Lenders (acting through
      the
      Agent) shall assist each of the Companies in obtaining Letter(s) of Credit
      in an
      amount not to exceed the outstanding amount of the Letter of Credit Sub-Line.
      The Agent’s and the Lenders’ assistance for amounts in excess of the limitation
      set forth herein shall at all times and in all respects be in the Required
      Lenders’ sole discretion. It is understood that the term, form and purpose of
      each Letter of Credit and all documentation in connection therewith, and any
      amendments, modifications or extensions thereof, must be mutually acceptable
      to
      the Agent, the Issuing Bank and the Companies, provided that documentary Letters
      of Credit shall not be used for the purchase of domestic Inventory or to secure
      present or future debt of domestic Inventory suppliers. Any and all outstanding
      Letters of Credit issued hereunder for any Company shall be reserved dollar
      for
      dollar from Availability as an Availability Reserve.

     

    5.2  The
      Agent, on behalf of the Lenders, shall have the right, without notice to any
      of
      the Companies, to charge a Company’s Revolving Loan Account with the amount of
      any and all indebtedness, liability or obligation of any kind incurred by the
      Agent and the Lenders under the Letters of Credit Guaranty at the earlier of
      (a) payment by the Agent and the Lenders under the Letters of Credit
      Guaranty; or (b) the occurrence of an Event of Default. Any amount charged
      to the Companies’ Revolving Loan Accounts shall be deemed a Revolving Loan
      hereunder and shall incur interest at the rate provided in Paragraph 8.1
      of
Section 8
      hereof.

     

    5.3  Each
      of
      the Companies unconditionally indemnifies the Agent and the Lenders and holds
      the Agent and the Lenders harmless from any and all loss, claim or liability
      incurred by the Agent and the Lenders (or any of them) arising from any
      transactions or occurrences relating to Letters of Credit established or opened
      for any Company’s account, the collateral relating thereto and any drafts or
      acceptances thereunder, and all Obligations thereunder, including any such
      loss
      or claim due to any errors, omissions, negligence, misconduct or action taken
      by
      any Issuing Bank, other than for any such loss, claim or liability arising
      out
      of the gross negligence or willful misconduct by the Agent under the Letters
      of
      Credit Guaranty. This indemnity shall survive termination of this Financing
      Agreement. The Companies agree that any charges incurred by the Agent and the
      Lenders (or any of them) for any of the Companies’ account by the Issuing Bank
      shall be conclusive on the Agent and the Lenders and may be charged to such
      Company’s Revolving Loan Account.

     

    5.4  The
      Agent
      and the Lenders shall not be responsible for: (a) the existence, character,
      quality, quantity, condition, packing, value or delivery of the goods purporting
      to be represented by any documents; (b) any difference or variation in the
      character, quality, quantity, condition, packing, value or delivery of the
      goods
      from that expressed in the documents; (c) the validity, sufficiency or
      genuineness of any documents or of any endorsements thereon, even if such
      documents should in fact prove to be in any or all respects invalid,
      insufficient, fraudulent or forged; (d) the time, place, manner or order in
      which shipment is made; (e) partial or incomplete shipment, or failure or
      omission to ship any or all of the goods referred to in the Letters of Credit
      or
      documents; (f) any deviation from instructions; (g) delay, default, or
      fraud by the shipper and/or anyone else in connection with the goods or the
      shipping thereof; or (h) any breach of contract between the shipper or
      vendors and the Companies.
      

     

    
      
        
        

      

      
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    5.5  The
      Companies agree that any action taken by the Agent or the Lenders, if taken
      in
      good faith, or any action taken by any Issuing Bank, under or in connection
      with
      the Letters of Credit, the Letter of Credit Guarantees, the drafts or
      acceptances, or the Collateral, shall be binding on each of the Companies and
      shall not result in any liability whatsoever of the Agent or the Lenders to
      the
      Companies, except if attributable to the gross negligence or willful misconduct
      of Lenders. In furtherance thereof, the Agent, on behalf of the Lenders, shall
      have the full right and authority to: (a) clear and resolve any questions
      of non-compliance of documents; (b) give any instructions as to acceptance
      or rejection of any documents or goods; (c) execute any and all steamship
      or airways guaranties (and applications therefore), indemnities or delivery
      orders; (d) grant any extensions of the maturity of, time of payment for,
      or time of presentation of, any drafts, acceptances, or documents; and
      (e) agree to any amendments, renewals, extensions, modifications, changes
      or cancellations of any of the terms or conditions of any of the applications,
      Letters of Credit, drafts or acceptances; all in the Agent’s name. The Issuing
      Bank shall be entitled to comply with and honor any and all such documents
      or
      instruments executed by or received solely from the Agent, all without any
      notice to or any consent from the Companies or any one of them. Notwithstanding
      any prior course of conduct or dealing with respect to the foregoing including
      amendments and non-compliance with documents and/or any Company’s instructions
      with respect thereto, the Agent may exercise its rights hereunder in its sole
      and reasonable business judgment. In addition, without the Agent’s express
      consent and endorsement in writing, the Companies agree: (a) not to execute
      any and all applications for steamship or airway guaranties, indemnities or
      delivery orders; to grant any extensions of the maturity of, time of payment
      for, or time of presentation of, any drafts, acceptances or documents; or to
      agree to any amendments, renewals, extensions, modifications, changes or
      cancellations of any of the terms or conditions of any of the applications,
      Letters of Credit, drafts or acceptances; and (b) after the occurrence and
      during the continuation of an Event of Default, not to (i) clear and
      resolve any questions of non-compliance of documents, or (ii) give any
      instructions as to acceptances or rejection of any documents or
      goods.

     

    5.6  The
      Companies agree that: (a) any necessary import, export or other licenses or
      certificates for the import or handling of the Collateral will have been
      promptly procured; (b) all foreign and domestic governmental laws and
      regulations in regard to the shipment and importation of the Collateral, or
      the
      financing thereof will have been promptly and fully complied with; and
      (c) any certificates in that regard that the Agent may at any time request
      will be promptly furnished. In connection herewith, the Companies warrant and
      represent that all shipments made under any such Letters of Credit are in
      accordance with the laws and regulations of the countries in which the shipments
      originate and terminate, and are not prohibited by any such laws and
      regulations. Each of the Companies assumes all risk, liability and
      responsibility for, and agrees to pay and discharge, all present and future
      local, state, federal or foreign Taxes, duties, or levies. Any embargo,
      restriction, laws, customs or regulations of any country, state, city, or other
      political subdivision, where the Collateral is or may be located, or wherein
      payments are to be made, or wherein drafts may be drawn, negotiated, accepted,
      or paid, shall be solely the Companies’ risk, liability and
      responsibility.

     

    5.7  Upon
      any
      payments made to the Issuing Bank under the Letter of Credit Guaranty, the
      Agent, on behalf of the Lenders, shall acquire by subrogation, any rights,
      remedies, duties or obligations granted or undertaken by the Companies or any
      one of them to the Issuing Bank in any application for Letters of Credit, any
      standing agreement relating to Letters of Credit or otherwise, all of which
      shall be deemed to have been granted to the Agent and apply in all respects
      to
      the Agent and shall be in addition to any rights, remedies, duties or
      obligations contained herein.

     

    
      
        
        

      

      
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    SECTION
      6.  Collateral

     

    6.1  As
      security for the prompt payment in full of all Obligations, each of the
      Companies hereby pledges and grants to the Agent, for the benefit of the
      Lenders, a continuing general lien upon, and security interest in, all of their
      right, title and interest in all of their property, whether now owned or
      hereafter acquired, including, without limitation, all of their:

     

    (a)  Accounts;

     

    (b)  Inventory;

     

    (c)  General
      Intangibles;

     

    (d)  Documents
      of Title;

     

    (e)  Real
      Estate;

     

    (f)  Other
      Collateral; and

     

    (g)  Equipment.

     

    The
      security interest granted in the Collateral are given in renewal, extension
      and
      modification of the security interests previously granted to Agent and CIT
      by
      Companies; such prior security interests are not extinguished hereby; and the
      ranking, perfection and priority of such prior security interests shall continue
      in full force and effect.

     

    6.2  The
      security interests granted hereunder shall extend and attach to:

     

    (a)  All
      Collateral owned by any of the Companies or in which the Companies have any
      interest, whether held by the Companies or others for their account, and, if
      any
      Collateral is Equipment, whether the Companies’ interest in such Equipment is as
      owner, finance lessee or conditional vendee;

     

    (b)  All
      Equipment, whether the same constitutes personal property or fixtures,
      including, but without limiting the generality of the foregoing, all dies,
      jigs,
      tools, benches, molds, tables, accretions, component parts thereof and additions
      thereto, as well as all accessories, motors, engines and auxiliary parts used
      in
      connection with, or attached to, the Equipment; and

     

    (c)  All
      Inventory and any portion thereof which may be returned, rejected, reclaimed
      or
      repossessed by either the Agent or the Companies from the Companies’ customers,
      as well as to all supplies, goods, incidentals, packaging materials, labels
      and
      any other items which contribute to the finished goods or products manufactured
      or processed by the Companies, or to the sale, promotion or shipment
      thereof.

     

    
      
        
        

      

      
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    6.3  The
      Companies agree to safeguard, protect and hold all Inventory for the account
      of
      the Agent and the Lenders and make no disposition thereof except in the ordinary
      course of their business of the Companies, as herein provided. The Companies
      represent and warrant that Inventory will be sold and shipped by the Companies
      to their customers only in the ordinary course of the Companies’ business, and
      then only on open account and on terms currently being extended by the Companies
      to their respective customers, provided that, absent the prior written consent
      of the Agent, the Companies shall not sell Inventory on a consignment basis
      nor
      retain any lien or security interest in any sold Inventory (though the foregoing
      shall in no event prohibit the Companies’ present business practices in selling
      propane to their residential customers). Upon the sale, exchange, or other
      disposition of Inventory, as herein provided, the security interest of the
      Agent, for the benefit of the Lenders, in the Inventory provided for herein
      shall, without break in continuity and without further formality or act,
      continue in, and attach to, all proceeds, including any instruments for the
      payment of money, Trade Accounts Receivable, documents of title, shipping
      documents, chattel paper and all other cash and non-cash proceeds of such sale,
      exchange or disposition. As to any such sale, exchange or other disposition,
      the
      Agent, on behalf of the Lenders, shall have all of the rights of an unpaid
      seller, including stoppage in transit, replevin, rescission and reclamation.
      Unless otherwise provided in the Sterling Intercreditor Agreement, the Companies
      hereby agree to immediately forward any and all proceeds of Collateral to the
      Depository Account, and to hold any such proceeds (including any notes and
      instruments), in trust for the Agent pending delivery to the Agent. Irrespective
      of the Agent’s perfection status in any and all of the General Intangibles,
      including, without limitation, any Patents, Trademarks, Copyrights or licenses
      with respect thereto, each of the Companies
      hereby irrevocably grants the Agent a royalty free license to sell, or otherwise
      dispose or transfer, in accordance with Paragraph 10.3
      of
Section 10
      hereof,
      and the applicable terms hereof, of any of the Inventory upon the occurrence
      of
      an Event of Default which has not been waived in writing by the Agent and the
      Required Lenders.

     

    6.4  The
      Companies agree at their own cost and expense to keep the Equipment in as good
      and substantial repair and condition as the same is now or at the time the
      lien
      and security interest granted herein shall attach thereto, reasonable wear
      and
      tear excepted, making any and all repairs and replacements when and where
      necessary. The Companies also agree to safeguard, protect and hold all Equipment
      in accordance with the terms hereof and subject to the Agent’s security
      interest. Absent the Required Lender’s prior written consent, any sale, exchange
      or other disposition of any Equipment shall be made by the Companies in the
      ordinary course of their business or as set forth herein. The Companies may,
      in
      the ordinary course of their business, sell, exchange or otherwise dispose
      of
      obsolete or surplus Equipment; provided,
      however,
      that:
      (a) the then value of the Equipment so disposed of in any Fiscal Year does
      not exceed $500,000 in the aggregate; and (b) the proceeds of any such
      sales or dispositions (other than the proceeds from sale or disposition of
      the
      Equipment in which Sterling has a first priority lien which shall be governed
      by
      the terms and provisions of the Sterling Term Loan Documentation), shall be
      held
      in trust by the Companies for the Agent and the Lenders and shall be immediately
      delivered to the Agent by deposit to the Depository Account, except that the
      Companies may retain and use such proceeds to purchase forthwith replacement
      Equipment which the Companies determine in their reasonable business judgment
      to
      have a collateral value at least equal to the Equipment so disposed of or sold;
      provided,
      however,
      that
      the aforesaid right shall automatically cease upon the occurrence of a Default
      or an Event of Default which is not waived in writing by the Agent and the
      Required Lenders. Upon the sale, exchange, or other disposition of the
      Equipment, as herein provided, the security interest provided for herein shall,
      without break in continuity and without further formality or act, continue
      in,
      and attach to, all proceeds, including any instruments for the payment of money,
      Accounts, documents of title, shipping documents, chattel paper and all other
      cash and non-cash proceeds of such sales, exchange or disposition. As to any
      such sale, exchange or other disposition, the Agent, on behalf of the Lenders,
      shall have all of the rights of an unpaid seller, including stoppage in transit,
      replevin, rescission and reclamation.
      

     

    
      
        
        

      

      
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    6.5  The
      rights and security interests granted to the Agent for the benefit of the
      Lenders hereunder shall continue in full force and effect, notwithstanding
      the
      termination of this Financing Agreement or the fact that the Revolving Loan
      Accounts may from time to time be temporarily in a credit position, until the
      final payment in full to the Agent and the Lenders of all Obligations and the
      termination of this Financing Agreement. Any delay, or omission by the Agent
      and
      the Lenders (or any of them) to exercise any right hereunder shall not be deemed
      a waiver thereof, or be deemed a waiver of any other right, unless such waiver
      shall be in writing and signed by the Agent and the Required Lenders. A waiver
      on any one occasion shall not be construed as a bar to, or waiver of, any right
      or remedy on any future occasion.

     

    6.6  Notwithstanding
      the Agent’s security interest in the Collateral and to the extent that the
      Obligations are now or hereafter secured by any assets or property other than
      the Collateral or by the guarantee, endorsement, assets or property of any
      other
      person, the Agent, on behalf of the Lenders, shall have the right in its sole
      discretion to determine which rights, liens, security interests or remedies
      the
      Agent shall at any time pursue,
      foreclose upon, relinquish, subordinate, modify or take any other action with
      respect to, without in any way modifying or affecting any of them, or any of
      the
      Agent’s or the Lenders’ respective rights hereunder.

     

    6.7  Any
      balances to the credit of the Companies and any other property or assets of
      the
      Companies in the possession or control of the Agent or any Lender may be held
      by
      the Agent or such Lender as security for any Obligations and applied in whole
      or
      partial satisfaction of such Obligations when due. The liens and security
      interests granted herein, and any other lien or security interest that the
      Agent
      or any Lender may have in any other assets of the Companies, shall secure
      payment and performance of all now existing and future Obligations. The Agent
      may in its discretion charge any or all of the Obligations to the Revolving
      Loan
      Account when due.

     

    6.8  Each
      of
      the Companies possess all General Intangibles and rights thereto necessary
      to
      conduct their business as conducted as of the Closing Date and the Companies
      shall maintain their rights in, and the value of, the foregoing in the ordinary
      course of their business, including, without limitation, by making timely
      payment with respect to any applicable licensed rights. The Companies shall
      deliver to the Agent, and/or shall cause the appropriate party to deliver to
      the
      Agent, from time to time such pledge or security agreements with respect to
      General Intangibles (now or hereafter acquired) of
      the
      Companies and their subsidiaries as the Agent shall require to obtain valid
      first liens thereon. In furtherance of the foregoing, the Companies shall
      provide timely notice to the Agent of any additional Patents, Trademarks,
      tradenames, service marks, Copyrights, brand names, trade names, logos and
      other
      trade designations acquired or applied for subsequent to the Closing Date and
      the Companies shall execute such documentation as the Agent may reasonably
      require to obtain and perfect its lien thereon. Each of the Companies hereby
      irrevocably grants to the Agent, for the benefit of the Lenders, a royalty-free,
      non-exclusive license in the General Intangibles, including tradenames,
      Trademarks, Copyrights, Patents, licenses, and any other proprietary and
      intellectual property rights and any and all of their right, title and interest
      in any of the foregoing, for the sole purpose, upon the occurrence of an Event
      of Default, of the right to: (i) advertise for sale and sell or transfer
      any Inventory bearing any of the General Intangibles, and (ii) make,
      assemble, prepare for sale or complete, or cause others to do so, any applicable
      raw materials or Inventory bearing any of the General Intangibles, including
      use
      of the Equipment and Real Estate for the purpose of completing the manufacture
      of unfinished goods, raw materials or work-in-process comprising Inventory,
      and
      apply the proceeds thereof to the Obligations hereunder, all as further set
      forth in this Financing Agreement and irrespective of the Agent’s lien on and
      perfection in any General Intangibles.

     

    
      
        
        

      

      
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    6.9  The
      Companies represent and warrant to the Agent and the Lenders that as of the
      date
      hereof, the Company is not the beneficiary of any letter of credit. If any
      Company becomes a beneficiary under any letter of credit, such Company agrees
      to
      promptly notify the Agent, and upon request by the Agent, such Company agrees
      to
      either (a) cause the issuer of such letter of credit to consent to the
      assignment of the proceeds of such letter of credit to the Agent, for the
      benefit of the Lenders, pursuant to an agreement in form and substance
      satisfactory to the Agent in the exercise of its credit judgment, or
      (b) cause the issuer of such letter of credit to name the Agent, for the
      benefit of the Lenders, as the transferee beneficiary of such letter of
      credit.

     

    6.10  The
      Companies represent and warrant to the Agent and the Lenders that as of the
      date
      hereof, no Company holds an interest in any commercial tort claim. If any
      Company at any time holds or acquires a commercial tort claim, such Company
      agrees to promptly notify the Agent in writing of the details thereof, and
      in
      such writing such Company shall grant to the Agent, for the benefit of the
      Lenders, a security interest in such commercial tort claim and in the proceeds
      thereof, all upon the terms of this Financing Agreement.

     

    6.11  The
      Companies agree that all chattel paper created by the Companies will be marked:
      “This chattel paper is subject to a security interest in favor of The CIT
      Group/Business Credit, Inc., as Agent for itself and other lenders. Further
      encumbrance or assignment of this chattel paper violates the rights of The
      CIT
      Group/Business Credit, Inc.
      and such
      other lenders.”

     

    SECTION
      7.  Representations,
      Warranties and Covenants

     

    7.1  The
      Companies hereby warrant and represent that: (a) the fair value of each
      Company’s Total Assets exceeds the book value of such Company’s Total
      Liabilities; (b) the Companies are generally able to pay their debts as
      they become due and payable; and (c) the Companies do not have unreasonably
      small capital to carry on their business as it is currently conducted absent
      extraordinary and unforeseen circumstances. The Companies further warrant and
      represent that: (i) Schedule 7(l)
      hereto
      correctly and completely sets forth each Company’s (A) legal name in its
      state of organization, (B) state of organization, (C) Federal Tax
      identification number, (D) chief executive office, (E) tradenames used
      by such Company in connection with the sale of inventory or providing services
      to its customers, (F) prior names used in the last five (5) years
      (including, such names of such Company’s predecessors in interest as a result of
      a merger or consolidation) and (G) the charter or similar organizational
      number for the Company in its state of organization or formation;
      (ii) except for the Permitted Encumbrances, after filing of financing
      statements in the applicable filing clerks office at the locations set forth
      in
Schedule 1,
      this
      Financing Agreement creates a valid, perfected and first priority security
      interest in the Collateral in which a security interest may be perfected by
      the
      filing of a financing statement, and the security interest granted herein
      constitutes and shall at all times constitute the first and only lien on the
      Collateral (other than Permitted Encumbrances); (iii) except for the
      Permitted Encumbrances, the Companies are, or will be, at the time additional
      Collateral is acquired by them, the absolute owner of the Collateral with full
      right to pledge, sell, consign, transfer and create a security interest therein,
      free and clear of any and all claims or liens in favor of others; (iv) the
      Companies will, at their expense, forever warrant and, at the Agent’s request,
      defend the Collateral from any and all claims and demands of any other person
      other than a holder of a Permitted Encumbrance; (v) the Companies will not
      grant, create or permit to exist, any lien upon, or security interest in, the
      Collateral, or any proceeds thereof, in favor of any other Person other than
      the
      Agent and holders of the Permitted Encumbrances; and that the Equipment does
      not
      comprise a part of any Company’s Inventory; and (vi) the Equipment is and
      will only be used by the Companies in their business and will not be held for
      sale or lease, or removed from their premises, or otherwise disposed of by
      the
      Companies except as otherwise permitted in this Financing
      Agreement.

     

    
      
        
        

      

      
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    7.2  Each
      of
      the Companies agrees to maintain books and records pertaining to the Collateral
      in accordance with GAAP and in such additional detail, form and scope as the
      Agent shall reasonably
      require. The Companies agree that the Agent (accompanied by any Lender at its
      expense) or its agents may enter upon any of the Companies’ premises at any time
      during normal business hours, and from time to time in its reasonable business
      judgment, for the purpose of inspecting the Collateral and any and all records
      pertaining thereto. Each Company irrevocably authorizes all accountants and
      third parties to disclose and deliver directly to the Agent, at the Companies’
expense, all financial statements and information, books, records, work papers,
      management reports and other information generated by them or in their
      possession regarding the Companies and/or Parent and/or the Collateral. The
      Companies agree to afford the Agent thirty (30) days prior written notice of
      any
      change in the location of any Collateral, other than to locations, that as
      of
      the Closing Date, are known to the Agent and at which the Agent has filed
      financing statements and otherwise fully perfected its liens thereon. Upon
      request by the Agent, each of the Companies agrees to provide to the Agent
      a
      current listing by customer and address as to the location of each of the
      individual propane, gasoline and diesel tanks provided to residential customers
      of such Company which are located on the premises of such residential customer.
      The Companies are also to advise the Agent promptly, in sufficient detail,
      of
      any material adverse change relating to the type, quantity or quality of the
      Collateral or on the security interest granted to the Agent
      therein.

     

    7.3  Each
      of
      the Companies agrees to: (a) execute and deliver to the Agent, from time to
      time, solely for the Agent’s convenience in maintaining a record of the
      Collateral, such written statements, and schedules as the Agent may reasonably
      require, designating, identifying or describing the Collateral; and
      (b) provide the Agent, on request, with an appraisal of the Inventory which
      appraisal shall be at the Companies’ expense and otherwise acceptable to the
      Agent; provided,
      however,
      that
      unless an Event of Default has occurred and is continuing, the Agent shall
      not
      request such an appraisal more than once during any twelve (12) calendar month
      period. Any failure, however, to promptly give the Agent such statements, or
      schedules shall not affect, diminish, modify or otherwise limit the Agent’s
      security interest in the Collateral.

     

    
      
        
        

      

      
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    7.4  Each
      of
      the Companies agrees to comply with the requirements of all state and federal
      laws in order to grant to the Agent, for the benefit of the Lenders, valid
      and
      perfected first security interests in the Collateral, subject only to the
      Permitted Encumbrances. The Agent is hereby authorized by the Companies to
      file
      (including pursuant to the applicable terms of the UCC) from time to time any
      financing statements, continuation statements or amendments thereto covering
      the
      Collateral, whether or not such Company’s signature appears thereon. The
      Companies hereby consent to and ratify any and all execution and/or filing
      of
      financing statements on or prior to the Closing Date by the Agent. The Companies
      agree to do whatever the Agent may reasonably request, from time to time, by
      way
      of: (a) filing notices of liens, financing statements, amendments, renewals
      and continuations thereof; (b) cooperating with the agents and employees of
      the Agent; (c) keeping Collateral records; (d) transferring proceeds
      of Collateral to the Agent’s possession; (e) getting the Agent’s lien noted
      on all original certificates of title relating to motor vehicles or other titled
      rolling stock part of the Collateral; and (f) performing such further acts
      as the Agent may reasonably require in order to effect the purposes of this
      Financing Agreement, including but not limited to obtaining control agreements
      with respect to deposit accounts and/or Investment Property.
      

     

    7.5  (a) Each
      of the Companies agrees to maintain insurance on the Real Estate, Equipment
      and
      Inventory under such policies of insurance, with such insurance companies,
      in
      such reasonable amounts and covering such insurable risks as are at all times
      reasonably satisfactory to the Agent. All policies covering the Real Estate
      and
      Equipment and Inventory are, subject to the rights of any holders of Permitted
      Encumbrances holding claims senior to the Agent, to be made payable to the
      Agent, in case of loss, under a standard non-contributory “mortgagee”, “lender”
or “secured party” clause and are to contain such other provisions as the Agent
      may require in its credit judgment to fully protect the Agent’s interest in the
      Real Estate and Inventory and Equipment and to any payments to be made under
      such policies. All originals of such policies or true copies thereof are to
      be
      delivered to the Agent, premium prepaid, with the loss payable endorsement
      in
      favor of the Agent for the benefit of the Lenders, and shall provide for not
      less than thirty (30) days prior written notice to
      the
      Agent of the exercise of any right of cancellation. At the Companies’ request,
      or if the Companies fail to maintain such insurance, the Agent may arrange
      for
      such insurance, but at the Companies’ expense and without any responsibility on
      the Agent’s or the Lenders’ part for: (i) obtaining the insurance;
      (ii) the solvency of the insurance companies; (iii) the adequacy of
      the coverage; or (iv) the collection of claims. Upon the occurrence of an
      Event of Default which is not waived in writing by the Agent and the Required
      Lenders, the Agent shall, subject to the rights of any holders of Permitted
      Encumbrances holding claims senior to the Agent, have the sole right, in the
      name of the Agent or the Companies, to file claims under any such insurance
      policies, to receive, receipt and give acquittance for any payments that may
      be
      payable thereunder, and to execute any and all endorsements, receipts, releases,
      assignments, reassignments or other documents that may be necessary to effect
      the collection, compromise or settlement of any claims under any such insurance
      policies.

     

    (b)  (i) In
      the event of any loss or damage by fire or other casualty, insurance proceeds
      relating to the Companies’ or a Company’s Inventory shall be applied first to
      reduce such Company’s Revolving Loans and then to repay the Term Loans in the
      manner set forth in Paragraph
      4.4(d)
      of
Section
      4
      hereof,
      and then to repay the other Obligations. Upon the occurrence and during the
      continuance of an Event of Default, the Agent may apply Insurance Proceeds
      to
      the Obligations in such manner as it may deem advisable in its sole
      discretion;

     

    
      
        
        

      

      
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    (ii)  In
      the
      event any part of the Companies’ or a Company’s Equipment is damaged by fire or
      other casualty and the Insurance proceeds for such damage or other casualty
      is
      less than or equal to $100,000.00, the Agent shall promptly apply such proceeds
      first to reduce the Companies’ outstanding balance in the Revolving Loan Account
      to the extent the proceeds are allocable to rolling stock Eligible Equipment
      described in the definition of “Eligible Equipment Based Amount” (and such
      amount shall constitute a permanent reduction in the Eligible Equipment Based
      Amount), and then to repay the Term Loans in the manner set forth in
Paragraph
      4.4(d)
      of
Section 4
      hereof,
      and then to further reduce Companies’ outstanding balance in Revolving Loan
      Amount and then to the other Obligations. Upon the occurrence and during the
      continuance of an Event of Default, the Agent may apply Insurance Proceeds
      to
      the Obligations in such manner as the Agent may deem advisable in its sole
      discretion;

     

    (iii)  Absent
      the occurrence and continuance of an Event of Default, and provided that the
      Insurance Proceeds are in excess of $100,000.00, the Companies may elect (by
      delivering written notice to the Agent) to replace, repair or restore such
      Equipment to substantially the equivalent condition prior to such fire or other
      casualty as set forth herein. If the Companies do not, or cannot, elect to
      use
      the Insurance Proceeds as set forth above, the Agent may, subject to the rights
      of any holders of Permitted Encumbrances holding claims senior to the Agent,
      apply the Insurance Proceeds to the payment of the Obligations in such manner
      and in such order as the Agent may reasonably elect; and

     

    (iv)  If
      the
      Companies elect to use the Insurance Proceeds for the repair, replacement or
      restoration of any Equipment, and there is then no Event of Default,
      (x) Insurance Proceeds for any loss are in excess of $100,000.00 on
      Equipment will be applied to the reduction of the Revolving Loans and
      (y) the Agent may set up an Availability Reserve in an amount equal to said
      Insurance Proceeds. The Availability Reserve will be reduced dollar-for-dollar
      upon receipt of non-cancelable executed purchase orders, delivery receipts
      or
      contracts for the replacement, repair or restoration of Equipment and
      disbursements in connection therewith.

     

    (c)  In
      the
      event of any loss or damage to any Real Estate leased by any Company by
      condemnation, fire or other casualty, the Companies may use the Casualty
      Proceeds in the manner required or permitted by the lease agreement relating
      thereto. In the event of any loss or damage to any Real Estate owned by any
      Company by condemnation, fire or other casualty, if the Casualty Proceeds
      relating to such condemnation, fire or other casualty are equal to or less
      than
      $100,000, the Agent agrees to apply such Casualty Proceeds to repay the
      outstanding Revolving Loans. In the event of any loss or damage to any Real
      Estate owned by any Company by condemnation, fire or other casualty, if the
      Casualty Proceeds relating to such condemnation, fire or other casualty exceed
      $100,000, and so long as the Companies have sufficient business interruption
      insurance to replace the lost profits of the facilities affected by the
      condemnation, fire or other casualty, the Companies may elect to repair or
      replace such Real Estate, subject to the following terms:

     

    
      
        
        

      

      
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    (i)  If
      the
      Companies reasonably determine that the Real Estate may be repaired to
      substantially the same condition of the Real Estate prior to the condemnation,
      fire or other casualty, the Companies may elect to repair the Real Estate by
      delivering written notice to the Agent within thirty (30) days following the
      Agent’s receipt of such Casualty Proceeds. The Agent initially shall apply all
      such Casualty Proceeds to the outstanding Revolving Loans and will establish
      an
      Availability Reserve in an amount equal to such Casualty Proceeds. The Companies
      shall provide the Agent with a repair plan, the contract(s) for repair and
      a
      total budget certified by an independent third party experienced in construction
      costing. If such budget indicates that there are insufficient Casualty Proceeds
      to cover the full cost of repair of the Real Estate, the Companies shall fund
      such deficiency before the Availability Reserve established hereunder shall
      be
      reduced. The Agent agrees to reduce this Availability Reserve dollar-for-dollar
      as and when payments are due under the contract(s) for repair. Upon completion
      of the repair of the Real Estate (as determined by the Agent in the exercise
      of
      its business judgment), the Agent will eliminate any remaining Availability
      Reserve established hereunder.

     

    (ii)  The
      Companies may elect to replace the Real Estate owned by any Company only on
      terms and conditions satisfactory to the Required Lenders in their credit
      judgment.

     

    If
      an
      Event of Default shall have occurred and remain continuing as of the date of
      the
      Agent’s receipt of any Casualty Proceeds, or if the Companies do not or cannot
      elect to use the Casualty Proceeds in the manner set forth in paragraph
      (c)
      above,
      the Agent may, subject to the rights of any holder of a Permitted Encumbrance
      having priority over the security interests of the Agent, apply the Casualty
      Proceeds to the payment of the Obligations in such manner and in such order
      as
      the Agent may elect in its sole discretion.

     

    (d)  In
      the
      event the Companies or any one of them fails to provide the Agent with timely
      evidence, reasonably acceptable to the Agent, of its maintenance of insurance
      coverage required pursuant to Paragraph 7.5(a)
      above,
      the Agent may purchase, at the Companies’ expense, insurance to protect the
      interests of the Agent and the Lenders in the Collateral. The insurance acquired
      by the Agent may, but need not, protect the Companies’ interest in the
      Collateral, and therefore such insurance may not pay claims which the Companies
      may have with respect to the Collateral or pay any claim which may be made
      against the Companies in connection with the Collateral. In the event the Agent
      purchases, obtains or acquires insurance covering all or any portion of the
      Collateral, the Companies shall be responsible for all of the applicable costs
      of such insurance, including premiums, interest (at the applicable Base Rate
      for
      Revolving Loans set forth in Paragraph 8.1
      of
Section 8
      hereof),
      fees and any other charges with respect thereto, until the effective date of
      the
      cancellation or the expiration of such insurance. The Agent may charge all
      of
      such premiums, fees, costs, interest and other charges to the Companies’
Revolving Loan Accounts. The Companies hereby acknowledge that the costs of
      the
      premiums of any insurance acquired by the Agent may exceed the costs of
      insurance which the Companies may be able to purchase on their own. In the
      event
      that the Agent purchases such insurance, the Agent will notify the Companies
      of
      said purchase within thirty (30) days of the date of such purchase. If, within
      thirty (30) days of the date of such notice, the Companies provide the Agent
      with proof that the Companies had the insurance coverage required pursuant
      to
Paragraph 7.5(a)
      above
      (in form and substance reasonably satisfactory to the Agent) as of the date
      on
      which the Agent purchased insurance and the Companies continued at all times
      to
      have such insurance, then the Agent agrees to cancel the insurance purchased
      by
      the Agent and credit the Companies’ Revolving Loan Account with the amount of
      all costs, interest and other charges associated with any insurance purchased
      by
      the Agent, including with any amounts previously charged to the Revolving Loan
      Account.

     

    
      
        
        

      

      
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    7.6  Each
      of
      the Companies agrees to pay, when due, all Taxes, including sales taxes,
      assessments, claims and other charges lawfully levied or assessed upon the
      Companies or the Collateral unless such Taxes are being diligently contested
      in
      good faith by the Companies by appropriate proceedings and adequate reserves
      are
      established in accordance with GAAP. Notwithstanding the foregoing, if any
      lien
      shall be filed or claimed thereunder (a) for Taxes due the United States of
      America, or (b) which in the Agent’s opinion might create a valid lien
      having priority over the security interest granted to the Agent herein, such
      lien shall not be deemed
      to
      be a Permitted Encumbrance hereunder and the Companies shall immediately pay
      such tax and remove the lien of record. If the Companies or any one of them
      fails to do so promptly, then at the Agent’s election, the Agent may
      (i) create an Availability Reserve in such amount as it may deem
      appropriate in its business judgment, or (ii) upon the occurrence and
      during the continuation of an Event of Default, imminent risk of seizure, filing
      of any priority lien, forfeiture, or sale of the Collateral, pay Taxes on the
      Companies’ behalf, and the amount thereof shall be an Obligation secured hereby
      and due on demand.

     

    7.7  Each
      of
      the Companies: (a) agrees to comply with all acts, rules, regulations and
      orders of any legislative, administrative or judicial body or official, which
      the failure to comply with would have a material and adverse impact on the
      Collateral, or any material part thereof, or on the business or operations
      of
      the Companies or any one of them, provided that the Companies may contest any
      acts, rules, regulations, orders and directions of such bodies or officials
      in
      any reasonable manner which will not, in the Agent’s reasonable opinion,
      materially and adversely effect the rights of the Agent or the Lenders hereunder
      or the validity or priority of the Agent’s liens on the Collateral;
      (b) agrees to comply with all environmental statutes, acts, rules,
      regulations or orders as presently existing or as adopted or amended in the
      future, applicable to the Collateral, the ownership and/or use of their real
      property and operation of their business, which the failure to comply with
      would
      have a material and adverse impact on the Collateral, or any material part
      thereof, or on the operation of the business of the Companies or any one of
      them; and (c) shall not be deemed to have breached any provision of this
Paragraph 7.7
      if
      (i) the failure to comply with the requirements of this Paragraph 7.7
      resulted
      from good faith error or innocent omission, (ii) the Companies promptly
      commence and diligently pursue a cure of such breach, and (iii) such
      failure is cured within (30) days following the Companies’ receipt of notice of
      such failure, or if such cannot in good faith be cured within thirty (30) days,
      then such breach is cured within a reasonable time frame based upon the extent
      and nature of the breach and the necessary remediation, and in conformity with
      any applicable consent order, consensual agreement and applicable
      law.

     

    7.8  Until
      termination of this Financing Agreement and payment and satisfaction of all
      Obligations due hereunder, the Companies agree that, unless the Agent and the
      Required Lenders shall have otherwise consented in writing, each of the
      Companies will furnish to the Agent: (a) within one hundred twenty (120)
      days after the end of each Fiscal Year of the Companies, an audited Consolidated
      Balance Sheet as at the close of such year, and statements of profit and loss,
      cash flow and reconciliation of surplus of Parent, the Companies and their
      subsidiaries for
      such
      year, audited by independent public accountants selected by the Companies and
      reasonably satisfactory to the Agent; (b) within sixty (60) days after the
      end of each Fiscal Quarter a Consolidated Balance Sheet as at the end of such
      period and statements of profit and loss, cash flow and surplus of Parent,
      the
      Companies and their subsidiaries, certified by an authorized financial or
      accounting officer of the Companies; (c) within thirty (30) days after the
      end of each month a Consolidated Balance Sheet as at the end of such period
      and
      statements of profit and loss, cash flow and surplus of the Companies and all
      subsidiaries for such period, certified by an authorized financial or accounting
      officer of the Companies; (d) from time to time, such further
      information regarding
      the business affairs and financial condition of the Parent, the Companies and/or
      any Subsidiaries thereof as
      the
      Agent may reasonably request, including, without limitation (i) the
      accountant’s management practice letter and (ii) annual cash flow
      projections in form reasonably satisfactory to the Agent. Each financial
      statement which the Companies are required to submit hereunder must be
      accompanied by an officer’s certificate, signed by the President, Vice
      President, Controller, or Treasurer, pursuant to which any one such officer
      must
      certify that: (x) the financial statement(s) fairly and accurately
      represent(s) each Companies’ financial condition at the end of the particular
      accounting period, as well as the Companies’ operating results during such
      accounting period, subject to year-end audit adjustments; and (y) during
      the particular accounting period: (A) there has been no Default or Event of
      Default under this Financing Agreement; provided,
      however,
      that if
      any such officer has knowledge that any such Default or Event of Default, has
      occurred during such period, the existence of and a detailed description of
      same
      shall be set forth in such officer’s certificate; (B) the Companies have
      not received any notice of cancellation with respect to their property insurance
      policies; (C) the Companies have not received any notice of an event that
      could result in a material adverse effect on the value of the Collateral taken
      as a whole; and (D) the exhibits attached to such financial statement(s)
      constitute detailed calculations showing compliance with all financial covenants
      contained in this Financing Agreement.

     

    
      
        
        

      

      
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    7.9  Until
      termination of the Financing Agreement and payment and satisfaction of all
      Obligations hereunder, each of the Companies agrees that, without the prior
      written consent of the Agent and the Required Lenders (or the prior written
      consent of just Agent in the circumstances described in the definition of
“Approved Acquisition”), except as otherwise herein provided, Parent and the
      Companies, or any one of them, will not:

     

    (a)  Mortgage,
      assign, pledge, transfer or otherwise permit any lien, charge, security
      interest, encumbrance or judgment, (whether as a result of a purchase money
      or
      title retention transaction, or other security interest, or otherwise) to exist
      on any of the Collateral or any other assets of Parent or any Company, whether
      now owned or hereafter acquired, except for the Permitted
      Encumbrances;

     

    (b)  Incur
      or
      create any Indebtedness other than the Permitted Indebtedness and other than
      Indebtedness owing to the Agent and the Lenders;

     

    (c)  Sell,
      lease, assign, transfer or otherwise dispose of Collateral or any other assets
      of Parent or any Company, except as otherwise specifically permitted by this
      Financing Agreement;

     

    
      
        
        

      

      
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    (d)  Merge,
      consolidate or otherwise alter or modify their respective corporate names,
      principal places of business, structure, or existence, re-incorporate or
      re-organize, or enter into or engage in any operation or activity materially
      different from that presently being conducted by the Companies or Parent or
      any
      one of them, except that the Companies may (A) change their corporate name
      or address, or (B) a Company may merge with and into any other Company
      (with a Company being the survivor of such merger); provided that in any such
      instance under (A) or (B) above (i) the Companies shall give the Agent
      thirty (30) days prior written notice thereof, and (ii) the Companies shall
      execute and deliver, prior to or simultaneously with any such action, any and
      all documents and agreements requested by the Agent to confirm the continuation
      and preservation of all security interests and liens granted to the Agent,
      for
      the benefit of the Lenders, hereunder;

     

    (e)  Assume,
      guarantee, endorse, or otherwise become liable upon the obligations of any
      Person, except by the endorsement of negotiable instruments for deposit or
      collection or similar transactions in the ordinary course of business and except
      for Indebtedness owing to the Agent and the Lenders;

     

    (f)  Declare
      or pay any dividend or distributions of any kind on, or purchase, acquire,
      redeem or retire, any of the Capital Stock of any Company, of any class
      whatsoever, whether now or hereafter outstanding; provided,
      however,
      each
      Company and Parent may declare and pay cash distributions or cash dividends
      to
      the holders of Preferred Stock in the ordinary course of such Person’s business
      in an aggregate amount (taking into account all distributions and dividends
      made
      by each Company and Parent) not to exceed $1,500,000.00 in any Fiscal Year,
      provided
      that no
      Default or Event of Default shall occur immediately prior to and after giving
      effect to such cash distributions or cash dividends; or

     

    (g)  Make
      any
      advance or loan to, or any investment in, any Person or purchase or acquire
      all
      or substantially all of the stock or assets of any Person; or pay any
      management, consulting or other similar fees to any Person affiliated with
      the
      Companies.

     

    7.10  Until
      termination of the Financing Agreement and payment and satisfaction in full
      of
      all Obligations hereunder, the Companies, on a consolidated basis,
      shall:

     

    (a)  Maintain
      as of the last day of each calendar month, beginning with February 28, 2007,
      for
      the twelve calendar month period ending on such day, a Fixed Charge Coverage
      Ratio for such period of not less than 1.05 to 1.00.

     

    (b)  without
      the prior written consent of the Agent and the Required Lenders, the Companies
      will not:

     

    (i)  enter
      into any Operating Lease if after giving effect thereto the aggregate
      obligations with respect to Operating Leases of the Companies during any Fiscal
      Year would exceed $3,000,000.00; or

     

    (ii)  contract
      for, purchase, make expenditures for, lease pursuant to a Capital Lease or
      otherwise incur obligations with respect to Unfinanced Capital Expenditures
      (whether subject to a security interest or otherwise) during any Fiscal Year
      in
      the aggregate amount in excess of $5,000,000.00.

     

    
      
        
        

      

      
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    7.11  Each
      of
      the Companies agrees to advise the Agent in writing of: (a) all
      expenditures (actual or anticipated) in excess of $150,000.00 from the budgeted
      amount therefor in any Fiscal Year for (x) environmental clean-up,
      (y) environmental compliance or (z) environmental testing and the
      impact of said expenses on each of the Companies’ Working Capital; and
      (b) any notices the Companies receive from any local, state or federal
      authority advising the Companies of any environmental liability (real or
      potential) stemming from any of the Companies’ operations, their premises, their
      waste disposal practices, or waste disposal sites used by any of the Companies
      and to provide the Agent with copies of all such notices if so
      required.

     

    7.12  EACH
      OF THE COMPANIES HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS THE AGENT AND
      THE
      LENDERS AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS AND
      AGENTS (EACH AN “INDEMNIFIED
      PARTY”)
      FROM, AND HOLDS EACH OF THEM HARMLESS AGAINST, ANY AND ALL LOSSES, LIABILITIES,
      OBLIGATIONS, CLAIMS, ACTIONS, DAMAGES, COSTS AND EXPENSES (INCLUDING REASONABLE
      ATTORNEY’S FEES) AND ANY PAYMENTS MADE BY THE AGENT OR THE LENDERS PURSUANT TO
      ANY INDEMNITY PROVIDED BY THE AGENT OR THE LENDERS WITH RESPECT TO OR TO WHICH
      ANY INDEMNIFIED PARTY COULD BE SUBJECT INSOFAR AS SUCH LOSSES, LIABILITIES,
      OBLIGATIONS, CLAIMS, ACTIONS, DAMAGES, COSTS, FEES OR EXPENSES WITH RESPECT
      TO
      THE LOAN DOCUMENTS, INCLUDING WITHOUT LIMITATION THOSE WHICH MAY ARISE FROM
      OR
      RELATE TO: (A) THE DEPOSITORY ACCOUNT, THE BLOCKED ACCOUNTS, THE LOCKBOX
      AND/OR ANY OTHER DEPOSITORY ACCOUNT AND/OR THE AGREEMENTS EXECUTED IN CONNECTION
      THEREWITH; AND (B) ANY AND ALL CLAIMS OR EXPENSES
      ASSERTED AGAINST THE AGENT OR THE LENDERS AS A RESULT OF ANY ENVIRONMENTAL
      POLLUTION, HAZARDOUS MATERIAL OR ENVIRONMENTAL CLEAN-UP RELATING TO THE REAL
      ESTATE; OR ANY CLAIM OR EXPENSE WHICH RESULTS FROM ANY OF THE COMPANIES’
OPERATIONS (INCLUDING, BUT NOT LIMITED TO, ANY OF THE COMPANIES’ OFF-SITE
      DISPOSAL PRACTICES) AND USE OF THE REAL ESTATE, WHICH THE AGENT OR THE LENDERS
      MAY SUSTAIN OR INCUR (OTHER THAN SOLELY AS A RESULT OF THE PHYSICAL ACTIONS
      OF
      THE AGENT OR THE LENDERS ON THE COMPANIES’ PREMISES WHICH ARE DETERMINED TO
      CONSTITUTE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT BY A COURT OF COMPETENT
      JURISDICTION), ALL WHETHER THROUGH THE ALLEGED OR ACTUAL NEGLIGENCE OF SUCH
      PERSON OR OTHERWISE, EXCEPT AND TO THE EXTENT THAT THE SAME RESULTS SOLELY
      AND
      DIRECTLY FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED
      PARTY AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION. THE COMPANIES
      HEREBY AGREE THAT THIS INDEMNITY SHALL SURVIVE TERMINATION OF THIS FINANCING
      AGREEMENT, AS WELL AS PAYMENT AND SATISFACTION OF OBLIGATIONS WHICH MAY BE
      DUE
      HEREUNDER. THE AGENT, IN ITS SOLE BUSINESS JUDGMENT, MAY ESTABLISH SUCH
      AVAILABILITY RESERVES WITH RESPECT THERETO AS IT MAY DEEM ADVISABLE UNDER THE
      CIRCUMSTANCES AND, UPON ANY TERMINATION HEREOF, HOLD SUCH RESERVES AS CASH
      RESERVES FOR ANY SUCH CONTINGENT LIABILITIES.

     

    
      
        
        

      

      
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    7.13  Without
      the prior written consent of the Agent, the Companies agree that they will
      not
      enter into any transaction, including, without limitation, any purchase, sale,
      lease, loan or exchange of property with the Parent or any subsidiary or
      affiliate of the Companies or Parent, provided that, except as otherwise set
      forth in this Financing Agreement, the Companies or any one of them may enter
      into sale, service and other transactions in the ordinary course of their
      business and pursuant to the reasonable requirements of any such Company, and
      upon standard terms and conditions and fair and reasonable terms, no less
      favorable to such Company than such Company could obtain in a comparable arms
      length transaction with an unrelated third party, provided further that no
      Default or Event of Default exists or will occur hereunder prior to and after
      giving effect to any such transaction.

     

    7.14  The
      Companies shall maintain in full force and effect the Eligible Life Insurance
      Policy.

     

    7.15  In
      order
      to induce the Agent and the Lenders to enter into this Agreement and to make
      the
      loans and advances provided for herein, the Companies make, on or as of the
      occurrence of each such loan or advance (except to the extent such
      representations or warranties relate to an earlier date or are no longer true
      and correct in all material respects solely as a result of transactions not
      prohibited by the Loan Documents), the following representations and warranties
      to the Agent and the Lenders:

     

    (a)  Organization
      and Qualification.
      Each of
      each Company and Parent (i) is duly organized validly existing and in good
      standing under the laws of the jurisdiction of its incorporation or organization
      and (ii) has the corporate power to own its property and to carry on its
      business as now conducted and (iii) is duly qualified to do business and is
      in good standing, in each case in each jurisdiction in which the failure to
      be
      so qualified or in good standing would reasonably be expected to have a material
      adverse effect.

     

    (b)  Authorization
      and Validity.
      Each of
      each Company and Parent has the corporate power and authority to execute,
      deliver and perform its obligations hereunder and under the other Loan Documents
      to which such Person is a party and all such action has been duly authorized
      by
      all necessary corporate actions on its part. The Loan Documents to which it
      is a
      party have been duly and validly executed and delivered by each Company and
      Parent and constitute valid and legally binding agreements of such Person
      enforceable in accordance with the respective terms thereof, except, in each
      case, as such enforceability may be limited by bankruptcy, insolvency,
      reorganization, moratorium, fraudulent transfer or other similar laws relating
      to or affecting the enforcement of creditors’ rights generally and general
      principles of equity.

     

    (c)  Consents.
      No
      authorization, consent, approval, license or exemption (other than such that
      exist under applicable law, that are permitted, or that have been obtained)
      of
      any person or filing or registration with any court or governmental department,
      commission, board, bureau, agency or instrumentality, domestic or foreign,
      is
      necessary for the execution, validity, delivery or performance by any Company
      or
      Parent of any Loan Document to which it is a party or for the grant of a
      security interest in or mortgage on the Collateral covered by the applicable
      Loan Documents, except such matters relating to performance as would ordinarily
      be done in the ordinary course of business after the Closing Date.

     

    
      
        
        

      

      
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    (d)  Conflicting
      or Adverse Agreements or Ratifications.
      Neither
      the delivery of the Loan Documents nor compliance with the terms and provisions
      hereof or thereof will violate the provisions of, or constitute a default under
      (i) the Articles of Incorporation or the Bylaws of any Company or Parent or
      (ii) any applicable law or any applicable regulation, order, writ,
      injunction or decree of any court or governmental instrumentality or
      (iii) any material agreement to which any Company or Parent is a party or
      by which it is bound or to which it is subject.

     

    (e)  Other
      Lending Agreements.
      As of
      the Closing Date, all agreements of any Company (other than this Financing
      Agreement and the other Loan Documents) relating to Indebtedness are described
      on Schedule 7(15)(e)
      hereto.

     

    (f)  Title
      to Assets; Licenses and Permits.
      Each
      Company has good title to all personal property and good and indefeasible title
      to or a subsisting leasehold interest in, all real property as reflected as
      of
      the Closing Date on its books and records as being owned or leased by it after
      giving effect to the transaction contemplated herein, subject to no Liens except
      Permitted Encumbrances. All of such assets are being maintained by the
      appropriate Person in good working condition in accordance with industry
      standards.

     

    (g)  Locations
      of Collateral.
      All real
      property owned and leased by any Company as of the Closing Date on which
      Collateral is or may be located is set forth in Schedule 7(15)(g)
      hereto.
      All of the Collateral is located on the owned or leased premises set forth
      in
Schedule 7(15)(g)
      hereto.
      Each Company agrees to give the Agent thirty (30) days prior written notice
      of
      (i) any real property hereafter leased or owned by such Company on which
      Collateral is or may be located, and (ii) any change in the location of any
      Collateral. To the knowledge of each Company there are no actual, threatened
      or
      alleged defaults of a material nature with respect to any leases or real
      property under which any Company or Parent is bound after giving effect to
      the
      transaction contemplated herein. After giving effect to the transactions
      contemplated herein, each of each Company and Parent is current and in good
      standing with respect to all governmental approvals, permits, certificates,
      licenses, consents and franchises necessary to continue to conduct its business
      and to own or lease and operate its properties as heretofore conducted, owned,
      leased or operated except where any such failure to obtain or maintain
      approvals, permits, certificates, licenses, consents and franchises would not
      have a material adverse effect. In addition to any of the other reporting
      requirements contained in this Agreement, Companies hereby agree upon request
      by
      the Agent to supply the Agent with a current listing of all real property owned
      or leased by any Company.

     

    (h)  Litigation.
      No
      proceedings against or affecting any Company or Parent are pending or, to the
      knowledge of any Company, threatened before any court or governmental agency
      or
      department which could reasonably be expected to have a material adverse effect,
      except as set forth in Schedule 7(15)(h).

     

    (i)  No
      Defaults.
      As of
      the Closing Date, none of any Company or Parent is in default (i) under any
      material provisions of any instrument evidencing any Indebtedness or of any
      agreement relating thereto in such manner as to cause a material adverse effect,
      or (ii) in any respect under or in violation of any order, writ, injunction
      or decree of any court or governmental instrumentality, in such manner as to
      cause a material adverse effect, or (iii) under any provision of any
      material contract to which such Person is a party, which default would
      reasonably be expected to have a material adverse effect. The Companies will
      give the Agent prompt written notice of any event or circumstance that
      constitutes such a default and, in any event, will provide Agent upon receipt
      with copies of all material notices from landlords or other property owners
      with
      respect to any business location or operation of any Company or
      Parent.

     

    
      
        
        

      

      
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    (j)  Investment
      Company Act/Public Utility Holding Company Act.
      None of
      any Company or Parent (i) is, or is directly or indirectly controlled by or
      acting on behalf of any person which is, an “investment company,” as such term
      is defined in the Investment Company Act of 1940, as amended, or (ii) is a
“holding company” or a “subsidiary company” of a “holding company” within the
      meaning of the Public Utility Holding Company Act of 1935, as
      amended.

     

    (k)  ERISA.
      (i) Each of each Company and Parent and each ERISA Affiliate have operated
      and administered each Plan and Employee Plan in compliance with all applicable
      laws except for such instances of noncompliance as have not resulted in and
      would not reasonably be expected to have a material adverse effect. Neither
      any
      Company nor Parent nor any ERISA Affiliate has incurred any liability pursuant
      to Title I or IV of ERISA or the penalty or excise tax provisions of the Code
      relating to employee benefit plans (as defined in Section 3
      of
      ERISA) which would individually or in the aggregate reasonably be expected
      to
      have a material adverse effect and no event, transaction or condition has
      occurred or exists that would reasonably be expected to result in the incurrence
      of any such liability by any Company or Parent or any ERISA Affiliate, or in
      the
      imposition of any Lien on any of the properties or assets of any Company or
      Parent or any ERISA Affiliate, in either case pursuant to Title I or IV of
      ERISA
      or to such penalty or excise tax provisions or to Section 401(a)(29) or 412
      of the Code, other than such liabilities or liens as would not individually
      or
      in the aggregate reasonably be expected to have a material adverse
      effect;

     

    (i)  No
      accumulated funding deficiency (as defined in Section 412 of the Code or
      Section 302 of ERISA), whether or not waived, exists or is expected to be
      incurred with respect to any Plan;

     

    (ii)  The
      Companies and Parent and their ERISA Affiliates have not incurred withdrawal
      liabilities (and are not subject to contingent withdrawal liabilities) under
      Section 4201 or 4204 of ERISA in respect of multiemployer plans that
      individually or in the aggregate would reasonably be expected to have a material
      adverse effect; and

     

    (iii)  The
      expected post-retirement benefit obligation (determined as of the last day
      of a
      Company’s or of Parent’s, as the case may be, most recently ended fiscal year in
      accordance with Financial Accounting Standards Board Statement No. 106, without
      regard to liabilities attributable to continuation coverage mandated by
      Section 4980B of the Code) of each Company and Parent and its Subsidiaries
      would not reasonably be expected to have a material adverse effect.

     

    
      
        
        

      

      
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    (l)  Environmental
      Matters.
      To the
      best of each Company’s knowledge, each of each Company and Parent
      (a) possesses all environmental, health and safety licenses, permits,
      authorizations, registrations, approvals and similar rights necessary under
      Environmental Laws for such Person to conduct its operations as now being
      conducted, except where failure to have such licenses, permits, authorizations,
      registrations, approvals, and similar rights would not reasonably be expected
      to
      have a material adverse effect on such entity, and (b) each of such
      licenses, permits, authorizations, registrations, approvals and similar rights
      is valid and subsisting, in full force and effect and enforceable by such
      Person, and such Person is in compliance with all terms, conditions or other
      provisions of such permits, authorizations, regulations, approvals and similar
      rights except for such failure or noncompliance that, individually or in the
      aggregate for such Person, would not reasonably be expected to have a material
      adverse effect. Except as disclosed in Schedule 7(15)(l),
      no
      Company has received any written notices of any violation or noncompliance
      with,
      or remedial obligation under, any Environmental Laws (which violation,
      non-compliance, or remedial obligation has not been cured or would not
      reasonably be expected to have a material adverse effect) and there are no
      writs, injunctions, decrees, orders or judgments outstanding under the
      Environmental Laws, or lawsuits, claims, proceedings, or, to the knowledge
      of
      any Company, investigations or inquiries pending or threatened under
      Environmental Laws, relating to the ownership, use, condition, maintenance
      or
      operation of, or conduct of business related to, any property owned, leased
      or
      operated by any Company or other assets of any Company other than those
      violations, instances of noncompliance, obligations, writs, injunctions,
      decrees, orders, judgments, lawsuits, claims, proceedings, investigations or
      inquiries that individually or in the aggregate for the Companies, would
      reasonably be expected to have a material adverse effect on such Company. Except
      as disclosed in Schedule 7(15)(l),
      there
      are no obligations, undertakings or liabilities arising out of or relating
      to
      Environmental Laws which any Company has agreed to, assumed or retained, or
      to
      the best of the Companies’ knowledge, by which any Company is adversely
      affected, by contract or otherwise, except such obligations, undertakings or
      liabilities as would reasonably be expected to have a material adverse effect
      on
      such Company. Except as disclosed in Schedule 7(15)(l),
      no
      Company has received a written notice or claim to the effect that any of them
      are or may be liable to any other person as the result of a release or
      threatened release of a Hazardous Material except such notice or claim that
      would not reasonably be expected to have a material adverse effect. Each of
      each
      Company and Parent has complied with all Environmental Laws and the requirements
      of any permits, licenses or other authorizations issued under any Environmental
      Laws.

     

    (m)  Purpose
      of Loans.
      The
      proceeds of the Revolving Loans and Term Loans will be used by the Companies
      for
      Working Capital and general corporate purposes. None of the proceeds of any
      Revolving Loans or Term Loans will be used directly or indirectly for the
      purpose of purchasing or carrying any “margin stock” within the meaning of
      Regulation U (herein called “margin stock”) or for the purpose of reducing or
      retiring any indebtedness which was originally incurred to purchase or carry
      margin stock, or for any other purpose which might constitute this transaction
      as a “purpose credit” within the meaning of Regulation U. Neither any Company
      nor any agent acting on any Company’s behalf has taken or will take any action
      which might cause this Agreement or any other Loan Document to violate, or
      involve the Agent or the Lenders in a violation of, Regulation U, Regulation
      X
      or any other regulation of the Board of Governors or to violate the Securities
      Exchange Act of 1934.

     

    
      
        
        

      

      
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    (n) Indebtedness
      and Contingent Liabilities.
      The
      Companies do not have any outstanding Indebtedness (excluding the loans and
      advances hereunder) or material contractually assumed contingent liabilities
      other than the Permitted Indebtedness and the endorsement of negotiable
      instruments in the ordinary course of business.

     

    (o) Security
      Interest in Favor of the Agent.
      This
      Financing Agreement and the other Loan Documents create a valid security
      interest in and lien on all of the Collateral described herein and therein
      in
      favor of the Agent, for the benefit of the Lenders, securing the Obligations
      and
      constitute (subject to (i) the filing of financing statements and
      (ii) delivery of any Collateral after the Closing Date as provided herein
      or any other Loan Document) and, except for the Permitted Encumbrances,
      perfected first priority liens and security interests in all of such Collateral
      described herein subject to no liens other than the Permitted
      Encumbrances.

     

    (p) Financial
      Statements.
      Prior to
      the Closing Date, the Companies furnished to the Agent the audited, consolidated
      financial statements of the Parent and the Companies as of December 31,
      2005, and the unaudited, consolidated financial statements of the Parent and
      the
      Companies as of the end of each month thereafter through January 31, 2007 (such
      financial statements, collectively, are referred to as “Financials”).
      The
      Financials have been prepared in conformity with GAAP consistently applied
      and
      present fairly, in all material respects, the consolidated financial condition
      of the Companies as of the date thereof; provided,
      however,
      Agent
      and Lenders acknowledge that the above referenced unaudited financial statements
      do not contain such notes to financial statements and year-end adjustments
      as
      would be present if such financial statements were audited. Since
      January 31, 2007, there has not occurred any event which could reasonably
      be expected to have a material adverse effect on any Company or Parent. The
      Companies have delivered to the Agent the Companies’ internally prepared
      financial projections on a consolidated basis for the 12 month period commencing
      on January 1, 2007 (the “Projections”).
      The
      Projections have been prepared in good faith and are based on what the Companies
      believe to be a reasonable assessment of the future performance of the Companies
      at the time prepared, it being recognized by the Agent and the Lenders that
      such
      Projections as they related to future events are not to be viewed as fact and
      that actual results during the period or periods covered thereby may differ
      from
      the Projections by a material amount.

     

    (q) Subsidiaries.
      Except
      as disclosed on Schedule 7(15)(q)
      hereto,
      as of the Closing Date, the Companies do not have any Subsidiaries and are
      not a
      party to any joint venture, partnership, or similar organization.

     

    (r) Intellectual
      Property.
      All
      Patents, Trademarks and Copyrights which any of the Companies or their
      Subsidiaries owns or has a license or other right to use in connection with
      manufacturing or selling its Inventory or otherwise conducting such Company’s
      business are listed on Schedule 7(15)(r)
      hereto.
      Each Company will give the Agent prompt written notice of any Patent, Trademark
      or Copyright owned, acquired or licensed hereafter by such Company or any of
      such Company’s Subsidiaries.

     

    7.16 At
      the
      request of the Agent at any time and from time to time, each Company shall,
      at
      its expense, duly execute and deliver, or cause to be duly executed and
      delivered, such further agreements, documents and instruments, and do or cause
      to be done such further acts as may be necessary or proper to evidence, perfect,
      maintain and enforce the Agent’s security interest and the priority thereof in
      the Collateral and to otherwise effectuate the provisions or purposes of this
      Agreement or any of the other Loan Documents.

     

    
      
        
        

      

      
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    7.17 The
      Companies agree, at Companies’ expense:

     

    (a) As
      soon
      as possible, but in no event later than the 30th
      day
      after the Closing Date, to deliver to Agent all the original certificates of
      title as to all titled Equipment owned by Company, together with such other
      documents, certificates and items as shall be needed from Companies in order
      for
      Agent to get a lien in favor of itself for the benefit of itself and Lenders
      notated on each certificate of title.

     

    (b) As
      soon
      as possible, but in no event later than the 45th
      day
      after the Closing Date, to deliver to Agent the title insurance policies
      committed to in the title insurance commitments described in Paragraph 2.1(p)
      of
Section 2
      of this
      Financing Agreement.

     

    (c) As
      soon
      as possible, but in no event later than the 60th
      day
      after the Closing Date, deliver to Agent, as to each parcel of Real Estate
      in
      which pursuant to the Sterling Intercreditor Agreement the lien therein of
      Sterling is to be superior to the lien therein of Agent, either commitments
      for
      mortgagee title insurance policy similar in scope, terms and provisions to
      those
      described in Paragraph
      2.1(p)
      of
Section 2
      of this
      Financing Agreement (except that Sterling has a first lien in such Real Estate)
      or, if expressly consented to by Agent, abstractor’s certificates or such other
      form of evidence as to title to and encumbrances against such Real Estate as
      shall be acceptable to Agent, in its sole discretion, with each such commitment
      or abstractor’s certificate or other form of evidence to be satisfactory to
      Agent.

     

    (d) As
      soon
      as possible, but in no event later than the 60th
      day
      after the Closing Date, deliver to Agent evidence satisfactory to Agent that
      UCC-3 terminations (or, if applicable and acceptable to Agent, UCC-3 partial
      releases) have been filed as to (i) the filing with the Texas Secretary of
      State in favor of Alon USA, LP against all assets of Eddins-Walcher Company,
      (ii) the six filings with the Oklahoma Secretary of State in favor of
      Legacy Bank as to all assets of Clark Oil Company dba Great Plains Rent-All,
      and
      (iii) the two filings with the Texas Secretary of State in favor of State
      National Bank of Big Spring as to all assets of Ackerly Oil Company,
      Inc.

     

    SECTION
      8.      Interest,
      Fees and Expenses

     

    8.1
      (a) Interest
      on the Revolving Loans shall be payable monthly on the first day of each month.
      Base Rate Loans shall accrue interest at a per annum rate equal to the lesser
      of
      (i) the Maximum Legal Rate, and (ii) the Base
      Rate
plus
      the
      Applicable Base Rate Margin for Revolving Loans on the average of the net
      balances owing by the Companies to the Agent and the Lenders in their Revolving
      Loan Accounts at the close of each day during the immediately preceding month.
      In the event of any change in said Base Rate, the rate hereunder for Base Rate
      Loans shall change, as of the date of such change, so as to remain the lesser
      of
      (i) the Maximum Legal Rate, and (ii) an amount equal to the sum of the
      Applicable Base Rate Margin plus
      the Base
      Rate. The rate hereunder for Base Rate Loans shall be calculated based on a
      360-day year. The Agent, on behalf of the Lenders, shall be entitled to charge
      each such Companies’ Revolving Loan Account at the rate provided for herein when
      due until all Obligations have been paid in full.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      any provision to the contrary contained in this Section 8,
      in the
      event that the sum of (i) the outstanding Revolving Loans and (ii) the
      outstanding Letters of Credit exceed the lesser of either (x) the maximum
      aggregate amount available under Sections 3
      and 5
      hereof
      or (y) the Revolving Line of Credit: (A) as a result of Revolving
      Loans advanced by the Agent and the Lenders at the request of the Companies
      or
      any one of them (herein “Requested
      Overadvances”),
      for
      any one (1) or more days in any month or (B) for any other reason
      whatsoever (herein “Other
      Overadvances”)
      and
      such Other Overadvances continue for five (5) or more days in any month, the
      average net balance of all Revolving Loans for such month shall bear interest
      at
      the Overadvance Rate.

     

    (c) Interest
      on the outstanding principal balance of each Term Loan shall be payable monthly
      on the first day of each month. Base Rate Loans shall accrue interest at a
      per
      annum rate equal to the lesser of (i) the Maximum Legal Rate and
      (ii) the Base Rate plus the Applicable Base Rate Margin for Term Loans. In
      the event of any change in said Base Rate, the rate hereunder for Base Rate
      Loans shall change, as of the date of such change, so as to remain the lesser
      of
      (i) the Maximum Legal Rate and (ii) an amount equal to sum of the
      Applicable Base Rate Margin plus
      the Base
      Rate. The rate hereunder for Base Rate Loans shall be calculated based on a
      360-day year. The Agent, on behalf of Lenders, shall be entitled to charge
      each
      such Companies’ Revolving Loan Account at the rate provided for herein when due
      until all Obligations have been paid in full.

     

    (d) Upon
      the
      occurrence and during the continuance of an Event of Default and the giving
      of
      any required notice by the Agent in accordance with the provisions of
Paragraph 10.2
      of
Section
      10
      hereof,
      all Obligations shall bear interest at the Default Rate of
      Interest.

     

    8.2 [Reserved.]

     

    8.3 In
      consideration of the Letter of Credit Guaranty of the Agent, the Companies
      shall
      pay the Agent, for the benefit of the Lenders, the Letter of Credit Guaranty
      Fee, which shall be an amount equal to (a) two and one-half percent (2.50%)
      on the face amount of each documentary Letter of Credit payable upon issuance
      thereof and (b) two
      and one-half percent
      (2.50%) per annum, payable monthly, on the face amount of each standby Letter
      of
      Credit less the amount of any and all amounts previously drawn under such
      standby Letter of Credit.

     

    8.4 Any
      and
      all charges, fees, commissions, costs and expenses charged to the Agent for
      the
      Companies’ account by any Issuing Bank in connection with, or arising out of,
      Letters of Credit or out of transactions relating thereto will be charged to
      the
      Revolving Loan Account in full when charged to, or paid by the Agent or the
      Lenders, or as may be due upon any termination of this Financing Agreement,
      and
      when made by any such Issuing Bank shall be conclusive on the Agent and the
      Lenders.

     

    8.5 Each
      of
      the Companies shall reimburse or pay the Agent for its own account, as the
      case
      may be, for: (a) all Out-of-Pocket Expenses and (b) any applicable
      Documentation Fee.

     

    
      
        
        

      

      
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    8.6 Upon
      the
      first Business Day of each month, commencing on April 1, 2007, the
      Companies shall pay to the Agent, for the benefit of the Lenders, the Line
      of
      Credit Fee.
      For
      purposes of calculating the amount of the Line of Credit Fee, all Swingline
      Loans shall be included and the amount of such Swingline Loans shall be deemed
      to have been advanced by CIT.

     

    8.7 [Reserved.]

     

    8.8 Companies
      shall pay to the Agent for its own account, in such amounts and at such times
      as
      are specified in the Fee Letter, the fees specified in the Fee
      Letter.

     

    8.9 The
      Companies shall pay the Agent’s standard charges and fees for the Agent’s
      personnel used by the Agent for reviewing the books and records of the Companies
      and for verifying, testing, protecting, safeguarding, preserving or disposing
      of
      all or any part of the Collateral (which fees shall be in addition to any fees
      specified in the Fee Letter and any Out-of-Pocket Expenses),
      which
      fees shall include, without limitation, the Agent’s then standard daily charge
      per employee or agent of the Agent for each day such employee or agent shall
      be
      engaged in such review, verification, testing, protection, safeguarding,
      preservation or disposition, plus travel, lodging and similar
      expenses.

     

    8.10 Each
      of
      the Companies hereby authorizes the Agent to charge their respective Revolving
      Loan Account(s) with the amount of all their Obligations due hereunder as such
      payments become due. The Companies hereby confirm and agree that they shall
      promptly pay any Obligations due hereunder to the Agent and the Lenders upon
      the
      Agent’s request therefor. Each of the Companies confirms that (a) its
      liability for any and all of the fee obligations (including without limitation,
      those set forth in Paragraph 8.3
      and
Paragraphs 8.6
      through
8.9
      above)
      and Out-of-Pocket Expenses, set forth in this Financing Agreement and in any
      of
      the other Loan Documents is joint and several, (b) the Companies, as
      between themselves, shall determine how to pro-rate any such payments due
      hereunder, and (c) for ease of administration, the Agent may charge any of
      their Revolving Loan Accounts with the amount of any such fee payments and
      any
      such charges which the
      Agent
      may so make to any of the Companies’ Revolving Loan Account(s) as herein
      provided will be made as an accommodation to the Companies and solely at the
      Agent’s discretion.

     

    8.11 In
      the
      event that any Lender shall have determined in the exercise of its reasonable
      business judgment that, subsequent to the Closing Date, any change in applicable
      law, rule, regulation or guideline regarding capital adequacy, or any change
      in
      the interpretation or administration thereof, or compliance by such Lender
      with
      any new request or directive regarding capital adequacy (whether or not having
      the force of law) of any such authority, central bank or comparable agency,
      has
      or would have the effect of reducing the rate of return on such Lender’s capital
      as a consequence of its obligations hereunder to a level below that which such
      Lender could have achieved but for such adoption, change or compliance (taking
      into consideration such Lender’s policies with respect to capital adequacy) by
      an amount reasonably deemed by such Lender to be material, then, from time
      to
      time, the Companies shall pay to such Lender no later than five (5) days
      following demand from such Lender such additional amount or amounts as will
      compensate such Lender’s for such reduction. In determining such amount or
      amounts, such Lender may use any reasonable averaging or attribution methods.
      The protection of this Paragraph 8.11
      shall be
      available to such Lender regardless of any possible contention of invalidity
      or
      inapplicability with respect to the applicable law, regulation or condition.
      A
      certificate of such Lender setting forth such amount or amounts as shall be
      necessary to compensate such Lender with respect to this Section 8
      and the
      calculation thereof when delivered to the Companies shall be conclusive on
      the
      Companies absent manifest error. Notwithstanding anything in this paragraph
      to
      the contrary, in the event such Lender has exercised its rights pursuant to
      this
      paragraph, and subsequent thereto determines that the additional amounts paid
      by
      the Companies in whole or in part exceed the amount which such Lender actually
      required to be made whole, the excess, if any, shall be returned to the
      Companies by such Lender, as applicable.

     

    
      
        
        

      

      
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    8.12 In
      the
      event that any applicable law, treaty or governmental regulation, or any change
      therein or in the interpretation or application thereof, or compliance by any
      Lender with any request or directive (whether or not having the force of law)
      from any central bank or other financial, monetary or other authority,
      shall:

     

    (a) subject
      any Lender to any tax of any kind whatsoever with respect to this Financing
      Agreement or change the basis of taxation of payments to such Lender of
      principal, fees, interest or any other amount payable hereunder or under any
      other Loan Document (except for changes in the rate of tax on the overall net
      income of such Lender by the federal government or the jurisdiction in which
      it
      maintains its principal office);

     

    (b) impose,
      modify or hold applicable any reserve, special deposit, assessment or similar
      requirement against assets held by, or deposits in or for the account of,
      advances or loans by, or other credit extended by any Lender by reason of or
      in
      respect to this Financing Agreement and the Loan Documents, including (without
      limitation) pursuant to Regulation D of the Board of Governors of the Federal
      Reserve System; or

     

    (c) impose
      on
      any Lender any other condition with respect to this Financing Agreement or
      any
      other Loan Document, and the result of any of the foregoing is to increase
      the
      cost to such Lender of making, renewing or maintaining its loans hereunder
      by an
      amount that such Lender deems to be material in the exercise of its reasonable
      business judgment or to reduce the amount of any payment (whether of principal,
      interest or otherwise) in respect of any of the loans by an amount that such
      Lender deems to be material in the exercise of its reasonable business judgment,
      then, in any case the Companies shall pay such Lender, within five (5) days
      following its demand, such additional cost or such reduction, as the case may
      be. Such Lender shall certify the amount of such additional cost or reduced
      amount to the Companies and the calculation thereof and such certification
      shall
      be conclusive upon the Companies absent manifest error. Notwithstanding anything
      in this paragraph to the contrary, in the event such Lender has exercised its
      rights pursuant to this paragraph, and subsequent thereto determine that the
      additional amounts paid by the Companies in whole or in part exceed the amount
      which such Lender actually required pursuant hereto, the excess, if any, shall
      be returned to the Companies by such Lender.

     

    8.13 The
      Companies may request LIBOR Loans on the following terms and
      conditions:

     

    (a) The
      Companies may elect from time to time (i) to request any loan made
      hereunder to be a LIBOR Loan as of the date of such loan or (ii) to convert
      Base Rate Loans to LIBOR Loans, and may elect from time to time to convert
      LIBOR
      Loans to Base Rate Loans by giving the Agent at least three (3) Business Days’
prior irrevocable notice of such election, provided
      that any
      such conversion of LIBOR Loans to Base Rate Loans shall only be made, subject
      to
      the second following sentence, on the last day of an Interest Period with
      respect thereto. Should the Companies elect to convert Base Rate Loans to LIBOR
      Loans, it shall give the Agent at least four Business Days’ prior irrevocable
      notice of such election. If the last day of an Interest Period with respect
      to a
      loan that is to be converted is not a Business Day or Working Day, then such
      conversion shall be made on the next succeeding Business Day or Working Day,
      as
      the case may be, and during the period from such last day of an Interest Period
      to such succeeding Business Day, as the case may be, such loan shall bear
      interest as if it were a Base Rate Loan. All or any part of outstanding Base
      Rate Loans outstanding may be converted to LIBOR Loans as provided herein,
      provided
      that
      partial conversions shall be in multiples in an aggregate principal amount
      of
      $500,000 or more.

     

    
      
        
        

      

      
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    (b) Any
      LIBOR
      Loans may be continued as such upon the expiration of an Interest Period,
provided
      the
      Companies so notify the Agent, at least three (3) Business Days’ prior to the
      expiration of said Interest Period, and provided
      further
      that no
      LIBOR Loan may be continued as such upon the occurrence of any Default or Event
      of Default under this Financing Agreement, but shall be automatically converted
      to a Base Rate Loan on the last day of the Interest Period during which occurred
      such Default or Event of Default. Absent such notification, LIBOR Rate Loans
      shall convert to Base Rate Loans on the last day of the applicable Interest
      Period. Each notice of election, conversion or continuation furnished by the
      Companies pursuant hereto shall specify whether such election, conversion or
      continuation is for a one, two, or three month period. Notwithstanding anything
      to the contrary contained herein, neither the Agent nor any Lender, shall be
      required to purchase United States Dollar deposits in the London interbank
      market or from any other applicable LIBOR Rate market or source or otherwise
      “match fund” to fund LIBOR Rate Loans, but any and all provisions hereof
      relating to LIBOR Rate Loans shall be deemed to apply as if the Agent and any
      Lender had purchased such deposits to fund any LIBOR Rate Loans.

     

    (c) The
      Companies may request a LIBOR Loan, convert any Base Rate Loan or continue
      any
      LIBOR Loan provided there is then no Default or Event of Default in
      effect.

     

    8.14
      (a) The
      LIBOR Loans shall bear interest for each Interest Period with respect thereto
      on
      the unpaid principal amount thereof at a rate per annum equal to the lesser
      of
      (i) the Maximum Legal Rate, or (ii) the LIBOR determined for each
      Interest Period in accordance with the terms hereof plus the Applicable LIBOR
      Margin.

     

    (b) If
      all or
      a portion of the outstanding principal amount of the LIBOR Loans shall not
      be
      paid when due (whether at the stated maturity, by acceleration or otherwise),
      such outstanding principal amount shall be converted to a Base Rate Loan at
      the
      end of the last Interest Period therefor.

     

    (c) The
      Companies may not have more than three (3) LIBOR Loans outstanding at any given
      time.

     

    
      
        
        

      

      
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    8.15
      (a) Interest
      in respect of the LIBOR Loans shall be calculated on the basis of a 360 day
      year
      and shall be payable as of the end of each month.

     

    (b) The
      Agent
      shall, at the request of the Companies, deliver to the Companies a statement
      showing the quotations given by JPMorgan Chase Bank and the computations used
      in
      determining any interest rate pursuant to Paragraph 8.14
      of
Section 8
      hereof.

     

    8.16 As
      further set forth in Paragraph 8.12
      above,
      in the event that the Agent or any Lender shall have determined in the exercise
      of its reasonable business judgment (which determination shall be conclusive
      and
      binding upon the Companies) that by reason of circumstances affecting the
      interbank LIBOR market, adequate and reasonable means do not exist for
      ascertaining LIBOR applicable for any Interest Period with respect to:
      (a) a proposed loan that the Companies have requested be made as a LIBOR
      Loan; (b) a LIBOR Loan that will result from the requested conversion of a
      Base Rate Loan into a LIBOR Loan; or (c) the continuation of LIBOR Loans
      beyond the expiration of the then current Interest Period with respect thereto,
      the Agent shall forthwith give written notice of such determination to the
      Companies at least one day prior to, as the case may be, the requested borrowing
      date for such LIBOR Loan, the conversion date of such Base Rate Loan or the
      last
      day of such Interest Period. If such notice is given (i) any requested
      LIBOR Loan shall be made as a Base Rate Loan, (ii) any Base Rate Loan that
      was to have been converted to a LIBOR Loan shall be continued as a Base Rate
      Loan, and (iii) any outstanding LIBOR Loan shall be converted, on the last
      day of then current Interest Period with respect thereto, to a Base Rate Loan.
      Until such notice has been withdrawn by the Agent, no further LIBOR Loan shall
      be made nor shall the Companies have the right to convert a Base Rate Loan
      to a
      LIBOR Loan.

     

    8.17 If
      any
      payment on a LIBOR Loan becomes due and payable on a day other than a Business
      Day or Working Day, the maturity thereof shall be extended to the next
      succeeding Business Day or Working Day unless the result of such extension
      would
      be to extend such payment into another calendar month in which event such
      payment shall be made on the immediately preceding Business Day or Working
      Day.

     

    8.18 Notwithstanding
      any other provisions herein, if any law, regulation, treaty or directive or
      any
      change therein or in the interpretation or application thereof, shall make
      it
      unlawful for any Lender to make or maintain LIBOR Loans as contemplated herein,
      the then outstanding LIBOR Loans, if any, shall be converted automatically
      to
      Base Rate Loans as of the end of such month, or within such earlier period
      as
      required by law. The Companies hereby agree promptly to pay any Lender, upon
      demand, any additional amounts necessary to compensate such Lender for any
      costs
      incurred by such Lender in making any conversion in accordance with this
Section 8
      including, but not limited to, any interest or fees payable by such Lender
      to
      lenders of funds obtained by such Lender in order to make or maintain LIBOR
      Loans hereunder.

     

    8.19 The
      Companies agree to indemnify and to hold each Lender harmless from any loss
      or
      expense which such Lender may sustain or incur as a consequence of:
      (a) Default by the Companies in payment of the principal amount of or
      interest on any LIBOR Loans, as and when the same shall be due and payable
      in
      accordance with the terms of
      this
      Financing Agreement, including, but not limited to, any such loss or expense
      arising from interest or fees payable by such Lender to lenders of funds
      obtained by such Lender in order to maintain the LIBOR Loans hereunder;
      (b) Default by the Companies in making a borrowing or conversion after the
      Companies have given a notice in accordance with Paragraph 8.13
      of
Section 8
      hereof;
      (c) any prepayment of LIBOR Loans on a day which is not the last day of the
      Interest Period applicable thereto (other than a prepayment caused by the
      Swingline Lender’s election to settle a Swingline Loan on a date that is not the
      last day of an Interest Period), including, without limitation, prepayments
      arising as a result of the application of the proceeds of Collateral to the
      Revolving Loans; and (d) Default by the Companies in making any prepayment
      after the Companies have given notice to the Agent thereof. The
      determination by any Lender of the amount of any such loss or expense, when
      set
      forth in a written notice to the Companies, containing such Lenders’
calculations thereof in reasonable detail, shall be conclusive on the Companies
      in the absence of manifest error. Calculation of all amounts payable under
      this
      paragraph with regard to LIBOR Loans shall be made as though such Lender had
      actually funded the LIBOR Loans through the purchase of deposits in the relevant
      market and currency, as the case may be, bearing interest at the rate applicable
      to such LIBOR Loans in an amount equal to the amount of the LIBOR Loans and
      having a maturity comparable to the relevant interest period; provided,
      however,
      that
      each Lender may fund each of the LIBOR Loans in any manner such Lender sees
      fit
      and the foregoing assumption shall be used only for calculation of amounts
      payable under this paragraph. In addition, notwithstanding anything to the
      contrary contained herein, the Agent shall apply all proceeds of Collateral
      and
      all other amounts received by it from or on behalf of the Companies
      (i) initially to the Base Rate Loans and (ii) subsequently to LIBOR
      Loans; provided,
      however,
      (x) upon the occurrence of an Event of Default or (y) in the event the
      aggregate amount of outstanding LIBOR Rate Loans exceeds Availability or the
      applicable maximum levels set forth therefor, the Agent may apply all such
      amounts received by it to the payment of Obligations in such manner and in
      such
      order as the Agent may elect in its reasonable business judgment. In the event
      that any such amounts are applied to Revolving Loans which are LIBOR Loans,
      such
      application shall be treated as a prepayment of such loans and each Lender
      shall
      be entitled to indemnification hereunder. This covenant shall survive
      termination of this Financing Agreement and payment of the outstanding
      Obligations.

     

    
      
        
        

      

      
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    8.20 Notwithstanding
      anything to the contrary in this Agreement, in the event that, by reason of
      any
      Regulatory Change (for purposes hereof “Regulatory
      Change”
shall
      mean, with respect to any Lender, any change after the date of this Financing
      Agreement in United States federal, state or foreign law or regulations
      (including, without limitation, Regulation D) or the adoption or making after
      such date of any interpretation, directive or request applying to a class of
      banks including any Lender of or under any United States federal, state or
      foreign law or regulations (whether or not having the force of law and whether
      or not failure to comply therewith would be unlawful), such Lender either
      (a) incurs any material additional costs based on or measured by the excess
      above a specified level of the amount of a category of deposits or other
      liabilities of such bank which includes deposits by reference to which the
      interest rate on LIBOR Loans is determined as provided in this Financing
      Agreement or a category of extensions of credit or other assets of such Lender
      which includes LIBOR Loans, or (b) becomes subject to any material
      restrictions on the amount of such a category of liabilities or assets which
      it
      may hold, then, if such Lender so elects by notice to the Companies, the
      obligation of such
      Lender to make or continue, or to convert Base Rate Loans into LIBOR Loans
      hereunder shall be suspended until such Regulatory Change ceases to be in
      effect.
      

     

    
      
        
        

      

      
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    8.21 For
      purposes of this Financing Agreement and Section 8
      hereof,
      any reference to the Agent and any Lender shall include any financial
      institution which may become a new Lender or participant of any Lender
      subsequent to the Closing Date.

     

    8.22 In
      no
      event shall the rates of interest hereunder exceed the Maximum Legal Rate.
      In
      the event that any of the contract rates computed pursuant to Section
      8
      hereof
      would exceed the Maximum Legal Rate, the rate of interest under this Financing
      Agreement for any such period shall be limited to the Maximum Legal Rate, but
      any subsequent reductions in the applicable contract rate shall not reduce
      the
      rates of interest under this Financing Agreement below the Maximum Legal Rate
      until the total amount of interest charged hereunder equals the amount of
      interest that would have been charged had the applicable contract rate been
      charged at all times.

     

    SECTION
      9.      Powers

     

    Each
      Company hereby constitutes the Agent, or any person or agent the Agent may
      designate, as its attorney-in-fact, at each Companies’ cost and expense, to
      exercise all of the following powers, which being coupled with an interest,
      shall be irrevocable until all Obligations to the Agent and the Lenders have
      been paid in full:

     

    (a) To
      receive, take, endorse, sign, assign and deliver, all in the name of the Agent
      or the Companies or any one of them, any and all checks, notes, drafts, and
      other documents or instruments relating to the Collateral;

     

    (b) To
      receive, open and dispose of all mail addressed to the Companies or any one
      of
      them and to notify postal authorities to change the address for delivery thereof
      to such address as the Agent may designate;

     

    (c) To
      request from customers indebted on Accounts at any time, in the name of the
      Agent information concerning the amounts owing on the Accounts;

     

    (d) To
      request from customers indebted on Accounts at any time, in the name of the
      Companies or any one of them, in the name of certified public accountant
      designated by the Agent or in the name of the Agent’s designee, information
      concerning the amounts owing on the Accounts;

     

    (e) To
      transmit to customers indebted on Accounts notice of the Agent’s interest
      therein and to notify customers indebted on Accounts to make payment directly
      to
      the Agent for the Companies’ account; and

     

    (f) To
      take
      or bring, in the name of the Agent, the Lenders, or the Companies or any one
      of
      them, all steps, actions, suits or proceedings deemed by the Agent necessary
      or
      desirable to enforce or effect collection of the Accounts.

     

    Notwithstanding
      anything hereinabove contained to the contrary, the powers set forth in (b),
      (c), (e) and (f) above may only be exercised after the occurrence of an Event
      of
      Default and until such time as such Event of Default is waived in writing by
      the
      Agent and the Required Lenders.

     

    
      
        
        

      

      
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    SECTION
      10.    Events
      of Default and Remedies

     

    10.1 Notwithstanding
      anything hereinabove to the contrary, the Agent may, and upon the request of
      the
      Required Lenders shall, terminate this Financing Agreement immediately upon
      the
      occurrence of any of the following (each of which is herein referred to as
      an
“Event
      of Default”):

     

    (a) cessation
      of the business of any Company or any Guarantor, or the calling of a meeting
      of
      the creditors of any Company or any Guarantor for purposes of compromising
      the
      debts and obligations of such Company or such Guarantor;

     

    (b) the
      failure of any Company or any Guarantor to generally meet its debts as they
      mature;

     

    (c) (i) the
      commencement by any Company or any Guarantor of any bankruptcy, insolvency,
      arrangement, reorganization, receivership or similar proceedings under any
      federal or state law; (ii) the commencement against any Company or any
      Guarantor of any bankruptcy, insolvency, arrangement, reorganization,
      receivership or similar proceeding under any federal or state law by creditors
      of such Company or such Guarantor, provided that such commencement of such
      proceeding shall not be deemed an Event of Default if such proceeding is
      controverted within ten (10) days and dismissed and vacated within thirty (30)
      days of commencement, except in the event that any of the actions sought in
      any
      such proceeding shall occur or any Company or any Guarantor shall take action
      to
      authorize or effect any of the actions in any such proceeding; or (iii) the
      commencement (x) by any Company’s subsidiaries, or any one of them, of any
      bankruptcy, insolvency, arrangement, reorganization, receivership or similar
      proceeding under any applicable state law, or (y) against any Company’s
      subsidiaries, or any one of them, of any involuntary bankruptcy, insolvency,
      arrangement, reorganization, receivership or similar proceeding under applicable
      law, provided that such commencement of proceeding shall not be deemed an Event
      of Default if such proceeding is controverted within ten (10) days and dismissed
      or vacated within thirty (30) days of commencement, except in the event that
      any
      of the actions sought in any such proceeding shall occur or any Company’s
      subsidiaries, shall take action to authorize or effect any of the actions in
      any
      such proceeding;

     

    (d) breach
      by
      any Company of any warranty, representation or covenant contained herein (other
      than those referred to in subparagraph (e)
      below),
      provided that such Default by any Company of any of the warranties,
      representations or covenants referred in this clause (d)
      shall
      not be deemed to be an Event of Default unless and until such Default shall
      remain unremedied to the Required Lender’s satisfaction for a period of ten (10)
      Business Days from the date of such breach;

     

    (e) breach
      by
      any Company of any warranty, representation or covenant of Paragraphs 3.3
      (other
      than the fourth sentence of Paragraph 3.3)
      and
3.4
      of
Section 3
      hereof;
Paragraphs 6.3
      and
6.4
      (other
      than the first sentence of Paragraph 6.4)
      of
Section 6
      hereof;
Paragraphs 7.1,
      7.4,
      7.5,
      7.6,
      and
7.8
      through
7.16
      of
Section
      7
      hereof;

     

    (f) failure
      of the Companies, or any one of them, to pay any of the Obligations within
      five
      (5) Business Days of the due date thereof, provided that nothing contained
      herein shall prohibit the Agent from charging such amounts to the Revolving
      Loan
      Account on the due date thereof;

     

    
      
        
        

      

      
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    (g) any
      Company or any Guarantor shall (i) engage in any “prohibited transaction”
as defined in ERISA, (ii) have any “accumulated funding deficiency” as
      defined in ERISA, (iii) have any “reportable event” as defined in ERISA,
      (iv) terminate any “plan”, as defined in ERISA or (v) be engaged in
      any proceeding in which the Pension Benefit Guaranty Corporation shall seek
      appointment, or is appointed, as trustee or administrator of any “plan”, as
      defined in ERISA, and with respect to this subparagraph (h)
      such
      event or condition (x) remains uncured for a period of thirty (30) days
      from date of occurrence and (y) could, in the reasonable opinion of the
      Agent, subject any Company or any Guarantor to any tax, penalty or other
      liability material to the business, operations or financial condition of any
      such Company or such Guarantor;

     

    (h) without
      the prior written consent of the Agent and the Required Lenders and, except
      as
      permitted in the Subordination Agreement or the Sterling Intercreditor
      Agreement, as the case may be, the Companies or any one of them shall
      (x) amend or modify the Subordinated Debt, or (y) make any payment on
      account of the Subordinated Debt or (z) amend or modify the Sterling Term
      Loan Documentation; 

     

    (i) the
      occurrence of any event of default (after giving effect to any applicable grace
      or cure periods), (x) under any of the Sterling Term Loan Documentation, or
      (y) under any instrument or agreement evidencing (A) Subordinated Debt
      or (B) any other Indebtedness of the Companies or any one of them having a
      principal amount in excess of $250,000;

     

    (j) any
      Guarantor terminates its respective Guaranty or otherwise fails to perform
      any
      of the terms of its respective Guaranty, all prior to termination of this
      Financing Agreement and payment in full of all Obligations;

     

    (k) any
      judgment or judgments aggregating in excess of $250,000.00, is obtained against
      any Company or any Guarantor and remains unstayed, unvacated and unsatisfied
      for
      more than ten (10) Business Days;

     

    (l) the
      occurrence of any other default or event of default under any other Loan
      Document or in any other written agreement between any Company and/or any
      Guarantor and the Agent;

     

    (m) without
      the prior written consent of the Agent and the Required Lenders, make any
      payment on account of the Sterling Term Loan if such payment is prohibited
      by
      the provisions of the Sterling Intercreditor Agreement; or

     

    (n) unless
      consented to in writing by the Agent and the Required Lenders, any of the stock
      of either of the Companies held (directly or indirectly) by Parent is
      transferred.

     

    
      
         

      

      
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    10.2 Upon
      the
      occurrence of a Default and/or an Event of Default, at the option of the Agent
      or the Required Lenders, all loans, advances and extensions of credit provided
      for in Sections 3,
      4 and 5
      hereof
      shall be thereafter in the Agent’s and the Lenders’ discretion and the
      obligation of the Agent and the Lenders to make Revolving Loans and Acquisition
      Term Loans, open Letters of Credit and provide Letters of Credit Guaranties,
      shall cease unless such Default is cured to the Agent’s and the Required
      Lenders’ satisfaction or such Event of Default is waived in writing by the Agent
      and the Required Lenders, and at the option of the Agent or the Required Lenders
      upon the occurrence of an Event of Default: (a) all Obligations shall
      become immediately due and payable; (b) the Agent and the Lenders may
      charge the Companies the Default Rate of Interest on all then outstanding or
      thereafter incurred Obligations in lieu of the interest provided for in
Section 8
      hereof,
      provided that, with respect to this clause ”(b)”
      the
      Agent has given the Companies written notice of the Event of Default;
provided,
      however,
      that no
      notice is required if the Event of Default is the Event of Default listed in
      Paragraph 10.1(c)
      of
      this Section 10;
      and
further provided,
      however,
      the
      Default Rate of Interest shall cease to be charged if the Event of Default
      is no
      longer continuing; (c) the Agent or the Required Lenders may immediately
      terminate this Financing Agreement upon notice to the Companies; provided,
      however,
      that
      upon the occurrence of an Event of Default listed in Paragraph 10.1(c)
      of this
Section 10,
      this
      Financing Agreement shall automatically terminate and all Obligations shall
      become due and payable, without any action, declaration, notice or demand by
      the
      Agent or the Lenders; (d) the Agent may surrender for cash the Eligible
      Life Insurance Policy; and (e) the Agent may apply any portion or all of
      the Eligible Cash Collateral to the Obligations and the portions so applied
      will
      thereafter not constitute “Eligible Cash Collateral” for purposes of the
      definition of “Borrowing Base” under this Financing Agreement. The
      exercise of any option is not exclusive of any other option, which may be
      exercised at any time by the Agent and/or the Required Lenders.
      Notwithstanding the foregoing, (i) the Agent and the Required Lenders have
      the right to determine, in their discretion, that the occurrence of any of
      the
      events described in Section
      10.1
      herein
      shall not otherwise constitute an Event of Default under this Agreement;
provided,
      however,
      the
      Agent and the Required Lenders shall have no obligation or duty of any kind
      or
      type to make such a determination, any such determination to be in the
      discretion of the Agent and the Required Lenders, and any such determination
      by
      the Agent and the Required Lenders must be in writing, and (ii) the Agent
      and the Required Lenders have the right at any time and from time to time to
      waive any Event of Default.

     

    
      
        
        

      

      
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    10.3 Immediately
      upon the occurrence of any Event of Default, the Agent may, at its option,
      and
      the Agent shall, upon the request of the Required Lenders, to the extent
      permitted by law: (a) remove
      from any premises where same may be located any and all books and records,
      computers, electronic media and software programs associated with any Collateral
      (including any electronic records, contracts and signatures pertaining thereto),
      documents, instruments, files and records, and any receptacles or cabinets
      containing same, relating to the Accounts, or the Agent may use, at the
      Companies’ expense, such of the Companies’ personnel, supplies or space at the
      Companies’ places of business or otherwise, as may be necessary to properly
      administer and control the Accounts or the handling of collections and
      realizations thereon; (b) bring
      suit, in the name of the Companies or the Lenders, or the Agent on behalf of
      the
      Lenders, and generally shall have all other rights respecting said Accounts,
      including without limitation the right to: accelerate or extend the time of
      payment, settle, compromise, release in whole or in part any amounts owing
      on
      any Accounts and issue credits in the name of the Companies or the Agent, on
      behalf of the Lenders; (c) sell,
      assign and deliver the Collateral and any returned, reclaimed or repossessed
      Inventory, with or without advertisement, at public or private sale, for cash,
      on credit or otherwise, at the Agent’s sole option and discretion, and the
      Agent, on behalf of the Lenders, may bid or become a purchaser at any such
      sale,
      free from any right of redemption, which right is hereby expressly waived by
      the
      Companies; (d) foreclose
      the security interest in the Collateral created herein or by the Loan Documents
      by any available judicial procedure, or to take possession of any or all of
      the
      Collateral, including any Real Estate, Inventory, Equipment and/or Other
      Collateral without judicial process, and to enter any premises where any
      Inventory and Equipment and/or Other Collateral may be located for the purpose
      of taking possession of or removing the same, and (e) exercise
      any other rights and remedies provided in law, in equity, by contract or
      otherwise. The Agent shall have the right, without notice or advertisement,
      to
      sell, lease, or otherwise dispose of all or any part of the Collateral, whether
      in its then condition or after further preparation or processing, in the name
      of
      the Companies or the Agent, on behalf of the Lenders, or in the name of such
      other party as the Agent may designate, either at public or private sale or
      at
      any broker’s board, in lots or in bulk, for cash or for credit, with or without
      warranties or representations (including but not limited to warranties of title,
      possession, quiet enjoyment and the like), and upon such other terms and
      conditions as the Agent in its sole discretion may deem advisable, and (if
      requested to by the Required Lenders) the Agent shall have the right to purchase
      at any such sale on behalf of the Lenders. If any Inventory and Equipment shall
      require rebuilding, repairing, maintenance or preparation, the Agent shall
      have
      the right, at its option, to do such of the aforesaid as is necessary, for
      the
      purpose of putting the Inventory and Equipment in such saleable form as the
      Agent shall deem appropriate and any such costs shall be deemed an Obligation
      hereunder. Any action taken by the Agent pursuant to this paragraph shall not
      effect commercial reasonableness of the sale. The Companies agree, at the
      request of the Agent, to assemble the Inventory and Equipment and to make it
      available to the Agent at premises of the Companies or elsewhere and to make
      available to the Agent the premises and facilities of the Companies for the
      purpose of the Agent’s taking possession of, removing or putting the Inventory
      and Equipment in saleable form. If notice of intended disposition of any
      Collateral is required by law, it is agreed that ten (10) days notice shall
      constitute reasonable notification and full compliance with the law. The net
      cash proceeds resulting from the Agent’s exercise of any of the foregoing
      rights, (after deducting all charges, costs and expenses, including reasonable
      attorneys’ fees) shall be applied by the Agent to the payment of the Obligations
      as set forth below in Paragraph
      10.4
      of
Section 10,
      whether
      due or to become due, in such order as the Agent may elect, and the Companies
      shall remain liable to the Agent and the Lenders for any deficiency, and the
      Agent in turn agrees to remit to the Companies or their successors or assigns,
      any surplus resulting therefrom; provided,
      however,
      that if
      there exist at such time unpaid liabilities owed by any Company to a Lender
      and
      secured by a security interest or lien described in clause
      (k)
      of the
      definition of “Permitted
      Encumbrances”,
      the
      Companies irrevocably authorize the Agent to remit to such Lender the amount
      of
      any surplus necessary to satisfy such liabilities. The enumeration of the
      foregoing rights is not intended to be exhaustive and the exercise of any right
      shall not preclude the exercise of any other rights, all of which shall be
      cumulative. EACH
      COMPANY HEREBY INDEMNIFIES THE AGENT AND THE LENDERS AND HOLDS THE AGENT AND
      THE
      LENDERS HARMLESS FROM ANY AND ALL COSTS, EXPENSES, CLAIMS, LIABILITIES,
      OUT-OF-POCKET EXPENSES OR OTHERWISE, INCURRED OR IMPOSED ON THE AGENT AND THE
      LENDERS BY REASON OF THE EXERCISE OF ANY OF THEIR RIGHTS, REMEDIES AND INTERESTS
      HEREUNDER, INCLUDING, WITHOUT LIMITATION, FROM ANY SALE OR TRANSFER OF
      COLLATERAL, PRESERVING, MAINTAINING OR SECURING THE COLLATERAL, DEFENDING THEIR
      INTERESTS IN COLLATERAL (INCLUDING PURSUANT TO ANY CLAIMS BROUGHT BY THE
      COMPANIES, THE COMPANIES AS DEBTOR-IN-POSSESSION, ANY SECURED OR UNSECURED
      CREDITORS OF THE COMPANIES, ANY TRUSTEE OR RECEIVER IN BANKRUPTCY, OR
      OTHERWISE), AND EACH COMPANY HEREBY AGREES TO SO INDEMNIFY AND HOLD THE AGENT
      AND THE LENDERS HARMLESS, ABSENT THE AGENT’S OR THE LENDERS’ GROSS NEGLIGENCE OR
      WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION.
      The
      foregoing indemnification shall survive termination of this Financing Agreement
      until such time as all Obligations (including the foregoing) have been finally
      and indefeasibly paid in full. In furtherance thereof the Agent may establish
      such reserves for Obligations hereunder (including any contingent Obligations)
      as it may deem advisable in its reasonable business judgment. Any applicable
      mortgage(s), deed(s) of trust or assignment(s) issued to the Agent for the
      benefit of the Lenders on the Real Estate shall govern the rights and remedies
      of the Agent and the Lenders thereto.

     

    
      
        
        

      

      
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    10.4 The
      Agent
      agrees to apply the net cash proceeds resulting from the Agent’s exercise of any
      of the foregoing rights (after deducting all Out-of-Pocket Expenses relating
      thereto) to the payment of the Obligations in the following:

     

    (a) first,
      to
      all unpaid Out-of-Pocket Expenses;

     

    (b) second,
      to all accrued and unpaid fees owed to Agent (other than in connection with
      Banking Services Obligations or Swap Obligations) for its separate account,
      after giving effect to any letter agreements between Agent and individual
      Lenders;

     

    (c) third,
      on
      a ratable basis to all accrued and unpaid fees owed to any or all of the Lenders
      (other than in connection with Banking Services Obligations or Swap Obligations)
      after giving effect to any letter agreements between Agent and individual
      Lenders;

     

    (d) fourth,
      to accrued and unpaid interest on advances made to Agent pursuant to
Paragraph 14.10
      of
Section 14
      of this
      Financing Agreement;

     

    (e) fifth,
      to
      unpaid principal amount of advances made by Agent pursuant to Paragraph 14.10
      of
Section 14
      of this
      Financing Agreement;

     

    (f) sixth,
      on
      a ratable basis, to all accrued and unpaid interest on the Revolving Loans
      (including Swingline Loans) and Term Loans;

     

    (g) seventh,
      on a ratable basis, to unpaid principal amount of all Revolving Loans (including
      Swingline Loans) and unpaid reimbursement obligations with respect to any Letter
      of Credit Guaranty and to unpaid principal amount of Term Loans (Agent to
      determine, in its sole discretion, the order of application of payment as to
      the
      Obligations described in this subparagraph (g));

     

    (h) eighth,
      to pay Agent an amount equal to one hundred ten percent (110%) of the then
      undrawn amount of each Letter of Credit, to be held by Agent as cash collateral
      for such Obligations; 

     

    (i) ninth,
      on
      a ratable basis, to payment of any amounts owing with respect to Banking
      Services Obligations and Swap Obligations; and

     

    
      
        
        

      

      
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    (j) tenth,
      on
      a ratable basis, to all other Obligations.

     

    SECTION
      11.    Termination

     

    11.1 Except
      as
      otherwise permitted herein, this Financing Agreement shall terminate on the
      initial Anniversary Date (i.e.,
      September 30, 2012). Notwithstanding the foregoing or any other provision of
      this Financing Agreement, the Lenders (acting through the Agent) may terminate
      the Financing Agreement immediately upon the occurrence of an Event of Default;
      provided,
      however,
      that if
      the Event of Default is an event listed in Paragraph
      10.1(c)
      of
Section 10
      hereof,
      this Financing Agreement shall terminate in accordance with Paragraph
      10.2
      of
Section 10.
      The
      Companies or any one of them may terminate this Financing Agreement at any
      time
      upon sixty (60) days’ prior written notice to the Agent. The Companies shall pay
      to the Agent, for the benefit of the Lenders, on the Termination Date the
      relevant Termination Fee and Prepayment Premium. Notice of termination, as
      aforesaid, by any one Company shall be deemed to be notice by the Companies for
      purposes hereof. All Obligations shall become due and payable as of any
      termination hereunder or under Section 10
      hereof
      and, pending a final accounting, the Agent may withhold any balances in the
      Companies’ account (unless supplied with an indemnity satisfactory to the Agent,
      in its credit judgment) to cover all of the Obligations, whether absolute or
      contingent. With respect to each Letter of Credit that is or will be outstanding
      as of the Termination Date, the Companies will, on or prior to the Termination
      Date, either (a) cause such Letter of Credit to be returned to the Issuing
      Bank undrawn and marked “canceled” or (b) if the Companies are unable to do
      so, either (i) provide a “back-to-back” letter of credit to the Agent in a
      form satisfactory to the Agent (in its sole discretion), issued by a bank
      satisfactory to the Agent, in its credit judgment, in an amount equal to 110%
      of
      the then undrawn amount of such Letter of Credit, or (ii) deposit with the
      Agent cash in an amount equal to 110% of the then undrawn amount of such Letter
      of Credit, such cash to be remitted by the Agent to the Companies upon the
      expiration, cancellation or other termination of such Letter of Credit. All
      of
      the Agent’s and the Lenders’ rights, liens and security interests shall continue
      after any termination until all Obligations have been paid and satisfied in
      full.

     

    SECTION
      12.    Miscellaneous

     

    12.1 Each
      of
      the Companies hereby waives diligence, notice of intent to accelerate, notice
      of
      acceleration, demand, presentment and protest and any notices thereof as well
      as
      notice of nonpayment. No delay or omission of the Agent or the Lenders to
      exercise any right or remedy hereunder, whether before or after the happening
      of
      any Event of Default, shall impair any such right or shall operate as a waiver
      thereof or as a waiver of any such Event of Default. No single or partial
      exercise by the Agent or the Lenders of any right or remedy precludes any other
      or further exercise thereof, or precludes any other right or
      remedy.

     

    12.2 This
      Financing Agreement and the other Loan Documents executed and delivered in
      connection herewith can be changed only by a writing signed by the Companies,
      the Agent and the Required Lenders (or by Agent at the written request of
      Required Lenders), unless the consent of all Lenders is required pursuant to
      Paragraph
      14.10
      of
Section
      14
      of this
      Financing Agreement, and shall bind and benefit the Companies, the Agent and
      the
      Lenders and their respective successors and assigns.

     

    
      
        
        

      

      
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    12.3 IT
      IS THE INTENT OF THE COMPANIES, THE AGENT AND THE LENDERS TO CONFORM STRICTLY
      TO
      ALL APPLICABLE STATE AND FEDERAL USURY LAWS. THE LOAN DOCUMENTS AND ALL OTHER
      AGREEMENTS BETWEEN ANY COMPANY, THE AGENT AND THE LENDERS WHETHER NOW EXISTING
      OR HEREAFTER ARISING AND WHETHER WRITTEN OR ORAL, ARE HEREBY EXPRESSLY LIMITED
      SO THAT IN NO CONTINGENCY OR EVENT WHATSOEVER, WHETHER BY REASON OF ACCELERATION
      OF THE MATURITY HEREOF OR OTHERWISE, SHALL THE AMOUNT CONTRACTED FOR, CHARGED
      OR
      RECEIVED BY THE AGENT OR THE LENDERS FOR THE USE, FORBEARANCE, OR DETENTION
      OF
      THE MONEY LOANED HEREUNDER OR OTHERWISE, OR FOR THE PAYMENT OR PERFORMANCE
      OF
      ANY COVENANT OR OBLIGATION CONTAINED HEREIN OR IN ANY OTHER LOAN DOCUMENT
      EVIDENCING, SECURING OR PERTAINING TO THE OBLIGATIONS EVIDENCED HEREBY WHICH
      MAY
      BE LEGALLY DEEMED TO BE FOR THE USE, FORBEARANCE OR DETENTION OF MONEY, EXCEED
      THE LESSER OF THE: MAXIMUM LEGAL RATE AND THE MAXIMUM AMOUNT WHICH THE COMPANIES
      AND ANY SUCCESSORS OR ASSIGNS OF THE COMPANIES OR ANY SUCH PERSON (IF ANY)
      IS
      OBLIGATED TO PAY AND THE AGENT AND THE LENDERS ARE LEGALLY ENTITLED TO CONTRACT
      FOR, CHARGE OR COLLECT UNDER APPLICABLE STATE OR FEDERAL LAW. IF FROM ANY
      CIRCUMSTANCES WHATSOEVER FULFILLMENT OF ANY PROVISION HEREOF OR OF SUCH OTHER
      LOAN DOCUMENTS SHALL INVOLVE EXCEEDING THE MAXIMUM LEGAL RATE, THEN THE
      OBLIGATION TO BE FULFILLED SHALL BE AUTOMATICALLY REDUCED TO SUCH LIMIT, AND
      IF
      FROM ANY SUCH CIRCUMSTANCE THE AGENT AND THE LENDERS SHALL EVER RECEIVE AS
      INTEREST OR OTHERWISE AN AMOUNT IN EXCESS OF THE MAXIMUM LEGAL RATE OR THE
      MAXIMUM THAT CAN BE LEGALLY COLLECTED, THEN SUCH AMOUNT WHICH WOULD BE EXCESSIVE
      INTEREST SHALL BE APPLIED TO THE REDUCTION OF THE PRINCIPAL INDEBTEDNESS HEREOF
      AND ANY OTHER AMOUNTS DUE WITH RESPECT TO THE OBLIGATIONS EVIDENCED HEREBY
      AND
      IN THE OTHER LOAN DOCUMENTS, BUT NOT TO THE PAYMENT OF INTEREST AND IF SUCH
      AMOUNT WHICH WOULD BE EXCESS INTEREST EXCEEDS THE OBLIGATIONS AND ALL OTHER
      NON
      INTEREST INDEBTEDNESS DESCRIBED ABOVE, THEN SUCH ADDITIONAL AMOUNT SHALL BE
      REFUNDED TO THE COMPANIES. IF ANY EXCESS INTEREST IN SUCH RESPECT IS PROVIDED
      FOR IN THIS FINANCING AGREEMENT, OR SHALL BE ADJUDICATED TO BE SO PROVIDED,
      OR
      IN ANY OTHER LOAN DOCUMENT OR OTHERWISE IN CONNECTION WITH THIS TRANSACTION,
      THE
      PROVISIONS OF THIS PARAGRAPH 12.3
      OF SECTION 12
      SHALL GOVERN AND PREVAIL AND NEITHER THE COMPANIES NOR ANY SUCCESSORS OR ASSIGNS
      OF THE COMPANIES OR ANY SUCH PERSON (IF ANY) SHALL BE OBLIGATED
      TO PAY THE EXCESS AMOUNT OF SUCH INTEREST OR ANY OTHER EXCESS SUM PAID FOR
      THE
      USE, FORBEARANCE, OR DETENTION OF SUM LOANED HEREUNDER OR OTHERWISE. IN
      DETERMINING WHETHER OR NOT ALL SUMS PAID OR AGREED TO BE PAID BY THE COMPANIES
      FOR THE USE, FORBEARANCE OR DETENTION OF MONEY EXCEEDS THE MAXIMUM LEGAL RATE,
      THE COMPANIES, THE AGENT AND THE LENDERS SHALL TO THE MAXIMUM EXTENT PERMITTED
      UNDER APPLICABLE LAW, (A) TREAT ALL OBLIGATIONS AS BUT A SINGLE EXTENSION
      OF CREDIT, (B) CHARACTERIZE ANY NONPRINCIPAL PAYMENT AS AN EXPENSE, FEE OR
      PREMIUM RATHER THAN AS SUMS PAID OR AGREED TO BE PAID BY THE COMPANIES FOR
      THE
      USE, FORBEARANCE OR DETENTION OF MONEY, (C) EXCLUDE VOLUNTARY PREPAYMENTS
      AND THE EFFECT THEREOF, AND (D) AMORTIZE, PRORATE, ALLOCATE AND SPREAD IN
      EQUAL PARTS, THE TOTAL AMOUNT OF SUCH SUMS PAID OR AGREED TO BE PAID BY THE
      COMPANIES FOR THE USE, FORBEARANCE OR DETENTION OF MONEY THROUGHOUT THE ENTIRE
      ACTUAL TERM OF THE OBLIGATIONS SO THAT THE INTEREST RATE IS UNIFORM THROUGH
      THE
      ENTIRE TERM OF THE OBLIGATIONS.

     

    
      
        
        

      

      
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    THE
      COMPANIES, THE AGENT AND THE LENDERS HEREBY AGREE THAT, EXCEPT FOR SECTION
      346.004 THEREOF, THE PROVISIONS OF CHAPTER 346 OF THE TEXAS FINANCE CODE
      (VERNON’S TEXAS CODE ANNOTATED), AS AMENDED FROM TIME TO TIME, SHALL NOT APPLY
      TO THIS FINANCING AGREEMENT OR ANY OF THE OTHER LOAN
      DOCUMENTS.

     

    THE
      TERMS AND PROVISIONS OF THIS PARAGRAPH SHALL CONTROL AND SUPERSEDE EVERY OTHER
      PROVISION HEREOF, THE LOAN DOCUMENTS AND ALL OTHER AGREEMENTS BETWEEN OR AMONG
      ANY COMPANY, THE AGENT AND/OR THE LENDERS.

     

    12.4 If
      any
      provision hereof or of any other agreement made in connection herewith is held
      to be illegal or unenforceable, such provision shall be fully severable, and
      the
      remaining provisions of the applicable agreement shall remain in full force
      and
      effect and shall not be affected by such provision’s severance. Furthermore, in
      lieu of any such provision, there shall be added automatically as a part of
      the
      applicable agreement a legal and enforceable provision as similar in terms
      to
      the severed provision as may be possible.

     

    12.5 EACH
      OF THE COMPANIES, THE AGENT AND THE LENDERS HEREBY WAIVES ANY RIGHT TO A TRIAL
      BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF THE LOAN DOCUMENTS OR THE
      TRANSACTIONS CONTEMPLATED THEREUNDER. EACH OF THE COMPANIES HEREBY IRREVOCABLY
      WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO SERVICE OF PROCESS BY
      CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED. IN NO EVENT WILL THE
      AGENT OR THE LENDERS BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL OR
      CONSEQUENTIAL DAMAGES.

     

    
      
        
        

      

      
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    12.6 Except
      as
      otherwise herein provided, any notice or other communication required hereunder
      shall be in writing (provided that, any electronic communications from any
      of
      the Companies with respect to any request, transmission, document, electronic
      signature, electronic mail or facsimile transmission shall be deemed binding
      on
      the Companies for purposes of this Financing Agreement, provided further that
      any such transmission shall not relieve the Companies from any other obligation
      hereunder to communicate further in writing), and shall be deemed to have been
      validly served, given or delivered when hand delivered or sent by facsimile,
      or
      three days after deposit in the United State mails, with proper first class
      postage prepaid and addressed to the party to
      be
      notified or to such other address as any party hereto may designate for itself
      by like notice, as follows:

     

    
      	 	
              (A)

            	
              if
                to the Agent and/or the Lenders, at:

               

              
                The
                  CIT Group/Business Credit, Inc.

                Two
                  Lincoln Centre

                5420
                  LBJ Freeway, Suite 200

                Dallas,
                  Texas 75240

                Attn:
                  Regional Credit Manager

                Fax
                  No.: (972) 455-1690

              

            

      	 	 	 

      With
        a
        courtesy copy of any material notice to the Agent’s counsel at:

      	 	 	
               

              Patton
                Boggs LLP

              2001
                Ross Avenue, Suite 3000

              Dallas,
                Texas 75201

              Attn:
                Kenneth M. Vesledahl

              Fax
                No.: (214) 758-1550

            

      	 	 	 

      	 	
              (B)

            	
              if
                to the Companies, at:

            

      	 	 	 

      	 	 	
              United
                Fuel & Energy Corporation

              405
                N. Marienfeld, Suite 300

              Midland,
                Texas 79701

              Attn:
                Chief Financial Officer

              Fax
                No.: (432) 571-8099

            

      	 	 	 

    

    
      With
        a
        courtesy copy of any material notice to the Companies’ counsel
        at:

    

    
      	 	 	
               

              Akin
                Gump Strauss Hauer & Feld LLP

              300
                Convent Street, Suite 1600

              San
                Antonio, Texas 78205

              Attn:
                Will Liebmann

              Fax
                No.: (210) 224-2035

            

    

     

    provided,
      however,
      that
      the failure of the Agent to provide the Companies’ counsel with a copy of such
      notice shall not invalidate any notice given to the Companies and shall not
      give
      the Companies any rights, claims or defenses due to the failure of the Agent
      to
      provide such additional notice.

     

    12.7 THE
      VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS FINANCING AGREEMENT AND THE
      OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS, EXCEPT
      TO THE EXTENT THAT ANY OTHER LOAN DOCUMENT INCLUDES AN EXPRESS ELECTION TO
      BE
      GOVERNED BY THE LAWS OF ANOTHER JURISDICTION.

     

    
      
        
        

      

      
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    12.8
      (a) ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT AND THE OTHER LOAN
      DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS, DALLAS COUNTY,
      OR
      OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF TEXAS AND, BY EXECUTION AND
      DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO
      HEREBY IRREVOCABLY
      ACCEPTS IN RESPECT OF ITS PROPERTY, UNCONDITIONALLY, THE JURISDICTION OF THE
      AFORESAID COURTS WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING AND EACH OF
      THE
      PARTIES HERETO FURTHER IRREVOCABLY CONSENTS TO SERVICE OF PROCESS OUT OF ANY
      OF
      THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
      COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL POSTAGE PREPAID, TO IT AT ITS
      ADDRESS PROVIDED IN PARAGRAPH 12.6
      OF SECTION 12
      HEREOF, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING.
      NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER
      MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED
      AGAINST THE OTHER PARTY IN ANY OTHER JURISDICTION.

     

    (b) EACH
      OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY
      NOW
      OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR
      PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN
      THE
      COURTS REFERRED TO IN THE FIRST SENTENCE OF CLAUSE (a)
      ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM
      IN
      ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT
      HAS
      BEEN BROUGHT IN AN INCONVENIENT FORUM.

     

    12.9 Waiver
      of Consumer Rights.
      EACH COMPANY HEREBY WAIVES ITS RIGHTS, UNDER THE DECEPTIVE TRADE PRACTICES
      -
      CONSUMER PROTECTION ACT, [SECTION 17.41 ET SEQ. TEXAS BUSINESS &
COMMERCE CODE], A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS.
      AFTER
      CONSULTATION WITH AN ATTORNEY OF ITS OWN SELECTION, EACH COMPANY VOLUNTARILY
      CONSENTS TO THIS WAIVER. EACH COMPANY EXPRESSLY WARRANTS AND REPRESENTS THAT
      SUCH COMPANY (a) IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION
      RELATIVE TO THE AGENT AND THE LENDERS, AND (b) HAS BEEN REPRESENTED BY
      LEGAL COUNSEL IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS
      AGREEMENT.

     

    12.10 This
      Financing 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 Financing Agreement. Delivery
      of
      any executed counterpart of this Financing Agreement by electronic mail or
      facsimile transmission shall be equally as effective as delivery of an original
      executed counterpart of this Financing Agreement. Any party delivering an
      executed counterpart of this Financing Agreement by telefacsimile also shall
      deliver an original executed counterpart of this Financing
      Agreement but the failure to deliver an original executed counterpart shall
      not
      affect the validity, enforceability, and binding effect of this Financing
      Agreement.

     

    
      
        
        

      

      
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    12.11 No
      Oral Agreement.
      THIS WRITTEN AGREEMENT AND THE OTHER DOCUMENTS REFERENCED HEREIN OR CONTEMPLATED
      HEREBY REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
      CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
      OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
      PARTIES.

     

    12.12 Notwithstanding
      anything to the contrary contained herein, this Financing Agreement is not
      intended to and does not serve to constitute or effect a novation, repayment
      or
      substitution of the existing Obligations. Instead, it is the express intention
      of the parties hereto to reaffirm the indebtedness, liabilities and obligations
      created under the Existing Financing Agreement which are and continue to be
      secured by the Collateral. The Companies acknowledge and confirm that the liens
      granted to CIT pursuant to the Loan Documents secure all indebtedness,
      liabilities and obligations of the Companies to the Agent and the Lenders under
      the Original Financing Agreement and the Existing Financing Agreement, as
      amended and restated hereby, and that the term “Secured Obligations” as used in
      the Loan Documents (or any other terms used therein to describe or refer to
      the
      indebtedness, liabilities and obligations of the Companies to Agent and Lenders
      thereunder) includes, without limitation, the indebtedness, liabilities and
      obligations of the Companies hereunder and under the Existing Financing
      Agreement, as amended and restated hereby, as the same may be further amended,
      modified, supplemented or restated from time to time. The Loan Documents and
      all
      agreements, instruments and documents executed or delivered in connection with
      any of the foregoing shall otherwise remain unmodified and in full force and
      effect, and each be deemed to be amended to the extent necessary to give effect
      to the provisions of this Financing Agreement. In that regard, (a) all
      references in the Loan Documents to the Existing Financing Agreement shall
      be
      deemed to be references to this Financing Agreement, and (b) all
      cross-references in the Loan Documents to particular section numbers in the
      Existing Financing Agreement shall be deemed to be cross-references to the
      corresponding sections, as applicable, to this Financing Agreement. Each Company
      hereby ratifies and confirms its obligations under the Loan Documents executed
      by such Company. 

     

    12.13 Agent
      and
      each Lender acknowledge and agree that the rights of the Agent and Lenders
      are
      subject to the terms and provisions of the Sterling Intercreditor
      Agreement.

     

    12.14 This
      Financing Agreement and the financing commitments set forth herein constitute
      an
      amendment, increase, modification and restatement, but not an extinguishment
      or
      novation, of the Existing Financing Agreement and the financing commitments
      set
      forth therein. This Financing Agreement and the other Loan Documents are not
      intended as, and shall not be construed as, a release, impairment or novation
      of
      the indebtedness, liabilities and obligations of the Companies under the
      Existing Financing Agreement and the other documents contemplated thereby or
      the
      liens and security interests granted therein, all of which liens and security
      interests are hereby ratified and affirmed. With respect to matters relating
      to
      the period of this Financing Agreement prior to the date hereof, all of the
      provisions of the Existing Financing Agreement are hereby ratified and confirmed
      and shall remain in full force and effect. The Existing Financing Agreement,
      as
      modified by the provisions of this Financing Agreement, shall be construed
      as
      one agreement.

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    12.15 Subject
      to the satisfaction of the conditions precedent specified in Paragraph 2.1
      of
Section 2
      of this
      Financing Agreement, effective as of the Closing Date, Agent and Lenders hereby
      release the guaranty and any stock pledge agreement previously executed by
      Thomas E. Kelly in connection with the Existing Financing Agreement and
      such documents shall be deemed accordingly hereby terminated.

     

    12.16 Each
      Lender that is subject to the requirements of the USA Patriot Act (Title III
      of
      Pub. L. 107-56 [signed into law October 26, 2001])(the “Act”)
      hereby
      notifies Companies that pursuant to the requirements of the Act, it is required
      to obtain, verify and record information that identifies the Companies, which
      information includes the names and addresses of the Companies and other
      information that will allow such Lender to identify the Companies in accordance
      with the Act.

     

    SECTION
      13.    Agreements
      Regarding the Lenders; Participations and Assignments.

     

    13.1 The
      Agent
      shall forward to each Lender a monthly account statement with respect to such
      Lender’s Commitment. In addition, the Agent agrees (a) to provide the
      Lenders with copies of all financial statements and projections and business
      plans of the Parent and the Companies that the Agent receives from the Companies
      or their advisors from time to time, and (b) upon the request of a Lender
      from time to time, to provide such Lender with copies of all collateral reports
      that the Agent receives from the Companies, in each case without any duty to
      confirm or verify that such information is true, correct or
      complete.

     

    13.2 After
      the
      Agent’s receipt of, or charging of, any Term Loan principal payments or any
      interest and fees earned under this Financing Agreement, the Agent agrees to
      remit promptly to each Lender its respective Pro Rata Percentage
      of:

     

    (a) fees
      payable by the Companies hereunder, provided
      that the
      Lenders shall not share in the fees set forth in Paragraphs
      8.5, 8.8 and 8.9
      of
Section
      8
      and the
      last sentence of Paragraph
      8.13(a)
      of
Section
      8.13
      of this
      Financing Agreement; and

     

    (b) interest
      paid on the outstanding principal amount of Revolving Loans (other than the
      Swingline Loans), calculated based on the outstanding amount of Revolving Loans
      advanced by each of the Lenders as of each Settlement Date during the period
      for
      which interest is paid; and

     

    (c) principal
      and interest paid on the Term Loans.

     

    13.3 In
      the
      event that any Lender fails to make available to the Agent such Lender’s Pro
      Rata Percentage of any borrowing by the Companies on the Settlement Date in
      accordance with the provisions of Paragraph
      3.1
      of
Section
      3
      hereof,
      and the Companies do not repay to the Agent such Lender’s Pro Rata Percentage of
      the borrowing within three (3) Business Days of the Agent’s written demand to
      repay such borrowing, the Agent shall have the right to recover such Lender’s
      Pro Rata Percentage of the borrowing directly from such Lender, together with
      interest thereon from the date of the borrowing at the rate per annum applicable
      to such borrowing. In addition, until the Agent recovers such amount,
      (x) such Lender shall not be entitled to receive any payments under
Paragraph
      13.2
      of this
Section
      13,
      and
      (y) for purposes of voting on or consenting to other matters with respect
      to this Financing Agreement or the other Loan Documents, such Lender’s
      Commitment shall be deemed to be zero and such Lender shall not be considered
      to
      be a Lender.

     

    
      
        
        

      

      
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    13.4
      (a) With
      the
      prior written consent of the Agent (which consent will not unreasonably be
      withheld), the Lenders may sell to one or more commercial banks, commercial
      finance lenders or other financial institutions, participations in the loans
      and
      other extensions of credit made and to be made to the Companies hereunder.
      The
      Companies acknowledge that in selling such participations, the Lenders may
      grant
      to participants certain rights to consent to waivers, amendments and other
      actions with respect to this Financing Agreement, provided
      that the
      consent of any participant shall be limited solely to matters as to which all
      Lenders must consent under Paragraph
      14.10
      of
Section
      14
      hereof.
      Except for the consent rights set forth above, no participant shall have any
      rights as a Lender hereunder, and notwithstanding the sale of any participation
      by a Lender, such Lender shall remain solely responsible to the other parties
      hereto for the performance of such Lender’s obligations hereunder, and the
      Companies, the Agent and the other Lenders may continue to deal solely with
      such
      Lender with respect to all matters relating to this Financing Agreement and
      the
      transactions contemplated hereby. In addition, all amounts payable under this
      Financing Agreement to a Lender which sells a participation in accordance with
      this paragraph shall continue to be paid directly to such Lender.

     

    (b) With
      the
      prior written consent of the Agent (which consent will not unreasonably be
      withheld), the Lenders may assign all or any portion of their respective rights
      and obligations under this Financing Agreement to (i) commercial banks,
      commercial finance lenders or other financial institutions and (ii) to an
      entity, whether a corporation, partnership, trust, limited liability company
      or
      other entity that (a) is engaged in making, purchasing, holding or
      otherwise investing in bank loans and similar extensions of credit in the
      ordinary course of its business and (b) is administered, serviced or
      managed by the assigning Lender or an Affiliate of such Lender provided
      that the
      principal amount of loans assigned to any such Person shall not be less than
      $10,000,000, and the assigning Lender shall pay to the Agent an assignment
      processing and recording fee of One Thousand Dollars ($1,000.00) for the Agent’s
      own account. Each assignment of a Commitment hereunder must be made pursuant
      to
      an Assignment and Transfer Agreement. From and after the effective date of
      an
      Assignment and Transfer Agreement, (i) the assignee thereunder shall become
      a party to this Financing Agreement and, to the extent that rights and
      obligations hereunder have been assigned to such assignee pursuant to such
      assignment, shall have all rights and obligations of a Lender hereunder, and
      (ii) the assigning Lender, to the extent that rights and obligations
      hereunder have been assigned by such Lender pursuant to such assignment, shall
      relinquish its rights and be released from its obligations under this Financing
      Agreement.

     

    13.5 In
      the
      event that the Agent, the Lenders or any of them is sued or threatened with
      a
      suit, action or claim by the Companies and Parent, or any of one of them, or
      by
      a creditor, committee of creditors, trustee, receiver, liquidator, custodian,
      administrator or other similar official acting for or on behalf of the Companies
      and Parent, or any of one of them, on account of (a) any preference,
      fraudulent conveyance or other voidable transfer alleged to have occurred or
      been received as a result of the operation of this Financing Agreement or the
      transactions contemplated hereby, or (b) any lender liability theory based
      on any action taken or not taken by such person in connection with this
      Financing Agreement or the transactions contemplated hereby, any money paid
      in
      satisfaction or compromise of such suit, action, claim or demand, and any
      expenses, costs and attorneys’ fees paid or incurred in connection therewith
      (whether by the Agent, the Lenders or any of them), shall be shared
      proportionately by the Lenders according to their respective Pro Rata
      Percentages, except to the extent that such person’s own gross negligence or
      willful misconduct directly gave rise to such suit, action or claim. In
      addition, any costs, expenses, fees or disbursements incurred by agents or
      attorneys retained by the Agent to effect collection of the Obligations or
      enforcement of any rights in the Collateral, including enforcing, preserving
      or
      maintaining rights under this Financing Agreement, shall be shared among the
      Lenders according to their respective Pro Rata Percentages to the extent not
      reimbursed by the Companies or from the proceeds of Collateral. The provisions
      of this Paragraph
      13.5
      of
Section
      13
      shall
      not apply to any suits, actions, proceedings or claims that (a) are filed
      or asserted prior to the Closing Date or (b) are based on transactions,
      actions or omissions occurring prior to the Closing Date.

     

    
      
        
        

      

      
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    13.6 The
      Companies authorize each Lender, and each Lender shall have the right, after
      the
      occurrence of an Event of Default, without notice, to set off and apply against
      any and all property or assets of any Company held by, or in the possession
      of
      such Lender, any of the Obligations owed to such Lender. Promptly after the
      exercise of any right to set off, the Lender exercising such right irrevocably
      agrees to purchase for cash (and the other Lenders irrevocably agree to sell)
      participation interests in each other Lender’s outstanding Revolving Loans as
      would be necessary to cause such Lender to share the amount of the property
      set
      off with the other Lenders based on each Lender’s Pro Rata Percentage. The
      Companies agree, to the fullest extent permitted by law, that any Lender also
      may exercise its right to set off with respect to amounts in excess of such
      Lender’s Pro Rata Percentage of the Obligations then outstanding, and may
      purchase participation interests in the amounts so set off from the other
      Lenders, and upon doing so shall deliver such excess to Agent, for distribution
      to the other Lenders in settlement of the participation purchases described
      above in this Paragraph
      13.6
      of
Section
      13.

     

    13.7 For
      the
      purposes of this Paragraph
      13.7
      of
Section
      13,
      “Confidential
      Information” means
      all
      financial projections and all other information delivered to the Agent or any
      Lender by or on behalf of the Companies or Parent in connection with the
      transactions contemplated by or otherwise pursuant to this Financing Agreement
      that is proprietary in nature and that is clearly marked or labeled (or
      otherwise adequately identified) as being confidential information of the
      Companies or Parent, provided
      that
      such term does not include information that (a) was publicly known or
      otherwise known to the Agent or any of the Lenders prior to the time of such
      disclosure, (b) subsequently becomes publicly known through no
      act or
      omission by the Agent or the Lenders or any person acting on their behalf,
      (c) otherwise becomes known to the Agent or the Lenders other than through
      disclosure by the Companies or Parent or (d) constitutes financial
      statements delivered to the Agent hereunder that are otherwise publicly
      available. The Agent and the Lenders will maintain the confidentiality of such
      Confidential Information in accordance with commercially reasonable procedures
      adopted by the Agent and the Lenders in good faith to protect confidential
      information of third parties delivered to them, provided
      that the
      Agent and the Lenders may deliver or disclose Confidential Information
      to:

     

    (a) their
      respective directors, officers, employees, agents, attorneys and affiliates
      (to
      the extent such disclosure reasonably relates to the administration of the
      Revolving Line of Credit);

     

    
      
        
        

      

      
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    (b) their
      respective financial advisors and other professional advisors who are advised
      to
      hold confidential the Confidential Information substantially in accordance
      with
      the terms of this Paragraph
      13.7
      of
Section
      13;

     

    (c) any
      other
      Lender;

     

    (d) a
      commercial
      bank, commercial finance lender or other financial institution
      to which
      the Agent or a Lender sells or offers to sell a portion of its rights and
      obligations under this Financing Agreement or any participation therein,
provided
      that so
      long as no Event of Default shall have occurred and is continuing, such entity
      agrees in writing prior to their receipt of such Confidential Information to
      be
      bound by the provisions of this Paragraph
      13.7
      of
Section
      13;
      or

     

    (e) any
      other
      person or entity (including bank auditors and other regulatory officials) to
      which such delivery or disclosure may be necessary or appropriate (i) to
      comply with any applicable law, rule, regulation or order, (ii) in response
      to any subpoena or other legal process, (iii) in connection with any
      litigation to which the Agent or a Lender is a party or (iv) if an Event of
      Default shall have occurred and is continuing, to the extent the Agent may
      reasonably determine such delivery and disclosure to be necessary or appropriate
      in the enforcement or for the protection of the rights and remedies under this
      Financing Agreement.

     

    Each
      Lender becoming a Lender subsequent to the initial execution and delivery of
      this Financing Agreement,
      by
      its execution and delivery of an Assignment and Transfer Agreement, will be
      deemed to have agreed to be bound by, and to be entitled to the benefits of,
      this Paragraph
      13.7
      of
Section
      13.

     

    SECTION
      14.    Agency

     

    14.1 Each
      Lender hereby irrevocably designates and appoints CIT to act as the Agent for
      such Lender under this Financing Agreement and the other Loan Documents, and
      irrevocably authorizes CIT, as Agent for such Lender, to take such action on
      its
      behalf under the provisions of this Financing Agreement and the other Loan
      Documents, and to exercise such powers and perform such duties as are expressly
      delegated to the Agent by the terms of this Financing Agreement and the other
      Loan Documents, together with such other powers as are reasonably incidental
      thereto. In performing its functions under this Financing Agreement, the Agent
      is acting solely as an agent of the Lenders, and the Agent does not assume,
      and
      shall not be deemed to have assumed, an agency or other fiduciary relationship
      with the Companies. The Agent shall not have any (a) duty, responsibility,
      obligation or liability to any Lender, except for those duties,
      responsibilities, obligations and liabilities expressly set forth in this
      Financing Agreement, or (b) fiduciary relationship with any Lender, and no
      implied covenants, functions, responsibilities, duties, obligations or
      liabilities shall be read into this Financing Agreement or the other Loan
      Documents, or otherwise exist against the Agent. No Lender that also is
      designated as a “Documentation Agent” or a “Syndication Agent” hereunder shall
      have any right, power, duty, responsibility, obligation or liability under
      this
      Financing Agreement, except for the duties, responsibilities, obligations and
      liabilities of a Lender hereunder.

     

    
      
        
        

      

      
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    14.2 The
      Agent
      may execute any of its duties under this Financing Agreement and all ancillary
      documents by or through agents or attorneys, and shall be entitled to the advice
      of counsel concerning all matters pertaining to such duties.

     

    14.3 Neither
      the Agent nor any of its officers, directors, employees, agents, or attorneys
      shall be liable to any Lender for any action lawfully taken or not taken by
      the
      Agent or such person under or in connection with this Financing Agreement and
      the other Loan Documents (except for the Agent’s or such person’s gross
      negligence or willful misconduct). Without limiting the generality of the
      foregoing, the Agent shall not be liable to the Lenders for (i) any
      recital, statement, representation or warranty made by the Companies or Parent
      or any officer thereof contained in (x) this Financing Agreement,
      (y) any other Loan Document or (z) any certificate, report, audit,
      statement or other document referred to or provided for in this Financing
      Agreement or received by the Agent under or in connection with this Financing
      Agreement, (ii) the value, validity, effectiveness, enforceability or
      sufficiency of this Financing Agreement, the other Loan Documents or the Agent’s
      security interest in the Collateral, (iii) any failure of the Companies or
      Parent to perform their respective obligations under this Financing Agreement
      and the other Loan Documents, (iv) any
      loss
      or depreciation in the value of, delay in collecting the Proceeds of, or failure
      to realize on, any Collateral, (v) the Agent’s delay in the collection of
      the Obligations or enforcing the Agent’s rights against the Companies
      or Parent,
      or the
      granting of indulgences or extensions to the Companies
      or Parent
      or any
      account debtor of the Companies, or (vi) for any mistake, omission or error
      in judgment in passing upon or accepting any Collateral.
      In
      addition, the Agent shall have no duty or responsibility to ascertain or to
      inquire as to the observance or performance of any of the terms, conditions,
      covenants or other agreements of the Companies or Parent contained
      in this Financing Agreement or the other Loan Documents, or to inspect, verify,
      examine or audit the assets, books or records of the Companies or Parent at
      any
      time.

     

    14.4 The
      Agent
      shall be entitled to rely, and shall be fully protected in relying, upon legal
      counsel, independent public accountants and experts selected by Agent, and
      shall
      not be liable to the Lenders for any action taken or not taken in good faith
      based upon the advice of such counsel, accountants or experts. In addition,
      the
      Agent shall be entitled to rely, and shall be fully protected in relying, upon
      any note, writing, resolution, notice, consent, certificate, affidavit, letter,
      telecopy, telex or teletype message, statement, order or other document believed
      by the Agent in good faith to be genuine and correct, and to have been signed,
      sent or made by the proper person or persons. The Agent shall be fully justified
      in taking or refusing to take any action under this Financing Agreement and
      the
      other Loan Documents unless the Agent (a) receives the advice or consent of
      the Lenders or the Required Lenders, as the case may be, in a manner that the
      Agent deems appropriate, or (b) is indemnified by the Lenders to the
      Agent’s satisfaction against any and all liability, cost and expense which may
      be incurred by the Agent by reason of taking or refusing to take any such
      action. The Agent shall in all cases be fully protected in acting, or in
      refraining from acting, under this Financing Agreement and the other Loan
      Documents in accordance with a request of all Lenders or the Required Lenders,
      as the case may be, and such request and any action taken or failure to act
      pursuant thereto shall be binding upon all Lenders.

     

    
      
        
        

      

      
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    14.5 The
      Agent
      shall not be deemed to have knowledge or notice of the occurrence of any Default
      or Event of Default hereunder unless the Agent has received notice from the
      Companies or a Lender describing such Default or Event of Default with
      specificity. In the event that the Agent receives such a notice, the Agent
      shall
      promptly give notice thereof to all Lenders. The Agent shall take such action
      with respect to such Default or Event of Default as shall be reasonably directed
      by the Lenders or Required Lenders, as the case may be, provided
      that
      (a) if appropriate, the Agent may require indemnification from the Lenders
      under Paragraph 14.4
      of this
Section
      14
      prior to
      taking such action, (b) under no circumstances shall the Agent have an
      obligation to take any action that the Agent believes in good faith would
      violate any law or any provision of this Financing Agreement or the other Loan
      Documents, and (c) unless and until the Agent shall have received direction
      from the Lenders or Required Lenders, as the case may be, the Agent may (but
      shall not be obligated to) take such action or refrain from taking action with
      respect to such Default or Event of Default as the Agent shall deem advisable
      and in the best interests of the Lenders.

     

    14.6 Each
      Lender expressly acknowledges that neither the Agent, nor any of its officers,
      directors, employees or agents, has made any representation or warranty to
      such
      Lender regarding the transactions contemplated by this Financing Agreement
      or
      the financial condition of the Companies or Parent, and such Lender agrees
      that
      no action taken by the Agent hereafter, including any review of the business
      or
      financial affairs of the Companies or Parent, shall be deemed to constitute
      a
      representation or warranty by the Agent to any Lender. Each Lender also
      acknowledges that such Lender has, independently and without reliance upon
      the
      Agent or any other Lender and based on such documents and information as such
      Lender has deemed appropriate, made its own credit analysis, appraisal of and
      investigation into the business, operations, property, financial condition
      and
      creditworthiness of the Companies or Parent, and made its own decision to enter
      into this Financing Agreement. Each Lender agrees, independently and without
      reliance upon the Agent or any other Lender and based on such documents and
      information as such Lender shall deem appropriate at the time, (a) to
      continue to make its own credit analyses and appraisals in deciding whether
      to
      take or not take action under this Financing Agreement and (b) to make such
      investigations as such Lender deems necessary to inform itself as to the
      business, operations, property, financial condition and creditworthiness of
      the
      Companies and Parent. 

     

    14.7 THE
      LENDERS AGREE TO INDEMNIFY THE AGENT (TO THE EXTENT NOT REIMBURSED BY THE
      COMPANIES AND WITHOUT LIMITING THE OBLIGATION OF THE COMPANIES TO DO SO), FROM
      AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES,
      ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND
      WHATSOEVER WHICH MAY AT ANY TIME BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST
      THE AGENT IN ANY WAY RELATING TO OR ARISING OUT OF (A) THIS FINANCING
      AGREEMENT OR ANY OTHER LOAN DOCUMENT, (B) THE TRANSACTIONS CONTEMPLATED
      HEREBY OR (C) ANY ACTION TAKEN OR NOT TAKEN BY THE AGENT UNDER OR IN
      CONNECTION WITH ANY OF THE FOREGOING, PROVIDED
      THAT NO LENDER SHALL BE LIABLE FOR THE PAYMENT OF ANY PORTION OF SUCH
      LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
      COSTS, EXPENSES OR DISBURSEMENTS RESULTING SOLELY FROM THE AGENT’S GROSS
      NEGLIGENCE OR WILLFUL MISCONDUCT.

     

    
      
        
        

      

      
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    14.8 The
      Agent
      and any Lender may make loans to and generally engage in any kind of business
      with the Companies, as though the Agent or such Lender were not the Agent or
      a
      Lender hereunder. With respect to loans made by the Agent under this Financing
      Agreement as a Lender, the Agent shall have the same rights and powers, duties
      and liabilities under this Financing Agreement and the other Loan Documents
      as
      any other Lender, and may exercise the same as though it was not the Agent,
      and
      the term “Lender” and “Lenders” shall include the Agent in its individual
      capacity as such.

     

    14.9 The
      Agent
      may resign as the Agent upon 30 days notice to the Lenders, and such resignation
      shall be effective on the earlier of (a) the appointment of a successor
      Agent by the Lenders or (b) the date on which such 30-day period expires.
      If the Agent provides the Lenders with notice of its intention to resign as
      Agent, the Lenders agree to appoint a successor to the Agent as promptly as
      possible thereafter, whereupon such successor shall succeed to the rights,
      powers and duties of the Agent, and the term “Agent” shall mean such successor
      effective upon its appointment. Upon the effective date of an Agent’s
      resignation, such Agent’s rights, powers and duties as Agent hereunder
      immediately shall terminate, without any other or further act or deed on the
      part of such former Agent or any of the parties to this Financing Agreement.
      After an Agent’s resignation hereunder, the provisions of this Section
      14
      shall
      continue to inure to such Agent’s benefit as to any actions taken or not taken
      by such Agent while acting as the Agent.

     

    14.10 Notwithstanding
      anything contained in this Financing Agreement to the contrary, without the
      prior written consent of all Lenders, the Agent will not agree to: 

     

    (a) amend
      or
      waive the Companies’ compliance with any term or provision of this Financing
      Agreement, if the effect of such amendment or waiver would be to
      (i) increase the Revolving Line of Credit, the Acquisition Term Loan Line
      of Credit or the Line of Credit, (ii) reduce the principal of, or rate of
      interest on, the Revolving Loans, the Initial Term Loan or the Acquisition
      Term
      Loans, (iii) reduce or waive the payment of any fee in which all Lenders
      share hereunder or (iv) extend the maturity date of any of the Obligations
      or the date fixed for payment of any installment thereof; 

     

    (b) alter
      or
      amend (i) this Section
      14.10
      or
      (ii) the definition of “Pro
      Rata Percentage”
or
      “Required
      Lenders”;

     

    (c) amend
      the
      definition of “Borrowing Base”, “Eligible Accounts Receivable”, “Eligible
      Card-Lock Inventory”, “Eligible Equipment Based Amount”, or “Eligible
      Inventory”, if the effect thereof would be to increase
      Availability;

     

    (d) except
      as
      otherwise expressly permitted or required hereunder, (i) during any fiscal
      year of the Companies release Collateral having an aggregate value (as
      determined by the Agent in its reasonable business judgment) of more than five
      percent (5.00%) of the Line of Credit, or (ii) Guarantor of its liabilities
      under its Guaranty; or

     

    
      
        
        

      

      
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    (e) knowingly
      make any Revolving Loan to the Companies if after giving effect thereto the
      principal amount of all outstanding Revolving Loans plus
      the
      undrawn amount of all outstanding Letters of Credit would exceed the lesser
      of
      (i) the Revolving Line of Credit or (ii) one hundred ten percent
      (110%) of the Borrowing Base of the Companies; provided
      that in
      no event shall the
      Agent
      continue to knowingly make Overadvances under this Paragraph
      14.10(e)
      of
Section
      14
      for a
      period in excess of ninety (90) consecutive days without the consent of all
      Lenders, and provided further
      that
      after the occurrence of an Event of Default, the Agent in its sole discretion
      shall have the right to make Overadvances in excess of the limitation set forth
      in clause (ii) above (but within the Revolving Line of Credit) in order to
      preserve, protect and realize upon the Collateral; or

     

    (f) waive
      any
      Event of Default arising under any provision of this Financing Agreement that
      would require the approval of all Lenders if such provision were
      amended.

     

    In
      all
      other respects the Agent is authorized to take or to refrain from taking any
      action which the Agent, in the exercise of its reasonable business judgment,
      deems to be advisable and in the best interest of the Lenders, unless this
      Financing Agreement specifically requires the Companies or the Agent to obtain
      the consent of, or act at the direction of, the Required Lenders. Without
      limiting the generality of the foregoing sentence,
      and
      notwithstanding any other provision of this Financing Agreement to the contrary,
      the Agent shall have the right in its sole discretion to (i) determine
      whether the requirements for eligibility set forth in the definitions of
“Eligible
      Accounts Receivable”,
      “Eligible
      Card-Lock Inventory”,
      “Eligible
      Inventory”,
      “Eligible
      Equipment”,
      “Eligible
      Life Insurance Policy,”
and
      “Eligible
      Cash Collateral”
are
      satisfied, (ii) establish, adjust and release the amount of reserves
      provided for in the definitions of “Availability
      Reserve”,
      “Eligible
      Accounts Receivable”
and
      “Eligible
      Inventory”,
      (iii) make Overadvances in accordance with Paragraph
      14.10(e)
      of this
Section
      14,
      (iv) release
      any Collateral having a value (as determined by the Agent in its reasonable
      business judgment) of up to two percent (2.00%) of the Line of Credit in each
      fiscal year of the Companies
      and
      (v) amend any provision of this Financing Agreement or the other Loan
      Documents in order to cure any error, ambiguity, defect or inconsistency set
      forth herein or therein. In the event the Agent terminates this Financing
      Agreement pursuant to the terms hereof, the Agent agrees to cease making
      additional loans or advances upon the effective date of termination, except
      for
      loans or advances which the Agent in its sole discretion determines are
      reasonably required to preserve, protect or realize upon the
      Collateral.

     

    14.11 If
      a
      Lender’s consent to a waiver, amendment or other course of action is required
      under the terms of this Financing Agreement and such Lender does not respond
      to
      any request by the Agent for such consent within ten (10) Business Days after
      the date of such request, such failure to respond shall be deemed a consent
      to
      the requested course of action. In addition, in the event that any Lender
      declines to give its consent to any request by the Agent for consent to a
      waiver, amendment or other course of action requiring the consent of such
      Lender, each Lender agrees that that any other Lender (or any combination of
      Lenders) shall have the right (but not the obligation) to purchase such Lender’s
      Pro Rata Percentage of the Commitments for the full amount thereof as of the
      date of such purchase, plus accrued interest to the date of such purchase.
      No
      other fee to which such Lender may be entitled hereunder (including, without
      limitation, any Termination Fee, Prepayment Premium or any LIBOR breakage costs)
      shall be payable with respect to such purchase, notwithstanding the date of
      such
      purchase. 

     

    
      
        
        

      

      
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    14.12 The
      obligations of the Lenders set forth in Paragraphs
      13.3,
      13.5,
      13.6
      of
Section 13,
      and
Paragraphs
      14.4
      and
14.7
      of this
Section
      14
      shall
      survive the termination of this Financing Agreement.

     

    SECTION
      15.    Joint
      and Several Liability of Companies

     

    15.1 All
      loans
      made to the Companies shall be deemed jointly funded to, and received by, the
      Companies. Each Company jointly and severally agrees to pay, and shall be
      jointly and severally liable for payment and performance of, all Obligations.
      Each Company acknowledges and agrees that the joint and several liability of
      the
      Companies is provided as an inducement to Agent and Lenders to provide loans
      and
      other financial accommodations to the Companies, and that each such loan or
      other financial accommodation shall be deemed to have been done or extended
      by
      Agent and Lenders in consideration of, and reliance upon, the joint and several
      liability of the Companies. The joint and several liability of each Company
      hereunder is absolute, unconditional and continuing, regardless of the validity
      or enforceability of any of the Obligations, or the fact that a security
      interest or lien in any Collateral may not be enforceable or may be subject
      to
      the equities or defenses or prior claims of others, or may be invalid or
      defective in any way and for any reason. Each Company hereby waives, to the
      full
      extent permitted by applicable laws, (i) all notices to which such Company
      may be entitled as co-obligor with respect to the Obligations, including,
      without limitation, notice of (x) acceptance of this Financing Agreement,
      (y) the making of loans or other financial accommodations under this
      Financing Agreement, or the creation or existence of the Obligations, and
      (z) presentment, demand, protest, notice of protest, and notice of
      non-payment; and (ii) all defenses based on (w) any modification (or
      series of modifications) of this Financing Agreement or the other Loan Documents
      that may create a substituted contract, or that may fundamentally alter the
      risks imposed on such Company hereunder, (x) the release of any other
      Company from its duties this Financing Agreement or the other Loan Documents,
      or
      the extension of the time of performance of any other Company’s duties hereunder
      or thereunder, (y) the taking, releasing, impairment or abandonment of any
      Collateral, or the settlement, release or compromise of the Obligations or
      any
      other Company’s liabilities with respect to all or any portion of the
      Obligations, or (z) any other act (or failure to act) that fundamentally
      alters the risks imposed on such Company by virtue of its joint and several
      liability hereunder. It is the intent of each Company by this paragraph to
      waive
      any and all suretyship defenses available to such Company with respect to the
      Obligations, whether or not specifically numerated above.

     

    15.2 Each
      Company hereby agrees that until the full and final payment and satisfaction
      of
      the Obligations and the termination of this Financing Agreement, such Company
      will not exercise any subrogation, contribution or other right or remedy against
      the other Company or security for any of the Obligations arising by reason
      of
      such Company’s performance or satisfaction of its joint and several liability
      hereunder. In addition, each Company agrees that (i) such Company’s right
      to receive any payment of amounts due with respect to such subrogation,
      contribution or other rights is subordinated to the full and final payment
      and
      satisfaction of the Obligations, and (ii) such Company agrees not to
      demand, sue for or otherwise attempt to collect any such payment until the
      full
      and final payment and satisfaction of the Obligations and the termination of
      this Financing Agreement.

     

    
      
        
        

      

      
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    15.3 Notwithstanding
      any provisions of this Financing Agreement to the contrary, it is the intent
      of
      the parties hereto that the joint and several nature of the obligations of
      the
      Companies, and the security interests granted by the Companies to secure the
      Obligations, not constitute a fraudulent conveyance under Section 548 of Chapter
      11 of Title II of the United States Code (11 U.S.C. § 101, et seq.), as
      amended, or a fraudulent conveyance or fraudulent transfer under the applicable
      provisions of any fraudulent conveyance, fraudulent transfer or similar law
      of
      any state, nation or other governmental unit, as in effect from time to tome.
      Accordingly, Agent, Lenders and the Companies agree that if the Obligations
      of
      any Company hereunder, or the security interests granted by such Company
      securing the Obligations would, but for the application of this sentence,
      constitute a fraudulent conveyance or fraudulent transfer under applicable
      law,
      the Obligations of such Company hereunder, as well as the security interests
      serving such Obligations, shall be valid and enforceable only to the maximum
      extent that would not cause such obligations, liabilities or security interests
      to constitute a fraudulent conveyance or fraudulent transfer under applicable
      law.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Second Amended and Restated
      Financing Agreement to be effective, executed, accepted and delivered at Dallas,
      Texas, by their proper and duly authorized officers as of the date set forth
      above.

     

    
      	 	 	 
	 	
              UNITED
                FUEL & ENERGY CORPORATION

            
	 
 	 
 	 
 
	
            	
              By:

            	
            
	 	 	
              

            
	 	
              Title: 
                

            	 
	 	 	
              
 

    

     

    
      	
            	 	 
	 	
              THREE
                D OIL CO. OF KILGORE, INC.

            
	 
 	 
 	 
 
	
            	
              By:

            	
            
	 	 	
              

            
	 	
              Title: 
                

            	 
	 	 	
              
 

    

    

    
      	
            	 	 
	 	
              THE
                CIT GROUP/BUSINESS CREDIT, INC.,

              
                as
                  the Agent, the Swingline Lender and a Lender

              

            
	 
 	 
 	 
 
	
            	
              By:

            	
            
	 	 	
              

            
	 	
              Title: 
                

            	Vice President
	 	 	
              Amount
                of Commitment: $30,000,000

            

    

     

    
      	
            	 	 
	 	SUNTRUST BANK, as
              Documentation Agent and a
              Lender
	 
 	 
 	 
 
	
            	
              By:

            	
            
	 	 	
              

            
	 	
              Title: 
                

            	Vice President
	 	 	 
	 	 	
              Amount
                of Commitment: $20,000,000

               

              Address:

               

              303
                Peachtree Street - 2nd
                Floor

              GA
                - ATL 1981

              Atlanta,
                Georgia 30308

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	 	 
	 	
              PNC
                BANK NATIONAL ASSOCIATION,
                as a Lender

            
	 
 	 
 	 
 
	
            	
              By:

            	
            
	 	 	
              

            
	 	
              Title: 
                

            	 
	 	 	
              
 
	 	 	
              Amount
                of Commitment: $20,000,000

               

              Address:

               

              2100
                Ross Avenue

              Suite
                1850

              Dallas,
                Texas 75201

            

    

     

    
      	
            	 	 
	 	
              WACHOVIA
                BANK, N.A.,
                as a Lender

            
	 
 	 
 	 
 
	
            	
              By:

            	
            
	 	 	
              

            
	 	
              Title: 
                

            	 
	 	 	
              
 
	 	 	
              Amount
                of Commitment: $20,000,000

               

              Address:

               

              5001
                LBJ Freeway, Suite 1050

              Dallas,
                TX 75244

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    Form
      of
      Assignment and Transfer Agreement

     

    ASSIGNMENT
      AND TRANSFER AGREEMENT

     

    Reference
      is made to the Second Amended and Restated Financing Agreement dated as of
      March
      ___, 2007 (as amended, restated supplemented or otherwise modified and in effect
      from time to time, the “Financing
      Agreement”)
      among
      United Fuel & Energy Corporation, a Texas corporation (“United”)
      and
      Three D Oil Co. of Kilgore, Inc. a Texas corporation (“Three
      D”,
      and
      together with United, individually, a “Company”
and
      collectively the “Companies”),
      the
      financial institutions from time to time party thereto, as lenders
      (collectively, the “Lenders”,
      and
      individually, each a “Lender”),
      and
      The CIT Group/Business Credit, Inc, a New York corporation, as agent for the
      Lenders (in such capacity, the “Agent”).
      Capitalized terms used in this Assignment and Transfer Agreement (this
“Agreement”)
      and
      not otherwise defined shall have the meanings given to such terms in the
      Financing Agreement. This Agreement, between the Assignor (as defined and set
      forth on Schedule
      1,
      which
      is made a part of this Agreement) and the Assignee (as defined and set forth
      on
Schedule
      1)
      is
      effective as of Effective Date (as set forth on Schedule
      1).

     

    1. The
      Assignor hereby irrevocably sells and assigns to the Assignee, without recourse
      to the Assignor, and the Assignee hereby irrevocably purchases and assumes
      from
      the Assignor, without recourse to the Assignor, as of the Effective Date, an
      undivided interest (the “Assigned
      Interest”)
      in and
      to all of the Assignor’s rights and obligations under the Financing Agreement
      respecting those, and only those, portions of the financing facilities contained
      in the Financing Agreement as are set forth on Schedule
      1
      (collectively, the “Assigned
      Facilities”),
      in an
      amount for each of the Assigned Facilities as set forth on Schedule
      1.

     

    2. The
      Assignor: (i) makes no representation or warranty and assumes no
      responsibility with respect to any statements, warranties or representations
      made in or in connection with the Financing Agreement or any other instrument,
      document or agreement executed or delivered in connection therewith
      (collectively the “Loan
      Documents”),
      or
      the execution, legality, validity, enforceability, genuineness, sufficiency
      or
      value of the Financing Agreement, any Collateral thereunder or any of the other
      Loan Documents, other than a representation and warranty that the Assignor
      is
      the legal and beneficial owner of the Assigned Interest and that the Assigned
      Interest is free and clear of any adverse claim; and (ii) makes no
      representation or warranty and assumes no responsibility with respect to
      (x) the financial condition of the Companies or any Guarantor, or
      (y) the performance or observance by the Companies or any Guarantor of any
      of its respective obligations under the Financing Agreement or any of the Loan
      Documents.

     

    3. The
      Assignee (i) represents and warrants that it is legally authorized to enter
      into this Agreement, (ii) confirms that it has received a copy of the
      Financing Agreement as amended through the Effective Date, together with the
      copies of the most recent financial statements of the Companies, and such other
      documents and information as the Assignee has deemed appropriate to make its
      own
      credit analysis, (iii) agrees that the Assignee will, independently and
      without reliance upon the Agent, the Assignor or any other Lender and based
      on
      such documents and information as the Assignee shall deem appropriate at the
      time, continue to make its own credit decisions in taking or not taking action
      under the Financing Agreement, (iv) appoints and authorizes the Agent to
      take such action as agent on the Assignee’s behalf and to exercise such powers
      under the Financing Agreement as are delegated to the Agent by the terms
      thereof, together with such powers as are reasonably incidental thereto,
      (v) agrees that the Assignee will be bound by the provisions of the
      Financing Agreement and will perform in accordance with its terms all the
      obligations which by the terms of the Financing Agreement are required to be
      performed by it as Lender, and (vi) if the Assignee is organized under the
      laws of a jurisdiction outside the United States, attaches the forms prescribed
      by the Internal Revenue Service of the United States certifying as to the
      Assignee’s exemption from United States withholding taxes with respect to all
      payments to be made to the Assignee under the Financing Agreement or such other
      documents as are necessary to indicate that all such payments are subject to
      such tax at a rate reduced by an applicable tax treaty.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Following
      the execution of this Assignment and Transfer Agreement, such agreement will
      be
      delivered to the Agent for acceptance by the Agent, effective as of the
      Effective Date.

     

    5. Upon
      such
      acceptance, from and after the Effective Date, the Agent shall make all payments
      in respect of the Assigned Interest (including payments of principal, interest,
      fees and other amounts) to the Assignee, whether such amounts have accrued
      prior
      to the Effective Date or accrue subsequent to the Effective Date. The Assignor
      and the Assignee shall make all other appropriate adjustments in payments for
      periods prior to the Effective Date made by the Agent or with respect to the
      making of this assignment directly between themselves.

     

    6. From
      and
      after the Effective Date, (i) the Assignee shall be a party to the
      Financing Agreement and, to the extent provided in this Agreement, have the
      rights and obligations of a Lender thereunder, and (ii) the Assignor shall,
      to the extent provided in this Agreement, relinquish its rights and be released
      from its obligations under the Financing Agreement.

     

    7. THIS
      ASSIGNMENT AND TRANSFER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
      ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO
      CONFLICT OF LAWS PRINCIPLES.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      its respective duly authorized officers on Schedule 1
      hereto.

    
       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

    

    Schedule
      1 to Assignment and Transfer Agreement

     

    Name
      of
      Assignor: __________________________

     

    Name
      of
      Assignee: __________________________

     

    Effective
      Date of Assignment:  ________,
      200__

     

    

      
        	
                Assigned
                  Facilities

              	 	
                Percentage
                  of Facilities Assigned

              	 	
                Dollar
                  Amount Assigned

              
	 	 	 	 	 
	
                Revolving
                  Line of Credit

              	 	
                _____%

              	 	
                $________

              
	
                Initial
                  Term Loan

              	 	
                _____%

              	 	
                $________

              
	
                Acquisition
                  Term Loan Line of Credit

              	 	
                _____%

              	 	
                $________

              

      

    

     

    

      
        	
                ASSIGNOR:

              	 	
                ASSIGNEE:

              
	 	 	 
	
                _____________________________

              	 	
                _____________________________

              
	 	 	 
	
                By:
                  ___________________________

              	 	
                By:
                  ___________________________

              
	
                Its:
                  ___________________________

              	 	
                Its:
                  ___________________________

              

      

    

    

     

    Accepted
      by the Agent:

     

    THE
      CIT
      GROUP/BUSINESS CREDIT,

    INC.,
      as
      Agent as aforesaid

     

    By:
      ___________________________

    Its:
      ___________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      1—Existing
      Liens

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      7(1)—Company
      Information

     

    Exact
      Name of each Company in its State of Organization:

     

    State
      of Organization:

     

    Federal
      Tax I.D. No.:

     

    Chief
      Executive Office(s):

     

    Tradenames:

     

    Prior
      Names:

     

    Charter
      No.:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      7(15)(e)—Permitted
      Indebtedness; Other Lending Agreements

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      7(15)(g)—Real
      Property Owned and Leased/Collateral Locations

     

     

    
      	Location of Owned Real
              Property	 
	 	 
	Location of Leased Real
              Property	Owner

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      7(15)(h)—Litigation

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      7(15)(l)—Environmental
      Matters

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      7(15)(q)—Subsidiaries

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      7(15)(r)—Intellectual
      Property

     

    Owned

     

    Licenses

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]